Department of Innovation, Trade and Rural Development Municipal Symposium May 10, 2008

Overview 1.Brief background of the department 2.Municipalities: partners in economic development

Department Background The Department –Lead agency for economic development –Created in 2004 to emphasize the role of innovation in the province’s economic agenda Vision –Diversified, competitive economy with productive and prosperous people in all regions of the province

Department Background Lines of business 1.Small and medium-sized enterprise (SME) development 2.Industrial diversification and value-added initiatives 3.Innovation with industry, labour and institutions 4.Investment attraction and support 5.Economic intelligence and competitiveness indicators

Guiding Principles Comprehensive Regional Diversification Strategy Emphasize regional industrial diversification Link industrial development to small business creation Recognize linkages between social and economic planning Emphasize innovation and technology Economic development must be understood in the context of strategies to create new business operations and long term sustainable employment

Municipalities & Economic Development Municipalities Act Section 203. (1) A council may encourage economic development as it considers appropriate and for that purpose, may enter into an agreement with another municipality, local service district, agency, person or the government of the province. (2)In this section, "economic development" means the continuation, expansion or establishment of a business or industry.

Sustainability & Economic Development Coordinated approach among all regional stakeholders is key Regional Partnerships –Regional Economic Development Boards (REDBs), municipalities, Community Business Development Corporations (CBDCs), industry associations, etc Opportunity Identification –Informed identification of potential opportunities –Vital to consider the sustainability of potential opportunities by developing assessment criteria, research, planning Current Initiatives –Regular assessment is critical in changing environments –Important to determine if work should continue on a particular initiative- is it sustainable?

Regional Economic Development Supports 1.Regional Economic Development Boards 2.Co-operative Development 3.Business Retention and Expansion 4.Community Capacity Building 5.Regional Sectoral Diversification Fund

Regional Economic Development Boards Purpose –Facilitates and coordinates economic development in each of the province's 20 economic zones –One of their five core functions states: “Develop a strong partnership with municipalities in each zone that incorporates the strategies and priorities of municipalities in the economic planning process.” Role of Municipalities –work with the REDB to identify opportunities to partner (i.e. REDB as planner and Town/LSD as the implementer). –Strategic economic plan supported by an integrated business plan (municipal involvement is necessary)

Opportunity Identification Purpose Opportunity identification process involving REDBs, municipalities, CBDCs, business, and other economic development stakeholders A workshop designed to introduce stakeholders to a process to identify business and economic development opportunities that could be implemented to sustain or improve the local economy Role of Municipalities Overview to be presented at the NLREDA pan provincial: supporting panel discussion including MNL, NLACBDC, and an industry association to discuss roles for each in identifying opportunities and the resulting action items

Co-operative Development Purpose –Advances the co-operative model to support business growth in rural communities throughout the province –Partners with NL Federation of Co-operatives (NLFC) –NLFC/INTRD Regional network of 8 co-operative developers Role of municipalities –Consider the co-op model for providing services in a community, using the co-op model as a viable business model for development –Identify co-operative opportunities and initiate regional projects

Business Retention and Expansion Purpose –Promotes job growth by helping community leaders identify and address barriers facing existing local businesses –Business red-flag identification and follow-up –Research and analysis of completed business interviews –Facilitated community planning sessions Role of Municipalities –Included in resource network, assist INTRD in addressing red flags, participate in BR&E planning sessions, access to information about businesses in the region

Community Capacity Building Purpose –CCB training modules and economically focused planning sessions are available province-wide for interested stakeholders with a clear link to economic and business development –Municipalities are eligible to apply for funding Available Support –65 trained facilitators –14 workshops including: board governance, strategic planning, leadership, and new director orientation

Regional/Sectoral Diversification Fund Purpose –Provides non-repayable contributions to eligible organizations for the development and implementation of economic initiatives that address regional and sectoral development –Municipalities are eligible proponents –Assist municipalities to lead sustainable initiatives Available Support –Assistance up to 25% of total eligible costs –Availability of alternative sources of financing a factor

Where we are A commitment to strengthen opportunities for rural Newfoundland and Labrador. A suite of programs and an approach that builds on regional opportunities that provides sustainable development. A process committed to working with stakeholders throughout the province.

Conclusion and Questions