Funding Agreement for Boat Building Extended to 2004

AGRICULTURE/FISHERIES--Funding Agreement for Boat Building Extended to 2004

A funding agreement to support development, promotion and training for Nova Scotia's $80-million boat-building industry has been extended until 2004. Finance Minister Neil LeBlanc announced the extension at the Nova Scotia Boatbuilders Association annual general meeting today, June 7.

With the assistance of the Office of Economic Development and the Atlantic Canada Opportunities Agency (ACOA), an agreement for revitalizing the boatbuilders industry, which was be ended in November, has been extended until March 31, 2004.

"Nova Scotia's boat-building industry has been around for generations," said Mr. LeBlanc. "The industry is thriving today because of quality craftsmanship, innovation and the successful search for new markets."

He shared the news at the industry meeting on behalf of Ernest Fage, Minister of the Department of Agriculture and Fisheries, and Gordon Balser, Minister of the Office of Economic Development.

"Over the past four years the Canada/Nova Scotia Economic Diversification Agreement has helped build this industry from a workforce of about 1,000 to over 1,500 full-time workers," says Mr. Fage, whose department signed the extension. "These skilled jobs, many in coastal Nova Scotia, have a bright future in the boat-building sector."

ACOA and Economic Development cost-share funding under the Economic Diversification Agreement. The Nova Scotia Boatbuilders Association is also a major partner in this program.

In 1998, the $2.7-million agreement identified six categories of developing the industry: education and skills training, market research, research and development engineering, quality assurance production, marketing and promotion, and communication and co- operation.

Within the framework of the agreement, 55 projects have been approved to date. The extension for the agreement allows remaining funds to continue to be applied to these priority areas in a manageable way.

"This is a competitive market, and we have the world-renowned craftsmen, the entrepreneurs and the tools to build our industry into a world-class business," said Mr. Balser. "Capital investments will help facilitate the growth of a sustainable, economically strong rural-based boat-building industry."

Vessel sales have surpassed $80 million this year, with about 50 per cent going to export markets. Boatbuilders have diversified into sport fishing, picnic boats, yachts, sailing, rigid inflatables, aquaculture and a new generation of commercial fishing vessels. Many builders are booked to capacity and need additional workers to meet demand.

"Training and professional development opportunities are essential elements to compete on an international level," said Tim Edwards, executive director with the Nova Scotia Boatbuilders Association. "Several initiatives to train new tradespeople and improve the skills of the present workforce are available through our organization and at the community college level."

Mr. Edward said that the extension of the agreement to 2004 will significantly benefit the Nova Scotia industry.

Canmac Economics' recent study of Nova Scotia's boat-building industry called it a "star performer." While the growth of the national industry is about 12.5 per cent, the provincial rate is 36 per cent.