Funding Announced Under Community Development Trust

Nova Scotia will invest $34.9 million from the new national Community Development Trust to support communities facing economic hardship.

The announcement was made today, March 28, by Premier Rodney MacDonald and Peter MacKay, Minister of the Atlantic Canada Opportunities Agency.

The trust, announced earlier this year, is worth $1 billion over three years. It will enable provinces and territories to help communities and workers affected by economic difficulties stemming from instability in the global financial and commodities markets.

"Sustainable communities are crucial to the future strength and prosperity of the province and this fund will support community development and diversification," said Mr. MacDonald. "We will use funding from the trust to help communities and workers who are hard hit by global competition, weakening economies and a strong Canadian dollar."

"This significant contribution underlines the government of Canada's determination to assist communities and workers," said Mr. MacKay. "The Community Development Trust builds on a host of other initiatives undertaken by the government to protect Canadians from turbulence in international markets, and helps us build a stronger and more prosperous future for Nova Scotia and Canada."

The province will use funding from the trust to enhance sustainable prosperity, especially in the areas of:

• economic and trade diversification
• improved productivity, innovation and training
• preparing for and developing community transition plans
• helping workers who are facing adjustment challenges

Funding from the Community Development Trust will be used in a number of ways in Nova Scotia. Forestry, fishing, manufacturing and small business are four sectors that will benefit from the initiative. The trust will be used to help communities such as Canso and Trenton that have been hard hit by the loss of major industries.

The province has agreed to respect Canada's obligations under the North American Free Trade Agreement, the Canada-United States Softwood Lumber Agreement, and the World Trade Organization in administering its portion of the trust funding.