July 21, 1999
(Executive Council)

Government to construct access road to St. Lewis

Government announced today its intention to construct a new access road to St. Lewis to connect with the Red Bay to Cartwright Highway.

The announcement was made by Premier Brian Tobin; Ernie McLean, Minister Responsible for Labrador; Rick Woodford, Minister of Works, Services and Transportation; and Labrador MHA Yvonne Jones.

Tenders will be called next spring to construct the approximately 38 kilometre access road and it is anticipated that two construction seasons will be required to complete the job. It will be undertaken in two sections, starting from the community of St. Lewis toward Red Bay and Cartwright.

Government included the access road to St. Lewis in the Environmental Assessment Statement (EAS) recently carried out and subsequently approved for the Red Bay to Cartwright Road in the event that funding could be found to build this access road.

Premier Tobin said the access road to St. Lewis will be constructed out of interest accumulated over the past number of years on the Trans Labrador Initiative funds. In 1997, the federal and provincial governments announced an agreement that transferred responsibility for Labrador Marine Services to the province. In exchange, the province received an amount of $340 million including $190 for highway construction.

The premier said: "The interest accumulated on that fund together with cost savings achieved from current projects now make it possible to commit funding to complete the access road to St. Lewis. The announcement is in keeping with government's earlier commitment to use every dollar under the compensation package for highway infrastructure and marine ferry services in Labrador.

"The new access road to St. Lewis will mean increased mobility and it will result in a substantial improvement in the quality of life for the residents of this community."

Minister McLean said: "Government listened to the people of St. Lewis when they clearly expressed a desire for an access road that would bring about an end to isolation. The construction of the access road is an important issue for all communities in Labrador including St. Lewis.

"The new highway, the improved ferry services and the ongoing presence of air services provided by the private sector will ensure that Labradorians will reap benefits from many ongoing economic development projects and that this infrastructure will serve to enhance the tourism industry of this great land."

Mr. Woodford said government, in building this access road is succeeding in its efforts to connect the people of Labrador to all of the opportunities available to them. "Transportation is a significant issue for Labrador communities which rely on a dependable transportation infrastructure for both personal travel and for the movement of goods and services to and from communities within Labrador and the rest of the world. This government is working hard to ensure that Labrador reaps all of the benefits it so richly deserve."

L'Anse au Clair MHA Yvonne Jones said the construction of the access road to St. Lewis marks an historic moment in the evolution of Labrador transportation services.

"We are taking appropriate measures to ensure that the infrastructure is in place to bring Labradorians into the next century. Among other things, the construction of this road will ensure that residents of St. Lewis are no longer isolated and without access to consistent and reliable transportation services for freight, mail and personal travel.

"There is a strong recognition and commitment by government that improvements need to be made and I am sure this announcement will be well received by all residents of Labrador, particularly those who reside in the community of St. Lewis."

Media contact: Heidi Bonnell (709) 729-3564.

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BACKGROUNDER
LABRADOR TRANSPORTATION INITIATIVE

In April of 1997, the federal and provincial governments announced an agreement that transferred responsibility for Labrador Marine Services to the province. In exchange, the province received a $340 million cash settlement, and two ships valued at $25 million.

THE RED BAY TO CARTWRIGHT PROJECT

• More than $190 million to be invested in upgrading and expansion of the highway.

• The highway will provide the people of Labrador with the kind of road system needed to permit continued economic growth.

• It will open Labrador to new economic development opportunities in tourism, forestry, mining, the fishery and other areas.

• The next four years will see the completion of a new highway from Red Bay to Cartwright.

• The next two years will see construction of the access road to St. Lewis.

• Upgraded, to a high-standard gravel surface highway, the 540 kilometre road from Churchill Falls to Happy Valley-Goose Bay.

• Three year construction period began in 1997 and will be completed in 1999.

• Planning, design, and environmental assessment for the Red Bay to Cartwright Highway.

• Construction of the 325 kilometre road from Red Bay to Cartwright at a total cost over four years of $130 million, with $36 million to be spent this year.

• Contracts were awarded this year and construction encompasses a total of six projects this year.

  - Red Bay towards Lodge Bay - 18.5 km
  - Lodge Bay towards Red Bay - 16.5 km
  - Port Hope Simpson towards Mary's Harbour - 23 km
  - Charlottetown Access Road - 20 km
  - Cartwright towards Paradise:
  (a) km 0 - km 20
  (b) km 20- km 40

Employment and Investment Benefits

• Upgrade of road from Churchill Falls to Happy Valley - Goose Bay
  - Seasonal employment for 3,000 people.
  - Investment of $60 million

• Red Bay to Cartwright.
  - Seasonal employment for 5,600 people.
  - Investment of $130 million.

General Economic Benefits

• New highway construction in each of the next four years.
• New highway construction jobs (over 8,600 seasonal jobs to be created).
• Improved road transportation system.
• Improved year-round distribution of goods for all of Labrador, including the north coast.
• Improved and expanded tourism opportunities (as was the case in Alaska).
• Improved access to existing/potential resource developments in mining, forestry.

General Social Benefits

• Greater interaction among Labrador residents in communities previously considered remote or isolated.
• Greater access to health, education, and recreation facilities in Labrador.
• Eliminates the sense of isolation within Labrador, between Labrador and Newfoundland, and with other parts of Canada.
• Reduced personal and business travel costs.

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LABRADOR FERRY SERVICES

• Contract awarded to Coastal Labrador Marine Services Ltd., (10663 NFLD Ltd., for two years (1998/1999) with government option to extend the contract for an additional year.

• Contract calls for the operation/management of the Government owned vessels, M/V Northern Ranger, the M/V Sir Robert Bond and the Goose Bay and Lewisporte marine terminals as well as all other port facilities serving Coastal Labrador ferry services.

• Contract includes management of two chartered freight vessels, the M/V Astron and the M/V Nada during the 1999 operating season.

• Cruising Labrador component of the passenger/freight service offered on the M/V Northern Ranger provided under separate agreement between the Department of Tourism and Culture and the VTTA (Viking Trail Tourism Association).

• Yearly government budget for Labrador Marine Services - $14 to $15 million range.

• Rate freeze on all intra-provincial ferry services remains in effect.

• Minimum shipping rate broken down into two categories - shipments 50 kilograms or less $20.00; shipments over 50 kilograms remain at $35.00.

• Jockey charge for vehicles using the Sir Robert Bond will remain at $35.00.

• Local 1-800-NFLD call number to book a reservation on the Northern Ranger.

• Heavy equipment (exclusively for use by the community councils) will see a 50 per cent discount on the heavy equipment rate.

• Schedule for Sir Robert Bond and Northern Ranger same as last year.

• Sir Robert Bond departs Lewisporte June 9, ice permitting, and continues in the passenger mode until September 8, then continues to move freight with the close of the shipping season to Goose Bay. WST commitment to stop at Cartwright on the first trip up.

• Northern Ranger departs St. Anthony on July 1, calling all ports to Nain, again ice permitting. Northern Ranger makes last run for the season from St. Anthony on October 17.

• Cruising Labrador packages offered again this year.

• Northern Princess continues to provide ferry services from St. Barbe to Blanc Sablon.

• Service has capacity and flexibility in the schedule to accommodate a major influx of traffic, particularly heavy equipment and trucks, which may be associated with the construction of the Red Bay to Cartwright Highway.

1999 07 21         9:15 a.m.