GOVERNMENT OF CANADA LAUNCHES $1-BILLION FUND TO HELP STIMULATE THE ECONOMY IN RURAL COMMUNITIES

May 19, 2009

Western Canada to receive $306-million in support through new Community Adjustment Fund

ALBERTA, May 19th, 2009— Canadian workers, families and businesses in communities that are hardest hit by the global recession will be able to pursue new economic opportunities in their communities thanks to Community Adjustment Fund, a major job creating investment contained in the Harper Government’s Economic Action Plan.

“Our western families and communities are facing many challenges due to the current global economic downturn,” said MP Brian Jean, Athabasca – Fort McMurray. “The Community Adjustment Fund will provide additional support to our small, single – industry communities, by creating jobs, maintaining employment and building on existing programs and partnerships.”

The Community Adjustment Fund will deliver a total of $1-billion over the two years to local economies throughout Canada. The fund will provide $306-million over two years to support the most affected western Canadian communities.

“Alberta has numerous communities that are dependent on resource-based sectors,” said the Honourable Jim Prentice, Minister of the Environment. “The Community Adjustment Fund will provide much needed stimulus to severely impacted areas and help mitigate some of the existing challenges.”

Projects to be funded under CAF could include reforestation activities, investments in machinery or equipment, demonstration of new mining technologies, and initiatives to improve market access for products.

“The Community Adjustment Fund is one of several initiatives from Canada’s Economic Action Plan that addresses immediate community needs,” said the Honourable Rona Ambrose, Minister of Labour. “Our Government is committed to ensuring that Alberta’s communities are vibrant places to live, work and raise families ."

The Community Adjustment Fund will also build on the ongoing work of existing federal programs and initiatives such as the $170-million fund for forest products market diversification and innovation, and programs delivered by Western Economic Diversification Canada.

Western Economic Diversification (WD) will deliver the fund in the four western provinces. Program and applications details may be obtained at http://www.wd-deo.gc.ca.