Economic zones in Labrador first to establish regional economic development boards

The move towards a new regional economic development structure in Newfoundland and Labrador continues to make progress as three of the five economic zones in Labrador establish their permanent Regional Economic Development Boards (REDBs). In addition, a two-day working session begins today in Hopedale and an REDB is expected to be established along the north coast no later than the end of June, and the fifth zone in central Labrador is expected to be ready to sign an agreement to establish their board next week.

In February of 1995, the Government of Canada and the Government of Newfoundland and Labrador announced a new approach to regional economic development, as recommended by the Task Force on Community Economic Development. This involves the creation of 19 economic zones and the formation of new community-based volunteer organizations to support economic development planning and coordination within each zone.

The establishment of these boards marks a milestone in this process in which the focus of attention now shifts from the creation of new community-based organizations to the action phase of identifying, prioritizing and implementing new development initiatives that will see the regions of the province strengthened economically.

Lawrence MacAulay, Secretary of State (Veterans, Atlantic Canada Opportunities Agency), and Judy Foote, Minister of Development and Rural Renewal, will be in Labrador on May 6 and 7 to sign contracts which will formally establish Regional Economic Development Boards in these zones.

"The Government of Canada, as demonstrated by ACOA's support of this process, recognizes that community-based economic development in Atlantic Canada is essential if we are to improve our way of life," said Mr. MacAulay. "This is particularly true of Newfoundland and Labrador, and with the establishment of Regional Economic Development Boards, you are demonstrating that all stakeholders in community development in rural and remote areas can have a common agenda and work together to achieve common goals."

"Our signatures on these documents represent a new way of doing business," said Ms. Foote. "We are entering into a partnership with development groups, municipalities, business, labour, education and training institutions and other key representatives from the regions of the province to focus our collective resources and energy on those actions and initiatives that have the best opportunity to strengthen every region of the province."

This morning at the Northern Lights Inn in L'anse au Clair, The Labrador Straits Development Corporation became the first regional board in the province to sign a formal contract. This is to be followed in the afternoon with a signing in Cartwright by the Southeastern Aurora Development Corporation covering the area between Cartwright and Lodge Bay. Tomorrow morning, Mr. MacAulay and Ms. Foote will be in Labrador West to enter into an agreement with the Hyron Regional Economic Development Corporation.

Proposals to establish 15 REDBs have already been successfully negotiated. Another has been submitted and will be negotiated within the coming days. These agreements of support were negotiated considering the regional geography, population, number of communities and transportation.

Financial support for this process comes from the Canada/Newfoundland Strategic Regional Diversification Agreement which is administered federally by the Atlantic Canada Opportunities Agency and provincially by the Department of Development and Rural Renewal.

Contact: Dawn Payne, COOPERATION Communications, (709) 724-1004.

1996 05 06         12:15 a.m.