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November 19, 1998
(Development and Rural Renewal)


The following statement was issued today by Beaton Tulk, Minister of Development and Rural Renewal. It was also read in the House of Assembly:

I would like to inform members of this House of the substantial progress that has been made by government and the regional economic development boards in moving the economic agenda forward in the 20 economic zones of the province.

Members will be aware that the centerpiece of this government's approach to regional economic development is to engage key community stakeholders in the 20 economic zones under the leadership and coordination of the regional economic development boards. Communities themselves have been empowered, in partnership with government, to identify the most effective ways of developing their economies on a business oriented basis. Previous efforts tended to be centrally driven, were largely uncoordinated at the regional level, and were ad-hoc in nature. These approaches did not work.

This government is interested in approaches that will result in permanent long term solutions to our economic challenges - solutions that also actively involve its citizens - not solutions that are band-aid and short-term in nature.

I am pleased to inform the House that 18 of the 20 regional economic development boards have completed strategic economic plans for their zones, based on consultations with key stakeholders in their areas. The boards are now focused on implementing those plans to diversify and strengthen their economies and create new sustainable job opportunities and growth in their regions. Many members of this House have been directly engaged with the REDBs in this process. This is important work for all members and I encourage them to continue to support and be active with the REDBs in advancing the economic growth agendas in each and every zone of the province.

The regional economic development boards have been aggressive in identifying initiatives that offer the greatest opportunity to improve the economy of their zones. Government has committed to work with each board to ensure that the available resources of both orders of government are harnessed to advance these initiatives in the most expedient manner feasible. The Cabinet Committee on Rural Revitalization met with the boards in their own zones last year to review their strategic economic plans. And just last week the cabinet committee commenced another province wide set of meetings with each board to take stock of progress made to date and to advance priority economic initiatives as fast as we can. The overall progress made by the REDBs has been impressive.

We have made substantial gains in the past two years and there are encouraging signs that our efforts are starting to yield real dividends. While the unemployment rate remains at an unacceptably high level, and out-migration regrettably continues, there are 10,700 more people working today than there were a year ago. And employment levels have increased every month since August of 1997, except for a brief dip in August of this year that was caused by the distorting effect of an earlier crab season than normal. The growth in employment in the first 10 months of this year alone has translated into a 1.3 point decline in the unemployment rate, the fourth best improvement among all provinces. And these improvements are not restricted to the St. John's area as some would like us to believe. The economy is clearly moving in the right direction.

In 1992 some 40,000 people and over 300 communities in this province lost their whole economic structural base. For a less resilient people that would have meant the end of our community and culture.

Today I believe were are on the road to recovery. Notwithstanding this positive trend, much hard work lies ahead in rebuilding and restructuring the economy of our province, especially in rural areas. It would be unfair and unrealistic to expect that the regional economic development boards or anybody else can solve all the economic and employment challenges confronting the province in the short term. Substantial progress has, nonetheless, been achieved over a relatively short period. There is a growing sense of optimism and confidence throughout the province. The building blocks are now solidly in place and the regional economic development boards are playing a critically important role in this process.

In closing, I would like to acknowledge the dedication and energy that the hundreds of volunteers who serve on the 20 regional economic development boards have brought to the process thus far. I encourage them to maintain the momentum generated to date and never lose faith in their ability to make a difference. It is all too easy to be critical of new approaches and to call for a return to old ways and quick fixes when confronted with difficult circumstances. This is not the answer in today's world. We need to forge ahead in a positive and progressive manner - one step at a time - and do so by working together at the community level to rebuild the economy in all parts of this province.

1998 11 19                            3:05 p.m.


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