The following statement was issued today by Lloyd Matthews, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

Mr. Speaker, since becoming Minister of Works, Services and Transportation, I have reviewed departmental plans to undertake a pilot project to privatize highway maintenance and snow clearing operations on the Avalon Peninsula next winter. As a result, I am pleased to announce today that the department, in conjunction with the Newfoundland Association of Public Employees, will take a new direction with respect to this matter.

Mr. Speaker, earlier this week, I met with Mr. David Curtis of NAPE and explored with him the main thrust of the pilot project. Following that meeting, I submitted a new proposal to NAPE which offered to cease any further work on privatizing our highways operations in favour of an alternate pilot project. This alternate project will see a joint management-employee committee work together to identify a reasonable degree of substantive savings in the form of productivity and service improvements in our operations. Our position has always been to provide our highway maintenance services in the most cost effective manner possible. Mr. Curtis has confirmed that this is NAPE's position as well.

Mr. Speaker, I am pleased that Mr. Curtis has accepted this alternate pilot proposal and the department is looking forward to working with NAPE to provide this service in the most efficient way possible.