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March 21, 1997
(Development and Rural Renewal)


Budget focuses on rural Newfoundland and Labrador

The Minister of Development and Rural Renewal, Judy Foote, MHA - Grand Bank, says government's commitment to the revitalization of rural Newfoundland and Labrador was evident in the budget delivered yesterday by the Minister of Finance.

"The emphasis that was placed on the needs of rural Newfoundland and Labrador can be seen through the measures taken to address concerns in health care, education, social services and the new funding provided for economic initiatives," said Ms. Foote. "On the economic front, the choice the government made to provide $17 million for strategic investments will result in job opportunities for the people of Newfoundland and Labrador. That money will be used to partner with the private sector as we work together to diversify the economy."

Government reaffirmed its commitment to the Regional Economic Development Boards in the province's 20 economic zones. "It is through the efforts of the board, and those with whom they consult, that we will realize the diversification that we all know is essential if we are to turn around our economy and find those job opportunities that don't now exist." To help in these efforts, the Department of Development and Rural Renewal, in partnership with the federal government and community- based groups, will be increasing its presence throughout the province by setting up operations in all 20 economic zones. According to Minister Foote, "these 20 office locations will contribute to and complement the work of the regional economic boards."

"Health care," said Ms. Foote, "is a priority with this government which is why $2.6 million was allocated in the budget to attract physicians in rural Newfoundland and Labrador. This initiative clearly recognizes the need to address the shortage of physicians in rural areas of our province. This is a concern I have heard expressed over and over again by those who live in rural Newfoundland and Labrador." Funding was also approved for new hospitals in Harbour Breton and Lake Melville and an additional $2.5 million was committed for hospital equipment bringing the total amount allocated for hospital equipment to $7 million.

"The budget included $24 million to repay all school board debt and in so doing," said Ms. Foote, "the 10 new school boards throughout the province can undertake their tasks with the knowledge that they will not be burdened by old debts. A further $2.5 million was committed in the budget for the purchase of new computers for our schools ensuring that, not matter where you live in Newfoundland and Labrador, our students will continue to lead the country in access to the Internet. We are the first province in Canada to have connected all of our schools to the Internet and in so doing, we have given our children more opportunities to learn, to compete and to win in a competitive global economy."

"The announcement that $9 million has been allocated to help communities in rural Newfoundland and Labrador restructure their debt has to be viewed as one of the most positive initiatives in the budget," said the minister. "There are many communities who, through no fault of their own, find it difficult to continue to provide the services that the majority of the people throughout Newfoundland and Labrador enjoy. The collapse of the groundfish fishery in particular has played a major role in the situation in which some of these communities find themselves," said Ms. Foote. "Working with the Department of Municipal and Provincial Affairs, these communities will get a chance to turn things around."

"I am excited about what the future holds not only for rural Newfoundland and Labrador, but for the province as a whole," said Ms. Foote. "As we work together to diversify our economy and find employment for our people, I am confident that one of the results of our efforts will be sufficient financial resources to provide quality health and education services throughout our province."

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

1997 03 21 6:25 p.m.

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