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February 6, 1998
(Executive Council)


Without post-TAGS program, provincial economy will be shaken

Beaton Tulk, Minister of Development and Rural Renewal and chair of the Cabinet Committee on Rural Revitalization, said today that if there is no post-TAGS program the economy of this province will suffer more than $200 million dollars in direct losses. In addition, it is estimated that the ripple effect will mean the equivalent of 1,600 full time jobs outside the fishing sector would be lost. That would be the equivalent to the sudden destruction of our pulp and paper industry.

"All of us will be affected in a very profound way if the federal government does not deal with the impending expiry of TAGS," said Minister Tulk. "This is one of the most important issues facing Newfoundland and Labrador today, one that affects every community and every person, not just the 28,000 fishers and plant workers that were thrown out of work in 1992 when the moratorium was announced."

With that many people left without a source of income, the province's ability to sustain existing social programs would be severely challenged. Greater demands on the already overburdened social assistance system and a smaller tax base would mean difficult choices would have to be made. The tax base of individual communities would also decline, leading to possible reductions in municipal services or higher local taxes to cope with the situation.

"It would come down to making tough choices about spending on health care and education, as well as other public services," said the minister. "It would be next to impossible to continue the level of services we provide today and still live within our financial means."

The potential impact on the economy has even been recognized by national economic forecasters. The Conference Board of Canada recently stated that the positive economic outlook for the province over the next several years will be "at considerable downside risk" should there be no replacement for TAGS.

"This will affect the viability of communities all around the province," said Mr. Tulk. "It won't just be fishing communities that feel the impact. Regional service centres like St. John's, Corner Brook, Clarenville and Gander will all bear the brunt of the end of TAGS. We call on all Newfoundlanders and Labradorians to support us as we continue to impress upon the federal government the need for an effective post-TAGS program."

Contact: Pat Power, Communications, (709) 729-4570. 

1998 02 06 4:40 p.m.

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