The numbers in the article don't add up.

20 occupied houses multiplied by $270k each equals $5.4 million. 

Government claims relocation will save $3.8 million over 20 years.

Why would the debt ridden provincial government write cheques for $270k for properties with a market value a mere fraction of that?

The obvious solution is for the provincial government to issue a notice informing outport residents that all services will be terminated in 2039.  No up front layout of cash required and lower overall cost. Very few of the current residents will be alive 20 years from now so it will not impact them at all.