Investments in Rural Development a Priority for Government 

The growth and success of rural economies have been a priority for government over the past three years, and will remain so in the future, the province�s Innovation, Trade and Rural Development minister reiterated today. 

The Honourable Trevor Taylor, Minister of Innovation, Trade and Rural Development, and Minister responsible for the Rural Secretariat, said when this government came into office, it developed and began implementing the Comprehensive Regional Diversification Strategy (CRDS) for the province.  

�Under the previous administration, support for economic development was practically non-existent.  Lack of funding was something we heard time and time again from businesses and economic development groups,� said Minister Taylor.  �We went out and talked to people involved in economic development, and found out what they needed in the way of programs, funding and other supports.  Over the past three years, we�ve responded to those needs.  We now have a full array of financial and non-financial programs for both businesses and economic development groups, and are working side by side with them to develop their economies in a coordinated way.  That is how we will succeed as a province - by putting the right supports in place and by working together on sound, reasonable and sustainable ideas.�

Minister Taylor said since November 2003, the Department of Innovation, Trade and Rural Development has provided almost $17 million in support to companies and economic development organizations to develop sectors such as agrifoods, manufacturing, value-added resources, tourism, culture, and knowledge-based services.  

Of that amount, almost $6 million was provided through the Small and Medium-sized Enterprise Fund for loans and equity to assist small businesses in strategic growth sectors and businesses which have export potential and need assistance to enter external markets.  An additional $2.1 million was provided through the Business and Market Development Program to assist small businesses with funding to help them acquire the necessary expertise to pursue new business ideas and new markets for their products or services. Provincial funding from these two programs leveraged approximately $26 million from other sources. 

Almost $8.7 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. The investment from the Provincial Government leveraged over $31 million from other sources. 

Examples of the types of projects government has supported include:

• $61,537 to the Discovery Trail Tourism Association to develop a marketing campaign to support the shoulder season extension pilot project.
• $250,000 to the Grand Bank Heritage Society for the construction of the Provincial Mariner=s Memorial and Garden.
• $20,000 to the College of the North Atlantic, Burin Campus, to support research on the use of ocean wave technology.
• $146,700 to the Blueberry Farm Development Corporation to assist with the development of blueberry farms in the central and eastern regions.
• $71,059 to the Indian Bay Ecosystem Corporation to establish the Indian Bay Centre for Co-operative Ecosystems Studies.
• $984,000 to the Bay St. George Campus of the College of the North Atlantic to establish training capacity in film and video production and in paramedicine.
• $167,366 to the Hawke=s Bay Town Council to assist with the construction of a salmon interpretation centre at the Torrent River Fishway. 
• $154,059 to the Town of Roddickton to develop a new Natural Heritage and Resource Centre, which will provide a focal point for tourism information and highlight the area�s unique culture and natural heritage.
• $132,332 to the Torngasok Cultural Centre to assist with the restoration and stabilization of the Moravian Mission building and historic complex at the Hebron National Historic Site.
• $39,320 to the White Wolf Snowmobile Club to assist with the Labrador Endurance Race. 
• $14,269 to Fab Tech Industries of Glovertown to develop a promotional and marketing package and to assist the company to travel to Greenland to market its work boats and pleasure craft.  
• $100,000 loan to Island Manufacturing and Galvanizing of Bell Island to purchase equipment to help with export efforts.  
• $34,020 loan to D&A Enterprises Incorporated, which operates Beothuck Family Recreational Vehicle Park, to upgrade 23 non-serviced camping sites.

To encourage and harness innovation throughout the province, government developed an innovation strategy, supported by a $3 million commercialization fund for businesses and a $2 million innovation enhancement fund for not-for-profit economic development organizations and academic institutions.  In addition to that funding, Minister Taylor said tens of millions of dollars have been invested by the Provincial Government into agriculture and agrifoods, mining and aquaculture initiatives, including a $10 million investment in Cooke Aquaculture, a $7.2 million loan guarantee for Natures Sea Farms and $3.5 million to purchase enterprise allocations for the Arnold�s Cove fish plant.  

�All of these investments being made by government come with one goal in mind, and that is to create employment in rural areas.  By helping businesses to create attractive, well-paying jobs for the people of the province, we can address outmigration from our province,� said Minister Taylor.  

Minister Taylor said outmigration is a concern for government but there is reason for the people of the province to be optimistic.  He said labour force indicators have improved over the past three to four years.  The unemployment rate in 2006, at 14.8 per cent, was the lowest it has been in 25 years.  The labour force in Newfoundland and Labrador has increased, unemployment is declining and there is more work available today than before the cod moratorium and recession of the early 1990s.  People are working for longer periods during the year and fewer people are working in short term jobs.  He said government initiatives such as the Skills Task Force, the Immigration Strategy, along with the Comprehensive Regional Diversification and Infrastructure strategies will work hand in hand to develop rural areas and help curb outmigration.  

Minister Taylor also said that input from individuals, communities and regions is crucial to successful economic and social development.  The Rural Secretariat regional and provincial councils are providing a means for regions to provide advice directly to government on rural issues.  The councils are important mechanisms for ensuring government and communities work together to advance and support long-term sustainability. 

�While this administration has accomplished a lot in three years, our work is by no means done,� said Minister Taylor.  �We will continue to work tirelessly to create real opportunities here in Newfoundland and Labrador.  We will continue to work with individuals, businesses, communities and regions to identify opportunities, to secure investments and to secure our future.� 

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Media contact:
Lynn Evans
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
LynnEvans@gov.nl.ca