Municipal and Intergovernmental Affairs
March 24, 2015

The following statement was given today in the House of Assembly by the Honourable Keith Hutchings, Minister of Municipal and Intergovernmental Affairs:

Investments in Infrastructure Strengthening Communities

Mr. Speaker, I am pleased to rise today in this Honourable House to speak to the substantial infrastructure investments this government has made in communities throughout Newfoundland and Labrador.

Our commitment was demonstrated when the Department of Municipal and Intergovernmental Affairs introduced new cost-share ratios in 2008. The revised formula freed up monies for communities to invest in other programs and service delivery areas. It means that towns with populations less than 3,000 only pay 10 per cent toward their approved infrastructure projects with the province covering the remaining 90 per cent. Towns with populations greater than 3,000 but less than 7,000 pay 20 per cent with government paying 80 per cent. And for towns with populations exceeding 7,000, the province pays 70 per cent and the town pays only 30 per cent.

Mr. Speaker, since these ratios were implemented, for every $1 municipalities invest, the Provincial Government invests between $1.5 to $6.6, depending on a municipality’s population. Lower contributions for our municipalities make infrastructure more affordable for them and may mean they don’t need to borrow or incur debt to finance their share. In fact, since 2006 municipalities debt service ratios have decreased on average by 10 per cent.

Since 2008, the Provincial Government has approved in excess of $820 million in municipal capital works projects resulting in improvements to drinking water, waste water systems as well as recreational infrastructure. Just this past year, the Department of Municipal and Intergovernmental Affairs committed to a $200 million three-year capital works program for new municipal infrastructure projects. When federal and municipal contributions are included, the total investment since 2008 is in excess of $1.3 billion.

In addition, the new Building Canada Fund will provide approximately $349 million in federal funding to the province over the next 10 years. When combined with provincial and municipal cost sharing, the total investment from this fund in provincial and municipal infrastructure is expected to be between $800 million and $1 billion in additional investment.

Mr. Speaker, the department has received in excess of 80 applications for the new Building Canada Fund. We are currently in the process of assessing these applications and expect to submit proposed projects to the Federal Government in the coming months.

Our government recognizes that investing in infrastructure promotes economic development and supports the provincial economy. We continue to work collaboratively with communities throughout the province to advance their infrastructure priorities recognizing that there is more work to do to support our communities and residents and provide them with modern and reliable infrastructure.

Thank you.

2015 03 24                             1:45 p.m.