Strategic Economic Plan Draft
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Strategic Economic Plan (Economic Zone 7) Economic Zone 7 - Trout River to St. Barbe Draft P.O. Box 70 Prepared for: Parsons Pond, NL Canada A0K 3Z0 Atlantic Canada Opportunities Agency & 709-243-2829 Department of Innovation Trade & Rural Development 709-243-2601 709-243-2254 (Fax) [email protected] www.redochre.org Prepared by: RED Ochre Regional Board Inc. Board of Directors “Building Our Future Together” March 31st, 2011 Table of Contents I Vision…………………………………………………………………………….. 3 II Six Key Components of Economic Development…………….............................. 3 1.0 Introduction – Board of Directors ……….……………………………………… 4 2.0 The Region – Economic Zone 7 ………………………………….……………... 5 3.0 Economic Zone 7 – Environmental Scan…………………………...…………… 6 4.0 Investment Opportunities……………………….……………………………….. 12 5.0 Opportunity Management Process………………………………………............. 14 6.0 Industry/Sector Development…………………...……………………………….. 17 6.1 Fisheries Development…………………………………………………... 17 6.2 Tourism Development…………………………………………………… 18 6.3 Agrifood Development…………………………………………………... 21 6.4 Forest Development……………………………………………………… 23 6.5 Energy/Oil & Gas Development…………………………………………. 26 6.6 Youth Engagement/Labour Market Development……………………….. 27 7.0 Business Development…………………………………………………………… 28 7.1 Information Communication Technology (ICT)…………………………. 28 7.2 Business Development Activities………………………………………… 31 7.3 Industry and Community Infrastructure Requirements…………………... 33 8.0 Strategic Economic Plan – Highlights, Goals and Objectives……………………. 35 9.0 Monitoring and Evaluation Process for the SEP………….…................................ 39 10.0 Conclusion…………..……………………………………………………………. 39 Appendix I Strategic Economic Plan – Outline of Process Appendix II Board Structure Appendix III Sample Initiative Charter 2 The Vision “Competing globally, utilize our natural, heritage and cultural resources innovatively to create an environmentally sustainable economy in order to provide a meaningful life style for residents of the region.” Updated Fall 2007 Six Key Components Of Economic Development ¾ Labour Market Development ¾ Marketing and Business Development ¾ Infrastructure ¾ Government Policies/Regulations ¾ Environmental Integrity (Sustainable Development) ¾ Research and Development (e.g. Community Capacity Building and Business/Industry trends) 3 1.0 Introduction – Board of Directors On behalf of the RED Ochre Regional Board I am pleased to present its Strategic Economic Plan (SEP) 2011 – 2014 for Economic Zone 7, the region of the Great Northern Peninsula from Trout River to St. Barbe. The Board’s Strategic Economic Plan highlights community and business development opportunities for future growth in the region. Opportunities exist within the traditional fisheries, aquaculture, forestry, tourism and agrifoods sectors. In addition, the completion of the Trans Labrador Highway in November 2009 has created new business and community development opportunities in transportation, e.g. food, automobile and truck services, accommodations and transportation infrastructure. The SEP also examines the constraints to economic and business development within the Zone that must be addressed to facilitate new economic activities. Public and private consultation was used to seek business, public and government input into this new/updated SEP. Local economic and business data was also utilized with available government statistical data to prepare the SEP for 2011 - 2014, e.g. Community Profiles and Business Directory 2010, Statistics Canada – 2006, Community Accounts – Newfoundland Labrador, Economic and Statistics Branch, Department of Finance (1986-2010). In addition to an overview of the current economic situation in the Zone, the SEP includes the following: Investment Opportunities, Opportunities Management Process, Fisheries Development, Tourism Development, Agrifood Development, Forestry Development, Youth Engagement & Labour Market Development and Energy/Oil & Gas Development. The section on Business Development is focused on Transportation, Information Communication Technology, Business Support Services and Industry Infrastructure Requirements. Goals and objectives are then identified to address the potential for business and economic growth. Using the Opportunities Management Process the Board then identified targets, initiatives and expected outcomes/time frames in the separate Integrated Business Plan (IBP). Please see Appendix I – Strategic Economic Plan. It is the goal of the RED Ochre Regional Board to work with residents, community leaders, business owners, government departments and political representatives to implement the work outlined within our SEP and yearly IBP. Your active participation in this