June 29, 2000

The Prime Minister today announced a fresh approach to regional economic development in Atlantic Canada: The Atlantic Investment Partnership (AIP).

The AIP is the outcome in large part of the creative team work of the Atlantic Liberal Caucus, whose landmark report, Atlantic Canada:Catching Tomorrow’s Wave, found a broad regional consensus that the federal government had to find new ways to assist the region find its place in the global knowledge-based economy.

It is a bold plan designed to ensure not only that Atlantic Canadians can take their rightful place in the new economy, but that they can make their place at home - in Atlantic Canada.

The $700-million, five-year federal initiative, is a balanced mix of strategic investments and initiatives designed to build new partnerships that will strengthen the capacity of all Atlantic Canadians to innovate and compete in the new economy.

Its focus will be building on existing and emerging Atlantic strengths and helping to close the innovation, export, entrepreneurship and skills gaps that must be closed if Atlantic Canada is to realize its full economic potential.

Its method will be by way of partnerships: partnerships with governments, communities, businesses, universities, colleges and research institutes.

The AIP will help close the innovation gap through a $300 million Atlantic Investment Fund.

The Fund will make strategic investments to strengthen innovation capacity, increase the region’s competitiveness and encourage the region’s transition to a more knowledge-based economy.

The Fund will invest in universities and colleges, research labs and in the private sector in an open and competitive basis. Investments will facilitate strategic alliances that bring together research talent, new ideas and entrepreneurship.

Investments will be overseen by an Advisory Board made up of academics and business leaders in the R&D and high-technology fields.

The Fund will also assist the region take better advantage of our national innovation programs, such as: the Canada Foundation of Innovation, the 21^st Century Chairs for Research Excellence and the Canadian Institutes for Health Research.

The National Research Council will also invest $110 million for the expansion of its facilities in Atlantic Canada and to help build globally competitive businesses in communities right across the region.

The AIP will help close the export gap through a new Partnership for Trade and Investment. It will enhance the region’s export capacity, with a special focus on its largest trading partner: the United States.

The cornerstone of this renewed effort will be an "Investing in Atlantic Canada" program designed to feature the region as a prime location for American investment.

The AIP will help close the entrepreneurship gap through our Partnership for Entrepreneurship and Skills Development - whose key focus will be enhancing the innovation capacity of small and medium sized business.

The AIP help close the technological and economic gaps between rural and urban centres in the region. Our Partnership for Community Economic Development will see up to $135 million invested to give rural communities the tools and opportunities they need to become full partners in the new economy.