Town of Channel-Port aux Basques

Business Information Guide Gateway to the Newfoundland Market, Doorstep to the World

2011 Business Information Guide Table of Contents

Introduction ...... 3 Channel-Port aux Basques ...... 3 Location ...... 4 Demographics ...... 5 Education ...... 5 Labour Market ...... 7 Infrastructure ...... 8 Electricity ...... 8 Communications ...... 9 Transportation Services ...... 9 Bus /Courier ...... 9 Trucking/Shipping/Freight ...... 10 Travel ...... 10 Bus & Ground Travel ...... 10 Air Travel ...... 10 Sea Travel ...... 10 Taxation Rates ...... 11 Municipal Tax ...... 11 Tax Credits ...... 11 Direct Equity Tax Credit ...... 11 Manufacturing and Processing Profits Tax Credit ...... 12 Small Business Tax Credit ...... 12 Scientific Research and Experimental Development Tax Credit ...... 12 Film and Video Tax Credit ...... 12 Labour-Sponsored Venture Capital Tax Credit ...... 13 Primary Government Incentive Programs ...... 13 Economic Diversification and Growth Enterprises Program (EDGE) ...... 13 Labour Market Development Agreement ...... 14 Provincial Wage Subsidy Program ...... 15 Channel-Port Aux Basques Business Development Fund ...... 15 Business Development Program ...... 15 Department of Innovation, Trade, and Rural Development ...... 17 Small and Medium Enterprise Fund ...... 17 Business and Market Development Program ...... 18 Financial Services ...... 19 Business Support Services ...... 19 Proven Location & Prior Success Story – Marine Atlantic Inc...... 20 Additional Community Information ...... 21 Recreation, Sports & Leisure ...... 21 Education ...... 21 Cost of Living ...... 22 Health Care ...... 22 Environment ...... 23 Appendix A ...... 24

Gateway to the Newfoundland Market, Doorstep to the World 2 Business Information Guide Introduction This document is confidential and private and intended for the sole use by the Town of Channel-Port aux Basques and approved partners. It is designed to provide detailed information on the community, its current business infrastructure and resources, and the existing Business Development Incentives that are available. This information should prove invaluable to any enterprise in evaluating future business opportunities and the true practicality and effectiveness of utilizing Channel-Port aux Basques as a major service center.

Channel-Port aux Basques Channel-Port aux Basques is the largest community on Newfoundland’s Southwest Coast (2006 Census population 4,319) and is considered the hub of the entire region which has a population of approximately 9,120. The smaller outlying communities (Codroy Valley, Cape Ray, Margaree, Isle aux Morts, Burnt Islands, Rose Blanche, LaPoile & Grand Bruit) use Channel-Port aux Basques for its commercial, retail, professional, recreational, and other related services. Channel-Port aux Basques offers the amenities of any modern region, while providing a pleasant quality of life. As the main "Gateway to Newfoundland," Channel-Port aux Basques provides an essential ferry service to Newfoundland and mainland Canada. In addition to the region being a prime business location, it is also a place to build a healthier lifestyle, with a pristine environment, clean air and water, available housing and land at favorable prices and friendly people.

Channel-Port aux Basques and the surrounding region can easily provide an effective, enthusiastic and educated workforce. With a high school graduation rate of 91.8%, 10% above the provincial average of 82%, the Southwest Coast places third in graduation rates among the 20 economic zones in the province. This strong commitment to education is often continued at the local post-secondary institution, The College of the North Atlantic. The college offers a wide range of business, technical and industrial related courses. There is also an opportunity to provide training to businesses in the area, either through a provincial program or through a customized program that is tailor made for a specific company. Consequently, an educated and trained workforce is readily available for instant benefit to the business industry (see Appendix “A”).

