|
|||
| Return to 2005 News Releases | |||
|
|
News
Release |
||
|
Revenue generated in Labrador should be reinvested in area February 16th, 2005
|
|||
|
Yvonne Jones, Opposition Labrador Affairs Critic and MHA
for the District of Cartwright - L’Anse Au Clair, says the improved fiscal
position of the province as a result of the new agreement on revenue sharing
gives government the flexibility to establish a Labrador Development Fund
that would allow some of the resource revenue generated in Labrador to be
reinvested in the area. Jones has written the Premier to impress upon him the importance of reinvesting resource revenues generated in Labrador to facilitate economic growth in this area of the province. "One example of the revenue which is generated from resources in Labrador is that gained from the Upper Churchill. On March 16, 2004, the Premier and Minister Ed Byrne announced an agreement on a new five-year contract for the resale of the 130 MW recall block of power that will realize $230 million to provincial revenues over its term. The approximately $45 million annually generated from this source would provide a good basis for the establishment of a Labrador Development Fund." The Liberal MHA says, in light of the improved fiscal position of the Province, it is important that the province send a message to the people of Labrador that this area of the province will now be able to see an increased portion of the revenue generated remain in Labrador. "We already make huge contributions to this province, but our potential is far from being realized and it is now time to invest for the future by investing in infrastructure development for Labrador." Two areas which the MHA identified for investments that would result in future growth for the province were transportation infrastructure and hydro power infrastructure. She says currently these two areas are a major barrier to development. "The transportation infrastructure for Labrador requires major investments. For example, the completion of the Trans Labrador Highway would require the construction of approximately 300 kilometers of new roads. Also, at this point, there are still approximately 1,000 kilometers of unpaved roads which need to be upgraded. Another challenge in terms of infrastructure development for Labrador is the establishment of a distribution system for hydro electrical power. The development of a trans Labrador distribution system would include the construction of an upgraded transmission line between Churchill Falls and Goose Bay." "The benefits of the revenues from Churchill Falls and the mining industry have gone to other areas of the province and now, with the signing of the new revenue sharing agreement based on the Atlantic Accord, it is time to consider establishing a development fund which would see these revenues remain in Labrador to help develop the full potential of Labrador."
|
|||
|
Media Contact: |
|||
