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April 15, 1996
(Development and Rural Renewal)


Minister addresses annual meeting of Newfoundland and Labrador Rural Development Council

The following are speaking notes for Judy Foote, Minister of Development and Rural Renewal, to the Newfoundland and Labrador Rural Development Council 27th Annual General Meeting held at Hotel Gander, April 13, 1996:

Let me say from the outset how pleased I am that my first speaking engagement as Minister of Development and Rural Renewal is to this particular group. You have played a very significant role for the past 27 years in improving the lives of those of our people who live in rural Newfoundland and Labrador and it is my fondest hope that you will continue to do so.

I understand that during the election campaign you met with Premier Tobin and expressed concern about the length of time it was taking to get the economic zones operating. I understand as well that your concern centred around the fact that you felt there would not be any economic development taking place in rural Newfoundland and Labrador until zone boards and plans were in place.

I am here to tell you that your concerns did not fall on deaf ears. Not only am I here to tell you that, but I am proof that your concerns were heard. It has been less than a month since Premier Tobin appointed his Cabinet, a Cabinet in which he included a position with sole responsibility for development and rural renewal. And, to give you an idea of just how important the premier views this department, he has appointed me to serve on the Planning and Priorities Committee of Cabinet, the Economic Policy Committee and Treasury Board. In addition to that, he established a Cabinet Committee on Rural Revitalization, which I chair. If you have any doubt about our government's commitment to rural Newfoundland and Labrador, I hope that the measures that have been taken to ensure that the revitalization of the rural areas of our province are front and centre have dispelled any such doubt.

Further proof of our government's commitment to rural Newfoundland and Labrador is evident when you consider that my department has the responsibility for administering the employment programs of government, including, along with Human Resources Development Canada, all of the federal/provincial employment programs. And here I want to say, from the meeting that both my deputy minister and I have had with federal officials to date, I sincerely believe there will be a new level of cooperation among the two levels of government that will translate into a working relationship where looking after the interests of rural Newfoundland and Labrador will be a priority. The integration of what was Enterprise Newfoundland and Labrador, the Employment Branch of what was the Department of Employment and Labour Relations, the programs of what was the Economic Recovery Commission and the Crafts Division of the Department of Tourism, Culture and Recreation, are now combined in a single department of government mandated to revitalize all regions of Newfoundland and Labrador, with particular emphasis on the rural areas. The financial resources, client services and programs that have been brought together under my direction will be powerful tools in meeting this objective. This is yet another indication of our government's commitment to the rural areas of our province.

Like you, I believe that the zonal process is taking too long. Like you, I do not want to see economic development in this province stifled while we work through the negotiations that come with establishing first, a provisional board, and then the permanent structure. Like you, I want to see action! I want to see our people gainfully employed and working hand in hand with our government to turn around the economy of this province.

Our new government is committed to a planned, but pragmatic, approach to long-term economic development.

This approach must involve partnerships to maximize results. It must involve consultation to maximize consideration of all perspectives and to achieve a shared commitment.

A VISION FOR THE FUTURE

Any plan - for a business, for an organization, for a society - must begin with a vision. We articulated that vision in our campaign document: "Ready for a Better Tomorrow."

That vision, and our plan to realize it, was re-stated and expanded upon in the Speech from the Throne.

It is a vision to realize maximum benefits from our resource industries.

It recognizes the opportunities created by the new economy.

It values the contribution of our people to creating wealth.

It expresses our commitment to renew the economies of our rural areas and to meet the special needs of Labrador.

And, it renews our commitment to social policies which achieve greater fairness and opportunity for all our people.

FISCAL REALITIES AND PUBLIC INVOLVEMENT

To realize this vision, we cannot afford to ignore the economic fundamentals.

To face the challenges, and realize the opportunities, we must take an honest assessment of fiscal realities.

The budget consultation process promised by Premier Tobin during the election campaign, and which was recently concluded, is about making choices and setting priorities. We must make every dollar count. In other words, we must spend smarter. We must target spending on the activities and services which provide maximum benefit for dollars spent.

But no longer can we allow decision-making to occur in isolation from the people affected.

Consultation does not mean tough choices won't be necessary. They will be. But now, when we bring down our first budget, it will have the benefit of input directly from the people and organizations often left outside the decision-making loop in the past.

Our economy has changed; so too must our institutions and decision- making processes.

THE NEW REGIONAL ECONOMIC DEVELOPMENT

No element of our policy agenda speaks more clearly to this commitment than the establishment of regional economic zones in Newfoundland and Labrador.

