PRIME MINISTER CHRÉTIEN CONFIRMS A $31-MILLION CONTRIBUTION TO CLEAN UP ST. JOHN'S HARBOUR

November 4th, 2002
St. John's, Newfoundland and Labrador

Prime Minister Jean Chrétien, together with Allan Rock, Minister of Industry and Minister responsible for Infrastructure, confirmed the Government of Canada's $31-million contribution to clean up St. John's Harbour. Prime Minister Chrétien and Newfoundland and Labrador Premier Roger Grimes also announced that their governments would sign a formal agreement confirming this commitment within the next six months.

The Government of Canada, through the Canada Strategic Infrastructure Fund, and the Government of Newfoundland and Labrador, will each provide $31 million for this $93-million project. The cities of St. John's and Mount Pearl, and the Town of Paradise have already confirmed their financial participation to the project for up to $31 million.

"The Governments of Canada and of Newfoundland and Labrador have agreed that the clean-up of St. John's Harbour is their top joint infrastructure priority in this province," said Mr. Chrétien. "This partnership between the Governments of Canada and Newfoundland and Labrador, and the local communities to treat the sewage discharged into the Atlantic Ocean will have tremendous benefits for the people of St. John's, Newfoundland and Labrador, and for all Canadians."

"I am pleased to join the Prime Minister, and all of those who have worked to see the plan to clean up the St. John's Harbour become a reality. We are confirming today that we are going to fix this problem together," said Premier Grimes. "Fundamental to this is addressing the health of our residents and tourists. Today's endorsement of the harbour clean up encourages further economic development of our capital city."

The St. John's Harbour Clean-Up Project will involve the construction of a centralized treatment facility on the south side of St. John's Harbour, together with infrastructure for sewage collection and disposal of treated effluent. These initiatives will help prevent further pollution of the Harbour and provide for a world-class sewage system that will be both economical and effective.

Through the $2-billion Canada Strategic Infrastructure Fund, the Government of Canada continues to collaborate with provincial, territorial and municipal governments, as well as with the private sector, to invest in strategic infrastructure projects across the country. Investments made through the Canada Strategic Infrastructure Fund are directed to large-scale projects of major national and regional significance, in areas that are vital to sustaining economic growth and supporting an enhanced quality of life for Canadians.

The Government of Canada has been a long-time and key partner in the renewal and expansion of Canada's vital infrastructure. In the latest Speech from the Throne, it announced a long-term commitment to infrastructure across the country. This commitment was expressed in the following terms:

"Working with provinces and municipalities, the government will put in place a ten-year program for infrastructure to accommodate long-term strategic initiatives essential to competitiveness and sustainable growth."

For more information on the Canada Strategic Infrastructure Fund, the Office of Infrastructure of Canada and its programs, please visit: http://www.infrastructurecanada.gc.ca

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For more information, please contact:
PMO Press Office (613) 957-5555
Carl Cooper Office of the Premier Newfoundland and Labrador (709) 729-3960

BACKGROUNDER "A"

St. John's Harbour Clean-Up

Federal Contribution

The federal investment in the St. John's Harbour Clean-Up under the Canada Strategic Infrastructure Fund (CSIF) will be $31 million.

St. John's Harbour Clean-Up - $93 million

The total cost of the project will be approximately $93 million and will be jointly shared between the federal, provincial and municipal governments. The funding for the program will be broken down as follows:

• Government of Canada - $31 million.
• Government of Newfoundland and Labrador - $31 million.
• Municipalities of St. John's, Mount Pearl and Paradise - $31 million.

Currently, the 120 million litres of untreated sewage from industry, commercial operations and institutions flow into St. John's Harbour each day negatively impacts both the natural habitat of various organisms and those persons in direct contact with Harbour water. The poor state of the Harbour was also reflected in the Sierra Legal Defence Funds National Sewage Report Card in 1999, which ranked St. John's Harbour as the dirtiest in Canada. To facilitate the clean-up of St. John's Harbour, the federal, provincial and municipal governments (St. John's, Mount Pearl and Paradise) will work together to develop a new collection and treatment facility for all the sewage in the St. John's Harbour sewershed prior to discharge of the treated effluent into the Atlantic Ocean. The recommended site for this treatment plant is land located immediately east of the Main Pumping Station on Southside Road. Construction of the facilities and structures needed for the Harbour clean-up project will generate $15 million in Gross Domestic Product and $60 million in tax revenue. In addition to these economic benefits, the clean-up will also contribute to an increase in tourism and commercial activity. As well, the clean-up will vastly improve the environmental impacts of years of spillage of sewage into the harbour. Finally, the clean-up will greatly contribute to the quality of life of the people of Newfoundland and Labrador.

