NEWS RELEASE

                                                                                       Office of the Official Opposition

June 17, 2010
For Immediate Release

Municipal sector burdened by too many costs says Opposition

Opposition Leader and MHA for the District of Cartwright L’Anse au Clair, Yvonne Jones, says   government needs to act more swiftly and persistently  to help address the growing gap between  services  Newfoundland and Labrador municipalities must deliver and what they can afford. 

The Opposition used today’s Question Period to raise three important issues that are impacting municipalities and compromising their fiscal viability.  Questions focused on the anticipated high costs of meeting the new federal wastewater treatment standards and the provincial waste management guidelines, both of which has created a great deal of concerns for municipalities in this province.

“The issue of treating wastewater in over 660 outfalls in this province is one that is alarming many municipal leaders as they wrestle with the expected costs of construction, as well as the long-term planning, operation and monitoring of these projects,” says Jones. “These municipalities are fearful that unless there is some cost-sharing arrangement put in place, the burden of the taxation will be downloaded to the taxpayers.  The projected provincial cost for this project is estimated to be $3.5 billion over a 30 year period. 

Jones also asked questions on the issue of the provincial waste management strategy which is also causing concern amongst many municipalities as they see another tax burden being shouldered by residents. “Even a small tax increase is a big issue for many of these residents, which is why many of our communities have trouble with collections.

“Overall, municipalities are facing a large cash crunch unless something is done to address these growing concerns.  I also questioned the minister of municipal affairs as to when municipalities can expect a new fiscal arrangement, as has been promised by this government for several years. The government has to understand that this is not something that can be left on the backburner indefinitely.

“Municipalities have a declining tax base, an aging population, increased service delivery and I am urging government to recognize the urgency of addressing these challenges.  Municipalities are the bedrock of our province, meeting many needs of our citizens; and they deserve stronger partnership support from both the federal and provincial governments.”

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Media Contact: 
Kim Ploughman | Communications
Office of the Official Opposition
Tel: (709) 729-4634