March 29, 2000
(Government Services and Lands)

Pilot project will market test caribou felt as outerwear liner for textile industry

Funding was announced today for the North West River Industrial Association (NWRIA) to carry out a pilot project to assess the technical and market feasibility of using caribou hair interliner for mittens and other garments. The association is hoping the project will lead to the establishment of a textile manufacturing operation in the town.

The pilot project, to be funded through the Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC), will provide important information on the market and production costs of such an industry.

Funding of $144,000 for the project was announced today by Lawrence O�Brien, MP for Labrador, on behalf of George Baker, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Ernie McLean, Minister responsible for the Labrador Region, and Government Services and Lands.

"Tests of caribou felt as an interliner in cold weather outerwear show that it is twice as warm as wool alone and only 60 per cent of the weight," said Mr. O�Brien. "By piloting this project, the NWRIA is able to determine the type and scale of operation which could be established in Labrador to manufacture the products. This is an excellent example of local people using a local natural resource in a sustainable way to create employment opportunities in rural areas."

Minister McLean agreed that the pilot project is an excellent manufacturing opportunity.
"A number of retailers across the country have expressed interest in sampling the products as a way of determining market potential," he said. "We believe this relatively small investment has the potentialto yield significant long-term gains for the people of Labrador."

The pilot project involves the manufacture of the felt and test marketing of the caribou felt interlining in high quality, cold weather mittens and other products. The NWRIA hopes to be able to either attract commercial investment to the area to manufacture the products, or to provide the groundwork necessary for the establishment of a local co-operative or community enterprise to produce the products.

The project offers the potential to develop commercial operations and sustainable employment in Labrador and, therefore, furthers the rural economic development objectives of the agreement. The project is a priority of the Central Labrador Economic Development Board.

The three-year $81.25 million Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) was signed on August 16, 1999. The agreement is designed to build upon the strategic plans and priorities of the Regional Economic Development Boards to improve the long-term economic climate in regions impacted by the downturn in the groundfish industry.

It is delivered federally by ACOA and provincially by the Department of Development and Rural Renewal.

For further information, please contact:

Doug Burgess
ACOA
(709) 772-2935.

Rick Callahan
Government Services and Lands
(709) 729-4860.

2000 03 29                                     2:00 p.m.