March 26, 1998
(Development and Rural Renewal)

Momentum Maintained in New Budget

Beaton Tulk, Minister of Development and Rural Renewal, is pleased that significant resources are committed in this budget towards government's economic growth agenda, especially as it relates to the challenges confronting rural Newfoundland and Labrador.

"The province has allocated almost $9 million to various strategic economic initiatives in the 1998-99 budget so this department can move ahead steadily on all fronts to meet its mandate of stimulating economic growth and job creation in all regions of the province. This is in addition to the $7 million allocated to the Strategic Enterprise Development Fund that is intended to support growth of small to medium sized enterprises in the province.

"Through our Strategic Enterprise Development Fund, federal partnerships and our continuing work with the Regional Economic Development Boards, we have been capitalizing on the province's economic strengths and opportunities to ensure that citizens from all parts of the province benefit from our efforts," said Mr. Tulk.

In the 1997-98 fiscal period, the department, through its Strategic Enterprise Development Fund, provided loans of $4.6 million to assist 124 projects located in all parts of the province with a total value of $16.3 million. These projects created almost 500 jobs and maintained a further 250 jobs.

The department's Strategic Enterprise Development Fund is designed to assist small- and medium-sized businesses engaged in strategic industries. These are industries in new, emerging sectors identified either by Regional Economic Development Boards or government itself, as offering opportunities to provide sustainable employment and diversification of the provincial economy. Targeted industries include small-scale manufacturing, information technology, adventure tourism, aquaculture, environmental industries, and companies that have export or import replacement potential.

In addition to its own budgetary resources the department in partnership with the federal government also provides assistance to regional economic development organizations through the Canada - Newfoundland Strategic Regional Diversification Agreement (SRDA). In fiscal '98-99, over $10 million will be invested throughout the province to support strategic economic priorities in the 20 economic zones.

"Economic infrastructure is an area where the private sector cannot profitably become involved initially, but in the long run these projects go on to provide long term economic benefits through the creation of jobs and the attraction of new wealth to the province," said Minister Tulk.

To stimulate economic development province-wide, the department continues to coordinate and assist the 20 Regional Economic Development Boards. The boards' role is to identify and prioritize economic and business development opportunities in each zone. Eighteen of the 20 boards have completed strategic economic plans and are moving into the implementation stage.

Contact: Scott Reid,(709) 729-4750.