The Gallant government is prepared to assume ownership of the New Brunswick Naval Centre in Bas-Caraquet and invest up to $38 million to keep it afloat.

Some of that money would have to come from the federal government, said Victor Boudreau, the minister responsible for the Regional Development Corporation, at a news conference Saturday.

"Jobs are our number one priority and creating opportunities for New Brunswickers to work is important," he said.

Jobs are our number one priority and creating opportunities for New Brunswickers to work is important. — Victor Boudreau

"There is still merit to this important infrastructure project and the provincial government is willing to take over the New Brunswick Naval Centre to ensure it is completed."

Under the proposal, the provincial government would take over ownership and management of the naval centre, which was incorporated as a private company by the town of Caraquet and the village of Bas-Caraquet, and all its assets for $1.

$28 million for renovations

The government would complete the original $10 million committed to the infrastructure project, and seek a partnership with the federal government to invest another $28 million to renovate and repair the u-wharf, slip and travel lift, as well as complete the dry dock.

The government also said it would settle liens and outstanding debts. Three firms have filed liens against the centre for unpaid bills totalling more than $1.5 million.

The deal also requires the municipalities of Bas-Caraquet and Caraquet to honour their commitment to provide $80,000 each in funding each year for the next 10 years.

Still needs approval

"Through the Northern New Brunswick Economic Development and Innovation Fund, the province is willing to invest further funds to complete the project, providing all conditions presented to the centre's board of directors are met and the federal government provides financial support," Boudreau said.

The deal still needs to be approved by the municipalities of Caraquet and Bas-Caraquet, as well as the Naval Centre's board of directors.