Innovation, Business and Rural Development
Natural Resources
Tourism, Culture and Recreation
March 27, 2014
Backgrounder
Investments to Support Economic Growth
Budget 2014 strengthens the economy in Newfoundland and Labrador with
strategic investments to support businesses and communities, and encourage
employment, innovation, and economic growth.
Business and Regional Development
To support regional economic development initiatives throughout Newfoundland
and Labrador, more than $45.5 million will respond to the needs of
traditional and emerging business sectors.
Budget 2014 investments include:
- $17.7 million to help businesses grow and compete in their markets,
and allow new businesses to expand into the province through the
Business Investment Fund;
- $9.2 million for regional development business support through the
Regional Development Fund;
- $15 million through the Investment Attraction Fund to help attract
business to the province; and,
- $3.6 million to support growth and innovation for small and
medium-sized businesses through the Business Development Support Fund.
In addition, $2 million is available for investment under the Workplace
Skills Enhancement Program, which helps address labour market conditions and
provides support tools for local businesses. It is funded through the
Canada-Newfoundland and Labrador Labour Market Agreement and the Strategic
Training and Transition Fund.
Through Budget 2014, approximately $72 million will be invested in
continuing tax credits and incentives for businesses. These include
initiatives such as:
- Small Business Tax Credit;
- Manufacturing and Processing Profits Tax Credit;
- Scientific Research and Experimental Development Tax Credit;
- Economic Diversification and Growth Enterprise Program;
- Film and Video Tax Credit; and,
- Direct Equity Tax Credit.
In an effort to further strengthen a competitive tax environment for
small businesses in the province, effective July 1, 2014, the Provincial
Government will decrease the small business corporate income tax rate to
three per cent, and will be tied with Nova Scotia for the lowest rate in
Atlantic Canada. See Backgrounder: Enhancements to Seniors’ Benefit, Low
Income and Small Business.
Innovation
To further improve broadband access in Newfoundland and Labrador, $4.9
million will support work with industry and community partners to continue
to advance the Rural Broadband Initiative. More than 500 communities in
Newfoundland and Labrador have broadband access, with approximately 95 per
cent of the population having coverage.
Responsible Resource Management and Development
Budget 2014 is committed to supporting responsible resource
management and development with strategic investments in the province’s
energy, agriculture and forestry sectors.
Investments include:
- $552.7 million equity investment in Nalcor to continue their work in
advancing petroleum initiatives and the Muskrat Falls project;
- $1 million for offshore and onshore petroleum geoscience to enhance
exploration and promotion of future commercial developments in the
province; and,
- $250,000 to the Centre for Forest Science and Innovation for the
Forest Research and Innovation Fund which will increase the forest
research capacity to foster innovation and diversification.
Budget 2014 also continues to invest in the province’s agriculture
industry though such initiatives as:
- $3.3 million for the Growing Forward 2 program, a
federal-provincial-territorial initiative helping industry become more
innovative and cost competitive;
- $2.5 million for the Agriculture and Agrifoods Development Fund, to
help farmers develop larger acreages of land to increase forage
production;
- $2.2 million for the Provincial Agrifoods Assistance Program, to
fund activities to improve industry competitiveness, and promote growth
and commercialization;
- $2.3 million for the Land Consolidation Program, to provide an
opportunity for non-farm landowners and retiring farmers to sell granted
land to the Provincial Government;
- $985,900 for the Agriculture Research Initiative, to fund research
and development projects related to agriculture; and,
- $411,800 for the Agricultural Limestone Program so that farmers are
able to purchase limestone at a reasonable cost.
Budget 2014 continues to invest in ongoing programs that ensure the
forest resource is managed in a sustainable manner for future generations.
Investments include:
- $8.3 million for silviculture projects;
- $5.9 million to construct resource roads for timber harvesting;
- $1.7 million for forest insect and disease control; and,
- $4.1 million for fire suppression.
Tourism and Culture
Understanding the importance of the tourism industry as an economic
generator in Newfoundland and Labrador, Budget 2014 includes investments in
tourism and cultural industries to create employment, promote Newfoundland
and Labrador as a unique destination, and support the province’s unique
culture and heritage.
Budget 2014 includes:
- $8.2 million to support the Provincial Government’s cultural plan
Creative Newfoundland and Labrador: The Blueprint for Development
and Investment in Culture for initiatives such as the Cultural
Economic Development Program, Newfoundland and Labrador Arts Council,
Heritage Foundation of Newfoundland and Labrador, Newfoundland and
Labrador Film Development Corporation, Provincial Historic
Commemorations Program, and the Arts and Letters Competition;
- $13 million by 2015-16 for tourism marketing in the province, which
includes an increase of $4 million over the next two years;
- Budget 2014 continues its support for the production of Republic of
Doyle. Every $1 of Provincial Government spending on the Republic of
Doyle generated $2.86 of Newfoundland and Labrador labour and business
income and resulted in a net overall economic benefit of $36.4 million;
and,
- Approximately $900,000 to further establish Newfoundland and
Labrador as a tourism destination through support of $116,000 for the
Newfoundland and Labrador Tourism Board, and $600,000 for Destination
Management Organizations.
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Media contacts:
Heather MacLean
Director of Communications
Department of Innovation, Business and Rural Development
709-729-4570, 697-4137
heathermaclean@gov.nl.ca
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Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca
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Melony O’Neill
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 689-0928
moneill@gov.nl.ca |
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2014 03 27
2:25 p.m.