October 19, 1996
(Development and Rural Renewal)

Northern Labrador communities forge a new approach to economic development

Communities along the north coast of Labrador have proved that the barriers of geography need not inhibit economic development efforts within distinct regions of the province as the Nanuk Development Corporation was officially launched today.

In a public ceremony in Nain, Lawrence O'Brien, MP - Labrador, on behalf of Lawrence MacAulay, Secretary of State (Atlantic Canada Opportunities Agency) (Veterans Affairs), and Judy Foote, Minister of Development and Rural Renewal, paid tribute to everyone involved in establishing the most northern Regional Economic Development Board in the province, and highlighted the potential which lies ahead for the region's economic future.

"Already, the development activity happening in Northern Labrador is the envy of the rest of the province," said Mr. O'Brien. "Labradorians have always known that they are blessed with abundant resources. The Nanuk Development Corporation is in a position to help ensure that all residents of the north coast are considered in the distribution of benefits from economic development activities. As well, the corporation will influence the types of development activities to be undertaken with public funds through the development of the region's first strategic economic plan."

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 involved the creation of new community-based volunteer boards to support economic development planning and coordination within specific zones in the province. These Regional Economic Development Boards (REDBs) consist of representatives of municipalities, business, labour, community development groups, education and training institutions, as well as aboriginal interests in the zone.

"This is the first time that communities in Northern Labrador have come together to form an umbrella organization which has the primary mandate to aggressively pursue economic development opportunities in their region," said Ms. Foote. "While mega-projects like Voisey's Bay clearly represent substantial economic development potential, the Nanuk Development Corporation will also be able to capitalize on the international attention now focused on this significant world-class mining development. Through diversification and expansion of the existing economic base, and through the board's own cooperative efforts, there is great potential in this region to encourage sustainable wealth generating activity."

The formation of permanent REDBs 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 all regions of the province strengthened economically.

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 COOPERATION 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 or Susan Laite, Development and Rural Renewal, (709) 729-4570.