Economic Growth Opportunities

The Nova Scotia government is making strategic investments in three significant economic growth opportunities for the province.

Economic Development Minister Gordon Balser today announced support for government's participation in projects that include the expansion of the ICT Call Centre in Sydney; the establishment of a national head office for Sobeys in Stellarton; and the development of IMP 's CanJet operation at the Halifax International Airport.

"Each of these projects represents a strategic choice that makes sense for Nova Scotia," said Mr. Balser.

"We are supporting important infrastructure development, investing in the knowledge based economy, the globally competitive IT industry, and rural Nova Scotia. We are using reasonable investment tools Nova Scotians can afford - that ensure the return to Nova Scotians far outweighs the investment."

The announcements come in the midst of the development of a comprehensive economic growth strategy for Nova Scotia expected to be unveiled this fall. Mr. Balser said while the economic growth strategy is a work in progress, after some 85 consultation sessions across the province, it is clear government has a strategic role to play in attracting and sustaining strong and promising opportunities for Nova Scotia.

"Business and communities have been patient as our government has looked at the economic development options we can afford, considered practices in other similar jurisdictions, and most importantly talked to Nova Scotians," said Mr. Balser. "These important commitments I'm announcing today are prime examples of responsible and strategic investments for Nova Scotia ."

ICT Group A payroll rebate of $255,000 over three years has been approved to assist in the expansion of existing facilities at the ICT Call Centre in Sydney. The project will result in the hiring of an additional 85 full-time equivalent (FTE) positions, expanding employment at the facility from 150 to 235 FTEs.

Mr. Balser said the investment underscores the government's commitment to Cape Breton, and its high quality and ready workforce.

"This is a decision that makes sense for a number of reasons," said Mr. Balser. "We are investing in a strategic sector and at the same time providing economic development opportunities we know Cape Bretoners want."

The minister said the fact ICT has chosen to expand its operation in Cape Breton demonstrates its confidence in the operation and in Cape Breton.

"The Sydney contact centre is one of ICT Group's most successful operations worldwide and that's due in large part to the skills and commitment of the Cape Breton workforce," said Paul Pierce, vice president/general manager of Canadian Operations, ICT Group. "It's no wonder then the company is expanding this facility - it makes good business sense."

ICT will carry out leasehold improvements to add an additional 6,000 square feet to its existing 12,000 square foot centre.

Sobeys Inc. A $3.5 million payroll rebate program has been approved for Sobeys Inc. The funding will be paid over five years and will assist Sobeys in rationalizing and integrating various head office functions in Stellarton as a result of its acquisition of Toronto-based Oshawa Group Ltd. The program will support 238 positions already in place and requires the company to provide an additional 140 jobs, all of which must be maintained through the five years of the program.

Sobeys corporate director, public affairs, John Keizer said, "We've always believed in Nova Scotia as a solid place of business. In the new economy we can effectively operate our national office from Stellarton and do business around the world."

"There is global competition for the kind of investment Sobeys has made in Nova Scotia over the years. It is a success story we should be very proud of," said Mr. Balser.

"Sobeys is the 14th largest grocery distributor in North America and the second largest in Canada, employing thousands of Nova Scotians. Having its head office presence here clearly demonstrates Sobeys continued commitment to its home province and our ability to compete on the global business front for such corporate investments."

IMP Group International Inc. A $5.8 million interest bearing loan has been approved under the Industrial Development Act to IMP Group International Incorporated for the construction of a new aircraft hangar at the Halifax International Airport. The new hangar will be used by CanJet, the newest division of IMP Group Ltd., and Canada's new national discount carrier to be based in Halifax.

Ken Rowe, IMP Group chairman and chief executive officer, said this is the first step in establishing a national headquarters for the new airline. "I welcome this announcement from government today. This support will greatly assist CanJet in establishing a major maintenance facility in Nova Scotia for Canada's newest airline."

Mr. Balser said CanJet plays a pivotal role in securing Halifax International Airport's hub status for air travel in Atlantic Canada, and is an excellent example of the strategic infrastructure development that will serve all of Nova Scotia.

"We know that strong infrastructure is a critical success factor in economic growth," said the minister. "CanJet will bring Nova Scotia to a more competitive level on the national business scene."

CanJet is expected to provide up to 300 jobs in the first four years with a long-term potential for more than 500 permanent jobs.

"Each of these investments make sense. We committed in our platform to concentrate on infrastructure, job training and rural economic development and that's what we're doing," said Mr. Balser. "We are not giving handouts, but instead using responsible mechanisms Nova Scotia can afford. The payroll rebate isn't paid unless the companies fulfill their commitments to creating and maintaining jobs."

The minister also said lending to assist in infrastructure development is a sound decision that will benefit Nova Scotians for many years to come.

"This is a fully secured, interest bearing loan to a company with an internationally proven track record. These are sensible decisions Nova Scotians expect, and deserve."

NOTE TO EDITORS: Mr. Balser will be available for comment and interviews throughout the day. Contact Laura Lee Langley at 902- 424-0927.