Thank you for that kind introduction. Service Nova Scotia and Municipal Relations Acting Minister Angus MacIsaac, HRM Mayor Peter Kelly, UNSM president Councillor Russell Walker, UNSM Chair Deputy Mayor Bob Wrye, Federation of Canadian Municipalities president Gord Steeves, ladies and gentlemen.

It is a great pleasure for me to be here in our province’s capital city at the opening of the 102nd annual conference of the Union of Nova Scotia Municipalities.

I would first like to acknowledge Russell Walker’s leadership as the president of the UNSM. You and your team have worked hard on behalf of this organization and all communities throughout Nova Scotia. For this, I know I speak on behalf of everyone here today when I say thank you.

And Bob Wyre, I commend you and your team for coordinating such a great conference.

The one thing people always notice when they come to Nova Scotia–be it visitors, ex-pats who come back from time to time, or current residents–is the uniqueness of our province. We have an extraordinary geographical location, one that is the envy of many around the world. We have a culture that is rich in history and tradition. And we have a landscape that is breath-taking even to those who have seen its beauty hundreds of times.

What’s important to all of us in this room is how municipalities and the province can work together to continue to benefit and improve our unique province. The answer–is to always listen to one another.

That’s why today is an exciting day for the government of Nova Scotia and all municipalities across the province. It’s an exciting day because my government has, in fact, committed to endorsing the Memorandum of Understanding between the provincial government and UNSM.

The MOU is a reaffirmation and enhancement of a MOU that was entered into between the two levels of government in 2005. And, I would like to stress, that compromise on both sides made this possible.

The revised MOU has a life span of seven years– from 2008 to 2015, and outlines the financial and accountability commitments for each level of government over that time period.

The key elements of the MOU include:

• a cap of municipal contributions to corrections at the 2007-08 levels, with phase-out commencing in 2010-11;
• a two-year phase out of municipal contributions to housing will begin in 2010-11; and,
• a cap on current Education Funding at the 2007-08 levels–to be indexed each year by the CPI of Nova Scotia.

The cumulative price tag to the province is $85-million dollars for corrections and housing, combined over the life span of the agreement. In addition, the UNSM and province will work together to establish a municipal auditor general or similar office.

As municipalities evolve and deal with more complex issues, it becomes more important than ever to provide as much transparency as possible. The position of municipal auditor general will help provide more of that transparency, and the measure will continue to ensure municipal accountability of public funds.

The Agreement also calls for both the UNSM and municipalities to acknowledge the unique division of service responsibilities between the province and municipalities. As you know, Nova Scotia municipalities are not required to contribute to social programs, which is this case in some other Canadian jurisdictions.

We must also recognize that, although collected in a variety of ways and from a variety of sources, most provinces partially fund education through a property tax levy. In fact, Nova Scotia currently has one of the lowest rates in Canada, and now, with the revised MOU, this rate will be capped.

Overall, this MOU is good news for municipalities... and good news for the province. In addition to providing additional funding to municipalities, it resolves a number of policy issues that have been raised over the years.

And the added funding will help municipalities to provide key services such as improved infrastructure, recreation and fire services. It also represents the first time that municipalities will have the predictable funding required to plan for the long term.

This measure provides you with the predictability and contained costs in education contributions that you told us were important. And, I can assure you that the amount you contribute will be well below the annual cost increase to the province for education.

We believe that this is an affordable, realistic funding solution. I also believe that this MOU, along with other provincial actions in recent years, will make you the envy of your municipal colleagues across the country.

Even so, there is no question that this is a big financial investment in the future of our communities and our families. We will continue to focus on affordable ways to meet government’s priorities.

But in doing so, we can’t afford to lose sight of the big picture ... and our joint responsibilities to the people of this province. We must always live within our means.

Reaching this agreement doesn’t mean that it will be an easy road ahead. We know that there will always be times that we will need to give and take–on both sides. And we must always be mindful of the reality of the times we live in; that there is a finite amount of public dollars and that there is only one taxpayer that funds the three levels of government.

As a province, we will continue to review and monitor municipal matters and work with you to identify what is needed from the larger policy framework perspective. This speaks to the value and mutual respect we hold for each other... for our relationship.

And I’m confident that this agreement means you have the best financial arrangement between municipalities and the provincial government in the country.

To cap off this great announcement, it is my pleasure to present this year’s Municipal InNOVAward, which recognizes excellence in the use of innovative approaches in the delivery of municipal programs and services.

This year’s winner is a long-term innovative partnership developed between a host and 16 other municipalities. It allows for the delivery of a fundamental municipality service–solid waste management–in a cost-effective manner.

I am referring to, the Municipality of the District of Guysborough’s establishment of the Multi-Region, Sustainable Waste Management Partnership Solution–the winner of the 2007 Municipal InNOVAward.

This project exemplifies what is essential for our province–sustainability and partnerships. I am pleased to present the 2007 Municipal InNOVAward to Warden Lloyd P. Hines.