Department Will Pay Share Of Assistance Program

The Department of Agriculture and Forestry will be paying its share of funds to eligible producers under the national Agriculture Income Disaster Assistance (AIDA) program for the 1999 tax year. The program is cost-shared by the federal and provincial governments on a 60:40 basis and the federal government has yet to announce whether it will be paying its full share or will be pro rating payments for 1999.

Up to now, the provincial department had been making advance payments of 60 percent of both the federal and provincial shares. Payments from the federal share will be reduced until the federal government determines if it will be making full or pro rated payments. Federal officials say pro rating will be necessary if national expenditures under the program exceed federal budget allocations.

"I want to make my department's position on this issue fully understood so that producers will know where they stand and what they can expect to receive," said Agriculture and Forestry Minister Eric Hammill. "We will continue to fully honour our commitment and pay our share."

The minister said he hopes that the federal government will soon be announcing its position.

Under the AIDA program, payments of approximately $8.0 million have been made to producers to date for the 1998 and 1999 tax years. The program will continue for this tax year, and may be continued for another two years subject to agreements by the federal and provincial governments.