March 25, 1998
(Works, Services and Transportation)

The following statement was issued today by Lloyd Matthews, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

I rise today to inform Honourable Members of an agreement reached between the Department of Works, Services and Transportation and the State of North Carolina, for the use of two CL 215 water bombers owned by the province.

The two provincial aircraft have been contracted to North Carolina for a 60 day period. The aircraft will be used on standby for fighting forest fires in the state. The province will receive $2,200 U.S. per day, for each aircraft and an additional $1,700 per hour in flying time. Even in the event no flying time is required, the province will still generate gross revenues of $264,000 US. The first aircraft was deployed on the 16th of March and the second arrived on the 22nd of March.

This is a period during the year when these aircraft are not in use by the province, however, both aircraft will be back in Newfoundland and Labrador by the end of May for our use. This is the second time the province has entered into a contract with the State of North Carolina for the use of our water bombers, the first being in 1993 when we contracted one aircraft to the state for revenues of $174,000.

This is a significant revenue generating practice for the Government of Newfoundland and Labrador. We will continue to find ways to utilize our equipment and our resources to the full advantage of the people of the province.