First called for in the Strategic Economic Plan, but then fleshed out in an extensive consultation process by the Task Force on Community Economic Development, "the New Regional Economic Development" is happening. Our government is committed to helping it happen, by supporting the tremendous volunteer effort involved, and by ensuring that all government departments and programs respond to the needs of the zones. Through this approach, public policy for economic development will focus sharply on the distinct regions of the province.

The NLRDC and its member Rural Development Associations have been an integral part of the New Regional Economic Development. The NLRDC partnered with the Newfoundland and Labrador Federation of Municipalities before the Strategic Economic Plan was released, in critically reviewing the historical approach to community economic development. Both organizations recognized that rural and urban communities alike had to learn to work together more effectively to maximize development opportunities.

The NLRDC called for the creation of an independent task force to examine the many government and non-government organizations that had evolved to support community economic development. While the task force was mandated to make recommendations on the non-government sector only, we all know that the consultation process said as much about the way government supports community development as it did about the community- based organizations themselves.

That is why the creation of Regional Economic Development Boards and the negotiation of Performance Contracts between government and community groups changes the way government approaches economic development as much, if not more, than the way community groups operate.

Rural Development Association representatives have been key participants in the provisional board process. Thirty-nine RDA representatives served on the provisional boards; 18 per cent of the total representation. This was second only to municipalities at 19 per cent.

These representatives have come to the table with many players from other sectors of the community. If our collective efforts to generate sustainable economic development are to succeed, they must bring together development groups, municipalities, business, labour, education and training institutions, and other interests appropriate to the regions of this province.

In some areas, this has brought new players to the table; many of whom have been on a steep learning curve. In some areas, rural and urban areas have had to learn to work together for the first time.

The new approach to regional economic development recognizes the need for an integrated approach to economic development. Some areas have worked this way for years. For others, this has required communications between groups and communities to be opened up for the first time.

Many have said this process should have been started years ago, to build the partnerships between RDAs, municipalities and other community- based groups. Hindsight is 20-20. What is clear - today - is that all institutions are having to learn to operate in new ways. What we need to do - together - is to maintain the progress of the New Regional Economic Development, while finding ways to address legitimate issues during the transition process. In particular, economic development cannot and will not be put on hold while the process continues to unfold.

Completing the transition process from Provisional Boards to permanent Regional Economic Development Boards and moving aggressively to the implementation stage is my priority as Minister.

In this regard, I am confident that the transition process is quickly coming to completion, and that we have effectively bridged the gap between the old and the new approach to regional economic development. Sixteen Provisional Boards have submitted their Performance Contract proposals; fourteen have been successfully negotiated and five Regional Economic Development Boards are already in place. By late May, when the Strategic Planning Conference takes place in St. John's, I expect that all but one or two boards will be up and running and developing their strategic plans, and that the positive progress made by these boards will stimulate the remaining zones to bring their own areas to a similar stage of action as quickly as possible.

I firmly believe and expect that Rural Development Associations will play a key role in developing strategic economic plans in the zones, and participating as active partners in their implementation. Most, if not all, zones will provide direct involvement by Rural Development Associations on the zone boards.

Even if your own particular organization is not directly represented on the boards, it is imperative that you contribute to the development of the strategic economic plan for your zone. The Regional Economic Development Boards cannot, in and of themselves, implement all of the initiatives identified in the strategic economic plan. My position is that the primary role of the boards will be to coordinate and integrate existing organizations and activities; not replace them. Similarly, it is intended that strategic economic plans will build upon and integrate existing plans and initiatives; not start from scratch.

Furthermore, we cannot and should not wait until strategic economic plans are developed and Performance Contracts negotiated, before we fund economic initiatives.

I understand that some concerns have been expressed regarding the project assessment process under the Strategic Regional Diversification Agreement. I am here to listen; to learn; and to act on what I hear.

As strategic economic plans are being developed for each zone, I encourage community-based groups to work with Regional Economic Development Boards to identify viable economic initiatives and proceed immediately to seek the support necessary to implement them.

We all recognize that priorities will have to be set and choices will have to be made on a regional basis. Because fiscal resources are scarce, we will not be able to fund all initiatives, no matter how worthy each individual case may be. This means that community-based groups, zone boards and governments must work together to combine available resources and expertise to ensure that the initiatives we target are grounded on solid business principles and lead to strong economic growth and job creation.

A NEW DEPARTMENT; A NEW APPROACH

For long-term economic development to be achieved, in urban and rural areas alike, government must form partnerships with the people to whom it is accountable. I am on record as saying that these are not government's zones. For the zones to work, those of you gathered here today, and other groups and associations, must assume ownership.

