March 29, 2000
(Works, Services and Transportation)

Province awarded contract to provide water bomber services to North Carolina

I am extremely pleased to inform Members of the House of Assembly that our government has bid successfully to provide the services of two of its CL-215 water bombers to North Carolina�s Department of Environment and Natural Resources.

Earlier this spring, Newfoundland and Labrador successfully outbid the governments of Quebec, Ontario and Manitoba, as well as a group from Bombardier Aerospace, for the contract, valued at $140,700 U.S. per aircraft. This amount is guaranteed, regardless of whether or not the planes are used while stationed in North Carolina. Right now, we are projecting a net revenue of $60,000 U.S. per aircraft, but depending on the usage of the planes, this amount could be much higher. This will be the third consecutive year that we have provided this service.

The length of the contract is 67 days, and in fact, the aircraft began their service to North Carolina on March 15. Scheduled to return in late May, the planes will be back long before our fire season begins. Currently, one aircraft is stationed at Lumberton Airport, and the other at Jacksonville Airport.

This contract makes good business sense for the people of Newfoundland and Labrador. By providing the use of our water bombers to North Carolina, we benefit on two fronts. First and foremost, we profit from aircraft which would otherwise be parked idle at this time of year. Secondly, the possibility exists that we might, at some point, use some of their aircraft during our peak fire season. The Department of Works, Services and Transportation, in conjunction with the Department of Forest Resources and Agrifoods, is proud to be a part of this initiative.

2000 03 29                                         2:20 p.m.