2000-2001 Budget / Budget Speech |
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VI. $310 million for regional development
This Budget provides $310 million to support economic development throughout the regions of Québec, and stresses certain particular cases.
Help for certain specific regions
While the upswing in the economy since 1994 has benefited Québec as a whole, certain regions are doing much better than average, especially Chaudière-Appalaches, the Outaouais, Montérégie, Laval, Laurentides, Estrie, Lanaudière and Québec. I hope that the introduction of some 50 new economy centres-- CNEs -- will accelerate this growth and help it spread throughout Québec.
Some regions, however, are still struggling with under-employment. We have a moral obligation to stand together and deal with this problem.
This is true, above all, for the Gaspésie and Îles-de-la-Madeleine region. Last November 19, the Québec government announced that $23 million would be made available to stimulate job creation and economic recovery in the region. This Budget increases that amount to $49 million, adding $9 million for road works, $12 million for tourism infrastructures and $5 million for job creation in the forestry industry.
Moreover, we will improve our maritime policy, while deploring the fact that the federal government still refuses to follow our example in doing something that is so effective and so highly appreciated by the industry. Thus, we are reducing by half the minimum size of ships entitled to the Québec tax credit. This will be particularly beneficial for shipyards in the Gaspésie and Îles-de-la-Madeleine region.
Our government also wishes to provide specific assistance for Québec's mining regions, to ensure continued growth in that industry. Additional funding of $5 million will go this year to set up a program to support distressed junior exploration companies. Additional one-year funding of $5 million will also be used to add a component to the mining exploration assistance program targeting the Abitibi-Témiscamingue region.
The Sorel-Tracy urban centre, which had a brilliant industrial past, is now experiencing economic and social difficulties. During the last two decades, several firms have closed their doors and the Tioxide plant has just announced that it will be shutting down as well. Other companies have restructured and many jobs have been lost.
Despite these difficulties, Sorel and Tracy, two municipalities in the process of merging, refuse to be beaten and several of their representatives – particularly their valiant MNA – have developed a multi-facetted action plan to boost and diversify the local economy.
The government is not indifferent to their desire to regain control of their destiny. This Budget is therefore allocating $21 million over three years to be used to promote a number of projects developed locally.
Québec produces 10% of the world's aluminum. The Saguenay–Lac-Saint-Jean region, which contributes more than any other to this output, still has too few plants processing this light metal, although this industrial niche has a promising future. This Budget supports the development of the "Aluminum Valley" as a world centre of excellence for processing this extraordinary resource. I am announcing the introduction of a tax credit for firms that locate in this region in order to manufacture finished or semi-finished aluminum products or specialized equipment for aluminum processing plants. This credit will be equal to 40% of the salaries of employees engaged in production and marketing during the year after which they are hired.
Assistance for the forestry industry
Most pulp and paper mills in Québec are already well into the necessary conversion of their production processes and have invested several billion dollars in the project. However, a certain number of firms failed to renew their equipment, which is no longer very productive and is ill adapted to compete on the world market. A number of these mills form the hub around which the economic activity of a region or a city revolves.
I am announcing today a grant of $100 million for INNO-PAP in order to support the development of the pulp and paper industry. With these funds, INNO-PAP will be able to:
- modernize Québec's less competitive mills; and
- maintain jobs in the regions.
These measures should result in the modernization of a number of mills, investments of $700 million and the preservation of 2 500 jobs, most of them in the regions, obviously.
Assistance for rural areas
We all know how important rural areas are for the Québec economy. You will remember that, in his inaugural address of March 3, 1999, the Premier announced the government's firm intention of adopting, in the year 2000, a Québec policy on rural life. My colleague, the Minister of Regions, will unveil this policy in June, along with the measures required to implement it. Meanwhile, it is important to provide funds for the three measures introduced in the past, which have proven their worth. I am therefore announcing the renewal, for five years, of the program for rural officers, the program to support traditional farm products and the program to finance Solidarité rurale. An amount of $3 million a year has been reserved for this purpose.
At the Québec Agriculture and Agri-food Conference held in Saint-Hyacinthe in March 1998, the government and its partners in the agricultural community agreed on the need to modernize the financial vehicles devoted to agriculture and turn them into powerful levers for development. To enable this long awaited reform to get under way without further delay, I am announcing today a long-term government commitment of $300 million a year to fund financial vehicles specific to the farming sector.
Other regional investments
To varying degrees, a number of Québec regions need to diversify their economy to create more jobs. Our government fully intends to support them in their efforts, and is giving them today $50 million to that end. The areas targeted are the Bas-Saint-Laurent, the Saguenay--Lac-Saint-Jean, Mauricie, Estrie, Abitibi-Témiscamingue, Côte-Nord, Nord-du-Québec, Chaudière-Appalaches, Lanaudière, Laurentides, Montérégie and Centre-du-Québec regions.
There is no doubt but that the availability of natural gas at a competitive price contributes to the economic growth of a region. Nevertheless, there are regions that continue to do without. A number of strategic businesses thus find themselves at a competitive disadvantage. This is true of certain farm producers, particularly hog producers, poultry farmers and farmers engaged in drying grain.
This Budget is therefore providing $25 million to finance the government's contribution to the extension of the gas network in order to service industrial parks in the Québec City, Abitibi, Montérégie, Estrie, Saguenay–Lac-Saint-Jean, Mauricie and Laurentides regions. This should give rise to $150 million in investments and 2 400 new jobs.
There is a missing link in our business financing package. We know that several regions of Québec depend on the creation of micro businesses to ensure their economic development.
I am therefore announcing today the creation of a loan guarantee program for small business start-ups. The government will guarantee 80% of the losses shouldered by the lender up to $100 000. This new instrument will enable these businesses to obtain more easily the capital they need to finance their equipment and operations.
In addition, we are granting the Société des établissements de plein air du Québec the money required to invest $30 million over the next three years in improvements to infrastructures providing accommodation, services and access to sites and land throughout the regions of Québec.