Other Federal Support to the Province of Newfoundland and Labrador for Infrastructure

The federal government's involvement to date in support of infrastructure development in Newfoundland and Labrador has been significant. Under the Canada-Newfoundland and Labrador Infrastructure Program (CNIP), a component of the national Infrastructure Canada Program, the federal government will commit $51.2 million and expects this commitment to generate over $150 million in infrastructure investment for the province. To date, $22 million of the $51.2 million has been committed in Newfoundland and Labrador.

So far, 227 projects, all of which fall under the green municipal infrastructure component of the CNIP, have been approved in Newfoundland and Labrador. These projects include: water treatment and distribution systems or wastewater collection and sewage treatment facilities. These projects represent a total investment of $66.4 million in infrastructure.

In addition, under the $600 million Strategic Highways Infrastructure Program (SHIP), there is an agreement to provide by 2006 $11.5 million in federal funding for national highway system improvement projects in Newfoundland and Labrador. So far, three projects have been announced under this program. They consist of the replacement of existing overpasses in Deer Lake, the construction of an interchange ramp and overpass at Long Harbour Road/Trans-Canada Highway intersection and the construction of an overpass to provide west access to Port aux Basques.

Moreover, the Government of Canada announced in Budget 2001 the $680- million Affordable Housing Program. Under this program, the Government of Canada will work in partnership with its provincial and territorial counterparts to help stimulate the creation of more affordable rental housing across the country.

For more information on the Canada Strategic Infrastructure Fund or the Infrastructure Canada Program, visit the Infrastructure Canada website at: www.infrastructurecanada.gc.ca

BACKGROUNDER "B"

Infrastructure Initiatives of the Government of Canada

In recent years, the Government of Canada has provided a host of funding programs to address provincial, territorial and municipal infrastructure needs. The overall federal investment in infrastructure initiatives totals more than $8 billion. Through partnerships with provincial, territorial, and municipal governments as well as the private sector, investments made through these programs will help leverage significant future infrastructure investments. Here is a brief description of these initiatives:

Canada Infrastructure Works Program -- $2.4 billion (1994-1999)

The Canada Infrastructure Works Program (CIWP) was introduced in 1994 as a short-term solution to the pressing problem of high unemployment during a period of low economic growth. The federal government's total contribution of $2.4 billion has leveraged more than $8.3 billion in over 17,000 infrastructure projects across Canada.

Infrastructure Canada -- $2.05 billion (2000-2007)

The $2.05-billion Infrastructure Canada Program was announced in Budget 2000 to enhance municipal infrastructure in urban and rural communities across the country, and to improve the quality of life for all Canadians through investments that protect the environment and support long-term economic growth. With contribution from provincial, territorial, and municipal governments, as well as with First Nations and the private sector, the Infrastructure Canada Program will generate at least $6 billion in infrastructure investment over six years.

In most cases, the federal government is matching the provincial and territorial contribution, and generally providing up to one-third of the cost of each municipal infrastructure project. Other than the federal share of costs, the remaining funds may come from other sources, including provincial, territorial and municipal governments, the private sector and non-governmental organizations.

The program's first priority is Green Municipal infrastructure, i.e. projects that improve the quality of the environment and contribute to Canada's goals of clean air and clean water. The program's secondary priorities include local transportation infrastructure, cultural and recreational facilities, tourism-related infrastructure, rural and remote telecommunications, high-speed Internet access, and affordable housing.

Recognizing that individual communities know their needs best, the program operates in a "bottom-up" fashion, with the flexibility for municipalities and First Nations to identify their own infrastructure priorities. It also includes provisions to ensure an equitable balance of funding between urban and rural communities.

The Infrastructure Canada Program is governed by agreements signed with each province and territory, and is delivered by federal agencies across Canada:

• Western Economic Diversification Canada (British Columbia, Alberta, Saskatchewan and Manitoba)
• Industry Canada (Ontario)
• Canada Economic Development for the Regions of Quebec
• Atlantic Canada Opportunities Agency (Newfoundland and Labrador, Nova Scotia, Prince Edward Island and New Brunswick)
• Indian and Northern Affairs Canada (First Nations component, Yukon, Nunavut and Northwest Territories)

For more information on the Infrastructure Canada Program, visit the Infrastructure Canada Web site at: www.infrastructurecanada.gc.ca

Green Municipal Funds -- $250 million

The $50 million Green Municipal Enabling Fund and the $200 million Green Municipal Investment Fund are endowments created by the Government of Canada in 2000, and managed by the Federation of Canadian Municipalities, to support energy and water efficiency projects.

The Green Municipal Funds and the Infrastructure Canada Program are two initiatives that complement each other. The Green Municipal Funds support environmental innovation and high levels of performance improvement to develop experience and lower costs, while the Infrastructure Canada Program supports municipal projects with environmental benefits.

