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Capturing Strategic Growth Opportunities

Diverse New Opportunities for Growth

Our people have much creative energy. Throughout the consultations, we heard countless new ideas and innovative approaches to strengthening and diversifying our economy. We heard about specific new business opportunities, we heard about new markets for our products and services, and we heard about the many competitive advantages that we possess. We also heard about the significant progress we are making in our traditional industries as well as in our maturing and emerging new industries.

" In 1967 Beothic Fish Processors processed just one species of fish - salted cod -and employed a maximum of 50 workers. In 1998, the company processed 21 species of fish.... (and created) the equivalent of 250 full-time jobs."

- Mr. Harry Harding,
Beothic Fish Processors Ltd
Wesleyville

The fishing industry has undergone significant structural change in the last decade. While 1992 marked the collapse of the ground fish industry, it also signaled the start of a new fishery for our province - a fishery that is more diversified, more sustainable economically, and based on sound conservation practices.

Today's fishery is focused on new resource opportunities, secondary seafood production, and quality assurance to achieve maximum economic return in the marketplace. Led by growth in the shellfish industry, the fishery hit the $1 billion mark in 1999 and 2000 - the highest level ever achieved and double that obtained immediately prior to the groundfish moratorium. The modern fishery now harvests over 40 species and generates more value-added and higher quality production than ever before. More than $170 million in new private capital investment has gone into the fishery in recent years to diversify and strengthen it. And although the new fishery is not as labour intensive as the fishery of the past, over 20,000 people are directly employed in the industry at peak periods.

The fishery has been the backbone of our economy for centuries. It is a central part of our future. With stock rebuilding and effective resource management, combined with an increasing global demand for high quality premium seafood products, the fishery offers a solid opportunity for sustainable economic development over the long term.

Priorities for Action

• Government will work with industry to build on the significant progress made in quality assurance throughout the industry in recent years - from harvesting to processing to marketing. The Fisheries Association of Newfoundland and Labrador estimates that more than $100 million in additional economic benefit could be gained from the present fishery alone if we focus more aggressively on this challenge. The annual budget for the quality enhancement program in the Department of Fisheries and Aquaculture was doubled in 2000, from $250,000 to $500,000, to pursue this objective.

• A sustainable resource harvesting strategy is critical to the long term development and management of our fishery. The province will press the federal government to maintain such a policy and will also urge the federal government to make sufficient scientific and other resources available to support appropriate long-term resource management decisions.
  
  
  

• Government will continue to provide financial support for the Chair in Fisheries Conservation at Memorial University. The work undertaken through the Chair will make a major contribution to the scientific knowledge and understanding of the province's marine ecosystem, particularly as it relates to the dynamics of groundfish stocks off our shores.

• New jobs and growth have been brought to the industry through increased emphasis on valued-added processing, development of "underutilized" species (such as sea urchin), more focused marketing efforts, and new fisheries such as the inshore Northern shrimp fishery. Government will partner with industry, through the Fisheries Diversification Program, to identify, research and develop additional commercial opportunities in each of these areas.
  
  
  

• The province will encourage the federal government to provide continued financial support to the Canadian Centre for Fisheries Innovation at Memorial University's Marine Institute in order to facilitate applied research and development in the harvesting and processing sectors of the fishing industry in support of diversification and growth objectives.
  
  
  

• The Seal Industry Development Council has developed a strategy which offers the potential to grow the sealing industry into a $100 million industry within five years. Government will partner with industry to achieve this potential on a commercially sustainable basis.

• The fishery resources off Newfoundland and Labrador must be made available for the maximum benefit of our rural communities in keeping with the long standing principle of adjacency. The action taken by the federal government last year to allocate Northern shrimp resources off our coasts to a P.E.I. based consortium fundamentally compromised the interests of Newfoundland and Labrador in this regard. Government will work constructively but forcefully with the federal government to preserve and protect the principle of adjacency in national fisheries policies.

• Over the longer term, there is a need for Newfoundland and Labrador to have a direct say in resource management and fisheries allocation decisions. The most effective way to achieve this would be through the creation of a jointly administered Canada-Newfoundland Fisheries Management and Development Board, similar in nature and mandate to the Canada-Newfoundland Offshore Petroleum Board. This will be pursued with renewed vigour by the Government of Newfoundland and Labrador given the recent action of the federal government to allocate Northern shrimp to parties outside Newfoundland and Labrador.

• There is a need to ensure that harvesting capabilities and processing capacity are maintained in balance with one another, in keeping with a regional approach to industry development as well as the need for a commercially viable and competitive industry. Government will review its present fish processing licensing policy to ensure these objectives are being fully achieved and will encourage the federal government to do the same with regard to its overall harvesting licencing policy. A jointly administered Canada-Newfoundland Fisheries Management and Development Board would also help to achieve federal and provincial harmony in these areas.

