News Release Archive

A report from Statistics Canada shows Nova Scotia well in the
lead for new investment in 1997.

Finance Minister Bill Gillis said, "The projected 18.1 per cent
increase in business investment is by far the best in Canada. We
view the decisions by businesses to make major commitments in our
province as a vote of confidence in our future."

The 1997 total capital investment is expected to reach $3.55
billion of which $1.85 billion is construction and $1.70 billion
is machinery and equipment. Only Alberta, with a 14.9 per cent
increase, comes close to the Nova Scotia gain. The national
increase is placed at 4.4 per cent, which is the best increase
since 1993.

Dr. Gillis said, "In dollar terms, the Stora Paper Mill expansion
and anticipation of new activity offshore are having a big
impact, but we see tremendous growth in other areas too." 

Transportation and storage is forecast to see a 47 per cent
increase in investment, business services are expected to be up
by 45 per cent, and the accommodation, food and beverage sector
investment is projected to increase by 28 per cent this year.
Communications and other utilities are expected to see an 11 per
cent increase in investment and a similar change for finance and
insurance industries.

Dr. Gillis said, "We view the wide-ranging nature of the
investment intentions to be a sign of optimism in the business
community. The investment in machinery and equipment in most
sectors leads to increased production in the future. 

"That is why we think  businesses think Nova Scotia is a good
place to invest, it is the beginning of a chain of decisions that
inevitably lead to increased employment."

Other sectoral investment projections include manufacturing up
128.9 per cent, from $331 million in 1996 to $729 per cent in
1997. An increase of more than 75.5 per cent in mining, quarrying
and oil wells. Small declines are projected for the primary
sectors, other than mining, and investment by the government
services sector is expected to decline by 4.7 per cent in 1997.

The anticipated overall increase of 18.1 per cent for Nova Scotia
follows a revised increase of three per cent in 1996, slightly
above the Canadian gain of 2.8 per cent. The large gain in 1997
is almost entirely due to machinery and equipment, up 44.6 per
cent over the 1996 total. The construction component of total
capital investment in Nova Scotia shows a projected increase of
one per cent from the 1996 level.


Contact: Bruce Cameron  902-424-8787

jlw                 Feb. 26, 1997 -5:30 p.m.