Transportation Key to Growth, Says Premier

More spending in transportation infrastructure will continue to be one of the key tools for economic growth, Premier John Hamm said today.

Speaking at a private breakfast meeting with the Industrial Cape Breton Board of Trade, the premier highlighted the government's increased financial commitment to highways and bridges. Over the next three years, he said, the government will add $31 million to the Department of Transportation and Public Works capital budget for highways and bridges.

"Our government has finally reversed a 20-year trend of spending cuts to our highways capital budget," added the premier. "Will this be enough? After 20 years of cuts, of course not. But as a provincial government we are significantly increasing our commitment to road construction."

Premier Hamm noted that he will continue to press the federal government to match the provincial support. Nova Scotia motorists pay $137 million a year to Ottawa in federal fuel taxes, little of which is directed towards the province's road system. The government is presently reviewing the final report of the Canada Transportation Act review panel, which includes a number of recommendations dealing with transportation infrastructure.

The premier also expressed his support for a viable long-term solution to avoid the possible abandonment of the Point Tupper- Sydney rail line. Officials from Nova Scotia Economic Development and from Transportation and Public Works have been meeting in recent weeks with management of the Cape Breton and Central Nova Scotia railway.

"Our government's message is clear: we believe this rail line is strategic infrastructure and we want to work with the company to find a viable long-term solution," concluded the premier. "We have also urged the company not to make any hasty decisions before all the options are fully explored."

Premier Hamm will lead a discussion on transportation next week at the annual premiers' conference in Victoria.