June 29, 2000
Halifax, Nova Scotia

I am very pleased to be here today in the company of Atlantic Canada’s business leaders, university presidents, municipal officials and of course, the members of the Liberal Caucus from Atlantic Canada.

This is a time of great potential for Atlantic Canada. The very nature of the new economy makes knowledge, skills and innovation - not geography - the keys to opportunity and prosperity.

Atlantic Canada’s economy is changing. The traditional resource dependent economy is becoming more knowledge-intensive. And economic growth is being driven more and more by innovation, technology, tourism and exports.

Atlantic Canada has experienced solid economic growth in recent years. And there is a sense of excitement and opportunity right across the region. There is a sense that, at last, there is real opportunity for economic growth and job creation. At last, real opportunity for young people to make their future here.

But there are still major economic gaps between Atlantic Canada and the rest of the country. Atlantic Canada has lower levels of productivity and less investment in research and development. It does not export as much as other regions of Canada. And unemployment is still too high.

So despite all the good news, Atlantic Canada still faces profound economic challenges to enable it to make the transition to a more knowledge-based economy. To close its innovation, productivity and skills gap with other parts of the country.

There is a growing consensus in Atlantic Canada that a new approach to economic development is needed. An approach based on innovation, trade and investment, entrepreneurship and community economic development. This consensus began to form at the Atlantic Vision Conference in Moncton almost three years ago.

This approach has been advocated by our Atlantic Caucus. And I want to pay particular tribute to them today for the work they did in producing the landmark document called "Catching Tomorrow’s Wave". Atlantic Premiers, the Atlantic Economic Council and the Association of Atlantic Universities all endorse this approach.

Successive federal governments have made investments designed to enable Atlantic Canadians to become full partners in our national prosperity. Over time there have been significant successes. Disparities in per capita income compared to the rest of the country are much less than they used to be.

But the changing structure of both the world economy and the Canadian economy demand that we find new ways to help Atlantic Canada to grow and prosper within that new economic world.

I am here today to outline the federal role in that new approach. To tell you how our government plans to do its part to create a partnership with universities, business communities, and others to help Atlantic Canada reach its full potential for prosperity in the new economy.

Government cannot do everything. Neither can the business community or any of the other partners on their own. The role of government is to make investments in people, knowledge and infrastructure. To fuel the innovation and wealth generation needed to compete in the new economy.

Our goal is at once simple and ambitious: to help create the conditions for economic prosperity for more and better jobs. And a future where Atlantic Canadians are full participants in the new economy – right here at home.

I am announcing today the creation of a new five-year $700 million Atlantic Investment Partnership. It is a major departure from the past. It is a forward-looking modern approach to economic development in Atlantic Canada.

The Atlantic Canada Investment Partnership has four key priorities:

1. Fostering Innovation and Technology
2. Enhancing Investment and Trade in Atlantic Canada
3. Promoting Entrepreneurship
4. Fostering Rural and Community Economic Development.

Let me begin with innovation and technology.

As you know, our government has no higher priority than fostering a culture of innovation right across Canada. Indeed, we have implemented a bold national innovation strategy, making landmark investments to create the Canada Foundation for Innovation, the 21^st Century Chairs for Research Excellence, the Canadian Institutes for Health Research, and the Network of Centres of Excellence.

Under the Atlantic Strategy I am unveiling today, federal regional development efforts will have a greatly increased innovation focus. Our flagship initiative is a new Atlantic Innovation Fund with a budget of $300 million over five years. Coupled with $110 million for new innovation centres by the National Research Council in Atlantic Canada. And complemented by other national initiatives, including the new research Chairs in Atlantic universities, on-going investments by the Canada Foundation for Innovation and Genome Canada, which will establish an Atlantic Genomics Centre.

