News Release Archive
FINANCE--BUSINESS INVESTMENT GROWTH IN NOVA SCOTIA ----------------------------------------------------------------- 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. -30- Contact: Bruce Cameron 902-424-8787 jlw Feb. 26, 1997 -5:30 p.m.