Government is committed to building on the economic momentum generated over the last five years. We will continue to give particular attention to rural areas.

Amalgamating into a New Department

Our first step has been to merge two economic development departments into one with a stronger mandate. This brings together core economic and business development functions to allow more focused and co-ordinated delivery of programs at the regional level. The new department will have a budget $7 million larger than the combined budgets of its predecessors. New financial resources to pursue the development mandate will come from the $44.8 million extension to the Canada-Newfoundland Comprehensive Economic Development Agreement, as well as continued activity under the "FRAM-ED" Post-TAGS Agreement.

Renewal Strategy for Jobs and Growth

A second step was the release on Tuesday of the final report of the Renewal Strategy for Jobs and Growth, prepared based on an extensive consultation process conducted throughout the province. Mr. Speaker, I want to recognize today the tremendous leadership shown, as well as the time and effort devoted, by the Minister responsible, the Honourable Beaton Tulk, in bringing this important initiative to fruition.

The report outlines key initiatives we will be moving forward on to re-energize our jobs and growth agenda. Government�s role is to create the right environment to allow the private sector to drive employment and economic growth. The report encapsulates what we heard from the public during the consultations. We will continue to engage stakeholders to work with us in implementing the initiatives.

The report contains specific commitments designed to stimulate growth in traditional, as well as non-traditional sectors of our economy. This budget commits funding to support many Jobs and Growth initiatives, like Team Trade Newfoundland and Labrador which is designed to stimulate trade and export development. Jobs and Growth funding will support important sectors like the fishery, agrifoods and tourism, as well as emerging sectors like information technology and cultural industries. Almost two thirds of the priorities identified in the report relate to strengthening rural regions of the province.

Sectoral Initiatives

The fishery is an excellent example of government and the private sector working together to create economic opportunity and growth in rural areas. Continued funding is provided to further enhance the Quality Assurance and Inspection Program implemented in 2000. Through this program, we are consistently improving our image as a supplier of quality products in the global marketplace. A priority issue for this government is to protect the adjacency principle to ensure the province receives the benefits of our fisheries resource.

Another example of government and the private sector partnering to stimulate jobs and growth in rural areas is the success the tourism sector has been enjoying, particularly in recent years starting with the Cabot 500 celebrations. To build on this momentum, we are allocating $3.2 million to the Marconi celebrations, "Receiving the World: Celebrating Communications". Not only will the events highlight our place in communications history, they also will focus on our modern achievements in marine communications and information technology. In September, we are hosting the Wireless Vision Congress which will bring together IT industry participants from around the world.

Our energy and mining sectors have become mainstays of the economy, as well as hold great promise for the future. We are allocating $300,000 for further work on a natural gas strategy for the province. The strategy will be key to identifying and advancing the opportunities our natural gas resources represent. For the mining industry, $390,000 is provided to expand the Buchans core storage facility, one of six across the province preserving mineral core samples for public use. Funding is also provided for fuel price regulation.

Tax Reduction Initiatives

Mr. Speaker, in support of the jobs and growth strategy, and to act on our commitment to foster a positive climate for business investment, I am pleased to announce today that effective April 1 government will increase the threshold for the payroll tax from $400,000 to $500,000. Over the last four budgets, we have increased the threshold from $100,000, removing over 2,000 businesses from the tax roll and reducing the tax for thousands of others. Virtually the entire small business sector will no longer pay the tax.

The coming fiscal year also will see further cuts in provincial personal income tax as part of the tax reduction plan announced in late 1999.

A Greater Share of the Benefits from Our Resources

To take advantage of our economic opportunities, the province must receive a greater, and fairer, share of the benefits of key natural resource developments. In our view, the existing Equalization program almost guarantees that all but a modest share of the financial benefits of these developments will accrue to the federal government. A province, like ours, must be able to use natural resource development to better ourselves to bring about the economic and social changes necessary to build a sustainable future as full partners in the Canadian Confederation.

We are asking the federal government to ensure that a much greater share of the new wealth that resource development is creating in this province actually stays here. We will use these financial resources to develop a sustainable economy so, in the longer term, we can reduce and eventually eliminate our need for federal Equalization transfers.

Obtaining a fairer share of the financial benefits of natural resource developments for our province is a high priority for this government. Mr. Speaker, we call on the federal government to make it an equally high priority.