$4.8 million federal-provincial investment in regional development initiatives

George Baker, Minister of Veteran Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Premier Brian Tobin today announced funding for 19 long-term economic development  projects valued at $6.2 million of which $4.8 million is provided under the Economic Development Component of the Fisheries Adjustment and Restructuring Initiative.

These projects are part of the three-year, $81.25 million program announced in August 1999 to help diversify the economies of regions and communities adversely affected by the closure of the groundfish fishery.

"When we signed this agreement last year, the Government of Canada reaffirmed its commitment to assist the communities hardest hit by the fishery moratorium," said Minister Baker. "These projects illustrate that continued commitment. They also demonstrate the diversity of our province�s regional economic activities and clearly show the power and impact of working in partnership. They reaffirm the reason why we continue to invest in the ideas of Newfoundlanders and Labradorians."

"The initiatives announced today were identified as strategic investment priorities by communities and regional development groups as having the best potential to maximize economic benefits for their respective areas," said Premier Tobin. "Regional Economic Development Boards, in partnership with communities, developed strategic economic plans to create new wealth and sustainable employment. We are pleased to support their ideas."

The 19 projects cover a spectrum of areas in which the federal and provincial governments have already made significant strategic investments. Considerable funding has been allocated to improving public infrastructure. There is a wide range of initiatives to help diversify the rural economy: expansion of the dimension stone industry; strategic tourism initiatives; watershed management, as well as smaller projects in agriculture and aquaculture.

This announcement is the next round in a set of initiatives under the program designed to assist in economic diversification. Regional Economic Development Boards, communities and citizens were consulted to identify areas for development and select priority initiatives. Further initiatives will be announced in the coming weeks.

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 of the groundfish industry.

Media contact:

Heidi Bonnell, Office of the Premier, (709) 729-3960

Doug Burgess, ACOA, (709) 772-2935

BACKGROUNDER
EDC INITIATIVE SUMMARY

INFRASTRUCTURE
Nordic Economic Development Corporation $990,000
This initiative will involve construction and/or reconstruction of 71 kilometres of forest access roads in Roddickton and surrounding areas. The development of forest access roads is essential in allowing operators to harvest the Annual Allowable Cut for the district, supporting the industry�s strategic economic plan for the zone. The project will provide access to currently inaccessible timber, preserve existing jobs and businesses and encourage future growth while providing approximately 5,500 person weeks of employment.

Newfoundland and Labrador Chamber of Mineral Resources $1,000,000
This initiative will ensure that infrastructure such as access roads, bridges, culverts and lay down areas are available to facilitate further development of the dimension stone industry. Strategic projects throughout the province will be selected on established criteria and will stimulate private sector investment in the industry. The project will create direct and indirect employment, as well as reduce formerly prohibitive start-up costs to create a level playing field with other provinces who fund such developments.

Town of Black Tickle $390,000
In support of industrial development in Black Tickle, a new water line is required to support a fish plant in the community. The proposed system would provide a water line from the supply source directly to the plant. This water supply will be similar to those used to supply the fish plants in Cartwright and Mary�s Harbour.

WATERSHED MANAGEMENT
Bay St. George South Area Development Association $171,140
The Bay St. George South Area Development Association will continue research activities to provide baseline data to undertake a community-based watershed system of five salmon rivers in the region. Activities will include a stock assessment on Highlands River, habitat improvements and a resource inventory on Barachois, Robinsons, Crabbes and Fischells rivers. This project could result in the introduction of a small or medium-size enterprise in the guiding or outfitting industries in the area.

Gander River Management Association Ltd. $241,000
This initiative will build upon significant work already undertaken and will generate time series data crucial to the current watershed management plan. It will also provide continuity in data analysis on which future management plans will be based. This project will create 20 short term positions in Gander Bay and contribute to the marketing activities of outfitters already nearing capacity and two new lodges proposed to open shortly.

Alexander Bay-Terra Nova Development Association $160,000
This initiative is a salmonid enhancement project which will include the incubation and release of salmon fry into the Terra Nova watershed. In addition, monitoring of existing salmon stocks will occur as the objective of the project is to increase salmon stocks to the carrying capacity of the watershed.

TOURISM
Town of Carbonear $166,923
The Rorke Store, an integral part of mercantile history in Carbonear since the 1870s, will have its main floor restored. An interpretation component will link the Rorke property history with the overall development of Carbonear. This initiative is one of a series encouraging tourists to visit each sub-region of the Baccalieu zone and will create 11 short-term jobs.

Princess Sheila Inc. $60,000
Princess Sheila Inc. will host the Sheila Na Geira Summer Theatre Festival in Carbonear, utilizing at least three venues during an expanded summer program. The festival involves three programs, including the original Sheila Na Geira Production, Fisherman�s Revenge and a new dinner theatre. This project is one of a series of tourism initiatives in the region and is expected to create 20 short-term jobs.

