Minister announces continued support for Debt Relief Program

Oliver Langdon, Minister of Municipal and Provincial Affairs, announced today that government will provide funding to complete the municipal Debt Relief Program. The minister advised that $12 million will be available in 2002-2003, for a total of $47 million allocated to the program since 1997-1998.

The Debt Relief Program was introduced to help municipalities regain financial stability. To date, the department has assisted 139 municipalities with funding and/or restructuring advice, and additional agreements are in various stages of negotiation. The mandate of the program is to help municipalities develop sound financial plans and restructure long-term debt.

Through the program, municipalities have refinanced $128.5 million in debt through private lending institutions and the Newfoundland Municipal Financing Corporation, and were able to reinvest savings in local infrastructure and operations. Fifty-eight municipalities have had their debt reduced with direct financial support from the province. It is estimated that 50 municipalities will receive assistance under the Debt Relief Program in 2002-2003.

"It is essential to the financial success and stability of a municipality that it become self-reliant by implementing reasonable taxation levels. Government recognizes that financial difficulties may hinder the development of a community and will therefore continue to assist municipalities through this program for a final year," said Minister Langdon.

In addition to debt relief, the minister is promoting sound financial management. "Through the work of the Municipal Training and Development Corporation, municipal representatives and administrators now have greater access to training to assist them in handling the financial affairs of the community. Government will continue to support municipalities in their efforts to work toward practicing prudent financial management."

"The priorities of the Debt Relief Program are consistent with the Strategic Social Plan, the goal of which is to build stronger communities. Government remains committed to sustaining the livelihood, and supporting the development of, communities throughout Newfoundland and Labrador."

Media contact: Lynn Hammond, Communications, (709) 729-1983.

2002 03 21                            3:30 p.m.