Provincial statement on recent arbitration decision

The province of Prince Edward Island will not appeal a recent arbitration decision (Haras Management et. al) related to due compensation for property expropriated at 271 Cornwall Road for the Trans-Canada Highway extension project.

The Department of Transportation, Infrastructure and Energy negotiated in good faith and respects the property owner’s right to appeal, which they chose to do. In her decision, Justice Matheson reviewed both parities’ appraised value of the property and effectively split the difference. The property owners will receive compensation $230,000 less than their requested asking price.

This judicial decision will not affect the continued work of the Trans-Canada Highway extension. Justice Matheson’s decision is specific to the property at 271 Cornwall Road, its associated features and the costs for the business to relocate.

This is the first time Prince Edward Island’s Expropriation Act has been tested in arbitration. Going forward, the department will undertake a comprehensive review of the Act to ensure it is thorough.

The province of Prince Edward Island recognizes its responsibilities to the taxpayers of Prince Edward Island. The Trans-Canada Highway extension builds on the ongoing investments by Government in our provincial infrastructure in order to foster economic growth, provide access to resources and markets and allow for the safe, efficient transport of people and goods. It is anticipated to create over 500 jobs and generate $40 million in Gross Domestic Project within the provincial economy during the construction phase.

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Media contact:
April Gallant