Minister comments on benefits of e-commerce pilot project

Industry, Trade and Technology Minister Sandra C. Kelly said she is pleased that $325,000 has been allocated for a new e-commerce pilot project, which was announced today by Premier Brian Tobin and George Baker, Minister of Veteran Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), as part of a $4.8 million federal-provincial investment in regional development initiatives.

The e-commerce initiative is being developed by the Avalon Development Alliance, representing four regional zones, and Operation ONLINE, and will help 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 use by government and industry associations to support the transition of businesses into the knowledge-based economy.

"I applaud the efforts of the Avalon Development Alliance to use innovation to enhance economic development. E-business and e-commerce are at the forefront of the technology industry worldwide, so I am pleased that this funding has been identified to help local companies to use this technology to grow their businesses," said Minister Kelly. "As it develops, I know that this pilot project will encourage increased e-business adoption by small and medium sized companies throughout our province."

The e-commerce initiative is one of 19 long-term economic development projects announced today, valued at $6.2 million, of which $4.8 million is provided under the Economic Development Component of the Fisheries Adjustment and Restructuring Initiative. The projects are part of the three-year $81.25 million Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) 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: Jacqueline Simon, Director of Communications, (709) 729-0050.

2000 07 24             4:45 p.m.