process is welcome. For details on the Board of Directors, please see Appendix II – Board Structure Gloria Toope Chairperson RED Ochre Regional Board Inc. Parsons Pond, NL March 31, 2011 4 2.0 The Region – Economic Zone 7 The RED Ochre Regional Board Inc., one of 19 Regional Economic Development Boards in the province of Newfoundland Labrador. The Board encompasses communities from Trout River to St. Barbe on the Great Northern Peninsula. The Board and its staff work with partners and stakeholders toward the development of sustainable, vibrant, rural communities through identifying and addressing opportunities and challenges presented by the economic, business and labour market climates. The Great Northern Peninsula constitutes the largest, distinctive geographical region on the Island of Newfoundland. It stretches 363 km and covers approximately 17,500 sq/km. Economic Zone 7 encompasses the southern half of the Peninsula, the 34 communities between Trout River in the south and St. Barbe in the north, with a combined population of approximately 8,900 in 2010. The communities/towns in Economic Zone 7 are located in the lowlands on the coastline, with the Long Range Mountains providing a spectacular backdrop. Geographical distance between communities and winding coastal/mountain roads results in a significant geographical challenge to business and community development. Transportation is via Route 430, which begins at the Trans Canada Highway in Deer Lake and follows the coastline up to the northern tip of the Peninsula. Route 431 at Wiltondale takes travelers to Glenburnie-Birchy Head-Shoal Brook, Woody Point and Trout River. Regular air service is available at Deer Lake, which is serviced by national, regional and provincial carriers. Also, the Labrador Ferry, linking the Island of Newfoundland to southern Labrador, operates out of the port of St. Barbe. There are thirty-four communities spread throughout Economic Zone 7, with an average population of 266 residents per community and a combined population of 9,060. Only one community has a population of more than 1,000; Rocky Harbour. The economy of the region has traditionally been based on the fisheries and forestry sectors. 5 Tourism has emerged over the past thirty years as a major new significant sector. Aquaculture and agrifoods are smaller enterprises but also recognized as contributors to the local economy. With the recent completion of the Trans Labrador Highway the Zone is expecting new business development and expansion linked to the transportation sector. 3.0 Economic Zone 7 – Environmental Scan May 2011 marks the fifteen year of economic planning and implementation by the RED Ochre Regional Board and its business, community and government partners/stakeholders in Economic Zone 7. While the Zone continues to see successful community and economic development activities, it is one of the most economically challenged regions on the Island of Newfoundland. Ongoing developmental planning and implementation must deal with a wide diversity of issues and activities. The newly revised SEP for the Board and Economic Zone 7 must address the following challenges if it is to realize new business and community development opportunities. Serious challenges to overcome if the region is to realize its full economic potential: • Population decline – threat to the sustainability of the region’s communities • Declining fishing sector, need for new business models/ plans, i.e. fisheries/tourism links/partnerships • Aquaculture development in the Zone will require additional investment • Declining forest sector, need to develop non-timber forest resources • The need for additional tax credits to address the capital cost of new business development/start ups • Changing tourism sector that now requires significant investment in product/experiential programming – Department of Tourism, Culture & Recreation, Uncommon Potential - Vision 2020. • Potential in transportation but there needs to be investment in infrastructure – Port of St. Barbe, highway, signage and transportation support services • The local Labour Market has a supply side shortage that is growing. This issue will require more support from the federal/provincial Labour Market Development Agreement (i.e. JCP, LLMP etc…). • Agrifood development in the Zone will require investment in agrifood business development • Lack of highspeed access for many of the communities and businesses north of Port Saunders/Port au Choix • Lack of cell phone coverage in many areas throughout the Zone • Municipalities in the region are facing a decreasing population at the same time that aging infrastructure – water, sewage and road, requires new investment 6 Table I - Economic Zone 7 – Industry Sectors 2011 (Updated as of March 4, 2011) Industry Sector Economic Value Number