Feasibility study planned for Stephenville Airport

Industry, Trade and Rural Development Minister Kathy Dunderdale announced today that the provincial government, the Stephenville Airport Corporation and the Town of Stephenville will carry out a feasibility study on the viability and future of the Stephenville Airport.

"The airport has been under some financial pressures and we feel the time has come to take a look at the operations of the airport," said Minister Dunderdale. "The feasibility study will help all parties involved get a clearer picture of the long-term viability of the airport."

Representatives from the provincial government, the town and the airport authority will immediately begin drafting the Terms of Reference for the feasibility study. It is expected the study will be completed in March.

The Town of Stephenville also developed a proposal, which was accepted by the airport authority, that allows the airport to continue operating while the feasibility study is being conducted. The Town of Stephenville agreed to purchase land from the Stephenville Airport Corporation to be used for the construction of a sewage treatment plant. The price for this land is $240,000 as determined by an independent appraisal. The purchase of the land is to be cost-shared equally with the Government of Newfoundland and Labrador under the multi-year Capital Works Agreement between the Department of Municipal and Provincial Affairs and the Town of Stephenville, and under the Canada-Newfoundland Infrastructure Program. The land in question had been identified earlier as the most suitable for the facility.

The Town of Stephenville is also in negotiations with the Stephenville Airport Corporation to purchase a second piece of land.

Minister Dunderdale said she is pleased government was able to facilitate negotiations between the airport authority and the town. "The town and the airport authority worked very diligently to put this agreement in place. I am glad government was able to help facilitate the arrangement."

Joan Burke, MHA for St. George�s - Stephenville East said, "Government understands the importance of the airport to the town of Stephenville and I am pleased the province has been able to play a positive role in this process."

Port au Port MHA Jim Hodder said, "I am pleased with the agreement and believe this is a step forward for the airport and the town of Stephenville."

Media contact: Lynn Evans, Industry, Trade and Rural Development, (709) 729-4570 or (709) 690-6290

2004 01 26                                        12:00 p.m.