Innovation, Trade and Rural Development
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Fisheries and Aquaculture
Tourism, Culture and Recreation
Finance
March 26, 2009

Economic Stimulus Investments in Budget 2009 Top $900 Million

Newfoundland and Labrador�s energetic and increasingly diverse business community is receiving an infusion of more than $175 million in Budget 2009, putting economic stimulus investments for 2009-10 in excess of $900 million. This includes the Williams Government�s record investment in infrastructure, announced in February, as well as economic development initiatives to target employment growth and to strengthen the province�s position in the competitive, global marketplace.

"This province has a resilient business community, characterized by an entrepreneurial spirit, innovation and ingenuity," said the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development. "As a government, we are focused on providing the necessary resources to expand key industries, advance regional priorities and further support an environment conducive to business development. I am confident that our Budget 2009 investments will continue to enable local businesses to identify new growth opportunities and be best-positioned to realize those opportunities."

To support sustained business development in all regions, the Provincial Government will continue to employ its comprehensive suite of programs. Available and accessible programming enables small and medium-sized enterprises and economic development organizations to grow their operations, create the right conditions for business success and stimulate the economy over the long term.

"Small and medium-sized businesses are integral to the growth of the provincial economy," said Minister Skinner. "In the current economic environment it is essential that we have programs in place that can be readily accessible so that new opportunities can be identified and ultimately create the best possible location to live, work and do business."

Business Development Programs and Initiatives

Budget 2009 includes more than $87 million in business development programs that encourage long-term private sector growth, employment creation, and economic diversification in all regions.

Investments by program are as follows:

  • Approximately $59 million in tax credits and incentives, including the Small Business Tax Credit, Manufacturing and Processing Profits Tax Credit, Scientific Research and Experimental Development Tax Credit, Film and Video Tax Credit, Economic Diversification and Growth Enterprise Program (EDGE), Labour-sponsored Venture Capital Tax Credit, Direct Equity Tax Credit, and the Resort Property Investment Tax Credit; 
  • $12.9 million is available through the Small and Medium-sized Enterprise (SME) Fund for investment in SMEs operating in key growth sectors allowing them to target export opportunities or expand their operations;
  • $12.3 million is allocated to the Regional/Sectoral Diversification Fund (RSDF), with $8 million for new initiatives, and $4.3 million for current commitments. Increasing the fund expands the Department of Innovation, Trade and Rural Development�s ability to support diversification of communities and regions relying on a single industry and further advance such sectors as boat building, tourism, and agrifoods;
  • $1 million is allocated to the Business and Market Development Program, which provides matching contributions to small businesses, enabling them to acquire new skills, industry standards, and expand their marketing reach to other jurisdictions;
  • $500,000 is allocated to the Ireland Business Partnerships to continue to forge stronger economic, educational, and cultural linkages with Ireland;
  • $500,000 is allocated to the Export Development Strategy, which is designed to support local businesses, industry organizations, and educational institutions target new export markets; and,
  • $1.5 million is included through the Oil and Gas Manufacturing and Services Export Development Fund. Administered by the Department of Business, the fund assists local companies in the oil and gas supply and service sector expand their markets, products, and services in order to secure export contracts.
  • Attracting New Business

    "With the opportunities that our province offers investors, together with the incentives that our government has put in place, an increasing number of businesses from other jurisdictions are viewing Newfoundland and Labrador as a location of choice," said the Honourable Paul Oram, Minister of Business. "We must continue to promote the province as a place to do business as the world makes its way through the current economic downturn."

    Budget 2009 includes $29 million in programming to enhance the ability of the Department of Business to compete for and attract new business investment from abroad. This investment includes continuation of the Business Attraction Fund and provides an additional $1 million � for a total of $4 million � for accompanying grants.

    Attracting national and international business to establish or expand in Newfoundland and Labrador is a significant component of the Provincial Government�s approach to creating new employment and diversifying the economic base.

    Aerospace and Defence

    Budget 2009 allocates $2 million towards a new two-year $5 million investment focused on capacity-building and growth of Newfoundland and Labrador�s expanding aerospace and defence sector.

    "Newfoundland and Labrador is home to an impressive network of highly-capable firms involved in aerospace and defence activities in global markets," said Minister Oram. "The new program established in Budget 2009 will assist in positioning the sector to expand capacity, enhance competitiveness, and avail of new business opportunities, so that, as a province, we foster further development of our aerospace and defence industry."

    Tourism, Culture and Heritage

    The province�s tourism, culture, and heritage industries are key economic generators in the province�s urban and rural regions.

    "Through Budget 2009, the Provincial Government is focusing increased financial resources in such areas as tourism marketing and season extension projects," said the Honourable Clyde Jackman, Minister of Tourism, Culture and Recreation. "Our commitment to the tourism industry and further positioning Newfoundland and Labrador as a premier tourism destination reflects its important role in the economic growth of the province�s rural and urban regions."

    Key investments outlined in Budget 2009 for tourism include:

  • An additional $1 million for tourism marketing, which more than doubles the annual tourism marketing budget to $13 million � from $6 million in 2004; and,
  • $150,000 to continue tourism season extension projects in the Discovery Trail and Viking Trail regions of the province.
  • Budget 2009 commits $940,000 in new funding to realize the goals outlined in the province�s long-term cultural strategy. Creative Newfoundland and Labrador: The Blueprint for Development and Investment in Culture (2006) has now seen, on a cumulative basis, in excess of $25 million in new funding allocated to the cultural and heritage sectors since 2006.

