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March 27, 1997
(Municipal and Provincial Affairs)


Top-up to Canada/Newfoundland Infrastructure Works Program

The Canadian and Newfoundland and Labrador governments signed an agreement today allocating an additional $31 million to the Canada - Newfoundland Infrastructure Works Program in 1997-98.

Premier Brian Tobin; Newfoundland's Minister of Municipal and Provincial Affairs Art Reid; Marcel Masse, President of the Treasury Board and Minister responsible for Infrastructure; and Fred Mifflin, Minister of Fisheries and Oceans and Newfoundland's regional Minister in the federal Cabinet participated in the signing ceremony.

"Newfoundlanders and Labradorians told us they needed jobs and we listened. In Newfoundland and Labrador, the Infrastructure Works Program has already created about 2,400 jobs, and the top-up will create another 480 in the province," said Minister Masse.

"This three-way cooperation on Infrastructure Works adds another $10.36 million of federal money, an amount to be matched by both the province and local partners. This means that in the 1997 construction season, our partnership will allow for $31 million in new investments in Newfoundland and Labrador infrastructure," said Premier Tobin.

"The beauty of this program is that it helps create new jobs while helping to ensure municipalities are ready for the challenges of tomorrow," said Minister Mifflin.

Mr. Reid said the Government of Newfoundland and Labrador is delighted to participate with municipalities and the federal government in this extended infrastructure program.

"Among other things, this program will increase the tax base of our municipalities," he said. "It will serve to enhance our environment, deliver better transportation and communications lines and create new and improved municipal assets for communities throughout the province."

Newfoundland and Labrador received $49.15 million in federal funds from the current federal-provincial Infrastructure Works Program. When combined with the contributions of the province and the municipalities, the Infrastructure Program, including the funding announced today, could result in about $178 million in expenditures in the construction and construction-related sectors since 1994.

The success of the first program encouraged the federal government to contribute an additional $425 million to the program for 1997 as part of an overall government strategy of using infrastructure improvement to enhance the competitiveness of Canada's communities and stimulate job creation.

Under the extended Canada Infrastructure Works Program, the municipalities retain the ability to invest in the projects that meet their priorities and the criteria for the selection of projects will remain essentially the same.

It is anticipated that the first round of Infrastructure projects - under the extended agreement - will be announced in early spring.

The agreement is jointly administered by the Atlantic Canada Opportunities Agency (ACOA) on behalf of the Government of Canada and by the Department of Municipal and Provincial Affairs for the Government of Newfoundland and Labrador.

Contact:

  • Daniel Lavoie
    Canada Infrastructure Works Program
    (613) 952-3342

    Jean Lapierre
    Office of the President of the Treasury Board
    (613) 957-2666

    Randy Devine
    Public Affairs and Analysis
    Atlantic Canada Opportunities Agency
    (709) 772-2935

    Gary Callahan
    Director of Communications
    Municipal and Provincial Affairs
    (709) 729-3142


______________________________
BACKGROUNDER
Canada/Newfoundland Infrastructure Works Program


INTRODUCTION:

  • The Canada Infrastructure Works Program is a key element of the federal government's Jobs Strategy. The Jobs Strategy looks at investing in immediate and long-term job creation and growth in such areas as youth, trade, technology, small business and infrastructure.

    In 1993, the $6 billion Infrastructure Works Program was established as a partnership between the three levels of government in Canada. The program's objective was to accelerate economic recovery by creating short- and long-term jobs in local communities and to renew and enhance the physical infrastructure in local communities.

    The Province of Newfoundland signed an agreement with the Government of Canada to implement the $147 million Canada- Newfoundland Infrastructure Works Program on February 9, 1994.

BUILDING ON THE SUCCESS OF THE INFRASTRUCTURE PROGRAM:

  • In August 1996, Dr. Richard Soberman, a professor at the University of Toronto released an evaluation report. That evaluation considered the first infrastructure program a success in job creation and found that the needs of local municipalities for infrastructure rehabilitation were met.

    The national program (12,000 projects) created 100,000 jobs of which about 2,380 were in Newfoundland (276 projects).

    Since last summer, federal, provincial and municipal governments have shown an interest in continuing the Infrastructure Works Program. In October 1996 a forum of federal and provincial finance ministers met to set out the groundwork for a possible top-up to the current program. This amendment to the Canada/Newfoundland Infrastructure Works Agreement provides an additional $10.36 million from three levels of government for new projects for the 1997 construction season.

    The program objectives remain the same:

    1. To provide funds to allow for the necessary renewal of physical infrastructure in local communities.

    2. To generate valuable short- and long-term employment. In addition, the program is designed to:

    • focus on the repair and rehabilitation of traditional infrastructure in communities.
    • create a three-way partnership in which provincial and local partners are each expected to match the federal share of $10.36 million thereby generating a total new investment potential of $31 million for the 1997 construction season.

    The general administration of the program is still governed by the existing agreement signed on February 9, 1994 and subsequently amended on June 21, 1996. Projects proposed under the top-up amendment must be received by the Canada- Newfoundland Infrastructure Works Program office in time to be approved not later than October 31, 1997.

1997 03 27 3:30 p.m.

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