(Quebec) Municipal associations officially approved the new fiscal pact with the Quebec government on Wednesday, welcoming financial gains for housing and adaptation to climate change.
The Quebec Federation of Municipalities (FQM) welcomes the “gains” made in the new fiscal pact with the Legault government.
According to her, her requests were fulfilled: “keep the achievements of the last fiscal pact, allow the MRCs to have financial means to fight and adapt to climate change and, above all, protect by law the payment to municipalities of the value of the growth of one point in the Quebec sales tax (QST)”.
The FQM has “even exceeded [ses] initial objectives by obtaining a new formula for sharing the growth of the QST to be negotiated,” underlined its president, Jacques Demers. The prize pool of several hundred million per year would no longer be distributed solely on the basis of the size of the population.
The FQM board of directors unanimously adopted a resolution supporting the conclusion of the “Declaration of Reciprocity” with the government.
For its part, the Union of Municipalities of Quebec voted 93% in favor of the pact. “The solidarity of the municipal world has notably allowed us to broaden the tax base and obtain additional amounts to support the priority issues that we have identified together”, such as housing and adaptation to climate change, argued its president Martin Damphousse.
After obtaining the official support of the two associations, the government confirmed the conclusion of the agreement by press release mid-afternoon on Wednesday.
The details of the new fiscal pact, which The Press presented on Wednesday, will be officially revealed later, during the signing of the agreement. Large cities want the Legault government to present a satisfactory solution for financing transport companies before this official ceremony.
The government limited itself to presenting the priorities agreed with the municipalities:
- Carry out actions for climate adaptation and transition;
- Encourage and support the development of a sufficient supply of quality housing;
- Helping vulnerable people;
- Support sustainable land use planning, for the benefit of the population and all communities;
- Ensure the maintenance and plan the renewal of essential municipal infrastructure, particularly water.
“We are laying the foundations for a new form of collaboration to better serve the population and face the challenges of the future. Rather than negotiating financial transfers, the government and municipalities have set common objectives and will now work to achieve them,” said Prime Minister François Legault in a press release.