The Provincial Government is renewing its emphasis on two important industries with the official launch today of the Forestry and Agrifoods Agency (FAA) and related initiatives to address emerging priorities in these sectors.

"Forestry and agriculture are the economic drivers of many of our rural communities and we need to raise the profile of these industries and the products that are being made locally," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "With the creation of this agency, we are putting a renewed focus on ensuring the continued development, expansion and diversification of sustainable forestry and agriculture industries in rural Newfoundland and Labrador."

The agency, headquartered in Corner Brook, brings responsibility for forestry and agriculture under a chief executive officer (CEO), with support by assistant deputy ministers for each sector. These appointments were finalized in January.

Since its formation in October, the agency has focused on identifying strategies related to priorities and emerging opportunities, in consultation with people involved in these sectors. The agency is responsible for implementing the identified strategies and Budget 2007 reflects these priorities.

The province is investing an additional $4.8 million for forestry this year, for a total increase of $7.6 million in two years. This year�s investment will increase the capacity of the agency to manage the forest resource, develop forest sector opportunities and implement the forest sector strategies for Labrador and the island. The strategy for Labrador was completed and released last fall and the province is currently seeking Expressions of Interest to develop the proposal contained in the study. An independent consultant is currently developing a strategy for the island. The forest industry in this province is valued at $1.2 billion and employs 12,000 people directly and indirectly.

Budget 2007 also contains over $1.4 million in new investments for agriculture and agrifoods, for a total of $10 million in new funding in two years. The agency is responsible for assisting industry to overcome barriers to growth and development, as well as to grow and market secondary processing opportunities. For example, proposals are currently being reviewed for the completion of a study to determine the feasibility of private industry establishing primary and secondary production of milk in Central Labrador. The province�s agriculture industry is valued at $500 million a year and provides direct and indirect employment for 6,200 people, mainly in rural Newfoundland and Labrador.

Both sectors have identified a need for better public awareness of the importance of these industries to the provincial economy. A new consumer awareness campaign for the agriculture industry was also launched today to create stronger recognition of the local industry. The series of television and print ads, developed through extensive consultation with industry and the involvement of Agriculture and Agri-Food Canada through the Agricultural Policy Framework (APF), are designed to encourage people to buy fresh, local produce.

"Public awareness of the diversity and quality of products available from agriculture in the province is essential for the long-term sustainability and development our industry," said Mervin Wiseman, president of the Newfoundland and Labrador Federation of Agriculture. "Government's assistance and renewed focus on delivery of services is key to extracting the value that exists from this important renewable resource for the people of Newfoundland and Labrador."

Budget 2007 also contains $150,000 for the agency to implement a public awareness initiative for the forestry sector, in consultation with industry. The strategy is intended to educate people about the value of the forest resource and promote the wood products produced within the province, such as flooring, kitchen cupboards, dining room furniture and musical instruments.

"The Newfoundland and Labrador Lumber Producers' Association (NLLPA) is pleased with the Provincial Government�s efforts in quantifying the value of the forest industry as a significant economic contributor to rural Newfoundland and Labrador," said Christian Dingwall, president of the NLLPA. "Through this agency and a continued government focus on growing and diversifying the forest industry, we are confident that the people of the province will also come to realize the impact the logging and sawmill sectors have in many of our communities."

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

Budget 2007 Highlights: Forestry and Agrifoods Agency

• $250,000 for the Fruit and Vegetable Storage Assistance Program, which is part of a commitment in the Blue Print for the Future to invest $1 million in this area over four years. This program enhances the economic viability of farmers by providing them with the means to expand, upgrade and construct fruit and vegetable storage facilities, which are vital components of many farming operations.
• An additional $100,000 under the Agriculture Limestone Program, for a total of $442,300, which provides incentive to farmers to improve soil conditions as more farm land is put into production.
• $4 million for the Agriculture and Agrifoods Development Fund, which was established last year to encourage the development, diversification and expansion of large-scale agricultural projects. Funding is also being provided for a position to administer the program. This is the program under which the province has already made two investments of $1 million each to assist in the establishment of a premium ice cream line at Brookfield Dairies and a specialty cheese line at Central Dairies.
• An additional $300,000 for the Agriculture Access Roads and Electrical Program. Farmers will avail of the roads program for the construction and upgrading of new access roads that enable them to expand their operations by accessing new land. They can also use the additional funding for maintenance and the establishment of electrical services to a standard that is essential to the farming community.
• $167,000 towards the completion of the Forest Industry Competitiveness and Strategy Study. This review of the forest industry will enable government to accurately assess the current state and structure of the industry and provide a path for a new and sustainable industry that can compete and grow in the market place.
• An additional $1 million is being invested for silviculture activities throughout the province, for a total budget this year of $9.4 million. This will result in the planting of approximately 15 million tree seedlings this year.
• An additional $700,000 for resource road construction to enable better access to valuable timber. This brings the provincial forest resource road budget to $4.2 million and it provides commercial sawmill operations with the timber required to maintain production levels.
• $283,800 for a Comprehensive Research Program in support of Sustainable Forest Management to address ecological, social, environmental, and industry development challenges. This will result in improved science to manage the forest resource and will allow government to leverage additional funding from other research partners.
• $80,000 for a Gender Employment Equity Study to provide recommendations on how to improve recruitment in the forestry sector. The Forestry and Agrifoods Agency will develop a strategy to address any equity employment issues that may be raised through the study.
• $70,000 for dedicated helicopter patrols of the Quebec-Labrador border to enforce provincial wildlife legislation. It is anticipated that the undertaking of regular patrols will help deter illegal activity.

2007 05 23                                                    11:35 a.m.