Canada's Government Helps Bring Jobs to Atlantic Canada

GEORGETOWN, Prince Edward Island, September 5, 2008 — The Honourable Jim Prentice, Minister of Industry, today announced three federal contribution agreements for shipbuilding projects that will bring substantial jobs to Atlantic Canada.

Through the Structured Financing Facility (SFF), the Government of Canada is contributing more than $12 million in interest rate support for the construction of seven tugs. Three of them will be owned by Groupe Océan and four will be managed by Nordane Shipping.

These tugs will be built at East Isle Shipyards in Georgetown, P.E.I. The projects are expected to create 110 jobs in direct work and another 100 in subcontracts over the next three years. Overall, the projects are expected to create more than 600 person-years of work in Atlantic Canada.

"Our government recognizes the challenges being faced by the shipbuilding industry and is taking real action," said Minister Prentice. "With programs like this, our government is taking action in helping to create jobs and support the development of markets where Canada has a knowledge advantage. We have also taken concrete steps by reducing corporate taxes and introducing the accelerated capital cost allowance on capital investments."

"This is an important day for us here in Atlantic Canada," said the Honourable Peter MacKay, Minister of National Defence and Minister of Atlantic Canada Opportunities Agency. "As a result of these projects, East Isle will be well positioned to retain many of its skilled workers and further develop its capabilities for future projects."

These projects are part of the renewed SFF, in which the government is investing $50 million over the next three years. As a result of these projects, the East Isle Shipyard will be able to retain its skilled workers and further develop shipyard capabilities through training of both its skilled and new workers. The shipyard is actively engaged with Holland College to provide training for welders, with a unique focus on the welding skills needed for shipbuilding.

"We appreciate the leadership the Government of Canada has shown in keeping jobs at home on the Island," said Jim Irving, President of J.D. Irving Limited. "East Isle Shipyard continues to build a strong reputation for world class tugs that are presently serving in the North Sea, the Panama Canal and the Dominican Republic, as well as in Canada. Construction of these new tugs will employ more than 100 people for almost three years, providing $4 million a year in payroll into the local economy. The project will also result in the purchase of over $3 million of local goods and services from approximately 30 Island businesses."

"The men and women of East Isle Shipyard have proven time and again their skill and commitment to deliver world-class tugs to customers around the globe," said Frank Sweeney, President of Local 1934 of the International Association of Machinist and Aerospace Workers. "Our members are reassured that the federal government believes in the importance of a competitive shipyard on Prince Edward Island. Today's announcement is good news for more than 100 workers who will build seven new tugs through until 2011."

The objective of the SFF is to help ensure that Canadian shipyards are capable of meeting federal marine procurement and maintenance requirements. Promoting Canada's shipbuilding industry will support Canada's Coast Guard and naval fleet renewal plans — with ships that will be built in Canada by Canadian shipyards.

A complete program description and eligibility criteria can be found on the Structured Financing Facility website.

For more information (media only), please contact:

Bill Rodgers
Director of Communications
Office of the Honourable Jim Prentice
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502