Town of Hawkes Bay $168,980
Further development of the Torrent River Nature Park will occur to make it an important tourist attraction in the Igornochoix region of the Viking Trail. The project will include upgrading of the tourist chalet, the comfort station, the Hogan trail, landscaping, and the installation of interpretive signage. This project could create nine potential seasonal jobs while the construction phase will create approximately four short term positions.

Town of Placentia $113,275
An historic townscape master plan for the Town of Placentia will allow for the development and implementation of a framework for the coordination of urban, landscape and building design. This will involve the restoration, interpretation, conservation, marketing and management of the area�s rich cultural history. The initiative will stimulate new investment in the tourism sector and significantly improve the community�s physical appearance as well as the overall fabric of the townscape.

Cupid�s Historical Society Inc. $88,125
Funding will be provided to retain a consultant to undertake a two-phase master plan to interpret, preserve and promote historic resources at Cupids and examine the potential for partnerships with a national historic site in Brigus. The plan will also involve the development of a preliminary concept for the celebration of Cupid�s 400^th anniversary in 2010. This initiative is one in a series designed to encourage tourists to visit each sub-region of the Baccalieu zone.

Town of Fortune $307,440
The Greenway Trail system will provide interpretation for geology at Fortune Head Ecological Reserve. Various types and conditions of trails exist around and beyond the reserve; however, there was no previous formal basis for routing, design or maintenance. The trail system will maintain biological diversity, protect water and soil resources and stimulate tourism in the area.

Cape Freels Heritage Trust Inc. $48,300
The Cape Freels Heritage Trust will complement its interpretive tours of restored heritage properties by presenting a number of original theatrical productions and a weekly dinner theatre showing the historic struggles and ingenuity of people in rural Newfoundland. Performances will enhance the tourism experience for visitors and it is expected that the 2000 tourism season will generate 25 direct jobs and attract 22,000 visitors.

Petty Harbour/Maddox Cove Development Corporation $86,000
This initiative will allow the Petty Harbour/Maddox Cove Development Corporation to prepare a model fishing village master plan for the strategic tourism revitalization of the area. The proposed plan will focus on the creation of a world-class tourism attraction uniquely positioned against the backdrop of a traditional fishing village. Visitors will be able to view one of the only existing small boat fisheries in the province and see properties consistent with rural Newfoundland architectural themes. This will increase the tourism potential of a community severely impacted by the closure of the groundfish fishery.

Pigeon Cove-St. Barbe Community Development Corporation $220,872
There is a strong need to provide additional RV services because of the use of the Labrador Straits Ferry in St. Barbe, a growing tourism sector on the Viking Trail and in Southern Labrador, and development of the Trans Labrador highway. This investment to improve infrastructure is expected to encourage tourist visits to Southern Labrador, enhance the opportunity for alternate business development or expand existing operations and help increase the number of jobs for the local area.

AQUACULTURE
Bay St. George South Area Development Association $150,000
The eel pilot project will allow an assessment of the commercial feasibility of eel aquaculture using a land-based recirculation system. Supported and endorsed by a number of partners, this initiative in Robinsons will determine the commercial feasibility of establishing the first 200 tonne eel grow-out facility in the province which, if successful, would create full-time employment of 10-15 jobs and provide an export market for revenue generation.

AGRICULTURE
Salmon Cove Future Development Association $19,126
In conjunction with the Atlantic Cool Climate Control Research Centre, the Salmon Cove Future Development Association will conduct the third phase of research on the beach pea. The research is aimed at producing a high-yield industrial cash crop for use as forage by northern latitude farmers. Creation of long-term employment, particularly for post-TAGS recipients, and the stimulation of economic growth are expected as a result.

Bay St. George South Area Development Association $68,560
A continuation of the existing sheep dairy pilot in Robinsons, the emphasis of this initiative is to enhance marketing and cheese production and determine the long-term viability of the industry. This project will determine if extra economic wealth generated from the sale of dairy products would complement lamb and wool sales to allow sheep farming to become a stand alone enterprise.

INFORMATION TECHNOLOGY
Capital Coast Development Alliance $325,000
An e-commerce pilot project proposed by the Avalon Development Alliance will facilitate the ability of 34 small businesses in tourism and small scale manufacturing to become e-commerce capable. The project encourages e-commerce adoption and will develop leading business models in areas such as marketing, distribution, production, service and customer relationship management for adoption by government and industry associations to support the transition of businesses into the knowledge-based economy.

Media contact:

    Heidi Bonnell, Office of the Premier, (709) 729-3960

    Doug Burgess, ACOA (709) 772-2935

2000 07 24                       12:45 p.m.