The Honourable Lawrence MacAulay, Secretary of State (Veterans) (Atlantic Canada Opportunities Agency), on behalf of the Honourable Pierre S. Pettigrew, Minister of Human Resources Development, along with Prince Edward Island's Premier Pat Binns today announced that Atlantic Store Decor Inc. (ASD) will build a plant in Pooles Corner, Prince Edward Island. The federal government will provide funding of $1.5 million for the construction of this new manufacturing facility.
The Government of Canada is participating, through Human Resources Development Canada's Transitional Jobs Fund (TJF) and ACOA's Business Development program, in this partnership with the government of Prince Edward Island which has identified it as a priority for economic development. The construction of Atlantic Store Decor's new facility will result in the maintenance of 18 jobs and the creation of up to an additional 102 jobs. Human Resources Development Canada (HRDC) is contributing $1 million and ACOA is contributing $500,000 towards this expansion project, in addition to Atlantic Store Decor's contribution of $2.78 million.
"I am pleased to announce the establishment of such a vital manufacturing business in Pooles Corner which will represent the proper mix of private enterprise, federal government regional development, and provincial government help and cooperation," said Mr. MacAulay. "Atlantic Store Decor's President and General Manager, Tim Banks doesn't wait for things to happen; he makes things happen. Atlantic Store Decor Inc. is a company with its sights set on the international export market and, at the same time, a company whose produces are high quality and labour intensive."
"It is always welcome to see a business expand and grow," said Premier Pat Binns. "This project will benefit the area through the creation of new employment opportunities, and encourage economic development and manufacturing in the area."
Atlantic Store Decor is a retail store fixture manufacturing plant. The project will allow for the modernization and expansion of the company's facilities allowing it to produce fixtures for retail stores, as well as component homes, cottages and barn packages, and furniture. Atlantic Store Decor Inc. is a company with a confirmed and large market with plans to expand even more. To facilitate the expansion, the Government of Prince Edward Island is buying the company's current West Royalty facility at fair market price for further business development use and is also providing the necessary land at Pooles Corner.
The federal Transitional Jobs Fund totals $300 million over three years and promotes economic growth and employment in areas of high unemployment. TJF was implemented at the same time as the new Employment Insurance system on July 1, 1996 and will assist regions throughout Canada to develop long-term sustainable employment in areas that have good prospects for future growth.
The TJF is designed to encourage partnership initiatives with other levels of government, the private sector and community groups. Projects are subject to consultations with the provincial or territorial government in which the activity takes place, regardless of their financial participation. Projects must also be consistent with regional economic development strategies.
This project supports the Government's Jobs Strategy. The Jobs Strategy is based on strengthening the economic fundamentals and establishing a favourable climate for job creation by making strategic investments in priority areas where the government can make a difference in areas such as youth, trade, technology and infrastructure.
Funding for this project was provided for in the February 1997 federal budget and it therefore built into the existing framework. This announcement is an example of how this government is prioritizing its spending so that it can better serve Canadians by making efficient use of their tax dollars.