November 19, 1999
(Executive Council)

Regional initiatives through EDC invest over $7 million in economy

The federal and provincial governments today announced 13 regional economic development initiatives which will invest more than $7 million into the Newfoundland and Labrador economy.

The projects, funded through the Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC), were announced by George Baker, Minister of Veterans Affairs, and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Premier Brian Tobin.

"The federal government, through these investments, is fulfilling its commitment to improve the economic climate in areas of the province that have been hard hit by the groundfish moratorium," said Minister Baker. "These investments will lead to increased employment and earned income opportunities for people living in our coastal communities."

The Government of Canada and the Government of Newfoundland and Labrador are working together to bring the agreement plans and priorities forward. Premier Tobin noted that the initiatives receiving support through the agreement will help the province realize its long-term investment strategy for economic growth.

"The initiatives being announced today demonstrate that cooperation is the key to achieving success in regional economic development," said Premier Tobin. "Each of these projects has been developed through a team approach by the parties involved: the result is increased employment opportunities for entire regions."

Funds from the agreement support the following long-term development activities:

• improvements to Banting Memorial Park, a tourist attraction in Musgrave Harbour where Sir Frederick Banting, co-inventor of insulin, died in 1944;

• a range of sustainable tourism initiatives in the Exploits Valley to build on that region's year-round tourism product;

• a pilot project to support the enhancement of the fur-breeding industry in the province with the development of a central feed kitchen;

• a pilot project in forestry called helilogging, which involves the retrieval of timber by helicopter from areas difficult to access by traditional methods;

• continued development of the international calibre East Coast Trail;

• upgrades to the water supply system in the Labrador community of Charlottetown which will attract new business investment;

• a review of the marine transportation needs for the community of Gaultois;

• establishment of a competitive cranberry industry in Newfoundland and Labrador;

• development of "Norstead" in L'Anse aux Meadows as part of the Vikings!1000 Years celebrations;

• development of a walking trail as a tourism offering in Little Bay Islands;

• a tourism initiative to enhance whale watching accessibility in St. Vincent's Beach-Holyrood Pond area;

• three tourism initiatives in St. Mary's which include archaeology work, construction of a Veteran's Interpretation Centre, and a walking trail at Hare Hill;

• enhancements to the Barbour Living Heritage Village with the addition of a Seal Hunt Interpretation Centre.

• These initiatives are supported by the regional economic development boards as ways to diversify the economies of these areas.

The three-year $81.25 million Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) was signed on August 16, 1999. The agreement is designed to build upon the strategic plans and priorities of the regional economic development boards to improve the long-term economic climate in regions impacted by the downturn in the groundfish industry.

It is delivered federally by ACOA and provincially by the Department of Development and Rural Renewal. Funding was previously announced for strategic harbour infrastructure in St. Anthony and four fisheries diversification initiatives.

Media contact:

Doug Burgess
ACOA
(709) 772-2935

Heidi Bonnell
Premier's Office
(709) 729-3564

1999 11 19                    3:20 p.m.