Newfoundland and Labrador Regional Minister the Honourable Loyola Hearn and Newfoundland and Labrador Finance Minister the Honourable Tom Marshall announced today that the province will receive $23.4 million from the Government of Canada as part of the new national Community Development Trust. This funding will be used to invest in communities and workers suffering economic hardships.

"We are looking forward to accessing the money as soon as possible to put towards provincial priorities," said Minister Marshall. "With millions of dollars already committed by the Provincial Government to silviculture, forestry inventory and transportation, Fishing Industry Renewal, and aid for displaced workers due to the mill closure in Stephenville, the $23.4 million will further help rural communities adjust to the impact of global economic volatility."

On January 10, 2008, the Government of Canada announced the $1 billion Community Development Trust, funded from the projected 2007-08 federal budgetary surplus. A base amount of $10 million will be allocated to each participating province and $3 million to each participating territory. The balance of the funding will be allocated on a per capita basis. Implementing federal legislation received Royal Assent on February 5, 2008, which begins the trust�s three year lifespan.

"The Community Development Trust was a commitment by Ottawa to help the hard-working families and communities of our country influenced by international economic instability, and I am pleased Newfoundland and Labrador is taking advantage of this opportunity," said Minister Hearn. "The trust complements a number of federal initiatives designed to ensure a healthy Canadian economy for years to come."

The Government of Newfoundland and Labrador has agreed to respect Canada�s obligations under the North American Free Trade Agreement, the Softwood Lumber Agreement, and the World Trade Organization in administering their portion of the Trust funding.

The Government of Newfoundland and Labrador has identified several initiatives that will help affected rural communities and the workers who live there, particularly in regions such as the Great Northern Peninsula, the West Coast and Central Newfoundland, where the forestry sector has traditionally been a cornerstone of the economy. Some of these initiatives include:

• infrastructure development in support of opportunities in natural resources and other sectors; and
• diversification, research and development in such sectors as the fishery, forestry, tourism, and aquaculture

"The $23.4 million from the Community Development Trust will help supplement the work this government has done to support rural Newfoundland and Labrador and keep the Province moving forward," said Minister Marshall.

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