Channel-Port aux Basques and the surrounding region can also boast the existence of a stable workforce. Residents have a strong connection to their home and place great value on family and quality of life. The workforce is skilled in a variety of areas including

Gateway to the Newfoundland Market, Doorstep to the World 3 Business Information Guide primary processing, manufacturing, construction, welding, fabrication, mechanical, secretarial services and information technology. Also, employers can draw upon skilled Newfoundlanders who have moved away. Such people pay close attention to new developments in the province and are more than willing to return to Newfoundland for employment.

Wage rates in the area are favorable since the minimum wage rate is $10.00 per hour (CDN), while an average wage for skilled trade workers is approximately $14.00 per hour, with experienced supervisors and administrators costing approximately $18.00 per hour. Thus, investors can rely on an affordable, stable, and dedicated workforce that will be committed and productive. This cost saving measure is a prime example of one of the advantages businesses realize in Channel-Port aux Basques.

Location The community of Channel-Port aux Basques is located on the Southwest Coast of Newfoundland and Labrador, Canada. The community is the Gateway to the island of Newfoundland when arriving by vehicle. A ferry link provided by Marine Atlantic is the only year-round vehicle link to the island, which annually experiences approximately 400,000 passengers, 130,000 passenger vehicles and 88,000 commercial vehicles. The strategic location of Channel-Port aux Basques provides enormous opportunity for any company within the service, import and export business.

If your markets are across the Atlantic Ocean, Newfoundland and Labrador is 1,000 km closer to Europe than any other part of North America; saving time and money on your transatlantic exports. If your business depends on sea cargo to meet the demands of European or NAFTA markets, then Port aux Basques is your best strategic location. In Port aux Basques, you'll find major worldwide connections: access to major ocean shipping companies and ice free ports, direct access to the Trans Canada Highway and a modern ferry system with mainland connections.

Gateway to the Newfoundland Market, Doorstep to the World 4 Business Information Guide Demographics With an experienced workforce, Channel-Port aux Basques can offer both skills and youth with a wide ranging population age for any business. Below are the population statistics for Channel-Port aux Basques by age group.

Age Characteristics Male Female Total 0-9 Years 195 180 385 10-14 Years 115 105 225 15-29 Years 280 320 610 30-44 Years 405 455 855 44-59 Years 595 570 1170 60-64 Years 130 190 320 65+ Years 295 455 755 Average Age 45.3 46.7 46.1 Source: Statistics Canada Census 2006

Education Education has always been a strength of Port aux Basques with a high school graduation rate of 91.8%, 10% above the provincial average of 82%, placing third in graduation rates among the 20 economic zones in the province. Listed below is the population by post secondary education currently residing in Channel-Port aux Basques. In addition to these statistics are expatriates with various educational backgrounds willing to return to the community providing employment is available. Recently, the community has witnessed multiple former residents returning to fill vacant positions. Having a hardened connection to the town, skilled labour and professional management positions are routinely filled immediately with expatriates.

Educational Attainment Males Females Total High school certificate or equivalent 250 370 620 Apprenticeship or trades certificate or diploma 280 180 460 College or other non-university certificate or diploma 210 320 535 University certificate or diploma below the bachelor level 35 45 80 University certificate, diploma or degree 115 75 190 No certificate, diploma or degree 820 945 1,755

Gateway to the Newfoundland Market, Doorstep to the World 5 Business Information Guide

Major Field of Study Males Females Total Education 40 35 75 Visual & Performing Arts, Communication Technologies 0 10 10 Humanities 15 20 30 Social & Behavioural Sciences, Law 20 30 50 Business, Management, Public Administration 315 20 335 Physical & Life Sciences, Technologies 0 10 10 Mathematics, Computer & Information Sciences 25 10 35 Architecture, Engineering, Related Technologies 400 15 415 Agriculture, Natural Resources, Conservation 0 0 0 Health, Parks, Recreation, Fitness 25 100 125 Personal, Protective, Transportation Services 90 95 185 No Postsecondary Certificate, Diploma or Degree 1,710 1,935 2,375 Source: Statistics Canada Census 2006

While some specific skill sets may not be readily available in the labour market, the local College of the North Atlantic has a great rapport with the Town administration, often accommodating labour needs through specialize training. The college also works closely with the business community in providing training and skills that are in demand locally. With this training facility, the community can meet virtually any labour requirement.

