May 12, 1998
(Finance)

The following statement was issued today by Paul Dicks, Minister of Finance and President of the Treasury Board. It was also read in the House of Assembly:

It gives me great pleasure to rise before the House today to inform my colleagues that yet another national financial institution has forecast increased economic growth for Newfoundland and Labrador.

The Bank of Montreal today released their regional outlook which again has this province leading the country in GDP growth in 1998. The bank predicts that real GDP growth will reach 4.4 per cent in 1998 and will continue at a similar pace into 2001.

The Bank of Montreal's report reflects what this government has long known. Our economy is growing. The increase is due to activity in our offshore, in mining and related industries and in our diversified fisheries. I must point out that today's economic forecast is based on information available in the last several weeks, and is up to date and current.

No economy recovers from the reality of Newfoundland and Labrador's GDP declines of the last few years in a matter of weeks or months. But we can see the trend. Over the space of the last two years, we have gone from a position of decline in real GDP to significant real GDP growth. April's labour force statistics indicate that there are 9,300 more jobs in this province over the same time last year. These jobs were created across both goods and service producing industries. Every project, every job created, aids in our goal of a Newfoundland and Labrador which has an economy that is healthy and strong.

As always, we must exercise caution when we talk of economic growth. The details of the post-TAGS program will impact on our economic recovery, and we look forward to finalized details from the federal government so we may determine exactly what impact it may have.

In any case, today's forecast by the Bank of Montreal is another vote of confidence in the economic turnaround of this province. It is a vote of confidence that this government's plan for the future of Newfoundland and Labrador is working.

1998 05 12                    3:35 p.m.