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May 24, 1996
(Development and Rural Renewal)

 

Minister addresses conference

The following is the keynote address by Judy Foote, Minister of Development and Rural Renewal, delivered to "Your Challenge, Your Future: The Strategic Planning Conference of the New Regional Economic Development" on Thursday, May 23 at Hotel Newfoundland

It is a pleasure to address the opening session of this historic conference. Our province is undergoing a revolution in the way we approach regional economic development. For governments; community organizations; business, labour, education and training institutions; and for all of us with a stake in regional economic development; we are - together - forging a new way of developing our communities, our regions and our province.

We are all having to think and act in new ways as we confront the challenges of the 1990s. We are not alone. Communities, private and public sector organizations, throughout the world, are striving to adapt structures and processes to new global conditions, new technologies and new economic forces.

These challenges are accompanied by opportunities. New production methods, new trade opportunities, and a new spirit of entrepreneurship can foster the economic development we all know is within our reach.

Realizing these opportunities will take concerted effort. We cannot succeed in an era of global competition if we do not work together. That, at its heart, is what this new approach to regional economic development is all about - working together. The organizations and individuals involved in establishing provisional boards demonstrated their ability to work together. The volunteers representing organizations and interests on the provisional boards put in an enormous effort in creating new, inclusive organizations throughout Newfoundland and Labrador. I wish to extend my congratulations and thanks to all of you who have contributed so much to making this process a reality

. We have come a long way in the past four years, since the province's strategic economic plan called for the creation of economic zones. They were to enable the people within each zone to develop their own economic plans, pursue joint initiatives and, in partnership with government, to promote the strengths and opportunities within each zone. Even before the strategic economic plan was released, however, community leaders recognized the same thing. The Newfoundland and Labrador Federation of Municipalities and the Newfoundland and Labrador Rural Development Council formed a joint working committee before the strategic plan was released to explore new ways of working together. These organizations responded to the call for economic zones by acknowledging the need for new partnerships.

When the NLFM and NLRDC jointly hosted the "Learning from Ourselves: the Beginning" conference in the Spring of 1993, that was the beginning of a new approach to economic development in our province. That conference, like this one, brought together some 400 community-based, private sector and government economic developers. It highlighted examples of innovative community-based partnerships from which we all could learn.

The Task Force on Community Economic Development, established in March 1994, continued that process. Through public consultation, research and meetings with key stakeholders a document was produced that moved the process forward. The federal and provincial governments endorsed the approach set out in Community Matters: The New Regional Economic Development. Provisional boards continued the process even further; adapting the Task Force recommendations to the conditions and priorities of their zones.

This has not been an easy process. It has required tremendous volunteer effort. Fiscal realities have made it impossible to maintain core funding to long-standing development groups, particularly the rural development associations. The application of the task force principles has required debate and compromise on all sides. But the process has moved forward. The provisional boards have succeeded in developing permanent board structures that truly demonstrate that "one size does not fit all." Individuals, communities and groups with an interest in regional economic development have come together - in many areas for the first time - to organize themselves better to coordinate and integrate development efforts. We are learning to work together better. We are learning from ourselves. The organizational effort is now coming to a close. The transition to a new approach to regional economic development is virtually complete. Ten permanent boards are already in place. Another eight will be up and running by the end of next month - most of them sooner. There is continuity from the provisional board members who have been re-elected to the permanent boards, but there are also new members coming to the table in every zone. Individuals, communities and organizations recognize the importance of board representation and many seats are hotly contested. That is a good thing. The stakes are high in regional economic development and democratic election gives the board members the legitimacy to represent those who elect them.

It also makes them accountable. Even if your organization or interest does not have its own representative on the board, the representatives elected must be accountable to the constituencies - organizational or geographic - that put them there. Developing and implementing a strategic economic plan for the zone will need input and involvement from all the skilled and committed individuals and groups willing and able to contribute.

At this conference you will be discussing the significance of public involvement and organizational cooperation in creating regional strategic plans. As in 1993, I believe we have much to learn from one another in the best ways to design and implement a planning process. This conference includes guest speakers from outside Newfoundland and Labrador, who can bring lessons from elsewhere for us to consider and adapt as we deem appropriate to our own conditions. Speakers from the community or business sectors in our province will speak from their own experience as to what has worked and not worked in their own efforts.

Within our province, lessons learned need to be adapted from one area to another. That is why every Regional Economic Development Board will hold its own strategic planning workshop and design its own strategic planning process. There will also need to be coordination between zones, to ensure that scarce resources are channelled to the areas of the province which have the most potential in certain sectors. In many cases, initiatives in one zone may complement those in another. Dimension stone production in one area may require development of quarries in a neighbouring zone and shipping capacity in yet another. I understand that the chairs of zone boards will be meeting tomorrow evening. This will no doubt establish the initial communication necessary for each zone to maximize its awareness of activities in others.

