The aerospace and bioscience sectors in Prince Edward Island are posting better sales and profits than originally predicted, Economic Development and Tourism Minister Heath MacDonald said.
“We are seeing increased export growth on Prince Edward Island and a resulting increase in labour income,” said Minister MacDonald. “This is a sign of positive economic development in key sectors.”
Government offers corporate tax rebates to up-and-coming sectors like aerospace and bioscience as part of efforts to grow the province’s economy. The tax rebates are tied to business success – so the more revenue they generate for the economy, the more rebates they receive.
Cabinet this week approved a special warrant of $6.9 million to address the increase in tax rebates for the aerospace and bioscience sectors. The special warrant will be offset by increased provincial revenues so it will not increase the province’s budget deficit.
“As companies succeed and grow, they add employees who spend money in the community and they invest in expansions to their businesses, which contributes to the provincial economy,” said the Minister.
The bioscience industry in Prince Edward Island includes 40 companies that generate $125 million in sales annually. It employs more than 1,300 Islanders in highly skilled positions and is responsible for more than 1,700 direct and indirect jobs.
Bioscience has tripled in size over the past 10 years and should continue to succeed thanks to the province’s growing reputation as a location to build bioscience companies.
Aerospace companies generate $149 million to the provincial economy and employ more than 1,360 highly skilled Islanders. Like bioscience, the sector has grown steadily particularly in international exports, which have increased by 300 per cent over the past five years.