June 5, 1996
(Government Services and Lands)

The following statement was issued today by Ernest McLean, Minister of Government Services and Lands. It was read in the House of Assembly on Mr. McLean's behalf by Art Reid, Minister of Municipal and Provincial Affairs:

For the information of Members of the House of Assembly, and the news media, I am today tabling additional information in an attempt to further explain the new Crown Lands Market Value Pricing Policy. I think the documents which I am tabling will serve to clarify any misunderstanding with reference to the new policy.

This information outlines all of the various options available under the new policy . It will be our intention to publish this information in the form of newspaper ads so that everybody concerned clearly understands the policy and all of the options available for existing commercial, residential and cottage owners. Prior to tabling this information, however, there are a number of points which I feel I should make with reference to the policy.

• This is a good policy for leaseholders and, it is a good policy for,br> the owners of Crown Lands -- the people of Newfoundland and
  Labrador.
• Leaseholders will be able to purchase land at a fraction of the
  market value and, in so doing, they will acquire ownership of an
  asset as opposed to being the holder of a land lease.
• Current leaseholders will be given the opportunity to acquire
  property under the old fee structure or to convert to the new fee
  structure - the leaseholders can decide which option is most
  advantageous to him or her.
• The lease purchase option ensures the land is developed and serves
  as an interest free loan which allows the leaseholder five years to
  pay for the property.
• The new policy means that the cost of obtaining Crown Land in most
  rural communities will decrease.
• Revenues received through lease rentals only covered about 50 per
  cent of the cost of administering the leasing arrangements. What
  this means is that leaseholders, for a long period of time, have
  had the benefit of extremely low annual leasing rates. Basically,
  it ensures that the people of the province receive a fair and
  reasonable return for the land resources of the province.
• The new policy means that the province will no longer have a
  competitive advantage over private land developers
• The new system ensures a consistent policy framework throughout the
  province.
• It reduces red tape and makes it easier for the public to deal with
  government and it will have a minimal impact on the majority of
  leaseholders.