Natural Resources
Fisheries and Aquaculture
Tourism, Culture and Recreation
Finance
Environment and Conservation
April 24, 2012
A Prosperous Economy and Renewable Energy Future Fueled
by Budget 2012
An innovative, growth-oriented private sector and economically-diversified communities are the objectives of the Provincial Government’s business and economic development agenda. Budget 2012: People and Prosperity – Responsible Investments for a Secure Future allocates almost $200 million in investments that ensure a solid foundation and positive business environment are in place to facilitate growth and development in all regions of Newfoundland and Labrador.
Balancing Newfoundland and Labrador’s social and economic development requirements, Budget 2012 includes strategic investments and tax incentives that support innovation and development of traditional and emerging industries such as aquaculture, ocean technology, and tourism, as well as film and television.
“This government is an invested partner in community and business development,” said the Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development. “Budget 2012 balances Newfoundland and Labrador’s fiscal requirements with the need to advance programs that further create conditions where an innovative and ambitious business community can lead to greater social and economic development.”
Newfoundland and Labrador’s wealth of natural resources has established the province as a global energy and resource-based powerhouse. It also enables the Provincial Government to invest in programs and services that lead to the sustained development of small and medium-sized businesses and contribute to the expansion of key community and regional infrastructure.
“Newfoundland and Labrador’s natural resources have led to unprecedented economic and business growth,” said Minister Hutchings. “As major industrial projects and development of our vast riches continue to unfold, they will support the Provincial Government’s ability to advance economic infrastructure and support business expansion that helps diversify the provincial economy.”
Investments Target Growth of Resource Industries
Newfoundland and Labrador’s Energy Plan supports a clean energy future based
on
the protection of the environment and responsible resource development in
the best long-term interests of the people of the province.
To support energy developments, Nalcor Energy will continue to strategically invest to further develop the province’s oil and gas industry. The returns from this non-renewable sector are being used to build a renewable energy future in the hydroelectric sector.
Equity investments in revenue-generating offshore developments White Rose and Hibernia South contribute to a strong, sustainable economic base for Newfoundland and Labrador. Hebron, which is expected to begin construction this year, is anticipated to be an additional revenue source for the province. Investments will also include preliminary work and site preparation for the proposed development of Muskrat Falls, which will respond to growing provincial energy needs, and provide a reliable, low-cost source of electricity for the people of our province.
“Newfoundland and Labrador’s diverse natural resources are significant contributors to the economy, and their development holds tremendous potential and valuable opportunities for our province,” said the Honourable Jerome Kennedy, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. “Investments to support our resource-based industries will encourage additional opportunities for expansion and diversification, while contributing to a strong and sustainable future for Newfoundlanders and Labradorians.”
Budget 2012 targets sustained growth of key resource-based industries through strategic investments. This includes:
- $3 million for geoscience mapping to help maintain strong investments in exploration potentially leading to new developments;
- $2.5 million for the Growing Forward Program to support farmers and producers strengthen Newfoundland and Labrador’s agriculture and agrifoods industry; and,
- $1.5 million to support Energy Plan initiatives including an Energy Innovation Roadmap to help identify key opportunities to stimulate and influence future energy innovation and strategic investment in the province.
Innovation
Innovation in traditional industries, as well as knowledge-based industries
such as information and communications technology and ocean technology, is
paramount in
a competitive global marketplace.
Innovation Newfoundland and Labrador: A Blueprint for Prosperity
To support private and public sector organizations increase their ability to
innovate and strengthen local industries, the Provincial Government
continues to execute the provincial innovation strategy – Innovation
Newfoundland and Labrador: A Blueprint for Prosperity.
Budget 2012 investments are:
- $2 million for the Rural Broadband Initiative, which builds on the $27 million invested to date in improving Newfoundland and Labrador’s telecommunications environment. These investments have increased the availability of broadband access to more than 470 communities representing a 312 per cent increase from 2003; and,
- $1.8 million for the continued implementation of the Innovation Enhancement, Innovate and Demonstrate, and Technology Utilization Programs.
Ocean Technology
Led by a new Assistant Deputy Minister and guided by Oceans of Opportunity,
a five-year ocean technology strategy, the Provincial Government is
accelerating the sector’s growth and leveraging Newfoundland and Labrador’s
position as a centre of excellence for cold ocean and Arctic research.
Budget 2012 allocates $2.6 million for the implementation of the OceanTech Intelligence Program. This program provides assistance to not-for-profit organizations, industry associations and public sector educational institutions for projects that support the growth of Newfoundland and Labrador’s ocean technology sector.
Research and Development
Through Budget 2012, the Research & Development Corporation (RDC),
a provincial Crown corporation responsible for improving Newfoundland and
Labrador’s research and development performance, has $19 million available
for investment.
With $50 million committed to date, the RDC will continue to support
activities that drive innovation, create wealth opportunities, and
contribute to the growth of the provincial economy.
Business Development Programs
The Provincial Government has a comprehensive set of business development
programs and services available for small and medium-sized businesses.
