Budget 2008 Investments in Natural Resources, Business and Tourism Sectors Will Strengthen Province for Future Generations

Innovation, Trade and Rural Development
Tourism, Culture and Recreation
Natural Resources
Fisheries and Aquaculture
Environment
Business
April 29, 2008

Budget 2008 Investments in Natural Resources, Business and Tourism Sectors Will Strengthen Province for Future Generations

Innovation, quality-infrastructure, strong private sector engagement and a highly-skilled workforce are key pillars in building strong, competitive regions in today�s marketplace and positioning the province for the future. Budget 2008 incorporates those pillars and strengthens the Williams Government�s solid commitment to creating healthy, robust communities, with approximately $135 million in programs and services focused on sustainable development.

"We have made tremendous strides as a province," said the Honourable Trevor Taylor, Minister of Innovation, Trade and Rural Development. "Our economy is expanding from being primarily resource-driven to an economy that includes knowledge-based and value-added industries. This government has created a foundation for economic growth � not just in a single sector but across all sectors and regions of the province. Initiatives outlined in Budget 2008 reflect these developments and target programs focused on business assistance and leveraging our key attributes."

The Provincial Government has introduced a series of programs that are designed to strengthen local economies. These programs � such as the Regional/Sectoral Diversification Fund, Small-to-Medium Sized Enterprise (SME) Fund, and Commercialization Program � have enabled businesses and organizations to identify new markets, diversify products and services, and improve their overall competitiveness.

"We�re focused on shaping a strong economy for today and for future generations. To achieve this goal we have taken an active role in filling a void that organizations face when seeking capital and support, especially in rural communities," said Minister Taylor.

Natural Resources Supporting Rural Communities

Natural resource development has been the economic engine of the province for generations, especially in rural communities. These resources are continuing to play a critical role in fostering economic prosperity in the province.

Mining

Mining is a significant contributor to the growing provincial economy with an average of one new mine per year for the past four years, along with increased mineral exploration and shipments.

To maintain this momentum, Budget 2008 allocates:

$1 million for new geological mapping to better understand the province�s geology and attract continued investment in mineral exploration. This $1 million comprises the first year of a three-year $3 million program;

$2.5 million for the Mineral Incentive Program; and,

$300,000 to develop and launch a new Mineral Exploration Approval Management System.

"The value and quantity of mineral shipments are rising substantially in the province and Budget 2008 demonstrates our government�s strategic approach and long-term commitment to growing mineral exploration activity through targeted investment," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "These investments, coupled with the continued expansion of the mining sector, are creating employment opportunities and prosperity in many communities in the province."

Agriculture and Agri-Foods

Budget 2008 reflects the Williams Government�s 2007 Blue Book commitments to Newfoundland and Labrador farmers and their communities.

The province�s rapidly-developing cranberry industry will receive important new support in the form of $2.95 million in funding for the Cranberry Development Program;

Farmers will be able to access a $10 million Farm Loans Guarantee Program, which will help farmers secure capital from financial institutions to expand operations and become more competitive;

The development, diversification and expansion of large-scale agricultural projects will be assisted by the continued $4 million investment in the Agriculture and Agri-Foods Development Fund; and

A new $5.4 million Aleutian Disease Management Program will help mink farmers manage the disease through animal replacement, carcass disposal, disinfection, and biosecurity enhancement assistance.

Forestry

The forest industry is vital to the economy of rural Newfoundland and Labrador. This importance is reflected in Budget 2008 with an increase of $1 million in the Provincial Silviculture Program for the third year in a row and the continued $4.2 million investment in the resource roads budget to industry in accessing valuable timber. This is in addition to the $14 million for forestry initiatives to assist the industry compete in the global economy and to identify and develop specific new products and market opportunities.

Building a Sustainable Aquaculture Industry

In continuing its commitment to growing the province�s aquaculture industry, the Provincial Government is investing an additional $4 million in the Aquaculture Capital Equity Investment Program in Budget 2008, for a total allocation of $13.5 million.

In order to ensure appropriate stewardship of the province�s aquaculture industry, the Provincial Government is also creating a Division of Aquatic Animal Health within the Department of Fisheries and Aquaculture. A director position will be created to run the division from the new veterinary diagnostic facility in St. Alban�s. A total of $4.7 million was allocated to build this new facility in 2007. The facility is scheduled to be completed in 2009.