• The fishery has undergone a dramatic transformation in the past decade. We need to ensure harvesters have access to the necessary financing and vessels to participate in this changing fishery. We also need to ensure that community infrastructure, such as fisheries related wharves and industrial water supply systems, are modernized to help the commercial harvesting and processing sectors grow and diversify. Government will work with harvesters and the banks to ensure the Fisheries Loan Guarantee Program meets the evolving needs of fishers. Action at the federal level to address current vessel size restrictions on the inshore fleet, which compromise the safety and business efficiency of the fleet, will also be pursued by the province. As well, strategic new investments in community harbour infrastructure and industrial water supply systems to support private sector opportunities for industry growth will be made in partnership with the federal government.

" ...we have superior advantages for such markets as organic foods in a global market."

- Dr. Hilary Rodrigues, 
IAS Committee for Agrifoods

Our agrifoods industry has been growing steadily in both traditional and new products over the past decade. The value of primary agricultural production combined with food processing is close to $500 million today, employing 4,000 people throughout the province. The agrifoods industry is moving into niche markets with the development of new value-added food and beverage products. There are over 100 secondary food processors in our province today. The agrifoods industry is a major source of economic activity in many rural communities.

More than $2 billion is spent annually on food products in our province. This provides a strong base for our producers and manufacturers to supply the local market and springboard into expanding export markets. As well, consumer tastes and preferences are changing all over the world. Consumer demand is growing for high value speciality crops such as cranberries, organically grown food, and nutraceutical/ medicinal products, some of which can be grown better in Newfoundland and Labrador than elsewhere. Demand for convenient ready-to-use food products is also expanding, presenting further opportunity for growth in our secondary processing industry. The agrifoods industry offers significant opportunity to strengthen and diversify the rural economy.

Priorities for Action

• In order to realize the full potential of our agrifoods industry, we need to become more focused, more commercially competitive, and more diversified in primary and value added production and processing. We need to target areas where private sector strength is clearly evident and adopt a stronger market driven approach to development generally. Greater collaboration among producers, processors and other key stakeholders, including the sharing of expertise, pooling of resources and formation of joint business and market ventures, will be essential ingredients to success. Government's role will be to create an environment for success and to support commercial growth through industry led initiatives at the provincial and regional levels.

• Government will support the implementation of industry driven action plans for growth and diversification through a comprehensive new Growth and Diversification Investment Initiative for Agrifoods. This initiative will direct the collective resources and expertise within the federal and provincial governments towards strategic development opportunities and priorities identified in partnership with the private sector. Research and development, human resource development, marketing, and agrifood business and technology investments will receive particular attention. Private sector led pilot projects in specific industry sectors will be promoted as a model for pursuing new growth and diversification opportunities. The recently signed Canada-Newfoundland Agrifoods Safety Nets Agreement will form a major part of this new initiative.
  
  
  

• Government will ensure that its general business assistance programs, such as the new Seed Capital Equity Program, the Business and Market Development Program, and the Venture Capital Tax Credit Program, are fully accessible to the agrifoods industry.

• Government will work with the agrifoods industry and other relevant stakeholders, including federal agencies (the Farm Credit Corporation and ACOA), the banks and the venture capital industry, to explore means and options of facilitating a better flow of commercial capital to agrifood enterprises to achieve growth and diversification objectives.
  
  
  

• Government will create a more competitive business environment for the production of beer and wines from micro-breweries and cottage wineries by reducing existing liquor commission fees on these products. This will help stimulate growth and exports in this emerging new sector of the agrifoods industry.

• Government will engage appropriate stakeholders to develop a Northern Agrifoods Development Strategy for Labrador that addresses both the high cost of importing food products to this area of the province and the potential to create new jobs in Labrador. A pilot project in the Labrador Straits region to test the commercial viability of food production utilizing peatland will be implemented as part of this strategy.

" Our forestry (industry) is undergoing a renaissance... partly because of excellent market prices, but more importantly, it is a result of a new emphasis on maximizing the resource."

- Mr. Dave Tulk,
Kittiwake Economic
Development Corporation

The forest industry has been a key part of the provincial economy for many years. It currently employs 8,000 people in more than 60 communities throughout Newfoundland and Labrador.

Newsprint shipments in 2000 were valued at over $600 million, with high quality products being sold to more than 40 countries around the world. Confidence in the industry's future is evidenced by the private sector's willingness to make significant capital investments of more than $100 million in recent years to enhance capacity, quality and productivity.

