Performance Realized in Economic Development

ECONOMIC DEVELOPMENT--Performance Realized in Economic Development

Seven companies have created hundreds of jobs, mostly in rural Nova Scotia, through loan agreements that are being forgiven by the province this year.

Economic Development Minister Gordon Balser today said the $12 million in loans is being forgiven because the companies involved have all fulfilled specific performance targets to create jobs and economic growth. The agreements were struck between 1993 and 1999.

“Because of these investments, literally hundreds of people are working in rural communities throughout Nova Scotia,” said Mr. Balser. “This is exactly the impact these agreements were designed to have.”

The details include:

• Air Nova Inc.: $250,000, based on a 1993 agreement that the company meet or exceed an employment target of 427 full-time equivalent employees.There are currently up to 700 people on staff.

• Crossley Carpets: $3,025,000, based on a 1999 agreement which forgives an amount based on total employment hours worked at the company.

• Michelin Canada Inc.: $7,605,000, based on the company’s capital investment in its Nova Scotia facilities, through 1997 and 1998 agreements. The company is forgiven $1 for every $6 invested. Altogether Michelin has invested some $300 million in Nova Scotia.

• Phonettix (Minacs World Wide): $492,515, based on a 1997 agreement that the company reach a 2000 employment target of 470 full-time equivalent employees. There are currently 641 full-time equivalent employees.

• Trenton Works Inc.: $10,000 forgiven for obligations met in environmental clean-up on the Trenton Works site, through an agreement reached in 1995.

• Polysteel Atlantic: $128,000, based on a 1997 agreement which forgives $5,000 per full-time equivalent employee. There are currently 25 employees on staff.

• Sable Fish Packers: $500,000, forgiven based on a 1998 agreement linked to company production performance.

The companies produce an economic impact of more than $25 million per year to the Nova Scotia economy, not including the spin-off activities. “These companies are making an important contribution to their communities and to the provincial economy,” said Mr. Balser.