The following statement was issued today by Jim Walsh, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

Transfer of Stephenville�s Port Harmon

I am rising today to inform my colleagues of the serious concerns I have over the transfer of Stephenville�s Port Harmon by the federal government.

On March 17, 2003, I wrote the Honourable David Collenette, Minister of Transport for the Government of Canada, outlining the province�s concerns. In that letter I demanded the minister revoke the direction given to his officials to conclude a transfer agreement with the Port Harmon Authority Ltd. without further delay.

On the evening of March 24, I spoke with Mr. Collentte and made him an offer. The terms of this offer included:

• The province will assume responsibility for the wharf;
• The province will accept the $7.5 million the federal government has offered the port authority for capital improvements and operation of the harbour; and
• Within 60 days of federal government acceptance of this offer, the province will turn the port and the funds over to a community-based group.

Unfortunately, Mr. Collenette stated he is proceeding with the transfer as originally planned.

Transport Canada officials have repeatedly ignored my department�s requests to be part of the discussions with the Port Harmon Authority Ltd. As we have not been party to the discussions, we have no assurance the arrangement is compatible with provincial interests.

Federal policy states that regional and local ports, including harbour beds, owned by Transport Canada are to be first offered to other departments within the Government of Canada and then to the provinces. If a department or province is not interested in acquiring these facilities, Transport Canada then seeks expressions of interest from local stakeholders, including municipalities.

We are also concerned the Federal Port Divestiture Program has not followed an appropriate process to deal with either provincial concerns or those of the local community. Residents in the Stephenville area have formed a concerned citizens group to help ensure their concerns are heard by those making decisions on this matter. Transport Canada has acknowledged they are aware of the concerns of other local stakeholders but attempts to resolve the issues have, thus far, failed.

We encourage the Town of Stephenville to seek an injunction to prevent this transfer.

I reiterate the province�s concerns over this transfer and I assure the people of the Stephenville area the provincial government will continue to do whatever it can to bring a successful resolution to this issue. I regret that the Government of Canada is just not listening to the requirements and needs of the people of the Stephenville area.

2003 03 26                                      2:15 p.m.