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2000 October Report of the Auditor General of Canada

October 2000 Report—Chapter 11

Exhibit 11.5—Typical Projects Funded by the Transitional Jobs Fund and the Canada Jobs Fund

1. An existing company wants to expand its market share by implementing new activities. This company establishes the new activities in an area of high unemployment. Funds are needed to build a new plant, to install equipment and to train employees. The plant will create seasonal and full-time jobs in the area. Partners sharing the cost of the project are a commercial bank (20 percent), the provincial government (30 percent) and the sponsor (10 percent). HRDC's contribution (40 percent) is for capital costs. The jobs will be created once the plant is built and the equipment installed.

2. An existing sawmill operating only during the warm season wants to rejuvenate its facilities to be able to work year-round. The project consists of strengthening the existing structure and acquiring more equipment. This should result in increased production and the creation of new sustainable jobs. HRDC is financing capital costs, while a commercial bank and the project sponsor are partnering for salary costs. HRDC's contribution amounts to 50 percent of the project's total cost.

3. An existing manufacturing company is awarded a major contract for five years, with a possibility of renewal. This will require the company to increase production, and it needs to acquire additional equipment and add an additional shift to increase capacity. The project will create several full-time jobs once the equipment is installed. Partners in the project include a federal economic development agency (10 percent), the provincial government (50 percent), the local development agency (10 percent) and the sponsor (20 percent). HRDC's contribution (10 percent) will finance the salaries of the new employees - up to $10,000 for each job created.

Source: Departmental records