Canada Economic Development

Canada Economic Development

May 18, 2010 10:30 ET

$2,286,633 in Funding Granted by Government of Canada to the Iles-de-la-Madeleine Fishing and Tourism Industries

ÎLES-DE-LA-MADELEINE, QUEBEC--(Marketwire - May 18, 2010) - While on visit to Îles-de-la-Madeleine today, the Honourable Denis Lebel, Minister of State for Canada Economic Development, reported on the financial assistance awarded over the last year to support the economic development of the archipelago and promote the growth of the tourism and fishery industries.

Canada Economic Development contributed to nine projects in the tourism and cruise sector with $2,014,596 in total funding. A total of $216,037 in financial assistance was granted to four projects in the fishery and aquaculture industry, and a project in the multimedia sector received a $56,000 contribution. In total, $2,286,633 in funding ensured the realization of 14 projects in Îles-de-la-Madeleine, generating an overall investment of $9,388,878 in the area. 

The Minister of State noted that these projects illustrate both the dynamism of Îles-de-la-Madeleine communities and the archipelago's determination to secure its own development. He stressed the importance of the fisheries and tourism as the main driving forces of the local economy. "With its one-of-a-kind landscapes and the exceptional experiences it affords visitors, Îles-de-la-Madeleine possesses virtually unlimited tourism potential. That is why the Government of Canada is proud to support projects that, while diversifying the local economy, help position the archipelago as a world-class tourist destination," he explained.

Among the tourism projects funded, the Musée de la Mer received a $500,000 non-repayable contribution to renovate and expand its facilities and acquire new equipment in order to better meet the needs of its clientele and continue playing a lead role in the cultural and economic development of the islands. Generating an overall investment of $5,100,000, this project will help strengthen the local tourism offering, promote the development of a more structured cruise product and ensure the maintenance of four permanent jobs.

Cornerstone of the Îles-de-la-Madeleine economy

Despite the crises facing the fisheries and aquaculture, these sectors remain cornerstones of the Îles-de-la-Madeleine economy, generating spinoffs evaluated at more than $54 million a year. "The fishery sector is an important lever of development, particularly in terms of the promising opportunities for economic diversification that the enhancement of lesser-known marine species offers communities and the sector's potential for stemming the exodus of young people from the islands. That is why the Government of Canada considers it a priority to support initiatives that further the revitalization of the archipelago economy," Minister Lebel concluded. 

These financial contributions were awarded through the International Cruise Ports of Call initiative, Community Diversification program, Community Adjustment Fund, Community Adjustment Fund Lobster component and Business and Regional Growth program. For more on Canada's Economic Action Plan, visit www.actionplan.gc.ca.

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CANADA ECONOMIC DEVELOPMENT INVESTMENTS IN ÎLES-DE-LA-MADELEINE

Tourism and cruise industries

Promoter / Project location   Description – Investment – Contribution
Centre de loisirs de Havre-aux-Maisons

Havre-aux-Maisons
  Non-repayable contribution of $70,857 through the Community Diversificationprogram on an overall investment of $157,460 for the production of a master economic development and tourism plan for Pointe de Havre-aux-Maisons. The project includes the conducting of a feasibility study, creation of a global concept and establishment of budget forecasts to determine the economic viability of the tourism development plan. This initiative will help better structure and coordinate the tourism development of Havre-aux-Maisons and thereby create an integrated pole of attraction in the archipelago's tourism offering.
Navigation Madeleine Inc.

Cap-aux-Meules
  Repayable contribution of $96,479 through the Community Diversification program on an overall investment of $309,941 for various leasehold improvements to the vessel "CTMA Vacancier" and for the acquisition of specialized equipment to develop a new tourism product, namely the Congrès en mer—or convention at sea. With this initiative, the company has been able to improve the common areas and cabins, set up a convention hall and acquire equipment necessary for the hosting of conventions, including high-speed Internet access.

This project will help consolidate 325 jobs and extend the tourism season on the islands by attracting a new clientele, generating an estimated $2.5 million in spinoffs over four years.
Le Centre des Loisirs de Fatima I.-M. Inc.

Fatima
  Non-repayable contribution of $97,200 through the Community Adjustment Fundon an overall investment of $333,000in Fatima for the first phase of a vast interpretation project on the history of whale hunting. This project will help increase the tourism offering in Îles-de-la-Madeleine while promoting diversification of the community's economic base. Resulting in the ultimate creation of 1.5 seasonal jobs and six temporary positions during the construction phase, this initiative is the fruit of community mobilization.
Comité de développement de la Pointe de la Grande-Entrée

Grande-Entrée
  Non-repayable contribution of $100,000 through the Community Economic Diversification Initiative – Vitalityon an overall investment of $150,000for the production of a master economic development and tourism plan for Pointe de la Grande-Entrée. The plan will include identification of the site's strengths and weaknesses, development of the "Expérience de la Pointe" concept and preparation of a marketing plan. The initiative will help better structure tourism activities and provide a framework for the emergence of complementary enterprises, all in harmony with the local assets of sea and fishing.
Association touristique régionale des Îles-de-la-Madeleine

Cap-aux-Meules
  Non-repayable contribution of $105,000 through the Community Diversificationprogram on an overall investment of $150,192for the transition plan of theCentre intégré de développement touristique des Îles-de-la-Madeleine (CIDT-IDM), a division of the Îles-de-la-Madeleine regional tourism association that, since 2004, has been working to develop and structure the Îles-de-la-Madeleine tourism offering. In the end, the tourism industry will have the tools it needs to position its new products on markets and thereby extend its tourist season. One job will be maintained and two direct jobs created. Over the long term, this project will pave the way for the creation of new enterprises on the archipelago and the development of new markets.
Fromagerie du Pied-de-Vent Inc.