Getting organizational structures in place and developing strategic planning processes are essential to moving forward with the new approach to regional economic development. Structure and process however must lead to results. If this new approach to regional economic development is to be effective, it must lead to wealth creation and sustainable employment. We must find ways to build on our resources and add value through secondary processing and manufacturing. We must find ways to diversify our economy to create new employment and diminish the boom and bust of over-reliance on primary production. Our natural resources continue to offer tremendous opportunities, but sustainable economic development requires development of competitive advantage through our human resources.

Strategic planning is a tool for achieving economic development, not an end in itself. We cannot put economic development on hold during the planning process. Economic initiatives and activities need to be developed hand-in-hand with the development of economic plans. Most regions and sectors already have well-developed plans which can be reviewed and built upon in zonal planning efforts. Ramea is a good example. Existing initiatives can be integrated in new plans; providing the strengths on which to build. New initiatives, which are deemed to be consistent with the direction the plan is going, should not be held back until the plan is complete.

My priority as minister is to see action! Action in implementing development initiatives consistent with long-term goals, but which produce results sooner rather than later. I want to see our people gainfully employed and working hand in hand with our government to turn around the economy of this province. As the zones move from the transition process to implementation, more emphasis will be placed on action. As a reflection of this, spending under the Strategic Regional Diversification Agreement will increase this year from $4.3 million to $9.3 million.

Even with this increased expenditure under SRDA, we all recognize that choices must be made and priorities must be set. We will not be able to fund all initiatives, no matter how worthy each individual case may be. 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 - jobs that will last beyond a few weeks..

This conference's agenda is meant to reflect the balance between systematic planning and developing viable initiatives within key sectors. Regional Economic Development Boards will need to assess feasibility of initiatives; evaluate alternate uses of resources; and set priorities. They will need to work with the many organizations and interests within their zones to determine the best development opportunities. They will need to make effective use of their staff and the staff of other local organizations to support volunteer effort. .

And they will need to work with government. This conference is as much a learning experience for government officials as it is for those in the community and private sectors. The Task Force on Community Economic Development made several recommendations concerning the role of government. All of them are being acted upon. .

The new administration, under the leadership of Premier Brian Tobin, endorsed the economic zone process during the election, in the Throne Speech and in its subsequent organizational and budgetary actions. We are committed to the economic zone process as the means to support regional and rural development in this province..

A new Department of Development and Rural Renewal has been formed by combining the functions of four formerly separate departments or agencies. We have appointed executive level personnel in my department's regional offices to coordinate government activities related to economic development at the regional level. 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. This regional support structure will be available to work with zone boards and their community-based partners to identify, develop and implement sound economic development initiatives..

The Department of Development and Rural Renewal will play a leadership role for the provincial government in supporting regional economic development. In cooperation with our federal partners on the Strategic Regional Diversification Agreement, we manage the necessary operational funding for the zones, as well as dedicated economic initiatives funding. But if the economic zones process is to succeed, all government departments and agencies with an impact on regional economic development must be active players. That is why our government has established a Cabinet Committee on Rural Revitalization, which I chair. That is why I am encouraging every provincial department and agency to prepare their own plans for how to work with the economic zones. That is why, as recommended in the Task Force report, zone boards and MHAs and MPs should establish constructive working relationships..

Not every department will need staff at the zone or regional level and, in a time of fiscal restraint, there are limited resources to respond to requests for support. But when Regional Economic Development Boards are up and running, departments will have, for the first time in this province, a common reference point to ensure appropriate links are made to local needs. This does not mean that the zone boards will become a buffer between government and communities and groups within the zone. They must not, as this would undermine responsiveness to the needs of the client. But where priorities must be set on a regional basis, the zone boards - based on their strategic economic plans - will be able to provide informed, representative and accountable input on regional goals and objectives.

As minister, I have gone on record to emphasize that these are not government's zones. If this process is to succeed in generating sustainable regional economic development, individuals and groups at the local level must take ownership and responsibility for the development process. But if their efforts are to succeed, they need the support of government. This cannot, and will not, take the form of top-down direction, but of a partnership approach.

These are challenging times for government as well, as we must learn new ways of doing business. Innovation, efficiency and partnership take on real meaning as government departments and agencies strive to maintain or enhance service with fewer resources. Partnerships with the voluntary sector are a key aspect of this.

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.

This is what the economic zones are all about. Working together: within zones; between zones; between zones and government.

I wish you well in your discussions during this conference. There is excellent representation from all regions of our province, and from the community, private and public sectors. There will be many opportunities for networking and sharing lessons and ideas. I look forward to hearing the recommendations and conclusions which come from this conference. We all must work together and learn from each other if we are to realize the opportunities before us. "Your Challenge, Your Future" applies to each and every one of us. Let us face the challenge together, so we, and future generations of Newfoundlanders and Labradorians, can enjoy a prosperous future.


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