A report in today's Telegram quoting leaked internal government documents illustrates that the elimination of funding for the Community Economic Development Program has precipitated a crisis in rural Newfoundland and Labrador. Recommendations from senior officials are warning government now that if no new funding is put forward, many of the non-profit groups and development initiatives in rural Newfoundland and Labrador will cease to exist.

"This Premier stated that he had a plan to revitalize rural Newfoundland and Labrador," said Mr. Grimes. "Now, projects are being cancelled and community organizations are being forced to close up. This just proves that this government's revitalization plan has more resemblance to a resettlement plan.

"Not-for-profit groups, municipalities, Regional Economic Development Boards, Rural Development Associations, tourism associations and others have all been impacted by this hidden budget decision. This program allowed these organizations to generate employment and economic benefits for rural Newfoundland and Labrador. This was the only provincial program for community based groups and now government has cut this funding in another of their ill conceived plans.

"The creation of a new economic development fund would give the provincial government credibility in dealing with the federal government and other groups as a meaningful participant in rural development. This would truly show that they are willing to invest in developing the province’s rural economy.

"The Premier just finished another cabinet meeting in which he supposedly discussed his plans for rural development. We have yet to see any concrete announcements. When will the cuts stop and the investments begin? If the Premier wants to grow the economy, he should realize that investing in programs that will encourage businesses to remain in the province and expand the potential new opportunities are essential. Government must maintain and strengthen programs that offer the necessary skills and training to people in rural areas."