Gateway to the Newfoundland Market, Doorstep to the World 6 Business Information Guide Labour Market Channel-Port aux Basques has a varied industry economy that employs a cross-section of the local population. The statistics below illustrate the total workforce in various industries, with additional information on specific occupations of citizens.

Labour Force by Industry Male Female Total Agriculture & other resource-based industries 75 15 90 Construction 110 0 110 Manufacturing 55 45 105 Wholesale trade 50 10 65 Retail Trade 115 155 265 Finance & Real Estate 20 50 70 Health care & social services 25 155 180 Educational services 40 35 70 Business Services 375 100 475 Other Services 160 270 430 Source: Statistics Canada Census 2006

Labour Force by Occupation Male Female Total Management occupations 80 55 130 Business, finance & administration occupations 55 140 195 Natural, applied sciences & related occupations 90 30 125 Health occupations 20 60 85 Occupations in social science, education, government service & religion 45 50 90 Occupations in art, culture, recreation & sport 10 10 10 Sales and service occupations 205 445 650 Trades, transport, equipment operators & related occupations 420 20 440 Occupations unique to primary industry 45 10 50 Occupations unique to processing, manufacturing & utilities 45 40 85 Source: Statistics Canada Census 2006

With varied industries within the community and multiple occupations of the residents, sill sets are varied and readily transferable to additional industry sectors. The town has previously worked with local companies in their quest for specific labour skills with great success. Coupled with a local college training facility and expatriates willing to return to the community, any industry sector can attain the necessary labour requirements to succeed and prosper.

Gateway to the Newfoundland Market, Doorstep to the World 7 Business Information Guide Infrastructure The infrastructure of Channel-Port aux Basques is centered on services, transportation and technology, with adaptations for additional industries well established. The community is home to one of the largest ice free harbours in Newfoundland and Labrador making the town strategically located for shipment and transportation. Our location at the mouth of the St. Lawrence Seaway, close proximity to both the Eastern Seaboard of North America and European markets is the community’s forte. The community prides itself in location and ease in utilizing the harbor.

The community has ample unused and underutilized infrastructure to meet the needs of any company. Currently the town has approximately 20 available buildings of various capacities to meet most business needs. In addition to this infrastructure, there is both serviced and unserviced land available. Due to a large geography in relation to the population of the area, a large amount of land is available for any business need.

Electricity The Southwest Coast of Newfoundland has one electricity supply company, Newfoundland Power, with the electrical rates listed below.

Utility Company Domestic Rate Business Rate Business Rate Single Phase (<10kWh) Three Phase (<10kWh) Newfoundland Power $15.57/month base rate $17.86/month base rate $35.72/month base rate 9.339 cents/kWh 11.098 cents/kWh 11.098 cents/kWh Source: Newfoundland Power Jan. 2010

Gateway to the Newfoundland Market, Doorstep to the World 8 Business Information Guide Communications Port aux Basques is home to some of the most advanced communications systems in Newfoundland and Labrador. The community is linked to fibre optic cable, making E- commerce and technologically advanced businesses possible. There are two communication providers within the community, Bell Aliant and Rogers. Below are the service offerings for the community and contact information.

Company Service Offered Contact Information Bell Aliant Business telephone service 1-800-563-5400 High speed /Dial-up Internet service Digital cellular service Satellite television service Rogers Business telephone service (P) 709-695-9514

