March 22, 2000
(Municipal and Provincial Affairs)

Debt Relief Program to continue for municipalities

Joan Marie Aylward, Minister of Municipal and Provincial Affairs, announced today that government will continue its support for the provincial Debt Relief Program. She said that a further $5 million will be available in 2000/01, for a total of $22 million allocated for the program to date.

The Debt Relief Program was introduced in 1997/98 to help municipalities regain financial stability. To date, the department has agreements with 63 municipalities and 69 more agreements are in various stages of negotiation. The program helps municipalities develop sound financial plans and also helps them restructure their long-term debt.

"We are committed to working with municipalities to help them become self-reliant. However, municipalities must be responsible by implementing reasonable taxation levels and becoming more accountable" said the minister. "The additional funding this year will let us continue helping municipalities which are still having financial difficulties."

The minister said the department will also continue to support municipalities which are trying to refinance their long term debt. "Many municipalities have demonstrated sound financial management over the last few years by refinancing long-term debt at lower rates through banks and other financial institutions," said the minister. "Since the program began more than 70 municipalities have realized savings, through refinancing $125 million in debt, and were able to reinvest those savings in local infrastructure and operations."

Media contact: Glenn Bruce, Communications, (709) 729-1983.

2000 03 22