Innovation, Trade and Rural Development
Business
Finance
Fisheries and Aquaculture
March 29, 2010
Business Expansion and Positive Dividends for
Future Generations Targeted in Budget 2010
Advancement of the Williams Government's ambitious business development
agenda is strengthened with investments of $126 million in Budget 2010. Greater
business development in key industry sectors will bring long-term employment of
skilled workers, business expansion and pay dividends for future generations.
Building upon Budget 2010's announcement of more than $1 billion for
infrastructure projects, the Provincial Government's business development
initiatives are focused on diversifying and stimulating economic activity in
communities and regions across Newfoundland and Labrador.
"As the global economy strengthens, Newfoundland and Labrador is
well-positioned to capitalize on the foundation that has been laid in recent
years," said the Honourable Shawn Skinner, Minister of Innovation, Trade and
Rural Development. "The more the Provincial Government cultivates
entrepreneurship and business expansion the more we are creating a positive
business environment. With continued investment in business development
initiatives, the Provincial Government is working to realize the vision of an
increasingly diverse and innovative business community and to open doors to
exciting careers and new opportunities for the province's youth."
Investing in business development programs ensures that progress continues in
the province's traditional and knowledge-based industries. By contributing to
their growth and providing greater access to financial resources, the Provincial
Government is targeting a business environment conducive for success — success
that ultimately leads to stronger, more diversified communities and regions.
"Our government's initiatives are creating the right
environment in Newfoundland and Labrador to attract investment from abroad and
develop business, which is expanding our economic base, generating valuable
employment and business opportunities, and contributing to economic
diversification, growth and prosperity that benefits future generations," said
the Honourable Ross Wiseman, Minister of Business. "We will seize new
opportunities and continue to position Newfoundland and Labrador as a choice
location in which to invest, work and live."
Business Development Programs
Through the Departments of Business and Innovation, Trade and Rural
Development, Budget 2010 additionally includes more than $65 million in programs
that target expansion of private sector enterprises, stronger local and regional
economies, and new employment opportunities. Investments by program are as
follows:
- Approximately $61 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;
- $29 million under the Business Attraction Fund to enhance the province's
ability to compete for and attract new national and international business
investment;
- $13.8 million is available
for investment through the Small and Medium-sized Enterprise (SME) Fund. The
SME Fund enables local businesses to strengthen their operations and target
new business opportunities in markets around the world;
- $11 million is allocated to the Regional/Sectoral Diversification
Fund, supporting sector development and contributing to the development of
stronger, more diversified communities;
- $4.9 million is available for investment under Oceans of Opportunity,
a five-year strategy designed to accelerate sector development, along with
enhancing the province's environment for business and technology development
within the ocean technology community;
- $2 million has been allocated for a one-year extension of the
Commercialization and Innovation Enhancement Programs. Both programs were
established under the provincial innovation strategy Innovation
Newfoundland and Labrador: A Blueprint for Prosperity. While evaluation
of the two programs is being conducted, the Provincial Government will
further support emerging knowledge-based industries in the province;
- $1 million is allocated as part of a two-year $3 million commitment for
the renewal of the Oil and Gas Manufacturing and Services Export Development
Fund, which assists companies in the province's oil and gas supply sector to
diversify their markets and take advantage of new export opportunities;
- $2 million is available this year under the Aerospace and Defence
Development Fund, designed to support the growth of this industry in
Newfoundland and Labrador; and,
- $1 million is allocated to the Business and Market Development Program,
which provides matching contributions to small businesses, enabling them to
acquire new skills, meet industry standards, and expand their marketing
reach to other jurisdictions.
"The Provincial Government has created a suite of business development
programs focused on supporting the growth of private sector enterprises and
academic institutions," said Minister Skinner. "There are many exciting
initiatives underway in Newfoundland and Labrador and through the continued
implementation of valuable programming focused on their success we are
increasing their ability to launch projects, strengthen their workforce, improve
operational efficiencies, commercialize products, and ultimately better compete
in markets across the globe."
Strategies to Support Economic Development
In addition to the many existing investments and programs targeting business,
the Provincial Government is taking new approaches that focus on creating the
conditions to support economic growth across Newfoundland and Labrador.
Investment Attraction Strategy
The Provincial Government is building on its efforts to bring new business
and investment opportunities to Newfoundland and Labrador. This year will see
the completion of a comprehensive investment attraction strategy. This
multi-year plan will be designed to provide coordinated, strategic oversight of
activities and initiatives throughout the Provincial Government that support the
attraction of new investment to the province across a number of sectors. It will
also identify actions aimed at building a more competitive business environment
that encourages inward investment, achieving a highly-educated and skilled
workforce in the province, increasing promotion of Newfoundland and Labrador as
an investment destination, strengthening cooperation with the business community
and other partners, and linking investment attraction with efforts to grow local
business.
Air Access Strategy
The Provincial Government will also release a new five-year strategy that
will guide its approach, in concert with key community and industry partners, to
improving air services in the province. The air access strategy will contain
several goals and initiatives focused on attracting new economically-viable
routes to Newfoundland and Labrador, and will dedicate the resources to support
these.
"In today's increasingly global, interconnected society, adequate air access
is critical, not only for the ease of movement of the traveling public, but also
for the well-being of tourism, trade and investment, our overall economic
competitiveness and quality of life," said Minister Wiseman. "By developing this
strategy, our government is demonstrating its commitment to taking action that
will improve the status of air access in Newfoundland and Labrador."
Targeting Growth of Newfoundland and Labrador's Aquaculture Industry
As announced as part of the Provincial Government's investments to manage the
province's natural resources, $6.6 million is provided for the Aquaculture
Capital Equity
Program.
- 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 |
Ronalda Walsh
Director of Communications
Department of Finance
709-729-6830, 685-1741
ronaldawalsh@gov.nl.ca |
2010 03 29 2:05 p.m.