Our sawmilling industry has experienced tremendous expansion and has considerable potential to grow even further as it takes advantage of value-added manufacturing opportunities for lumber and speciality wood products. Production from our sawmills has doubled over the past six years. They now employ over 3,000 people and contribute more than $40 million to our economy. Almost half of our sawmill products are exported today, demonstrating that we can compete with the best in the world. A new secondary processing wood products industry is also emerging, with 15 manufacturers utilizing locally produced lumber.

" The development of the sawmill industry (in Labrador) is the province's best opportunity to secure current levels of return as well as future benefits."

- Mr. Robert Dingwall,
Jamestown Lumber Co.

The multiple uses for the province's forest resource ensures that this sector will continue to play a significant role in the economy, especially in rural communities. However, this strong demand also presents the greatest challenge for the industry. The demand for timber on the Island threatens to outgrow the available supply of raw material. As a result, both newsprint and lumber producers are facing limitations on their ability to expand in primary production. Overcoming the challenge of providing for growth in these industries in the face of a limited resource base is the key priority for future development.

Priorities for Action

• Government, in partnership with industry, will accelerate efforts to achieve more effective use of the wood supply through improved utilization of pulp and sawmill waste; adoption of new technologies in the sawmill industry to increase lumber yields and reduce waste; and better use of standing timber by re-directing domestic firewood cutting to low yield stands. Government will also enhance the growth of trees through expanded silviculture programs and increased efforts to protect the resource base from fire and insects.

• The single greatest source of underutilized timber in the province is in Labrador. Government will actively pursue development of a forest products industry in Labrador in consultation with local communities and aboriginal groups. Development will proceed in a manner which provides maximum economic and employment benefits to Labrador residents. Priority will be given to private sector sawmill development opportunities along the southeast coast of Labrador. Government will make strategic investments in infrastructure to support these opportunities, including necessary improvements to the wharf in Cartwright to help get the finished products to market. Emphasis will also be given to industry development opportunities in the Goose Bay area through a recently signed forest management and development MOU with the Innu Nation.

• Government will partner with industry to investigate the feasibility of adopting new technologies in Newfoundland and Labrador to provide new sources of fibre, including heli-logging in difficult to reach areas, increased use of recycled paper by the pulp and paper industry, and development of a "fast growing species" strategy.
  
  
  

• A comprehensive sawmill industry development strategy will be formulated in consultation with industry, as a means of generating greater economic and employment benefits from this sector in a regionally balanced manner and emphasizing value-added opportunities.
  
  
  

• A hardwoods management and development strategy will be implemented to facilitate the expansion of value-added secondary wood products through greater use of "underutilized" hardwood species such as larch, aspen and birch. This industry shows strong potential for growth, especially in rural communities.

" ...metal prices have started to improve...encouragement for the future is also drawn from the rapidly growing number of prospectors active in the province."

Chamber of Mineral Resources

Newfoundland and Labrador's mining industry produces over a dozen mineral commodities that contribute significantly to our economy. The industry currently employs approximately 3,000 people and shipped $1 billion in products around the world last year. Growth of almost 15 per cent has been achieved within the industry in the past decade.

The province has abundant geological potential in both traditional mineral commodities and new resources, including industrial minerals such as dimension stone. World markets are healthy and growing. And Voisey's Bay in Labrador remains a world class nickel-copper-cobalt discovery.

The most critical element of mineral development over the long term is exploration. New mineral finds are needed to sustain and increase production over time. Exploration remains at a reasonable level in our province, currently in the range of $25 million annually, despite a downturn in exploration activity globally. This level of exploration reflects the confidence the industry has in our province.

Priorities for Action

• Government will continue to pursue a fair and reasonable deal with INCO for the development of Voisey's Bay - a deal which reflects the competitive business environment in which INCO operates but one which also assures full and fair benefits to our people, including full processing of nickel within Newfoundland and Labrador.
  
  
  

• Following the jobs and growth consultations, government extended its Mineral Exploration Incentive Program from three years to five years and increased the annual budget for the program from $2 million to $2.25 million. In consultation with industry, government will review and adjust the project eligibility criteria to increase the stimulative effect of this program even further.

• Government will adopt and implement a dimension stone industry development strategy, in partnership with industry and the federal government, to stimulate growth and investment in this emerging sector.
  
  
  

• Government is currently reviewing its overall mineral policy framework, with a view to ensuring we have a competitive and stable tax and regulatory environment over the long term to support industry growth. This policy framework also needs to ensure that full and fair benefits are available to the people of our province from future mineral developments. Government will adopt and implement a renewed mineral policy framework within the next year.

• Advances in technology and an aging workforce in the industry pose particular challenges for the mining industry in Newfoundland and Labrador. Government will support new training initiatives, in partnership with industry, to address these challenges, through such actions as the recently launched IOCC Employee of the Future Program at the Labrador West Campus of the College of the North Atlantic. These initiatives will also be designed to encourage greater participation by women at all levels within the mining industry.
  
