Innovation, Trade and Rural Development
Business
Finance
Fisheries and Aquaculture
March 29, 2010

Advancement of the Williams Government's ambitious business development agenda is strengthened with investments of $126 million in Budget 2010. Greater business development in key industry sectors will bring long-term employment of skilled workers, business expansion and pay dividends for future generations.

Building upon Budget 2010's announcement of more than $1 billion for infrastructure projects, the Provincial Government's business development initiatives are focused on diversifying and stimulating economic activity in communities and regions across Newfoundland and Labrador.

"As the global economy strengthens, Newfoundland and Labrador is well-positioned to capitalize on the foundation that has been laid in recent years," said the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development. "The more the Provincial Government cultivates entrepreneurship and business expansion the more we are creating a positive business environment. With continued investment in business development initiatives, the Provincial Government is working to realize the vision of an increasingly diverse and innovative business community and to open doors to exciting careers and new opportunities for the province's youth."

Investing in business development programs ensures that progress continues in the province's traditional and knowledge-based industries. By contributing to their growth and providing greater access to financial resources, the Provincial Government is targeting a business environment conducive for success — success that ultimately leads to stronger, more diversified communities and regions.

"Our government's initiatives are creating the right environment in Newfoundland and Labrador to attract investment from abroad and develop business, which is expanding our economic base, generating valuable employment and business opportunities, and contributing to economic diversification, growth and prosperity that benefits future generations," said the Honourable Ross Wiseman, Minister of Business. "We will seize new opportunities and continue to position Newfoundland and Labrador as a choice location in which to invest, work and live."

Business Development Programs
Through the Departments of Business and Innovation, Trade and Rural Development, Budget 2010 additionally includes more than $65 million in programs that target expansion of private sector enterprises, stronger local and regional economies, and new employment opportunities. Investments by program are as follows:

• Approximately $61 million in tax credits and incentives, including the Small Business Tax Credit, Manufacturing and Processing Profits Tax Credit, Scientific Research and Experimental Development Tax Credit, Film and Video Tax Credit, Economic Diversification and Growth Enterprise Program (EDGE), Labour-sponsored Venture Capital Tax Credit, Direct Equity Tax Credit, and the Resort Property Investment Tax Credit;　
• $29 million under the Business Attraction Fund to enhance the province's ability to compete for and attract new national and international business investment;
• $13.8 million is available for investment through the Small and Medium-sized Enterprise (SME) Fund. The SME Fund enables local businesses to strengthen their operations and target new business opportunities in markets around the world;
• $11 million is allocated to the Regional/Sectoral Diversification Fund, supporting sector development and contributing to the development of stronger, more diversified communities;
• $4.9 million is available for investment under Oceans of Opportunity, a five-year strategy designed to accelerate sector development, along with enhancing the province's environment for business and technology development within the ocean technology community;
• $2 million has been allocated for a one-year extension of the Commercialization and Innovation Enhancement Programs. Both programs were established under the provincial innovation strategy Innovation Newfoundland and Labrador: A Blueprint for Prosperity. While evaluation of the two programs is being conducted, the Provincial Government will further support emerging knowledge-based industries in the province;
• $1 million is allocated as part of a two-year $3 million commitment for the renewal of the Oil and Gas Manufacturing and Services Export Development Fund, which assists companies in the province's oil and gas supply sector to diversify their markets and take advantage of new export opportunities;
• $2 million is available this year under the Aerospace and Defence Development Fund, designed to support the growth of this industry in Newfoundland and Labrador; and,
• $1 million is allocated to the Business and Market Development Program, which provides matching contributions to small businesses, enabling them to acquire new skills, meet industry standards, and expand their marketing reach to other jurisdictions.

"The Provincial Government has created a suite of business development programs focused on supporting the growth of private sector enterprises and academic institutions," said Minister Skinner. "There are many exciting initiatives underway in Newfoundland and Labrador and through the continued implementation of valuable programming focused on their success we are increasing their ability to launch projects, strengthen their workforce, improve operational efficiencies, commercialize products, and ultimately better compete in markets across the globe."

Strategies to Support Economic Development
In addition to the many existing investments and programs targeting business, the Provincial Government is taking new approaches that focus on creating the conditions to support economic growth across Newfoundland and Labrador.

Investment Attraction Strategy
The Provincial Government is building on its efforts to bring new business and investment opportunities to Newfoundland and Labrador. This year will see the completion of a comprehensive investment attraction strategy. This multi-year plan will be designed to provide coordinated, strategic oversight of activities and initiatives throughout the Provincial Government that support the attraction of new investment to the province across a number of sectors. It will also identify actions aimed at building a more competitive business environment that encourages inward investment, achieving a highly-educated and skilled workforce in the province, increasing promotion of Newfoundland and Labrador as an investment destination, strengthening cooperation with the business community and other partners, and linking investment attraction with efforts to grow local business.

Air Access Strategy
The Provincial Government will also release a new five-year strategy that will guide its approach, in concert with key community and industry partners, to improving air services in the province. The air access strategy will contain several goals and initiatives focused on attracting new economically-viable routes to Newfoundland and Labrador, and will dedicate the resources to support these.

"In today's increasingly global, interconnected society, adequate air access is critical, not only for the ease of movement of the traveling public, but also for the well-being of tourism, trade and investment, our overall economic competitiveness and quality of life," said Minister Wiseman. "By developing this strategy, our government is demonstrating its commitment to taking action that will improve the status of air access in Newfoundland and Labrador."

Targeting Growth of Newfoundland and Labrador's Aquaculture Industry
As announced as part of the Provincial Government's investments to manage the province's natural resources, $6.6 million is provided for the Aquaculture Capital Equity
Program.

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