OTTAWA - Statement by Jean Perrault, President of the Federation of Canadian Municipalities (FCM) and Mayor of Sherbrooke, Que., on the announcement by the Canadian Mortgage and Housing Corporation (CMHC) of the Municipal Infrastructure Lending Program:

"Today's launch of the Municipal Infrastructure Lending Program in Kitchener, Ont., will open the door for more municipalities to put cost-shared federal stimulus programs to work in the near-term, creating jobs and meeting local municipal infrastructure needs that service residential households - improved roads, sidewalks, and water supply and sewage treatment systems. That's good news for the national economy, and for the cities and communities where Canadians live and work.

By committing up to $2 billion in low-interest loans for municipal infrastructure projects, the federal government, through CMHC, has provided a financing tool that will help municipalities access $12 billion in federal funding for cost-shared stimulus projects over the next two years.

The program helps to address an urgent issue facing many municipal governments: the challenge of meeting requirements to share one-third of the cost of stimulus projects at a point in the fiscal year when municipal budgets have already been approved. Municipalities are on track to invest a record-setting $15 billion in local infrastructure in 2009. While accessing credit is not generally a problem for municipalities, finding additional dollars after budgets have been set can be a significant obstacle.This program will help municipalities overcome this obstacle in order to access cost-shared stimulus programs.

Today's announcement demonstrates the positive results governments can achieve when they work together. With the support of Minister Diane Finley, FCM worked with officials at the Canada Mortgage and Housing Corporation to provide front-line input and technical expertise in the development of an innovative program featuring the lowest interest rate available, a streamlined application process, and quick review and approvals. The result is a program that will help inject stimulus into the economy and provide municipalities with a more affordable debt-financing tool - all without contributing one dollar to future federal deficits.

The lending program will provide municipalities with simple-to-access credit at the same low interest rate available to the federal government. The only additional charge will be a small fee levied to recover the cost of the program.

The program will feature interest rates that are significantly lower than the best rates typically available to municipalities, saving local property taxpayers about 10 per cent on total financing costs over the life of the loan - a notable savings for municipal councils, where every tax dollar counts. CMHC has also committed to turning loan approvals around quickly, reducing significant delays in our short construction season. This accelerated access to financing will help municipalities get federal stimulus dollars invested in front-line construction projects quickly enough to fight the recession.

We look forward to building on this collaborative program. We support the Government of Canada's statement that stimulus investments must contribute to making the country stronger than before the recession. As we continue our national fight against the recession, governments must also begin to look beyond the immediate crisis and together plan for a post-recession world that includes ongoing partnership and a commitment to provide cities and communities with new fiscal tools to build a stronger, more prosperous future for Canada."