  
  

• Government will reform its mining and minerals rights tax to stimulate greater exploration investment in the province, while ensuring it continues to receive a fair return from development of the resources held in trust on behalf of all Newfoundlanders and Labradorians.

" Eco-tourism has a huge economic potential...demand for wilderness experiences is increasing dramatically ... We are very well placed to compete in the global marketplace..."

The Protected Areas Association

Growth in the tourism industry has been phenomenal. Bolstered by special celebrations such as Cabot 500, Soiree ‘99 and Vikings!1000, the tourism industry has grown by one-third since 1996. In 2000, more than 400,000 visitors came to our province and spent over $250 million - a record level on both counts. As well, Newfoundlanders and Labradorians spent over $300 million on tourism within the province itself. Hospitality Newfoundland and Labrador estimates that tourism now supports 2,400 businesses and employs, directly or indirectly, 25,000 people spread throughout the province.

Through aggressive marketing, we are attracting more and more visitors to our shores each year to share our culture and the incredible beauty of our land. Demand for adventure tourism, eco-tourism and cultural heritage tourism products is growing internationally. Newfoundland and Labrador is well positioned to take advantage of these opportunities. Extending the peak summer season by building on shoulder seasons and promoting winter tourism also provides new opportunity to grow the industry and improve overall business viability, especially in rural areas. The development of the Trans Labrador Highway will change the shape of tourism in Labrador fundamentally, creating opportunities and demand for new tourism products in this area of the province.

Priorities for Action

• Increased investments made in tourism marketing in recent years, together with a solid "brand" image (unique tourism products, dramatic seascapes/landscapes, significant history, distinct culture, and genuine people), are paying significant dividends in jobs and growth throughout the province. Government will partner with the federal government and industry to strengthen marketing efforts even further, focusing resources on core markets in Ontario and the Maritimes, as well as initiatives in the Northeastern United States.
  
  
  

• Increased emphasis will be placed on promoting Newfoundland and Labrador's niche tourism products in its overall tourism marketing strategy, where financial resources permit. This will include winter tourism, cultural-heritage tourism, outdoor adventure products, and other product areas where we have a competitive advantage.
  
  
  

• Government will continue to incorporate special events in its tourism promotion, in particular the Marconi celebrations in 2001, to complement its core "brand" marketing strategy.

• A tourism investment strategy was developed with industry in 1997 to provide a framework for tourism investment and product development around the province. The jobs and growth consultations revealed a need to refine and build stronger consensus on the product development component of this strategy. Government will establish a joint government-industry team to address this need. Particular attention will be given to product development opportunities that have potential to extend operating seasons.

• Government will work with stakeholders on the development and implementation of new tourism strategies for Labrador that will capitalize on opportunities arising from the construction of the Trans Labrador Highway as well as the potential of aboriginal art, culture and tourism.
  
  
  

• Government will seek a financial partnership with the federal government and industry to reactivate Destination Labrador as a dedicated tourism development and marketing agency for the unique tourism products and experiences available in Labrador.

• The sports fishery offers significant economic and tourism potential on the Island and in Labrador. The province will continue to press the federal government to properly support its jurisdictional responsibility for inland fisheries through a comprehensive multi- year recreational fisheries management and development program. The province is prepared to share the cost of this initiative with the federal Department of Fisheries and Oceans, as it did previously under the Canada-Newfoundland Comprehensive Agreement on Salmonid Enhancement and Conservation (CASEC). This initiative will be approached without compromising access to the recreational fishery by Newfoundlanders and Labradorians.
  
  
  

• Recognizing that the natural beauty and pristine environment of Newfoundland and Labrador are essential to our tourism product, Government will move quickly to release a Natural Areas System Plan for the province, in order to preserve representative samples of our province's ecosystems and sensitive ecological sites.

• With recent growth in the industry, it is an appropriate time to focus greater attention on the overall experience of visitors to the province. This includes the quality of accommodations, cuisine and other services; modes and quality of transportation; and the richness and authenticity of the tourism product itself. Industry and government need to work collaboratively to build a quality conscious culture within all sectors of the industry, and to incorporate greater recognition of the value of training and certification. The government- industry team dealing with tourism product development will also consider ways to advance product and service quality initiatives throughout the industry.

Our oil and gas industry is coming of age. Newfoundland and Labrador is expected to produce almost one-third of Canada's light crude oil by 2004. We are successfully moving from a single project called Hibernia to a full fledged petroleum industry able to take advantage of opportunities in our province and around the world.

" ...with 4 trillion cubic feet of discovered natural gas, and an undiscovered potential of some ten times that amount, we have the resource base for a strong, vibrant and sustainable oil and gas industry in this province.."

