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November 27, 1997
(Minister Responsible for Labrador)


The following statement was issued today by Ernie McLean, Minister Responsible for Labrador. It was also read in the House of Assembly:

On April 3, 1997, government announced the construction of the Trans Labrador Highway following the successful completion of negotiations between the province and Ottawa on the transfer of responsibility for the Labrador coastal boat service from the federal to the provincial government.

Today, it my pleasure to inform the House that this government will be setting up a dedicated fund for the highway and the maintenance of ferry services in Labrador. This fund, to be known as the Labrador Transportation Initiative Fund, will allow all monies for the project to be separate and apart from other general government revenues.

This is an extraordinary action by government. Usually in such cases, government would simply enter the funding, in this case a total of approximately $353 million, into general revenue. Instead, this money will be focussed on a sole purpose: the development of a modern transportation infrastructure for the people of Labrador.

The first two phases of Trans Labrador Highway construction will be completed over the next six years. Phase 1 will see the completion of the road from Happy Valley-Goose Bay to Labrador West, and will include environmental assessment, planning and engineering for Phase 2. This work has already begun. This past summer we spent almost $20 million to make huge improvements to the existing road from Happy Valley-Goose Bay to Labrador West.

Phase 2 will include the construction of the link from Cartwright to Red Bay. Construction will begin as soon as the design work and environmental process are completed, as early as 1998. Environmental assessment, planning and engineering for the final phase will begin during this period.

The Trans-Labrador Highway is one of several new initiatives we have taken since February of 1996 to meet the real needs of the people of Labrador, including:

  • new Labrador Regional Hospital located in Happy Valley-Goose Bay;

  • new schools in Nain, Rigolet and Hopedale;

  • a sales tax rebate for housing construction in Labrador;

  • a reduction in tobacco tax rate for southern Labrador and Labrador West;

  • the reinstatement of the Labrador Air Subsidy, of particular benefit to the South Coast;

This government agrees with the people of Labrador when they say that the Trans-Labrador Highway, along with land claim settlements, is the key to opening up Labrador's tremendous economic potential.

1997 11 27 2:30 p.m.

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