The Great Northern Peninsula Development Corporation (GNPGreat Northern Peninsula Development Corporation receives $1 million for aquaculture in Daniel's Harbour

DC) will continue to build on its success in the aquaculture sector by taking its research in Arctic Char farming to the pre-commercial stage. Funding in the amount of $1 million is being provided under the Canada/Newfoundland Strategic Regional Diversification COOPERATION Agreement.

Today's announcement was made by Gerry Byrne, MP - Humber-St. Barbe-Baie Verte, on behalf of Lawrence MacAulay, Secretary of State (Atlantic Canada Opportunities Agency) (Veterans Affairs), and Judy Foote, Minister of Development and Rural Renewal. Mr. Byrne and Ms. Foote made the announcement in Plum Point during the ceremony to officially mark the establishment of the two Regional Economic Development Boards in the area.

"Aquaculture in the province is showing tremendous growth potential. Over the long term, this project will help diversify the economy of this entire region. GNPDC's role has been that of a catalyst and industry advocate," Byrne said. He also noted that this project is an example among many of how non-profit economic development groups like rural development associations can help make a difference. "It's a great example of how new ideas, which can not yet attract private investment because of uncertainty, can become commercially viable by non-profit economic agencies."

The GNPDC will establish a land-based, recirculation facility for the production of Arctic Char in Daniel's Harbour. Research and development work has shown that char can be grown to market size and that the site has an adequate supply of quality ground water. It is expected that the success of this project will support the development of the industry through the establishment of an independent and private- sector led grow out operations in the region. A minimum of five full time technical positions and three part time/temporary positions will be created with the implementation of this project.

"The aquaculture industry has been identified as an area of significant economic potential for the Great Northern Peninsula," said Ms. Foote. "The Great Northern Peninsula Development Corporation has identified that potential and is partnering with both levels of government to maximize benefit to the region. This project is an example of how the dedicated efforts of community-based organizations will drive the regional economic development process. As a direct result of this project approval, new jobs will be created, and the economic base of the region will be strengthened and diversified."

The Canada/Newfoundland Strategic Regional Diversification COOPERATION Agreement is cost-shared 70:30 between the federal and provincial governments respectively and is administered federally by the Atlantic Canada Opportunities Agency (ACOA) and provincially by the Department of Development and Rural Renewal.

Contact:

Paul Murphy
COOPERATION Communications
(709) 772-0219

Susan Laite
Development and Rural Renewal
(709) 729-4570

BACKGROUNDER - GREAT NORTHERN PENINSULA DEVELOPMENT CORPORATION ARCTIC CHAR DEVELOPMENT - DANIEL'S HARBOUR

Aquaculture has become a major food source worldwide. There is significant growth potential for the development of an aquaculture-based industry in Newfoundland and Labrador and it has been targeted by the federal and provincial governments for particular attention in stimulating new economic activity in rural areas of the province.
The Great Northern Peninsula Development Corporation (GNPDC) is an incorporated, non-profit organization owned by the six Regional Development Associations on the Northern Peninsula, established to promote economic development in the region through direct involvement in new business development initiatives.
The Daniel's Harbour Arctic Char project was initiated by GNPDC in the spring of 1991 as a pilot project. The project was designed to evaluate the commercial potential of Arctic Char culture on the peninsula. This undertaking had two primary objectives:

• 1. To test the growth potential of Arctic Char within a pre- commercial environment under the site specific conditions of the Daniel's Harbour area; and

  2. To encourage industry development by supporting the establishment of grow-out operations within the region. This would be accomplished through training, technology transfer initiatives, and demonstrations to local individuals and groups.

Since 1991 the GNPDC has received funding in excess of $1 million from a number of government sources. Government and the GNPDC are now satisfied that there exists at the Daniel's Harbour hatchery the ability to successfully grow arctic char to market size. The approval of this additional $1 million under the SRDA is intended to establish a vertically integrated land-based production facility. The intent is to demonstrate the viability of a food fishery and, once established, support the development of the industry through the establishment of grow-out operations in the region. Grow-out operations will be supported through the supply of quality, affordable eggs and fingerlings.

Using heat recovery systems, the operation will be capable of raising char from egg to market size in approximately 1.5 years. The operation will produce approximately 60,000 kg. of market size fish annually, as well as 50g fingerlings and eggs for other grow-out operations as demand increases. The existing hatchery will be modified into a self-contained incubation/early rearing facility to be used for additional research and development.

In addition to promoting spin-off aquaculture projects, the implementation of this initiative will establish Newfoundland's first vertically integrated, certified disease free hatchery/grow-out facility. This facility will have an annual production capacity of 1,000,000 char eggs. Brood stock development is an integral component of the undertaking. As such, this proposal provides for the modification of the existing hatchery into Newfoundland's only fresh water finfish quarantine unit. This will advance the assessment of uncertified sources of Arctic Char and further support aquaculture development within the province. This research is vital to the growth of the char culture industry. By developing expertise in an area with national and international applications, this research can become an industry in its own right.

The implementation of this proposal will have the following positive impacts on the Newfoundland aquaculture industry, and the economy in general:

• the creation of a minimum of five full-time technical positions;
• the creation of a minimum of three part-time/temporary positions;
• enhanced employment opportunities in the region through the development of spin-off aquaculture enterprises
• the development of service sector supply businesses responding to the developing industry requirements, and
• the potential to develop secondary processing production capability.