February 8, 1996
(Executive Council)

Details of Economic Renewal Program confirmed

Fred Mifflin, Minister of Fisheries and Oceans, and Premier Brian Tobin today confirmed the specific initiatives to be implemented in a $100 million Economic Renewal Program for Newfoundland and Labrador.

On June 16, 1995, the Government of Canada and the Government of Newfoundland and Labrador announced the general elements of the Economic Renewal Program, which will be cost-shared by the federal and provincial governments. The federal government's share will be $80 million and the province's share $20 million. In making the announcement at the time, it was noted that details were being finalized with further confirmation to be made as final decisions were made. Negotiations were recently concluded and the agreement will now be submitted to the federal Treasury Board for final approval.

"This program had been developed in response to the collapse of the groundfish fishery in Newfoundland and Labrador," said Mr. Mifflin. "The focus of the Economic Renewal Program will be to target specific sectors outside the traditional fishery that offer the most potential for sustainable development and job growth over the medium- to long- term."

"The Government of Canada and the Government of Newfoundland and Labrador have worked together to develop this program," Premier Tobin noted. "This agreement will build jobs and create economic opportunity. It is a basis upon which we can build our new economy and renew the hope and prosperity of areas devastated by the fisheries crisis."

Mr. Mifflin and Mr. Tobin confirmed today that agreement has been reached between the two governments on a wide range of projects, primarily in three sectors: (1) aquaculture; (2) tourism; and (3) advanced technology.

Of the $100 million program, $20 million is being made available for specific aquaculture initiatives to help the industry reach its full potential. Approximately $23 million will be interested in tourism- related projects throughout the province, chief among which will be an $11 million program to improve tourism infrastructure at a range of sites including an archaeological interpretation centre at Ferryland and the Ryan Premises in Bonavista. A further $36 million will be invested to develop the Advanced Technology Industry. Examples of specific initiatives include a $10 million fund to build an information technology sector based on world-class, small to medium-sized enterprises. Another $11 million will help to consolidate the province�s distance learning resources, giving affordable information highway access throughout the province, while helping to commercialize some of the distance education products developed in the province. The balance of available funding, $21 million, will be used to invest in a variety of other projects such as $5 million for the Centre for Sustainable Management of Forest Ecosystems.

The Economic Renewal Program was developed over the past two years in a cooperative effort between the Government of Canada and the Government of Newfoundland and Labrador, and the Economic Renewal Program complements the federal government's $1.9 billion Atlantic Groundfish Strategy.

"The program will be implemented and managed jointly between the two governments, with the Atlantic Canada Opportunities Agency (ACOA) taking the lead to the federal government," Mr. Mifflin said.

Mr. Tobin noted: "Revitalizing our economy and creating new employment opportunities in non-traditional sectors is the key to the future. It is our plan to proceed with implementation of the program as of April 1, 1996."

     Contact:

     Bonnie Mewdell
     Office of the Minister
     Department of Fisheries and Oceans
     (613) 992-3474

     Cathy Coady
     Office of the Premier
     (709) 729-3570 

     Jane Oliver, ACOA
     (709) 772-2935

CANADA-NEWFOUNDLAND ECONOMIC RENEWAL PROGRAM EXPENDITURE ELEMENTS

1.0  AQUACULTURE                   $20 MILLION

     About 40 action items have been identified and are organized under
     the following headings:

     A.   Financial and Marketing - $1 million
          This program component will facilitate development of the
          industry.

     B.   Coastal Zone Aquacultural Planning - $1 million
          This program component will assist industry to maximize
          sustainable development opportunities by reducing the
          potential for conflicts, harmonizing policies and procedures
          and providing data analysis tools.

     C.   Communications, Advocacy and Education - $1 million
          This program component will enhance the skills, knowledge and
          awareness level of industry participants through support of an
          industry wide association, production and distribution of
          educational material, development and delivery of training
          programs and general awareness initiatives.

     D.   Applied Research and Development - $9 million
          This program component will provide a basis for developing the
          scientific knowledge required for the sustainable development
          of the industry both in the short and long term.

     E.   Extension Services - $7 million
          This program component will promote the expansion of the
          industry through the creation of support infrastructure and
          industry services.


     $1 million of the $20 million Aquaculture Program remains
unallocated.


