Grants to create 295 jobs
August 11, 2009 | Gordon Hoekstra, Prince George Citizen
MP Jay Hill and Northern Trust Chair Bruce Sutherland speak at a press conference held at the Canfor Winter Garden at UNBC Tuesday morning. (Citizen photo by Chuck Nisbett)
The Northern Trust awarded $10 million on Tuesday in federal money for projects in north and central B.C. expected to create 295 jobs in the next 19 months.
At the same time, Ottawa said it would provide another $20 million for the job-creation program.
The federal cash comes from a $1-billion fund set aside by the Conservatives earlier this year to help communities in the next two years hard hit by the economic recession.
The 23 projects range from $1 million for UNBC in Prince George to provide employment skills to First Nations, youths, low income and unemployed people, to $127,875 for the Metlakatla Development Corp. near Prince Rupert to start a traditional canoe tour.
"Through our government's support, these 23 community initiatives will create immediate jobs and build a stronger northern British Columbia," said Prince George-Peace River MP Jay Hill, who sits on the Conservative cabinet.
One of the key aims of the federal-funded projects is to create immediate employment.
For example, the UNBC project is expected to create 17 jobs, while the Metlakatla project is expected to create six jobs.
More projects are expected to receive funding in the next few weeks from the second pot of $20 million.
NDP MP Peter Julian called the announcements "damage control" for Conservative policies that have created a mess for the natural resource-based economy in the north and Interior of B.C. Julian, a B.C. NDP, pointed to the softwood lumber agreement with the U.S., noting that fines being paid by Canada under the agreement could dwarf any investment the Conservatives are making in these type of community projects. Canada is already on the hook for $68 million, and could be facing another $400 million in fines.
Julian noted that the $10 billion promised in beetle aid for B.C. has disappeared.
Northern Trust CEO Janine North said the economic development agency had an overwhelming response from north and central B.C. with 490 applications. "There was more than $10 million in great projects," she said.
The Northern Trust's board made the final decision on the projects, authority delegated to them by the federal government. Normally, the federal government uses a federal agency like Western Economic Diversification to vet projects.
The Northern Trust, initially funded from money from the sale of B.C. Rail to CN, is overseen by a board that includes municipal leaders, regional representatives drawn from the business community and a First Nations representative.
North said the same criteria is used across the country to judge the projects: The number of jobs created, federal dollars spent per job and the results expected of the project. She noted that the idea is not only to create immediate jobs, but a lasting economic legacy for the communities.
For any business proposals, due diligence is undertaken to determine the risk on the loan the company will have to pay back.
The projects are chosen strictly on merit, and not apportioned by region, said North.
Most of the funding went to projects in the northwest B.C. and the Cariboo region north of Prince George.
In the Cariboo, the Quesnel Downtown Association received $757,250 to help beautify the downtown in the next two years, while the Cariboo Central Interior Poultry Producers Association was awarded $724,865 to further develop its mobile poultry processor. Those two projects are expected to create nearly 30 jobs.
In the northwest, Terrace received $600,000 to help revitalize George Little Park, and the District of Stewart was awarded $520,000 to improve trails and campsites. Those projects are expected to create 35 jobs.
In Prince George, the city also received $440,000 to expand the local trail system. That project is expected to create five jobs.
