The federal government says it will provide $7 million to Peel Region to help create a permanent welcome centre to process refugees and asylum seekers.

Minister of Diversity, Inclusion and Persons with Disabilities Kamal Khera made the announcement on behalf of Immigration Minister Marc Miller Friday.

"As winter approaches, and with a global migration crisis, it is even more important to ensure people are kept safe," Khera said. "This new reception centre will save lives and alleviate pressure on the Region of Peel. There is no simple answer, but we are confident that with full engagement from all levels of government, we can implement real long-term, sustainable and compassionate measures to ensure that the most vulnerable newcomers to Canada have a roof over their heads.”

The facility will serve as both a reception centre and a temporary shelter, and will be operated in partnership with community organizations with the right skillset to help those who arrive.

GTA municipalities have been calling for the federal government to do more to care for refugees and asylum seekers as overflowing shelter systems around the GTA struggle to keep up with demand for spots. A welcome centre near Pearson International Airport to help match them with appropriate services and shelter space was one of the asks from a meeting of the Big City Mayors.

For many asylum seekers, the next stop after asking for asylum at the airport is a shelter intake centre in Toronto or other GTA municipalities. Earlier this year scores of refugees ended up sleeping on the streets outside a downtown shelter intake centre in Toronto after the city said it would start referring asylum seekers to federal programs because it couldn't keep up with the demand.

Last week, the death of an asylum-seeker camped out outside of a former Peel Region shelterprompted Brampton Mayor Patrick Brown to say that it was "beyond comprehension" that the situation had been allowed to get so bad.

Speaking at the announcement Friday, he praised the federal government for fast-tracking its response in the wake of last week's events.

"As I said to (Minister) Miller yesterday, he has saved lives," Brown said. "The Government of Canada has saved lives and prevented potentially hundreds of fatalities. I can't tell you how heartbreaking it was to see this news last week. It was crushing."

He added that having been in government before at the federal level, he appreciates how much effort is involved to make things move quickly.  

"It shouldn't have happened," Khera said when asked about the person who died last week. She said the government is "committed" to making sure this sort of thing does not continue to happen.

"Let me be clear, the incidents of this past week are absolutely unacceptable," she said. "But with temperatures dropping every day, we know we must do better if we want to prevent tragedies like this from happening again."

With the weather getting colder, advocates have said the situation is becoming more urgent.

Toronto Mayor Olivia Chow also welcomed the news of the funding for the reception centre Friday, but said much more is needed.

“This new reception centre has the potential to serve as the focal point of a coordinated regional response that ensures refugees have a safe place and a good start to their lives in Canada," Chow said in a statement.

"Next, we have to work together to address the needs of the thousands of refugees who have already arrived in shelters across the region, including the 5,100 the City of Toronto is currently supporting. We have an urgent homelessness crisis, Toronto’s shelters are full as we accommodate nearly 11,000 people each night."

Chow had a back-and-forth on Twitter earlier this week with Miller over the issue.

Through the province, the city has asked the federal government to open up the armouries used by the Ministry Of Defence at Fort York and Moss Park in order to help shelter people. However, Minister Of Defence Bill Blair said Thursday that the space is needed for training and armouries, and that its use as shelter space would not be appropriate.

Khera reiterated Friday that $5 million remains on the table to help the city utilize the Better Living Centre for the unhoused population.

However Chow said Thursday that the city was already in the process of opening the facility as a warming centre with 200 spots and said it did little to help Increase shelter space in the city.