Transportation Services Being one of the major transportation hubs of Newfoundland and Labrador, services in this industry are well developed. Approximately 90% of perishable goods imported to Newfoundland are shipped through Port aux Basques. This is in addition to other goods and materials coming to the island. With such high volumes of traffic, Port aux Basques has one trucking company located within the community, with several other operating from the town on a daily basis. There are also couriers in the area that provide services to regional, provincial and national destinations. Furthermore, UPS, Puralator and Fed-Ex service this area, with additional local couriers available. Below is a list of the transportation services that operate within the community. Bus /Courier Company Service Head Office Shipping Route Contact Gateway Bus Lines Shuttle & Bussing Port aux Basques Port aux Basques - (P) 709-695-9700 Stephenville – Corner (F) 709-695-5669 Brook DRL Coachlines Bussing & Courier St. John’s Port aux Basques – St. (P) 1-888-263-1852 John’s Gateway Courier Courier Port aux Basques Port aux Basques – (P) 709-695-3333 Stephenville – Corner (P) 709-695-9700 Brook (F) 709-695-5669

Gateway to the Newfoundland Market, Doorstep to the World 9 Business Information Guide Trucking/Shipping/Freight Company Service Head Office Shipping Route Contact C & C Enterprises Trucking Port aux Basques Newfoundland (P) 709-695-3313 (F) 709-695-3622 Doyle’s Transport Trucking Port aux Basques Newfoundland (P) 709-695-2738 (F) 709-695-7006 Nate’s Trucking Trucking Port aux Basques Regional (P) 709-695-3702

Terry’s Trucking Trucking Port aux Basques Regional (P/F) 709-695-5696 (C) 709-695-8023 Woodward Group Shipping St. John’s Rose Blanche – (P) 709-292-4302 LaPolie – Grand Bruit Marine Atlantic Shipping St. John’s Port aux Basques, NL. (P) 709-695-4200 – North Sydney, NS. – (F) 709-695-2757 Argentia, NL. Tugboat Service Tugboat Service Port aux Basques Port aux Basques (P) 709-695-3003

Travel There are various modes of transportation available to reach Port aux Basques. Listed below are local and regional services available for travel to and from the community. Bus & Ground Travel Company Route Rates (Adult) Contact DRL Coachlines St. John’s – Port aux $107 1-888-263-1852 Basques Gateway Bus Lines Corner Brook – $33 (P) 709-695-3333 Stephenville – Port aux (P) 709-695-9700 Basques (F) 709-695-9850 Gateway Taxi Regional Destination Dependant (P) 709-695-3333

Air Travel Airport Location Airlines Distance Contact Deer Lake Regional Deer Lake, NL. Air Canada, Provincial 3 Hours (P) 709-635- Airport Airlines, Sunwing, 3601 Westjet Stephenville Stephenville, NL. Provincial Airlines, 1.5 Hours (P) 709-643- International Airport Sunwing, Flair Air 8444 Sea Travel Company Route Rates (Adult) Contact Marine Atlantic North Sydney, NS. – Passenger: $28.75 (P) 1-800-341-7981 Port aux Basques, NL. Vehicle: $81.50 (P) 709-695-4200 *additional charges for extra (F) 709-695-2757 passengers, taxes and fuel surcharge *Please note that rates are based on adult fares and are subject to change. Please contact each service provider for current rates.*

Gateway to the Newfoundland Market, Doorstep to the World 10 Business Information Guide Taxation Rates Newfoundland and Labrador has some of the most competitive tax rates in the country. The tax schedules listed below are aimed to make the province attractive to businesses, while allowing local companies cost savings to gain an advantage on competitors. The tax rates are as follows:

Corporate Income Tax Rates Tax Percentage General 13% Manufacturing & Processing 5% Small Business 5% Payroll tax 2% Financial Corporation tax 4% Insurance Corporation tax 4% Mining tax 15% Mineral Rights tax 20% Utility Corporation tax 2.5% Television Corporation tax 0%

The Harmonized Sales Tax for Newfoundland and Labrador is 13%, which is comprised of the Provincial Sales Tax (PST) and the Canadian Goods and Services Tax (GST). Municipal Tax Port aux Basques offers a very attractive business tax for any company wishing to operate within Newfoundland and Labrador. Below are the current taxation rates.

