Action To Promote Economic Growth

Investing In Resource Development

Mr. Speaker, numerous rural Newfoundland and Labrador communities are perfectly positioned to harness natural resources in ways that will promote economic diversification and growth. Most of our natural resources – fish, forests, agricultural lands, pristine ecosystems, tourism sites, minerals, hydro sites and onshore oil – are located primarily in rural or remote areas. Every strategy to capitalize more effectively on these resources is, by its nature, a rural renewal strategy.

Rural renewal is the product of a special kind of tenacity that simply refuses to give up when challenges are tough. More than a decade after the closure of the ground fishery, our government refused to give up on the hope of a bright future for our fishing industry and decided instead to meet the challenge head on. Our significant investments in aquaculture over the past two years have paid off on our province’s south coast with the announcement of a major aquaculture initiative with significant employment and spin-off benefits for this rural region. This year, we are continuing to advance our aquaculture sector by investing $12.5 million as part of our three-year Aquaculture Capital Investment Program. This initiative is complemented by another $1.9 million to help provide wastewater treatment systems in support of fish health protocols, and a further $1.2 million toward the establishment of an aquaculture research facility at St. Alban’s, where an innovative approach to the fishing industry has breathed new life into this community. Also, in last year’s budget, we announced an investment of $2.0 million over four years in support of commercialization of cod farming. A review of the factors necessary for commercialization of cod aquaculture has been completed, and a request for proposals for a commercial-scale cod aquaculture demonstration farm has been issued. This year’s budget contains $500,000 to continue this initiative.

Last year, we projected the creation of 150 full-time equivalent jobs for the aquaculture industry in the next two years, but less than one year later, we have witnessed the creation of 200 direct full-time equivalent jobs in this province and approximately 100 indirect jobs. We have only just begun to harness the potential of aquaculture to create employment and business opportunities in rural coves and inlets throughout rural Newfoundland and Labrador, and our strong financial investment in aquaculture this year will be instrumental in making Newfoundland and Labrador a leader in rural renewal through aquaculture growth.

Our fishing industry continues to offer tremendous promise, but progress depends on our willingness to work together to address challenges that remain. Everyone seems to agree: changes are needed; but a major impediment to change has been the division of responsibilities for fisheries between the provincial and federal governments. This year, in consultation with the industry, our two levels of government developed a Fisheries Renewal Strategy to reinvigorate the sector. We are bringing our total renewal undertaking to an estimated $140 million to address the challenges in the industry.

Among our province’s most successful and promising rural sectors is our agricultural industry. With targeted investments over the past three years, we have increased the rate of growth in agrifoods production value from 1% to 5%. This year, we will promote continuing growth and diversification in this sector by investing $2.8 million dollars from last year, with an additional $4 million new dollars for a total investment of $6.8 million in the Agriculture and Agrifoods Development Fund, devoting $2 million to continue the provincial Agrifoods Assistance Program, and continuing funding for the Fruit and Vegetable Storage Program and the initiative to provide off-farm access roads and electrical services.

A key consideration in renewable resource industries is sustainability. The ground fishery taught us hard lessons about the relationship between sustainability and longterm economic security – lessons we can apply to other sectors. Last year, we announced a $1 million increase in each of the next three years for silviculture initiatives to replenish our forest resources, and a $1 million increase in forest insect control and fire suppression funding. We also provided $800,000 in new funding last year and are providing an additional $865,000 this year to expand the province’s forest inventory. Our new Sustainable Development Act will apply sustainable development principles to all sectors to ensure we take proper care of the resources and ecosystems that sustain us. We will invest in protecting sensitive ecosystems against pollution damage by funding an oil spill prevention initiative. We will invest $10.1 million over three years to address the immediate safety and environmental issues at the former Baie Verte and Rambler mine sites. To better protect our wildlife, we will expand funding to study our island caribou herds, commence a study of caribou predation and invest more than $900,000 to leverage funding to engage in other cooperative wildlife research. We will also add five new positions to bolster the successful Inland Fisheries Enforcement Program that we initiated in 2004 when the Government of Canada backed out of its constitutional responsibility for enforcement on inland waterways.

Our natural areas are sources of economic wealth if we capitalize on their capacity to generate eco-friendly tourism, which is in reality only a fancy term for describing an activity that has been traditional in Newfoundland and Labrador for generations. Through our provincial parks system, we have been able to preserve our natural ecosystems while at the same time enjoying the high-quality recreational experiences they have to offer. We are increasing our investment in the provincial parks system by $1 million to expand the parks renewal strategy from a three-year commitment to a four-year $4.0 million initiative. Additional funding will mean service improvements to make our parks even more attractive, encourage increased usage, and allow us to provide the range of services and amenities demanded by the modern traveler. These initiatives will be particularly important in bringing tourism-related economic and employment opportunities to our rural areas where most parks are situated.

Recognizing the great potential that tourism offers to rural communities, this year, we are investing an additional $1 million for tourism marketing initiatives. Starting in 2004, this government has nearly doubled the tourism marketing budget from $6 million to $11 million.

If there is one thing besides our beautiful scenery that attracts tourists to our shores, it is our distinctive culture. Having launched Newfoundland and Labrador’s first Strategic Cultural Plan last year, we are ready this year to build on those initiatives by bringing the budget of the Newfoundland and Labrador Arts Council up to $1.65 million, including a Cultural Outreach Officer in Labrador. We are also maintaining funding for the Newfoundland and Labrador Film Development Corporation’s Film Equity Program at $2 million. To protect and commemorate our rich heritage, we are increasing funding to operate community museums and preserve our built heritage. And we are beginning to invest to prepare for the anniversary of the founding of Cupids by John Guy in 1610, nearly 400 years ago.

All of these initiatives are examples of endeavours supported by our government to turn resource opportunities into growth opportunities in our communities. Newfoundland and Labrador will achieve actual and sustainable self-reliance only if we do a much better job of putting our resource wealth to work for the principal benefit of our own people and communities.

Our government is concluding work on Newfoundland and Labrador’s first comprehensive Energy Plan; block funding of $12 million is being committed this fiscal year to begin implementation of the initiatives contained in the plan; and additional funding will be allocated in future budgets to support the continued roll out of the plan.

As work proceeds in the mining sector in western and northern Labrador and at sites on the island, we are working to promote further growth in this industry and ensure our province reaps the benefits of these non-renewable resource initiatives. Last year, we invested a record $2.5 million in the Mineral Incentive Program, 55% more than in the year before. Every dollar spent under the junior exploration assistance component of the program leverages $3 in private sector investment for grassroots exploration. We estimate that mineral exploration companies spent $98 million on exploration in the province last year, 100% more than in the previous year, with expenditures forecast to reach $116 million in 2007. We are sustaining our record investment in the Mineral Incentive Program, which is playing a key role in sustaining that momentum. We will also invest $1 million to foster exploration of our mineral and onshore petroleum resources by improving the collection of geoscience data.