When a Canadian Shipyard Loan Becomes a Grant ...
The province's $260-million loan to Irving Shipbuilding will be 'forgivable' if the shipyard & its direct sub-contractors create 4,000 jobs in Nova Scotia,
The government's assistance package, revealed in March 2012, includes the forgivable loan worth up to $260 million (but Irving will have to repay it if it doesn't reach those job targets) and a repayable loan of $44 million for human resources, technological, and industrial development, reports CBC News.
The Department of Economic Development said the 4,000 jobs will be created over the 29-year life of the agreement, while the NDP government defends the arrangement on the basis the shipbuilding work will generate $2.8 billion in tax revenue for the province.
In 2012, a Conference Board of Canada study found that Nova Scotia could benefit from an average of 8,400 indirect jobs between 2012 and 2030, peaking at 11,500 jobs during the program’s busiest years.
Source: CBC News