LIST OF RECOMMENDATIONS

2. Existing federal funding programs should be proactively targeted at rural Canada, in a manner that guarantees that rural Canadians gain access to the government's programs, services and sources of capital equivalent to that enjoyed by urban residents.

3. The federal government should realign its manpower training programs in rural regions to more effectively meet industrial needs and to capitalize on the natural resource strengths of rural Canada. Such realignment should become part of the negotiations with provinces wishing to assume responsibility for training.

4. Resource industries should be encouraged to form partnerships with regional training institutions, socioeconomically disadvantaged groups and community economic development organizations in the provision of appropriate skills development and training.

5. The federal government should enter into partnerships with provincial and municipal governments, business and regional universities and colleges in the development of high-technology, "stay at home" educational courses tailored specifically to the needs of students in rural and remote regions.

6. To correct the historical deficiency of infrastructure in rural regions, a minimum of 50% of expenditures associated with any future federal infrastructure program should be injected into rural Canada.

7. To meet the objective of providing adequate access by rural residents to the information highway, the federal government should attempt to ensure that the communications systems in rural Canada keep pace with available technology. The cost of upgrading rural telecommunications infrastructure should be borne by all subscribers, both urban and rural.

8. The federal government should provide (a) tax incentives to developers of renewable sources of energy in remote areas and (b) support for the development of rural micro-electric generating facilities through the use of tax incentives, an enhanced R&D focus and/or funding through a new rural infrastructure program.

9. The federal government should enter into new cost-shared agreements with the provinces to implement a national highways upgrade for rural areas.

10. Federal tax assistance of limited duration should be provided to businesses willing to operate short haul rail lines; serve as regional air carriers or as rural airport landlords; manage and maintain rural docks and harbours; or construct road infrastructure.

11. The federal government should review its application of cost recovery to services provided in rural Canada, to ensure that undue financial burdens are not imposed on industries operating in rural and remote communities.

12. The federal government, in partnership with natural resource companies, provincial governments, local communities and other stakeholders, should ensure that resource harvesting is undertaken in a sustainable manner, to the long-term benefit of the communities involved.

13. The Farm Credit Corporation should expand and publicize its new family farm loan product, designed to facilitate the intergenerational transfer of family farms.

14. The federal government should immediately streamline its regulatory system to facilitate increased investment by natural resource industries in rural Canada, and remove the regulatory bias that currently exists against rural development.

15. Greater federal priority should be assigned to the attainment of a just settlement of existing land claims.

16. The federal fiscal regime affecting natural resource industries should be periodically adjusted to improve the domestic investment climate. An urgent priority is the implementation of the fiscal recommendations of the National Task Force Report on Oil Sands Strategies.

17. The federal government should, while promoting more effectively existing R&D programs, enter into new partnerships with natural resource industries to develop improved resource harvesting practices. This research activity should be generally undertaken within rural locations, with the research results to be shared with firms active in these industries.

18. The federal government should (a) enter into partnerships with natural resource industries to research potential value-added opportunities; and (b) establish effective policies to encourage natural resource firms to produce value-added specialty products where market conditions warrant.

19. In order to help raise the level of both external and domestic trade in value-added products, the federal government should (a) redouble its efforts to achieve an accelerated reduction in global tariff and non-tariff barriers to trade in such products; and (b) in conjunction with the provinces, accelerate the process of eliminating interprovincial trade barriers. Unilateral action should be considered if sufficient progress in liberalizing internal trade is not achieved by year-end 1997.

20. Supporting value-added activity in rural Canada should be accorded greater priority by federal organizations such as the Farm Credit Corporation, the Business Development Bank of Canada and its regional development agencies, as well as by officials responsible for Industry Canada's Technology Fund.

21. The Canadian Tourism Commission should more actively assist the rural tourist industry by (a) allocating a specific share of its marketing partnership funding to rural tourism operators; (b) providing more information on tourism promotion possibilities to local government and community development agencies; and (c) ensuring that financial institutions have adequate knowledge of new business opportunities in the growing tourism sector.

22. The development of tourism infrastructure should be made an integral part of any new national infrastructure program.

23. Federal regional development agencies should allocate a specific portion of their financial resources to the creation of regional tourism attractions in rural Canada. Regional tourism marketing programs should be developed in partnership with the tourism industry.

24. Following further improvement in the federal government's fiscal position, consideration should be given to (a) reducing payroll taxes for businesses with annual revenue of less than $200,000; and (b) increasing to $300,000 the earnings limit for reduced corporate income tax rates for qualifying businesses.

25. Canadian chartered banks should be encouraged to introduce a system to ensure that deposits and profits obtained from rural communities are invested back into those communities in the form of increased lending.

26. To stimulate small business in rural Canada, the federal government should (a) target a portion of the assets of the Business Development Bank of Canada specifically for lending to rural Canadians; and(b) mandate its regional development agencies to place greater priority on the economic development of the rural regions within their geographical jurisdiction.

27. Industry Canada should make a long-term commitment to providing core funding to Community Futures Development Corporations. Revenues received by the Corporations should be reinvested into the communities and not used to reduce the federal government's contribution.

28. Upon completion of an evaluation of the community investment pool pilot projects, the federal government should enter into partnerships with the chartered banks to provide an expanded program specifically tailored to the needs of rural communities.

29. The federal government should respond to the training needs of rural entrepreneurs by (a) expanding the scope of the Business Development Bank of Canada's small business mentoring services in rural Canada; and (b) encouraging the Canadian chartered banks to introduce such services in their rural operations.

30. The federal government should encourage natural resource industries to maximize local procurement of required goods and services, including business services.

31. The federal government should support volunteer organizations by improving tax incentives for contributions and by providing a small tax credit for individuals volunteering their time.

32. Adequate human and financial assistance should be provided, through the federal Community Futures Program, to optimize development planning at the community and regional levels.

33. The federal government should initiate a gradual transfer, to rural areas, of offices dealing with natural resource harvesting activity.

34. The federal government, in conjunction with other levels of government, business and rural stakeholders, should actively support the creation of a national policy institute on rural issues. The institute's mandate would involve the dissemination of rural data and information on best development practices, and the provision of policy advice to the Rural Minister proposed in Recommendation 37.

35. A single-window approach should be adopted for the provision of federal services to rural residents, with government services made available either electronically or, where numbers warrant, through regional offices.

36. A new Minister of Rural Affairs should be assigned responsibility for coordinating the activities of federal departments active in rural economic development. The new Minister should be supported by a staff of adequate size, incorporating the Rural Secretariat currently situated within Agriculture and Agri-Food Canada.

37. An annual meeting of federal and provincial Ministers responsible for rural development should be held to coordinate policies across levels of government.