NLIS 7
March 19, 2002
(Finance)
(Fisheries and Aquaculture)

 

Results of a joint study estimating economic value of marine, coastal and ocean resources

The federal and provincial governments today released the results of a joint study estimating the economic value of marine, coastal and ocean resources of Newfoundland and Labrador. It is the first study of its kind ever conducted in the province.

The provincial Department of Finance (Economics and Statistics Branch) conducted the study for Fisheries and Oceans Canada with support from the provincial departments of Fisheries and Aquaculture and Environment.

The report - Estimating the Value of the Marine, Coastal and Oceans Resources of Newfoundland and Labrador - is based on data from 1997-1999. It examined seven private sector industry groupings and the expenditures of more than 30 federal and provincial public sector departments and agencies.

The study concludes that oceans-related activity, including spin-off benefits, accounted for 26.5 per cent of total gross domestic product in the province over this period.

"Canada is an ocean nation whose economy, environment and culture are inextricably linked to the oceans and that is particularly true in Newfoundland and Labrador," said Robert G. Thibault, Minister of Fisheries and Oceans. "This research confirms what we�ve always suspected about the importance of the oceans sector."

"The most significant industries in terms of GDP were offshore oil and the fishery which, combined, accounted for 75 per cent of the oceans sector GDP impact," said Joan Marie Aylward, the provincial Minister of Finance.

"This report is an excellent example of collaboration between both orders of government and cooperation of departments within each level of government," said Gerry Reid, the provincial Minister of Fisheries and Aquaculture. "This data will help both levels of government develop policy and make management decisions for the future."

The oceans sector includes the following industries: oil and gas; fishery; aquaculture; shipbuilding and ship repair; marine tourism and recreation; marine transportation and infrastructure (including ports and harbours); and oceans technologies (marine IT, communications, environment biotechnology).

The study found that oceans-related activity accounted for 44,400 person years, or almost 23 per cent of total employment in the province during the 1997-1999 period. The largest private sector employers were the offshore oil industry and the fishery which, combined, accounted for 69 per cent of the total oceans-related employment.

The study also provides baseline and benchmark data from which future trends and growth can be measured, and from which statistics and other information to develop policy can be derived.

The study area included the coastline and inshore water areas, as well as activity in offshore areas. The research examined both industries that extract ocean resources, such as oil production and the fishery, and industries that use the ocean as a medium of movement, operation or innovation.

Two economic analysis tools of the Department of Finance - the Newfoundland and Labrador Econometric Model and the provincial Input-Output Model - were used to determine economic impacts.

The report is available on the web at: www.economics.gov.nf.ca

Media contact:

Beth Ryan, Communications, Fisheries and Oceans Canada, (709) 772-7627
Tara Laing, Communication, Finance, (709) 729-0329
Elizabeth Matthews, Communications, Fisheries and Aquaculture, (709) 729-3733

2002 03 19                          4:50 p.m.


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