Budget 2005 provides more than $9 million for community, regional and sectorial development

Kathy Dunderdale, Minister of Innovation, Trade and Rural Development and Minister responsible for the Rural Secretariat, and Jack Byrne, Minister of Municipal and Provincial Affairs, today announced Budget 2005 initiatives that will enhance regional and rural diversification and generate employment opportunities for rural regions of the province.

Regional/Sectorial Diversification Fund
"In Budget 2005, government has established a $5 million Regional/Sectorial Diversification Fund," said Minister Dunderdale. "The fund will address the present funding gaps of sector organizations, economic development groups and community-based organizations involved in economic development."

Through the Regional/Sectorial Diversification Fund, government will provide contributions for economic development initiatives that address regional and sectorial development, diversification and innovation. Funding will be allocated based upon criteria such as the project�s ability to access funding from other sources and whether the project has economic development benefits for the region. The aim is to contribute to long-term sustainable employment and growth of small and medium-sized enterprises in the region. Details on program criteria will be released in the coming weeks.

Community Enhancement Program
Budget 2005 also provides $4.25 million to the Community Enhancement Program. Designed to help low-income residents, this program will highlight employment projects which have an economic development or community infrastructure objective. This program will be directed towards rural Newfoundland and Labrador.

"The Community Enhancement Program will offer employment opportunities which will provide long-term sustainable benefits to communities, thereby making them stronger," said Minister Byrne. "This program recognizes the commitment that our rural residents made and, in turn, the help they need now to survive."

Rural Secretariat
Government recently announced the structure of the Rural Secretariat that will work with local and regional partners to build strong and dynamic communities. It will comprise nine regional councils and one provincial council which will act as advisory bodies to government, providing guidance on rural and regional issues in all parts of the province.

"This government recognizes the importance of rural Newfoundland and Labrador to the economic growth of our province," said Minister Dunderdale. "The Regional/Sectorial Diversification Fund, the Community Enhancement Program and the Rural Secretariat build on the strengths of all regions of the province to enhance regional economic and social development."

Media contact:
Lynn Evans, Innovation, Trade and Rural Development, (709) 729-4570, 690-6290
Vanessa Colman-Sadd, Municipal and Provincial Affairs, (709) 729-1983, 682-6593

2005 03 21                  3:30 p.m.