Federanon of Fédération
Canadian canadienne des
AUNCIpaliues municipalités

December

FOR IMMEDIATE RELEASE

ON THE WRONG WAVELENGTH

"Time is running out for ministerial action if this
government is not to become the first in Canadian history to
tax health and safety to pay its debts." FCM President Ray
O'Neill was referring to the new Radio licence fees, commonly
known in municipal circles as "the Department of
Communication health and safety tax".

The occasion of Councillor o'Neill's comments was a
meeting of FCM's National Board of Directors in Markham,
Ontario. The governing body of the national organizations
representing over 70% of Canada's municipal voters again
registered its strong objections to a dramatic hike in fees
paid by municipalities to licence police, ambulances and fire

protection services.

Municipalities have been given until the erld of March to
pay the new fees for the 1990~91 fiscal year. "That gives
the federal government just three months :o reverse one of
the most immoral taxes ever levied by a government in this
country," Councillor O'Neill said. "If Ottawa will, now act
in good faith, we shall not only rid ourselves of a totally
unjustified levy, but restore the level. of mutual trust
built between federal and municipal government."

Municipal leaders object to the principle of a punitive
levy on health and safety; to the budgetary effect of
increases ranging as high as 10,000%; and to the unilateral
ending of the consultative process on a matter of importance
to communities across Canada. .

The federal government not only failed to respond in a
timely way to an FCM request for a ministerial meeting almost
a year ago: a meeting of officials was told the government
had made its decision and was not interested in hearing
municipal views. "FCM's relations with most federal
Departments and Ministers are excellent. We have never been
so shabbily treated as we were by the Minister of
Communications," Councillor O'Neill said.

FCM has appealed to members of Psrliament to recognize
the significance of the new tax. It accuses the Minister of
not understanding the "difference between the delivery of
pizza and of emergency services necessary to save lives". A