No. H040/04 For release
May 21, 2004
REGIONAL AND REMOTE RAILWAYS TO GET FUNDING
OTTAWA - The Government of Canada, under its commitment to provide reasonable
access to the national transportation system for remote communities, has created
a one-year contribution program to provide $24.4 million in funding for four
remote and regional passenger rail lines across Canada. The purpose of the
program is to ensure the continuation of safe, reliable and sustainable regional
and remote passenger rail services. Transport Canada and Indian and Northern
Affairs Canada will both contribute to the program.
"Continued funding for these rail services is the most cost-effective way
of ensuring that remote communities have access to the national transportation
network," said Transport Minister Tony Valeri. "These services also support
economic activities in the lumber, mining, recreation and tourism sectors and
provide an essential lifeline for isolated communities."
The contribution program will provide funding for passenger services in
Ontario between Toronto and North Bay, and between Sault Ste. Marie and Hearst;
between Quebec and Newfoundland and Labrador connecting Sept-Îles, Labrador
City and Schefferville; and in Manitoba between The Pas and Pukatawagan.
Transport Canada will provide $20 million to the contribution program, while
Indian and Northern Affairs Canada will provide a one-time contribution of $4.4 million to establish a First Nations' railway that would operate
the Ross Bay Junction to Shefferville service.
"Maintaining the railway will ensure that these Aboriginal communities will
continue to have access to services and resources which are available to
Canadians," said the Honourable Andy Mitchell, Minister of Indian Affairs and
Northern Development. "This, in turn, increases access to economic
opportunities which is another step toward closing the social and economic gap
between Aboriginal and non-Aboriginal Canadians."
For the past eight years, Transport Canada has provided funding to remote and
regional passenger rail services that are not provided by VIA Rail. Transport
Canada supports the concept of a third party operation of these rail services,
and continues to explore opportunities to transfer these services to the private
sector, local interests or other levels of government.
The funding will be used in support of operating, capital and start-up
requirements for the four services.
Federal funding for this project was approved through Budget 2004, and is
built into the existing financial framework.
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Contact:
Christina Van Loon
Office of the Minister, Ottawa
(613) 991-0700
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Brian McGregor
Transport Canada
Communications, Ottawa
(613) 993-0055
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