Budget Backgrounder: Giving a Boost to Rural Business

The Nova Scotia government today announced a number of measures designed to boost business and opportunity in rural Nova Scotia. Finance Minister Don Downe outlined several new programs as part of the 1999-2000 budget, which also provides continued support to some existing programs for rural business.

ENTERPRISE ZONES
A key new measure announced today is the creation of Enterprise Zones for business in Nova Scotia. Enterprise Zones offer enhanced incentives to attract and support business in communities across Nova Scotia.

"We are on the threshold of great things in Nova Scotia,"said Mr. Downe. "Our economic performance is strong, but we must do more to spread the opportunities for success across the province."

Tax and investment incentives offered throughout the province are enhanced in areas outside the urban provincial capital. This includes investment incentives for labour-sponsored venture capital corporations, an increase in the equity tax credit rate, a two-year extension of the general three-year new small business tax holiday, and an increase in the film industry tax credit to 37.5 per cent from 32.5 per cent for eligible labour expenditures.

"These incentives will attract and support business all across Nova Scotia," said Mr. Downe. "It is a major part of our commitment to keep Nova Scotia's economy growing."

SILVICULTURE
The province is targeting $4 million to silviculture as part of government's continuing support of the forestry sector. The funding will support projects on private woodlots, either through grants to small woodlot owners, or funding partnerships between the Department of Natural Resources, forestry companies and woodlot operators.

Silviculture enhances the growth, productivity and quality of our forests through proper harvesting methods, reforestation and thinning, and is an important element in sustaining forestry as an industry and promoting the healthy growth of Nova Scotia forests.

FIREFIGHTERS' VEHICLE REGISTRATION
Effective July 1, 1999, volunteer firefighters can apply for new vehicle plates at no charge as their registrations expire. Each volunteer firefighter should receive the benefit of one free vehicle registration every two years.

This initiative recognizes the important role of volunteer firefighters in rural Nova Scotia. It is available to those who have served in a volunteer fire department for six months and intend to continue doing so.

"These men and women put themselves in harm's way to protect their friends and neighbours," said Mr. Downe. "We want to support them and recognize their generosity to their communities."

AGRICULTURAL INCOME DISASTER ASSISTANCE
The Agricultural Income Disaster Assistance program provides a minimum of $7.5 million in assistance to Nova Scotia farmers. The program is a federal-provincial agreement providing farmers with an estimated $4.5 million in federal funds and an estimated $3 million from the province. The recently signed agreement also gives the province money back (in the form of credits) for provincial programs already in place for Nova Scotia farmers.

In recent years, the provincial government has introduced assistance initiatives for Nova Scotian farmers totalling some $32 million to deal with low farm incomes. This includes a $20-million five-year weather-related relief package, a $3.2-million weather-related loan loss program, $7.7 million to support the pork industry during one of the worst downturns in world hog prices in years, and a $600,000 beef-performance program.

FISHERIES RETIREMENT PROGRAM
The province has committed $5 million to the Fisheries Early Retirement program. It is a federal-provincial benefits option being offered to people who fish, work in fish plants or crew aboard trawlers. Clients who were 55 years of age or older by Dec. 31, 1998, and who were eligible for the Atlantic Groundfish Strategy on Jan. 1, 1998, can apply for the retirement benefits. Potential candidates are notified by mail with an information package and application details. Benefits have been available in Nova Scotia since April 1, 1999.