January 15, 1999
(Executive Council)
Framework for
Canada-Newfoundland Agreement on
Economic Development and Fisheries Adjustment Outlined
Fred J. Mifflin, Minister of
Veterans Affairs and Secretary of State for the Atlantic Canada
Opportunities Agency, and Brian Tobin, Premier of Newfoundland and Labrador,
today announced the framework for the three-year Canada-Newfoundland
Agreement on Economic Development and Fisheries Adjustment which will be
cost-shared between the federal and provincial governments.
In June 1998, the federal
government announced $100 million for an economic development initiative,
$65 million of which was directed towards Newfoundland and Labrador through
ACOA. The provincial government confirmed today its commitment to provide
$16.25 million to the agreement bringing the total to $81.25 million. The
agreement will include two main programs:
-
Regional Economic
Development which will have two distinct elements, one focused on
initiatives that reflect the plans and priorities of regional
development groups, the other focused on initiatives led by the
private sector;
-
Strategic Investment
which will provide proactive support to a limited number of
strategic capital infrastructure projects and those sectors
recognized by both levels of government as having the best
potential for long-term, stable economic growth in areas of the
province adversely affected by the downturn in the groundfish
industry.
"ACOA has the mandate and
the infrastructure in place to deliver economic development initiatives in
partnership with the province," said Minister Mifflin. "The
agreement's flexibility will allow us to partner with those directly
involved in regional economic development to advance initiatives that can
contribute to sustainable economic growth in those areas affected by the
downturn of the groundfish industry. Above all else the goal is to ensure
economic initiatives are viable in the long-term."
Both levels of government will
work in partnership with key stakeholders to deliver this component of the
Fishery Restructuring and Adjustment Measures. "This economic
development agreement will address the fundamental challenges faced by those
regions of the province directly affected by the groundfish collapse,"
said Premier Tobin. "The Strategic Economic Plans presented by the
Regional Economic Development Boards (REDBs), and the priority initiatives
identified by each board will be taken into account during the
implementation of the agreement announced here today."
Both levels of government stress
that regional economic development is a long-term process. This new
agreement will assist those already working in the area of regional economic
development to move the province toward a self-sustaining diversified
economy.
The three-year agreement shall
be operational by April 1, 1999, following further stakeholder consultation
and final Federal Treasury Board approval.
Economic development initiatives
were identified by the federal government as part of the $730 million
measures announced on June 19, 1998 to assist individuals and coastal
communities adjust to opportunities outside the fishery, and to lay the
foundation for an economically and environmentally viable, self-reliant
fishery.
Media contact:
Randy Devine, ACOA, (709)
772-2935
Heidi Bonnell, Premier's Office,
(709) 729-3960
----------------------------------------------------------------------
Canada/Newfoundland Agreement
on Economic
Development and Fisheries Adjustment
Backgrounder
INTRODUCTION
The Canada/Newfoundland
Agreement on Economic Development and Fisheries Adjustment reflects a
long-term strategy for regional economic development in areas of the
province affected by the downturn in the groundfish fishery. As such, it
is a vital component of the Fisheries Restructuring and Adjustment
Measures previously announced by Ministers Pettigrew, Anderson and
Mifflin on June 19, 1998.
The agreement, totalling
$81.25 million, is a three year undertaking, to be cost-shared by the
Government of Canada and the Government of Newfoundland and Labrador. It
will be jointly delivered by the Government of Newfoundland and Labrador
and the Atlantic Canada Opportunities Agency, on behalf of the
Government of Canada.
In recognition of the need
for individuals to adjust to the reality of the groundfish fishery, this
agreement will strengthen and diversify the economies of affected areas
by assisting new industries and diversifying older ones. Ultimately, the
goal is to help rural areas to adjust to the realities of the new
fishery, and to make these communities less dependent on seasonal
industries and income support programs.
Initiatives to be funded
will be strategic in focus and reflect the priorities of both orders of
government, taking into account the Strategic Economic Plans of the
Regional Economic Development Boards (REDBs).
