October 31, 1997 Governments sign new $50.14 million Economic Development Agreement for Newfoundland and Labrador Fred Mifflin, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Premier Brian Tobin signed a new federal/provincial agreement today earmarking $50.14 million for economic development initiatives throughout the province. The agreement will be cost-shared by the federal and provincial governments on a 70/30 per cent basis respectively. Judy Foote, Minister of Industry, Trade and Technology, and Beaton Tulk, Minister of Development and Rural Renewal, also participated in the signing of the agreement. The focus of the Canada/Newfoundland Comprehensive Economic Development Agreement is to direct financial resources toward high priority initiatives in order to capitalize on major opportunities within strategic growth sectors. "This new agreement complements other economic development programs already in place and will be instrumental in our efforts to expand Newfoundland and Labrador's economic base," said Minister Mifflin. "It will strengthen our competitive capabilities allowing industry to seize opportunities in the global economy, which in turn will result in prosperity and long-term economic growth throughout the province." "The Government of Canada and the Government of Newfoundland and Labrador have worked together to develop this agreement," Premier Tobin noted. "We recognize that with declining resources, the new generation of federal/provincial agreements have to be more strategic in focus, more harmonized in approach, and more flexible in design. I believe we have accomplished that with this agreement." The new agreement is comprised of four programs. Approximately $18.64 million will be made available for a Strategic Opportunities Program, the primary objective of which is to respond effectively to key initiatives that are outside the normal parameters of existing federal and provincial economic development programs. Building on the new economic zonal structure in the province which is being spearheaded by the 20 Regional Economic Development Boards, $15 million will be allocated for a Community Economic Development Program to enhance the delivery and impact of existing rural revitalization efforts. A $10 million Technology Development Program, with emphasis on innovation and technology, will capitalize on the high rates of growth in technology sectors of the national and world economies. A $6 million Investment, Export Trade and Marketing Program will focus on attracting international investment and developing the province's export potential. A further $500,000 has been allocated for administration of the agreement. In designing these initiatives, both governments focussed on the primary objective of long-term sustainable economic development and employment growth that will benefit all areas of the province. "To achieve our objective of long-term economic growth, this new agreement has been designed to accommodate proactive government-driven measures as well as industry-driven initiatives," said Minister Mifflin. Premier Tobin noted: "This agreement is consistent with the overall economic development strategy of both the federal and provincial governments. It is our plan to proceed with implementation immediately." The Comprehensive Economic Development Agreement will be implemented and managed jointly between the two governments, with the Atlantic Canada Opportunities Agency (ACOA) taking the lead for the federal government and provincially through the Department of Industry, Trade and Technology and the Department of Development and Rural Renewal. Contact: Randy Devine, ACOA, (709) 772-2935 or Heidi Bonnell, Premier's Office, (709) 729-3564 _________________________ BACKGROUNDER Canada/Newfoundland Comprehensive Economic Development Program RATIONALE Globalization of trade and the pervasive effects of information technology are providing employment opportunities in the new economy. The prerequisites to this new economy include a flexible, educated labour force, a strong entrepreneurial business sector and a facilitative government sector. Against this backdrop, the Newfoundland and Labrador economy is going through its own period of fundamental economic change. The challenge is to diversify the economic base. The resource industries - traditionally the province's economic backbone - can no longer by themselves stimulate the kind of economic growth needed to sustain a healthy economy. Other alternatives must be explored and opportunities seized. The Government of Canada and the Government of Newfoundland and Labrador have agreed to work in partnership to advance their shared economic development objectives by establishing the Canada/Newfoundland Comprehensive Economic Development Agreement. The $50.14 million five-year Comprehensive Economic Development Agreement will enable the federal and provincial governments to implement measures that target strategic sectors offering the best opportunity for growth. Enhancing the global competitiveness of industry, establishing linkages within the target sectors, and developing an export focus among key stakeholders will be fundamental to the strategy. Where appropriate, the private sector will be engaged to work in harmony with government to accomplish desired goals. Resource sector activities will be supported to the extent that initiatives are value-added, trade-related, technology enhancing, or aimed at developing human resources. The agreement will also be used to assist in the implementation of the strategic economic plans being developed by the 20 Regional Economic Development Boards. OBJECTIVES The objectives of the Canada/Newfoundland Comprehensive Economic Development Agreement are to:
PROGRAMS The Canada/Newfoundland Comprehensive Economic Development Agreement is comprised of four programs as follows:
In addition to the $49.64 million noted above, $500,000 has been allocated to provide core administrative support to the overall operation of the areement. STRATEGIC OPPORTUNITIES PROGRAM ($18.64 MILLION) The Strategic Opportunities Program will consist of three elements -- one to respond to business investment opportunities, one focussed on sector-specific initiatives with high opportunity for growth, and one focussed on human resource development and entrepreneurship.
COMMUNITY ECONOMIC DEVELOPMENT PROGRAM ($15 MILLION) In February 1995, the federal and provincial governments released the Report of the Task Force on Community Economic Development and endorsed a new approach to regional economic development based on the establishment of 20 economic zones in Newfoundland and Labrador. Within each zone, community-based Regional Economic Development Boards (REDBs) were established to lead the development and coordinate the implementation of strategic economic plans for their respective zones. The objective of the zone process is to create jobs through economic growth and diversification. For the first time in this province business, labour, regional development groups, municipalities, the education and training sector and other stakeholders are working together to establish shared priorities with respect to the economic development opportunities in their regions. The Federal/Provincial Strategic Regional Diversification Agreement (SRDA), signed in 1994, provided initial funding for this initiative. The Community Economic Development Program of the agreement will enable the leadership role of REDBs to continue in the implementation phase of strategic economic plans, and fund initiatives where REDB priorities are shared by government.
TECHNOLOGY DEVELOPMENT PROGRAM ($10 MILLION) This program, with an emphasis on innovation and technology, will capitalize on the high rates of growth in knowledge-based sectors of the national and world economies by building on existing strengths within the local economy. The Technology Development Program includes four distinct elements that address a wide range of challenges facing the Province's economy as it seeks to compete both nationally and internationally.
INVESTMENT, EXPORT TRADE AND MARKETING PROGRAM ($6 MILLION) With a small domestic market for most goods and services, investment attraction and export development are prerequisites to job creation and economic growth in Newfoundland and Labrador. The Investment, Export Trade and Marketing Program includes two elements.
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