Increased Home Heating Fuel Rebate announced;
almost 25,000 households eligible for assistance

Almost 25,000 households will be eligible for assistance under an expanded home heating fuel rebate initiative, the first component in government�s plan to address rising home heating costs, Loyola Sullivan, Minister of Finance and President of Treasury Board, announced today. With an investment of over $9 million, government is increasing the home heating fuel rebate to a maximum of $400, an increase of $150 over last year�s rebate, and expanding the eligibility parameters to enable more Newfoundlanders and Labradorians to receive assistance.

The rebate is available to individuals and families with a household income level of $30,000 or less and whose primary heating source is home heating fuel (furnace fuel, stove oil, and propane). A maximum rebate amount of $400 is available to households with an income level of $22,500. Individuals and families with income between $22,500 to $30,000 will also receive assistance; however the rebate will be adjusted on a sliding scale as household income level increases. The minimum rebate an eligible household will receive is $100.

"The price of home heating fuel today is almost double the average price it was in 2001. With these rising costs, those who can least afford it are faced with additional financial hardships trying to heat their homes. We want to help ease some of that burden by offering a rebate, and implementing it prior to the start of winter, so that people will have the rebate when home heating costs are traditionally higher," said the minister.

Minister Sullivan explained government recognizes that to truly help individuals and families with rising home heating costs, more must be done than offer rebate initiatives. "Making homes more energy efficient, in conjunction with better energy conservation practices, will provide real solutions to the rising costs and government has an obligation to help in that area as well," he said.

"In the coming weeks, government will unveil the second component in our plan to reduce home heating costs which is aimed at helping Newfoundlanders and Labradorians to lower their home heating costs and save money. It will involve a new program to help low income families increase energy efficiency and conservation in their homes for the long term," said Minister Sullivan.

Media contact: Diane Keough, Communications, (709) 729-6830, 685-4401

The Home Heating Fuel Rebate is available to residents of the province whose household income is $30,000 or less and whose primary heat source is home heating fuel.

For the purposes of this rebate initiative, home heating fuel includes furnace fuel, stove oil, and propane.

Eligible individuals or families must apply for the rebate, and must demonstrate (include a copy of a statement or invoice with the application) that they purchased home heating fuel between July 1, 2005 to March 31, 2006. Household income is the net income of the individual applying plus, if applicable, the income of that person�s spouse or partner.

Individuals and families with income between $22,500 to $30,000 will also receive assistance based on a sliding scale. The minimum rebate an eligible household will receive is $100.

Application forms are available through:

Only one person per household may apply for the rebate. The deadline for submitting applications is April 30, 2006. Applicants should allow six to eight weeks for processing.

Applications must be sent to:

Home Heating Fuel Rebate
Department of Finance
Tax Administration Division
P.O. Box 8740, St. John�s, NL
A1B 4K3

For further information on the home heating fuel rebate, please contact the Department of Finance at (709) 729-1695 or toll-free at 1-877-729-1695.

2005 10 21                             12:05 p.m.