GC No. 031/07
For release October 11, 2007

CANADA'S NEW GOVERNMENT AND PROVINCE OF B.C. TO SUPPORT HIGHWAY IMPROVEMENTS NEAR VANDERHOOF

VANDERHOOF, BRITISH COLUMBIA — Canada's New Government and the Province of British Columbia will contribute up to $1.05 million for highway improvements near Vanderhoof, British Columbia. The improvements include a 2-km auxiliary passing lane, and intersection improvements on Highway 16, approximately 68 km east of Vanderhoof. Highway 16 is the only direct link of the National Highway System to the Asia-Pacific Region through the Port of Prince Rupert and is also the primary east/west route through Northern B.C. It links communities to Prince George and lies in the heart of pine beetle-impacted forests.

Canada's New Government and the Province of British Columbia will contribute up to $1.05 million for the project. The contribution is part of the estimated total project cost of $3.1 million and comes from a $44-million federal commitment to fund transportation infrastructure projects through the Mountain Pine Beetle Program under the Asia-Pacific Gateway and Corridor Initiative (APGCI).

Richard M. Harris, Member of Parliament for Cariboo-Prince George, made the announcement today on behalf of the Honourable Gary Lunn, Minister of Natural Resources.

"Canada's New Government is responding to the needs of the community of Vanherhoof by working with the province and our industry partners to combat the negative impact of the beetle," said Mr. Harris. "We are taking concrete action to improve the quality of life for area residents, enhance safety and maximize the efficiency of these important trade routes."

"Vanderhoof is among several communities that have been affected by Mountain Pine Beetle infestation, which has caused economic and environmental consequences across the province," said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "This project demonstrates that our government is providing support to affected communities by creating jobs and stimulating economic development."

"Ensuring the highway between Vanderhoof and Prince George received upgrades has been a top priority for me over the past two years," said Prince George-Omineca Member of the Legislative Assembly John Rustad. "I'm very pleased to see the federal government providing support for a project our government believes is important."

The Government of Canada is committing $200 million to deliver the Mountain Pine Beetle Program, a comprehensive response to the mountain pine beetle infestation. Earlier this year the Government announced almost $25 million to slow the spread of the beetle into Alberta and protect communities along the eastern B.C. border.

Another $39.6 million was announced in June to support the efforts of British Columbia to combat the spread of the beetle, protect communities and forest resources in affected areas and support long-term economic stability in forest-dependent communities.

The APGCI is a national initiative that will contribute to Canada's economic competitiveness, while also benefiting communities through which increasing volumes of trade must move. In its first eight months, APGCI projects valued at $2.2 billion were announced across all four western provinces, including a federal contribution of almost $800 million.

For more information about Canada's Asia-Pacific Gateway and Corridor Initiative, please visit www.apgci.gc.ca. A backgrounder with further information is also attached.

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Backgrounder

ASIA-PACIFIC GATEWAY AND CORRIDOR INITIATIVE PROJECTS FUNDED UNDER THE FEDERAL RESPONSE TO THE MOUNTAIN PINE BEETLE INFESTATION

The Asia-Pacific Gateway and Corridor is a network of transportation infrastructure including B.C.'s Lower Mainland and Prince Rupert ports, their principal road and rail connections stretching across Western Canada and south to the United States, key border crossings, and major Canadian airports. The network serves all of Canada, and the Asia-Pacific Gateway and Corridor Initiative (APGCI) aims to take advantage of Canada's strategic location, at the crossroads between the North American marketplace and the booming economies of Asia.

Prime Minister Harper launched the APGCI on October 11, 2006 and Canada's New Government has committed an investment of more than $1 billion to this national initiative. The APGCI brings infrastructure, policy, governance and operational issues together into one integrated, multi-modal, public-private strategy.

Through the Federal Response to the Mountain Pine Beetle Infestation, an investment of $44 million is being made towards APGCI-related surface transportation projects with the goal of enhancing the economic base of impacted communities through economic development and infrastructure projects aimed at encouraging the long-term stability and diversification of economic activity in these communities.

In an era of rapidly moving and integrated global supply chains, policies and investments must consider entire transportation systems—systems that connect, for example, Asia with North America's economic heartland.

The Government of Canada's contributions to APGCI projects will improve the transportation system by:

• increasing transportation capacity;
• reducing congestion at key locations for Asia-Pacific trade;
• improving connections between modes; and
• enhancing its efficiency, safety and security.

The federal contribution to the project is conditional on the Province of B.C. providing agreed funding and meeting all applicable federal and provincial requirements, including environmental assessments, regulatory approvals, completion of due diligence, contribution agreements and final project approvals.

The Government of Canada's investments will continue to promote increased investments by the private sector and other public sector partners to ensure efficient and seamless connections between the various modes of transportation and improve traffic flows for international cargo.

October 2007