Budget acts on Jobs and Growth agenda

Budget 2001-2002 acts on the direction outlined in the recently released Final Report on the Renewal Strategy for Jobs and Growth.

"Considerable progress has already been made in a number of areas that evolved from the Jobs and Growth consultations - some of which we announced in last year�s budget when the Interim Report on Jobs and Growth was released," said Deputy Premier and Industry, Trade and Rural Development Minister Beaton Tulk. "Today�s budget contains further concrete measures to advance the Jobs and Growth agenda, in keeping with the directions outlined in the Final Report that I released earlier this week."

Some highlights from the 2001-02 Budget which reflect government�s commitment to the early implementation of the final report, and which build on initiatives already taken, include:

• An increase in the exemption threshold for the payroll tax from $400,000 to $500,000, to stimulate expansion and new employment in small businesses. This extends the significant increase in the exemption threshold that was adopted in last year�s budget � from $150,000 to $400,000 � and now means that almost 95 per cent of all businesses in the province are no longer subject to the payroll tax.
  
  
• A new investment of $500,000 to accelerate implementation of the Strategic Literacy Plan, with a particular emphasis on rural needs.
  
  
• The establishment of a $2 million Student Investment Fund to give post-secondary students valuable work experience and to assist them in meeting the costs of a post-secondary education.
  
  
• A 10 per cent reduction in tuition rates at Memorial University and enhancements to the Student Aid Program to make post-secondary education more affordable and accessible to our young people, especially those from rural Newfoundland and Labrador.
  
  
• Significant resources for the new Department of Industry, Trade and Rural Development to help it achieve its economic development mandate in all areas of the province. The budget for the new department will be more than $60 million.
  
  
• An allocation of $50 million in the budget in the Department of Municipal and Provincial Affairs for infrastructure and municipal capital works.
  
  
• Additional resources in the order of $10 million to enhance and extend municipal debt relief to communities most in need, in order to strengthen the capacity of local governments to maintain viable communities and capitalize on new economic growth opportunities.

"These specific measures are a tangible expression of government�s commitment to continued implementation of the Jobs and Growth agenda to further our economic goals for the benefit for all Newfoundlanders and Labradorians," said Minister Tulk.

For details on the announcements highlighted here, please refer to news releases from the following departments:

• Education
• Finance
• Industry, Trade and Rural Development
• Municipal and Provincial Affairs
• Youth Services and Post-Secondary Education

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.

2001 03 22          4:55 p.m.