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Transportation and Works
Municipal Affairs
Health and Community Services
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Advanced Education and Skills
Environment and Conservation
Fisheries and Aquaculture
April 24, 2012

Building Prosperity: Infrastructure Investments Promote Sustainable Success

Budget 2012: People and Prosperity – Responsible Investments for a Secure Future includes almost $900 million for infrastructure improvements that are central to the daily lives of Newfoundlanders and Labradorians, and key to continued prosperity. This investment will complete major roads projects, replace aging ferries, restore and improve some of the most recognizable and historically significant structures in the province, and modernize equipment.

The investment will also generate 6,600 person years of employment to stimulate the economy and create new opportunities for people pursuing careers in skilled trades. Budget 2012 continues an ongoing series of multi-year infrastructure investments now valued at almost $5 billion that will enhance the economic and social development of the province for years to come.

“Approximately $1 billion has been invested in infrastructure by this government in each of the last several years to enhance transportation, health, education, culture, and virtually every other aspect of life in the province,” said the Honourable Tom Hedderson, Minister of Transportation and Works. “Our investment this year is focused on strategic work that builds on our successes to date to encourage economic growth and provide a strong foundation for future development.”

Infrastructure investments through Budget 2012 involve multiple Provincial Government departments and agencies as detailed in other budget announcements.

Transportation and Works
Budget 2012 provides a total of approximately $310 million for various infrastructure initiatives through the Department of Transportation and Works, which include:

Provincial road and bridge infrastructure will be enhanced through an investment of $165.1 million, which will leverage an additional $60 million in federal support for a total investment of $225.1 million through Budget 2012.

This investment includes:

  • $65.8 million to call the last two tenders to complete Phase I of the Trans Labrador Highway, which will mark a major milestone in the development of one of the largest road projects in the province’s history;
  • $60.1 million in continued investment in the Provincial Roads Improvement Program;
  • $13.2 million for the first year of a three-year project to replace the Sir Ambrose Shea Lift Bridge in Placentia;
  • $19.7 million for continued construction work on the Team Gushue Highway extension;
  • $10.5 million for continued construction work on the Conception Bay South By-Pass Road;
  • $3.5 million to complete the Kenmount Road Overpass at Topsail Road; and,
  • Various road and bridge projects on the Trans Canada Highway.

Budget 2012 will bring significant investment to enhance marine services in the province, including:

  • $10.4 million to advance the Provincial Government’s vessel replacement schedule. This includes:
    • funding to complete the design of the six small ferries for the south coast of Newfoundland and the south coast of Labrador;
    • funding to complete the design of a replacement vessel for the MV Captain Earl Winsor, which currently services Fogo Island and Change Islands; and,
    • $5 million to begin the process of constructing the replacement for the MV Captain Earl Winsor;
  • An investment of $15.9 million for vessel refits; and,
  • An investment of $4 million for maintenance and upgrades to provincial ferry terminals and wharves.

Air Services

  • Provincial Government Air Services will be enhanced by a Budget 2012 investment of $3.5 million to begin the planning and development of improved aircraft storage options in Gander.

A total of $40.2 million will be invested in public buildings in 2012. This investment includes funding to renovate the province’s iconic 50-year-old Confederation Building, enhance accessibility at public buildings, make alterations and improvements to existing Provincial Government facilities, and develop plans for future infrastructure projects.

Other investments include:

  • $8 million for the purchase of heavy vehicles;
  • $1.4 million for construction of new salt storage sheds; and,
  • $1.5 million for land acquisitions for various construction projects.

Municipal Affairs
The Provincial Government will continue its important and strategic investment into municipal infrastructure with an investment of $130 million over two years for new municipal infrastructure projects. In doing so, cost-share ratios established in 2008 will be maintained to benefit municipalities. For communities with populations below 3,000, the Provincial Government will continue to invest 90 per cent of the cost of new infrastructure with the municipality providing 10 per cent; 80 per cent of the cost will continue to be covered for populations between 3,000 and 7,000; and 70 per cent of the cost will continue to be covered for municipalities with populations over 7,000. When calculating its investment, the Provincial Government includes the provincial portion of the HST and pays its applicable share of that cost.

Health and Community Services
Health care infrastructure continues to be a priority in Budget 2012, which provides a total investment of $230.5 million in capital infrastructure, including $158.9 million for continuing construction and redevelopment, $45 million for new equipment, and $26.6 million for repairs and renovations.

The unprecedented investments the Provincial Government has made in K-12 infrastructure will continue. Budget 2012 will provide over $115 million for new and ongoing infrastructure projects throughout Newfoundland and Labrador. Since 2004, over $567 million has been allocated for K-12 infrastructure in this province.

Tourism, Culture and Recreation
The Provincial Government is continuing to invest in the restoration of the Colonial Building, with an allocation of $9.5 million in Budget 2012. This initiative is also being supported by the Government of Canada through the Provincial-Territorial Base Fund of the Building Canada Plan.

Advanced Education and Skills
The Provincial Government has committed $40.8 million through Budget 2012 to support the construction of new residences for Memorial University. Budget 2012 also commits $11.2 million for renovations to existing residences. In addition, the Provincial Government has allocated $2.5 million to accelerate shop modernization at College of the North Atlantic campuses.

Budget 2012 allocates $4.1 million for the new contract for policing services by the Royal Canadian Mounted Police. This investment includes $3.9 million in each of the next five years representing the province’s 70 per cent share relative to the new accommodations program. This program will see significant renovations or replacement of detachments and living quarters throughout the province.

Environment and Conservation
As part of the revitalization effort for Salmonier Nature Park, funding of $2.8 million is allocated in Budget 2012 for a new visitor centre and associated infrastructure at the nature park. An additional $805,000 has also been allocated for energy efficiency initiatives at the park through the NL Green Fund.

Fisheries and Aquaculture
To further support biosecurity in the aquaculture industry, the Provincial Government has allocated over $6.2 million in Budget 2012 for the construction of aquaculture wharves in the Coast of Bays region. These new wharves will enhance biosecurity and fish health performance by providing clean inflow wharves for aquaculture use. Biosecurity is vital to maintaining health and to reducing the risk of acquiring disease at an aquaculture farm.

Newfoundland and Labrador Housing Corporation
Newfoundland and Labrador Housing Corporation will contribute $2.7 million through Budget 2012 towards the federal-provincial Affordable Housing Initiative. This investment is part of the Provincial Government’s overall three-year, $8.1 million commitment, which will generate a total $16.2 million in federal-provincial funding and create 254 new affordable housing units province-wide.

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Media contacts:

Jason Card
Director of Communications
Department of Transportation and Works
709-729-3015, 699-0470
Tansy Mundon
Director of Communications
Department of Municipal Affairs
709-729-1983, 693-1865

Jennifer Tulk
Director of Communications
Department of Health and Community Services
709-729-1377, 699-6524

Heather May
Director of Communications
Department of Education
709-729-0048, 697-5061

Diana Quinton
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 631-8155

John Tompkins
Director of Communications
Department of Advanced Education and Skills
709-729-0753, 728-7762

Vanessa Colman-Sadd
Director of Communications
Department of Justice
709-729-6985, 682-6593

Melony O’Neill
Director of Communications
Department of Environment and Conservation
709-729-2575, 689-0928

Bradley Power
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 699-5707

Jenny Bowring
Manager, Communications
Newfoundland and Labrador Housing Corporation

2012 04 24                               2:40 p.m.

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