For municipal capital works and infrastructure, we have put a plan in place that will see

$260 million invested over the next three years. The program will be made up of three components.

Under the Canada-Newfoundland Infrastructure Agreement, cost shared by federal, provincial and municipal governments, $90 million over three years will be invested primarily on green municipal infrastructure projects. Over the full five year term of the agreement, the combined investment in green projects will total $153.7 million.

A traditional Municipal Capital Works Program of $63 million over three years will be cost shared by the province and municipal governments. This component will assist communities with smaller, short term projects.

This year we also are renewing our commitment to a Multi-Year Municipal Capital Works Program, with the provision of $108 million over three years. This will bring our total commitment to the multi-year component since its inception to $214 million. The Multi-Year component will permit municipalities with the capacity to take on multi-year commitments to undertake larger infrastructure projects.

The variable cost sharing guidelines introduced last year will continue to be utilized in determining the municipal share. This ensures that even the smallest communities can access funding for infrastructure and undertake projects they otherwise would not be able to afford.

As part of the Safe Drinking Water Initiative announced last year, government funds the full cost of water disinfection projects up to $100,000 for communities under boil water advisories. Last year, the province invested $8 million in drinking water disinfection projects through the Disinfection Assistance Program. A further $10 million will be spent this year to complete the program. Once new and upgraded infrastructure is installed we expect a significant drop in boil water advisories.

In addition, under the Canada-Newfoundland Infrastructure Agreement $32 million was spent last year for water disinfection or water and sewer projects, more than 90 percent in rural areas. A substantial portion of the $30 million to be spent this year will also go to water projects, particularly water quality and drinking water projects, which are given the highest priority.

A further $1.5 million is being shared by several departments as part of our Safe Drinking Water Initiative. This funding will increase the water testing capacity of the Public Health Laboratory, as well as hire additional environmental health staff and inspectors. We anticipate an almost 25 percent increase in water system sampling. We are implementing phase two of a training program aimed at upgrading the skills of water system operators in communities throughout the province. Part of the overall initiative is to also implement a safe drinking water public health promotion strategy.

Mr. Speaker, our roads and highway construction program for the new fiscal year could total $82.2 million. This follows the last two years, which saw the largest and second largest annual programs since Confederation. The provincial roads component is maintained this year at $22 million, reflecting the priority this government gives to local roads. We are approaching the end of the Roads for Rails funding that has seen some of our highway infrastructure upgraded. We call on the federal government to partner with us to continue much needed investment in our road and highway transportation network.

This year, $23.4 million will be spent for highways and roads in Labrador. Included in this figure is $17 million to complete Phase II of the Trans Labrador Highway. At the end of this construction season the highway will be finished from Red Bay to Cartwright, including access roads to other communities. To upgrade local roads in Labrador, $2.6 million is being invested this year.

In addition to road work in Labrador, $2.2 million will be invested in wharf and ferry terminal upgrades. A further $1.8 million will be spent on the island, of which $1.3 million will be for improvements to the Bell Island wharf.

To enhance the provincial ferry fleet, we will move forward with a vessel replacement and refurbishment program. The first initiative is to complete the refurbishment of Hull 100, which will be a significant addition to the fleet.