NLIS 1
March 5, 2003
(Finance)

 

Board�s outlook confirms province�s assessment

Finance Minister Joan Marie Aylward said the Conference Board of Canada�s provincial outlook confirms government�s own assessment that the economy of Newfoundland and Labrador will continue the strong growth trend it has maintained for the past several years.

"The overall economic gains that we have experienced will continue for the foreseeable future, and our economy will strengthen even more with construction activity associated with Voisey�s Bay, and offshore oil production," she said.

Minister Aylward said that while megaprojects such as Voisey�s Bay are significant factors in determining the economic strength of the province, they are not the only indicators of economic growth.

"The trend line for key economic indicators is moving in the right direction. For the past few years we�ve seen gains in employment, capital investment, retail sales, exports, as well as an increase in the labour force," she said.

"Close to 27,000 new jobs have been created in the province since 1996, and we expect further employment growth this year from White Rose, Voisey�s Bay and other sectors of the economy."

Minister Aylward was commenting on The Conference Board of Canada�s Provincial Outlook � Winter 2003 that was released on Tuesday, March 4. The board noted that Newfoundland and Labrador led the country in economic growth in 2002, and "is poised to grow by 4.7 per cent in 2003 due to offshore oil production and the construction of the Voisey�s Bay mining project."

The minister noted that while the province�s overall economic growth is strong, significant and predicted to continue, this doesn�t always generate as much revenue for the provincial treasury as government would like.

"It�s good news, not-so-good news for us in some respects," she said. "This province used to generate only 40 per cent of our own revenues and depended on getting the remainder from the federal government. Now the opposite is true. We�re generating almost 60 per cent of our own revenues. That�s a major turnaround, but the downside is that the formula used to determine the equalization payments we receive from Ottawa is not equitable for this province."

Minister Aylward said the province�s overall strong economic position is a factor she will take into account as she prepares the province�s 2003-04 Budget.

Media contact: Josephine Cheeseman, Communications (709) 729-0329

2003 03 05                                       2:45 p.m.


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