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BUDGET INCREASES INVESTMENT IN COMMUNITY ECONOMIC DEVELOPMENT

Released on March 19, 1998

Economic and Co-operative Development Minister Janice MacKinnon said

today that an extra $2.2 million for community economic development in

the 1998-99 provincial budget will strengthen job creation.



"Through increased assistance, we are working with communities,

businesses and co-operatives to create jobs for people in

Saskatchewan," MacKinnon said. "We're investing in organizations at

the community level, giving local people the resources they need for

locally driven approaches to economic growth."



The new investments include:



$1.955 million in additional support to Regional Economic

Development Authorities (REDAs) for capital projects, training,

youth employment opportunities, expansion of information-sharing

networks, and creation of rural satellite offices of the

Saskatoon-based Canada-Saskatchewan Business Service Center;



$180,000 to help community groups form inner-city neighbourhood

development organizations to promote economic growth; and



$100,000 in additional support to new and existing co-operatives

for feasibility studies, marketing and business planning.



MacKinnon noted 24 REDAs have already been established, allowing

communities, organizations and co-operatives to co-ordinate efforts to

promote economic development. REDAs receive matching government

funding for their annual operations.



"REDAs have been very successful in generating economic growth in

Saskatchewan communities," she said. "This new funding

represents a 120 per cent increase over our REDA investment last

year. The funding will help REDAs, especially in rural

communities, further develop services for small business,

one-stop business service centers and regional facilities that

promote economic expansion."



MacKinnon said the neighbourhood development organization

initiative represents a new approach to problems faced in

Saskatchewan's inner city neighbourhoods. Local community

organizations will work with government to co-ordinate

organizational development, education and training and local

business projects in these neighbourhoods. Neighbourhood

development projects will run in Saskatoon, Prince Albert and

Regina in 1998-99.



"An integrated approach will better provide inner-city residents

with the tools they need to fully participate in our growing

economy," MacKinnon said. "We want to ensure the broadest

possible access to the new job and educational opportunities now

available."



The minister said expanded funding for co-operatives is part of

the government's ongoing commitment to the important co-operative

sector. "So much of what we enjoy in Saskatchewan today has been

shaped by co-operatives," she said. "The co-operative structure

is a natural model for community economic development, and as

such ensures that co-operatives will continue to shape

Saskatchewan for many years to come."



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For more information contact:



Debbie Wilkie

Economic and Co-operative Development

Regina Phone: (306)787-1691

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