2.0  TOURISM                       $23 MILLION

     A.   Interpretation Facilities and Site Management - $10.55 million

     -    L'Anse aux Meadows: enhancement of the Visitor Reception
          Centre and interpretation programming - $0.25 million

     -    Terra Nova National Park: Marine Visitor Centre at Salton's
          Brook and enhanced visitor services - $3 million

     -    Ryan Premises: completion of the restoration for mixed museum
          and commercial use of the Ryans' merchant factory at
          Bonavista; provision of commercial outlets for private sector
          and not-for-profit organizations - $1.6 million

     -    Cape Spear National Historic Site: enlargement of the Visitor
          Centre to include a Marine Interpretation Component - $0.5
          million

     -    Signal Hill Tattoo: construction of a permanent facility to
          house the Tattoo Military Animation Program - $0.5 million

     -    Grenfell: construction of a new Grenfell Interpretation Centre
          building in St. Anthony - $2.7 million

     -    Interpretation Assistance to Community Museums: funding to
          assist local museums improve their interpretation programs
          through the enhancement of permanent exhibitions - $0.5
          million

     -    Ferryland: enhancement of archaeological interpretation centre
          - $1 million 

     -    Fleur de Lys: development planning and enhancement of the
          interpretation program and visitor facilities of the Dorset
          Eskimo soapstone quarry - $0.5 million


     B.   Tourism Marketing - $3.8 million
          Funding will be used for the expansion of tourism marketing by
          the provincial and federal governments, industry groups and
          municipalities including generic marketing and additional
          efforts directed to site or industry-specific initiatives. 

     C.   Reservation System - $1 million
          Funding will be used to implement a tourism reservation
          system, by which prospective tourists can book accommodations
          and events when they call a central number for information. 

     D.   Cultural Festivals/Industry Development  - $2.5 million
          Funding will be dedicated to undertake strategic interventions
          within the established and professional cultural industries
          and the arts which will contribute significantly to the
          sustainability of the sector.

     E.   Marketing Newfoundland as a Film, Video and Audio Location -
          $1 million
          Funding will be used to identify Newfoundland and Labrador's
          market niche and promote the province as a desirable place to
          shoot film and video productions. 

     F.   1997 Events Support - $2.5 million
          The agreement will facilitate the staging of events forming
          part of the celebration of the 500th anniversary of John
          Cabot's voyage to Newfoundland.

     G.   Linear Park - $0.5 million
          Funding will be used for a linear park in Newfoundland and
          Labrador.  Agreement funding will be used for capital aspects
          of the project, such as establishing design and standards
          parameters for the trail in order to ensure a measure of
          consistency.

     H.   Historic Pageants - $1 million
          Funding will be provided to develop high quality, strategic,
          living interpretation programs around the province.



3.0  ADVANCED TECHNOLOGY           $36 MILLION

     A.   Post-Secondary Distance Education and New Media Learning - 
          $11 million
          Funding will be used to integrate the province's distance
          learning resources and build commercial capability in the new
          media learning sector.  Key elements include network
          integration and technical upgrades, operationalizing the Open
          Learning Network and a catalyst program for development and
          delivery.

     B.   Support for Advanced Technology and Implementation of IT task
          Force Recommendations - $10 million
          Funding will be used to implement selected recommendations of
          the provincial ONLINE Task Force and other advanced technology
          initiatives which support economic renewal in the small
          business sector.

     C.   Marine Communications Strategic Alliance and Partnering
          Service - $5 million
          A dedicated Marine Communications Partnering Program will be
          established to foster linkages at all levels to increased
          technology transfer, research and development and increased
          commercialization of Newfoundland-based technologies in marine
          communication, navigation and surveillance.

     D.   Research Infrastructure Fund - $2 million
          This assistance will support Memorial University's
          competitiveness in national and international competitions for
          research and development funds.

     E.   Innovations Partnering Service - $ 1.5 million
          A pilot federal/provincial Innovations Partnering Service will
          be established to foster linkages at all levels leading to
          commercialization of technology-based products and services in
          the province.

     F.   Ocean Technology Contract Fund - $3 million
          A three-year Ocean Technology Contract Fund will be
          established.  This fund would support public, private
          collaborative research and development in areas where there is
          comparative scientific and technological advantage in ocean
          technology, and there are internationally emerging market
          opportunities.

     G.   Technology Cluster Facility - $1 million
          A Technology Cluster Facility will be established at Memorial
          University to provide support services, business assistance,
          and access to scientific, technological and human resources of
          the University for science and technology-based firms that are
          starting up.  

     H.   Newfoundland Business Networks - $1 million
          Networks of Newfoundland businesses will be created to exploit
          commercial opportunities beyond the marketing, production or
          distribution capabilities of individual firms, emphasizing
          information technology enterprises.

     I.   Mentorship Service - $1.5 million
          A pilot mentorship service will be provided by a private
          sector body to small businesses and entrepreneurs in
          Newfoundland and Labrador with emphasis on information
          technology enterprises.

     J.   Management Best Practices Library and Risk Assessment Model
          for Knowledge-Based Industries - $0.29 million
          Funding will be used to develop an electronic management best
          practices library with diagnostic tools and development and
          implementation of a risk assessment model for knowledge-based
          industries for government use in financial assistance
          programs.


4.0  OTHER                         $21 MILLION

     Agreement funding will be provided for a variety of economic
     development initiatives.  Example of these projects include         
     $5 million for a Centre for Sustainable Management of Forest
     Ecosystems, which will be established in Corner Brook, and          
     $2 million for strategic planning and analysis to provide direction
     in economic and regional development activities, to identify new
     growth opportunities in all sectors.