    Key investments in Budget 2009 in the areas of culture and heritage include:

  • $350,000 in additional funding to support ongoing revitalization of Provincial Historic Sites;
  • $250,000 for cultural export programming, an initiative previously announced in August 2008 to cover the financial gap left by the elimination of key federal cultural export programming;
  • $150,000 in new funding for heritage organizations, project funding and professional development through the Cultural Economic Development Program (CEDP), bringing the total annual budget for the heritage component of this program to $1.2 million;
  • $700,000 is committed to support the Newfoundland and Labrador Film Development Corporation�s operating budget � an increase of $100,000; and,
  • $135,000 is committed to the annual Arts and Letters Awards competition�s annual budget � an increase of $25,000.
  • "It is crucial that we continue to preserve our built heritage; invest in our heritage and cultural industries � including their export to the rest of the country and the world � and support the arts and heritage industry professionals who contribute significantly to the social and economic fabric of our society," said Minister Jackman.

    Strengthening the Province�s Fishing and Aquaculture Industries

    Fishing Industry Renewal

    "The Fishing Industry Renewal Strategy has been a critical component of continued development of Newfoundland and Labrador�s fishery," said the Honourable Tom Hedderson, Minister of Fisheries and Aquaculture. "Our government continues to see the fishery as the lifeblood of coastal communities and our efforts to enhance it have met with great success to date."

    Budget 2009 allocates close to $3.5 million under the Fishing Industry Renewal Strategy. An overview of funding is as follows:

  • $2 million is allocated for the final year of the $6 million Fisheries Technology and New Opportunities Program (FTNOP). FTNOP is designed to support the harvesting, processing, and marketing sectors and ultimately increase the overall viability of the provincial seafood industry;
  • $1.2 million is allocated towards workforce adjustment initiatives. These initiatives support workers impacted by capacity reductions in the fishing industry and for former workers of plants that have been designated as being permanently closed. Services include transitional employment counseling, short-term employment support, and intensified regional economic diversification efforts; and,
  • $250,000 will be utilized to establish a Fishing Industry Safety Council that includes industry and Provincial Government representation. The council�s focus will be on research, education and training, promotions and communication related to fishing industry safety.
  • Aquaculture

    Inclusive of infrastructure projects announced as part of the Williams Government�s $800 million infrastructure package, an overview of initiatives is as follows:

  • $3.4 million was committed to support the construction of an aquaculture facility in St. Alban�s. This facility will house approximately 10 staff, including development and inspection personnel, as well as aquatic health staff and veterinarians;
  • $1 million is committed in Budget 2009 for infrastructure projects on the province�s south coast, with a total commitment of $5 million over two years;
  • $2.45 million is allocated for continued funding in the Aquaculture Capital Investment Program; and,
  • $701,800 is available for construction of waste water treatment facilities associated with seafood processing facilities.
  • "These programs have been critical components of the growth we have seen in the province�s aquaculture industry in recent years, with approximately 40 per cent growth in total," said Minister Hedderson. "To date, the arrival of new aquaculture companies in the province has created approximately 400 direct jobs in the farming and processing sectors and more indirect jobs will be created as the aquaculture industry continues to grow and develop."

    Sealing Industry Communications

    Budget 2009 allocates $100,000 for sealing industry communications in national and international markets. This industry contributes approximately $30 million to the provincial economy.

    $800 million Investment in Infrastructure

    Announced in February, the Provincial Government�s $800 million investment on infrastructure projects is an aggressive approach to stimulating economic activity and creating new employment opportunities. This investment accelerates infrastructure developments at a level that sustains and stimulates the economy over the long-term, ensuring maximum benefits for industry and all regions of the province. For further information go to - www.gov.nl.ca/releases/2009/exec/0218n01.htm - Williams Government Makes Record $800 Million Investment in Infrastructure.

    "With economic stimulus investments for the coming fiscal year in excess of $900 million the Williams Government is taking an aggressive approach to supporting the continued growth of economies in all regions of the province," said Minister Skinner. "Through increased investment in key areas we are building on the province�s strong foundation to strengthen its position in the global economy and provide new opportunities for Newfoundlanders and Labradorians."

    - 30 -

    Media contacts:

    Scott Barfoot
    Director of Communications
    Department of Innovation, Trade and Rural Development
    709-729-4570, 690-6290
    ScottBarfoot@gov.nl.ca
    Mark King
    Director of Communications
    Department of Business
    709-729-7628, 699-3454
    markking@gov.nl.ca

    Lori Lee Oates
    Director of Communications
    Department of Fisheries and Aquaculture
    709-729-3733, 690-8403
    oatesll@gov.nl.ca

    Heather May
    Director of Communications
    Department of Tourism, Culture and Recreation
    709-729-0928, 697-5061
    heathermay@gov.nl.ca
    Tansy Mundon
    Director of Communications
    Department of Finance
    709-729-6830, 685-2646
    tansymundon@gov.nl.ca
     

    2006 03 26                                                       2:05 p.m.
     


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