Minister announces continued support for Debt Relief Program

Oliver Langdon, Minister of Municipal and Provincial Affairs, announced today that government will continue its support for the provincial Debt Relief Program. He said that a further $10 million will be available in 2001-2002, for a total of $35 million allocated to the program to date.

The Debt Relief Program was introduced in 1997-98 to help municipalities regain financial stability. To date, the department has assisted 81 municipalities with funding and/or restructuring advice, and 17 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.

"Government is committed to working with municipalities to help them through their financial difficulties. However, municipalities must become self-reliant by implementing reasonable taxation levels and becoming more accountable," said the minister.

The minister said the department will also continue to support municipalities which are trying to refinance their long-term debt. "Over the last few years, many municipalities have refinanced long-term debt at lower rates through banks and other financial institutions," said the minister. "This speaks well for the fact that many municipalities are practicing sound financial management."

Since the program began, more than 118 municipalities have realized savings, through refinancing $144 million in debt, and were able to reinvest those savings in local infrastructure and operations.

Media contact: Sean Kelly, Communications, (709) 729-1983.

2001 03 22             4:30 p.m.