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March 20, 1997
(Municipal and Provincial Affairs)

$25 Million Approved for Municipal Capital Works

Municipal and Provincial Affairs Minister Art Reid says he hopes to be in a position by early April to announce the approval of projects under the Municipal Capital Works Program.

The minister made the statement in response to the announcement in the Budget Speech by the Minister of Finance and President of Treasury Board Paul Dicks who said that $25 million will be allocated by government for capital works for the 1997/98 year.

The approval of projects in early April will allow tenders to be called and construction to proceed as soon as the frost is out of the ground.

The minister said the $25 million is in addition to the Canada/Newfoundland Infrastructure Works Program which includes expenditures of $30.9 million in 1997/98.

Projects under the Capital Works Program including water and/or sewer; paving and road reconstruction; and solid waste management will be cost-shared by the province and municipalities. Water and sewer and waste management projects will be cost-shared on a 50%/50% provincial/municipal basis and paving and road reconstruction will be on a 25%/75% provincial/municipal basis.

Mr. Reid said: "The infusion of this Capital Works funding will generate many employment opportunities in the construction industry as well as a large number of indirect or spin-off jobs in the trades and supply industry."

The minister said the $25 million is expected to create 8,700 person weeks of employment in municipalities throughout Newfoundland and Labrador.

"It is a most significant expenditure in view of the difficult financial constraints placed upon government at this particular time," said Mr. Reid. "Another meaningful factor is that this work is being spread throughout the entire province."

He added: "It will serve to stimulate and accelerate economic activity and contribute, in a significant way, to government's plan to revitalize communities throughout Newfoundland and Labrador, particularly in the rural areas of the province."

When added to the Infrastructure Works Program, it means that a total of $55.9 million will be spend in 1997/98 to provide essential infrastructure projects for communities in the province.

Mr. Reid said the Capital Works and Infrastructure Programs are excellent examples of how the provincial government is giving priority to its spending so that it can better serve Newfoundlanders and Labradorians by making efficient use of their tax dollars.

The municipal infrastructure projects are providing residents with cleaner drinking water, better roads and highways, improved recreational facilities and they also serve to enhance environmental conditions in the province.

The minister said the funding will be distributed fairly and equitably throughout the province and that the expenditures will provide new assets that will be of tangible value to communities into the future.

"I am sure this capital works and infrastructure funding will be well received by the many municipalities which will be participating in the two programs," Mr. Reid said.

Contact: Gary Callahan, Director of Communications, (709) 729- 3142.