NLIS 4
December 14, 2004
(Transportation and Works)
(Labrador and Aboriginal Affairs)

 


The following statement was issued today by Thomas G. Rideout, Minister of Transportation and Works and Minister Responsible for Aboriginal Affairs. It was also read in the House of Assembly: 

I rise in this honourable house today to provide members with an update on the fuel situation in Rigolet. 

As honourable members know, the Town of Rigolet has not had a commercial fuel retailer for the last number of years. Subsequent to a fuel spill in the community in 2002, the previous operator withdrew from the community, leaving the town council to run the gas bar. While efforts have continued to identify a private sector operator, none has been found to date. The community has encountered a number of challenges, including fuel shortages, as it attempted to deal with the situation. 

In mid-August, Premier Williams visited the community and met with the town council of Rigolet where he had a briefing on the fuel shortage and associated difficulties. A week later, I visited Rigolet and held a similar meeting with the town council and officials in Rigolet. Following these two meetings, the Premier and myself directed our officials to continue working with the community to resolve the issue. 

During the summer, the Town of Rigolet took on the responsibility of retailing gasoline and fuel, and brought in product in 205 litre drums. Town officials dispensed the rationed fuel from the town council garage. The Department of Transportation and Works responded to the situation by providing free freight on all the shipments of fuel in drums to and from Rigolet. This helped greatly in lessening the operating costs for the town. 

While this temporary fuel supply system was in place, provincial officials were working to assist the mayor, councillors and town officials with developing short and long-term plans to solve the problems. For the short-term, and in order to get sufficient fuel into Rigolet before freeze up closed marine navigation, the mayor and council approached our government for financial assistance. 

The Department of Labrador and Aboriginal Affairs provided $5,400 to the town to purchase a replacement dispensing pump. My colleague, Minister Jack Byrne of the Department of Municipal and Provincial Affairs, responded with a Special Assistance Grant of $15,292 to purchase two new storage tanks, to ensure adequate capacity to prevent a fuel shortage before new stock could be delivered after spring break-up. The purchase was cost-shared, with the grant covering 80 per cent of the cost, and the town covering the remaining 20 per cent. 

The Department of Transportation and Works also absorbed the transportation charges for the tanks and the pump. Minister Byrne also gave approval for the Town of Rigolet to borrow $250,000, to purchase gasoline and fuel product to supply the community until marine shipping resumes in 2005. 

On November 16, 2004, the tanker, Sybil W, delivered gasoline and fuel oil to the tanks in the town.  There was a short-fall in the amount of gasoline delivered. Over the next week, the town council, provincial officials and the owners of the Sybil W worked out arrangements to send the tanker back with the rest of the order. 

I am pleased to inform this honourable house that the Sybil W has delivered the last 30,000 litres of gasoline and the community is now out of the �gas crunch� that they went through in the late summer and fall. The two new storage tanks and the gas pump have been successfully installed and are operational. 

The Department of Labrador and Aboriginal Affairs remains committed to working with the town in the New Year, to achieve the goal of identifying a private sector operator to take over retail fuel sales in Rigolet. 

Reaching this stage of the project is clearly the result of an excellent and trusting working relationship developed between the province, the Town of Rigolet and other parties involved. I express gratitude to all those involved for their hard work. We look forward to working with them in the future, as we all move toward a long-term solution for the people of Rigolet. 

2004 12 14                         1:45 p.m.


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