Ottawa, New Brunswick, Nova Scotia strike deal on Chignecto funding

The federal, New Brunswick and Nova Scotia governments have reached a deal on a major infrastructure project to protect the low-lying Chignecto Isthmus from the effects of climate change.

Ottawa and the two provinces will spend $650 million over the next 10 years to reinforce centuries-old dikes to reduce the risk of flooding in the vital land link between New Brunswick and Nova Scotia.

"My conversations with the premiers were, 'Let's lock in this contribution, let's make sure that the project can begin … and we'll continue to work together as a multi-year project evolves," said federal Intergovernmental Affairs Minister Dominic LeBlanc.

He said the massive price tag was worthwhile given the potentially catastrophic environmental consequences of doing nothing.

"There's a series of rather concerning risks that can be mitigated the faster we go, and I was very happy that the three governments came together to lock in and begin the project."

The isthmus is the only path for national railway, highway, and power and communication lines that connect Nova Scotia to the rest of Canada.

The two provinces had opposed the federal government's proposed funding formula for the project, which would see Ottawa pay 50 per cent of the cost and the provinces 25 per cent each.

"We agreed to this to avoid delays in the important work needed on the isthmus," Nova Scotia Premier Tim Houston wrote in a letter to federal party leaders Thursday, laying out the province's issues ahead of an expected election campaign.

Nova Scotia Public Works Minister Fred Tilley said in a joint news release that the province was getting on board with the plan because of the threat of U.S. tariffs and the need to reinforce interprovincial commerce.

"Protecting Nova Scotia's main connection to the rest of Canada has never been more important as we take action to increase trade between provinces," Tilley said.

"That's why we are taking a Team Canada approach. We're putting the interests of our country first and showing leadership as we unlock our potential."

Ottawa estimates $100 million of goods and services pass through the isthmus corridor daily.

Nova Scotia MLA Elizabeth Smith-McCrossin, whose Cumberland North riding includes her province's part of the isthmus, welcomed the news. 

"We need to start the work and get it done before we have a catastrophic event," she said.