Minister releases interim Jobs and Growth report

Development and Rural Renewal Minister Beaton Tulk, chair of the Cabinet Committee on Jobs and Growth, today released the interim report of the public consultation held this past fall and winter.

"We heard from hundreds of Newfoundlanders and Labradorians during 23 public sessions and 10 sectoral forums held during the Jobs and Growth consultation process," said Minister Tulk. "We have listened to the views of the residents of this province and identified areas of opportunity. Today, in the interim report and through the budget, government has acted to address a number of the areas identified in a concrete, substantive way."

"The vision of the people we heard from is of a vibrant, prosperous Newfoundland and Labrador," said Minister Tulk. "Today�s budget reflects that vision, with an emphasis on rural Newfoundland and Labrador. The budget announcements also reflect the major themes which ran throughout the Jobs and Growth consultations."

These themes include:

• a renewed confidence in the province�s economy and an attitude of people taking responsibility for controlling their own futures;

• the role of government in creating the right environment to foster the province�s economic development;

• the need to form strategic partnerships and take advantage of strategic growth opportunities in key sectors of the economy;

• recognition of the importance of education as a foundation for economic growth; and,

• the importance of building strong communities and strong regions, both economically and socially.

Some highlights from the 2000/2001 budget which reflect government�s early response on the Jobs and Growth renewal process:

• Increase the payroll tax threshold from $150,000 to $400,000, removing approximately 1,300 small businesses across the province from the payroll tax.

• Introduction of a venture capital tax credit program to provide investors with a tax incentive to invest in local business.

• Establishment of a new $2 million capital equity program in the Department of Development and Rural Renewal, to match investments of up to $50,000, for expansion of small business opportunities in emerging, growth areas of the economy.

• Establishment of a new $500,000 business and market development program in the Department of Development and Rural Renewal, to help entrepreneurs acquire the expertise needed to purse new business ideas and markets.

• An increase in resources for transportation infrastructure, a strategic investment area identified during the Jobs and Growth consultation. The provincial capital roads program will total $132.5 million for 2000-01.

• A pilot project to allow access for on-line renewal of drivers� licences and motor vehicle registrations will be introduced as part of the development of a government-wide approach to dealing with on-line access to government services where feasible. The Jobs and Growth consultation identified the importance of developing the IT industry and government believes it should lead by example.

• Extension of the Mineral Exploration program to five years from three, in response to key recommendations government heard during the Jobs and Growth forum on the mining sector. Funding for the program is also increased this year by $250,000, bringing it up to $2.25 million for 2000-01. This will be matched by industry, for a total expenditure of $4.5 million this fiscal year.

• Resources for the Quality Assurance program in the Department of Fisheries and Aquaculture will be doubled from $250,000 to $500,000, to build on the significant progress already made in this area. This was identified as a key initiative in the fisheries sectoral forum.

• Cultural industries initiatives include a 52 per cent increase in funding for the Newfoundland and Labrador Arts Council, bringing its annual budget to $732,000, and $400,000 for the Heritage Foundation of Newfoundland and Labrador. These initiatives reflect the growing importance of cultural industries as both the foundation of our unique character and an emerging economic force.

• Continuation of a tuition freeze at the post-secondary level for two more years, in an effort to maintain access to higher education. Government recognizes, and clearly heard during the Jobs and Growth consultation, the vital role of education in building a strong economy. To this end, government is also undertaking a review of the Student Aid program.

•  Establishment of a $1 million Literacy Endowment Fund, to be matched by the federal government. Literacy is a key component of a sound Jobs and Growth agenda.

• Additional funding of $1.5 million will be provided for learning resources to enhance the curriculum in Language Arts, Mathematics and Religious Education. The need to enhance curriculum to promote excellence in our schools was a recurring message heard during the Jobs and Growth consultation.

• Additional funding of $1 million to expand the NewfoundJOBS program, a commitment of $2 million for 2000-01 for 2,000 post-secondary student jobs under the Student Work and Services Program, and an additional $5.5 million for other youth employment initiatives, to be delivered by the Department of Human Resources and Employment. These initiatives recognize key themes heard during the consultations, namely, the need to support people who are entering or re-entering the workforce and the recognition of the crucial role young people will play in creating future economic success for the province.

• Establishment of a Labour Market Development Council to provide a forum for collaboration and cooperation to ensure our post-secondary education and training system can respond effectively to the needs of people and the economy in a rapidly changing world. The need for proactive measures in this area was clearly heard during the Jobs and Growth consultation.

• Continuation of the integration of social and economic development will be supported through the $2 million Strategic Social Plan implementation fund to develop the new regional council approach throughout the province. This reflects the importance of what we heard about stronger communities building a stronger economic and social base in the province.

• Continuation, through the Department of Municipal and Provincial Affairs, of government�s $100 million multi-year municipal capital works program and the $20 million annual municipal capital works program, demonstrating government�s commitment to enhancing community infrastructure as a foundation for economic development.

• Government will explore new models of strategic cooperation, in partnership with business, labour and community, through the examination of working models in other economies, such as Ireland.

• Government will engage the community-based sector, in consultation with the Premier�s Council on Social Development, to develop strategies and ensure appropriate linkages are made in integrating social and economic development.

• "Government must help develop the required capacity and capability within communities and within regions so that they can take control of and shape their own future," said Minister Tulk. "This approach is consistent with the principles which gave rise to the creation of the 20 regional economic development boards in the province several years ago. It also goes to the essence of the fundamental strategy adopted in the province�s Strategic Social Plan."

• "The challenge facing government is to help communities and regions help themselves, by creating the right environment for economic development. The regional economic development boards will continue to be the core institutional mechanism to achieve this, along with new directions to be charted in the Strategic Social Plan," said the minister.

• "Government will continue to reflect and act on the messages heard during the Jobs and Growth consultation and will issue a final report in the coming months," said Minister Tulk.

• Development and Rural Renewal

•  Education

•  Executive Council

•  Fisheries and Aquaculture

•  Finance

•  Human Resources and Employment

•  Mines and Energy

•  Municipal and Provincial Affairs

•  Tourism, Culture and Recreation

•  Treasury Board

•  Works, Services and Transportation

• Interim Report on the Renewal Strategy for Jobs and Growth

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.

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