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Budget Speech


INFRASTRUCTURE FOR THE FUTURE

Municipal Capital Works Program

Mr. Speaker, in the budget last year, we announced a three year strategy for development of municipal infrastructure. Since that time, we have also reaffirmed our commitment to the St. John's Harbour clean-up, a $93 million project being undertaken in partnership with St. John�s, Mount Pearl, Paradise and the federal government.

The Canada-Newfoundland and Labrador Infrastructure Program will see $90 million invested in the three year planning horizon. Projects targeted at clean drinking water will continue to receive priority. The total investment will exceed $153 million during the five year life of this program.

Under the Municipal Capital Works Program, an estimated $21.5 million will be cost-shared by the Provincial and municipal governments in 2003-04. The total expenditure over the three year period will exceed $60 million.

Under our Multi-Year Capital Works Program, we have committed to cost-share a total of $103 million with 13 larger municipalities. Total expenditures under this program could reach $110 million upon full implementation.

We are also continuing to make capital works funding accessible to all communities in the Province. For our smaller communities, the Province is prepared to cover a larger share of costs so that they can undertake projects they otherwise find unaffordable.

Municipal Debt Relief Program

Since it was established in 1997, the Municipal Debt Relief Program has provided $47 million dollars in debt relief to152 towns. The program assists those towns which, due to declining populations, experience difficulties with their annual debt repayments. During the new fiscal year, government will review the financial position of the remaining 28 municipalities who have indicated they are unable to repay their debt due to determine if additional debt relief assistance is warranted.

Roads and Highways

This government has presided over the largest annual road and highway construction programs since Confederation. With the Roads for Rails funding coming to an end, we need a renewed federal partnership to continue the upgrading of our transportation network.

We are anticipating a construction program in the coming year totalling $74.3 million. The provincial roads component will receive an additional $1 million, bringing it up to $23 million. Improvements to the Trans Canada Highway are funded at $15 million under the federal-provincial Strategic Highways Infrastructure Program. Roads for Rails will complete three projects at a cost of $9.6 million.

Ferry Replacement Program

We committed last year that we would examine options for replacing older ferries. In the initial phase of this program, we will consider replacing the Hamilton Sound, a swing vessel for the fleet now nearing the end of its useful life. Over the next few months, we will issue an Expression of Interest to determine the level of interest that exists from industry to supply a new vessel. This will be followed by a Request for Proposals so we can consider which vessels might be best suited as a replacement. We are prepared to consider any reasonable scenario for the supply and operation of vessels, including public-private partnerships.

Trans Labrador Highway

In the budget last year, we gave a commitment to commence Phase III of the Trans Labrador Highway from Cartwright to Happy Valley-Goose Bay. We stated last year that the people of Labrador had waited long enough for a highway. That wait is about to come to an end. For the coming year we have allocated $26.2 million to construction of the Trans Labrador Highway, including $17 million to begin Phase III. Commencing construction is now only contingent on the project being released from environmental assessment. The balance will be used to complete Phase II.

Connecting Communities to the Trans Labrador Highway

This government wants as many communities as possible connected to that highway. Last year, we went beyond the original plan to announce a road to the community of Pinsent�s Arm, which will be completed in the new fiscal year. We will also begin an environmental assessment of the route for a road to Williams Harbour.


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