|
NLIS 43
March 27, 2003
(Industry, Trade and Rural Development)
Creating a stronger climate
for investment, innovation and job growth in
Newfoundland and Labrador
New measures to support small business
growth, industrial research and development, the attraction of new
businesses to the province, and regional economic development form major
parts of Budget 2003.
"Government has an aggressive and clear
action-oriented agenda to grow our economy � the Renewal Strategy for Jobs
and Growth," said Minister Foote. "The plan, which includes a
strong rural focus, is producing real results for our province and will
continue to provide the direction for the department�s activities in
2003-04. A number of new strategic initiatives will also be implemented this
year to build an even stronger economic environment for investment,
innovation and job growth throughout Newfoundland and Labrador."
Small Business
Government is announcing new investments to
encourage the growth of small businesses in the province. Government will
immediately reduce the payroll tax for small businesses, ease corporate
income taxes on small businesses, open up new sources of capital for the
private sector through various venture capital tax incentives, and reduce
regulatory "red tape" faced by the business community. These
initiatives build on a number of new small business development measures
implemented in recent years through the Renewal Strategy for Jobs and
Growth.
Research and Innovation
Government will invest $5 million to
establish an Industrial Research and Innovation Fund to leverage significant
new research and development investments from federal institutions and the
private sector. The fund will help ensure the province remains competitive
in the global economy and captures new economic opportunities available to
Newfoundland and Labrador.
New Business Attraction Agency
Government will establish a new Business
Attraction Agency to entice new investment, new companies and new industries
to the province in strategic growth sectors of the economy. Government will
contribute $1.5 million annually to this initiative and will also seek
financial participation from the private sector.
"This new initiative will build on and
incorporate the success achieved to date by NETWORK Newfoundland and
Labrador, our joint venture with Aliant Telecom to attract new customer
contact centres to the province, and will also assume responsibility for the
recently announced Near Shore IT Development Initiative for which Aliant and
the province each committed $750,000 over three years," said Minister
Foote.
Regional Economic Development
Government will continue to make significant
investments in regional economic development and has budgeted approximately
$9 million to implement a number of industry and community initiatives that
have been approved under the Canada-Newfoundland and Labrador Comprehensive
Economic Development Agreement (CEDA). Government has budgeted an additional
$5.5 million for new economic development initiatives as its contribution
toward a proposed $20 million extension of CEDA. Budget 2003 also includes
$350,000 to host RuralEXPO in 2003.
Media contact: Tansy Mundon, Communications,
(709) 729-4570.
2003 03
27
4:20 p.m.
|
