The Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) is investing $1.72 million in upgrades to the water supply system in Charlottetown, a fishing community located on the Southeast Coast of Labrador. With a population of 350 people, it is the only year-round settlement in Labrador that does not have an industrial base. Charlottetown is one of 11 communities in Southeastern Aurora Economic Zone, one of the areas hardest hit by the groundfish moratorium. Approximately 85 per cent of the workforce was displaced.

The value of landed shrimp in Newfoundland and Labrador since 1995 totals $200 million. Recognizing the opportunity for residents of Labrador to participate in the on-shore processing of shrimp, the Labrador Fishermen’s Union Shrimp Company (LFUSC) board of directors financed a study to determine the feasibility of setting up a shrimp plant on the south coast of Labrador. As a result, the LFUSC is proposing to privately finance the establishment of a $7 million shrimp processing facility at Charlottetown. The plant is expected to employ 120 full-time seasonal workers and a further 15 during construction. In order to proceed with construction, the water supply system in the town must be upgraded. Funding for the upgrade is conditional on the applicant demonstrating that the required private sector financing for the proposed shrimp plant is in place. The project has received the support of the Southeastern Aurora Economic Development Corporation.

The LFUSC is currently the major fish processing operation in Labrador with crab processing facilities at Cartwright, Mary’s Harbour, Pinsent’s Arm. The company also has a groundfish/pelagic plant at L’Anse au Loup. The company employs approximately 600 people and services approximately 1100 fishers. Construction and operation of the shrimp facility will benefit the communities of Charlottetown, Norman’s Bay, Pinsent’s Arm, and Port Hope Simpson.