- Capt. Mark Turner,
Newfoundland Ocean Industries Association

The flow of oil from Hibernia is surpassing original expectations. Hibernia has also provided us with the skills and infrastructure needed to develop the full potential of this new industry. As oil flows from Hibernia, exploration and development of further reserves hidden below the ocean floor continues. The Terra Nova field will come on stream this year, and a development plan is under review for the White Rose field. The prospects for an early start of a fourth producing offshore field, Hebron-Ben Nevis, are very promising as well..

Our offshore natural gas resources are significant, with an estimated potential of 50 trillion cubic feet. It is a valuable resource that presents considerable economic opportunity. Its full exploitation also offers prospects for petroleum-based value-added processing in the province.

Several basins located onshore and offshore Western Newfoundland are also considered to have significant petroleum potential. A Newfoundland based company, Canadian Imperial Ventures Corporation, is proposing the development of the province’s first onshore oil field, located on the Port au Port peninsula. 

In 2000, an estimated $1.4 billion was invested by the private sector in the petroleum industry, including $920 million in development activity and $160 million in exploration. Exploration is the key to new development over the long term and interest in our offshore resources remains high.

The emergence of the oil and gas industry has stimulated a multi-faceted service and manufacturing sector. Numerous professional and technical firms have been born along with Hibernia and are now branching out to tackle projects beyond Newfoundland and Labrador.

Priorities for Action

• Four studies on the technical and economic potential for natural gas development in the offshore are currently underway in anticipation that a comprehensive natural gas development strategy can be developed for the province in 2001.
  
  
  

• Government will work with the federal government and Nova Scotia to ensure arbitration of the maritime boundary dispute between Nova Scotia and Newfoundland and Labrador is concluded in a timely manner. This is a potentially rich oil and gas region south of the Island and certainty over its jurisdiction is required before significant exploration can commence and long term investments are made by the industry.
  
  
  

• Government will work with industry to promote further exploration and development of petroleum resources in the West Coast region, as a means of providing new jobs and new business opportunities in this area of the province.

• Now that we have evolved from a single oil project to a maturing petroleum industry, it is an appropriate time to review our industrial and employment benefits strategy to ensure the province continues to receive full and fair benefits from the further development of its petroleum resources. This will be undertaken in a manner that takes into consideration the need to maintain an internationally competitive and attractive business environment for industry growth.

• A collaborative stakeholder review of the provincial labour relations regime in the oil and gas industry has recently been completed. Government will consider the recommendations arising from the review in a timely manner to ensure a productive and internationally competitive labour relations climate evolves to support growth and employment in the industry.
  
  
  

• Government will work with the federal government, the Canada-Newfoundland Offshore Petroleum Board and industry to identify and act on opportunities to improve and streamline existing offshore petroleum regulatory processes and practices in such areas as workplace health and safety, the land tenure system, and the project development approval process.

• Government will work with industry and educational institutions to develop a coordinated strategy to identify and address education, skill and experience gaps between the growing needs of the petroleum industry and the local labour force. Opportunities for women and youth to participate more fully in the industry will receive particular attention in this strategy.
  
  
  

• Government will consult with industry on the introduction and implementation of generic offshore and onshore petroleum royalty regimes to provide long term certainty and consistency on royalty matters for both the provincial government and industry.

" Small scale manufacturing ... is an area which we expect to see growing in the next few years..."

- Ms. Cindy Colosimo Robbins,
Labrador Straits Development Corporation

We are exporting to the world. We are building houses in Chile. Our bottled water quenched the thirst of athletes at the Commonwealth Games in Malaysia in 1999. Our soaps are scenting the baths of Japan. Our processed foods are served in the dining rooms of Europe.

Manufacturing outside the fisheries, forestry and mining industries currently employs more than 7,000 people full time in more than 400 companies in both rural and urban areas. Small scale manufacturers generate sales in excess of $500 million every year.

Over the past decade, our manufacturing industry has undergone significant change resulting from new export opportunities, heightened global competition, emerging information and other new technologies, and corporate restructuring internationally. Local manufacturers have been quick to take advantage of opportunities afforded by these and other developments, expanding their reach to the global marketplace.

The advantages of investing in Newfoundland and Labrador are significant. We have a skilled, productive and loyal workforce. In a 1998 independent study of 42 cities in seven countries, St. John's emerged as one of the most cost-effective cities in the world in which to do business. This advantage extends to rural areas of our province as well.

The manufacturing industry, particularly small scale non-resource based manufacturing, has the potential to grow into an increasingly important part of our economy, especially in rural Newfoundland and Labrador.

