Prince George, B.C. — The Honourable Gary Lunn, Minister of Natural Resources, on behalf of the Honourable Rona Ambrose, President of the Queen’s Privy Council for Canada, Minister of Intergovernmental Affairs and Minister of Western Economic Diversification, today confirmed completion of final steps in an $11 million federal investment to expand the Prince George Airport. This contribution is being matched by a commitment of up to $11 million from the Province of British Columbia, which was announced today by Premier Campbell at the Prince George Airport.

“Canada’s New Government is delivering on its commitment to Prince George,” said Minister Lunn. “The city and surrounding region have experienced hardship from the Mountain Pine Beetle infestation, and our government’s investment of $11 million for the airport expansion offers new economic opportunity for business development and tourism which will strengthen the economy of the Prince George area.”

Funding for the Prince George airport expansion project is being delivered by Western Economic Diversification Canada through the federal Mountain Pine Beetle Program. A commitment in principle was made last January. The required due diligence on the project is now complete and the Contribution Agreement has been finalized.

“Expanding the Prince George airport is part of a comprehensive response to the Mountain Pine Beetle infestation,” said MP Jay Hill. “This airport expansion is important for our region’s economic future and will be critical to ensuring long-term, sustainable economic growth.”

The project will include expansion of the runway from 7,400 feet to 11,400 feet. The Prince George Airport Authority will also purchase a snow-clearing vehicle, make improvements to the airport’s lighting and navigational aids system, and
re-construct taxi D and surrounding apron. The total project costs are
$34.7 million. In addition to the federal and provincial contributions, the Northern Development Initiative Trust will provide a repayable loan of $12 million to the project.

British Columbia is experiencing the worst Mountain Pine Beetle outbreak recorded in Canada. Forecasts indicate at the current rate of spread, 50 per cent of mature pine in B.C. will be dead by 2008 and 80 per cent by 2013. The City of Prince George in the Northern Interior region is situated within the area affected by the beetle infestation.

Canada’s New Government launched a $200 million comprehensive response to mitigate the devastation to B.C.’s forestry sector in January 2007. The federal Mountain Pine Beetle Program is led by Natural Resources Canada, in collaboration with Western Economic Diversification Canada and Transport Canada. The objectives of the Program are to: control the spread of the beetle; recover economic value from infested timber; protect the forest resources and communities; and support economic diversification and infrastructure in affected communities.

Western Economic Diversification Canada is a department of the Government of Canada that works in partnership with the provinces, industry associations and communities to promote the development and diversification of the economy of Western Canada.