"This is an important step forward in ensuring that our industry will provide top quality aquaculture products to the world, while protecting our marine environment at home," said the Honourable Tom Rideout, Minister of Fisheries and Aquaculture.

In the interest of developing a sustainable aquaculture industry, the Provincial Government will invest $500,000 in Budget 2008 for the development of a strategy to address the infrastructure requirements of the province�s fast-growing aquaculture industry.

Ensuring a Sustainable Fishery

The Provincial Government will also continue with the implementation of its Fishing Industry Renewal Strategy in Budget 2008, with $5 million in allocations this year � of which $2 million is for the Fisheries Technology and New Opportunities Program. The additional $3 million will be invested this year in the strategy to implement a fish auction, seafood marketing council, fishing industry safety council, along with workforce adjustment. This is part of a total allocation of $15 million to implement the multi-year strategy. The Provincial Government�s total renewal undertaking is an estimated $140 million.

"The strategy has been instrumental in addressing the needs of the fishing industry and making it more sustainable for the future," said Minister Rideout.

As well, Budget 2008 allocates $330,000 for international trade initiatives. To date, the Provincial Government has achieved great success in pursuing trade initiatives such as the Autonomous Tariff Reduction Quota (ATRQ) which allows Canadian shrimp products to enter the European Union at a reduced tariff.

"Significant opportunities for trade liberalization in relation to Canadian seafood remain to be addressed in the global marketplace," said Minister Rideout. "This is particularly the case in the European Union.

Budget 2008 allocates $100,000 for sealing industry communications in national and international markets. This is the same level of investment that was made in communications for the industry in the previous two budgets.

Sustaining Our Environment for Future Generations

While the Provincial Government invests in economic development initiatives, it is focused on protecting the environment, providing safe and limiting any environmental footprint. The Williams Government has also made significant progress in recent years in improving the safety and quality of public water supplies through the implementation of the Multi-Barrier Strategic Action Plan for Drinking Water Safety. Budget 2008, through the Action Plan for Drinking Water Safety, will ensure that water is clean and safe in all communities.

"Our government is committed to address in a meaningful way the issues associated with clean drinking water," said the Honourable Charlene Johnson, Minister of Environment and Conservation. "Far too many communities live with sub-standard drinking water, which is a basic necessity. To significantly improve drinking water quality, we are allocating approximately $2.9 million over the next three years to create a strategy to tackle this issue in a way that will significantly improve the lives of residents in all communities."

The Williams Government also supports the need to reduce emissions, while maintaining prosperity and ensuring that issues of international competitiveness, employment, and economic growth are addressed.

To help deliver on these objectives, Budget 2008 allocates:

$1.025 million in 2008-09, and $925,000 in each of the following two years, for the development of community specific solutions which will create regional capacity for the installation, operation and maintenance of Potable Drinking Water Systems and other appropriate measures. These will ensure a centralized source of quality drinking water in the communities.

$850,000 to fund climate change and energy efficiency initiatives. This includes $620,000 for year one of a three-year, $2 million Green Fund, which helps support projects and feasibility studies that contribute to energy efficiency and greenhouse gas reductions; as well as funding to update the Climate Change Action Plan and support organizations in their climate change outreach efforts.

$259,000 to continue work on the development and implementation of the Natural Areas System Plan for the protection of the province�s sensitive eco-regions; and

$315,000 for an inventory of the rare lichen erioderma pedicellatum on the Avalon Peninsula will contribute to management plans and better inform sustainable development and conservation decisions, particularly with respect to forestry operations.

