May 14, 1998
(Works, Services and Transportation)

The following statement was issued today by Ernie Mclean, Minister Responsible for Labrador. It was also read in the House of Assembly:

I am pleased to announce the award of an $8,446,860 contract to S.M. Construction for the upgrading of approximately 56 km of the Trans Labrador Highway from Cache River to Wilson River.

The award of this contract brings the province's total commitment for the TLH project for this year to $36 million. This includes $500,000 for planning, environmental assessment and design of Phase II of the project between Red Bay and Cartwright.

During the past two months, two contracts were also awarded to S.M. Construction for the upgrading of 24.7 km of the highway from Wilson River to Metchin River and 32 km from Metchin River to Rapids Brook. Two contracts were also awarded to Labrador Construction for the upgrading of 21.6 km between Rapids Brook and Churchill Falls and 42 km from Churchill Falls to Esker Intersection. Together with the carry-over contracts for upgrading between Bob's Brook and Cache River, and Lower Brook to Pope's Hill, a total of 210 km of highway between Happy Valley-Goose Bay and Esker Intersection will be under construction this year.

The Department of Works, Services and Transportation anticipates that all work -- with the exception of the approximately 15 km between Cache River and Wilson River -- will be completed this year.

In April 1997, government made a commitment to complete the upgrading of the highway between Happy Valley-Goose Bay and Churchill Falls in three years. The projects being announced today will result in the work being substantially completed in two years.

Work is ongoing on the environmental assessment for Phase II between Red Bay and Cartwright. I am hoping environmental approvals will be in place for the 1999 construction season. This being the case, government intends to construct Phase II in four construction seasons, thus fulfilling the original commitment of completing Phase II in six years. Government recognizes that it is a major undertaking to complete the road in four seasons, but the Department of Works, Services and Transportation has been assured by contractors and in-house engineering staff that it can be done.

I am pleased to be able to report this good news, to outline the work that is being done on the Trans Labrador Highway and to re-state this government's strong commitment to the Trans Labrador Highway project. This project represent a very aggressive construction phase for this section of the highway.

Government will continue an open and regular dialogue with the trucking community and the public at large to minimize local concerns.

Last year, Government spent $16 million on the construction of the highway between Happy Valley - Goose Bay and Churchill Falls and created 230 direct jobs. This year our expenditure will be $36 million and government estimates that the direct jobs created will be in the order of 510 with many more in associated work.

The Minister of Works, Services and Transportation and I will work with the contractors again this year to maximize employment for residents of Labrador. We are committed to the principle of adjacency.

The Member for Labrador West and I will be in Labrador tonight and tomorrow to brief local representatives and interested groups and give them a complete overview.

1998 05 14 3:45 p.m.