Canada Economic Development

Canada Economic Development

February 09, 2010 15:00 ET

Government of Canada Invests $721,174 in Abitibi-Temiscamingue for Snowmobile Trail Improvements

VAL-D'OR, QUEBEC--(Marketwire - Feb. 9, 2010) - The Honourable Denis Lebel, Minister of State for Canada Economic Development, today announced that six snowmobiling clubs in the Abitibi-Témiscamingue region have been awarded a total of $721,174 in non-repayable funding.

Granted through the Community Economic Diversification program, this financial assistance covered a significant portion of the acquisition costs of new snow grooming machines to maintain certain sections of the Trans-Québec trail. This equipment represented a total cost of more than $1.3 million.

"The Abitibi-Témiscamingue region offers ideal snow conditions for the practice of snowmobiling. Indeed, during high season this sport occupies a place of prime importance. Canada Economic Development is proud to lend its financial support to the seven projects being announced today, particularly as they all promise to bolster winter tourism spinoffs in the region. The acquisition of this equipment by the various clubs will also lead to a substantial investment in the area," explained Minister of State Lebel.

These projects are expected to help strengthen the region's assets, namely the more than 3,000 kilometres of snowmobile trails that crisscross the territory. Organized snowmobiling generates more than $47 million in economic spinoffs every year for the region, benefiting such local businesses as hotels, restaurants and equipment rental shops, among others. 

Tourism, along with mining, agri-food processing and the transformation of forest products, are considered promising growth sectors for Abitibi-Témiscamingue. It is therefore in these priority areas that Canada Economic Development has decided to focus its development efforts in the region.

Tourism development is a priority for the Government of Canada. Indeed, in its economic action plan adopted last year, the government set aside $40 million in funding over two years to help the Canadian Tourism Commission in its efforts to successfully promote the country's industry on national and international markets.

The Minister of State took the opportunity while in Abitibi-Témiscamingue to meet with local economic stakeholders in order to gather their views, 12 months after the adoption of Canada's Economic Action Plan, on the effectiveness of this temporary economic stimulus measure. "As we move towards a return to fiscal balance, ideas on a variety of issues need to be discussed with socioeconomic stakeholders in the regions. The economy is a dynamic system that is constantly changing and it is imperative that we adjust. To play our cards right, we must clearly identify the needs of Quebec's various industries and gather the opinions of business leaders as to which sectors should be prioritized," concluded Minister Lebel, who successfully undertook a similar consultation process in early 2009.

For more on Canada's Economic Action Plan, visit www.actionplan.gc.ca.

Canada Economic Development is online at www.dec-ced.gc.ca. Subscribe to the Agency's press releases at
http://www.dec-ced.gc.ca/eng/media-room/mailing-list/list.html to keep up with the latest news.

Backgrounder — Acquisition of snow grooming machines

Promoter Description — Investment — Contribution
Club ski-moteur de Val-d'Or Non-repayable contribution of $214,022on a total investment of $332,862 Trans-Québec No. 63 snowmobile trail linking Abitibi-Témiscamingue to the Hautes-Laurentides and Outaouais regions.
Club ski-moteur de Val-d'Or Non-repayable contribution of $93,511 on a total investment of $187,022 Trans-Québec No. 83 snowmobile trail running between Mauricie and Abitibi-Témiscamingue.
Club motoneigistes MRC Rouyn-Noranda inc. Non-repayable contribution of $99,993 on a total investment of $188,885 Trans-Québec No. 83 snowmobile trail running between Mauricie and Abitibi-Témiscamingue and the No. 93 trail linking the region to Ontario.
Club de moto-neige de Malartic Non-repayable contribution of $94,998 on a total investment of $192,245 Trans-Québec No. 83 snowmobile trail running between Mauricie and Abitibi-Témiscamingue, section connecting Val-d'Or to Rouyn-Noranda toward the No. 93 trail linking the region to Ontario and the No. 307 toward Amos.
Club de moto-neige Témiscamingue Non-repayable contribution of $50,750 on a total investment of$101,500 Trans-Québec No. 63 and No. 83 linking Ontario to Abitibi-Témiscamingue and trail No. 63 linking the region to the Laurentides.
Club de moto-neige Lions de Senneterre Non-repayable contribution of $60,750 on a total investment of$121,500 Trans-Québec No. 83 snowmobile trail linking Mauricie and the Laurentides to Abitibi-Témiscamingue.
Club de motoneige Abitibi-Ouest Non-repayable contribution of $107,150 on a total investment of $214,300 Trans-Québec No. 93 snowmobile trail running between Abitibi-Témiscamingue and north-eastern Ontario (Timmins).

Total number of projects: 7

Contributions from Canada Economic Development: $721,174

Investments generated by these projects: $1,338,314

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