January 15, 1999
(Executive Council)

Labrador Snowmobile Industry Initiative Receives Development of an integrated snowmobile industry for Labrador will get underway this year with federal-provincial funding of $2.7 million. The announcement was made today by Fred Mifflin, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Brian Tobin, Premier of Newfoundland and Labrador.

"Snowmobiling is an integral part of life in Labrador. The existing winter trail system continues to be a vital component of the region's transportation infrastructure," said Minister Mifflin. "It has provided significant social and economic benefits to the region through trade, commerce and communications between otherwise isolated communities. Improvements to the existing trail system will provide an opportunity for further growth and diversification of the local economy, and enhance the already spectacular tourism product Labrador offers the world."

"The Labrador snowmobile trail initiative, when completed over the next few years, is expected to add $8 million annually to the snowmobiling industry in Labrador. It will not only establish the trail system as a viable transportation route, but will extend Labrador's winter tourism season," said Premier Tobin. "Up to 500 jobs will be created both during the construction phase and after construction in the tourism, retail and service sectors. When both the Labrador and the island trail systems are completed, we will have a world-class winter trail network throughout the entire province."

Labrador Member of Parliament Lawrence O'Brien welcomed the announcement. "This project will create jobs in the tourism industry," he said. "These improvements will make Labrador an even better place to visit and also a great place to live and work."

Ernest McLean, Minister of Government Services and Lands, said: "From a community perspective this project will link communities across Labrador during the winter season and provide greater access to the land for residents. For tourists, a groomed trail will make the region a winter tourism destination."

This project will consist of upgrading and rerouting of trails from the Labrador Straits to Paradise River/Cartwright, connecting to the Mulligan Trail from Rigolet on the north side of Lake Melville, and on to Happy Valley-Goose Bay. It also includes a section in Labrador West from Lac Grande Hermine Park north to Esker. This will provide the important links with Quebec's integrated trail system at Fermont in the west and Blanc Sablon in the south. This project will cover an estimated 900 km of trails. Labrador Winter Trail Inc., comprised of representatives of development associations, snowmobile clubs and the federal and provincial governments, will oversee implementation of the initiative.

Funding for the project includes: $1.5 million under the Canada/Newfoundland Comprehensive Economic Development Agreement (CEDA); $1 million from the Canada/Newfoundland COOPERATION Agreement on Strategic Regional Diversification (SRDA); and $200,000 from the Canada/Newfoundland Comprehensive Labrador COOPERATION Agreement (CLCA). All three agreements are federal/provincial initiatives administered federally by ACOA and provincially by the Department of Development and Rural Renewal (SRDA and CLCA) and the Department of Industry, Trade and Technology (CEDA). This funding is in addition to $450,000 from Human Resources Development Canada announced in December 1998.

For more information, please contact:

Randy Devine, ACOA, (709) 772-2935

Heidi Bonnell, Office of the Premier, (709) 729-3960

1999 01 15                                            4:35 p.m.