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Municipal Affairs
November 6, 2007

Province Concerned with Federal Process Concerning Disaster Assistance

Fire and Emergency Services � Newfoundland and Labrador (FES-NL) continues to face challenges associated with concluding Federal Government claims under the Disaster Financial Assistance Arrangements Program (DFAA), most of which relate to difficulties associated with requirements under federal accounting and audit processes.

The Honourable Dave Denine, Minister of Municipal Affairs, and Minister Responsible for Fire and Emergency Services - Newfoundland and Labrador (FES-NL), has expressed concern about the difficult and onerous process to gain federal financial support through the DFAA program. "We have experienced a great deal of frustration over the process of completing DFAA claims. The federal process is extremely challenging and, in many instances, we have been unable to achieve clarity from federal officials as to the exact information that is required. On many occasions, documentation has been submitted, and additional requests from federal officials have been made to the province for further detailed information. This has slowed down the process considerably, resulting in the province not receiving the financial assistance relating to a specific event from the Federal Government."

The Provincial Government remains committed to submitting all required documentation in order to conclude and secure payments for all outstanding DFAA claims, and to working with federal officials in Public Safety Canada to improve this process. The Government of Newfoundland and Labrador estimates provincial disaster financial assistance expenditures since 2000 will approach $90 million in total. In relation to events since 2000, the province has received $7.1 million in interim payments from the Federal Government through the DFAA program, including $2.3 million for Storm Surge 2000, $2.6 million for Tropical Storm Gabrielle 2001, $1.0 million for Badger Flood 2003, and $1.2 million for West Coast Flood 2003.

"Federal representatives have made misleading statements to the media in stating that they have made advancements of $21 million in recent years. In fact, these payments date back to events between 1973 and the present," said Minister Denine. "We are also concerned about statements made by federal officials that advance federal payments can be provided to the province when, in reality, the federal program does not provide for any payments, advance or otherwise, until work has been completed and documentation is submitted which, in some cases, can take years."

"Our officials have made great process in gathering and providing the appropriate documentation to federal officials for events which have occurred in the province and are eligible for funding under DFAA program. From a provincial standpoint, we recognize that issues exist with the claims process and have made efforts to help address them. This has included the establishment of Fire and Emergency Services � Newfoundland and Labrador to more effectively deal with provincial disaster initiatives, and the hiring of appropriate personnel to help address outstanding DFAA claims," said Minister Denine.

"Our primary focus once a disaster occurs is to ensure public safety and that the needs of those affected are responded to. This includes assisting individuals, families and communities who have been impacted and securing provincial and municipal infrastructure," said the minister. "The nature of disaster response requires immediate action, with the province paying for all related expenses upfront, prior to working through the DFAA claims process to secure federal financial support for disaster events."

The chart below provides an update on status of provincial DFAA claims:

Event/Date Cost of Event (estimated) Status of Claim
Storm Surge (2000) $4.4 million Final Federal Audit Requested Nov. 1/07.
Tropical Storm Gabrielle (2001) $6.2 million Claim to be finalized 2007-08.
Badger Flood (2003) $8.2 million Claim to be finalized 2008-09.
West Coast Flood (2003) $9.2 million Claim to be finalized 2008-09.
Stephenville Flood (2005) $26.8 million Interim claim requested Oct. 17/07. Claim to be finalized 2009-10.
Northeast Coast Flood (2006) $4.9 million Final Federal Audit Requested Nov. 1/07. Expect to be completed 2008-09.
Documentation on these events has been submitted to federal officials under DFAA guidelines and are currently under review.
Event/Date Cost of Event (estimated) Status of Claim
Burin Flood (2005) $.971 million Claim to be finalized 2008-09.
Daniels Harbour Landslide (2007) $6.5 million Claim to be finalized 2009-10.
Tropical Storm Chantal (2007) $22.7 million Claim to be finalized 2010-11.
Interim claims on these events have not been submitted to federal officials under DFAA guidelines.

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Media contact:
Heather MacLean
Director of Communications
Department of Municipal Affairs
709-729-1983, 690-2498
heathemaclean@gov.nl.ca

2007 11 06                                                   4:00 p.m.


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