Government Announces Investments in Businesses, Communities

NOTE: A social media release, with video, image and sound files, is available at www.gov.ns.ca/news/smr/20090217002ERD.asp

The province is more than doubling its commitment to economic development through the Industrial Expansion Fund.

Premier Rodney MacDonald announced today, Feb. 17, an increase of $175 million to the fund for this fiscal year.

"We are making more money available to support businesses that are ready to expand, invest in new technology and to improve productivity and competitiveness," said Premier MacDonald. "Most importantly, we're helping these companies maintain current jobs and create new ones.

"This is the first of a number of measures the government will be taking over the next few weeks to help Nova Scotians weather these turbulent times."

The Industrial Expansion Fund is one of many important ways that Nova Scotia increases and supports employment in rural Nova Scotia, while generating tax revenues and exports.

"Given the economic challenges that our world is faced with, it is especially important that government continues to support Nova Scotia businesses and communities, while nurturing our business climate," said Minister of Economic and Rural Development Murray Scott.

In response to the current economic conditions, Mr. Scott announced the following investments:

• Ledwidge Lumber Company: $1.2 million bridge loan for land being acquired by the Crown

• Apple Valley Foods: $1.5 million loan guarantee to support the company with necessary resources to ensure future growth

• LED Roadway Lighting: $1 million interest-bearing loan to introduce energy efficient roadway lighting to international markets

• NovaScotian Crystal: $300,000 loan guarantee to restructure its operations to better meet market demands for its glassware.

Established in 1943, Ledwidge Lumber Company in Enfield is a family-owned business and one of the largest sawmills in Nova Scotia.

"We really appreciate the support of government," said company president, Douglas Ledwidge. "To us it means we can continue to employ our staff and serve our customers and partners as we go through these tough economic times."

LED Roadway Lighting, based in Halifax, is an innovative Nova Scotia company that designs, develops, manufactures and markets energy efficient roadway lighting. It is introducing its product to international markets.

"This support is enabling us to further invest in research and development staff, and explore new technologies that haven't been available in street lighting before," said Ken Cartmill, LED Roadway's business development officer.

Apple Valley Foods in Kentville, opened in 2000 and produces more than 60,000 pies a day for Canadian and American markets. It purchases close to $1 million in apples each year from apple growers in the Annapolis Valley.

"This investment allows us to further grow the business where, otherwise, credit is so tight that we wouldn't be able to," said Apple Valley Foods president, Jeff Sarsfield.

NovaScotian Crystal in Halifax is the only crystal manufacturer in Canada. It is a unique Nova Scotia company known at home and around the world for its skilled workmanship and designs.

"This government support will give us the stability we need while we work our way through our adjustment and continue to make world-class crystal here in Halifax," said chief executive officer of NovaScotian Crystal, Rod McCulloch.

During 2007-2008, the Industrial Expansion Fund authorized nearly $60 million for 26 companies in various sectors. Over a six-year period, ending in March 2007, an independent study indicated the fund showed a return of $1.89 for every dollar invested from the fund and it created or maintained an estimated 11,000 full-time jobs.

The Industrial Expansion Fund is key to helping industries involved in innovative research and technology, while contributing to a prosperous and sustainable business climate for Nova Scotia. The fund has considerable flexibility in the amount and type of funding it can provide.