Rates on Fishery Industry Loans Reduced

There is good news today for those in and associated with the fishing industry as Nova Scotia's Fisheries and Aquaculture Loan Board announced a reduction in its lending rate.

The rate will now be 1.75 percentage points above the provincial rate. This means that for loans above $200,000, the lending rate is reduced to eight per cent, down from 11 per cent. Loans below that amount will remain at close to eight per cent.

The move brings the industry in line with rates provided to other resource sectors. It is expected to stimulate growth, primarily in the areas of aquaculture and boatbuilding.

"Entrepreneurs need an incentive to invest," said Fisheries and Aquaculture Minister Keith Colwell. "This move puts the industry in an even better position to grow over the long term."

Aquaculturalists will be able to improve their position with better financing available for equipment purchases such as fish cages, nets and seed stock. For an industry in its startup stage, this is good news for coastal communities.

"This is a young sector," said Mr. Colwell. "It needs time to develop its full potential and this reduction will allow for just that."

The boatbuilding industry in Nova Scotia currently employs about 450 people directly and 1,500 indirectly. The rate reduction complements the strategy of helping prepare Nova Scotian boatbuilders for export markets. Also, spinoff jobs in electronics, engine supply, and fishing equipment are expected to grow.

"It will definitely help," said Arthur Theriault, vice-president of finance for boatbuilder A.F. Theriault and Son Ltd. out of Digby County. "This is going to have a big impact, especially now that we can finance boats over 15 years instead of 12."