In challenging fiscal times, restoring fiscal health is a necessary and urgent means of protecting core social services. We recognize the fundamental link between economic and social policy. On the one hand, social programs produce jobs, generate economic activity and attract investors. On the other hand, sound economic policies get businesses growing, get people working and generate revenues we need to place our social programs on a more secure footing. It is critical that we get our social and economic strategies working hand in hand.

Mr. Speaker, that is why we are committed to building a sustainable, diversified economy in which people and communities throughout the province can prosper and social programs can thrive. To get there, the government’s approach to economic growth and recovery will be aggressive on many fronts and tied together by an innovation strategy.

We will strengthen the fundamentals, such as access to capital, access to well-qualified workers, and access to the technology that businesses need to stay competitive.

We will invest in sectoral strategies that promote growth in tourism, culture, our renewable resource sector and our extractive resource sector, where local firms can build on local employment and industrial benefits to become more competitive globally.

We will support these sectoral strategies with policies that improve our business environment and brand Newfoundland and Labrador as a place of thriving entrepreneurship and economic potential. We will ensure a competitive tax environment, a competitive regulatory system, and an efficient government sector that supports business opportunity.

And we will relentlessly pursue business investment from outside the province, targeting opportunities in a strategic fashion, and selling Newfoundland and Labrador as a good place to do business.

Leadership on business growth will come from the top. We are dedicating $1 million to establish a new Department of Business, led by the Premier, to play a leading role in attracting new business and investment to the province.

We will establish a Newfoundland and Labrador Office of Federal-Provincial Relations in Ottawa to give the province a stronger presence there and focus attention on our concerns about equalization, transfers, resource benefits, and the numerous other issues that affect our people and economy.

The new approach is about seizing control of our own destiny. To that end, we will proceed with strategic investments in various sectors of the economy to stimulate growth and job creation.

In fisheries, we are moving quickly to implement the recommendations of the Dunne report to strengthen our fish-processing sector by allocating $1.25 million to these initiatives in this budget. The cost will be fully offset by the industry. We will also provide $1 million to preserve the province’s contribution to fisheries and aquaculture development.

In the agrifoods sector, we will provide our share of funding for year two of the Agricultural Policy Framework agreement. We will also provide $500,000 for land development in order to allow farmers to lease land not currently being used for agricultural purposes. And, in order to develop Labrador’s agrifoods potential, the government will soon finalize its Northern Agrifoods Development Strategy.

In the energy sector, we will allocate $80,000 to begin preparing a much-needed comprehensive energy plan for the province.

In the forestry sector, we will invest $7.3 million in a silviculture program to help promote sustainable development of our forest resources. We will also maintain funding for the resource roads program, which provides access to timber stands to provide fibre for our paper mills and logs for the sawmilling industry.

To protect our environment, we will undertake to clean up the old military site at St. Anthony.

To promote year-round tourism, we will add $1 million to the annual tourism marketing budget and increase that sum each year until our marketing effort matches that of the Maritime provinces.

To promote our cultural industries, we will provide $825,000 to complement Ottawa’s $1.5 million to grow this sector. We are also providing $150,000 this year for the French Heritage Celebrations and a $250,000 grant for the Heritage Foundation of Newfoundland and Labrador to continue its valuable work. And we will provide $200,000 this year for the Music Industry Association of Newfoundland and Labrador.

In recognition of the key role innovation must play in building a stronger economy, we are allocating $200,000 for the development of a comprehensive innovation strategy. We will also invest in broadband internet infrastructure in rural areas to better serve our communities and make them more attractive to investors.

In view of the importance of transportation infrastructure, we will provide an additional $7 million to bring the Provincial Roads Program to $30 million. We will provide $24 million to complete Phase II and commence Phase III of the Trans-Labrador Highway. We will provide $15.1 million for the Strategic Highway Investment Program, targeting the Trans-Canada Highway. These investments will promote economic growth opportunities that can create new jobs and new revenues.

We will also invest $1.5 million in capital improvements to Island ferry terminals and $750,000 for maintenance and upgrades of ferry terminals in Labrador. Regarding the vessels themselves, we will provide $2.4 million for the ferry vessel refit program.

To improve the safety of our highways, we are providing $430,000 for year one of a three-year Road Weather Information System to assist winter maintenance crews by more precisely predicting when and where to apply sand and salt.

Mr. Speaker, many of these initiatives will target rural areas, where the need for new opportunities is greatest.

Let me focus in particular on an important initiative that we are undertaking this year to draw our social and economic agendas together. We are allocating $1.7 million in this budget for the establishment of a Rural Secretariat, a focal point for bringing government and community leaders together to enhance rural social and economic development. The Secretariat’s overriding goal is to strengthen our rural communities and develop strong regions. The $1.7 million will be focused on promoting longer-term, sustainable development activities.

Our government’s efforts to stimulate the economy are sound, though relatively modest at this stage. However, we will build on these initiatives as we create the fiscal room to better support the priorities of Newfoundlanders and Labradorians.

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