New deal for cities and communities

Municipal and Provincial Affairs Minister, Jack Byrne, is encouraged by news that the federal government is moving forward with its New Deal for Cities and Communities announced by Federal Minister John Godfrey yesterday.

"Under this new deal, the province will receive $82.3 million over the next five years, which we will then channel to municipalities for infrastructure development," said Minister Byrne. "We will soon engage in bi-lateral negotiations with the federal government which will give us a clear understanding of all the terms and conditions which may be attached to this funding."

The funding will be invested in environmentally-sustainable municipal infrastructure and is intended to assist communities of all sizes. Further discussions with the federal government will be necessary to further define what types of infrastructure will qualify as "environmentally sustainable." Upon full implementation in year five, the province�s annual entitlement will be approximately $32.9 million. The amount the province will receive in 2005 will be determined after the federal budget but, based on a five-year phase-in period, may be in the range of $10-12 million.

"This new funding, combined with the $140 million federal/provincial/municipal infrastructure investment, which I announced back in November 2004, will benefit communities throughout the province," said the minister. "After we receive more details from the federal government, we will be consulting with the Newfoundland and Labrador Federation of Municipalities on a strategy for investing in municipal infrastructure."

For more information, please view the federal news release at the following:
www.news.gc.ca/cfmx/CCP/view/en/index.cfm?articleid=124609&

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

2005 02 02                                     3:25 p.m.