Government to assist areas with extraordinary economic and employment circumstances

The provincial government is launching an initiative to provide assistance to areas of the province where significant numbers of people have not been able to find work or enough work to support their families, and where entire communities are in distress as a result, Beaton Tulk, Minister of Industry, Trade and Rural Development, announced today.

Minister Tulk said that $2 million is being provided to target areas where circumstances are creating hardship for entire families and communities. The funding will be allocated on the basis of need, with the active involvement of MHAs who will have a critical role to play in working with communities and towns to ensure that those in greatest need will benefit from the available resources.

"Government does not have and does not plan to introduce a province-wide program that addresses the needs of each and every individual who requires additional work to qualify for EI, but is always sensitive to extraordinary circumstances in the province as they may evolve over time. While our overall economy remains strong and continues to grow, we recognize that there are pockets or areas within the province where circumstances justify government intervention and our fiscal position can accommodate," said Minister Tulk. "We don�t have a province-wide problem that would justify a province-wide government intervention. In fact, the overall employment picture in the province is better now than it�s ever been. But we do have areas of concern, and we intend to act accordingly."

The $2 million available for assistance is being provided by the Department of Industry, Trade and Rural Development from its existing budget, where unanticipated savings have been identified from slower than expected cash flow payments under various federal-provincial economic development agreements.

Minister Tulk said that project selection under this initiative will be determined on a case-by-case basis, in consultation with MHAs.

"This will help address extraordinary short-term needs in selected areas within the province, but I also want to emphasize that this is not a substitute for longer-term strategic investments in our economy which we intend to continue to pursue as part of the Renewal Strategy for Jobs and Growth," he said.

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

2001 11 14                     11:05 a.m.