Securing a Sustainable Future

Growing Industries

Mr. Speaker, investments like these in education, innovation and infrastructure are critical in preparing our people and communities to reap the benefits of this growth, but there is even more we can do to promote the expansion of economic opportunities.

Last year, we released the province’s first comprehensive Energy Plan to guide the development of an industry that is critical to the long-term prosperity of Newfoundland and Labrador. We are investing $35 million over three years to put the plan into action.

Under the Energy Plan, we moved forward to reconfigure Newfoundland and Labrador Hydro as a subsidiary of a publicly owned energy corporation that will bring maximum opportunities and maximum benefits of energy developments to the people of Newfoundland and Labrador. If our energy corporation is to function as a major international competitor capable of leading world-class energy developments, it must have a strong financial profile. It is through our energy corporation that we are preparing to reap the benefits of equity stakes in Hebron and White Rose and to lead the development of the Lower Churchill Project. To support these projects, the province will provide a direct investment in the energy corporation of $215 million this year. The province will also provide a $100 million equity injection that will improve Newfoundland and Labrador Hydro’s financial profile by reducing its level of debt. Our equity injection will also bring the company more in line with similar utilities in Canada in terms of its ratio of debt to equity. These investments are part of a long-term strategy to make our Crown utility less dependent on the provincial treasury for its financial requirements as it works to bring major projects and significant economic benefits to Newfoundland and Labrador.

With major resource projects on the horizon such as Hebron, the Voisey’s Bay processing plant, the proposed second refinery, the White Rose expansion and the Lower Churchill Project, we want to take maximum advantage of the tremendous fabrication capacity and expertise that already exists in Newfoundland and Labrador. Amongst our greatest assets is the Bull Arm site. In addition to our annual $1.1 million operating grant for the Bull Arm Site Corporation, we are investing another $2.75 million to prepare for major resource projects through site maintenance and upgrades and through the establishment of a new management structure. The new staff will include several senior engineering and technical professionals who will define optimal uses for the site and manage the facilities during major project execution.

Consistent with our Energy Plan vision, we are also actively pursuing opportunities to develop innovative energy solutions and reduce our dependence on costly diesel. We will invest $4.5 million in the Ramea Wind-Hydrogen Power Generation Demonstration Project in order to purchase two, or possibly three, wind turbines, each with a capacity of about 130 kilowatts, along with equipment for hydrogen production and storage. Adding hydrogen technology and new wind generation capacity to the existing wind-diesel project will place Ramea at the leading edge of the hydrogen economy and demonstrate rural-based innovation at its finest.

Just as we are becoming more competitive in the energy sector, we will further improve our competitiveness in the mining sector by enhancing the marketability of our mineral resource base and improving service delivery. By investing $1 million this year and a further $2 million over the next two years for new geological mapping, we will provide mineral exploration companies with better information for making investment decisions and will go a long way in promoting new exploration and development.

We are also investing $500,000 over the next two years to improve the mineral exploration permitting process by developing an online Mineral Exploration Approval Management System that will allow easier information sharing between government departments, staff and exploration companies. This online approval system will complement the online staking system that has already been a great success.

To further promote growth in rural regions in particular, we are providing $9.6 million inclusive of carryovers under the Regional Sectoral Diversification Fund to support a broad range of economic development initiatives and enhancements to existing infrastructure to promote regional sharing, community sustainability and value-added sector diversification.

One of our most important industries, the forestry sector, has been struggling along with others across North America to weather major storms. We remain committed to ensuring this industry continues to provide opportunities and employment for our people. To that end, we are allocating $10 million in provincial funding to add to the $4 million in federal funding under the Community Development Trust for forest industry initiatives that will provide a foundation of stability and new growth opportunities for affected communities.

Our agrifoods industry is already thriving as we expand our markets and develop strengths in critical niche areas. Consistent with our policy Blueprint, we are establishing a $10 million Farm Loan Guarantee Program to provide farmers with enhanced access to capital so they can develop new farm land, welcome new entrants, develop the perennial crop sectors and remain competitive.

Also in line with our Blueprint, we are allocating $1 million in new funding for agricultural research and development initiatives to promote technological advances in livestock and crop production.

Among our most promising sectors is the cranberry industry, which is benefiting from unprecedented demand. To ensure this province capitalizes on its natural strengths in this sector, we are making an investment this year of $2.95 million.

The province’s fur industry also offers great promise, but some producers have been facing unique challenges. We are investing $5.4 million to establish an Aleutian Disease Management Program that will enable mink farmers to replace diseased animals, dispose of carcasses, disinfect facilities and enhance biosecurity measures on farms.

No natural resource sector is more important to Newfoundlanders and Labradorians than the fishing industry. It has weathered the worst of storms and rebounded to exceed a billion dollars in production value. We will continue this year with the implementation of the Fishing Industry Renewal Strategy with $5 million in allocations this year, including $2 million for the Fisheries Technology and New Opportunities Program. This is part of a total allocation of $15 million to implement the multi-year strategy. The province’s total renewal undertaking is valued at an estimated $140 million. Already, the strategy has been instrumental in addressing the needs of the fishing industry and making it more sustainable for the future.

We are also investing to grow the province’s aquaculture industry. We will invest a further $4 million in the Aquaculture Capital Equity Investment Program for a total commitment of $13.5 million. We are also allocating $500,000 to develop a strategy to address the infrastructure requirements of this fast-growing sector. To ensure appropriate stewardship of the province’s aquaculture industry, we are creating a Division of Aquatic Animal Health within the Department of Fisheries and Aquaculture. The Division will be run from the new $4.7 million veterinary diagnostic facility that we began planning in St. Alban’s in 2007 and will complete in 2009. Together, our initiatives in the aquaculture sector will ensure we protect the marine environment at home while providing top quality aquaculture products to the world.

This year, we are moving to enhance the delivery of Crown land services to the public by investing $720,000 to add inspection resources that will reduce wait times for inquiries about and acquisitions of Crown land, and also to add surveying resources that will reduce the processing time required for analyzing legal survey documents. In addition, we are providing $75,000 to commence the development of a comprehensive land use management strategy for the province.