Canada's Government and Prince Edward Island Sign New Training and Skills Development Agreements to Prepare Residents

CHARLOTTETOWN, PRINCE EDWARD ISLAND, Sep 05 (MARKET
WIRE) --
Prince Edward Island workers will be better prepared to be part of the
growing economy, thanks to two new federal-provincial agreements
announced today by the Honourable Jim Prentice, Minister of Industry, on
behalf of the Honourable Monte Solberg, Minister of Human Resources and
Social Development, and the Honourable Robert Ghiz, Premier of Prince
Edward Island.

The first agreement, a new Labour Market Development Agreement (LMDA),
will give Prince Edward Island the responsibility for delivering nearly
$27 million annually in Employment Insurance-funded Employment Benefits
and Support Measures. This will provide the Province with the flexibility
to focus job training programs and employment supports on the local and
regional needs of both employers and clients. The Province will assume
this responsibility as of October 1, 2009.

The second agreement, a new Labour Market Agreement (LMA), will inject
more than $12 million over the next six years into Prince Edward Island
labour market programs and will provide an important resource that
supports labour market training in the province. In an increasingly tight
and competitive labour market, Prince Edward Island recognizes that
economic growth will depend to a large extent on its ability to match
labour force development with resources, thus ensuring employers have
access to an educated, skilled and adaptable work force.

The funding will be used to enhance labour market participation of
individuals by helping them to prepare for entering into, returning to or
maintaining skills for employment. This agreement will provide employment
and training programs for Islanders who are unemployed or underemployed.

"Through these new agreements Canada's Government will be helping up to
5,800 people in Prince Edward Island get the training and skills
development they need, while also creating a pool of skilled workers,"
said Minister Prentice. "With today's announcement, we are one step
closer to ensuring that our long-term economic plan, Advantage Canada,
will continue to pay dividends for families in Prince Edward Island."

Premier Ghiz said these new agreements allow the Province to match its
skills development programs with its economic agenda.

"Our government has a very clearly defined economic strategy, and the
LMDA gives government the flexibility it needs to offer training and
employment in the key sectors we have identified for growth," said
Premier Ghiz. "This agreement will help expand and grow the Province's
skilled educated workforce by giving Islanders job training
opportunities, and it will also help employers meet their labour force
needs."

Dr. Brian McMillan, Holland College President, is confident that the
agreements will provide the foundation for Prince Edward Island to
develop a highly skilled and adaptable labour force. "The College
congratulates the Government of Canada and the Province of Prince Edward
Island for establishing two very significant agreements that will enable
Islanders, both employed and unemployed, to develop the necessary skills
to have fulfilling careers in today's constantly changing knowledge
economy," said Dr. McMillan.

As part of the agreement for the Province to assume responsibility for
delivering services under the LMDA, federal employees currently doing
this work in Prince Edward Island will receive job offers with the
provincial government to continue their work. Discussions are now
underway to promote a smooth transition for these employees and to ensure
continuity of service to the individuals served under the LMDA.

The signature of these two labour market agreements fulfills commitments
made in the Government of Canada's long-term economic plan, Advantage
Canada, and the recent federal budget to create the best-educated,
most-skilled, and most flexible work force in the world. Similar
agreements have been signed with several provinces, and further
agreements are being negotiated with other provinces and territories and
will be signed in the coming months.

This news release is available in alternative formats upon request.

Visit the new Human Resources and Social Development Canada Web site at
www.hrsdc.gc.ca.

BACKGROUNDER

The signature of these two labour market agreements fulfills commitments
made in the Government of Canada's economic plan, Advantage Canada, and
the recent federal budgets to create the best-educated, most-skilled, and
most flexible work force in the world.

Canada-Prince Edward Island Labour Market Agreement

Under the new Labour Market Agreements, Canada's Government will invest
$500 million annually over the next six years to increase the quantity
and enhance the quality of Canada's labour force. These resources will be
allocated to the provinces and territories on an equal per capita basis.

The new Canada-Prince Edward Island LMA will inject more than $12 million
over the next six years into the Prince Edward Island labour market-based
on current population estimates-beginning with an investment of $2.1
million in 2008-2009.

The new investments will focus on supporting skills development for
unemployed and low-skilled employed individuals who are not eligible for
training assistance under the Employment Insurance (EI) program,
including groups who are under-represented in the labour market, such as

- Aboriginal people, immigrants, persons with disabilities, youth, women,
and older workers; and

- individuals entering and re-entering the work force.

The investments being announced today will:

- provide a variety of supports to individuals and employers by assisting
skills training tailored to specific occupations leading to higher skill
levels;

- increase industry investment relating to human resource planning to
train employees, improve competitiveness, and support economic growth and
job creation; and

- improve access to literacy and essential skills training providing an
essential linkage to the labour market and additional education.

The Labour Market Agreements contain commitments to:

- develop annual plans and engage stakeholders;

- manage financial resources provided under the agreement;

- measure the outcomes and benefits of investments in three
areas-participants, service delivery and results;

- regular public reporting of results; and

- review and evaluate activities regularly.

These new arrangements also contain a commitment to ensure that federal
investments do not displace normal provincial expenditures within the
labour market.

In developing and delivering its eligible programs and services, the
Province will take into account the needs of the official language
minority communities within the province, and to deliver, where there is
significant demand, services in either official language.

BACKGROUNDER

Canada-Prince Edward Island Labour Market Development Agreement

- Under the new Canada-Prince Edward Island Labour Market Development
Agreement (LMDA), the Province assumes responsibility for the design and
delivery of EI-funded employment benefits and support measures. Almost
$27 million per year will be provided from the Government of Canada for
this purpose.

- The new agreement replaces the existing co-managed agreement signed in
1997, under which the federal government retained responsibility for the
design and delivery of EI-funded Employment Benefits and Support
Measures. Labour Market Development Agreements have been successfully
transferred in ten other provinces and territories.

- The agreement supports funding for labour market programs and services
for Prince Edward Island residents who are now collecting EI benefits or
have received them in the last three years or for parents re-entering the
labour force who have collected EI parental benefits in the last five
years. Last year, almost 4,400 unemployed Prince Edward Island residents
benefited from EI-funded programs and services.

- The programs and services delivered under this agreement will be
similar to the benefits and measures offered by the federal government
under the previous agreement, including Job Creation Partnerships, Skills
Development, Wage Supplements, Self-Employment Assistance, Employment
Assistance Services and Labour Market Partnerships.

- In developing and delivering their eligible programs, the Province will
take into account the needs of the official language minority communities
within the province and to deliver, where there is significant demand,
services in either official language.

- The agreement contains a commitment for financial management,
performance measurement, regular public reporting on results, and ongoing
review and evaluation.

- The Government of Canada retains responsibility for income support
under the Employment Insurance Act. This agreement does not affect the
delivery of benefits for eligible individuals.

- Under the agreement Prince Edward Island will assume responsibility for
delivering employment programs and services, federal employees currently
delivering programs and services in Prince Edward Island will be offered
jobs with the provincial government.

- The new Labour Market Development Agreement will be fully implemented
by October 1, 2009. Until then, the Government of Canada will continue to
deliver EI-funded employment programs in Prince Edward Island. The
Province will also ensure continuity of service by continuing agreements
with third party service providers for up to two years.

Contacts:
Office of Minister Solberg
Pema Lhalungpa
Press Secretary
819-994-2482

Government of Prince Edward Island
Department of Innovation and Advanced Learning
Kim Devine
902-620-3774
kmdevine@gov.pe.ca

Human Resources and Social Development Canada
Media Relations Office
819-994-5559

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