July 27, 1998
(Executive Council)

Province welcomes amendments to TAGS replacement program

Beaton Tulk, Chair of the province's Cabinet Committee on Rural Revitalization and Minister of Development and Rural Renewal, today welcomed the federal announcement of the details of the post-TAGS program. "With this announcement the federal government has ended the uncertainty of TAGS clients about their options for the future," the minister said.

While the federal government announced the post-TAGS program on June 19, specific program details were not included in that announcement, and the federal government indicated it would consult further with key stakeholders and provincial governments on final program design. "I am pleased these consultations are now complete and the federal government has sought to take into account the views of key stakeholders," Mr. Tulk said.

A major element of the federal announcement is that the post-TAGS early retirement program will be open to TAGS clients who are eligible for benefits on January 1, 1998 and who are between 55-64 years of age by December of this year. Early retirement benefits will also be available to those clients who, while not eligible for TAGS on January 1, 1998, can demonstrate that they would have met this requirement except for special circumstances (such as illness, injury or pregnancy). "Both the FFAW and the province had argued that early retirement benefits should be available to TAGS exhaustees with a major attachment to the fishery," Mr. Tulk said. "The new program, while not perfect, would cover the large group of TAGS exhaustees who exited the program earlier this year."

The federal government has also announced that post-TAGS funding will be made available for short-term job creation projects which create work eligible for Employment Insurance (EI) benefits. "This is good news - not only for those who may take advantage of the program - but for communities hard hit by the groundfish moratorium," he said. "Significant job creation opportunities exist in rural Newfoundland and Labrador - rebuilding the infrastructure of rural communities - and in stimulating economic activity through such initiatives as enhanced silviculture. As the province's experience demonstrates, job creation programs, if implemented correctly, can provide meaningful work in areas hard hit by the fisheries crisis. They can also assist people in returning to the workforce. It is crucial that the new federal program build on provincial success in this area and that the province be involved in the identification and selection of projects," Mr. Tulk said.

Minister Tulk noted that the federal government has indicated that it sees the post-TAGS program as a final initiative to assist people in adjusting to the impact of the fisheries crisis. "The province will closely monitor implementation of the federal program, and we shall do everything we can to ensure that the new program is implemented fairly, equitably and as effectively as possible."

Contact: Scott Reid, Communications, Department of Development and Rural Renewal, (709) 729-4570.

1998 07 27                       1:25 p.m.