In an effort to provide municipal governments with enough flexibility to implement innovative environmental infrastructure projects, arrangements have been made for them to seek funding through both the Infrastructure Canada Program and the Green Municipal Funds, should a proposed project meet the criteria for both programs.

a) Green Municipal Enabling Fund (GMEF) -- $50 million (2000-2007)

The GMEF is a $50-million fund that provides grants to support feasibility studies. Operating from 2000 to 2007, the GMEF expects to support a large number of studies to assess the technical, environmental and economic feasibility of innovative municipal projects. Grants cover up to 50 per cent of eligible costs to a maximum grant of $100,000. The Fund is open to Canadian municipalities and their public-sector or private-sector partners. Applications are accepted each spring and autumn.

Feasibility studies must assess projects that would improve air, water or soil quality, protect the climate or promote the use of renewable resources. The projects must also show potential for significant improvements in environmental performance or energy efficiency by taking a systems approach and focusing on reducing pollution and waste at the source. Applications can be made in the following categories:

• Municipal buildings and facilities
• Energy services and renewable energy
• Water supply, sewage treatment or storm run-off management
• Solid waste management
• Sustainable transportation services and technologies
• Sustainable community planning

b) Green Municipal Investment Fund (GMIF) -- $200 million

The GMIF is a $200-million permanent revolving fund that supports the implementation of innovative environmental projects. It offers the opportunity for a municipality or its partner to borrow at competitive rates for up to 15 per cent (25 per cent in exceptional circumstances) of capital costs of a qualifying project. The GMIF can also provide loan guarantees. Loan payback periods may range from four to ten years.

Projects must add to the national knowledge base on innovative technologies or practices and their regional implementation. They must also generate measurable and verifiable results, both environmental and economic. GMIF expects to support 15 to 20 projects a year. Applications are accepted year-round.

For more information on the Green Municipal Funds, visit the Federation of Canadian Municipalities Web site at www.fcm.ca.

Cultural Spaces Canada Program -- $80 million (2001-2004)

The Cultural Spaces Canada (CSC) program was created in 2001 to improve Canada's cultural infrastructure. Its aim is to contribute to improved physical conditions for artistic creativity and innovation and to increased and improved access for Canadians to performing arts, visual arts, media arts and to museum collections and heritage displays through the improvement, renovation and creation of arts and heritage facilities.

The Program contributes towards the costs associated with the construction, adaptive re-use, or renovation of buildings for arts and heritage activities, specialized equipment purchases or feasibility studies.

Funding is provided to successful applicants of up to 33 per cent of total eligible project costs for construction and renovation of arts and heritage facilities, as well as for projects that transform buildings that were not previously used for cultural purposes into arts or heritage facilities.

The Program provides funding to successful applicants of up to 50 per cent of total eligible project costs for specialized equipment purchases and feasibility studies. The Program does not support regular building maintenance costs.

The following are eligible applicants:

• Non-profit arts and heritage organizations incorporated under Part II of the Canada Business Corporations Act or under corresponding provincial or territorial legislation
• Provincial/territorial governments
• Municipal or regional governments, and their agencies
• First Nations/Inuit governments.

The CSC program is administered under the responsibility of the Minister of Canadian Heritage.

For more information on the Cultural Spaces Canada program, visit the Canadian Heritage Web site at: www.pch.gc.ca.

Affordable Housing Program -- $680 million (2002-2007)

In Budget 2001, the Government of Canada confirmed its contribution of $680 million over five years to a capital grants program to help stimulate the creation of more affordable rental housing.

The final framework was developed and agreed to on November 30, 2001, and includes the following:

• Provinces and territories have the primary responsibility for the design and delivery of the program
• Provinces and territories require flexible programs to address their housing needs
• The initiative needs to create affordable housing for low to moderate income households
• Units funded will remain affordable for a minimum of 10 years
• Provinces and territories will be required to match federal contributions overall.

The Affordable Housing Program falls under the purview of the Canada Mortgage and Housing Corporation (CMHC). As such, the CMHC is in the process of concluding bilateral cost-sharing agreements with the provinces and the territories.

The Minister of Transport is responsible for the CMHC.

For more information on the Affordable Housing program, visit CMHC Web site at www.cmhc-schl.gc.ca.

Strategic Highways Infrastructure Program -- $600 million (2002-2007)

The Strategic Highways Infrastructure Program (SHIP) was created in 2001 to address highway infrastructure needs across Canada. The Minister of Transport is responsible to Parliament for the Program.

Projects funded under SHIP must meet one or more of the following long-term objectives:

• Support trade, tourism and investment in Canada
• Strengthen national unity by sustaining strategic infrastructure investments in all regions of the country to respond to local needs
• Make the Canadian surface transportation system more reliable, efficient, competitive, integrated and sustainable
• Improve the quality of life of Canadians by promoting safer and more environmentally sustainable transportation.

