Canada's Government Helps Bring Jobs to Atlantic Canada

GEORGETOWN, PRINCE EDWARD ISLAND, Sep 05 (MARKET WIRE)
--
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 Ocean
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.

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

Industry Canada
Media Relations
613-943-2502

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