Executive Council
Municipal Affairs
September 4, 2012

Over $4.2 Million Infusion in Labrador West

The Dunderdale Government will invest over $4.2 million in the towns of Labrador City and Wabush for new municipal infrastructure as part of the 2012-14 Multi-Year Capital Works Program.

The Honourable Kevin O’Brien, Minister of Municipal Affairs, made the announcement today at the Labrador City town hall. The minister was joined by the Honourable Nick McGrath, Minister Responsible for Labrador Affairs; Karen Oldford, Mayor of Labrador City, and Ron Barron, Mayor of Wabush.

“This government remains committed to strategically investing in new and updated infrastructure throughout the province,” said Minister O’Brien. “The Labrador West region is one of a number of areas experiencing significant growth and we continue to work with communities to identify the most efficient and effective means of meeting the needs of both residents and industry. Today’s investment provides Labrador City and Wabush with the opportunity to continue to deliver high-quality municipal services.”

Labrador City will receive $3.28 million to carry out municipal infrastructure upgrades including road repairs and sewer upgrades. In addition, funding will support a needs assessment for the town hall/fire hall and design work for a replacement building for the Lake Harrie Treatment Plant. Wabush will receive $1 million in funding to carry out street upgrades.

Funding is cost-shared based on population, with the Provincial Government providing 70 per cent of the total cost for Labrador City and 90 per cent of the total cost for Wabush.

“Labrador West is experiencing a robust economy right now and both Labrador City and Wabush are poised for continued economic growth,” said Minister McGrath. “These infrastructure investments illustrate our government’s commitment to the region and the exciting opportunities ahead.”

Budget 2012: People and Prosperity included $130 million over two years for municipal capital works projects throughout the province. Since 2008, the Provincial Government has invested over $500 million in municipal capital works projects which has resulted in improved municipal infrastructure across the province. These projects have provided municipalities the opportunity to secure, develop and improve infrastructure for residents and support the long-term sustainability of growth and development of communities throughout the province.

The Provincial Government has also maintained improved cost-shared funding ratios established in 2008 to benefit municipalities. For communities with populations below 3,000, the Provincial Government will continue to invest 90 per cent of the cost of new infrastructure with the municipality providing 10 per cent; 80 per cent of the cost will continue to be covered for populations between 3,000 and 7,000; and 70 per cent of the cost will continue to be covered for municipalities with populations over 7,000.

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Photo: The Honourable Kevin O’Brien, Minister of Municipal Affairs, announced $4.2 million for Labrador West. L-R; Honourable Nick McGrath, Minister Responsible for Labrador Affairs; Karen Oldford, Mayor of Labrador City; Minister O'Brien; and Ron Barron, Mayor of Wabush.

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2012 09 04                                              4:20 p.m.