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Province spending $1M on economic diversification report from New York-based firm

The provincial government of Newfoundland and Labrador is looking to diversify its economy, and has hired some outside help to get them there.

The province is looking to diversify the economy

Finance Minister Tom Osborne says McKinsey & Company has helped other governments diversify their economies and will help Newfoundland and Labrador. (Gary Locke/CBC)

The Newfoundland and Labrador government wants to diversify the provincial economy — and they're spending $1 million on some outside help.

The province is ponying up the money to McKinsey & Company, a New York City-based management-consulting firm with offices in Canada, as part of its Way Forward strategyaccording to Finance Minister Tom Osborne. 

"Government has looked at economic diversification and growth in areas like aquaculture, agriculture, tourism, the oil and gas sector and the mining sector," Osborne said. 

"We've been working with industry stakeholders in those areas to grow those areas. We've partnered with a global consulting company to look for other opportunities."

Osborne added the province and McKinsey will look into opportunities in the marine technology sector, aerospace technology as well.

McKinsey & Company will help find opportunities in the oil and gas industry, as well as several other sectors in the provinical economy, according to Osborne. (CBC)

"The primary focus here is diversifying the economy, creating jobs, stabilizing the population and creating a Newfoundland and Labrador as a good place to live and raise a family, and creating the employment to allow that to happen," Osborne said. 

Report coming

The contract with McKinsey was signed Thursday, with the end of the calendar year being the deadline to file a report with the provincial government.

"Part of that will fold into Budget 2019 and obviously we'll continue to work on it over the months, and hopefully the years ahead," said Osborne. 

"McKinsey are a global company. They're in the business of doing this. They've worked with governments around the world in diversifying their economies, creating jobs. We've got one of the best companies in the world working with us to do this."

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