NLIS 5
November 18, 2002
(Mines and Energy)
 

I rise in the house today to provide honourable members with an update on the Voisey�s Bay project.

As honourable members are aware, this province and Inco signed a development agreement for the Voisey�s Bay Project on October 7. Since that time, preliminary work has been progressing in a number of areas at the Voisey�s Bay site including road infrastructure, port facilities and a temporary airstrip, with a temporary project office being established at the Argentia site by the end of the month. Also, Voisey�s Bay Nickel Company Limited (VBNC) has recently registered its plans for the construction of the demonstration plant at Argentia with the Department of Environment for its Environmental Assessment Process. Once environmental release is obtained, construction will commence on building the warehouse at the site.

To date, 12 contracts have been awarded, valued at over $30 million. The Industrial and Employment Benefits Agreement (IEBA) has been very effective in achieving the province�s commitment to maximize local benefits from the project. Today, 161 people are employed at the Voisey�s Bay site, of which 137 (85 per cent) are residents of Newfoundland and Labrador. Approximately, 250 people are employed in all aspects of the project in the province.

We have recently heard comments from some honourable members that work is not moving forward quickly enough in certain areas, primarily at the Argentia site. I wish to take this opportunity to assure honourable members that VBNC�s work plan is on schedule, however, preliminary work must be completed to ensure the long-term success of the site. The company has committed to spending $5 million on the Argentia site before March, and we have been assured that this commitment will be kept.

There have also been questions raised regarding benefits issues, and the awarding of certain contracts. I wish to reiterate to honourable members that qualified Newfoundland and Labrador companies are, and will continue to be given first consideration in the awarding of contracts. Government continues to monitor this situation and is confident that the guidelines set out in the IEBA are being followed. Where Newfoundland and Labrador companies are qualified to do the work and specification requirements can be met, these companies will get first consideration.

Since the Statement of Principles and subsequently the binding contracts have been signed, the response from local industry regarding benefits issues has been positive. We believe that this demonstrates the strength of the signed agreements. We continue to monitor all aspects of the Voisey�s Bay project to ensure that all commitments made to the people of Newfoundland and Labrador are kept. The people of the province can be assured that the agreements on the development of Voisey�s Bay are being followed.

I continue to look forward to the impressive benefits that will accrue to this province over the next couple of years as we move from site preparation activities to construction. We will then truly see the magnitude and scope of this project.

2002 11 18                   2:05 p.m.