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Speaking Notes for
Minister of Labrador and Aboriginal Affairs Ernest McLean
to the
Meeting of Newfoundland and Labrador RED Boards

Happy Valley-Goose Bay
October 12, 2001


Introduction

  • Invited guests, Your Worship, colleagues, valued volunteers...
  • It is indeed a great pleasure for me to have the opportunity to speak with you here tonight.
  • As the Minister of Labrador and Aboriginal Affairs, and the member for Lake Melville District, I am delighted that you have chosen to hold your meetings here this week.
  • As a member of the Economic Policy and Rural Revitalization Committee of Cabinet, I had the opportunity to meet with some of you yesterday.
  • Many of your concerns were valid, and they certainly deserve some attention.
  • John Fleet, of the Hyron board, as did others, expressed the need to ensure the Trans-Labrador Highway is upgraded to acceptable standards, particularly between the Esker turnoff and the Ashuanipi River.
  • The Premier and I had the opportunity to drive from Labrador West to Happy Valley-Goose Bay this summer, to view first-hand the condition of the highway. We found it, for the most part, in pretty good shape, but there are certainly some places that need to be upgraded.
  • The Province is committed to ensuring the people of Labrador are able to travel over safe highways.
  • The Trans-Labrador Highway is important to economic development in many industries, particularly tourism.
  • We heard Jan Dymond of the CLEDB speak passionately about the need to ensure proper resources are available to market Labrador to the world.
  • Wayne Broomfield of Inukshuk talked about the financial challenges his board faces in carrying out its work.
  • Concerns were also raised about the high cost of education, of the challenges many students, particularly those from the Labrador coast, face when they go to university and other post-secondary institutions.
  • Carol Best provided an excellent case for the need to establish the Harry Baikie Centre in Happy Valley-Goose Bay to enable the College of the North Atlantic and Memorial University with facilities to expand programs in Labrador.
  • We heard about the problems many coastal communities have in attracting qualified professionals, especially teachers.
  • Judy Pardy of the Southern Aurora Development Corporation stressed the importance of developing a world-class forest industry.
  • Cleon Moores of the Labrador Straits Development Corporation provided a "biting" update of that region�s fight against blackflies.
  • There were concerns with respect to the high cost of power, air travel, and the lack of facilities for RV travelers.
  • We also heard of some great success stories. The Mining Technology program at the College of the North Atlantic in Labrador City, we were told, will help ensure there�s a future qualified workforce for the mining industry.
  • And we were especially pleased, and in particular Deputy Premier Tulk, with the news that only 10 people, out of 1,900, had contacted the Outreach office in the Labrador Straits looking for work from job creation funding.
  • All of your concerns were valid, and I can assure you that we, as a government, will do whatever we can, within our means, to ensure they are addressed.
  • I believe it is important to participate in such discussions, as they provide a good opportunity to explore ways in which we can focus on strengthening the rural agenda, and helping you � the rest of the province � understand Labrador�s important role in our economy.
  • The cabinet committee is responsible for implementing the province�s Jobs and Growth agenda and, as such, the sharing of information with, and from, the REDBs, in my view, is not only important, but vital.
  • This province has seen steady economic growth in recent years, and that growth is expected to continue. Make no mistake, many of you here tonight have played a major role in that growth, and I want to thank you for your hard work and commitment.

Voisey�s Bay

  • I would like to speak a little about some of the exciting economic opportunities on our doorstep.
  • With respect to Voisey�s Bay, I am told that negotiations with Inco are going very well. The working environment � which has included the necessary suspension of public comments by either party � has allowed for frank and positive discussions.
  • Both negotiating teams continue to look for common ground on all issues.
  • As a government, however, we have made it quite clear that this province must achieve maximum benefits from this project. Without this objective, the project will no go ahead.
  • When we achieve a successful agreement, Voisey�s Bay will have a profound economic impact in this province, particularly here in Labrador.
  • The initial project will include an integrated mine and mill/concentrator processing plant at Voisey�s Bay, along with supporting infrastructure such as roads, accommodations and port facilities at an estimated cost of $600 million.
  • Subsequent developments will include underground exploration, leading to the development of an underground mine and expansion of the concentrator, at an estimated cost of $750 million.
  • And it will also include a $200 million research and development program, part of which includes a demonstration hydromet facility at Argentia. Subsequent developments will see the construction of a $750 million commercial hydromet facility that will process Voisey�s Bay concentrate to a finished nickel project.
  • I think it is also important to note that Impact Benefits Agreements between Inco and Aboriginal groups will have a positive affects on our economy.
  • But there are still many challenges that have to be overcome before we reach the point where we have a final agreement.
  • We are just beginning to feel the impact the Sept. 11 terrorist attacks on the United States is having on the global business and investment community.
  • Low metal prices were already having a negative impact on base metal companies all over the world prior to the terrorist attacks. Since Sept. 11, we have heard reports of mining companies being forced to cut their exploration spending and defer their capital projects. The attacks have also made many companies wary about taking on additional risks.
  • Having said that, however, Government is cautiously optimistic a deal may be reached by the end of the year, and that significant project-related activity will take place as early as next year.

