"The federal government is trying to put in place a program that will help municipalities around this province," said Mr. Langdon. "The provincial government is interfering with this process by clawing back this federal money from some cities and towns. I can certainly understand why some Mayors such as Claude Elliot of Gander, who could lose $250,000 in extra municipal funding, are upset given the unfair way they are being treated."

A letter from the Department of Municipal and Provincial Affairs was recently sent to municipalities stating that any capital works funding would be reduced by the amount equal to the GST rebate from Ottawa.

"It is unthinkable that the provincial government would claw back the GST rebate money being provided by the federal government. If municipalities are not allowed to keep this money, how can the Premier convince the Prime Minister to move forward with a gas tax rebate program that is also designed to put money directly in the coffers of municipal governments?

"The premier cannot approach this issue with a double standard. On one hand he is saying that this province is not receiving our fair share of funding from the federal government. On the other hand he is treating municipalities in exactly the same manner that Ottawa is treating Newfoundland and Labrador. Is this how he expects to get results?

"The cuts already made by this government have devastated the economies of many of the smaller communities around this province. These communities need an infusion of funds to address current funding problems. Government must then focus and develop a long-term plan that will see the economy of these municipalities improve."