BACKGROUNDER
Budget focuses on Labrador

General Overview

• The 2002 Budget announces a number of key items for Labrador, particularly with respect to transportation.

• The Government of Newfoundland and Labrador and the Government of Canada signed the $340 million Labrador Transportation Initiative Agreement (LTIF) in March 1997. The agreement resulted in the transfer of the Labrador coastal marine service, including two vessels � the MV Sir Robert Bond and the MV Northern Ranger � to the province from the federal government.
  
• The fund was established to complete Phase I (from Labrador West to Happy Valley-Goose Bay) and Phase II (from Red Bay to Cartwright) of the Trans Labrador Highway. As well, the province assumed full responsibility for the Labrador coastal marine services. Phase I has been completed, and Phase II is scheduled to be completed by the fall of 2003.
  
• It was initially recognized that the fund would not allow for the completion of Phase III of the Trans Labrador Highway from Happy Valley-Goose Bay to Cartwright.
  
• Following completion of Phase II, as well as other planned transportation infrastructure, the province will recognize $97.4 million from the fund as general revenue this year. This is prudent management, since government�s cost of borrowing will exceed the interest being earned on the fund.
  
• Government will continue to operate and maintain Labrador coastal marine services in the same manner it provides marine services to other parts of the province.
  
• Government has made a $17 million a year commitment for six years to build Phase III of the Trans Labrador Highway. Work is slated to begin following the completion of an environmental assessment. Government will continue to request the support of the federal government to fund this and other roads expenditures in the province.
  
• A total of $17 million will be spent this year to continue construction of the Trans Labrador Highway to complete Phase II from Red Bay to Cartwright.
  
• A total of $3 million will be spent to build an access road from the Trans Labrador Highway to Pinsent�s Arm.
  
• $1.8 million is budgeted to improve roads in the southern Labrador communities of Port Hope Simpson and Cartwright, and to finish upgrading roads in Charlottetown and Mary�s Harbour.
  
• $300,000 will be spent to finish upgrading roads in Rigolet, and $500,000 has been put aside for continued resurfacing of the North West River Road.
  
• $394,000 in new funding for winter maintenance on newly-opened sections of the Trans-Labrador Highway between Port Hope Simpson and Cartwright has been committed, bringing the total expenditure on summer and winter maintenance on Phase I and Phase II to $4.5 million.
  
• An additional $100,000 will be provided for snowmobile trail grants.

• Funding to renovate the Provincial Court in Happy Valley-Goose Bay to include a second courtroom and accommodations for Prosecutions, Victim Services and Probation Services;
  
• Proposals will be called for a new building to house the Supreme Court in Happy Valley-Goose Bay;
  
• $700,000 for Access North � Labrador 2002 celebrations;
  
• $3 million for housing initiatives under the North Coast Strategic Initiative;
  
• The creation of 2.5 positions with the Occupational Health and Safety Division of the Department of Labour in Labrador West;
  
• An additional $250,000 for the Transition House Program, with a significant portion to enhance services in Labrador West and coastal Labrador. In addition to the enhancements, the funding will also support training and security at a number of transition houses in the province, including Libra House in Happy Valley-Goose Bay, the Family Crisis Shelter in Labrador City and the Nain Women�s Shelter;
  
• The creation of an Environmental Health Officer position within the Department of Health and Community Services, to be shared by Health Labrador Corporation and Grenfell Regional Health Services;
  
• Funding to provide a Mini-picture Archiving and Communications System (PACS) for Health Labrador Corporation, allowing for more expedient diagnosis in the region;
  
• $800,000 for incentive bonuses to attract teachers to coastal Labrador communities will be maintained;
  
• Funding for the Aboriginal Cadet Development Program, which would see Aboriginal youth receive skills upgrading as preparation for RCMP training;
  
• Funding for the Labrador Straits Visitor Information Centre, to expand its focus to encompass the broader tourism region of coastal Labrador;
  
• Through cost-shared federal funding, the Gateway Labrador project is being developed in Labrador West; and
  
• $427,000 for the Labrador Travel Subsidy will be maintained.

Media contact: Bert Pomeroy, Communications, (709) 896-8668.

2002 03 21                                3:20 p.m.