July 20, 1999
(Environment and Labour)

Government announces environmental trust fund

Premier Brian Tobin announced today the activation of the Newfoundland and Labrador Waste Management Trust Fund. The Trust Fund will be used to finance such activities as community-based environmental initiatives, including river clean-ups, recycling programs and environmental education programs.

When the beverage container recycling program was announced in January 1997, government announced that surplus funds which accumulate as a result of unclaimed refunds will be used to finance the system and thereby ensure that it remains financially sustainable. "The total revenue generated by the system exceeds the amount needed to operate the program at this time," stated the premier. "We have therefore decided to allocate $3 million to the Newfoundland and Labrador Waste Management Trust Fund." The premier added that the details and criteria for the program will be developed and announced at a later date. The premier also stated that funding for environmental projects will be available in the current fiscal year.

Financing for the Trust Fund will come from surplus funds generated through the beverage container recycling program. Today's announcement clearly delivers on government's original commitment to use any surplus funds from the system for environmental purposes.

In 1996, government passed environmental legislation which established the beverage container recycling program. "As a direct result of this initiative, over 200 million beverage containers have been diverted from landfills," said Tobin. "By allowing for the creation of a Trust Fund, we left the door open for government to be able to put additional resources in the hands of communities to be used for environmental projects."

Government, in consultation with industry, agreed to transfer funds to the Trust Fund at this time while ensuring that appropriate funding levels are maintained to secure the beverage container recycling program. Future allocations to the Trust Fund will be made only after a financial review of the system indicates that such allocations will not jeopardize its viability.

Media contact: Heidi Bonnell, Communications, Office of the Premier, (709) 454-3740, or Sean Kelly, Communications, Department of Environment and Labour, (709) 729-2575.

1999 07 20         11:05 a.m.