Oliver Langdon, MHA for Fortune Bay - Cape La Hune district and opposition Municipal and Provincial Affairs critic, is alarmed with the decision of government to reduce municipal operating grants (MOGs) by $5 million over the next three years.

 AThe government is acting irresponsibly by cutting grants to the areas of this province which have experienced some degree of economic prosperity over the past number of years,@ said Langdon.  AThe use of MOGs and the Municipal Debt Relief program has assisted municipalities manage their long-term debt and day-to-day operations.  To cut MOGs is a step backwards.

 ABy targeting larger centres, government is hurting the economic drivers of our provincial economy.  These municipalities have already completed long-term budget planning and, now, the government is clawing back their available funds.@

 The Liberal MHA is questioning the lack of discussion in budget documents of the GST funds being directed from Ottawa to municipalities.  He feels that municipalities will take a further hit from the government if they claw-back those revenues that were earmarked by Ottawa for municipalities.

 AI ask the minister and the premier to commit to allowing the transfer of these funds to municipalities without provincial clawback.  The GST funding will not compensate municipalities for the loss of MOGs, but the loss of GST funds from Ottawa would be a further hit that could not be sustained.@