Business
Finance
Fisheries and Aquaculture
Natural Resources
April 19, 2011
Business and Innovation Investments Enhance
Road to Prosperity for Newfoundland and Labrador
Harnessing the power of innovation to propel the productivity and
competiveness of traditional and knowledge-based industries, Budget 2011
continues the Provincial Government’s vision for an innovative and
prosperous Newfoundland and Labrador.
Supported by investments totalling more than $175 million in business
development programs and services, Budget 2011 Standing Strong: For
Prosperity. For our Future. For Newfoundland and Labrador, provides the
tools that enable Newfoundlanders and Labradorians to be on the forefront of
innovation and strengthen their ability to succeed.
“This government has embraced innovation as a means of advancing business growth and competitiveness in communities and regions throughout Newfoundland and Labrador,” said the Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development. “Innovation is the building block of vibrant, highly diversified economies. Through Budget 2011, we are intensifying our approach to enable entrepreneurs in traditional and knowledge-based industries to increase their ability to be leaders in innovation.”
This year’s budget provides the framework for a brighter tomorrow through the continued economic diversification of communities and regions throughout the province, as well as helping to create new employment opportunities for Newfoundlanders and Labradorians.
“As reflected by the confidence of businesses throughout the province, this is an exciting period for Newfoundland and Labrador,” said Minister Sullivan. “Whether it is investing in regional economic infrastructure, helping companies address workforce requirements, facilitating greater export activity, or providing businesses with the resources they need to improve their operations, our programs take aim at sustaining the incredible progress that has been experienced in recent years.”
New Investments Target Key Areas to Build Innovation and Growth
Through Budget 2011, the Department of Innovation, Trade and Rural
Development will re-invigorate its programs under the provincial innovation
strategy – Innovation Newfoundland and Labrador: A Blueprint for
Prosperity.
Supported by a Budget 2011 investment of $11 million, an overview of the enhanced programs is as follows:
- Building on the strides that have been made to Newfoundland and Labrador’s telecommunications capacity, the Provincial Government will invest a further $8 million to improve broadband access in underserviced areas and take steps to further develop an internal telecommunications network; and,
- $3 million annually will be allocated to the two core programs established under the innovation strategy. The Commercialization and Innovation Enhancement Programs will be expanded to enhance support for innovative activities in traditional sectors, further expand opportunities for rural businesses, and target opportunities in such emerging sectors as life sciences and green technologies.
“Through our innovation strategy, the Provincial Government has firmly entrenched itself as a partner in innovation,” said Minister Sullivan. “Under a renewed strategy, our role and programs will be bolstered. It will invite new opportunities for rural businesses and those operating in traditional industries as they seek to adopt innovative applications and processes.”
The Department of Business will continue to help advance the aerospace and defence sector as Budget 2011 provides an extension to the Aerospace and Defence Development Fund committing $9 million over the next three years, with $3 million allocated annually.
“The aerospace and defence industry in the province continues to expand, employing more than 1,500 Newfoundlanders and Labradorians and generating an estimated $150 million in revenue annually,” said the Honourable Derrick Dalley, Minister of Business. “Our government believes in this vibrant industry and its potential for growth. The Aerospace and Defence Development Fund, facilitates the advancement of this industry by supporting opportunities that build capacity, attract investment and bring new expertise and business activity to the province.”
Creating Opportunities in the Forestry Sector
Budget 2011 allocates $5.4 million to support innovative activities in
Newfoundland and Labrador’s forestry.
Forest Science and Innovation Fund
Innovative forest products, new technologies, and modern forest
management practices are the basis of economic growth in the forest industry
sector.
Budget 2011 will provide $1.2 million to strengthen the province’s research capacity and foster innovation in forest research. The funding supports the Provincial Government’s Forest Research Strategy and will be allocated through the Centre for Forest Science and Innovation.
Forest Industry Diversification Fund
Reflecting the Provincial Government’s commitment to diversify the
forest products industry, Budget 2011 will provide $4.2 million for two of
the province's larger integrated sawmills.
Through the Forest Industry Diversification Program, a $2.2 million investment will allow Cottles Island Lumber Company Ltd. to expand its drying capacity, and make improvements to its softwood value-added manufacturing line. A $2 million investment in Burton’s Cove Logging and Lumber Ltd. will support improvements to the scaling and log sorting systems, and kiln drying capacity.
Promoting Innovation and Research in the Fishing and Aquaculture
Industries
Budget 2011 allocates approximately $14 million over three years,
including an additional $8.3 million in 2011-12 to increase the volume of
innovation and research in Newfoundland and Labrador’s fishing and
aquaculture industries.
