The following statement was given today in the House of Assembly by the Honourable Kevin O’Brien, Minister of Municipal Affairs:

Provincial Government Supports Strong and Sustainable Municipalities

Mr. Speaker, I am pleased to rise today in this Honourable House, to highlight key investments in Budget 2013 to support the people and communities of Newfoundland and Labrador.

Budget 2013 demonstrates the continued commitment of the Provincial Government to assist towns and communities as they grow and thrive. We have listened to the needs of large and small municipalities around the province, and we have met with Municipalities Newfoundland and Labrador to determine the best path forward for communities in this province.

Mr. Speaker, through Budget 2013 we have made a commitment to begin discussions with Municipalities Newfoundland and Labrador on a review of the provincial-municipal fiscal framework to ensure that it is sustainable and fair for all municipalities in the province. These discussions will begin this month.

In addition, we will maintain Municipal Operating Grants (MOGs) at existing funding levels for communities under 11,000 residents for 2013 and we have budgeted $22 million to fund a new MOG formula in 2014. This new formula will see most municipalities receiving an increase in funding, and none will see a decrease.

Mr. Speaker, in recognition of the importance placed on infrastructure funding for our large municipalities, this budget includes $25 million to create a new capital works program for the seven municipalities in the province with populations greater than 11,000. These communities are St. John’s, Conception Bay South, Mount Pearl, Paradise, Corner Brook, Gander, and Grand Falls-Windsor.

On top of these new programs, we will also continue funding for the second year of a $130 million capital works program. This investment provides funding for important infrastructure projects across the province.

Mr. Speaker, the Provincial Government is answering the call of towns and communities in Newfoundland and Labrador. We have spoken with mayors from municipalities across the province and they have responded positively to the initiatives in Budget 2013. We are now delivering a full suite of programs which will meet and exceed these needs, and will allow us to sit down for a meaningful and complete review of the provincial-municipal fiscal framework.

Thank you, Mr. Speaker.

2013 04 25                             1:45 p.m.