Assistance for Anchor Point

Oliver Langdon, Minister of Municipal and Provincial Affairs, responded today to comments made by the MHA for the District of St. Barbe regarding financial assistance for the Town of Anchor Point.

"The provincial government, through the Department of Municipal and Provincial Affairs, has offered the Town of Anchor Point the opportunity to enter into an agreement to restructure the council�s long-term debt, and the province will significantly contribute to the amount currently owing to the Newfoundland Municipal Financing Corporation," said Minister Langdon.

The town would in turn be expected to generate the necessary cash flow to meet annual operating costs and the required payment on its remaining long term debt. The town would then be eligible to apply for funding under the municipal capital works and infrastructure programs.

The department also recently provided $4,800 for upgrades to the Anchor Point Town Hall.

The Debt Relief Program was introduced to help municipalities regain financial stability. The mandate of the program is to help municipalities develop sound financial plans and restructure long-term debt. Assistance has been provided to approximately 150 communities over the past five years with a total of $47 million.

"The Government of Newfoundland and Labrador continues to be committed to the growth and viability of small towns," said the minister. "This is evident through measures that have been established in recent years including the variable cost-sharing guidelines that permit communities access to important infrastructure that they would not otherwise have been able to afford under the capital works and infrastructure programs," said the minister. In some cases the province will incur up to 90 per cent of the provincial/municipal share of the project.

As well, the province provides municipalities under boil water advisories access to 100 per cent provincial funding up to a maximum of $100,000 to install or upgrade water disinfection equipment.

"The Department of Municipal and Provincial Affairs works with municipalities to determine their priorities and assists them in assessing their ability to carry a certain amount of long term debt. To do otherwise would be fiscally irresponsible for both the province and the municipality," said the minister.

In the last provincial budget, the government committed more than $100 million over three years for the Multi-Year Municipal Capital Works Program which will be cost-shared on a 50/50 basis with 14 larger municipalities. This separate program allows smaller communities to access funding under the regular Municipal Capital Works Program and the Canada-Newfoundland Infrastructure Program, without having to compete with larger projects in larger communities.

"I am pleased that we are in a position to assist the Town of Anchor Point in restructuring their long term debt and look forward to signing an agreement with the council that will strengthen the financial stability of the town, and its position to undertake future capital works and infrastructure projects," said Minister Langdon.

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

2002 10 23                                       5:10 p.m.