Newfoundland and Labrador
The Newfoundland government has also been proactive in implementing a poverty reduction strategy. In 2006, after extensive community consultation, the Progressive Conservative Government’s Poverty Reduction Strategy, Reducing Poverty: An Action Plan for Newfoundland and Labrador, was passed unanimously, making Newfoundland and Labrador the second province in Canada to adopt a poverty reduction strategy.
The Newfoundland case is particularly interesting from a BC perspective because BC and Newfoundland shared the unwelcome distinction of having the highest rates in Canada until the government of Newfoundland and Labrador chose to address it unlike the BC government.
The Plan
The central goal of the Government of Newfoundland and Labrador’s commitment to poverty reduction is simple: to transform Newfoundland and Labrador from the Canadian province with the most poverty to the one with the least by 2014. Five specific goals were outlined in the 2006 Action Plan:
- Improve access to services for people with low income
- Develop a stronger social safety net?
- Improve earned incomes?
- Increase emphasis on the need for early childhood development
- Work toward having a better educated population
Progress towards a stronger social safety net includes increased support for persons with disabilities, enhanced accessibility to the justice system, and further development of social housing. Newfoundland now provides among the highest social assistance benefit rates in the country and, in 2007, became the first province in Canada to index welfare rates to inflation.
The province has demonstrated its commitment to reducing poverty by making significant investments in its poverty reduction strategy. Altogether, over 100 million was invested between 2006 and 2008.
It Works!
The incidence of low-income in the province decreased from 12% in 2004 to 7% in 2009, the latest date for which data are available. The depth of poverty, or average low-income gap, decreased from $5,500 in 2003 to $4,900 in 2007 and is now the lowest in the country.
Newfoundland is now at the forefront for poverty reduction progress in Canada. Since implementing the strategy in 2006, Newfoundland has gone from being one of the provinces with the highest levels of poverty to one of those with the least.