Economic development initiatives announced for Bay St. George

Trevor Taylor, Minister of Innovation, Trade and Rural Development (INTRD) and chair of the Bay St. George Task Force, today announced provincial government investments, totaling over $1.45 million, to boost economic development in the Bay St. George area. Minister Taylor assumed the role of task force chair upon being appointed to INTRD.

"Building on previous initiatives developed under the task force, the provincial government is making additional investments in tourism, agriculture, metal fabrication and training," said Minister Taylor. "In recognition of the progress made over the last seven months, we are also formally announcing the extension of the task force�s community development committee until December. The committee has made a significant contribution in helping develop projects such as those being announced today and I thank the committee members for their continued work and commitment to the region."

"I am pleased to learn that the tenure of the task force�s community development committee has been extended," said Cyril Organ, chair of the community development committee. "It is a reflection of the hard work the committee members have put into re-building the economy of the Bay St. George region and the commitment we have to seeing the area succeed."

Training
The Bay St. George Campus of the College of North Atlantic will receive $400,000 under the province�s Regional/Sectoral Diversification Fund (RSDF) to establish a two-year Diploma of Applied Arts in Film and Video Production. This will complete the suite of creative communications programs and lend to the further development of the area as a centre of creative communications.

"The funding is part of a $1.1 million initiative between the College of the North Atlantic and the Government of Newfoundland and Labrador that will see the creation of a new program offered this fall at the Bay St. George Campus and will enhance employment opportunities for our graduates," said Joan Burke, Minister of Education and MHA for St. George's-Stephenville East. "There is a growing industry demand for formal entry-level training in film and video in the province, an industry that has seen production expenditures increase from $2 million in 1997 to $21 million in recent years."

To add to emergency response training capability in western Newfoundland and allow paramedics to be trained to the highest levels, $584,000 for equipment will be provided under RSDF to establish a paramedicine program at the Bay St. George Campus. This is in addition to the program offered at the St. John's campus.

Tourism
Tourism is a priority for the region and to promote four-season attractions, a number of tourism product and market development initiatives are underway.

Over the next three years, approximately $308,000 will be provided to the Newfoundland T�Railway from the province�s RSDF, to help upgrade remaining trestles along the T�Rrailway in the Bay St. George area, enhancing snowmobile and summer recreation products.

The newly-formed Roofed Accommodations Business Network will receive $12,635 from INTRD�s Business and Market Development Program (BMDP) to pursue marketing activities. The network was formed last November to address low occupancy rates. The network will develop a referral system and marketing strategy to keep tourists in the area longer. Spruce Pine Acres Country Inn has received an investment of $4,575 under BMDP to help implement a marketing strategy to promote the inn�s newly-opened fine dining facility as the first of its kind on the Port au Port Peninsula.

"The investments in tourism, culture and recreation are important because they build the tourism capacity in the region and help us to provide a diversified tourism experience to visitors traveling in the Bay St. George area," said Jim Hodder, MHA for Port au Port.

Agriculture
Agriculture is another key industry for the Bay St. George area and funding has been provided for two initiatives to explore development opportunities in the industry. The Quality Agricultural Producer Co-operative has received $3,450 through the BMDP to undertake market research to explore the potential opportunity for local farmers to expand into secondary processing of meat products.

To further assist with expansion of the local industry, the Bay St. George South Area Development Association has received $7,458 to determine the potential of using current pasture lands for multi-agricultural purposes.

Additionally, the Department of Natural Resources, through the Provincial Agrifoods Assistance Program, has recently approved a total of $124,250 for the districts of St. George's-Stephenville East and Port au Port. The funds will go to 16 businesses for activities such as land development and enhancement, pasture fencing, hay storage, equipment purchase and facility improvements.

Metal fabrication outsourcing
Another opportunity being explored by the community task force is the potential for metal fabrication companies from this province to compete for outsourcing contracts with Alberta companies, resulting in local employment opportunities and industry expansion.

The Western Metalwork Network has received $7,500 to assess the ability of its member companies to avail of opportunities presented by outsourcing contracts.

"These investments continue to advance opportunities in tourism, knowledge-based and value-added production sectors and we look forward to working with the area on future developments," said Minister Taylor.

The Regional Sectoral Diversification Fund is a $5 million fund of the Department of Innovation, Trade and Rural Development and a component of the province�s Comprehensive Regional Diversification Strategy. The fund provides non-repayable contributions to economic development agencies for initiatives that address regional and sectoral development and diversification.

The Business and Market Development Program provides new entrepreneurs and expanding small businesses with funding to help them acquire the necessary expertise to pursue new business ideas and new markets for their products or services. The program is intended to support new growth opportunities in the economy, such as value-added manufacturing activities and export-oriented opportunities.

Media contact: Lynn Evans, Communications, (709) 729-4570, 690-6290

2006 08 18                                  9:35 a.m.