The new funding programs are aimed at providing the financial means to assist organizations interested in the province as a place to invest and establish operations in Newfoundland and Labrador.

A business attraction fund of $25 million will provide for large-scale, strategic investments in business ventures and infrastructure for the purpose of attracting business to Newfoundland and Labrador. Through this fund, government will be able to provide loans and equity investments to companies interested in conducting operations in the province.

In addition to the business attraction fund, government has also committed $7 million for a grants fund. This non-repayable fund is designed to assist with start-up and initial operational costs for large-scale companies setting up business in the province.

The focus of the grants fund will be on bridging the relocation and start up costs of new operations in Newfoundland and Labrador, and establishing sustainable, strong industries in this province.

As the minister of a department that has a mandate of facilitating the attraction of major business across the province and across sectors, the new funding programs represent a critical milestone to attract investment and position the province as the preferred choice for business operations.

Budget 2007 is a testament to the benefits of fiscal responsibility. Some of the many benefits include a record surplus of $261 million, the largest personal income tax reductions in the province�s history, and the reduction or elimination of over 170 fees resulting in an annualized investment of $3.4 million in the provincial economy.

Budget 2007 is a significant financial, economic and social achievement for Newfoundland and Labrador, and supports government�s vision for a prosperous province with a self-reliant people.

2007 05 10                                                     1:55 p.m.