News Releases
Government Home Search Sitemap Contact Us  


March 22, 1999
(Development and Rural Renewal)


New resources, strategic investments strengthen regional economic development agenda

New resources provided in the 1999-2000 Budget, along with strategic investments in key areas and partnerships with other agencies, will strengthen the foundation already laid for regional economic development and small business development, says John Efford, Minister of Development and Rural Renewal (Acting).

"With the building blocks already in place to build strong regional economies and strong communities, the new budget gives us the resources we need to build on the success already achieved. It strengthens our economic growth and jobs agenda, especially in rural areas, and provides for strategic investments in both traditional and emerging new industries," he said.

Specific initiatives include new resources for a federal-provincial post-TAGS economic development program, increased investments to develop the telefilm industry, and increased access to financing for small boat inshore fish harvesters.

The 1999 Budget provides for $28 million in the coming fiscal year for the federal-provincial post-TAGS economic development program, which will have a total budget allocation of $81 million over three years. "These significant new resources will help the department, in partnership with the federal government, and in collaboration with the Regional Economic Development Boards, to address the challenge of revitalizing the economies of those regions of the province directly affected by the downturn in the groundfish industry," the minister said. Program details are being finalized in consultation with ACOA and the regional economic development boards, with implementation to begin early in the new fiscal year.

Mr. Efford, in referring to the Fish Loan Guarantee Program, said that removal of the minimum loan amount of $50,000 will increase access to financing for small boat inshore fish harvesters. "These harvesters have an important role to play in the recovery and diversification of the fishery. Enhancing their access to government guaranteed loans through the chartered banks, on a business-like basis, will enhance their ability to participate in the new fishery."

The increase in the Telefilm Equity Program � to $1 million from $750,000 � begins with the new budget. This program provides critical capital financing to local film production companies to assist them in advancing significant projects. Mr. Efford said that this, along with government's new Telefilm Tax Credit Program - the most competitive of its kind in the country - are designed to grow the province's emerging film industry and in the process generate new economic activity and create new jobs.

Referring to other budget measures, Mr. Efford said that the $6 million allocated for his department's Strategic Enterprise Development Fund "demonstrates government's firm commitment to growing small businesses throughout the province. This is especially important in rural areas where business information, financing, counselling and other small business supports are not readily available through the private sector."

Strategic new long term investments will be made, in collaboration with the private sector in rural areas, to diversify traditional industries such as the inshore fishery, and to take full advantage of opportunities in emerging new industries, such as the small scale manufacturing sector and ecotourism.

"I am very pleased that significant resources are committed in this budget to undertake initiatives to develop our economy. That is particularly important as it relates to the challenges confronting the economy of our rural areas," Mr. Efford said.

Media contact: Josephine Cheeseman, Communications (709) 729-4570.

1999 03 22                                     4:05 p.m.


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement