Provincial Government Remains Committed to Business Investment Strategies

Working with businesses, as well as community and industry partners, the Provincial Government has long been focused on contributing to targeted business development opportunities throughout Newfoundland and Labrador. This is reinforced repeatedly with significant investments in business startup, growth, and expansion, and key economic infrastructure supporting business spin-offs.

“In the province today, we have a business environment in which companies want to establish and expand their operations,” said the Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development. “Our ability to support businesses throughout Newfoundland and Labrador reflect our government’s commitment to attract new investment, help diversify the provincial economy, and create new employment opportunities for Newfoundlanders and Labradorians.”

Success stories are numerous, such as Terra Nova Shoes and Quorum, as well as Desire2Learn and Silk Stevens which are setting up in the province.

In March 2012, the Provincial Government also finalized the details of its $17 million repayable contribution to Canada Fluorspar (TSX-V:CFI) marking a key step in the $100 million reactivation of the St. Lawrence fluorspar mine. During the two-year construction phase, 370 full-time jobs are expected to be created while 175 full-time positions will be maintained at the facility once production begins.

“These are exciting developments that will benefit Newfoundlanders and Labradorians and provide dividends to the provincial treasury in terms of higher revenue from taxes and greater productivity,” said Minister Hutchings. “As we turn the calendar to 2013, I look forward to sustaining the series of positive investments that will further contribute to a brighter economic future and a stronger, more diversified provincial economy.”

Foreign investment in Newfoundland and Labrador continues to grow at an extremely high rate. In 2011, total foreign expenditures in all sectors totaled $3.6 billion, an increase from $2 billion in 2010, and $1.4 billion in 2009.

Several factors are helping attract new investments and companies to Newfoundland and Labrador’s business community, including major industrial projects, the continued development of new industry sectors, and business optimism – the highest in Canada.

“Our approach to business attraction extends far beyond the Business Attraction Fund,” said Minister Hutchings. “The Provincial Government has initiated a broad framework of programs and services that support companies from their early stages of development through commercialization and market development. The reality is that some of these investments are higher risk given their limited access to other, more traditional forms of capital. We balance this risk with the need to stimulate and diversify our economic base.”

The Provincial Government makes a number of considerations in investment opportunities, including economic benefits, regional wealth generation, the strength of the business case, and the ability to recoup the public investment. Regional economic development includes impact on the communities in which the companies exist, such as economic spin-offs and the ability to retain educated and experienced workers within the province.

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Media contact:
Diana Quinton
Director of Communications
Department of Innovation, Business and Rural Development
709-729-4570, 631-8155
dianaquinton@gov.nl.ca 

2012 12 28                            11:15 a.m.