Province Releases Schedule to Wind-down Industrial Expansion Fund

The province outlined a schedule today, July 28, for the phasing out of the Industrial Expansion Fund, which will soon be replaced with a new modern investment fund.

The new fund, which will go into effect on April 1, 2012, will implement recommendations from the auditor general to improve transparency and accountability when the province invests in Nova Scotia businesses.

"Good businesses with good workers, good leaders and good ideas are worth investing in," said Premier Darrell Dexter. "To do that, the province needs a modern investment fund that encourages and supports businesses and communities to be more innovative, productive and competitive in the global marketplace.

"That's what jobsHere, our plan to grow the economy, is all about. This new fund will work hand-in-hand with that plan to help strengthen and grow Nova Scotia's economy."

Premier Dexter announced plans to scrap the almost 60-year-old Industrial Expansion Fund on May 18, during the spring legislative session. At that time the province also committed to release a schedule to wind it down the by July 31.

The schedule is as follows:

• May - September: Review key economic development legislation across provinces and design new fund
• September: Get feedback from interested parties on the new fund and framework for accountability and governance
• September - December: Pilot new processes, as recommended by the auditor general
• October - November: Propose legislative changes in the House of Assembly
• January - March 2012: Transition to new fund
• January: New Cabinet committee begins reviewing proposed investments
• April 1, 2012: New fund in effect
• 2013: Evaluation of new fund for continuous improvement

"We appreciate the advice and recommendations from the Auditor General," said Percy Paris, Minister of Economic and Rural Development and Tourism. "We are committed to putting in practice the recommendations and strengthening program and financial controls through better documentation of processes."

The department is already making progress on the implementation of the Auditor General's recommendations, including:

• Reorganizing the Investment Division, adding resources, and documenting all investment procedures
• Strengthening the processes and reporting of existing files, including tracking and managing existing loans and incentives
• Consolidating and processing all documentation in client files
• Developing a client file checklist
• Formalizing an application process that is based on best practices and tailoring it to the type of potential transactions.

Many of the new processes and procedures will be piloted in the fall and adjustments will be made, as needed.

During this transition, investment proposals will continue to be considered and processed. When the new fund is in place all existing investment agreements will be honoured, and new investments will follow the new process and governance structure.