The federal government has served notice that it is planning to withdraw a significant portion of funding to the provinces and territories through Labour Market Development Agreements, and will implement the program itself from here on in.

According to Minister of Immigration, Population Growth and Skills, Gerry Byrne, the funding to Newfoundland and Labrador will be cut by at least $16.5 million.

He says while the formal decision will likely be announced in the federal budget, provinces are already bracing for the impact.

“Ottawa is saying that we know best” says Byrne, and they would like to allocate the funding to organizations in the provinces and territories. “That kind of sounds a little counter intuitive” says Byrne, “because I don’t know exactly how Ottawa can know best what’s going on in labour markets in Carbonear or Corner Brook, but apparently they think they can.”