Priorities for Action

• Government adopted a small scale manufacturing strategy in 1999 following consultations with industry. This strategy focuses on helping firms adopt best manufacturing practices, team based management techniques, new production technology, ISO certification, export marketing expertise, and e-commerce methods. Implementation of this strategy will be accelerated in partnership with industry, with a particular focus on rural opportunities, and will form a core business development priority of the new Department of Industry, Trade and Rural Development.

• Government convened a Marine Industrial Policy Forum for Atlantic Canada in the Fall of 2000 to review the dynamic changes taking place in the shipbuilding and marine fabrication industry and to chart new directions within the context of a revitalized national shipbuilding policy. The federal government responded by striking a task force to address this issue as a national priority. The province will work with the federal government and other key stakeholders in identifying and implementing new measures to stimulate growth and vitality in this industry on a globally competitive basis.

• Government will maintain its stimulative manufacturing and processing corporate tax rate at its existing level of 5% and will ensure this tax regime remains among the most competitive in the country.
  
  
  

• A competitive business climate is essential for growth in the manufacturing sector, especially as it relates to smaller firms. Specific measures to encourage new business investment and to keep existing businesses competitive are outlined in other areas of this report.
  
  
  

• Government will work with industry to ensure full and fair access for local manufacturers in government's procurement policies, and will explore ways in which government's purchasing power can be used more strategically to support local industry while maintaining the fundamental principles of open access and transparency in its public tendering practices. A joint industry-government team will be established to achie

• The consultations revealed that adequately skilled local labour is not always available to meet the needs of the manufacturing industry, especially in rural areas. This represents a significant impediment to growth. The newly formed Labour Market Development Council will be directed to address this issue as a priority through roundtable discussions with key educational, industry and labour stakeholders.
  
  
  

• Government will aim to improve its manufacturing "investment prospecting" abilities, especially in rural areas, by working with the private sector

" There is great potential in cod farming...what other business can return approximately a five-fold increase in product value in such a short time and allow the owner operator to pay off in full all financial debt."

Mr. Bernard Norman
Rushoon

The aquaculture industry is relatively new to our province and is still in the development stage. Nonetheless, this sector employs more than 500 people today and has almost doubled in size over the past three years. Forty-three companies now operate over 100 commercial aquaculture sites in the province. An additional 70 sites are under development. Total export sales are in the $14 million range. The primary species being cultivated are mussels, steelhead trout and salmon. Cod grow-out enterprises, where traditional fisheries methods are being merged with aquaculture technologies, are also providing significant new opportunities for rural communities.

Aquaculture has become a major food source worldwide. There is considerable potential for expansion in our province. However, in the past, significant effort and resources have been directed toward a multitude of species for potential development as opposed to focusing on a more limited range of opportunities that had the greatest potential for commercialization. Given limited resources, this approach inadvertently constrained overall growth and job creation in the industry.

Priorities for Action

• Based on consensus that has emerged within the industry, a new five year aquaculture development strategy will be implemented, focusing efforts on opportunities in four primary species: blue mussels, Atlantic salmon, steelhead trout, and cod.
  
  
  

• Existing aquaculture support programs and services will be adjusted and enhanced in appropriate areas to accelerate commercial private sector development in the designated priority species. This will include further streamlining of the aquaculture regulatory and licencing regime currently in place. The moratorium on new cod grow-out licenses and sites has recently been lifted to spur growth in this sector.
  
  
  

• Support programs will focus on measures designed to: (a) improve the financial viability of existing enterprises through reduction of production costs and adoption of new technologies; (b) enhance and expand cooperative marketing efforts; (c) attract new private sector investment; (d) encourage value-added secondary processing where commercially viable; and (e) facilitate improved industry training, including business management skills of smaller enterprises.
  
  
  

• The province will encourage the federal government to provide continued financial support to the Canadian Centre for Fisheries Innovation at Memorial University's Marine Institute, in order to facilitate applied research and development in the aquaculture industry in support of commercialization and growth objectives.

• The Aquaculture (Shellfish) Working Capital Fund has been reviewed in consultation with industry to ensure it effectively supports growth of the mussel industry. As a result, two new initiatives have been established to foster growth and introduce new technology to mussel farms.
  
  
  

• Government has successfully divested its financial interests in SCB Fisheries Limited at Bay d’Espoir in favour of full private sector ownership. The majority of the salmon and stealhead trout industry is clustered in this region. Government will work with the salmonid industry in Bay d’Espoir in appropriate areas such as R&D and market development to promote the commercial expansion of the industry.

" (Artists) represent a significant cluster of economic activity in their own right...."

