$45 million in new funds for Newfoundland and Labrador�s 
Comprehensive Economic Development Agreement

Brian Tobin, Minister of Industry, and Premier Beaton Tulk today announced that $44.85 million will be injected into the existing Canada-Newfoundland Comprehensive Economic Development Agreement, bringing the total value of the agreement to $94.99 million. The agreement, which was signed Oct. 31, 1997, will continue to be cost-shared by the federal and provincial governments on a 70:30 basis, respectively. The term of the agreement, originally scheduled to expire on March 31, 2002, will now extend to March 31, 2003.

The focus of the new funds allows both levels of government to continue their commitment to high priority initiatives in order to capitalize on major opportunities within strategic growth sectors and to take advantage of new opportunities. At the same time, the agreement will assist key industry initiatives in the cultural and heritage sectors and support tourism marketing and infrastructure.

"For the past four years, the Canada-Newfoundland Comprehensive Economic Development Agreement has supported more than 260 projects in diverse areas such as tourism, technology, community economic development, human resources and entrepreneurship, and investment and trade," said Minister Tobin. "These investments have contributed to the revitalization of our economy. New funds which nearly double the total value of the Agreement will allow for new initiatives and new ideas to help further build our provincial economy."

"The additional funding will continue to augment other initiatives that help develop growth sectors of our economy, such as in tourism and our cultural and heritage industries," Premier Tulk said. "It is important that we not only continue the significant economic momentum that has been taking place in the province, but that we build on that momentum so that the economies of all regions of the province, particularly in rural areas, share in our strong economic growth."

The agreement�s existing four programs will receive additional funds to carry out their objectives and a fifth initiative has been added:

• Strategic Opportunities Program: The primary objective of this program is to respond effectively to key initiatives that are outside the normal parameters of existing federal and provincial economic development programs.
  
  

• Community Economic Development Program: Will enhance the impact of existing rural revitalization efforts based on the strategic economic plans developed by Regional Economic Development Boards.
  
  

• Technology Development Program: With emphasis on innovation and technology, will continue to capitalize on the high rates of growth in technology sectors of the national and world economies.
  
  

• Investment, Export Trade and Marketing Program: Will continue its focus on attracting international investment and developing the province�s export potential.
  
  

• Under the new tourism development and cultural industries initiatives, $11 million will serve to enhance the province�s tourism marketing efforts, improve tourism infrastructure and assist with key industry initiatives in the culture and heritage sectors.

Of the $11 million allocated for tourism development and cultural and heritage industry initiatives, $4.5 million has been designated specifically for cultural and heritage industries. "As this province has moved into the global market with its tourism product in the past decade, it has become increasingly obvious that our culture and heritage not only make us unique, but it is also a source of economic strength," said Minister Tobin. "Our investment in tourism, culture and heritage through this agreement will contribute to the further development of these important sectors to our provincial economy."

The Comprehensive Economic Development Agreement is managed jointly between the two governments, with the Atlantic Canada Opportunities Agency (ACOA) taking the lead for the federal government and provincially through the Departments of Industry, Trade & Technology and Development and Rural Renewal.

For further information, please contact:

Doug Burgess
ACOA
(709) 772-2935

Paula Dyke
Premier�s Office
(709) 729-3564

Heidi Bonnell
Office of the Minister of Industry
(613) 995-9001

2001 02 02                 12:35 p.m.

Canada/Newfoundland Comprehensive Economic Development Agreement

Amendment to Funds

Rationale

Globalization of trade and the pervasive effects of information technology are providing employment opportunities in the new economy. The prerequisites to this new economy include a flexible, educated labour force, a strong entrepreneurial business sector and a facilitative government sector.

In 1997, the Government of Canada and the Government of Newfoundland and Labrador agreed to work in partnership to advance their shared economic development objectives through the establishment of the Canada/Newfoundland Comprehensive Economic Development Agreement.

The five-year agreement enabled the federal and provincial governments to implement measures targeting strategic sectors with significant opportunity for growth. To date, the agreement has invested $36 million in 260 initiatives across the province.

Additional funds will extend the agreement over the next two years, and allow both levels of government to continue to revitalize and diversify Newfoundland and Labrador�s economy.

Objectives 

The objectives of the Canada/Newfoundland Comprehensive Economic Development Agreement are to: 

• Contribute to the expansion and diversification of the economic base of the province through the development of sustainable job growth and increased income opportunities;
  
  
• Promote public and private sector cooperation, which maximizes the return on public funds and leads to self-sustaining private sector opportunities;
  
  
• Provide increased opportunities for private sector investment, entrepreneurship and trade;
  
  
• Expand the competitive ability of the province through investment in key sectors such as, but not limited to, diversified manufacturing, tourism, ocean industries, and advanced technology;
  
  
• Contribute to the development of the human resources of the province; and
  
  
• Complement other federal and provincial programming.

Background

Cultural and Heritage Industries Element

The Cultural and Heritage Industries Element is one of three components to be introduced under the new Tourism Development Program of the Canada- Newfoundland Comprehensive Economic Development Agreement. The objective of the initiative is to assist in the sustainable development of the province's cultural industries and heritage resources. It builds on the accomplishment of the last agreement and will provide continued momentum of the development of these important industries. The primary focus will be on those projects which have significant economic development potential. Activities which will be eligible for funding may include, but are not necessarily limited to:

-Export market access and expansion.

-New product development.

-Implementation of strategic plans for sectoral organizations and heritage development.

-Support for key cultural and heritage tourism generators.

-Improving management practices.

-Training through mentorship.

-Professional development.

-Arts consulting services and initiatives.

-Arts outreach programs.

-Conservation measures.

-Enhancement of heritage presentation.

-Support for the conservation of our rich fishing heritage.

The Atlantic Canada Opportunities Agency, the Department of Canadian Heritage, the Department of Tourism, Culture and Recreation and the Cabinet Committee on Jobs and Growth have discussed with key members of the cultural and heritage industries over the past two years, their needs and priorities. Building on the information gathered through those consultations, the new directions of the Cultural and Heritage Industries Element has been designed to meet economic development priorities of both government and industry.

The initiative will be delivered jointly by the Atlantic Canada Opportunities Agency, the Department of Canadian Heritage, and the Department of Tourism, Culture and Recreation. Canadian Heritage will take the lead federal role in the evaluation and analysis of proposed projects which will be brought forward through an application process or as government-lead initiatives.

Total funding available to the culture and heritage industries under this new initiative will be $4.5 million over two years. Further consultations with the industry on directions and guidelines will be conducted shortly, followed by the development of application guidelines.