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April 28, 1998
(Development and Rural Renewal)


HRDC Internal TAGS Evaluation Report supports province's 
position on TAGS replacement program

"The HRDC TAGS Evaluation Report that was released recently provides valuable lessons which strongly support the province's views regarding the structure of a TAGS replacement program," said Beaton Tulk, Minister of Development and Rural Renewal, and chair of the Cabinet Committee on Rural Revitilization.

"The report clearly shows that adjustment is a long term process, and extends beyond individuals to encompass families and communities. Furthermore, it is quite evident that due to education and age factors, adjustment is not a realistic option for all TAGS recipients, and that other alternatives such as early retirement and licence buybacks are a better approach to providing the opportunity to exit the fishery with a measure of dignity. For those who can realistically pursue new labour market opportunities, the evaluation report is unequivocal in stating that community economic development was a missing link in the adjustment process and that there is a need for more effective job creation linked to adjustment programs."

Mr. Tulk went on to say: "Similar to Harrigan's Report, the TAGS Evaluation Report indicates that there remains a heavy reliance on the TAGS Program and that adjustment to the loss of the groundfish fishery presents enormous and unique challenges. Furthermore, this report confirms what the province has been saying all along - that the magnitude of this problem requires a substantive and extraordinary response which cannot be accommodated by regular programming. This particular report is very significant in that it is an acknowledgement within the federal government of conclusions draw previously from external sources, including the Harrigan Report, the Baker Standing Committee report and the provinces own position generally."

"The province has made its position clear that an appropriate response to the continuing groundfish crisis remains a federal government responsibility," said Mr. Tulk. "The collapse of the groundfish fishery created the largest industrial layoff in Canadian history. Families and communities in Newfoundland and Labrador remain in crisis, and the impacts of the termination of TAGS will be felt throughout this province. A new multi year program is required, with substantial new funding. The province has repeatedly stated that this program should include income support, possibly with a cash-out option, labour market adjustment and training, economic development and diversification, early retirement, and licence buyback."

Mr. Tulk also issued the caution that "Irrespective of the importance of adjustment, it was clear during the early stages of TAGS that income support was absolutely essential to the continued well being of families impacted by the groundfish collapse. Due to the federal governments inaccurate forecast of the number of eligible clients, the budget for TAGS was inadequate and this has resulted in major reductions in initiatives aimed at promoting adjustment, as well as the scheduled termination of the program nine months earlier than the original federal commitment."

In concluding, Mr. Tulk called on the federal government to implement its TAGS replacement program as soon as possible. "I cannot help but share the growing sense of anxiety and frustration of the people of this province over this issues. The federal government should act sooner rather than later. It is not in the interest of anyone for the federal government to wait until the end of August to announce its intentions."

Contact: Scott Reid, (709) 729-4570.


Quotes from HRDC's TAGS Evaluation Report

- Unadjusted TAGS clients "pose serious future challenges for which existing HRDC programming (i.e., EI Employment Benefits) may not be sufficient or appropriate". (page vi)

- "The TAGS/HRDC client population presents enormous and unique adjustment challenges; compared to other HRDC client groups, the fishers and plant workers displaced by the Atlantic groundfish shutdown have several important characteristics that make adjustment out of the groundfish industry very difficult." (page ii)

- "Adjustment for this population is a long term and perhaps inter-generational process; for the majority of TAGS clients, permanent adjustment to economic self-sufficiency outside the groundfish industry could not be accomplished within the resources and lifespan of the TAGS program." (page iii)

- "The majority of TAGS clients, including those who have not adjusted, are in Newfoundland." (page vi)

- "The TAGS program encountered substantial problems from the outset with budgets, co-ordination of the different program elements, and communications among the partner departments and agencies responsible for delivering the different program elements. These problems substantially affected the abilities of the TAGS/HRDC program to meet its stated objectives." (page ix)

- "There is serious disappointment in fishing communities that the TAGS program did not do more to support community capacity-building and local economic development." (page viii)

- "Informed observers in government, industry organizations and fishing communities have suggested that heavy investments on the supply-side of labour force adjustment, without some more meaningful effort to create jobs that are accessible to the adjusting population, may not pay off over the longer term. This view is particularly relevant in areas of high structural unemployment where many TAGS clients are based." (page vi)

- "The uncertainty and frequent changes associated with the TAGS program negatively affected client adjustment decisions." (page xi)

- "Community economic development was a missing link in the adjustment process." (page viii)

- "There is a need for more effective job creation linked to adjustment programs." (page vi)

1998 04 28

4:20 p.m.


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