Commencement March 23, 1949 | ||
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The Newfoundland Act was an Act of the Parliament of the United Kingdom that confirmed and gave effect to the Terms of Union agreed to between the then-separate Dominions of Canada and Newfoundland on March 23, 1949. It was originally titled the British North America Act 1949, but was renamed in Canada on the patriation of the Canadian Constitution from the United Kingdom in 1982.
In exchange for Newfoundland becoming a province, the Canadian government took over the Newfoundland Railway, Newfoundland Airport (now Gander International Airport), public broadcasting, telegraph services and other services that fell under federal control. The federal government assumed responsibility for Newfoundland's debt.
Newfoundland was also given statutory subsidies, a special subsidy of $1.1 million, the right to enter into tax rental agreements with the federal government and an additional transitional grant of $3.5 million, diminishing by 10 per cent per year for a total of 12 years. Also, as a safety net, it was agreed a Royal Commission would review finances.