Minister concerned over federal infrastructure fund

Jack Byrne, Minister of Municipal and Provincial Affairs, is concerned about a recent federal government announcement regarding a new Municipal Rural Infrastructure Fund (MRIF). On February 12, Andy Scott, Minister of State (Infrastructure), issued a news release indicating that Newfoundland and Labrador will receive $28 million from the federal government for cost-shared municipal infrastructure.

"This $28 million will flow to the province over a 10-year period, based on a draft agreement recently provided by federal officials," said Minister Byrne. "This funding will not go far in meeting the infrastructure requirements of municipalities in Newfoundland and Labrador."

During the five-year period of 2001-2005, the federal government will contribute $51 million towards infrastructure under the present Canada/Newfoundland and Labrador Infrastructure Program (CNIP). "Therefore, when you look at the overall context, that means $28 million over the next 10 years represents an almost 50 per cent reduction in federal support for municipal infrastructure," said Minister Byrne.

Minister Byrne has written his federal counterpart to highlight a number of concerns he has with this new federal MRIF program. "We are also concerned about how the federal government allocates funding among the provinces," noted Mr. Byrne. "While Newfoundland and Labrador has been allocated $28 million, Quebec and Ontario have been allocated $200 - $300 million each. It would appear that while the focus of this program is municipal rural infrastructure, populations of large urban centers have been included in the federal allocation formula. In our view, only communities with populations under 250,000 should be counted for a rural infrastructure program."

Further discussions will be held with federal representatives in the coming weeks in an effort to address the province�s concerns with this new program.

Media contact: Vanessa Colman-Sadd, Communications, (709) 729-1983

2004 02 13                                        4:10 p.m.