NLIS 27
March 21, 2005
(Executive Council)
(Innovation, Trade and Rural Development)
Economic growth and
diversification: An investment in our future
The future success of Newfoundland
and Labrador hinges on strategic investments that grow and diversify
the economy, while optimizing opportunities and building on proven
strengths. Premier Danny Williams, also Minister responsible for
Business, and Kathy Dunderdale, Minister of Innovation, Trade and
Rural Development and Minister responsible for the Rural
Secretariat, today announced a number of Budget 2005 initiatives
that focus on innovation, and fostering and sustaining economic
growth and diversification.
Premier Williams said that small and medium-sized businesses (SMEs)
play the lead role in creating employment and income in this
province. "Over the past year, government has been laying the
groundwork to create an environment which promotes the growth of
small and medium-sized businesses," said Premier Williams. "I know
the challenges associated with starting and growing small companies,
and I am confident that our initiatives to assist this sector will
result in more successful and prosperous businesses in Newfoundland
and Labrador."
Minister Dunderdale said that the future of the province lies in
economic development. "This government has developed a budget which
meets challenges head on and maps an exciting course for the
province�s future," she said. "Our government is committed to
addressing the challenges businesses face, particularly in rural
areas. For example, access to capital is key for these businesses,
and Budget 2005 makes significant strides in addressing this and
many other concerns."
SME Revolving Fund
Government will establish a $10 million revolving fund to provide
loans and equity investments to small and medium-sized businesses.
The financing will allow eligible businesses the opportunity to
start up and expand, thereby helping them create and retain
long-term sustainable jobs. To establish the revolving fund,
government has added $7.9 million to the $2.1 million previously
allocated for the Seed Capital Equity Program, for a total budget of
$10 million. Details on program criteria will be released in the
coming weeks.
The fund will be administered through the Business Investment
Corporation (BIC), and the revenue collected from the fund will be
retained by the BIC for reinvestment. The fund will target strategic
growth sectors, such as manufacturing with special emphasis on
value-added production, IT, secondary processing, aquaculture and
tourism. In particular, the fund will target businesses which have
export potential and need assistance to enter or expand in external
markets.
Business and Market Development Program
In Budget 2005, government has also doubled the budget for the
Business and Market Development Program (BMDP) from $500,000 to $1
million. The increase provides more assistance to new entrepreneurs
and expanding small businesses to pursue new business ideas and new
markets, including product development, implementing market
strategies and advancing new technologies.
Centre for Environmental Excellence
In moving forward with its Blueprint commitment to create the Centre
of Environmental Excellence in Corner Brook, government is
allocating $500,000 in Budget 2005 for a master plan and feasibility
studies. Working with Memorial University's Sir Wilfred Grenfell
College and the Corner Brook campus of the College of the North
Atlantic, government will build on the significant environmental
industry activity underway in the western region of the province to
create the centre and anchor Newfoundland and Labrador as an
international leader in applied environmental research and
development.
Innovation Strategy
"Government is meeting its Blueprint commitment to develop an
innovation strategy for the province, a strategy that will take into
account the needs of all the regions of the province," Minister
Dunderdale said. "Government has allocated $1 million in Budget 2005
for the implementation of the provincial innovation strategy."
The strategy is currently being developed in cooperation with the
federal government, the Newfoundland and Labrador Association of
Technology Industries (Nati), major firms in the province, Memorial
University, College of the North Atlantic, regional development
agencies and other key stakeholders.
Ireland Business Partnerships
In November, the provincial government announced it would increase
funding for the Ireland Business Partnerships by $200,000, to
$300,000, to increase efforts to identify, foster and promote trade
and partnership opportunities with Ireland in the areas of business,
education and culture. Budget 2005 continues that funding
commitment.
"These initiatives complement others we have taken including red
tape reduction and our branding strategy. They will help increase
the province�s competitiveness with other jurisdictions and help
resolve access to capital problems faced by businesses," said
Premier Williams. "This funding helps fulfil government�s mandate to
assist SMEs in targeted growth sectors throughout the province, in
their startup and development, thus helping create long-term,
sustainable jobs."
These are the latest of several initiatives which demonstrate
government's commitment to providing an array of tools to support
the growth and development of businesses in the province.
Media contact:
Elizabeth Matthews, Premier�s Office, (709) 729-3960, 690-5500
Lynn Evans, Innovation, Trade and Rural Development (709) 729-4570,
690-6290
2005 03 21
3:30 p.m. |