- Ms. Pam Hall,
Association of Cultural Industries of Newfoundland and Labrador

Newfoundland and Labrador has a rich cultural heritage that defines us as a people and shapes our identity on the national and international stage. The uniqueness of our culture and heritage also provides new economic opportunity in such areas as sound recording, film, publishing, visual arts, music, museums and heritage attractions. Our cultural activities currently employ more than 2,800 people and contribute almost $200 million annually to the provincial economy. Opportunities to promote our culture and heritage, for its own sake but also in an economic development context, are significant. The province's culture and heritage also plays an integral role in defining and enhancing our tourism product to the world. This is a growing industry internationally and its potential has only recently been recognized as an important contributor to our economic future.

Priorities for Action

• The consultations revealed a need to develop an overall framework for cultural and heritage industries development to guide growth and investment in a coordinated and focused manner. Government has been working with industry to formulate such a strategy, taking into account key themes and messages from the jobs and growth consultations.

• A cultural development strategy will be released in 2001. Among other key issues, it will examine new ways of stimulating the early stage creative processes of the people who make up our cultural industries and help professional artists become more viable. The strategy will also consider approaches for integrating culture within overall government activities, such as sport, technology and natural resources; identify areas where a renewed emphasis on culture and the arts is needed in the K-12 system; address means of promoting cultural products in the national and international arenas; and determine how best to forge more effective partnerships between government and stakeholders to achieve the full potential of the industry.
  
  
  

• A heritage development policy will also be released in 2001. It will establish a framework for designation of heritage sites at the provincial and municipal levels; provide guidelines for heritage conservation and presentation; set standards for the development, management and promotion of heritage sites and properties; and determine how best to forge more effective partnerships between government and stakeholders to achieve the full potential of the industry.
  
  
  

• Government will work with municipalities, industry, and other stakeholders to transform the province's six Arts and Culture Centres into more dynamic, regionally based operations that respond to the artistic and cultural needs of the regions in which they are located.

• The film industry has grown significantly in recent years through the efforts of the Newfoundland and Labrador Film Development Corporation, supported by specific government measures such as the Telefilm Equity Investment Program and the Telefilm Industry Tax Credit Program. Considerable economic potential remains if the right approach is taken to development. In partnership with the film industry and the Corporation, government will review the most appropriate strategy to take the industry to a higher plateau where private sector investment drives future growth.

• To ensure the needs of the film industry are addressed in the context of government's overall cultural industries strategy, responsibility for the Newfoundland and Labrador Film Development Corporation will be reassigned to the Minister of Tourism, Culture and Recreation.
  
  
  

• Government will partner with the federal government to establish a $4.5 million Cultural and Heritage Industries Development Fund to assist in the sustainable development of cultural and heritage industries and to support initiatives that have significant economic development and employment creation potential.

" ...the business of creating information technology solutions is also providing incredible growth for Newfoundland firms...and, as an enabler, the industry is allowing firms to establish in far more remote locations than was possible even ten years ago."

Operation ONLINE Inc.

The economy of the province is transforming itself and becoming much more diversified - not only in traditional sectors such as the fishery and agrifoods industries, but also in entirely new industries. New strengths, capabilities and opportunities are emerging in information technology industries, environmental industries, aerospace, biotechnology, marine technologies, and specialized knowledge based export services such as educational products.

The information technology sector alone averaged more than 10 per cent annual growth from 1992 to 1997, and has grown by 25 per cent in each of the past three years. We have in our province today over 200 IT firms and 4,000 IT professionals, generating $600 million in sales around the world.

These new sectors of our economy hold tremendous growth  and employment potential for Newfoundland and Labrador if we focus on specific niche opportunities.

Priorities for Action

• Government targeted the IT industry for growth five years ago with the establishment of a public-private partnership known as Operation ONLINE. Government will work closely with industry to renew its approach to IT growth in the province as this industry continues to mature. Specific priorities will be established in consultation with the private sector and other stakeholders, but will focus on: (1) accelerating the use of IT in businesses in all areas of the province through e-commerce and other means; (2) addressing human resource development challenges throughout the industry; (3) developing and commercializing distance education technologies to level the playing field between urban and rural areas; (4) developing clusters of export oriented IT firms and capabilities in various areas of the province that complement one another; and (5) ensuring all regions of the province have access to modern telecommunications infrastructure to participate in the knowledge based economy.

• Significant cold ocean and marine technology research and development capabilities have emerged within and around Memorial University. Among these are the Institute for Marine Dynamics, the Centre for Cold Ocean Resources Engineering, the Marine Institute, the Ocean Sciences Centre, and the Canadian Centre for Marine Communications. These facilities, and the expertise available through them, are among the best in the world. Government will partner with these institutions and the private sector to promote and market, on the international stage, the cluster of capabilities and expertise this "Centre of Cold Ocean and Marine Technology" can offer to businesses and industries around the world. Increased attention will also be given to commercialization opportunities that can be realized from this technology cluster. These initiatives will lead to new employment and investment in our province, and will also raise the profile of our province in the international community as a modern, diversified and dynamic jurisdiction.

