November 14, 1997
(Municipal and Provincial Affairs)

The report of an independent Task Force on municipal regionalization was publicly released today by Municipal and Provincial Affairs Minister Art Reid in St. John's.

The Task Force set out in the spring of 1997 to conduct public consultations on regionalization and its final report was presented in October.

Task force members were Dr. Peter Boswell, a professor of political science at Memorial University; President Sam Synard of the Federation of Municipalities; and Freida Faour, a former Corner Brook city councillor.

Mr. Reid said he and his senior officials have now completed a review of the document and note that the task force supports the concept for a model of regional cooperation to serve the province's municipalities into the 21st century.

"The report proposes a basic framework that could, over time, result in the establishment of a province-wide system of regionalization - one that would enable municipalities and unincorporated areas to better coordinate their activities in areas of mutual benefit on a regional basis," said Mr. Reid.

The minister said the public release of the document is deemed to be an essential component of the regionalization process. "It will provide municipalities and all other stakeholders with the opportunity to familiarize themselves with the findings and recommendations and to provide their perspectives on the regionalization initiative."

He said the public response to the Task Force report will be the basis on which government will determine a course of future action on the issue of regionalization.

Mr. Reid said regionalization, if properly implemented, can provide municipalities with new tools to do the job - tools that will allow greater flexibility, innovation and efficiency with respect to the provision of municipal services.

"In the department's view, regional cooperation can be a means of more effectively accommodating the diverse service requirements of urban and rural municipalities and unincorporated areas," said Mr. Reid. "In addition, regionalization can promote municipal autonomy and accountability, ensure all citizens pay a fair share toward municipal services and allow for a more coordinated plan for economic and social development."

The independent task force was empowered to draft its own terms of reference. Its report included a review of the history of regional structures elsewhere in Canada and it reported extensively on two options contained in the department's consultation document including regional councils and regional service authorities.

"The task force is comprised of individuals possessing much expertise in the field of local government and I believe their report will prove to be a valuable document that will assist the province in its efforts to strengthen local government," said Mr. Reid.

Mr. Reid said reaction to the task force report will have to be in the form of written submissions to the department and that stakeholders will be given a period of six weeks in which to prepare their responses.

He said copies of the document will be mailed to all municipalities and local service districts and to all individuals and groups who made presentations to the task force. All other interested parties can obtain copies of the document by contacting regional offices located at St. John's, Gander, Corner Brook and Happy Valley-Goose Bay.

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

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BACKGROUNDER
REGIONALIZATION

In the Fall of 1996, the Department of Municipal and Provincial Affairs released a consultation document entitled: "Reforming Municipal Government in Newfoundland and Labrador: The Time for Regionalization."

The consultation document identified two options dealing with the subject of municipal restructuring, namely a Regional Council or a Regional Service Authority and also indicated that there may indeed by other options for regionalization.

The Regional Council option emanated from the 1974 Whalen Royal Commission on Municipal Government and is authorized under the Municipalities Act. This concept provides for the establishment of a mix of appointed/elected representatives to coordinate regional servicing initiatives among municipalities; to extend municipal servicing and taxation to neighbouring unincorporated; and to explore the need for further regional servicing. This model was used when establishing Fogo Island as a region and provided for the formation of a Regional Council.

The consultation document suggested that the Regional Service Authority could be established to formalize ad hoc arrangements which currently exist or arrangements which have the potential to exist between municipalities to provide or coordinate a service or services to two or more municipalities within a specific grouping.

Following the release of the consultation document in October of 1996, the Minister, together with his senior officials, held a series of meetings with incorporated municipalities both on the island and in Labrador. The purpose of these meetings was to explain the regionalization concept; to have an exchange of views and to solicit support from municipal leaders for the proposals to reform municipal government.

In the Spring of 1997, Government appointed a three-person independent Task Force to hold public consultations and to gauge public response to the Department's consultation document. It was comprised of Sam Synard, President of the Newfoundland and Labrador Federation of Municipalities; Dr. Peter Boswell, a professor of Political Science at Memorial University; and Freida Faour, a former Corner Brook City Councillor. David Brake of Gander was appointed coordinator. The Task Force was empowered to draft its own Terms of Reference.

In February of 1997, the Task Force commenced its work. At least one public hearing was held in each of the 20 Regional Economic Zones and, in all, a total of 33 public hearings were conducted. In October of 1997, the Task Force presented its report to Government.

The main recommendation of the independent Task Force calls for establishment of a Regional County Services Board in each of the 20 economic zones to be governed by a Board of Directors comprised of both elected and appointed officials representing municipalities and unincorporated areas.

According to the Task Force:

There was limited acceptability for the Regional Council approach; it would impose a second level of government; it would be expensive, highly bureaucratic and remote from people in the region.

The Regional Service Authority model offers only minimal encouragement to further a sense of community; towns without an adequate financial base would be no better off; the Task Force believes a more formal structure is required; that this model does nothing to encourage a regional outlook.

The report of the Task Force is being released to allow municipalities and other stakeholders an opportunity to comment on the findings and recommendations and to make their views known on the regionalization initiative.

Stakeholders will have until December 30, 1997 to make their written submissions on the report of the Task Force.

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TASK FORCE ON MUNICIPAL REGIONALIZATION
Terms of Reference

The Task Force on Municipal Regionalization has been struck to hold public consultations throughout the Province to gauge public response to the Government's options for municipal restructuring as outlined in the discussion paper entitled "Reforming Municipal Government in Newfoundland and Labrador - The Time For Regionalization".

The Task Force sees its mandate as not only consulting municipal representatives and the general public on the specific options of Regional Councils and Regional Service Authorities as set out in the discussion paper, but also on general issues of regional cooperation and regional authority boundaries, regional municipal financing and the provision of municipal services to currently unincorporated areas of the province.

To achieve this mandate, the Task Force intends to hold public hearings throughout the Province to obtain the views of municipal representatives, groups, organizations and the general public on:

1. The regionalization options outlined in the Government's discussion paper entitled "Reforming Municipal Government in Newfoundland and Labrador - The Time For Regionalization."

2. Alternative options for providing municipal services which may be appropriate in specific areas.

3. Strategies for bringing unincorporated areas within regional municipal jurisdiction.

4. The potential of the recently-created Regional Economic Zones as the basis for regional municipal boundaries.

5. The potential of the Regional Economic Development Boards as providers of specific regional services.

6. The application of a minimum municipal property tax or service fee applied uniformly throughout the province.

The Task Force expects to commence a 12-week public hearing process in early February and to have its final report completed by June 1997. In order to fulfill its mandate, the Task Force will examine municipal regionalization experience in other provinces and may employ professional research assistance as required.