4. PRIORITIES: PARTNERING FOR DEVELOPMENT

In these challenging times, it is essential that we create opportunities for economic growth and new jobs.

Government remains fully committed to working with the Regional Economic Development Boards in the 20 economic zones. This will reinforce local decision-making for economic development. We are negotiating with the Federal Government to establish single window business support offices within each zone.

Government will combine its efforts with its local and federal partners to ensure that less money is wasted on red tape and duplication, and more money is spent on support services to entrepreneurs and small businesses.

Under the Federal-Provincial Strategic Regional Diversification Agreement, we will support development activities in the zones and will utilize zone plans in allocating development support. We will support every viable opportunity to generate growth and create new jobs in our rural communities. We will do this because the need is great, and the prosperity of our rural areas is essential to the future of our Province.

We will foster growth in our Province through the $17 million Strategic Enterprise Development Fund. This will target growing sectors for which conventional financing is not available and will also support external investment prospecting activities for the Province.

We are negotiating a new five-year comprehensive development agreement with the Federal Government that will be worth over $50 million. Expenditures will focus in strategic areas in the export trade, advanced technologies, and rural development. This is in addition to the existing $100 million Economic Renewal Agreement, which concentrates on aquaculture, tourism, and information technology.

Another example of partnering for development is the new Newfoundland and Labrador Film Development Corporation. This will involve expenditures of $1 million over the next five years. Government will work with the Corporation, and our partners in the public and private sectors to create new opportunities for the film industry in our Province.

Ownership and Subsidies of Commercial Operations

We have been challenged to make choices in this Budget. In making these choices, we have carefully examined those commercial businesses that Government subsidizes. We will take steps to phase out these subsidies in an orderly manner. Accordingly, Government will dispose of its interest in Newfoundland Farm Products Corporation. The new Board of Directors has been instructed to proceed as soon as possible with the sale of the Corporation. The taxpayers' subsidy to the Corporation, as well as those to the Province's chicken producers, will be phased out.

Mr. Speaker, where and when appropriate Government remains willing to consider public-private partnering and privatization options for the Bull Arm site, the Marystown Shipyard and Marble Mountain.

Transportation

The Province's transportation system is vital to the economic and social development of the Province. To this end, the Government will be spending $77 million on highway construction in 1997-98, an increase of $12.2 million from 1996-97.

Transportation in Labrador offers unique challenges and opportunities for future development. We have proposed a Labrador Transportation Initiative to the Federal Government. Under this plan, the Province will take over Marine Atlantic's Coastal Labrador Service and the Trans Labrador Highway will be completed. The Government awaits a reply to its proposal.

The Department of Works, Services and Transportation will pursue alternative delivery systems for its services. The Department will identify opportunities to work with the private sector, municipalities, community agencies and employee groups to improve services and achieve savings.

Full Benefits From Our Resources

Our Province is entering a new period of growth and prosperity fuelled by our resources, notably petroleum and minerals. To gain our full and fair share of these benefits, we must have effective management structures and appropriate fiscal regimes. This is especially true for major projects, such as Hibernia, Terra Nova, White Rose and Voisey's Bay.

Last year, we put in place a generic royalty regime for petroleum projects. We will this year reform our mining tax system. Great care is being taken in developing these proposals since they will have major implications for the economy and people of the Province in the coming decades.

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