Other Opportunities

  • There are other opportunities, such as the development of Lower Churchill power.
  • As you know, on July 26th of this year, a letter of intent was signed with Alcoa to undertake a joint feasibility review on developing the Lower Churchill and building an aluminum smelter, or smelters, in the province.
  • We expect the results of that review within weeks.
  • There are also tremendous opportunities in the forest, fishing and agricultural industries.

Northern Ministers� Development Conference

  • Last month I had the opportunity to join other provincial ministers responsible for northern development at La Ronge, Saskatchewan.
  • The Department of Labrador and Aboriginal Affairs, like other provincial northern departments, is excited about this Federal-Provincial/Territorial forum. It is a positive step towards advancing social and economic development in Northern Canada, and I am pleased that our premier moved to create a Department to focus on Northern, Labrador and Aboriginal issues.
  • The forum provides an opportunity to reflect on our accomplishments, but yet focus on the many challenges that confront us.
  • As many of you know, I hosted last year�s forum here in Happy Valley-Goose Bay. It was the first time, in many years, that northern ministers actually got together to share ideas and talk about common interests � all in the name of social and economic development.
  • It was quite evident during the forum that the economic and social challenges we face as a province are not unique. And they�re certainly not unique here in Labrador.
  • Labrador is unique from the rest of the Province in terms of geography, history and economic development. Aboriginal issues are more current and germain to economic development in Labrador and mutually agreeable ways and means of mitigating concerns are being successfully addressed (such as Innu and Inuit land claims, IBAs, self-government, Sango Bay relocation, Innu registration, Labrador M�tis Nation access to Federal Aboriginal programs and services and so on).
  • Key social development challenges and requirements facing all Northern Canadians include social and economic capacity building and addressing the infrastructure requirements for sustainable development (such as recruitment and retention of professionals and roads/communications for infrastructure.)

Province Committed

  • These are interesting, challenging and visionary times for Labrador, and Government is moving forward to ensure that Labrador opportunities are realized to the benefit of all the province.
  • For instance, successful land claims negotiations with the LIA and the Innu will ensure economic, legal and social certainty for governance and business and social development.
  • As mentioned, the Premier announced in February of this year that the Minister�s office for the Department of Labrador and Aboriginal Affairs will be located in Labrador, bringing an executive arm of government to the region for the first time.

Supportive

  • As many of you know, before I entered provincial politics, I was actively involved in volunteering my time in all areas of Labrador. I know exactly the challenges that you and your communities continue to face on a day-to-day basis.
  • I have always been a strong supporter of Regional Economic Development Boards. In fact, I had the pleasure to work with many of your boards while I was acting minister of the former Department of Development and Rural Renewal last fall and earlier this year.
  • We have seen tremendous advancements in the state of community development over the past five years, and new opportunities and ideas are knocking at our doors. The strategic strengths of our province are being capitalized on in a manner that continues to propel us to the top of the country�s economic growth chart.
  • The REDB strategy is clearly working, and you, as volunteers, deserve to be congratulated. I would also like to congratulate the organizers of this week�s agenda.

Update - Jobs and Growth Strategy

  • I�d like to touch briefly on the province�s Jobs and Growth Strategy. Following a consultation process, in which Government heard more than 300 presentations, we released an interim report on the renewal Strategy for Jobs and Growth.
  • The final report was released this past spring. It outlined the fundamental policy principles that will guide the economy forward, the major opportunities for jobs and growths identified in the consultations, and the strategic priorities for action Government intends to pursue to keep the economy growing and ensure all Newfoundlanders and Labradorians share in the benefits of continued growth.
  • As you know, this strategy allows for an important role for Regional Economic Development Boards, and it pays special attention to the needs of Labrador.
  • We believe all regions must share in our economic progress and, to that end, Government will provide the tools for communities to take greater control of their futures.
  • The RED Boards will continue to be the core institutional mechanism to achieve this from an economic development perspective. Some of our priorities are :

                    - To establish a sharper focus on REDB priorities through a more proactive 
                    relationship with the 20 RED Boards. 

                   - To convene a Rural Forum to showcase business accomplishments in all areas of the
                   province, and to encourage new investment in rural areas.  

                   -To strengthen the capacity of municipalities to participate in economic development at
                   the local level.   

                  - And to address the unique and extraordinary needs and challenges in 
                  Labrador, through transportation and other infrastructure investments, and by adopting
                  Labrador Economic Action Plan, based on the Jobs and Growth Strategy and 
                  the work a of REDBs.

  • Through ongoing co-operation and working to meet our common challenges, we will be in a better position to learn from one another, and to improve our support for economic and social development.
  • One of the more important tasks of Rural Economic Development Boards is to raise awareness of the accomplishments, contributions and potential of this province. To do this, we need to increase our networking and strengthen our internal networks of intelligence sharing.

Conclusion

  • Again, thank you for inviting me to speak to you here tonight. But before I go, I�d like to throw out a couple of challenges to the volunteers and staff of the RED Boards. I�m sure some of you heard me say this before:

                - REDBs need to focus on specific strengths and opportunities.

               - REDBs can�t be all things to all people.

               - You must identify priorities and carry them forward.

               - You must work closely with sub-zonal groups and other partners.

               - You must work closely and co-operatively with Government line Departments.

  • I encourage you to keep up the good work � day and night.
  • Thank you.

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