August 16, 1999
(Executive Council)
Economic Development Component
of the Fisheries Adjustment and Restructuring Initiative signed
George Baker, Minister of
Veterans Affairs and Secretary of State for the Atlantic Canada
Opportunities Agency (ACOA) and Premier Brian Tobin today signed the
three-year $81.25 million Economic Development Component of the Fisheries
Adjustment and Restructuring Initiative.
The federal/provincial
Initiative, designed in response to the conclusion of the TAGS program,
allows for long-term strategies for regional economic development in areas
adversely affected by the downturn in the groundfish industry. Programs were
developed after extensive consultations with key stakeholder groups
including Regional Economic Development Boards, provincial and federal
government departments, and community-based groups. Project priorities will
be determined based on the strategic priorities of individual regions.
"The Government of Canada
is committed to assisting communities hard hit by the fisheries moratorium
and long-term, sustainable development is part of the solution," said
Minister Baker. "We are confident that the consultation process yielded
significant results with the key strategic priorities of specific regions
being brought forward for consideration. Working with Regional Economic
Development Boards and community based groups, both levels of government are
now committed to acting quickly to bring projects to fruition."
"The Regional Economic
Development Boards have played an instrumental role in bringing the
agreement to a point where strategic priorities can be achieved,"
Premier Tobin said. "It is only with this spirit of consultation and
cooperation that we have been able to bring this economic development
agreement to full operational status."
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 province confirmed in January 1999 its commitment to provide
$16.25 million to the initiative, bringing the total to $81.25 million. The
agreement will be implemented by ACOA on behalf of the federal government,
and by the Department of Development and Rural Renewal on behalf of the
province.
Specific project announcements
will be made over the course of the agreement.
Media contacts:
Randy Devine, ACOA, (709)
772-2935
Heidi Bonnell, Office of the Premier, (709) 729-3560
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ECONOMIC DEVELOPMENT COMPONENT
OF THE FISHERIES ADJUSTMENT AND RESTRUCTURING INITIATIVE
INTRODUCTION
The Economic Development
Component of the Fisheries Adjustment and Restructuring Initiative
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, focuses on economic
diversification in regions adversely affected by the downturn in the
groundfish fishery. The Program includes 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.
Regional Initiatives Element
The primary focus of the
Regional Initiatives Element is 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.
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 08 16
12:10 p.m.
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