With millions of federal dollars now within reach for local municipalities, Prime Minister Paul Martin called for an end to partisan wrangling over the federal budget.
"It's time to put politics aside and pass the budget," Mr. Martin said in the Toronto suburb of Richmond Hill, where he unveiled details of how $1.8-billion of federal gas tax money will be divided among Ontario municipalities over the next five years. "There is too much at stake for us to tolerate partisan games any more."
The measure, along with an extra $310-million in gas tax revenues for Ontario negotiated by NDP Leader Jack Layton and the Prime Minister after the budget was tabled, are tied to two bills in Parliament.
The main budget bill passed on Thursday, however, the Layton-Martin amendment has not passed.
At yesterday's announcement, Liberal MPs, provincial politicians and local mayors applauded the prospect of the first-ever flow of federal gas tax dollars for transit and other environmentally sustainable local projects such as water, sewers and roads.
Toronto Mayor David Miller said his city will reap $605.3-million over the next five years from the gas-tax measures, mostly for transit improvements, and called on opposition parties to pass the federal budget.
"It's critical that the Conservatives stop holding up the budget," he said.
The gas-tax agreement also set a precedent for direct negotiations between Ottawa and Ontario municipalities.
The federal funds will flow directly to the City of Toronto while the Association of Municipalities of Ontario will be the conduit for all other cities and communities.
The provincial government, which chose to stay on the sidelines of the deal, promised not to claw back any of the federal money.
York West MP Judy Sgro, who was credited with laying the groundwork of the gas tax revenue deal, said that the government wants to see more federal-municipal partnerships.
"If we can get co-operation from the other provinces, this is where we want to go," she said.
In the February budget, the Liberal government promised $5-billion over five years -- 1.5 cents a litre rising to five cents a litre -- for municipalities across the country.
Similar gas tax deals have been signed in British Columbia, Alberta and Yukon.
Yesterday, Mr. Miller and others praised Mr. Martin for acknowledging the right of local governments to have a "seat at the table" in negotiations with the federal government.