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February 20, 1997
(Minister Responsible for Labrador)

New Air Foodlift Subsidy Program announced

Ernest McLean, Minister Responsible for Labrador, and Julie Bettney, Minister of Works Services and Transportation, today announced a new Air Foodlift Subsidy Program for Coastal Labrador and Great Harbour Deep on the Great Northern Peninsula.

This subsidy will be paid to retail stores in recognition of the higher costs for perishable foods that have to be flown into coastal communities in winter. By subsidizing the retail price of these goods, consumers will see a corresponding reduction in the price charged by retailers.

Mr. McLean said: "This foodlift subsidy will benefit all residents of the north and south coasts of Labrador. The people of Labrador said this was a priority for them and government has listened and acted. I'm delighted to be able to announce this program today with Ms. Bettney and I am grateful for the advice and assistance we have received on this matter from Labrador MHAs and the Combined Councils."

"I'm particularly pleased with the tremendous initiative shown by the Southeastern Aurora Development Corporation. The corporation came forward with a realistic and comprehensive proposal to implement this subsidy and it will administer the program. Government believes strongly that local people know their communities and regions best and we will work with the corporation to make sure this program works."

At the end of March the project will be jointly assessed by government and the development corporation. Ms Bettney said: "Government views this as a new initiative and if changes are required after the first two months or so, then changes will be implemented immediately. I am pleased that we are able to provide this much needed service to the people of Coastal Labrador and Great Harbour Deep."

The new subsidy will run from now until the resumption of the shipping season. When it is in full operation, the program will be capped at $300,000 annually and the annual budget will include the cost to administer the program.

Contact: Rick Callahan, Director of Communications, (709) 729-4860.