Mr. Speaker, it is my pleasure to speak to M-242, a motion to examine measures that will improve transportation between the Island of Newfoundland and mainland Canada.
I thank the honourable member raising this important issue and, on behalf of Minister Cannon, I am happy to report that this government will be voting yes on the motion.
This government believes in, is working towards and is helping to build a world-class transportation system that serves all Canadians along with the required infrastructure to support it.
In fact, this government has made substantial investments in Canada’s infrastructure that will benefit all regions of the country.
Look no further than Budget 2006 where we committed $16.5 billion in federal support for infrastructure over the next four years. It’s an unprecedented amount. It includes:
- $900 million in new funding for a Public Transit Capital Trust
- maintaining current funding under existing infrastructure agreements, such as gas tax funding agreements worth $5 billion over five years
- $591 million for the Asia-Pacific Gateway and Corridor initiative and
- Funding for new infrastructure programs for provincial, territorial and municipal infrastructure.
- Since the last budget, we have consulted with provinces, territories, the municipal sector and key stakeholders, on the most effective way to use our infrastructure investments to:
- promote a more competitive, productive economy
- improve the quality of life in Canada’s communities
- achieve tangible improvements in the environment and
- ensure transparency and accountability to Canadians.
A key element of the plan is the Government’s commitment to work toward a comprehensive plan for infrastructure that includes long-term, predictable funding and a fair and transparent provincial allocation for a program envelope to support:
- improvements to the core national highway system,
- large-scale provincial, territorial and municipal projects such as public transit and wastewater management, and
- small-scale municipal projects.
Over the next while, and within the context of our commitment to restore Canada’s fiscal balance, we will set out how we intend to work with partners to put our infrastructure money to work for Canadians.
We will make these investments work because they will enhance our economy and they will also improve the lives of Canadians in general. Not just Canadians in Montreal, Toronto or Calgary, but Canadians from coast to coast to coast. And that includes Canadians living in Newfoundland and Labrador.
The federal government has a constitutional responsibility to maintain transportation services between the island of Newfoundland and the mainland. We will continue to fulfill that responsibility. But in order to do so and as this motion clearly states we must examine specific areas to determine the best way forward.
Let us now turn to some of the specific issues that will need to be examined.
National Highway System and Trans-Labrador Highway
Currently, the south coast of Labrador is isolated from the rest of the North American road network, pending completion of the Trans-Labrador Highway.
Therefore, completing this highway is a top priority for the province.
On December 12, 2005, Newfoundland and Labrador pledged $50 million over five years for the resurfacing of the Trans-Labrador Highway and sought matching funds from the federal government.
Prime Minister Harper indicated this government would support this cost-shared agreement.
It should be pointed out that, in order to ensure accountability to all Canadians, this funding is contingent upon a detailed business case that puts forward the specific proposal and justification for the requested funding.
The province is also constructing a 250-kilometer route from Happy Valley easterly to Cartwright Junction. The project is half complete and scheduled to be finished in Fall 2009.
Completion of this route will mean that the Trans-Labrador Highway will no longer end at Happy Valley and will connect to Newfoundland via the ferry at the Straits of Belle Isle.
It should also be noted that since 2001, the Government of Canada has contributed over $35 million to the province for improvements to the Trans-Canada Highway in Newfoundland.
The issue of the establishment of a fixed link between the Island of Newfoundland and the mainland of Canada has also been raised.
The Newfoundland and Labrador fixed link refers to various proposals for constructing a bridge, tunnel or causeway across the Strait of Belle Isle, connecting the province of Newfoundland and Labrador's mainland with the Island of Newfoundland.
A pre-feasibility study looked at these three concepts. Road and rail modes for transport of vehicles through a tunnel were also assessed.
It concluded that one of the tunnel options, a bored tunnel under the strait of Belle Isle at its narrowest point, is the most technically and economically attractive alternative.
