Newfoundland and Labrador Product Development Strategy

- 223 -The challenge here is the need to pursue and work to maintain support from all of these sourceson a continuing basis. This will require the agency to have its own fundraising and sponsorliaison arm, which itself will need to be funded.A Foundation to Support the Agency?In the longer term there is also the possibility of establishing a foundation associated with theagency and mobilizing an effort to pursue other sources of financial support through fundraisingprograms, targeting philanthropic organizations and individuals, corporations, wealthyindividuals and citizens generally.Such a foundation would potentially undertake to build an endowment fund, with the earningsbeing used to provide operational support to not-for-profit natural and cultural tourism heritageprograms. The appeal to donors would be the opportunity to do something of lasting value inhelping the province rejuvenate its economy through strategic tourism investments.One suggestion was for the federal government to be asked to dedicate to such a foundation thedividends it receives annually from its original investment in Hibernia. We understand this sumin the order of $15 million annually. Such a legacy would virtually ensure the success andsustainability of both the agency and the foundation.Why is This Agency Needed?Having an agency play this role is very important, for these reasons:o Generally it has all the flexibility of a corporate entity - it's a legal entity separate fromgovernment - can contract outside services, can enter into partnerships and joint ventures,can buy and sell products and services, etc. This will be particularly useful in calling fordevelopment proposals, deal-brokering, negotiating and entering into agreements withoutministerial approval, and so on.o It can receive and re-invest revenues directly without them flowing to the government’sgeneral revenue and budgeting system. As a consequence, it can operate enterprises on anet funding basis, in other words, fund their operations through revenues and only rely ongovernment funding allocations to cover any shortfall.o It can receive funding from federal agencieso It can partner with, co-fund with and generally do business directly with ACOAo It can do business with companies and other organizations without ministerialapproval and without committing the government (within its mandate)o It could do fundraising, or form a foundation to do it for themo It can have a board of directors, allowing non-provincial government people to itsleadership and decision-making.o It is more credible to private sector because of de-politicization of thebusiness model as compared to a line departmento It permits more delegation of authority in decision-making - protection of theminister and government is less of an issueTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study