Business Development Programs and Initiatives

Focused on creating an attractive business climate, the Provincial Government is continuing its series of business development programs and initiatives. An overview of these programs and initiatives of the Department of Innovation, Trade and Rural Development is as follows:

The Regional/Sectoral Diversification Fund is a $5 million annual fund that provides non-repayable contributions to economic development agencies for initiatives that address regional and sectoral diversification. In 2008-09, inclusive of carryover there is $9.6 million available for investment in regional economies;

The Small- and Medium-sized Enterprise (SME) Fund has $12 million available for investment in 2008-09. The SME Fund is designed to fill funding gaps, particularly in rural areas, by supplementing other sources of funding to assist SMEs with start-up and expansion costs;

The $1 million Business and Market Development Program provides new entrepreneurs and expanding small businesses with funding to access the necessary expertise to pursue new business ideas and markets;

The $3 million Commercialization Program supports private sector enterprises in activities leading to the development of innovative, market-ready products and services;

The $2 million Innovation Enhancement Program is available for public sector institutions, not-for-profit groups, and industry associations involved in activities that enhance the province�s innovative capacity;

To further support the development of business, cultural and educational opportunities between Ireland and Newfoundland and Labrador, funding of $500,000 is continued for the Ireland Business Partnerships;

The Export Development Strategy will continue to receive $500,000 to help facilitate new export opportunities for the province�s business and academic communities.

Additionally, the Department of Business continues to employ programs designed to position the province as a preferred location for businesses to set-up and operate successfully. Budget 2008 includes:

$28 million under the Business Attraction Fund and accompanying grants fund. This fund better enables the province to compete for new national and international inward business investment opportunities; and

$2 million is available in 2008-09 under the Oil and Gas Manufacturing and Services Export Development Fund. It assists companies in the province�s oil and gas supply and services sector to diversify their markets, products and services in order to win new export contracts.

A Collaborative Approach to Building Strong Communities

The Williams Government has taken a collaborative approach to economic development in the province. Collaboration and partnerships at the community-level are central in diversifying and strengthening local economies.

To continue these efforts, the Provincial Government has allocated an additional $156,000 to the Community Capacity Building (CCB) Program. CCB enables community groups to work with the Provincial Government to effectively develop initiatives that support economic growth.

Tourism and Culture � Vital, Vibrant and Growing

The province�s tourism, culture, and heritage industries are increasingly important economic generators in both urban and rural regions.

Budget 2008 builds on earlier investments, including a previously announced commitment to increase the annual tourism marketing budget by an additional $1 million, and to a three-year $17.6 million commitment to initiatives identified in province�s long-term cultural strategy, Creative Newfoundland and Labrador: The Blueprint for Development and Investment in Culture (2006).

Investments being made in Budget 2008 further support and develop these growth industries and the people throughout Newfoundland and Labrador who are employed within them.

Key investments include:

An additional $1 million for tourism marketing, which doubles the tourism marketing budget from $6 million to $12 million since 2004;

$425,000 to increase tourism research capacity;

$150,000 to continue the Discovery Trail tourism season extension project, and to expand the initiative to the Viking Trail region;

$164,000 for implementation of an outfitting sector strategy, bringing the total provided for this initiative to $268,000 over two years;

$100,000 to support maintenance of the East Coast Trail;

$100,000 for tourism industry support (professional development, service quality); and

$100,000 for research and pilot project initiatives to support cultural industries.

"Newfoundland and Labrador�s tourism industry has grown by about 15 per cent since 2003 when our government started to increase our marketing budget. Our vibrant cultural scene is among our key attractions," said the Honourable Clyde Jackman, Minister of Tourism, Culture and Recreation. "In order to continue to maximize the potential of the tourism and cultural industries, and to remain competitive in an ever-changing global tourism market, the Provincial Government recognizes the need for ongoing research which provides the very latest information on tourism market trends, cultural tourism opportunities, tourism product innovations, and internal and external forces which may impact the industry."

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Media contacts: Scott Barfoot Director of Communications Department of Innovation, Trade and Rural Development 709-729-4570, 690-6290 ScottBarfoot@gov.nl.ca	Heather May Director of Communications Department of Tourism, Culture and Recreation 709-729-0928, 697-5061 heathermay@gov.nl.ca
Tracy Barron Director of Communications Department of Natural Resources 709-729-5282, 690-8241 tracybarron@gov.nl.ca	Lori Lee Oates Director of Communications Department of Fisheries and Aquaculture 709-729-3733, 690-8403 oatesll@gov.nl.ca
Mark King Director of Communications Department of Business 709-729-7628, 699-3454 markking@gov.nl.ca	Melony O�Neill Director of Communications (Acting) Department of Environment and Conservation 709-729-2575, 689-0928 moneill@gov.nl.ca

2008 04 29 2:10 p.m.

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