New Democrats call for stimulus funding exemption for flooded Saskatchewan municipalities

OTTAWA – As municipalities in Saskatchewan struggle to address serious flooding, they risk losing access to the federal government’s infrastructure stimulus fund and should be granted an exemption, say New Democrats.

“Saskatchewan municipalities have had a very difficult summer and many will not be able to complete projects by the March 2011 deadline,” said New Democrat Leader Jack Layton. “The practical and fair thing to do is to grant a special exemption to Saskatchewan so that they can complete these projects and not lose out on the government funding.”

Heavy rains in Saskatchewan have caused serious flooding resulting in closed highways, evacuations, and a stop to many construction projects during what is normally the peak construction season.

A report from the Parliamentary Budget Officer released Monday confirmed serious problems with the federal government’s stimulus program. Layton said this is a chance to ensure some fairness in this specific situation and said other changes to the program may also be needed.

“The stimulus program has been uneven, suspect, and completely without vision from the start,” said Layton. “Now we have a very clear case where the rules need to be adjusted and it’s time for the government to listen. It’s crucial that the stimulus funding be distributed effectively and some flexibility from the government is needed to ensure that.”

The Government of Saskatchewan and the provincial NDP Opposition have both called on the federal government to grant the province an extension.