Business
Municipal Affairs
January 28, 2009

Municipalities Benefit from Less Red Tape

Newfoundland and Labrador�s municipalities are benefiting from the Provincial Government�s ongoing initiative to reduce red tape.

"Our government�s Red Tape Reduction Initiative has reduced the number of regulatory requirements by over 23 per cent so far," said the Honourable Paul Oram, Minister of Business. "As more processes are streamlined and paperwork is reduced, those who avail of information and services provided by the Provincial Government are clearly benefiting from this effort. Municipalities are one example."

The Department of Municipal Affairs has implemented many process improvements in the areas of municipal financing arrangements and municipal capital works.

"Municipalities no longer have to submit different funding applications to the various available capital infrastructure programs," said the Honourable Dianne Whalen, Minister of Municipal Affairs. "Towns seeking funding now only have to make one application and the department then determines internally what program would be the most appropriate fit for the request. This process improvement has significantly streamlined the application process and we have received very positive feedback on it."

The Department of Municipal Affairs has also made strides in improving the capital works process beyond the application stage. For example, in the past, municipalities financed 100 per cent of the total project cost and were reimbursed for the provincial portion upon completion of the project, which resulted in municipalities incurring interest while the project was underway. Today, cash advances are made to municipalities. This avoids the accumulation of interest on the provincial portion and results in significant cost savings, a measure that has been well received by municipalities.

The application review process has also been accelerated to ensure commitments are made early in the year to take advantage of the construction season. As well, an engineering design initiative was recently introduced that enables the preliminary design work on projects to begin while the environmental assessments and federal approval process are ongoing. Finally, a move to multi-year project commitments now permits larger projects to proceed in accordance with construction schedules.

"The new approaches by Municipal Affairs will save municipalities time, effort and money," said Municipalities Newfoundland and Labrador President Graham Letto. "A more simplified process will help municipalities get infrastructure projects built faster and easier. MNL looks forward to working with the Provincial Government to make regulations and requirements easier to comply with and reduce the paperwork for municipalities."

In addition to improvements to the Municipal Capital Works program, recent improvements have also been made in the area of municipal financing. Municipal Operating Grants (MOGs) are now issued twice annually, as opposed to four times per year. This benefits municipalities in that they will receive their MOGs earlier and the department also benefits through a reduction in processing time.

The Red Tape Reduction Initiative was announced in 2005 with a goal of reducing regulatory requirements across the Provincial Government by 25 per cent by the end of March 2009. To the end of 2008, departments, agencies, boards and commissions have successfully eliminated more than 71,500 regulatory requirements and taken other measures to enhance administrative processes and client service.

"This initiative is creating a more effective, efficient and flexible regulatory system in Newfoundland and Labrador," said Minister Oram. "At the end of the day, we are making it easier for citizens, businesses and other stakeholders to interact with the Provincial Government."

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Media contacts:

Mark King
Director of Communications
Department of Business
709-729-7628, 699-3454
markking@gov.nl.ca
Jennifer Collingwood
Director of Communications
Department of Municipal Affairs
709-729-1983, 690-2498
JenniferCollingwood@gov.nl.ca

2009 01 28                                                   11:05 a.m.
 


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