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March 20, 1997
(Development and Rural Renewal)

Rural Newfoundland and Labrador to Benefit from 
Enhanced Economic Development Services

Judy Foote, Minister of Development and Rural Renewal, today commented on her department�s continued commitment to economic growth and job creation throughout Newfoundland and Labrador, particularly in rural areas. Ms. Foote noted that her department has achieved efficiencies in the delivery of its mandate, as outlined in today's provincial budget. This will be achieved in a way which strengthens its ability to work with entrepreneurs, existing businesses and community and regional development organizations in all areas of the province.

The core of the Department of Development and Rural Renewal's mandate centers on the establishment of the 20 economic zones and in working with the Regional Economic Development Boards in each zone to develop and implement strategic economic plans to guide regional economic development efforts.

"Regional Economic Development Boards are the means for communities, development groups, business, labour, education and training institutions and other stakeholders to come together in regional economic development to assess the opportunities for development and establish their collective priorities to achieve them," explained the minister. "The boards are well advanced in most zones in developing their strategic economic plans for their zones, and the federal and provincial governments are committed to working with the boards to establish common priorities based on their plans. The collective resources of governments, communities, private enterprise and other stakeholders in regional economic development will then be integrated and coordinated to realize the development opportunities which exist in all regions of our province. We are already seeing positive results with this new partnership. We are committed to taking an aggressive, action-oriented approach to development and rural renewal in Newfoundland and Labrador."

In support of this approach to regional economic development, $7 million has been budgeted under the Canada-Newfoundland Strategic Regional Diversification Agreement (SRDA) in 1997-98. An additional $3.6 million has been provided under the Canada-Newfoundland Comprehensive Labrador Agreement in support of specific economic initiatives in Labrador. These commitments are in addition to $18 million that has been budgeted by the federal government through the SRDA in direct support of economic development and diversification activities in fisheries dependent communities.

To complement the work of the Regional Economic Development Boards in each zone, the Department of Development and Rural Renewal, in partnership with the federal government and community and business development groups, will establish single window small enterprise and support services in each economic zone. Now, as each board continues to identify opportunities within each zone, they will have easy access to the small business and development services they may require to assist in overseeing the implementation of economic opportunities they are pursuing in their zone.

"Clients needing business development support, ranging from market information, business counselling, support in developing a business plan or access to financial assistance, will be able to access federal and provincial programs in a single location," explained Ms. Foote. "In addition, we will work with our community-based business development partners to explore co-location opportunities. With this approach, we will be extending our outreach to deliver service where the client needs it, overcoming overlap and duplication between development agencies, and achieving cost efficiencies in the process.

"This more decentralized approach delivers on our Red Book commitments to work with the economic zones and support rural revitalization, to enhance access to small business training and counselling services, to support business mentoring and the establishment of business networks, and to decentralize decision-making in the delivery of economic development programs," said the Minister.

The Department of Development and Rural Renewal will also deliver a $17 million Strategic Enterprise Development Fund in 1997-98, which will be targeted to sectors offering growth potential and to business finance needs not met by other government or non-government sources. The fund will also be used to support external investment prospecting activities of the province where direct financial support to attract new investment is necessary.

"Government recognizes that the private sector is the engine that drives new wealth generation and job creation,� noted Ms. Foote. �It is government's role to create the environment to encourage, stimulate and sustain economic growth in all areas of the province."

In addition, the department will continue its strategic business development activities which focus on sectors offering growth potential to small and medium sized enterprises in the province. The department is leading the province's support for the newly established Newfoundland and Labrador Film Development Corporation, an initiative with St. Pierre and Miquelon to increase trade opportunities with the French Islands, and sectoral initiatives linked to the development of secondary food products, small-scale manufacturing and the ongoing development of the crafts industry. A budget of $475,000 has been allocated for the Newfoundland and Labrador Film Development Corporation alone in 1997-98.

"By integrating our support for regional economic development and small enterprise development, and by working with local businesses, the Regional Economic Development Boards and other community-based organizations," Ms. Foote noted, �we can focus our collective resources effectively. Developing these partnerships will maximize economic benefit to Newfoundlanders and Labradorians through new wealth generation and job creation. My department's plan for the coming year enables this more focused approach to development and rural renewal to be realized."

Contact: Susan Laite, Director of Communications, (709) 729-4570.

1997 03 20 3:55 p.m.

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