Department of Innovation, Trade and

Rural Development

Municipal SymposiumMay 10, 2008

Overview

1. Brief background of the department2. 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 business1. Small and medium-sized enterprise (SME)

development2. Industrial diversification and value-added

initiatives3. Innovation with industry, labour and

institutions4. Investment attraction and support5. 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 Boards2. 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 IdentificationPurpose• 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

www.gov.nl.ca/intrd