PROGRAM ONE - REGIONAL ECONOMIC
DEVELOPMENT
$51.25 MILLION
The Regional Economic
Development Program, through the collaboration of governments with REDBs
and other regional and community stakeholders, will focus on economic
diversification in regions adversely affected by the downturn in the
groundfish fishery. The program will include two distinct elements - one
focussed on initiatives that reflect the plans and priorities of
regional development groups, the other focussed on initiatives led by
the private sector.
Regional Initiatives Element
The primary focus of the
Regional Initiatives Element will be on implementing initiatives that:
1) build upon the REDBs'
strategic economic plans and priorities;
2) demonstrate strong
potential for self-sustaining economic activity; and
3) improve the long-term
economic climate of a region.
Governments will be
proactive in working with eligible applicants prior to initiatives being
submitted for consideration. The objective is to ensure only those
initiatives which have significant economic impact will be considered.
Eligible applicants will be
based in Newfoundland and Labrador and may include regional and
community development groups, public/private partnerships,
business/industry associations, educational institutions, and
municipalities.
Eligible activities will
include regional initiatives which take into account the strategic plans
and priorities of the respective REDBs, or are linked to other economic
activities geared towards improving the long-term investment climate of
a fishery dependent region. Proposals which encourage entrepreneurship,
human resource development, research related to strategic sector
opportunities, or pan-zonal economic development initiatives will be
considered. Eligible activities may also include infrastructure
initiatives that are directly linked to a private investment
opportunity. Core administrative funding of regional and community
development groups will not be eligible.
Initiatives which will be
pursued under this element, through a call for proposals, include
funding by which towns could compete to be Model Tourism Communities,
and the development of the information technology capacity in specific
communities.
SME Assistance Element
This element recognizes that
accelerated development of small-to-medium enterprises (SMEs) is
essential to any long-term strategy for regional economic development in
regions affected by the downturn in the groundfish fishery.
The objectives of the SME
Assistance Element are:
1) to invest in the
competitiveness and innovation of the private sector within rural
areas;
2) to provide access to
capital for rural-based entrepreneurs where traditional sources of
funding are not available; and
3) to improve rural
access to business and government information.
The approach will be
complementary to existing federal, provincial, federal/provincial, and
community programs. Every effort will be made to take advantage of
commercial opportunities, especially within strategic sectors.
Where appropriate, private
business opportunities that clearly demonstrate potential for both
long-term job creation and regional economic diversity will be given
prime consideration for assistance. To help realize these opportunities,
business expansion and modernization activities which are incremental
and improve upon the competitive advantage of a sector will be eligible.
Eligible costs will also focus on incremental soft costs associated with
marketing, feasibility studies, better business management practices,
etc.
Funds will also be targeted
at ensuring federal and provincial governments have the capability to
provide business information, products and services through single
window sites throughout the province.
PROGRAM TWO - STRATEGIC
INVESTMENT
$30 MILLION
The Strategic Investment
Program will provide proactive support to a limited number of strategic
capital initiatives and to those sectors recognized by both governments
as having the best potential for long-term, stable economic growth in
areas of the province adversely affected by the downturn in the
groundfish fishery.
Strategic Infrastructure Element
The objective of the
Strategic Infrastructure Element is to advance a limited number of key
capital infrastructure initiatives which:
1) have arisen from the
consultation process between REDBs, other community and regional
development stakeholders and the various orders of government;
2) demonstrate
significant economic impact; and
3) lead to the
diversification of, and improvement to, the long-term economic
climate of targeted regions.
Government departments will,
in collaboration with regional and community based groups, initiate and
implement activities undertaken within this element.
Resource Sector Development
Element
The objective of the
Resource Sector Development Element is to pursue initiatives recognized
by both governments as strategic in focus and offering the best
potential for economic growth in rural areas. Resource sector
initiatives which lever significant additional public and private sector
funding will be given priority.
A limited number of sectors
will be targeted to ensure that available funding will have the maximum
economic impact in areas affected by the downturn in the groundfish
industry. The federal and provincial governments, in consultation with
key stakeholders, including REDBs, will continue to work collaboratively
to identify the sectors to be targeted to ensure that stated objectives
are achieved. Emphasis will also be given to sectors of our economy that
offer the greatest potential for growth and diversification.
1999 01 15
4:10 p.m.
|