NORTHERN DEVELOPMENT FUND REPORTS RECORD YEAR

Released on June 12, 1998

Northern Affairs Minister Keith Goulet said today that 1997-98 was a

record year for the Northern Development Fund (NDF), with financial

activity totalling more than $3 million in loans, grants and support

for northern businesses. For the current 1998-99 year, the Northern

Development Fund budget has been doubled to a total of $6 million.



"I am very pleased with the way the Northern Development Fund has been

able to stimulate business development in the north and encourage

economic diversification and job creation," Goulet said. "Northern

entrepreneurs, the Northern Review Board which oversees the Fund, and

the staff of Northern Affairs are to be commended for a very good

year."



Established in 1995, the Fund provides financial and business services

to northern entrepreneurs, businesses, co-operatives and economic

development organizations.



During 1997-98, 42 commercial loans valued at a total of $2.25 million

were approved, compared with $1.3 million in 1996-97. These loans

assisted northern businesses in a broad range of sectors including

construction, mining, forestry, transportation, hospitality, tourism,

retail, and other services. The loans helped create an estimated 270

new jobs and maintain another 250.



Fifty-six primary production loans valued at $246,540 were

approved to assist trappers, commercial fishermen and wild rice

growers, compared with a 1996-97 total of $157,000. These loans

helped create 17 new jobs and maintain 123 others.



During 1997-98 the NDF also provided 33 grants to assist

businesses with marketing, research, and planning, totalling

$232,500, and 10 grants to economic development agencies to

support workshops in organizational and business skills

development, totalling $18,420.



Another activity of the Fund is to provide cost-shared funding

and professional assistance and training to Community-based

Regional Economic Development Organizations (CREDOs), which plan

and implement economic development at the regional level. For

1997-98, grants to CREDOs totalled $273,570.



Six CREDOs were operational through 1997-98, including Dazi

Regional Development Corporation (Buffalo Narrows region), Three

Rivers CREDO Board (Ile a la Crosse region), Clearwater Regional

Development Corporation (La Loche region), La Ronge/Air Ronge

Community Development Corporation, Creighton-Denare Beach

Regional Development Corporation, and Northeast Economic

Development Association (Sandy Bay region). A seventh CREDO, the

Athabasca Economic Development and Training Corporation, will be

formally established this month.



"The significant increase to the Northern Development Fund's

budget for 1998-99 is permitting the Office of Northern Affairs,

in consultation with the Northern Review Board, to determine

options for providing greater support for CREDOs, strategic

research, and skill development, as well as additional loans for

business development," Goulet said.



"During the coming year, the NDF will provide vital support for

the government's Northern Strategy goal of creating more jobs and

business opportunities for northern people," Goulet said.





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For more information, contact:



Bruce Simms, Director of Financial Services

Economic Development Division

Saskatchewan Northern Affairs

La Ronge

Phone: (306) 425-4284