The Placentia area received a tremendous boost today with joint announcements of a new school and details of compensation arrangements for the area with Voisey�s Bay Nickel Company (VBNC) in the absence of the commercial processing facility being constructed at Argentia.

The Honourable Kathy Dunderdale, Minister of Natural Resources, and the Honourable Joan Burke, Minister of Education, along with Placentia and St. Mary�s MHA Felix Collins, were in Placentia today to announce funding for a new school and the corporate support VBNC is providing to the project and to the area through agreements with the Town of Placentia and the Argentia Management Authority (AMA).

As part of its negotiated corporate support, VBNC is contributing $1.8 million to assist with the construction of recreational facilities for Laval High School.

"A tremendous amount of work has gone on behind the scenes over the last five weeks by all the parties involved to facilitate an arrangement that would see the area properly and fairly compensated for the expectations that were created around the location of the commercial processing facility," Minister Dunderdale said. "We made it very clear to the company that it had a responsibility for creating those expectations and we are pleased today to see those efforts have paid off to the satisfaction of the town and the management authority. I want to take this opportunity to thank Felix Collins for his relentless efforts in facilitating these discussions and securing these benefits."

The agreements VBNC have reached have an estimated monetary value of about $5 million over three years, with the potential for that to increase significantly over the next six years as the town finalizes tax arrangements with the company. Part of that will be an annual donation to the Town of Placentia by the company in lieu of lost taxes in the absence of the processing facility. That amount is yet to be determined, but it will be significant as it will be based on the level of taxation the company pays to the Town of Long Harbour.

The two agreements also include commitments by VBNC related to encouraging local employment, training and business opportunities, and a commitment to try and keep the demonstration plant at Argentia open to 2010, subject to the approval of the necessary funds. The plant, which employs 150 people, was scheduled to close in 2007.

The agreements include a combination of commitments regarding spin-off benefits to the community and direct financial contributions. In addition to tax arrangements and the future of the demonstration plant, they include:

VBNC notified government in November 2005 of its decision to locate the commercial processing facility at a site in the province other than Argentia. The company concluded Argentia is no longer feasible because of environmental, legal and business risks associated with the site. The province had asked the federal government to make it possible for the operation to remain at Argentia by providing VBNC with full indemnity to mitigate some of the environmental concerns, but the request was denied. VBNC�s proposed site at Long Harbour is now in the provincial environmental assessment process.

The government�s commitment to the people of Placentia was also clearly demonstrated today with the announcement of approval to build a new school for Grades 7-12. "I know that people of the Placentia area have been seeking a new school for some time. Government recognized that it was time to replace Laval High School. To that end, we have allocated funds to begin planning the new facility," said Minister Burke.

The new school will be mechanically ventilated, have a skilled-trades suite, a home economics room, computer room, gymnasium, fitness centre and library resource centre. It will also have a challenging needs suite, a computer network and be fully accessible. Areas around the new school will be landscaped and paved.

Dr. Darin King, CEO/Director of the Eastern School District, said the new school will provide an excellent learning environment for Placentia students and teachers. "We appreciate this government's support for the education system and the improvements we continue to realize throughout the district. I acknowledge the support, cooperation and leadership from government, school board trustees, school councils, and the entire school community for supporting a new school for this area," Dr. King said.

Placentia and St. Mary�s MHA Felix Collins said today�s joint announcements were much anticipated by the community and are great news for his district. "VBNC�s decision not to locate the commercial processing facility in Argentia was a great blow to the area, but we have been able to negotiate a compensation package that recognizes the support the community has given to the company over the years and ensures the area will still greatly benefit from the Voisey�s Bay project. The Voisey�s Bay project and the construction of the new school will have an extremely positive impact on our community as we look forward to a bright future," Mr. Collins said.

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