Beaton Tulk, Minister of Forest Resources and Agrifoods, contends that Jean Charest's proposal to combine the federal department of Agriculture and Agri-food Canada (AAFC) would be detrimental to smaller provinces like Newfoundland. Unlike some of the larger and well-funded provincial ministries of agriculture found in the central and western provinces, Newfoundland's ability to assist developing agrifood industry would be more vulnerable to the changes proposed.

"The proposal to combine the Department of Agriculture and Agrifoods will have a negative impact on services to provinces such as ours, in that we are in the mid stages of development of the agrifoods industry," said the minister. "We have not had a long history of access to federal support programs and policies, compared to the more developed provinces of central and western Canada. This proposal would cut Newfoundland agriculture initiatives short, before we really showed what we are capable of doing."

Food inspection and regulatory oversight are current initiatives of the federal government. The proposal to introduce more private sector involvement in research and cost-recovery for provision of these services would negatively impact the agrifoods industry in this province. In Newfoundland and Labrador, the size of our industry combined with the fact that we do not have many private agrifood businesses that are involved in research would present obstacles to progress in this province. Moreover, in a province where food prices are already high, it would not be realistic to propose that this service be provided on a cost recovery basis as it will further increase food prices, and ultimately would reduce this province's agrifood competitiveness.

Agriculture and Agri-food Canada spends less than one per cent of its allocated budget in Newfoundland. "Yet this investment provides invaluable leverage to our growing agriculture and agrifood industry," said Mr. Tulk. "There is not doubt that cutting the budget by 40 per cent will be devastating for the smaller provinces."

The importance of this industry to the province of Newfoundland and Labrador is undeniable. The capital value of the primary industry alone is over $176 million. Farm cash receipts for 1996 were approximately $70.8 million, with the value of the agrifood processing industry estimated at a further $300 million. And it is estimated that Newfoundlanders and Labradorians spend $2 billion annually on agri- products. The sector created approximately 5,000 jobs. "There is great potential for this industry in our province," said the minister. "We should not be supporting an agenda that will set the strategy for growth adrift."

Contact: Anna Buffinga, Communications, (709) 729-3750.