Budget 2005 builds on infrastructure commitments

A strong infrastructure foundation is critical to the growth of Newfoundland and Labrador. Strategic investment to improve infrastructure and long-term planning are the most effective ways government can stimulate economic growth and contribute to priority social needs.

Society depends upon a strong, quality infrastructure foundation such as roads, ferries, hospitals, schools, water and sewer systems, courthouses and recreation facilities. Budget 2005 commits to infrastructure improvements in these areas and more � improvements that better enable the province to succeed as a global competitor and that improve the quality of life for Newfoundlanders and Labradorians.

Following are highlights of strategic investments in infrastructure in Budget 2005:

Transportation and Works
With Budget 2005 allocations for provincial roads, highway improvements, heavy equipment, ferries and marine infrastructure, the Department of Transportation and Works is strengthening the province�s infrastructure foundation in transportation.

Minister Tom Rideout said, "In Budget 2005, our government will be spending significant monies on our provincial road network. This will continue to address the deterioration of our roads that has been the result of years of underfunding."

As part of government�s ongoing commitment to rehabilitating our provincial roads infrastructure, there will be a continuation of the commitment of $30 million for the Provincial Roads Improvement Program. This represents an ongoing increase of $7 million over the 2003-04 budget. As well, $3.7 million in uncompleted road work will be carried over from the 2004-05 fiscal year, for a total of $33.7 million allocated to the program in Budget 2005.

As part of government�s plan to continue working with our partners in the federal government, Budget 2005 provides $13.65 million for highway improvements, under the Strategic Highways Infrastructure Program. This program is cost-shared with the federal government with the province contributing $7.5 million to the program.

An additional $18 million has been allocated so that government can leverage additional monies from the federal government under other potential cost-shared programs. Government has entered into discussions with the federal government regarding cost-sharing of projects under these programs.

Government has an ongoing commitment to improved transportation links in Labrador. The completion of the Trans Labrador Highway is one of the highest transportation priorities of our government. Budget 2005 provides $40 million for continued work on Phase III of the Trans Labrador Highway, including carryover work from the 2004-05 construction season. (See News Release - Budget 2005 affirms commitments to Labrador development)

In order to replace the aging fleet of heavy equipment that is currently in place as a result of years of underfunding, government is providing an additional $3.5 million in new funding for heavy equipment purchases in Budget 2005. A total of $6.5 million will be budgeted for our heavy equipment in this budget year. "This will facilitate improvements in our provincial snowclearing operations and enable us to provide a more reliable service to the public," Minister Rideout said.

Government is also making strategic investments in ferries and marine infrastructure. These investments include $2.97 million for refits to the MV Sir Robert Bond and MV Northern Ranger, and another $4.0 million for annual and mid-life vessel refits of our ferries that service the island. There is also $1 million, in new funding, for capital improvements to the province�s ferry terminals and $500,000 for planning work toward the implementation of a provincial vessel replacement strategy. These represent strategic investments that will enable government to provide for a stable ferry service, over the long term. (See News Release - Budget 2005 announces strategic investments in marine infrastructure)

Municipal and Provincial Affairs
Improvements to municipal infrastructure have been approved for 2005-06 at $83 million under the Multi-Year Capital Works Program, the Municipal Capital Works Program and the Canada/Newfoundland and Labrador Infrastructure Program. These cost-shared programs fund projects such as water and sewer improvements, municipal building upgrades, recreational facilities, firefighting equipment and local roads.

"These municipal infrastructure programs are extremely important for our municipalities," said Minister Jack Byrne. "Frequently, municipalities would not be able to afford important and often expensive projects without the help of these cost-sharing programs. Reliable infrastructure is key for our municipalities, especially in rural areas, to become vibrant and strong. Infrastructure promotes job creation which in turn will strengthen our economy."

Education
Government has committed $26 million for school infrastructure this year for major maintenance, renovations, up-grading, extensions and re-development of aging buildings, and to address other issues important to the health and safety in our schools throughout Newfoundland and Labrador. As well, government provided funding for school boards to complete a long-term facilities plan to assess the suitability of existing buildings and estimate future needs for school infrastructure. (See March 10, 2005 news release - Government announces major maintenance commitment for schools)

Health and Community Services
Government will provide funding for long-term care facilities at three locations in the province. $2.7 million will go towards a new Corner Brook long-term care home to proceed with detailed design and initial site work; $1.4 million towards a new long-term care home in Clarenville to begin detailed design and site work; and $200,000 to begin planning and developing conceptual drawings for a new long-term care home in Happy Valley-Goose Bay. (See News Release - Government enhances care for seniors with $14.5 million investment)

Tourism, Culture and Recreation
Government will provide $1.3 million over two years towards the future development of a new Provincial Training Centre in St. John�s to support provincial and Canada Games athletes and teams with their training and competition requirements. Government�s contribution is based on a proposal advanced by Sport Newfoundland and Labrador and the Newfoundland Rugby Union for the construction of a new facility through a public/private partnership. The total estimated cost for the project is $4.3 million. The Government of Newfoundland and Labrador is the first funding partner to confirm its investment for the project. (See News Release - Increased investment in sport and recreation)

Justice
The Department of Justice is proceeding with a $400,000 investment in a planning and design phase for a new Supreme and Provincial Court facility in Corner Brook. (See News Release - Building services to improve justice system)

Media contact:
Lori-Lee Oates, Transportation and Works, (709) 729-3015, 690-8403
Vanessa Colman-Sadd, Municipal and Provincial Affairs, (709) 729-1983, 682-6593
Nora Daly, Education, (709) 729-1906, 728-2819
Carolyn Chaplin, Health and Community Services, (709) 729-1377, 682-5093
Tansy Mundon, Tourism, Culture and Recreation, (709) 729-0928, 685-1741
Heather MacLean, Justice, (709) 729-6985, 690-2498

2005 03 21                         3:45 p.m.