SHIP is two-fold; it has a highway construction component and a national system integration component.

a) Highway Construction ($500 million):

Under the Highway Construction component, $500 million will be available to address the needs of Canada's highways over the next five years.

The Government of Canada will work with the provinces and territories to identify those parts of the National Highway System that need immediate attention due to growing traffic and increasing trade. This will result in a safer and more efficient highway system for all Canadians.

The Highway Construction component of SHIP is governed by agreements signed with each province and territory.

National System Integration ($100 million)

The National System Integration component will fund initiatives that better integrate Canada's transportation system. These include the deployment of Intelligent Transportation System (ITS), improvements to border crossings and better transportation planning. ITS includes the application of advanced technologies for traffic management, traveller information and vehicle control, commercial vehicle and fleet management, public transit and rural transportation.

Provincial and territorial agreements for this component of SHIP are signed on a project-by-project basis, with no pre-set allocation.

For more information on the Strategic Highways Infrastructure program, visit Transport Canada Web site at www.tc.gc.ca.

Canada Strategic Infrastructure Fund -- $2 billion (2002-2007)

In Budget 2001, the Government of Canada announced its intention to provide at least $2 billion in funding for large-scale strategic infrastructure projects that improve quality of life and further economic growth. On March 27, 2002, the Canada Strategic Infrastructure Fund Act received Royal Assent, thereby establishing the Canada Strategic Infrastructure Fund.

The program's main objective is to provide for the funding of large-scale strategic infrastructure projects across Canada that go beyond the capacity of existing programs. The Fund calls for partnerships with municipal and provincial governments, as well as with the private sector, to meet Canada's essential infrastructure needs of the 21st century economy.

The new program will invest in the following areas:

• Highway and Railway Infrastructure
• Local Transportation Infrastructure
• Tourism or Urban Development Infrastructure
• Water or Sewage Infrastructure
• Broadband

The Government of Canada will make a maximum contribution of 50 percent towards the total eligible costs of projects. All projects will be selected under the authority of the Minister responsible for Infrastructure.

For provinces and territories whose population is less than 750,000 people, total eligible project costs must exceed $10 million. This applies to Prince Edward Island, Newfoundland and Labrador, Nunavut, Yukon and the Northwest Territories. For provinces whose population exceeds 750,000 but is less than 1.5 million people, total eligible project costs must exceed $25 million. This applies to Nova Scotia, New Brunswick, Manitoba and Saskatchewan. For provinces whose population exceeds 1.5 million people, total eligible project costs must exceed $75 million. This currently applies to Alberta, British Columbia, Quebec and Ontario.

For more information on the Canada Strategic Infrastructure Fund, visit the Infrastructure Canada Web site at: www.infrastructurecanada.gc.ca

Border Infrastructure Fund -- $600 million (2002-2007)

In Budget 2001, the Government of Canada announced its intention to provide $600 million to support improved efficiency at Canada's borders. The Border Infrastructure Fund is a comprehensive approach towards sustaining and increasing the long-term efficiency of the Canada-U.S. border. It encompasses physical infrastructure, intelligent transportation systems, and helps support analytic knowledge, which will provide decision makers with better knowledge of today's border issues as they pertain to congestion.

In the wake of the events of September 11, 2001, the Government of Canada renewed its commitment to public and economic security by signing a declaration for the creation of a Smart Border for the 21st century between the United States and Canada. The Smart Border Action Plan is supported by four pillars: (i) secure flow of people, (ii) secure flow of goods, (iii) secure infrastructure, and (iv) coordination and information sharing in the enforcement of these objectives.

This Program will be implemented in co-operation with provincial, territorial and municipal governments, academic and research institutes, and with partners from the public and private sectors on both sides of the border to form an integral component of the Smart Border Action Plan.

The two central objectives of the Border Infrastructure Fund are (1) to support the Smart Border Action Plan by reducing border bottlenecks; and (2) to expand existing infrastructure capacity over the medium term to support ongoing economic growth.

In fulfilling these objectives, funding will be largely targeted towards major crossings, such as Windsor, Ontario; Sarnia, Ontario; Niagara Falls, Ontario; Fort Erie, Ontario; Douglas, British Columbia; and Lacolle, Quebec.

The Government of Canada will make a maximum contribution of 50 per cent towards the total eligible costs of each project.

All projects will be selected under the authority of the Minister responsible for Infrastructure based on the following investment criteria:

• Mitigation of congestion;
• Enhancement of system capacity;
• Coordination with adjacent U.S. border facility and road access network;
• Support implementation of the Smart Border Action Plan;
• Enhancing safety and security at border crossings; and
• Leveraging public and private sector funding.

For more information on the Border Infrastructure Fund, visit the Infrastructure Canada Web site at www.infrastructurecanada.gc.ca