Transportation and Works
May 14, 2018

Government Provides Update on Grace Hospital Nursing Residence, Management of Assets

The Honourable Steve Crocker, Minister of Transportation and Works, is today acknowledging progress on how the department is managing provincially-owned assets and reducing its number of vehicles and associated costs. Asset management is a focus of The Way Forward, and these actions highlight government’s responsible approach to managing government assets and reducing spending.

The Provincial Government has determined it has no use for the site of the former Grace Hospital Nursing Residence and will soon begin hazmat and property assessments at the site. This will inform next steps, including the sale of the property and removal of the building.

The consolidation of government-owned vehicles will remove 110 light duty vehicles this year from its fleet of approximately 1,100 vehicles. Savings on fuel, insurance, parts and maintenance are expected to reach $500,000 annually. Since April 1, 2018, the fleet has been reduced by 20 vehicles.

The new system being implemented allows government employees, such as wildlife officers, highway enforcement officers and park rangers, who need vehicles to perform their duties to reserve vehicles when needed, leading to infrequently-used vehicles being used more often.

The department is also exploring opportunities to sell off the MV Earl Winsor, which will eliminate the need for security and electricity for the vessel, saving taxpayers approximately $237,000 per year. In addition, the tender on the sale of two surplus older model water bombers and parts closes today. An update on the sale of the aircraft will be provided in the coming days.

These steps are in addition to the Provincial Government reducing its leased office space across all departments by more than 92,000 square feet since 2016, resulting in savings of $2.7 million annually. Further reductions for leased office space are planned in the coming months. The Provincial Government has set a new goal to reduce leased space by 130,000 square feet in 2020.

These initiatives deliver on commitments in The Way Forward to operate a more efficient public sector. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca

Quote
“We have made significant progress on divesting unused assets and becoming more efficient in how we use our leased space. We are continuing to optimize the leased office space that we need to have for providing services, and are finding ways to dispose of other vacant or underused space and buildings. These initiatives reflect our commitment to the responsible management of government assets and reducing government expenditures.”
Honourable Steve Crocker
Minister of Transportation and Works

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The Way Forward – thewayforward.gov.nl.ca

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Media contact
Rod Drover
Transportation and Works
709-729-1758, 730-4607
rodneycdrover@gov.nl.ca

2018 05 14                              11:15 a.m.