Funding will help with construction of new hotel in Harbour Breton

Carter Holdings Inc. will construct a new hotel facility to replace the 30-year old Southern Port Hotel and create two new employment opportunities in Harbour Breton.

Bill Matthews, MP - Burin-St. George�s, on behalf of Jane Stewart, Minister of Human Resources Development Canada, along with Beaton Tulk, Minister of Industry, Trade and Rural Development, today announced funding of $80,000 for this project. The Department of Industry, Trade and Rural Development will provide seed capital equity funding of $50,000, with the company providing a matching amount. The Government of Canada is investing $30,000 through the Canada Jobs Fund.

The project involves construction of a new hotel facility for Harbour Breton, the only tourist accommodation in the region. The new facility will increase its capacity from 10 rooms to 14, provide larger dining and lounge areas, and add a conference facility.

"In addition to providing a valuable new development for the community, this project will provide work experience and jobs in the area," said Mr. Matthews. "The Government of Canada is pleased to support such a worthwhile project that will help to strengthen the local infrastructure and tourism industry."

This is an example of a rural business using a new tool, the Small Business Seed Capital Equity Program, to create new jobs," said Minister Tulk. "This program was established as a direct result of the Government of Newfoundland and Labrador jobs and growth consultations and is helping to create and expand businesses in all parts of the province."

Funding for this project was provided through the Canada Jobs Fund. This fund was a national program designed to assist areas of high unemployment. Today�s announcement is an example of one such project.

The Canada Jobs Fund was brought to an end on June 22, 2000. Human Resources Development Canada officials will continue to assess and, where appropriate, recommend for approval by the minister, eligible projects submitted to the department before June 22, 2000. Uncommitted funding will be redirected to regional economic development agencies.

Funding for this project was provided for in the February 2000 Budget and is therefore built into the existing financial framework. This project has been reviewed to ensure compliance with the department�s improved administration of its grant and contribution programs.

Media contact:

Bonnie Pope
Regional Manager Communications
Human Resources Development Canada
(709) 772-5346

William Carter
Vice-President
Carter Holdings Inc.
Manuels
(709) 834-1326

Josephine Cheeseman
Director of Communications
Industry, Trade and Rural Development
(709) 729-4570

2001 03 02                                       12:00 p.m.