News Release

Lack of Government Funding Could Jeopardize Harbour Clean-Up

(Thursday, November 1/2001)-- Refusal to date by the Federal and Provincial governments to cost-share on the Harbour Solutions Project could completely torpedo or considerably delay the long-awaited Halifax harbour clean-up, Mayor Peter Kelly said today.

Mayor Kelly said Halifax Regional Council has been waiting for official responses to the proposed cost-sharing formula from Prime Minister Jean Chretien and Premier John Hamm for the past two years. He has written to both leaders today urging them to commit funding to the Project.

The Mayor said federal officials have been much more encouraging in their dealings with the Harbour Solutions Project Team than the Province, but there must be financial participation from both governments if the Project is to move forward in the near future.

An independent Selection Committee recommended to Regional Council earlier this week that HRM enter into negotiations with a consortium known as the Halifax Regional Environmental Partnership to design, build and operate the sewage collection and treatment system. Its bid of $262 million was lower than the only other bid by the Halifax WaterWorks Group and the municipality's Reference Estimate.

Mayor Kelly said Halifax Regional Council has already committed to funding up to two-thirds of the total Capital cost of Harbour Solutions, and it is seeking cost-sharing for the remainder from the Federal and Nova Scotia governments.

He said "This long-awaited Project will not only benefit the Halifax Region. Both the federal and Nova Scotia governments have invested millions and millions of dollars over the years in infrastructure and their own facilities here, and Harbour Solutions can only compliment that investment and considerably enhance our economic development potential."

Mayor Kelly said Regional Council recognizes the financial challenges that the Province of Nova Scotia is facing, but HRM has informed Premier Hamm and his colleagues on several occasions that the Province's funding commitment to Harbour Solutions could be spread out over a number of years.

The Mayor said that it is important to note that the Harbour Solutions Project will generate new taxation revenues for both the Federal and Nova Scotia governments, both during the construction stages and later as a result of annual operating costs.

"Independent revenue forecasts indicate new revenues would amount to $87 million during construction, and $1.2 million annually for operation. If both levels of governments agreed to rebate these new revenues back to the Halifax Regional Municipality, their one-third portion of the total project cost would be generated entirely by the project itself. No new money would have to be taken from existing revenue streams, " he concluded.

Mayor Peter Kelly
(902) 490-4010