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November 25, 1998
(Industry, Trade and Technology)


The following statement was issued today by Charles Furey, Minister of Mines and Energy, on behalf of Judy Foote, Minister of Industry, Trade and Technology. It was also read in the House of Assembly:

On behalf of my Honourable Colleague, the Minister of Industry, Trade and Technology, I would like to take this opportunity to provide an overview to the House of Assembly of the benefits that have, and will continue to accrue to Newfoundland and Labrador from natural resource developments in our province, specifically in the oil and gas, hydro electricity and mining industries.

Four major oil companies: Mobil Oil, Husky Oil, Norsk Hydro and Petro Canada have opened offices in the province and employ a total of 80 people. This is in addition to HMDC which employs in excess of 700 people in the province. Halliburton will also generate up to 100 new jobs at its integrated well services facility located in Mount Pearl.

The Terra Nova Alliance employs approximately 280 staff and contractors. In addition, the fabrication of two modules for Terra Nova at the Bull Arm site, costing $100 million, will employ approximately 700 people. It is estimated that approximately 1,100 people will be employed by the project during the pre-production phase. Furthermore, 450 long-term employment positions will be created during the operations phase. Eighty per cent of total employment activity on the Terra Nova development will occur in this province.

The Hibernia project generated significant employment during the pre-production phase and continues to do so now during the operations phase. Additional employment opportunities will result from related infrastructure developments. For example, 40-50 Newfoundlanders and Labradorians will be employed at the recently opened $200 million transhipment facility built by the Hibernia consortium at Whiffen Head.

Activity is ongoing for the Terra Nova project. For example:

  1. The provision of engineering and procurement services for topsides by AGRA Monenco to the Terra Nova Alliance.

  2. The provision of fire detection and vessel control systems for the Terra Nova FPSO vessel by SEA Limited, a local company.

  3. St. John's Dockyard Ltd. (NEWDOCK) announced plans this summer to establish a Newfoundland capability to fabricate subsea template and manifold systems for the Terra Nova development. This is an $8 million contract which will assist NEWDOCK in positioning itself to complete subsea fabrication work on other petroleum developments world-wide. NEWDOCK will also develop the ability to test subsea systems.

There are numerous other examples of contracts resulting from the Terra Nova project that have been awarded to businesses in this province, including services for freight forwarding, geotechnical, environmental, model testing, telecommunications, and equipment. As the project progresses additional supplies and services will be required and companies in the province will be in a position to meet these requirements.

Since the Hibernia project began, over 6,000 purchase orders and contracts were awarded to companies in this province and approximately 100 firms in Newfoundland and Labrador have entered into joint ventures with international companies.

The skills and expertise gained by local companies and employees during the construction and start-up phases of the Hibernia project have subsequently led to new contracts and opportunities in other parts of the world. For instance, Cahill State Electrical completed work on the Confederation Bridge, Pro-Dive Marine Services have secured contracts in the Nova Scotia offshore, OIS Fisher Inc. is completing inspection and maintenance services world-wide, and Friede Goldman Marystown is completing rig modification for the Gulf of Mexico. Newfoundland and Labrador will continue to benefit over the long-term from these projects.

The Labrador Hydro Project is another example where the future development of natural resources in this province will contribute significant benefits.

To date, over 30 environmental and engineering contracts have been awarded, with a total value in excess of $10 million. Eighty-five to 90 per cent of these contracts were awarded to businesses with a presence in this province.

To date, more than 300 people in Newfoundland and Labrador have worked directly or indirectly on the Labrador Hydro Project. It is estimated that this project will generate 70,000 person years of employment. Approximately 78 per cent of these positions are expected to be filled by Newfoundlanders and Labradorians.

The development of the mining industry has and will continue to provide substantial benefits to the province.

In 1997, the province's mining industry employed an average of 3,000 people with the total export value of mining industry surpassing $1 billion - making it the leading resource sector in the province. The total value of mining industry is expected to again exceed $1 billion in 1998.

Mineral exploration expenditures in the province are forecasted to be $50 million in 1998. It is estimated that $35 million will be spent in Labrador with most exploration programs directed toward base-metal targets. Exploration leads to the discovery of new resources and, in turn, results in the generation of new wealth through new investment and employment and business opportunities in the one of the province's primary engines of growth.

The government has made clear its position that it will not waiver in its commitment to ensure that the province benefits from the processing of rich mineral deposits such as Voisey's Bay.

It is important to recognize that this province has benefitted from the industrial developments I have described and that there are significant benefits to be realized from future development of natural resources in this province. The Government of Newfoundland and Labrador is committed to working cooperatively with industry to ensure that these benefits are maximized.

1998 11 25 2:15 p.m.


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