Budget 2012 includes the following investments:
- Approximately $91 million will be invested in continuing tax credits and incentives for businesses. These include initiatives such as 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, Direct Equity Tax Credit, and the Resort Property Investment Tax Credit;
- $15.5 million is allocated for the Business Attraction Fund, which enhances the province's ability to compete for and attract new national and international business investment;
- $15.1 million is available for investment through the Small and Medium-sized Enterprise (SME) Fund. The SME Fund provides financial resources for start-up, modernization, or growth of a business venture in key industry sectors;
- $4.8 million is allocated to the Regional/Sectoral Diversification Fund. This is a key program in advancing regional and economic infrastructure that contributes to the diversification of local economies;
- $2.1 million is available for investment under the Workplace Skills Enhancement Program, which is a program that helps address labour market conditions and provide support tools for local businesses as they explore avenues to maximize productivity, improve workforce training options, and attract new employees. It is funded through the Canada-Newfoundland and Labrador Labour Market Agreement and the Strategic Training and Transition Fund;
- $1.5 million is available through the Aerospace and Defence Fund to help advance the aerospace and defence sector;
- $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;
- $1 million is allocated to administer the Air Access Strategy – Taking Flight: An Air Access Strategy for Newfoundland and Labrador, a five-year approach aimed at enhancing air access to, from and within Newfoundland and Labrador;
- $590,000 is allocated to support small and medium-sized businesses, industry organizations, and not-for-profit organizations travel to national and international markets for export development initiatives; and,
- Through the Fisheries Loan Guarantee Program, the Provincial Government will continue to support fish harvesters ability to secure the necessary financing to purchase, construct or upgrade vessels, and acquire new equipment.
Supporting the Fishing and Aquaculture Industries of the Future
Budget 2012 includes new and ongoing investments totalling over $30 million
in support of the fishing and aquaculture industries.
“Total production in the fishing and aquaculture industries throughout Newfoundland and Labrador was valued at over $1 billion in 2011, representing growth of 7.3 per cent from the previous year,” said the Honourable Darin King, Minister of Fisheries and Aquaculture. “Recognizing the significance of these industries to rural and coastal communities throughout the province, investing in infrastructure, science, research and innovation is increasingly important. These types of investments develop a foundation that will support the fishing and aquaculture industries of the future.”
Initiatives outlined in Budget 2012 include:
-
• $6.5 million for the Aquaculture Capital Equity Investment Program.
Approximately $24 million has been invested since the program’s introduction
in 2006, leveraging approximately $400 million in total from the private
sector;
• $6.2 million for the construction of aquaculture wharves in the Coast of Bays region;
• $4.2 million for the Atlantic Lobster Sustainability Measures Program. As previously announced, under the program, the Government of Newfoundland and Labrador, together with the Government of Canada, will contribute over $9 million each towards a sustainability and conservation plan on behalf of lobster harvesters throughout the south and west coasts of the province;
• $3.6 million, as previously announced, for the formation of a new partnership supporting this year’s seal hunt through inventory financing while markets rebound;
• $2.3 million in support of worker adjustment measures;
• $340,000 to continue the development of a bay management approach to enhancing biosecurity in the province’s aquaculture industry. The three-year investment will total $714,600;
• $300,000 for the Coastal and Oceans Management Program towards the implementation of the Coastal and Ocean Management Strategy and Policy Framework for Newfoundland and Labrador; and,
• $100,000 for sealing industry advocacy and development.
The Provincial Government is also making strategic investments aimed at enhancing science, research and innovation. These investments include:
- $3.8 million for the next installment of a five-year commitment to fisheries science at the Centre for Fisheries Ecosystems Research and the Fisheries and Marine Institute;
- $2.2 million for the Fisheries Technology and New Opportunities Program for fishing industry research and development, as part of a three-year, $6.6 million total investment;
- $1 million to extend support for the Canadian Centre for Fisheries Innovation; and,
- A further $300,000 over the next two years to the Fisheries Innovation and Development and Sustainable Fisheries Resources and Oceans Policy, bringing the total annual investment in this program to $600,000.
Investment in the Film and Television Industry
Newfoundland and Labrador’s film and television industry is experiencing
exciting growth and making a valuable contribution to the provincial economy
– for every $1 the Provincial Government invests, the total Gross Domestic
Product return is $2.86. With the production of season four of the Republic
of Doyle, approximately 110 full time jobs will be created in the province
with an estimated $10 million in salaries and wages.
As part of Budget 2012:
- $3 million will be invested in season four of Republic of Doyle, the largest original television or film project produced in Newfoundland and Labrador. This investment will be allocated over two fiscal years. This equity investment will bring the Provincial Government’s total commitment to $10.5 million.
Other strategic investments in Budget 2012 that support economic development include:
- $500,000 for infrastructure development at Marble Mountain ski resort, a
premiere winter tourism attraction. The investment will ensure that Marble
Mountain Development Corporation sustains employment and economic activity
in the region and furthers its goals of becoming a multi-season operation;
and,
- Demand for the development of Crown lands, either for commercial, residential or industrial purposes, has increased. The Provincial Government will allocate $844,000 to ensure maximum economic benefit in rural areas from the development of Crown land and cottage lot development. This investment has the potential to generate close to $1.4 million in revenue.
- 30 -
Media contacts:
| Scott Barfoot Director of Communications Department of Innovation, Business and Rural Development 709-729-4570, 690-6290 scottbarfoot@gov.nl.ca |
Heather Maclean Director of Communications Department of Natural Resources 709-729-5282, 697-4137 heathermaclean@gov.nl.ca |
| Bradley Power Director of Communications Department of Fisheries and Aquaculture 709-729-3733, 699-5707 BradleyPower@gov.nl.ca |
Diana Quinton Director of Communications Department of Tourism, Culture and Recreation 709-729-0928, 631-8155 dianaquinton@gov.nl.ca |
| Luke Joyce Director of Communications Department of Finance 709-729-6830, 725-4165 lukejoyce@gov.nl.ca |
Melony O’Neill Director of Communications Department of Environment and Conservation 709-729-2575, 689-0928 moneill@gov.nl.ca |
2012 04 24 2:30 p.m.