“Our government is committed to supporting innovation and research in the province’s fishing and aquaculture industries,” said the Honourable Clyde Jackman, Minister of Fisheries and Aquaculture. “These industries are a critical component of the economic life of coastal and rural areas of our province and our government is pleased to commit in excess of $14 million over the next three years to this important industry.”
Budget 2011 provides $6.6 million over three years – $2.2 million per year – under the Fisheries Technology and New Opportunities Program for fishing industry research and development. The program, which is being extended after three successful years, funds industry-led development projects in the fishing industry. Including leveraged funds, it has provided $25 million for fishing industry research and development.
An additional $4.7 million will be allocated for the Aquaculture Capital Equity Investment Program in Budget 2011. This program assists in increasing production of commercial aquaculture projects, resulting in increased employment and spin-off opportunities in the processing, manufacturing and supply and service sectors of the aquaculture industry.
Tariff and trade issues are a critical component of growing the province’s seafood producing sector in the global marketplace. Budget 2011 allocates $100,000 to work with the Government of Canada to address seafood trade concerns and impacts. Trade is an area of federal jurisdiction. This funding will be used particularly in relation to tariffs on Canadian seafood products entering the European Union.
A total of $200,000 has been allocated for sealing industry advocacy and
development in Budget 2011. This represents an increase of $100,000 over
previous years. This funding will help address the new opportunities in the
sealing industry in the global marketplace as the Provincial Government
supports the development of new seal products and new international markets
in countries such as China and Russia.
The funding will also help support action being taken by the sealing industry, the Canadian Inuit, and other provincial, federal and territorial governments to overturn the European Union seal products ban.
The Provincial Government will continue to provide funding for the Workforce Adjustment Program which assists workers who are displaced from fish processing facilities that are closing on a permanent basis. A total of $3.1 million is being allocated over three years – approximately $1 million per year – which will provide for the short-term employment and income of displaced workers as well as employment and retraining options.
Business and Economic Development Programs
The Provincial Government has a comprehensive set of business
development programs and services available for small and medium-sized
businesses.
Budget 2011 investments of more than $128 million include:
- Approximately $71 million is provided to businesses in tax credits and incentives. These include such initiatives as 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, Direct Equity Tax Credit, and the Resort Property Investment Tax Credit;
- $29 million is allocated to the Department of Business for the Business Attraction Fund, which enhances the province's ability to compete for and attract new national and international business investment;
- $12.8 million is available for investment through the Department of Innovation, Trade and Rural Development’s Small and Medium-sized Enterprise Fund. The fund enables local businesses to strengthen their operations and target new business opportunities in markets around the world;
- $6.1 million is available for investment under Oceans of Opportunity, a five-year strategy designed to accelerate sector development. Administered by the Department of Innovation, Trade and Rural Development, the strategy also helps enhance the province’s environment for business and technology development within the ocean technology community;
- $5 million is allocated to the Department of Innovation, Trade and Rural Development’s Regional/Sectoral Diversification Fund, which supports sector development and contributes to the development of stronger, more diversified regions;
- $2 million is available for the Oil and Gas Manufacturing and Services Export Development Fund. Administered by the Department of Business, the fund assists oil and gas supply companies in the province to expand their markets through the export of products and services;
- $1 million is allocated to the Department of Innovation, Trade and Rural Development for its Business and Market Development Program. The program provides matching contributions to small businesses, enabling them to acquire new skills, meet industry standards, and expand their marketing reach to other jurisdictions; and,
- $1.7 million is allocated to the Department of Business to administer the Air Access Strategy, a five-year approach aimed at enhancing air access to, from and within Newfoundland and Labrador.
Research and Development
Established in 2009, the Research and Development Corporation is a key
driver in increasing research and development activity in Newfoundland and
Labrador. In Budget 2011, it has more than $19 million available to make
research and development related investments in people, strategic
opportunities and infrastructure.
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Media contacts:
| Scott Barfoot Director of Communications Department of Innovation, Trade and Rural Development 709-729-4570, 690-6290 scottbarfoot@gov.nl.ca |
Carol Ann Carter Director of Communications Department of Business 709-729-7628, 631-9505 carolanncarter@gov.nl.ca |
| Luke Joyce Director of Communications Department of Finance 709-729-6830, 725-4165 lukejoyce@gov.nl.ca |
Heather Maclean Director of Communications Department of Natural Resources 709-729-5282, 697-4137 heathermaclean@gov.nl.ca |
| Lori Lee Oates Director of Communications Department of Fisheries and Aquaculture 709-729-3733, 690-8403 oatesll@gov.nl.ca |
2011 04 19 2:25 p.m.