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February 4, 1998
(Municipal and Provincial Affairs)

The following statement was issued today by Arthur D. Reid, Minister of Municipal and Provincial Affairs, at a news conference held in St.John's:

The Southlands Feasibility Study

First of all, I want to formally introduce Dr. Frederick W. Russell and to thank him for joining me for this news conference.

Dr. Russell was appointed last September as a commissioner to study and report on the future municipal jurisdiction of the development known as Southlands. Gordon C. Barnes, Brigadier General (retired), served as secretary to the commission and I am pleased, as well, that he is able to join us this morning.

The appointment of Dr. Russell as a commissioner to study and report on Southlands is consistent with an earlier commitment by government to review the matter of ownership of Southlands.

Specifically, the commissioner was asked to determine whether Southlands should remain within the municipal jurisdiction of St. John's or whether it should be municipally administered by the City of Mount Pearl.

The Feasibility Report, as you know, was presented to government on Monday, February 2.

At this time, and on behalf of Premier Tobin and the Government of Newfoundland and Labrador, I wish to thank Dr. Russell and Mr. Barnes for compiling what we consider to be a most thorough and comprehensive report relating to the future jurisdiction of Southlands.

As it is known, public hearings were held in St. John's and Mount Pearl and, in all, a total of 41 submissions were received by the commissioner.

Copies of the document were presented on Tuesday to the Cities of St. John's and Mount Pearl and the report is being publicly released today.

At this time, I want to read the recommendation of the Commissioner:

"As a result of this Feasibility Study and specifically these findings, I have concluded that it is desirable for Southlands to remain within the municipal jurisdiction of the City of St. John's and I so recommend."

Government has completed its review of the Feasibility Report and has accepted the recommendation of the commissioner and the Southlands Development will remain within the municipal jurisdiction of the City of St. John's.

I do want to make it clear that Cabinet made the decision, in advance of the receipt of the Southlands Feasibility Report, to accept and adopt whatever recommendation the commissioner deemed appropriate to make.

Commissioner Russell has concluded that:

"The removal of Southlands from the jurisdiction of St. John's would have serious consequences for the future development and viability of the City of St. John's."

Southlands was placed under the jurisdiction of St. John's during the 1992 Northeast Avalon boundary adjustments as a form of compensation to the city for taking over less developed areas.

The Feasibility Report concluded that it would "clearly be unjust" to now remove Southlands from St. John's and deprive it of the long-term opportunity to offset some of these additional capital expenditures that were made by the city in these undeveloped areas.

At the time of the appointment of the commissioner, there was some suggestion that government should consider the broader question of amalgamating the Cities of St. John's and Mount Pearl.

I want to make it abundantly clear today that government does not have any intention of entertaining the question of amalgamating the cities of St. John's and Mount Pearl.

The status of Mount Pearl as a separate city is not in question. Mount Pearl today is a vibrant city, perhaps one of the most efficiently run municipalities in the province, and it will remain as a separate entity into the future. The only way that government will entertain the question of amalgamation is for it to be requested by the City of Mount Pearl.

The same applies with respect to the issue of regionalization. The regionalization of services in the two cities will apply only if it is requested and agreed to by both of the cities.

In his report, Commissioner Russell makes reference to the fact that the province does not pay any property taxes to municipalities for provincial government properties in these municipalities. This has been an issue of considerable controversy for many years now.

The commissioner conducted a survey of 12 cities in Canada and, in all instances but one, the provinces pay grants equal to taxes or grants in lieu of taxes. The commissioner recommends that government undertake an in-depth study to examine all sides of the issue to ensure that municipalities - where government properties are located - are being treated fairly and in line with other provinces.

The commissioner does point out that, while on the surface this appears to be inequitable, the province does pay for the cost of some infrastructure and other services that government does not pay for in other provinces.

I am pleased to announce today that government is prepared to initiate such a study in an attempt to resolve, once and for all, this issue of controversy.

That concludes my remarks and I would now ask Dr. Russell to elaborate on the findings of his report and the rationale for the recommendation which he made to government.