To help you, we have appointed executive level personnel in my department's regional offices, to coordinate all government activities at the regional level. More emphasis will be placed on regional development and business support activities. It is also my intention to decentralize the program activities that have traditionally been delivered from St. John's. As an example, the inclusion of the Employment Branch of the former Department of Employment and Labour Relations within the Department of Development and Rural Renewal provides an opportunity to have employees from that branch serve in the regions, thereby ensuring that employment programs will be integrated with regional strategic economic plans.

I fully intend to strengthen decision-making within our regional offices, and provide the necessary resources to meet the needs of the client in a decentralized way. The department's business support programs will emphasize all aspects of business development. Financial support will remain an important tool for business development, but new approaches will be utilized to maximize community and private sector venture capital contributions. In this regard, we will be considering innovative funding mechanisms, such as the concept of a Community Capital Corporation as outlined in the Task Force on Community Economic Development Report.

Innovative business financing will be only one facet of an integrated business support program, including greater emphasis on business training, mentoring, network development and other pro-active approaches to economic development. Our department will also take the lead in key diversification efforts in small-scale manufacturing and craft development.

This regional support structure will also be available to work with zone boards and their community-based partners to identify, develop and implement sound economic development initiatives.

We are committed to a new way of doing business, to ensure that the revitalization of rural Newfoundland and Labrador becomes a reality. As partners, we can succeed, and success will breed even more success.

All government departments and programs must also support the development of strategic economic plans. They must partner with zones in implementing the plans through performance contracts. And they must coordinate their programs and services to ensure there is no overlap or duplication and achieve a more effective approach to economic development. This will be achieved through the Cabinet Committee on Rural Revitalization.

The SRDA is the principal funding mechanism in support of the zone boards, and a key source of funds for economic initiatives, but it is not the only source.

The Cabinet Committee on Rural Revitalization will ensure also that Cabinet decisions consider the implications of all policies on rural areas. Our government has committed all departments and agencies to review their activities and programs to determine how best to support the development and implementation of strategic economic plans in the zones. An integrated approach to economic development demands that government integrate its activities also.

When the Department of Industry, Trade and Technology leads investment prospecting efforts in the future, for example, it will be informed by the plans and priorities of the zones. We must match the local strengths and goals of regions with the global opportunities which are increasingly within reach of rural communities.

Experience has clearly shown that economic development, particularly in the global economy, must be rooted in competitive advantage forged within regions that bring together companies, people and institutions that work together.

We must target our business development efforts at the sectors which have the greatest promise, based on local strengths and global opportunities;

We must tailor our infrastructure development to the needs of those sectors;

We must gear our education and training efforts towards those activities identified as having strategic advantage for long-term development; and

We must build on the regional identities and values which define us as a people and link them to wealth creation and business development.

Businesses, development groups and communities must develop partnerships within the zones, to maximize the benefits of scarce resources.

There must also be partnerships between zones. Neighbouring zones must develop plans which build on opportunities for partnerships and joint ventures.

Once zone plans are in place, moreover, government will have - for the first time - a clear reference point to determine the vision, goals and objectives of every region of our province. This will feed into our own planning and program development.

We will still require a provincial vision and plan, but it will be informed by the strategic strengths and opportunities identified in every region of our province.

A NEW APPROACH FOR RURAL NEWFOUNDLAND AND LABRADOR

With these changes, at the community and government levels, we have the opportunity to channel our collective resources and energies in a way that can bring our province out of the underdevelopment that has characterized us in the past.

Regional Economic Development Boards will provide the basis for communities and community-based organizations and interests to focus strategically on long-term development opportunities. By working together, you will be able to target the initiatives and resources that have the best chance of revitalizing your communities. By negotiating Performance Contracts with government, you will be able harness our resources in a way that matches your needs.

THE WAY FORWARD

We truly are at a new point in regional economic development in this province. The goals of the rural development movement; the principles articulated by the Task Force on Community Economic Development; the desire of all Newfoundlanders and Labradorians to provide a prosperous future for our children, at home - unite us as never before.

Translating goals and principles and desires to reality is never easy. Our government's commitment to consultation, partnership and action is, I believe, the opportunity to make the revitalization of our rural communities and the development of all our regions a reality.

We are on the threshold of resource development and diversification into new sectors as never before. My department, and our government, are committed to work with you in implementing the initiatives necessary to realize these opportunities. If your Associations require assistance in developing business plans, our regional staff will be there to help. As the Regional Economic Development Boards embark on the strategic planning process in the coming weeks, they will need your experience and expertise.

This must be a true partnership.

Let us work together. The challenge is great but the reward will be a prosperous Newfoundland and Labrador. I look forward to working with you to make it a reality.

1996 04 15         12:45 p.m.






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