The Atlantic Innovation Fund will make strategic investments to strengthen Atlantic Canada’s innovation capacity, increase Atlantic Canada’s competitiveness and encourage the transition to a more knowledge-based economy. It will invest in universities and colleges, research institutes and in the private sector. It will operate on a Pan-Atlantic basis; it will lever funds from both private and public sources such as the Canada Foundation for Innovation. It will help the first class research infrastructure that already exists in the region, to better compete for research talent and products as well as to develop strategic alliances. The investments made by the Fund will be overseen by an Advisory Board made up of academics and business leaders.

The National Research Council will expand its existing facilities and begin development of new community innovation clusters. It will forge links among key players and build the innovation infrastructure needed to support growth in leading-edge technology sectors.

The National Research Council initiatives will help attract investments into new technology and research opportunities, support the development and retention of highly skilled workers, and foster the growth of globally competitive companies in Atlantic Canada.

The clusters will target a number of emerging fields that have been identified by local partners in consultations with the National Research Council over the past few months. Among the most likely areas: ocean engineering in Newfoundland; life sciences, including genomics and medical diagnostics in Halifax; information technologies in Cape Breton; e-commerce and information technology in New Brunswick; and new innovation and technology infrastructure development in Prince Edward Island.

Second, the Atlantic Strategy is designed to enhance foreign investment into Atlantic Canada. And to encourage increased exporting of goods, services and knowledge from the region.

I led a delegation of Atlantic Premiers and business leaders to New England in May. That was only our first step. The Partnership for Trade and Investment will be focussed on the United States market.

The cornerstone will be an "Investing in Atlantic Canada" promotional programme to target big sector firms. As well, we will support the establishment of programmes within Atlantic universities and colleges to teach people how to do trade more effectively. An export internship programme for graduates will complement this initiative. There will also be a focus on tourism development and promotion.

Third, the Atlantic Strategy creates a Partnership for Entrepreneurship and Skills Development. To ensure that Atlantic Canadians have access to the training and management skills needed to compete and succeed in the new economy. To help young men and women find meaningful career-oriented jobs that will allow them to stay here and use their skills, their energy, their creativity and their education to help build the region’s future and with it Canada’s future.

The Partnership for Entrepreneurship and Skills Development will include an enhanced focus on youth entrepreneurship. Atlantic Women’s Business Centres will improve access to capital and business support services for women entrepreneurs. Special attention will be given to enhancing the innovation capacity of small and medium sized businesses.

Fourth, the Atlantic Strategy creates a Partnership for Community Economic Development. It will mean $135 million of new investment for rural Atlantic Canada over the next five years.

Over half of Atlantic Canada’s population is based in rural areas. I know that many rural communities have gone through some pretty tough economic times over the years. In the words of Father Moses Coady who founded the Antigonish movement so many years ago, we want to enable communities all over Atlantic Canada to become masters of their own economic destiny as much as possible.

The Partnership for Community Development will provide the planning resources necessary to help communities maximize the benefits of their own economic development activities.

Ladies and Gentlemen, the new Atlantic Strategy - the Atlantic Investment Partnership - I have just announced, can only succeed if we all work together - private sector, communities, provincial and municipal governments, our universities and colleges.

Our government does not believe that market forces alone, or a policy of tax cuts alone is sufficient to meet the aspirations of Atlantic Canadians, and indeed of all Canadians. A balanced approach is essential. Of course continued tax cuts are necessary. But so is investment in crucial areas such as research and development and innovation.

With this balanced approach, together we will ensure that Atlantic Canadians take their rightful place in this new economy. And make their place right here at home. Whether here in Halifax or Harbour Grace; Moncton or Montague; Grand Falls or Georgetown; Charlottetown or Charlo.

Some 133 years ago, prosperous Atlantic Canadians joined in the great experiment that is Confederation. Over our history, Atlantic Canada has not always shared Canadian prosperity in the way that it had hoped. It is time as we enter a new century for Atlantic Canada to once again enjoy the prosperity it so deserves.

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