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Stronger Communities and Stronger Regions

Stronger Communities - A Stronger Province

Economic development happens within communities. This is where businesses operate and where people are employed. The communities are not just the beneficiaries of this process - they are an integral part of it. Businesses start with a competitive advantage and an entrepreneur. Businesses grow with a supportive community.

" Developing the (strategic economic plan for our community) brought renewed optimism and a positive attitude that we, small rural community, had the energy, courage and enthusiasm needed to make a difference in our future. "

- Mr. George Hatcher,
Isle-aux-Morts Economic
Development Board

The public consultations reinforced that effective development cannot occur with either a top-down or a bottom-up approach. Efforts that are centrally-driven or fragmented and uncoordinated do not produce the desired results. Similarly, efforts at the community level that do not link to overall provincial policies and priorities do not work. The consultations made it clear that provincial priorities and community priorities must come together and that the most effective means to accomplish this is to focus on regional development strategies.

Stronger communities and stronger regions will lead to a stronger province. We need to ensure that all regions share in our economic progress and that the overall economy develops more on a regional basis as we move forward. This was the clear message delivered in the consultations. The call, however, was not for government to direct the effort and provide all the resources. Instead, the call was for government to help develop the capacity and capability within communities and within regions so that they can take control of and shape their own futures. This is quite a departure from the thinking and attitude prevalent just a few short years ago.

This approach is consistent with the principles which gave rise to the creation of the 20 regional economic development boards in the province. It also goes to the essence of the fundamental strategy adopted in the province's Strategic Social Plan. What is encouraging is that this concept has taken hold so soon and so deeply. This bodes well for the future.

The challenge facing government is to harness that spirit and energy in a productive manner, and to provide the tools for communities and regions to help themselves. The regional economic development boards will continue to be the core institutional mechanism to achieve this from an economic development perspective.

There is also a growing recognition of the importance of linking economic and social investments to support community and regional development in the province. Through the Strategic Social Plan, government has moved to establish regional committees in all areas of the province to build the necessary community and regional partnerships to deliver an integrated approach to social and economic development. The regional committees include representation from the regional economic development boards. This relationship is an important tool in ensuring that economic and social development move hand-in-hand.

Priorities for Action

• The Minister of Industry, Trade and Rural Development will meet with each of the 20 regional economic development boards to review the status of their strategic economic plans and the implementation of their regional priorities for action. Government will work with the boards to bring a sharper focus to the regional economic development agenda in keeping with distinctive regional strengths across the province. Stronger linkages with the private sector, as well as with overall provincial industry development strategies, will also be key ingredients to advancing the regional economic development agenda.
  
  
  

• Government will continue to focus investments from federal-provincial cost-shared economic development agreements toward priorities identified by the regional economic development boards to help improve the long term economic climate in all regions of the province.

• To build on the major shift in attitude and growing confidence which is taking place in our province, government will convene a "Rural Forum and Exposition" in 2001 to celebrate, promote and nourish the economic and business successes and opportunities that are before all regions of Newfoundland and Labrador. This will involve entrepreneurs, youth, community, industry and other leaders from around the province.
  
  
  

• Government will partner with the regional economic development boards to promote and strengthen, on a regional basis, the environment of confidence and success and "can do" attitude that is emerging in the province. province.
  
  
  

• The economic development priorities and diversification opportunities identified by the twenty regional economic development boards and individual municipalities will be integrated with government's new investment prospecting agenda.

• Government is committed to establishing a highly competitive business climate in the province, focusing in particular on rural areas. The introduction of the new venture capital tax credit program reflects this commitment. Enhanced incentives are available through this initiative to businesses that establish and expand in areas outside the North East Avalon area. Other similar initiatives that provide a "hand-up" to rural Newfoundland and Labrador are outlined in this report. More needs to be done on this front - more will be done.

• Government will continue to move aggressively in implementing its Strategic Social Plan, building on the critically important linkages between economic and social investments at the regional and community levels. Regional steering committees to guide the development of long term regional strategies for social development, linked to regional economic development strategies, are already in place.
  
  
  

• Government will partner with the Newfoundland and Labrador Federation of Municipalities to strengthen the capacity of municipalities to participate in economic development at the local and regional level, in keeping with the enhanced role provided for them in economic development as embodied in the new Municipalities Act.

• Government, through the Department of Municipal and Provincial Affairs, will continue its $100 million multi-year municipal capital infrastructure program in 2001 and will consider increased investments to its $20 million annual municipal capital improvement program. This will provide new infrastructure investments to help communities participate in a modern economy.
  
  
  

• To strengthen the capacity of local governments to maintain viable communities and capitalize on new growth opportunities, government will provide support to enhance and extend municipal debt relief to benefit communities most in need.
  
  
  

• Government will explore new means of encouraging regional cooperation in service provision between communities to strengthen the environment for economic development on a regional basis. The Newfoundland and Labrador Federation of Municipalities will be engaged in developing a framework for such action.

• Modern and reliable transportation infrastructure is critical to economic development. The challenge of meeting this need is particularly acute in Labrador. Government remains committed to working with the federal government to complete the Trans Labrador Highway from Red Bay to Cartwright and from Labrador West to Happy Valley - Goose Bay. The federal government will also be approached to participate with the province in linking Happy Valley - Goose Bay to Cartwright. Government also remains committed to providing a high quality marine link to remote areas of coastal Labrador and the Straits region.
  
  
  

• The coastal communities in Labrador, but especially along the northern coast of Labrador, require new investments in infrastructure in order to fully develop their economies and provide for core social needs of their people. Government remains committed to a three-year $23 million Northern Coastal Labrador Strategic Initiative that commenced in 2000.

• The economic needs and challenges confronting Labrador are different from the Island. Government intends to develop a comprehensive Labrador Economic Action Plan that addresses this reality, based in part on the strategic economic plans prepared by the five regional economic development boards in Labrador. The federal government will be approached to assist financially in the implementation of this plan through a dedicated Labrador development initiative.
  
  
  

• Government has also created a new Department of Labrador and Aboriginal Affairs to ensure the needs and unique circumstances of Labrador are given appropriate attention in government's overall social and economic agendas.

• The presence of a government agency in a community can have a significant positive economic impact on that community and surrounding area. Most federal and provincial agencies are currently clustered in the North East Avalon region. The consultations suggested that the federal and provincial governments consider a regionalization policy for government agencies as a means of strengthening regional growth centres around the province. The Government of Newfoundland and Labrador has adopted this strategy as one element of its overall regional economic development agenda. It will encourage the federal government to consider a similar approach as has been pursued in other jurisdictions such as in Prince Edward Island which was the beneficiary of the relocation of the Veterans Affairs Department from Ottawa to Charlottetown in 1984 and the establishment of the GST Centre in Summerside in 1992. Implementation of this policy will give particular attention to opportunities associated with any new government organizations that may be established in future.

• The aboriginal peoples of our province are an extremely important part of our heritage, our culture and our future. Government is committed to addressing the economic and social issues facing them. This includes the fair settlement of land claims in Labrador that are critical to the effective advancement, socially and economically, of aboriginal peoples and our province as a whole. Government will give priority to the successful negotiation of aboriginal land claims as part of the jobs and growth agenda.