News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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PRIME MINISTER HARPER AND PREMIER GHIZ ANNOUNCE FUNDING AND PRIORITIES FOR PRINCE EDWARD ISLAND UNDER NEW NATIONAL COMMUNITY DEVELOPMENT TRUST

March 31, 2008
Ottawa, Ontario

Prime Minister Stephen Harper and Prince Edward Island Premier Robert Ghiz, today announced that the Government of Canada will provide Prince Edward Island with $13.7 million as part of the new national Community Development Trust.

The Federal Government recently unveiled the program to help provinces and territories assist communities and workers suffering economic hardship caused by current volatility in global financial and commodities markets.

"I am pleased to announce that the Government of Prince Edward Island has agreed to be a partner in the Community Development Trust," said Prime Minister Harper. "This major new national initiative will support provincial territorial efforts to help communities and workers buffeted by international economic turbulence that is beyond their control."

"Since becoming Premier of Prince Edward Island, I have been pleased to work very closely with the Prime Minister and his Government on issues of importance to Islanders," said Premier Ghiz. "Today's announcement is another example of this collaborative relationship. I am particularly pleased that the Community Development Trust's base funding allocation respects the unique circumstances of smaller provinces."

The Province of Prince Edward Island has identified the following priorities for funding consistent with the objectives of the Community Development Trust:

assistance for workers in support of innovation within rural communities in order to build and develop sustainable communities and create new job opportunities;

retraining and skills development to assist workers to transition from industries which are downsizing due to declining demand or loss of competitive position;

assistance for community economic development to strengthen and diversify local economies and position them to better compete in the global economy; and

assistance to promote environmental stewardship and advance new and sustainable diversification efforts in agricultural communities.

"My government is working to establish a more innovative, vibrant and sustainable Island economy," stated Premier Ghiz. "I am confident that investments made from the Community Development Trust will benefit Island workers and their families, strengthen communities, and contribute to the Island's prosperity."

The Community Development Trust is funded with $1 billion from the 2007-08 federal budgetary surplus. A base amount of $10 million will be allocated to each participating province and $3 million to each participating territory. The balance of the funding will be allocated on a per capita basis. The Trust will have a three-year life span. The Government of Prince Edward Island has agreed to respect Canada's obligations under the North American Free Trade Agreement, the Softwood Lumber Agreement, and the World Trade Organization in administering its portion of the Trust funding.

"In last fall's throne speech, we responded to what we heard from Canadians in all regions of the country to stand up for workers and communities in traditional industries," said the Prime Minister. "Working together with the Government of Prince Edward Island we can help Islanders to turn today's economic challenges into economic opportunities for tomorrow. I have great confidence in the resourcefulness, ingenuity and determination of Islanders to forge a bright future. The federal government will be there to help."

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The Prime Minister's Office - Communications
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