Two regional economic development boards established on the island

The economic zone approach to regional development continues to make significant headway as two more Regional Economic Development Boards (REDBs) are established in the province.

Two REDBs were officially launched today when Rear Admiral Fred J. Mifflin, Minister of Fisheries and Oceans, on behalf of Lawrence MacAulay, Secretary of State (Atlantic Canada Opportunities Agency), (Veterans Affairs), and Judy Foote, Minister of Development and Rural Renewal, signed agreements with the Discovery Regional Development Board in Clarenville and the Baccalieu Board of Economic Development Corporation in Carbonear. Today's ceremonies mark the first official launches for economic boards on the island. Four boards were established within the last month in Labrador.

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 boards to support economic development planning and coordination within the zones. REDBs consist of representatives of municipalities, business, labour, community development groups, education and training institutions and other interests in the zone.

"The establishment of regional economic development boards is a progressive step in the evolution of community-based economic development," said Mr. Mifflin. "The regions of our province will now approach development issues from the broad perspective of all regional stakeholders. From here on, with respect to economic initiatives within the zones, the right hand will know what the left hand is doing. The plan these boards create will act as a guide in bringing to bear all the resources of the zone - government, private sector, educational and volunteer - to develop the economy. It will help agencies such as ACOA to decide which industries it should encourage."

"The Discovery Regional Development Board and the Baccalieu Board of Economic Development Corporation both have the distinction of being the first regional economic development boards officially in place on the island portion of the province," said Ms. Foote. "The volunteers on these boards have shown a great commitment to establishing this new structure, and it is exciting to see governments and the boards moving forward together as we now concentrate on actively identifying, prioritizing and implementing new development initiatives in each region. It is a significant step forward in government's plan for economic growth in this province."

Rear-Admiral Mifflin and Ms. Foote took the opportunity of today's event to offer an example of regional economic development at work. The ministers announced $51,502 for the Victoria Community Development Group to develop a living history museum through the reconstruction of a sawmill, forge and cooperage. The facility will take the form of a manufacturing museum which will produce barrels, wood products and iron products to be sold locally to established buyers. The group has already secured a contract with the Newfoundland Liquor Corporation for 750 ml barrels which will be filled with rum and sold as gift items.

Proposals to establish 18 REDBs have already been successfully negotiated. These agreements were negotiated considering the boards' work plan, regional geography, population, number of communities and transportation networks.

Financial support for the economic zone 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: Paul Murphy, COOPERATION Communications, (709) 772-0219.