Havre-aux-Maisons
  Repayable contribution of $200,000 through the Community Adjustment Fundon an overall investment of $500,000 for the expansion of Fromagerie du Pied-de-Vent. The additional space will be used for the processing and development of value-added products and the establishment of an economuseum. The project should help the firm improve its sales and increase the local tourism offering while creating two permanent and three casual jobs. An additional six jobs will be created during the construction phase.
Corporation de développement des Îles-de-la-Madeleine

Cap-aux-Meules
  Non-repayable contribution of $279,060 through the International Cruise Ports of Callcomponent of theMajor Economic and Tourism Facilitiesinitiative on an overall investment of $483,900for the establishment of a new corporation dedicated to developing the Îles-de-la-Madeleine port of call and positioning it within the international cruise circuit along the St. Lawrence River.

This initiative will make it possible to structure the port of call and carry out the studies needed to develop permanent infrastructure, including a terminal. The Corporation will also see to promoting the destination among the various cruise companies. Over the longer term, this project could help extend the tourist season. It is estimated that a port of call can generate $2.7 million in direct spinoffs between 2010 and 2014.
Musée de la Mer Inc.

L'Île-du-Havre-Aubert
  Non-repayable contribution of $500,000 through the International Cruise Ports of Callcomponent of theMajor Economic and Tourism Facilitiesinitiative on an overall investment of $5,100,000for the renovation and expansion of theMusée de la Mer, whose building no longer meets museum facility standards, and for the acquisition of equipment. This project will enable the museum to better meet the needs of its tourism clientele. The Musée de la Mer plays a key role in Îles-de-la-Madeleine's cultural and economic development. This initiative will result in the maintenance of four permanent jobs.
Comité de la mi-carême de Fatima

Fatima
  Non-repayable contribution of $566,000 through the Community Adjustment Fundon an overall investment of $808,400for the creation in Fatima of an ecomuseum on Mid-Lent. This museum, which will offer visitors the opportunity to learn about Mid-Lent and its history, observations and festivities, will help strengthen the local tourism offering, thereby drawing more visitors and greater socioeconomic spinoffs to the area.

Seven jobs, including one permanent position, will be created to ensure operation of the museum, while the construction period is expected to provide employment to some 10 contract workers.

Summary 

Total number of projects: Nine
Total funding from Canada Economic Development: $2,014,596
Total investments generated: $7,992,893

Fishing industry

Promoter / Project location   Description – Investment – Contribution
Cégep de la Gaspésie et des Îles

Grande-Rivière
  Non-repayable contribution of $16,000 through the Business and Regional Growthprogram on an overall investment of $52,141 for the optimization of the declumping and sorting machinery used for mussel harvesting. These devices, which are fixed to mussel boats, are used to separate, sort and clean the mussels. The machines currently available on the market are not well suited to the kinds of boats used by mussel farmers, resulting in additional costs all along the production and processing chain.

This pilot project will enhance the competitiveness of mussel farmers in the Gaspésie and Îles-de-la-Madeleine region while improving their strategic capabilities. With this new harvesting technology, companies from the sector will be better able to offer stable employment in communities affected by the various crises in the fisheries.
Regroupement des palangriers et des pétoncliers uniques madelinots

Cap-aux-Meules
  Non-repayable contribution of $26,438 through the Community Adjustment Fundon an overall investment of $29,376to carry out a restructuring plan of the Îles-de-la-Madeleine fixed-gear groundfish fleet. This plan will allow theRegroupement to take active part in the restructuring of this fleet so as to better adapt to and survive the new realities of the fishery and marketplace.

Given that cod stocks in the southern Gulf of St. Lawrence are at their lowest level ever and are showing no signs of recovery, an immediate rationalization is needed to secure the viability of fishing companies. This project will help strike a balance between the number of fishers and the available resources, thereby fostering the industry's sustainability. This initiative will result in the maintenance of 56 permanent seasonal jobs.
Canadian Seal Products Marketing Group

Cap-aux-Meules
  Non-repayable contribution of $79,849 through the Business and Regional Growthprogram on an overall investment of $855,520for the development of a strategy to bring high-end sealskin products to Russian and Chinese markets.

The aim of this project is to improve the overall image of the seal industry and promote it to the general public and decision makers in such a way as to increase demand for and use of seal products. This will ensure the long-term viability and profitability of the industry. One component involves the identification and assessment of new avenues of development for the seal processing industry to offset the loss in revenues brought on by the ban of seal products in Europe.
Association des pêcheurs propriétaires des Îles-de-la-Madeleine

Cap-aux-Meules
  Non-repayable contribution of $93,750 through the Community Adjustment Fundon an overall investment of $346,934for infrastructure upgrades to the lobster boat repair service centre in Îles-de-la-Madeleine. Launched in autumn 2009 and continuing through to spring 2010, this project will help preserve essential fishery infrastructure on the archipelago. The initiative will result in the maintenance of three permanent jobs and the creation of six temporary positions during the construction period.

Summary 

Total number of projects: Four
Total funding from Canada Economic Development: $216,037
Total investments generated: $1,283,971

Other sectors

Promoter / Project location   Description – Investment – Contribution
7058896 Canada Inc. (L'île imagin'air)   Repayable contribution of $56,000 through the Community Diversificationprogram on an overall investment of $112,014for the acquisition of specialty equipment for the production of high-definition audiovisual documents.

The enterprise will thus be able to meet new market standards for image resolution and sound quality. As these standards apply to all aspects of audiovisual production, the new equipment will serve for sound and image recording as well as editing. Resulting in the creation of one new job and the maintenance of two others, this project will foster the development of a local technology firm while contributing to the diversification of the area's economic base.

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