Budget reflects government�s commitment to Labrador

Budget 2003 reflects government�s continued commitment to the people of Labrador, says Labrador and Aboriginal Affairs Minister Wally Andersen.

"This year�s budget initiatives for Labrador include capital investments in transportation, as well as funding to ensure Labrador�s forest resource is developed and managed for the benefit of the region," said Minister Andersen.

More than $26 million has been earmarked to improve transportation networks, including $17 million to start construction of Phase III of the Trans Labrador Highway from Happy Valley-Goose Bay to Cartwright Junction.

"Work will begin on this important link of the highway pending approval under the environmental assessment process, which is currently underway," said the minister. "The Trans Labrador Highway continues to be government�s number one transportation priority in Labrador."

While Phase II of the highway between Cartwright and Red Bay opened last fall, a total of $4.65 million has been set aside to carry out additional work. About $4.5 million will be spent to complete the road to Pinsent�s Arm, and $500,000 has been allocated to upgrade local roads in Cartwright. In addition, government will spend about $4.7 million on summer and winter maintenance on the Trans Labrador Highway, which includes an increase of $250,000 on the newly-opened sections between Cartwright and Charlottetown.

"The work being carried out this year will bring improvements to the highway, and set the groundwork for the future transportation needs of the entire region," said Minister Andersen.

Budget 2003 also sets aside some $2.65 million for wharf and terminal upgrades along the Labrador coast. Work will be carried out at Cartwright, Postville, Black Tickle and Norman Bay. About $100,000 will be spent to improve facilities at St. Barbe to enhance the Strait of Belle Isle ferry service.

A total of $550,000 has also been set aside in the budget to allow the Innu Nation and the Labrador Metis Nation to participate in the management of Labrador�s forest resources. "This money enables the Innu and the Metis to play an active role in forestry management in Labrador," said the minister.

The minister added that there are a number of other initiatives for Labrador that are contained in this year�s budget, including:

• more than $3.3 million in provincial funding under the Contribution Agreement between the Government of Canada and the Government of Newfoundland and Labrador for the Benefit of the Inuit communities of Labrador;
• approximately $1 million for housing initiatives, under the proposed federal-provincial Affordable Housing Agreement;
• continued funding for the Labrador Travel Subsidy; and
• continued funding for the Labrador Foodlift Subsidy.

Media contact: Bert Pomeroy, Communications, (709) 896-8668

2003 03 27                                        4:25 p.m.