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January 14, 1999
(Municipal and Provincial Affairs)


Province announces measures to assist municipalities

Lloyd Matthews, Minister of Municipal and Provincial Affairs, today announced several initiatives designed to assist municipalities throughout the province and help them plan for the future.

Minister Matthews said that municipal operating grants for the years 1999 and 2000 will be maintained at $21.5 million which means that municipalities can count on $3 million more in 1999 and $9 million more in the year 2000.

He also announced that the province will be introducing an accelerated, multi-year component to the Municipal Capital Works Program. He said: "Providing for infrastructure requirements, including water and sewer, waste management facilities and roads, continues to be a significant challenge. My department has been examining this problem in consultation with municipalities, engineering consultants and other stakeholders. We will work with the Federation of Municipalities to refine and implement this multi-year approach. This accelerated, multi-year provision will be accommodated within current budget allocations."

Minister Matthews stressed that this initiative will build on the existing capital works program to the benefit of all municipalities.

The minister also commented on the success of the Debt Relief Program. He said: "Government has, to date, provided $12 million for this initiative which was introduced in 1997/98 to help the municipalities regain financial stability."

In excess of 100 municipalities have participated or are participating in the program. He commended these municipalities for their commitment to ensuring that their communities were financially accountable and responsible. He also committed that government will work with municipalities and the NLFM to continue to develop and provide this worthwhile initiative.

Sam Synard, president of the Newfoundland and Labrador Federation of Municipalities said that the NLFM welcomed the initiatives. He said: "These are very positive steps in assisting municipalities. They show that government recognizes the difficulties faced by municipalities and is working to respond to their needs."

Minister Matthews added: "These initiatives demonstrate that government is working to help municipalities make the right choices to manage change. Government is investing public money wisely, focusing on community needs and providing effective programs and financial support to ensure that our municipalities can deliver the services that residents of the province require."

Media contact: John Doody, Director of Communications, (709) 729-3142.

1999 01 14 10:20 a.m.


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