Minister Don MacKinnon today commented on the news that Island Tel Advanced Solutions (ITAS) has hired former employees of the Marshall Media Group (MMG) and purchased part of the company's assets.
"I am aware that Marshall Media Group has recently been experiencing difficulties and has been unable to achieve the ambitious goals that were established when the company originally came to PEI," said Minister MacKinnon. "I am hopeful that this acquisition will benefit all parties involved and that Marshall Media employees will continue to be an asset to the information technology industry through their new employment with Island Tel Advanced Solutions."
In 1998, the Province of Prince Edward Island committed a performance-based investment of $520,000 to Marshall Media. Of that amount, $360,000 was released to the company based upon the job creation performance of the company. As of May 1, 1999, Marshall Media had met or exceeded all commitments made to the province under the terms of agreement. Due to recent and unforeseen developments associated with MMG, the company's abilities to meet its production and job creation targets have been hindered.
The province, through Enterprise PEI, has monitored Marshall Media Group throughout the course of the agreement. As soon as Enterprise PEI confirmed that MMG was no longer able to meet its production and job creation targets, the flow of public funds to the company ceased, as per the original agreement.
In order to protect the government's investment and to assist the company in the transition period, other business opportunities were explored, resulting in ITAS making employment offers to all seven Marshall Media employees in Charlottetown and purchasing part of the company's assets.
"We look at our contributions as investments," said Minister MacKinnon. "The vast majority of these investments create permanent jobs and economic growth that benefit the Island economy. Although we are disappointed with this development, the Government remains committed to cultivating the province's high tech sector."
The Minister concluded by saying, "What is really important are the people, and keeping them employed here in Prince Edward Island. We're glad that ITAS will provide them with the opportunity to continue working in the Information Technology industry. I am optimistic that the training, knowledge and experiences they have received through their employment with Marshall Media will be valuable assets to Island Tel Advanced Solutions over the longer term."