April 26, 2007
Government Invests $32 Million to Attract Business to the Province
The Williams Government has strengthened its commitment to provide long-term sustainable business development in all regions of Newfoundland and Labrador with the Budget 2007 announcement of a $25-million business attraction fund and a $7-million business grants fund. The new funding programs are aimed at providing the financial means to assist organizations interested in the province as a place to invest in setting up business, and to take advantage of new opportunities.
"Our government is committed to solidifying the position of Newfoundland and Labrador in the global marketplace," said the Honourable Danny Williams, Premier of Newfoundland and Labrador. "In a globally-competitive environment, it is critical to provide new and existing businesses with the incentives they need to successfully operate in Newfoundland and Labrador. These programs will assist us in fostering a positive business environment, enabling job growth, and showcasing on the international stage what Newfoundland and Labrador has to offer from a business investment perspective."
The business attraction fund of $25 million will provide for large-scale, strategic investments in business ventures and infrastructure for the purpose of attracting business to Newfoundland and Labrador. Through this fund, the Provincial Government will be able to provide loans and equity investments to companies interested in conducting operations in the province.
In addition to the business attraction fund, the Williams Government has also committed $7 million for a grants fund. This non-repayable fund is designed to assist with start-up and initial operational costs for large-scale companies setting up business in the province. The focus of the fund will be on improving the investment climate and the ability to attract viable business prospects to Newfoundland and Labrador.
"The new funding allocated to the Department of Business is a critical milestone to attract investment and position the province as the preferred choice for business operations," said the Honourable Kevin O�Brien, Minister of Business. "We now have the ability and flexibility
to provide funding for business opportunities that will benefit the province. Fostering a positive business environment and supporting companies interested in operating in Newfoundland and Labrador is a high priority for this government. The new programs will have favourable long-term effects on the provincial economy, job creation, and the opportunities for existing local companies to supply goods and services to new businesses."
To facilitate the operations of the business attraction fund and grants fund, the Provincial Government has also committed $1.9 million in core funding to support the business attraction and promotion mandate of the Department of Business.
"The new funding programs will significantly enhance the province�s efforts in business attraction," said Premier Williams. "This is a multi-million dollar strategic long-term investment by our government to grow and diversify the economy of Newfoundland and Labrador."
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2007 04 26 2:05 p.m.