Hope for HCR If Ottawa and Ontario Sign Funding Agreement – New Democrats

SAULT STE. MARIE – Transport Minister John Baird's letter to Ontario explaining why Ottawa is waiting on Ontario to flow major funding for Huron Central Railway still has the “silver lining of a real solution for HCR”, Sault MP Tony Martin said today.

“There is good news news here, especially when Minister Baird says his government will fund the HCR if Ontario moves quickly to sign the Provincial Territorial Base fund agreement and back the short line rail application.”

“We now know why there has been no funding and we know how to get it Let's get going as the railway and industry officials have said there is only a four to six week window to make the decision and order materials or the railway will cease operations this year.”

Martin with fellow New Democrat MPs Carol Hughes (Algoma-Manitoulin-Kapuskasting) and Glen Thibeault (Sudbury) s attended last Thursday's rail committee meeting where it was reported Ontario would fund the HCR and that Ottawa was the final hold out. Martin immediately contacted Baird's office to lobby federal support.

Late Friday, Baird's office sent Martin a copy of the Minister”s letter written the same day to Ontario where he noted the province had not supported HCR funding under the Infrastructure Stimulus Fund and that that fund was closed to further commitments. Baird recommends the two governments “move swiftly” to sign the agreement which would make $175 million available to Ontario.

“I am happy that the Minister has written Ontario to clarify matters and to identify a solution,” Martin said. “I have been in touch with our rail committee chair Joe Fratesi with this news and we will get the Minister's letter circulated to the working group.”

“I join the minister in encouraging both governments to move quickly to finalize the Canada-Ontario Base Fund agreement,” Hughes said. “The sooner the two governments get down to serious discussions the sooner the negotiations would be completed and funds could be allocated to Huron Central.”

“Huron Central is such a vital transportation link for industries and businesses in the Sault, Sudbury and throughout the north,” Thibeault said. “New Democrats will keep working with community leaders to make this happen.”

Minister Baird's letter to Ontario is below

Honourable Brad Duguid
Minister of Energy and Infrastructure
Hearst Block, 4th floor
900 Bay Street
Toronto, ON M7A2E1

Dear Minister Duguid:
I understand that Sault Ste Marie MPP David Orazietti and Algoma Manitoulin MPP Mike Brown have recently announced that the Province of Ontario is willing to commit funding for infrastructure on the Huron Central Rail line, should the federal government be willing to provide its share.

A joint call for proposals from Canada and Ontario was made pursuant to the Infrastructure Stimulus Fund (lSF), for which the Huron Central Rail line applied. I would note that in reviewing the applications submitted for short-line rail projects, Ontario did not indicate an interest or priority in funding such projects, including the Huron Central Rail 's call for funding under that program. As such, I am puzzled by this recent press release by Mr. Oraziettie, which is speaking on behalf of the province.

The ISF is no longer able to make new commitments. However, should Ontario now chose to support this project, I am happy to inform you that the Government of Canada is indeed prepared to support this initiative, provided that Ontario submits it for funding under the Provincial-Territorial Base Fund .

As you know, we have been negotiating a Canada-Ontario ProvincialTerritorial Base Fund agreement since 2008, most recently with the view to fully accelerating Ontario's entire allocation over fiscal years 2009-10 and 2010-11 as part of Canada's Economic Action Plan. We provided a draft of the agreement to you in August 2008 and did not receive initial comments until one year later in August 2009. Ontario remains the only jurisdiction in Canada without an agreement in place to access their allocation of $175 million.

I recommend that we move swiftly to sign the Canada-Ontario Provincial-Territorial Base Fund agreement, which could be the source of funds for infrastructure on the Huron Central Rail line initiative, and for other infrastructure priorities across Ontario. We understand that the Huron Central Rail initiative would proceed between now and 2015, and therefore this could have an impact on the extent to which Ontario's Provincial-Territorial Base Fund can be accelerated this year and next.

I would also note, in closing, that the Government of Canada has fully matched Ontario's contribution to work on this process, with each level of government already having provided $1 .5 million to date to this initiative.

Sincerely,

John Baird, P.C., M.P.