Minister Announces Investments in Resource Development

Ed Byrne, Minister of Natural Resources, says the investments in Budget 2004 reflect government�s commitment to the development of the province�s natural resources for the people of Newfoundland and Labrador.

"Our natural resources make a significant contribution to the economy of this province," said Minister Byrne. "Our approach is to ensure that these resources are developed in a manner that is sustainable and that maximizes benefits. And, while my department will share the challenge of fiscal restraint, we are making strategic investments in this fiscal year to reach those objectives."

Minister Byrne outlined some of the key budget highlights for the Department of Natural Resources. These include:

• Government will invest in the continued development of the agricultural industry in this province with $7.5 million in federal-provincial funding through the Agricultural Policy Framework agreement. This is the second year of this five-year, $32.5 million agreement with programming in five elements: business risk management, food safety and quality, environment, science and innovation, and renewal.

• Government will increase funding to $500,000 for the Land Consolidation Program recognizing its importance to the development of the agriculture industry. Through this program, non-farm landowners and retiring farmers sell their agricultural-zoned land to the province which is then sold/transferred to farmers as agricultural leases under the Agriculture Crown Land Leasing System.

• A mainstay of the forestry management efforts in this province is the silviculture program which will be funded at $7.3 million. Of that amount, $5.3 million will be invested for programs on Crown land and for the operation of the Wooddale Provincial Tree Nursery and the Goose Bay regional nursery. With the remaining $2 million, government will partner with Abitibi-Price Consolidated and Corner Brook Pulp and Paper Ltd. for silviculture programs on their respective limits. Each company contributes $2 million bringing the total investment in this year�s program to $11.3 million.

• Government will invest $3.5 million towards the construction of resource roads which provide access to hard-to-harvest forestry stands and for forest access in Labrador. This investment is critical to ensure access to timber supply and to ensure infrastructure is developed to continue with the development of the forest resource in Labrador.

• The Mineral Incentive Program will be maintained with an investment of $1.6 million. This will allow the continuance of the Prospectors Assistance, the Junior Company Exploration Assistance and the Dimension Stone Incentive components. This program is critical to leveraging private sector investment in mineral prospecting and exploration in Newfoundland and Labrador.

• Last year�s record land sale, the just announced 2004 Call for Bids, ongoing work on the White Rose Project, natural gas development opportunities and Laurentian sub-basin potential all speak to the significant growth in the province�s offshore petroleum sector. Such activity requires a strong regulator, one that is properly resourced to respond on behalf of all stakeholders. This is why government has not only continued, but enhanced, its level of support for the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) through increased funding of $330,000.

• The preparation and implementation of a comprehensive Energy Plan is a priority for this government. Work has already started and we are making an investment of $80,000 this year to focus more attention to this effort. Our goal is to have an Energy Plan that is well-thought out, well-articulated, and one that will be developed in full consultation with the people of this province.

"This government has outlined its direction for the coming year. Growing our economy to create more jobs is among our priorities," said Minister Byrne. "There are opportunities in our petroleum, energy, mineral, agrifood and forestry sectors and each holds great potential. Our commitment is to ensure those opportunities become realities."

Media contact: Carmel Turpin, Communications (709) 729-5282

2004 03 30                                         3:10 p.m.