Government of Canada invests $721,174 in Abitibi-Témiscamingue for snowmobile trail improvements

Val-d’Or, Quebec, February 9, 2010 – The Honourable Denis Lebel, Minister of State for Canada Economic Development, today announced that six snowmobiling clubs in the Abitibi-Témiscamingue region have been awarded a total of $721,174 in non-repayable funding.

Granted through the Community Economic Diversification program, this financial assistance covered a significant portion of the acquisition costs of new snow grooming machines to maintain certain sections of the Trans-Québec trail. This equipment represented a total cost of more than $1.3 million.

“The Abitibi-Témiscamingue region offers ideal snow conditions for the practice of snowmobiling. Indeed, during high season this sport occupies a place of prime importance. Canada Economic Development is proud to lend its financial support to the seven projects being announced today, particularly as they all promise to bolster winter tourism spinoffs in the region. The acquisition of this equipment by the various clubs will also lead to a substantial investment in the area,” explained Minister of State Lebel.

These projects are expected to help strengthen the region’s assets, namely the more than 3,000 kilometres of snowmobile trails that crisscross the territory. Organized snowmobiling generates more than $47 million in economic spinoffs every year for the region, benefiting such local businesses as hotels, restaurants and equipment rental shops, among others.

Tourism, along with mining, agri-food processing and the transformation of forest products, are considered promising growth sectors for Abitibi-Témiscamingue. It is therefore in these priority areas that Canada Economic Development has decided to focus its development efforts in the region.

Tourism development is a priority for the Government of Canada. Indeed, in its economic action plan adopted last year, the government set aside $40 million in funding over two years to help the Canadian Tourism Commission in its efforts to successfully promote the country’s industry on national and international markets.

The Minister of State took the opportunity while in Abitibi-Témiscamingue to meet with local economic stakeholders in order to gather their views, 12 months after the adoption of Canada’s Economic Action Plan, on the effectiveness of this temporary economic stimulus measure. “As we move towards a return to fiscal balance, ideas on a variety of issues need to be discussed with socioeconomic stakeholders in the regions. The economy is a dynamic system that is constantly changing and it is imperative that we adjust. To play our cards right, we must clearly identify the needs of Quebec’s various industries and gather the opinions of business leaders as to which sectors should be prioritized,” concluded Minister Lebel, who successfully undertook a similar consultation process in early 2009.

For more on Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

For urther information, consult the backgrounder associated with this news release:

• Acquisition of snow grooming machines

- 30 -

Sources:

François Bélisle
Communications
Canada Economic Development
Tel.: 819-825-5260, ext. 235
Cell.: 819-856-3520
E-mail: francois.belisle@dec-ced.gc.ca

Simon Bachand
Press Secretary
Office of the Honourable Denis Lebel
Canada Economic Development
Tel.: 613-996-6236
E-mail: simon.bachand@dec-ced.gc.ca