The Local Service District of Piccadilly Head will receive $102,000 for upgrades to the water supply system through the 2008-09 Municipal Capital Works (MCW) program.

"The Provincial Government recognizes that communities require efficient infrastructure," said the Honourable Dave Denine, Minister of Municipal Affairs. "This funding is important to ensure the residents of Piccadilly Head have access to a reliable and safe water supply system."

The Municipal Capital Works program fosters the development of cost-shared projects in a wide range of municipal infrastructure, including water and waste-water treatment, roads, recreational facilities and fire equipment. Minister Denine recently announced that through the 2008-09 MCW program, $61.2 million will be spent on many infrastructure improvement projects province-wide. Under the program, the Provincial Government will contribute $32.4 million; the Federal Government will contribute $12 million and the municipalities will contribute $14.1 million. Towns will also utilize the federal GST rebate as part of the capital cost.

"I am extremely pleased with this funding announcement, which will ensure a safe and adequate water supply for the residents of the area," said Tony Cornect, MHA for Port au Port. "It is great to see our government continuing to respond to the infrastructure needs of our rural communities."

The MCW program has been significantly improved by recently announced revised cost-share ratios for municipalities. These new changes state that towns with populations under 3,000 now have to contribute only 10 per cent toward the cost of capital infrastructure. Towns with populations between 3,000 and 7,000 contribute 20 per cent and the largest cities and towns with populations over 7,000 contribute 30 per cent.

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