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Labrador and Aboriginal Affairs
May 31, 2011

Plan for Oil Tank Repair and Replacement Moving Forward

A series of community meetings taking place this week in the Inuit communities of Nain, Hopedale, Postville, Makkovik and Rigolet will provide further details on the Government Assistance Plan for the repair and replacement of residential oil tanks.

“This Government Assistance Plan is designed in recognition of the exceptional challenges faced by residents in these remote communities to have their oil tanks meet environmental regulations,” said the Honourable Patty Pottle, Minister of Aboriginal Affairs, who will host the community meetings. “The Provincial Government has listened to the concerns of Labrador’s North Coast residents and devised a plan that addresses many issues. Today, I am pleased to announce that we are moving forward and making every effort to ensure that homeowners are fully informed of this comprehensive assistance program so their oil tanks can be made safe and secure.”

Some of the issues raised by North Coast residents include the high cost of compliance with environmental regulations, lack of access to licensed burner mechanics, and financial challenges for persons with low incomes.

“Improved access to programs and services is a key objective in the Northern Strategic Plan for Labrador,” said the Honourable John Hickey, Minister of Labrador Affairs. “This assistance plan for oil tank repair and replacement in Inuit communities is an excellent example of how the Provincial Government recognizes and responds to the unique challenges faced by people living in remote communities.”

The community meetings are scheduled as follows:

June 1 June 2

Through a combination of financial and in-kind resources, the Government Assistance Plan will encourage compliance with Heating Oil Storage Tank System (HOST) Regulations, 2003 in Inuit communities. Homeowners who participate will see a substantial reduction in the necessary expense to achieve compliance with HOST to a level comparable to costs incurred by homeowners in other parts of Labrador – approximately $1,800.

Under the plan, participants will be assisted with the inspection, replacement and registration of their home heating oil tanks. The Provincial Government will co-ordinate and pay for pre-inspections, reduce the per-unit cost of oil tanks through a bulk purchase, eliminate oil-tank shipping costs, and pay the travel costs of the licensed inspectors who will do the installations, repairs and registrations.

Homeowners requiring tank replacement will be expected to make a $500 downpayment, which will be waived for persons with an annual household income of $35,000 or less. As well, Newfoundland and Labrador Housing Corporation will provide loans for the replacement of tanks to eligible homeowners with a maximum annual household income of $35,000.

Budget 2011 Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador, includes $1.5 million for an assistance plan for Inuit communities on the northern Labrador coast where homeowners face unique and difficult challenges associated with the registration of home heating oil tanks to meet compliance with HOST regulations.

It is expected that a tender for the pre-inspections of residential oil tanks will be awarded in the coming days. The pre-inspections will allow homeowners with tanks that are eligible for registration to have their tanks registered during this initial stage of the Government Assistance Plan. They will also assist in determining the quantity of tanks that need replacement and repairs prior to their being registered.

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Media contact:
John Tompkins
Director of Communications
Department of Labrador and Aboriginal Affairs
709-729-1674, 728-7762
jtompkins@gov.nl.ca

2011 05 31                                                                            10:10 a.m.

 
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