• The environmental services industry is opening up new opportunities in Newfoundland and Labrador in such areas as recycling, site reclamation and waste management, to name just a few. We need to view environmental stewardship as an opportunity for economic growth, not as an obstacle. Government will partner with industry to more vigorously promote and develop private sector opportunities in this field. Government will also develop a comprehensive waste management strategy for the province in consultation with municipalities, industry and other stakeholders, to address community waste management issues in our province and to take advantage of potential new business opportunities in this area.

• Government will adopt and implement, in partnership with industry and the federal government, a biotechnology development strategy, in keeping with provincial competitive strengths in the marine sciences and genetic research. This will advance commercialization, employment and investment opportunities for our province in an expanding world market for biotechnology products and services.
  
  
  

• There is potential to develop a high technology niche  manufacturing and service industry clustered around the national and international defence and aerospace procurement business. Government made a strategic investment in 1999 with the private sector to establish an advanced manufacturing centre in Gander - Newfoundland Bonding and Composites Limited - to support this direction. Government will continue to promote these opportunities and partner with the private sector to identify and capture national and international business for provincial firms in this sector. Significant spin-off opportunities for smaller manufacturing and service based companies will also emerge as critical mass is developed within this industry.

• While education is a critical building block of economic development, it can also be viewed as an economic growth opportunity in and of itself. Globally, trade in education  products and services reached almost $70 billion in 1995. Spending on work place education in Europe and North America is estimated to be in the $300 billion range, and 1.5 million high-school and post-secondary students study abroad each year, contributing an estimated $28 billion to the economies of their host countries. Growth trends in each of these areas is strong, with the number of "international" students alone expected to double in the next decade. Newfoundland and Labrador is well positioned to participate in this education marketplace. The emergence of a strong IT industry in our province also offers opportunity in the education industry, as many education products and services are increasingly being delivered through the Internet and other web based systems. A comprehensive education business development strategy will be finalized and implemented to guide marketing and investment in this emerging new industry, based in part on two pilot projects currently underway in Corner Brook and the Burin Peninsula .

The social economy provides a diverse range of goods and services and employment opportunities through volunteer networks at the community level that neither the private sector nor government is well positioned to meet.

" Our programs are a wonderful marriage of social, economic and community development."

- Ms. Catherine Barrett,
Waterford Foundation
(Evergreen Recycling and Mill Lane Enterprises) St. John's

A good example is Evergreen Recycling and Mill Lane Enterprises in St. John's. This non-profit organization, administered by the Waterford Foundation, has a mandate to deliver community-based vocational rehabilitation programs for people with mental disabilities. It operates a recycling and woodworking/textile business that employs 120 people who have moderate to severe mental illness. This initiative serves a valuable social objective by providing participants with job skills, income and greater self-esteem, but it also provides a valuable community service in the form of environmental recycling and it contributes to the economy by providing services and goods that are in high demand. Ultimately, the goal is to provide individuals with experiences that will allow them to move into the mainstream labour force and avail of long-term permanent employment opportunities.

The social economy meets a combination of economic and social objectives at the community level. In some cases, these initiatives have the potential to evolve into market driven private sector enterprises. In other cases, they represent an investment in social infrastructure, community service, or community economic development. The involvement of the community-based sector, sometimes referred to as the "third" sector, is essential in a vibrant economy. 

Many presentations made in the consultations focused on the contribution and potential that the social economy could play in the province's overall jobs and growth agenda.

Priorities for Action

• Government, in partnership with the Premier's Council on Social Development and other key stakeholders, will explore strategies and means for stimulating the social economy in the province to support and complement private sector employment and wealth creation.

" ... small businesses are the main engine of growth, and SABRI is confident that many opportunities can be pursued with individual entrepreneurs in small enterprises."

- Mr. Dennis Coates, 
St. Anthony Basin Resources Inc

It was repeatedly stressed throughout the consultations that a balance needs to be struck between larger scale developments and the need to foster the growth of small enterprises in all areas of the province. More than 95% of all business enterprises in Newfoundland and Labrador employ fewer than 50 people - the upper limit most often used in defining small business - and almost 80% of all businesses in the province employ less than five people. Small businesses create more jobs each year in Canada than any other component of the economy. The small business sector was identified in the consultations as a major economic opportunity whose potential has yet to be fully tapped in the province, especially in rural areas.

Priorities for Action

• Government will give greater priority and emphasis to small business development in its renewed jobs and growth agenda, through new initiatives on the tax, regulatory and direct investment support fronts, championed by the new Department of Industry, Trade and Rural Development.
  
  
  

• Government will establish a Small Business Advisory Council reporting to the Minister of Industry, Trade and Rural Development to provide ongoing advice and support on small business development issues.

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