INVESTING FOR JOBS AND GROWTH
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.
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