Innovation, Trade and Rural Development
June 26, 2009
Provincial Government
Delivering on Commitment to Central Region
The Provincial Government made a commitment to the
central region that it would assist displaced workers and strengthen the
local economy in response to AbitibiBowater�s decision to pull out of
Newfoundland and Labrador. To date, it has delivered on that commitment
with close to $100 million in new investments, which includes in excess
of $35 million for financial benefits for displaced workers, and
anticipates continued investments in the future.
"The Provincial Government has stepped up and provided
important investments and supports to the central region and its
people," said the Honourable Shawn Skinner, Chair of the Ministerial
Task established to respond to the mill�s closure. "In addition to
protecting the interests of those impacted, our government has taken
significant strides to stimulate and diversify the region�s economy. Our
investments have ranged from $35 million for infrastructure projects to
establishing government offices in the region to upgrades to the College
of the North Atlantic in Grand Falls-Windsor. I also anticipate further
economic development initiatives being announced in short order."
In response to various requests to create a
community-focused economic development trust fund for the Exploits
Region, Minister Skinner said today that the Provincial Government will
not introduce a regional-specific fund.
"Some people in the region have been calling for the
creation of a community trust fund, but government will not and cannot
approach economic development in the province in this fashion," said
Minister Skinner. "While we continue to work with the Community
Development Committee � a dedicated 15-person team consisting of local
community, business, and union leaders � to revitalize the central
region, we are equally committed to the economic and social development
of all areas and regions of the province. Our policies must balance
regional requirements."
The Provincial Government has a number of economic
development programs available to all regions of the province. In the
central region, the Provincial Government has taken unprecedented
measures, including the repatriation of hydro and fibre assets and
making close to $100 million in new investments in the region.
"We have committed to using the repatriated assets to
attract industrial development in the area as part of our approach to
strengthen and diversify the region�s economy," said Minister Skinner.
"We are providing financial benefits to displaced workers and certain
entitlements under the Work Force Reduction Program and Supplementary
Retirement Allowance.
Available
power from the repatriated resources puts us in a stronger position to
attract industrial opportunities for the region. However, as with any
investment, the collective impact on the province as a whole must be
measured as these resources are provincially owned."
The December 2008 decision by the Williams Government
to repatriate resources from AbitibiBowater for breaching a century-old
agreement enabled the Provincial Government to provide severance to
displaced workers and introduce various support mechanisms.
Power is being generated at the hydroelectric
facilities and going into the provincial grid. It is offsetting power at
Bay d�Espoir and other hydroelectric facilities at the moment, where
water is being stored.
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Media contact:
Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
scottbarfoot@gov.nl.ca
BACKGROUNDER
Highlights of Investments and Work Completed to Date to
Respond to the Closure of the AbitibiBowater Mill
Investments
In addition to the annual
$175 million to $200 million that the Provincial Government invests in
the central region for everything from health care to education to road
maintenance, in 2009-10 spending has been increased to include:
In excess of $35 million for financial benefits
for workers displaced by the closure. Benefits include severance for
mill workers (unionized and non-unionized), silviculturists and
loggers, and certain entitlements under the Work Force Reduction
Program and Supplementary Retirement Allowance Program;
In excess of $35 million on infrastructure
projects, including millions for the Trans-Canada Highway within the
region and $5.4 million for municipal-year capital works;
More than $5 million for repairs and renovations
of health care facilities plus $4.6 million to improve the Central
Newfoundland Regional Health Centre;
$2.3 million for forest and agricultural resource
road construction;
$1.6 million for maintenance and improvements of
Newfoundland Labrador Housing units;
$3.4 million to support the construction of an
aquaculture facility in St. Albans;
$500,000 for upgrades to the College of the North
Atlantic in Grand Falls-Windsor;
$445,000 is allocated for repairs and renovations
of school facilities; and,
$5 million from the Federal Government�s
Community Development Trust has been allocated to the Central Region
for investment in economic development initiatives.
Other
As part of the Provincial Government�s
approximate $800 million infrastructure investment, a residential
treatment centre for youth with addictions will be established in
Grand Falls-Windsor;
The relocation of the administration office for
the Home Heating Rebate program and the Parental Benefits Program to
Central region; and,
Commitment to offset the loss of tax revenue due
to the close of the AbitibiBowater mill in the communities of Grand
Falls-Windsor, Bishop�s Falls, Botwood, Buchans and Terra Nova.
Human Resources
Through the Department of Human Resources, Labour and
Employment, considerable emphasis has been placed on the development
and implementation of a strategy for workers as they transition to
new career opportunities and stages in their lives. To complement
the resources through career work centres, support staff has been
mobilized to deliver one-on-one counseling and services.
Economic Development
A Community Development Committee has been
established to develop and implement strategies to help advance
short- and long-term sector and project opportunities in the central
region. The 15-person committee encompasses a wide range of
community and business interests; and
Additionally, steps have been taken to secure
sustainable business development opportunities that will strengthen
and diversify the region�s economy. In consultation with
on-the-ground stakeholders, sectors considered for development
include knowledge-based services, information and communications
services, tourism, valued-added production, and support services
enterprises to emerging sectors in the central region.
2009 06 26
2:10 p.m.
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