August 14, 2002
Saint Leonard, New Brunswick

Prime Minister Jean Chrétien, together with New Brunswick Premier Bernard Lord, today announced their governments` commitment to completing the construction of a four-lane Trans-Canada Highway (TCH) in New Brunswick over five years, on a 50-50 shared cost basis. The 130 km project is estimated at $400 million.

Prime Minister Chrétien and Premier Lord also announced that their governments will sign, before the end of the fiscal year, a formal agreement confirming this commitment. Moreover the Prime Minister and the Premier announced that their governments have earmarked $270 million on a cost shared basis towards the completion of this project.

"The Governments of Canada and New Brunswick have agreed that the twinning of the Trans-Canada Highway is the top joint infrastructure priority in New Brunswick," said Mr. Chrétien. "My vision is to ensure that the twinning of the Trans-Canada Highway in New Brunswick proceeds as quickly as possible."

"The completion of the Trans-Canada Highway in New Brunswick represents an important investment in a key strategic infrastructure that will help ensure the economic growth and prosperity of New Brunswick," said Premier Bernard Lord. "I am pleased to see that both the federal and provincial governments will be honouring their commitment to build this important trade corridor."

The Trans-Canada Highway is a vital transportation link for New Brunswick and Atlantic Canada. It is the major highway carrying commercial and passenger traffic from New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, to the rest of Canada and to key markets in the United States.

This large-scale highway improvement project will significantly ease traffic congestion, improve the flow of traffic and goods, and enhance safety. It is an excellent example of co-operation between the Government of Canada and the Government of New Brunswick.

"Investments in this key highway infrastructure project will stimulate job creation in the short term and make the economy more productive and competitive in the long term," said Mr. Chrétien.

  BACKGROUNDER

• The Trans-Canada Highway (Route 2) through New Brunswick is approximately 520 km in length from Nova Scotia to Quebec. Approximately 130 kms or 25 % remain to be twinned from two lanes to four.
• The announcement involves a commitment by the Government of Canada and the Government of New Brunswick to complete the construction of the four lane divided Trans Canada Highway in New Brunswick over 5 years on a 50-50 shared cost basis, with $270 million of new investments by the federal and provincial governments being announced today. Current estimated costs of the total project are $400 million. Three major sections of the highway remain to be twinned:

                    30 kilometres from Longs Creek to Pokiok;

                    70 kilometres from Woodstock to Perth-Andover; and

                    30 kilometres from Grand Falls to Aroostook.

• The twinning of the Trans-Canada (Route 2) is a priority for both governments and has several important benefits:
• The Trans-Canada (Route 2) is the main highway linking Atlantic Canada to the rest of Canada;
• Twinning the Trans-Canada Highway will improve trade and tourism by providing better access to markets in central Canada and the United States;
• The project will improve safety and reduce accidents on the route from Fredericton to the Quebec border; and
• Transportation costs and travel time will be reduced by providing a safe and efficient 100 km/hr highway from Halifax, Nova Scotia to the Quebec border.

• The federal and provincial governments are today announcing an additional $270 million investment and a commitment to complete the Trans-Canada Highway in New Brunswick on a cost-shared basis. With its new investment, the federal government’s total contribution to highways in New Brunswick since 1993 will be nearly $675 million.

• The twinning of the Trans-Canada Highway (Route 2) in New Brunswick will proceed as quickly as possible and should be completed in five years.

• Canada and New Brunswick have a long history of working together to improve highways in New Brunswick dating back to 1949 and the building of the Trans-Canada Highway.

• Between 1949 and 1971, the federal government invested $95 million to build more than 500 kilometres on the Trans-Canada Highway in New Brunswick. Today, the Trans-Canada route follows Hwy No. 2 from the Nova Scotia/New Brunswick border to the Quebec border near St. Jacques.

• From 1993 to March 31, 2002, the federal government has committed a total of $540 million to improve highways in New Brunswick through several programs, including the Highway Improvement Program (1987 – 2004), the Strategic Highway Improvement Program (1994 – 1997), the Fixed Link Highway Improvement Program (1995 – 1998), and the Atlantic Freight Transition Program (1995 – 2001).

Strategic Highway Infrastructure Program

• In April 2001, the Government of Canada announced the $600 million Strategic Highway Infrastructure Program (SHIP) to improve Canada’s national highway system. SHIP will provide $500 million for cost-shared highway projects with the provinces and territories.

• Under SHIP, the federal government will provide an additional $14.6 million, to be matched by the province, for a total of $29.2 million to improve highways in New Brunswick.

• Negotiations with the province on SHIP are proceeding well, and Transport Canada hopes to sign and agreement with New Brunswick in the near future

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Contact:                            PMO Press Office
                                        (613) 957-5555

                                         Communications, Office of the Premier
                                         New Brunswick
                                         (506) 453-2144