Premier Announces Creation of New Economic Development Fund

Premier Darrell Dexter announced the creation of a new, modern economic development fund, today, May 18, to replace the almost 60-year-old Industrial Expansion Fund.

"I've always believed that there are tremendous opportunities for growth in this province and these plans will ensure that Nova Scotians have access to good jobs that will allow them to stay and build a life here," said Premier Dexter.

The new fund will have:

• A legislated framework for accountability and governance, including a new Cabinet committee with statutory duties and a shared advisory board for Nova Scotia Business Inc. and the Department of Economic and Rural Development and Tourism.
• Documented policies and processes and on-going monitoring of investments.
• A formalized application process to ensure all Nova Scotia companies seeking support are consistently assessed.

"We inherited a 60-year-old investment program," said Premier Dexter. "During the past two years, we have made changes. However, it is now clear that a 1950s model for economic development cannot be adapted to meet today's needs."

By July 31, the province will announce a schedule to wind down the IEF by March 31, 2012. During the transition to the new fund, investment proposals will be considered on their merits.

"I appreciate the advice and comments of the Auditor General. There are weaknesses in the Industrial Expansion Fund processes," said Percy Paris, Minister of Economic and Rural Development and Tourism. "The new fund will have controls equivalent to Nova Scotia Business Inc., and other Economic and Rural Development programs."

The government will complete a review of all the key economic development legislation to prepare the new law for introduction in the fall.