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Innovation, Business and Rural Development
March 26, 2013

Backgrounder - Budget 2013 Investments for Economic Growth
and Strong Communities

Budget 2013: A Sound Plan, A Secure Future furthers the economic agenda of the Dunderdale Government by allocating over $200 million in investments.

Business and Regional Development
Budget 2013 is launching a renewed suite of business and regional development programs by consolidating over 20 programs to two umbrella funds to ensure resources are flexible and meet the needs of clients. Over $36 million will be available to support growth and innovation in the business community through the Business Investment Fund. Over $11 million will be available to support community and regional economic development efforts through the Regional Development Fund.

In addition, $2.1 million is available for investment under the Workplace Skills Enhancement Program, which helps address labour market conditions and provides support tools for local businesses. It is funded through the Canada-Newfoundland and Labrador Labour Market Agreement and the Strategic Training and Transition Fund, expiring in March 2014.

Through Budget 2013, approximately $100 million will be invested in continuing tax credits and incentives for businesses. These include initiatives such as:

  • Small Business Tax Credit;
  • Manufacturing and Processing Profits Tax Credit;
  • Scientific Research and Experimental Development Tax Credit;
  • Economic Diversification and Growth Enterprise Program; and,
  • Direct Equity Tax Credit.

In addition, the current maximum Film and Video Tax Credit for an eligible project will increase to a maximum of $4 million, from the current $3 million, to encourage the continued development of the local film production industry. The refundable corporate income tax credit is provided to eligible local film projects at a rate of 40 per cent of eligible local labour costs, but may not exceed 25 per cent of production costs.

Investing in a Sustainable Seafood Industry
Budget 2013 contains numerous initiatives that support the viability of the fishing and aquaculture industries, and focus on improvements in operational efficiency and improved service delivery to clients:

  • $8.6 million under the Aquaculture Infrastructure Development Fund throughout the year, including $4 million for the construction of a new aquaculture wharf in Milltown and $2 million for the completion of the wharves in Pool's Cove and Harbour Breton (also referenced in backgrounder: Budget 2013 Investments to Balance Infrastructure Priorities);
  • $3.4 million for the Aquaculture Capital Equity Investment Program, which has already leveraged over $400 million in private investment;
  • $2.6 million for marketing initiatives stemming from the Fishing Industry MOU;
  • $2.2 million for the Fisheries Technology and New Opportunities Program;
  • $1.4 million for the Newfoundland and Labrador Lobster Conservation and Sustainability Plan;
  • $850,000 in workforce adjustment funding to support displaced fish plant workers and affected communities;
  • $300,000 in support of the Coastal and Oceans Management Strategy and Policy Framework, which was the first of its kind in Canada; and,
  • $100,000 for sealing industry advocacy and promotion.

Financial support for fisheries science and research includes $1.6 million to support the ongoing work of the Centre for Fisheries and Ecosystems Research in 2013; and, $450,000 for other fisheries research and cod recovery initiatives.

In addition, through Budget 2013, the Provincial Government will integrate the Aquaculture Strategic Development Program with other seafood development and marketing grants to form a new Seafood Development Program. This consolidated program will provide $600,000 in project funding to the fishing and aquaculture industries.

Resource Development
To facilitate resource development in Newfoundland and Labrador, strategic investments will be made in the province’s oil and gas and mining industries:

  • $1.9 million to the Mineral Incentive Program to help support and advance exploration projects and provide financial support to junior exploration companies and prospectors in the province;
  • $1 million to increase oil and gas exploration activity and create opportunity for future development through the collection, analysis and promotion of geoscience data; and,
  • More than $20,000 to continue a 50-50 cost-shared initiative with North Atlantic Refining Limited to consider how the Come By Chance refinery can reduce greenhouse gas emissions in an environmentally sustainable and economically prudent manner and to be prepared for the move to a low-carbon global economy. Last year, work was carried out with the offshore oil and iron ore mining industries to better understand opportunities and competitiveness considerations.

Budget 2013 continues the Provincial Government’s support toward the forestry and agriculture sectors. In forestry, government will provide $8.4 million for silviculture projects, $5.9 million to construct resource roads to access areas for timber harvesting, and $1.7 million for forest insect and disease control. Government remains committed to providing support to Corner Brook Pulp and Paper Ltd. to help address challenges in industry once sustainability plans are completed. In the agriculture and agrifoods sectors, Budget 2013 provides funding for Growing Forward 2, to support innovation, competitiveness and market development, adaptability and industry capacity.

Investments in Budget 2013 include:

  • $6.3 million over two years to continue to work with the private sector to advance the Rural Broadband Initiative and further improve the province’s telecommunications environment; and,
  • $1.3 million through the Research & Development Corporation (RDC) to complete the construction of the Suncor Energy Offshore Innovation Centre and C-CORE's Centre for Arctic Resource Development, for applied research related to offshore petroleum development, ocean technology, and arctic and ice management; and support the training of new researchers. The Provincial Government continues to make significant investments to improve the province’s research and development capacity by providing $22 million in Budget 2013 to support RDC.

Tourism and Culture
Sound investments in tourism and cultural industries are growing the provincial economy, creating employment, and celebrating Newfoundland and Labrador’s unique identity. Budget 2013 will invest:

  • Approximately $16 million to enhance tourism and continue progress towards achieving the target of Uncommon Potential: A Vision for Newfoundland and Labrador Tourism – to double the annual tourism revenue in the province;
  • More than $17 million in the cultural and heritage sectors bringing the total investment to $87 million since the launch of Creative Newfoundland and Labrador: The Blueprint for Development and Investment in Culture in 2006; and,
  • Approximately $3.8 million over three years to support the production of Republic of Doyle. For every $1 the province invests in the film industry, the total gross domestic product (GDP) return to the province is $2.86.

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Media contacts:

Diana Quinton
Director of Communications
Department of Innovation, Business and Rural Development
709-729-4570, 631-8155
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830; 693-1865
Jason Card
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 699-0470
Bradley Power
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 699-5707
Melony O’Neill
Director of Communications
Department of Environment and Conservation
709-729-2575, 689-0928

2013 03 26                             2:55 p.m.

Last Updated:
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