August 6, 1998
(Executive Council)

Premier Brian Tobin announced today that the provinces of Newfoundland and Labrador and Nova Scotia have agreed to proceed to arbitration to resolve the offshore boundary dispute between the two provinces.

Premier Tobin and Nova Scotia Premier Russell MacLellan met today in Saskatoon, where they are attending the Annual Premiers' Conference. They agree that, in light of the divergence between their respective positions, and their desire to resolve the matter quickly and fairly, a federal arbitration panel should be appointed to settle the matter in a fair, reasonable and timely fashion.

The premier noted that resolution of the boundary will allow exploration for oil and gas to proceed in the disputed area of the Laurentian Channel. This highly prospective area has the potential to generate jobs and royalties for both provinces.

"Newfoundland and Labrador and Nova Scotia enjoy a close, effective, and productive relationship, and share common viewpoints on a wide range of issues, such as fiscal arrangements and social policy," Premier Tobin said. "We do not want the boundary dispute to affect this productive relationship.

"I look forward to resolving this question so that we can get on with developing the east coast oil and gas industry for the mutual benefit of Newfoundland and Labrador and Nova Scotia," he said.

The premier noted that federal Minister of Natural Resources Ralph Goodale has previously signalled his willingness to pursue arbitration in this matter. Premiers Tobin and MacLellan agreed their officials would meet with Natural Resources Canada officials at the earliest opportunity to initiate this process.

Contact: Heidi Bonnell, (709) 729-3570, cell (709) 685-3674.

1998 08 06                                   8:25 p.m.