In what has been described as winning a battle but not the war, the federal Conservative government has extended a program where gasoline taxes are pumped into city infrastructure.

Doug Graham, the president of the Association of Yukon Communities (AYC), said in an interview this morning he's pleased the Harper government's new budget will continue a commitment to address the nation's $60-billion infrastructure deficit. That's the estimated cost of replacing old and aging roads, sewers and bridges through its gas tax initiative.

'This means a lot more money for the territory,' he said.

Graham said the extension means the gas tax deal, which was slated to expire in 2010, is extended another four years. That will mean another $25 million for the territory, $15 million of which is earmarked for incorporated communities such as Whitehorse and Dawson City.

'Whitehorse stands to get about $7 million a year,' he said.

The current gas tax program will see $37.5 million flow into the territory between 2006 and 2010 to be used by municipalities for infrastructure projects that they identify themselves.

Under the terms of the agreement, signed by the territorial and federal governments, money is to be allocated in separate sums between 2005/06 and 2009/10 once a community has completed a plan, referred to as the Integrated Community Sustainability Plan (ICSP).

Gas tax money is being held in trust until each community can complete their plans. Once ICSPs are completed, city and town councils in the territory can access their portion of the money to start construction on their respective projects.

According to AYC figures, Carmacks will receive a total of $548,077; Dawson will get $1,918,269; Faro is set to receive $548,077; Haines Junction will get $1,096,154; Mayo is to receive $548,077; Teslin's portion equals $548,077; Watson Lake is to be awarded $1,918,269 and Whitehorse's portion totals $18,375,000.

Jim Prentice, the federal minister of Indian and Northern Affairs Canada, told the Star Wednesday that the continued gas tax money is only part of new infrastructure money coming into the territory.

'There's $32 million in infrastructure money,' he said.

Prentice said infrastructure money is part of the $609 million the Yukon will be receiving in 2007/08.

In a news release Monday, Gord Steeves, the acting president of the Federation of Canadian Municipalities, said he felt the money Canadian towns and cities will receive under the gas tax program is a good start.

'The move to extend the federal gas-tax transfer for an additional four years is a welcome and important step toward erasing Canada's municipal infrastructure deficit,' he said.

'More funding is welcome.

'The bad news is that the budget fails to deliver a long-term strategy to meet the challenges in our cities and communities, particularly to erase the $60-billion municipal infrastructure deficit, fix the municipal fiscal imbalance and provide Canadians with the transit options they need, or help new immigrants settle.'