February 15, 2006
For immediate release
Enriched Investment Tax Credit Helping to Improve Productivity for Businesses
Development and Technology
Minister Currie said Cavendish Farms in New Annan has recently completed a major upgrade to its processing facilities. He says the government is pleased to work closely with businesses to develop programs that allow Island companies to remain competitive in a global marketplace.
“The provincial government recognizes that in order for Island Companies to remain competitive, make a profit, and stay in business, firms must work to achieve a level of productivity consistent with the standards of performance in their industry,” said Minister Currie. “This project is a prime example of why the Enriched Investment Tax Credit has been implemented by the province. It advances the competitiveness of PEI manufacturers and processors.”
Cavendish Farms has made significant investment in Prince Edward Island, operating two processing facilities, employing over 700 people, purchasing local supplies from Island potato growers, and redistributing millions of dollars to employees, farmers and suppliers within the province. The PEI company has a proven track record with over 25 years of long-term sustainable growth and is a major contributor to the province’s export numbers. The company has just invested upwards of $15 Million to modernize its facilities.
Mr. Robert Irving, President of Cavendish Farms, said the Enriched Investment Tax Credit, will help the company to remain competitive in the marketplace.
“The competitiveness and long-term growth of Cavendish Farms relies on making a significant investment for modernization and productivity improvement,” said Mr. Irving. “Skilled people, leading-edge technology and a sustainable, cost-effective supply of potatoes are key to sustaining local jobs and suppliers on the Island. We appreciate this vote of confidence the provincial government has given Cavendish Farms as we work to ensure the future competitiveness of our business.”
Enriched Investment Tax Credit applies only to manufacturing and processing activities as defined under the federal Income Tax Act. The province currently offers a ten percent investment tax credit for capital investment. This program will provide an additional 25 percent credit to those companies which invest in expansion under the program’s criteria. It is part of the Progressive Tax Rebate Program introduced in December 2004. Minister Currie said over 200 jobs have been directly created since the government introduced the new tax structure.
“Our government has been successful in fostering a close working relationship with the business community and that relationship has led to the creation of jobs and opportunities for Islanders,” said the Minister. “Developing programs like tax incentives to reward companies that are investing in Prince Edward Island’s economy will help keep those companies competitive and successful.”
Approvals for the program are issued by Prince Edward Island Business Development Inc. and are based on factors such as economic impact, export focus, quality of business plan and planned productivity.
For more information about provincial tax programs, please contact Bruce Johnson at (902) 894-0379. For additional information, please visit our website at www.peibusinessdevelopment.com