The estimated construction cost of the fixed link would be $1.2 billion according to 2004 estimates and the total development cost would be about $1.7 billion, including escalation and interest during construction. The project would take an estimated 11 years to complete.
The analysis further showed that a fixed link could not be financed privately under normal economic and business case criteria. An infusion of approximately $1.4 billion from public sources would be required to make the proposition attractive to the private sector.
Many business and community leaders in Newfoundland and Labrador and the rest of Canada have spoken out against the project, noting that the economic argument for such a link is not proven.
The province has stated publicly that, in its opinion, the fixed link is a long-term proposition and a national project that will need a significant infusion of financing from the federal government. It is not an immediate priority for the provincial government.
While the fixed link is not a viable option in the short-term to improve transportation to the mainland, we can examine if there is scope for additional work on the Trans-Canada Highway that would improve connections with the province’s airport and ferry terminals.
Turning now to Marine Atlantic Incorporated. Canada’s New Government is committed to stabilizing Marine Atlantic and ensuring that the important services it provides remain safe, efficient and affordable.
After all, Marine Atlantic fulfills Canada’s constitutional obligation to the province of Newfoundland and Labrador to provide a year-round freight and passenger service.
The corporation carries 27 per cent of all passengers, 50 per cent of all freight, and 90 per cent of all perishables entering the province clearly an important transportation link.
Minister Cannon has brought forward a long-term strategy on the future of Marine Atlantic that takes into consideration input provided by stakeholders, the work of the Advisory Committee on the Future of Marine Atlantic, and other studies.
The strategy considers important elements such as a fleet renewal strategy and other issues such as essential service, rates, and funding.
In addition, the Minister has already appointed a new Chair and five directors to the board. Marine Atlantic needs to become innovative in the services it provides to the people of Newfoundland and Labrador.
In light of these activities, the government is confident that the long-term strategy for the revitalization of the corporation including the renewal of its fleet will address the intent of this motion.
The Minister should announce the long-term strategy in the coming weeks.
Turning finally to air transportation. The air industry continues to meet the needs of the residents of Newfoundland and Labrador.
Air Canada and WestJet both operate extensive services to other regions in Canada and both have recently expanded their capacity to serve Newfoundland and Labrador.
In addition, three airlines based in Newfoundland Air Labrador, Exploits Valley Air Services and Provincial Airlines offer extensive regional service within the province.
At present, air carriers provide scheduled service to a total of 21 airports in Newfoundland and Labrador, including several in northern and remote communities. Commercial airports in Newfoundland are expected to handle more than 1.5 million passengers in 2006.
St. John’s International Airport has recorded four years of consecutive growth and now handles more than one million passengers annually. And I understand that traffic at Deer Lake has nearly doubled over the past five years.
Nav Canada is well established in Newfoundland and Labrador and operates an air traffic control centre at Gander, a key facility handling the bulk of air traffic travelling across the North Atlantic.
In addition, Transport Canada has an ongoing commitment to fund the Labrador Coast Airstrips Restoration Program.
The primary objective of the Program is to restore the airstrips along the Labrador coast to ensure the operational capability of the airstrips is maintained at the level necessary to meet Transport Canada Airport Certification requirements.
Since 1983, the Government of Canada has invested close to $15 million in airstrip restoration projects under this program.
Mr.Speaker, as I have outlined, the Government of Canada is committed to ensuring that Newfoundland and Labrador has a strong transportation system backed by investments in public infrastructure.
This commitment has been demonstrated in a number of investments in both transportation and infrastructure. But we cannot rest on our laurels.
Under the leadership of Minister Cannon, we will continue to consult with and listen to Canadians. Together we will strengthen our transportation system so that it remains among the best in the world.
That’s why this government will move ahead to support this important motion we will examine all measures to improve the transportation link between the Island of Newfoundland and mainland Canada.
Not only will this build upon economic, cultural and social opportunities that currently exist in Newfoundland and Labrador, but it will enhance the quality of life for those living in the province, with benefits right across Canada.
Thank you.
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