NLIS 2
June 6, 2001
(Industry, Trade and Rural Development)

Update issued on regionalization initiative

Deputy Premier Beaton Tulk, Minister of Industry, Trade and Rural Development, and Forest Resources and Agrifoods Minister Rick Woodford today provided an update on government's regionalization initiative.

"Moving selected government services to growth centres across the province will make government more accessible to a larger number of residents, capitalize on the strengths that exist in various regions, and spread the economic benefits of government across the province," said Minister Tulk. "This initiative responds directly to what government heard during the Jobs and Growth consultation."

"Training is well under way for individuals in Grand Falls-Windsor who have been hired to work with MCP and the service will be up and running on schedule at the beginning of July," said Minister Tulk.

Other services which will be opening in their new locations in July include the Aquaculture Branch of Fisheries and Aquaculture in Grand Falls-Windsor; the Fire Commissoner's Office in Deer Lake; the Public Libraries Board in Stephenville; the Agrifoods Branch of the Department of Forest Resources and Agrifoods in Corner Brook; and the Portfolio Management Division of Industry, Trade and Rural Development and the Credit Union Guarantee Corporation in Marystown. 

The Parks Division of Tourism, Culture and Recreation will open its offices in Deer Lake in early August and Air Services will be fully operational in Gander by early to mid-fall.

"The Inland Fish and Wildlife Division of Tourism, Culture and Recreation will have a presence in Corner Brook in July," said Minister Tulk. "The division will be fully operational in the fall after tenders are called for permanent office space."

The regionalization initiative involves the transfer of 278 government positions affecting 239 individuals who occupied these positions when the initiative was first announced. 

"Government has taken special steps to accommodate these individuals and minimize the impact of this initiative," said Minister Tulk. "We have been successful in redeploying 110 people elsewhere in the public service. Another 56 will be moving, while 19 have decided to retire. Eighteen people decided not to avail of the services government offered and 36 employees have not yet been accommodated." 

Government estimates that the one-time costs associated with implementation of the regionalization initiative will total approximately $5.4 million. That figure includes $3 million for transition costs including one-time moving, staff training and equipment costs, and $2.4 million for human resource related initiatives including severance and voluntary departure costs.

There will be annual lease costs of approximately $1.2 million for office space in the new locations. Minister Tulk pointed out that government would have to incur costs for leasing office space and other facility costs regardless of where its offices are located.

To acquire hanger facilities in Gander, government will lease an existing hanger for $672,000 per year, which will decrease to approximately $340,000 if government renews the lease beyond the base 10-year term. "The cost of the lease is offset by $150,000 a year in operational costs that will be saved by moving Air Services to Gander," said Minister Woodford.

One of the many benefits associated with regionalization is the addition of new agrifoods and wildlife laboratories at the College of the North Atlantic's campus in Corner Brook. "This is a 
$2 million investment which will build on the college's establishment of a centre of excellence in the natural resources sector and result in lasting educational benefits for its students," said Minister Woodford, noting the new lab in Corner Brook will alleviate the need to replace aging wildlife office and laboratory space in St. John's, a situation government would have had to address in the coming years.

"Government makes no apologies for investing in the economic development of rural Newfoundland and Labrador," said Minister Tulk. "Government has always been prepared to invest in this worthwhile initiative. We have tried to keep costs to a minimum by taking a prudent, effective and efficient approach to implementing this initiative."

Regionalization of government services supports the development of centres of excellence in such areas as aviation in Gander, natural resources in Corner Brook, and aquaculture development in Grand Falls-Windsor, said Minister Woodford.

"While the province overall has been experiencing strong economic growth and that growth is expected to continue, not all regions are benefitting to the same degree from our economic progress. Significant economic challenges remain, particularly in rural areas," said Minister Tulk. "The regionalization initiative is one of many government initiatives intended to ensure there is a more equitable sharing of economic growth in all regions."

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

2001 06 06                                              1:30 p.m.