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Montreal, Quebec agree on lowering transfer payments

Watch: Quebec and municipalities agree on transfer payments

MONTREAL — The City of Montreal will receive $75 million less from the provincial government next year.

Mayor Denis Coderre and Premier Philippe Couillard made the announcement Wednesday at the National Assembly in Quebec City.

“For years Quebecers have been waiting for a government to make tough decisions,” explained Couillard.

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“This year, the time has arrived.”

READ MORE: Thousands rally in anti-austerity demonstration

Municipalities across Quebec will get a total of $300 million less in 2015 as part of the government’s plan to balance the books.

As Quebec’s largest city, Montreal will shoulder a quarter of the $300 million loss.

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“We are a large metropolis, so we must do our part,” Coderre told reporters Wednesday.

With a population of 1.6 million and a budget of $5 billion a year, Coderre said his administration can deal with the loss in a creative way that won’t affect services.

“Will we be raising taxes? No. Will we cutting services? No.”

The $75 million cut is supposed to last for only one year, 2015.

 

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