News Release Archive

PREMIER--NO INCREASE IN DEVCO COAL ROYALTIES
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The Nova Scotia government will not increase coal production
royalties charged to the Cape Breton Development Corporation,
Premier John Savage said today.

"Despite reports to the contrary, it was never the government's
intention to increase royalties," the premier said. "Given the
financial difficulties facing Devco and the importance of the
coal mining industry to Nova Scotia, any increase in royalties
would be totally unacceptable."

The premier said the government will also maintain Devco's
leasing rental fees at current levels.

"The provincial government, working with Ottawa, Devco and the
union, is committed to finding a long-term solution to problems
facing the coal industry. Coal mining is an integral part of the
Nova Scotia economy and we must all do what we can to make it
remain so, he said.

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Contact: David Harrigan  902-424-6600

trp                 Mar. 19, 1996 - 4:25 p.m.