Rural development strategy focuses on diversification and strengths

Trevor Taylor, Minister of Innovation, Trade and Rural Development and Minister responsible for the Rural Secretariat, today responded to comments made over the past several days by the Opposition regarding rural development in Newfoundland and Labrador.

�The people of this province deserve to have an accurate picture of what this administration is doing to help rural Newfoundland and Labrador, so they are not swayed by the political rhetoric of the Opposition,� said Minister Taylor.

After gathering input from businesses, individuals, economic development groups and industry associations throughout the province, government announced a Comprehensive Regional Diversification Strategy (CRDS) for the province in March 2005. The strategy is based upon principles such as sector development, building upon the strengths of each region of the province, and helping ensure programs and tools are in place to support sustainable business development throughout the province.

�One size doesn�t fit all when it comes to economic development,� said Minister Taylor. �That is why we are taking an approach that focuses on the strengths of each region and putting the tools in place to build on those strengths, such as funding for businesses and economic development groups, and supporting the development of necessary economic infrastructure.�

Since government announced CRDS last year, it has provided over $11 million in assistance to companies and economic development organizations. Of that amount, almost $5 million was provided through the Small and Medium-sized Enterprise Fund (SME Fund) for loans and equity to assist small businesses. Over $6 million in non-repayable contributions was provided to not-for-profit economic development agencies, such as regional economic development boards, chambers of commerce, municipalities and tourism associations, for initiatives that enhance regional economies and provide jobs.

Minister Taylor cited several examples of rural initiatives supported by this government. The recently-opened water bottling plant in St. Anthony, Canada Ice Inc., is in operation partially as a result of a $250,000 investment from the province�s SME Fund. Dynamic Air Shelters were given EDGE status and have established a production facility in Grand Bank. The company expects to create 25 full-time, permanent positions in the short term, while long-term projections include upwards of 100 employees. Government provided an investment of almost $100,000 to Versatile Stones in Centreville to help establish a stone and brick manufacturing operation, providing jobs to people in the region. Government has also invested three quarters of a million dollars in various fur farming operations throughout the province that provide jobs to people in rural areas.

The minister said tens of millions of dollars were invested, in the last budget alone, in agrifoods and agriculture, the fishery, transportation and municipal infrastructure, mining, tourism and aquaculture.

Aquaculture is a strategic growth sector for the south coast of the island. Towns such as Harbour Breton, Bay d�Espoir and St. Alban�s have and will benefit from investments made in aquaculture by this government. This government developed the Aquaculture Working Capital Loan Guarantee Initiative to promote the continued development of the province�s salmonid aquaculture industry. In 2005, government approved a loan guarantee of up to $7.2 million for Natures Sea Farms Inc. to help build their south coast operation, which has facilities in the Pool's Cove, Bay d'Espoir/Gaultois Passage and St. Alban's areas. In 2006, government will invest another $4.2 million, more than doubling last year�s expenditures, to assist the sector expand at a quicker pace. This includes $3.5 million this year, as part of the three-year, $10 million Aquaculture Capital Investment Program to help attract new investment and expand existing mussel and/or finfish operations more rapidly. It is projected the program will add approximately 150 full-time jobs to the industry within the next two years. As well, government provided $410,000 for directed industry assistance programs, including the Aquaculture Innovation, Marketing Intelligence and Human Resources Development programs. Commercialization of cod aquaculture is another initiative government is pursuing. Developing cod as a major farm species is a high priority in Newfoundland and Labrador and has a significant level of potential for the province. Government has invested $500,000 to help further the progress of this initiative, and we will match this investment over the next three years, for a total of $2 million.

�A lot of work is being done every day by government, businesses, communities, and economic development and industry associations to strengthen and diversify the economy of this province � work the Opposition neglects to mention,� said the minister. �Work in manufacturing, aquaculture, tourism, agriculture and agrifoods, information and communications technology, marine technology, for example, is happening in communities all throughout this province. The Opposition�s comments, while aimed at criticizing government, only serve to diminish the hard work being done by those groups.

�When the MHA for Grand Bank was the Minister of Industry, Trade and Technology, she acknowledged the difficulty in diversifying the economies of rural Newfoundland and Labrador, and that building businesses and attracting investment to rural areas wasn�t easy. It�s very convenient for her to now have all the answers and to criticize the work being done to build our economy.�

�There is no question we are facing challenges in some rural areas right now; it�s happening in rural regions across Canada and around the world. Export-based industries in Canada, including the fishery and forestry, have been particularly hard hit because of market conditions, the high Canadian dollar and the rising cost of energy, and industries in this province have not been spared,� said Minister Taylor. �That is why it is critical we work together to identify opportunities to diversify our economy. Building diversified economies is going to take time, but it has to be done right, and input from the community and regional levels is crucial in this process. Making the issue political, based on unfounded rhetoric, doesn't help.�

Media contact: Lynn Evans, Communications, (709) 729-4570, 690-6290

2006 08 15                                 3:20 p.m.