Channel-Port aux Basques Personal Tax: 9.5 mils per Sewer Tax: Varies year, minimum of $225 on depending on the property. every owner of real Personal sewer tax is $2.50 property within town per month, $30 per year. The sewer tax for business depends on the business Business Tax: range from Water Tax: Residential: 13 mils per year to 100 mils $24/month. Commercial- per year, depending on the Industrial: $22.50/month type of business per unit. Hotels-Motels: $7.75/month per room.

Tax Credits Direct Equity Tax Credit The Direct Equity Tax Credit Program (DETC) is designed to encourage private investment in new or expanding small businesses as a means of creating new jobs and diversifying the economy. An investment credit, in the form of a provincial income tax credit, is available to individuals and arm's length corporations who invest as

Gateway to the Newfoundland Market, Doorstep to the World 11 Business Information Guide shareholders in eligible small business activities. There are two tax credit rates. Where the qualifying activities are undertaken in the Province outside the North East Avalon, a 35% rate applies. Where the qualifying activities are undertaken within the North East Avalon, a 20% rate applies. In cases where qualifying activities are undertaken in both areas, a reasonable proration applies. Manufacturing and Processing Profits Tax Credit This credit applies to corporations that carry out manufacturing and processing from a permanent establishment located in Newfoundland and Labrador. The credit allows a deduction from Newfoundland CIT payable of 9% on Taxable Canadian Manufacturing and Processing Profits. This results in an effective CIT rate of 5% for manufacturing and processing profits. To obtain this credit, corporations should complete a Schedule 300 with their annual income tax return. The Manufacturing and Processing Credit is provided under Section 41 of the Income Tax Act. This credit is administered by Canada Revenue Agency. Small Business Tax Credit The general corporate income tax rate is 14%. However, small businesses are taxed at a rate of 5% on the first $500,000 of active business income. This credit is administered on behalf of the province by Canada Customs and Revenue Agency and is provided under Section 40(3) of the Income Tax Act Scientific Research and Experimental Development Tax Credit This is a refundable credit of 15% of eligible expenditures made with respect to scientific research and experimental development activities carried out in this province. This credit is provided under Section 42 of the Income Tax Act and is administered by Canada Revenue Agency Film and Video Tax Credit This refundable provincial Corporate Income Tax credit is provided for eligible local film projects at a rate of 40% of eligible local labour costs, but may not exceed 25% of production costs. The 2005 provincial budget announced the replacement of two credit caps ($1 million per eligible project or $2 million per corporation) with a single corporation credit limit of $3 million. The corporation must also pay at least 25% of its salaries and wages to residents of the province. The 2005 provincial budget also announced the removal of the restriction that the production corporation, together with any associated corporations, must have less than $25 million in assets.

The corporation must first apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production. Once the project is completed, and financial statements and cost reports finalized, the eligible corporation may then apply for the tax credit. Upon approval from the Department of Finance, the

Gateway to the Newfoundland Market, Doorstep to the World 12 Business Information Guide eligible corporation is issued a tax credit certificate which must be attached to the T2 return. Labour-Sponsored Venture Capital Tax Credit The Labour-Sponsored Venture Capital Tax Credit Act and associated regulations provide for the issuance of a 20% provincial tax credit for an individual who invests in a labour-sponsored venture capital corporation (LSVCC) fund. The maximum annual eligible investment per investor is $10,000.

Individual investors of an LSVCC fund will also be eligible for a matching 15% federal income tax credit. The maximum eligible investment per investor per year is $5,000. An official tax credit receipt must be submitted with the individual's T1 Income tax return. Should an investor redeem shares prior to the minimum eight year holding period, the tax credits are forfeited. Government does not guarantee any investment under the program. An LSVCC fund is required to invest in emerging Canadian growth companies with less than $50 million in assets and 500 employees and at least 75% of salaries and wages paid to residents in the province. A minimum of 75% of the funds raised in Newfoundland and Labrador have to be reinvested in this province within three years after the year in which capital is raised.

The legislation contains penalties in order to ensure compliance and timely reinvestment into eligible businesses. In addition, an LSVCC fund is required to set aside in a trust fund an amount equal to the amount of provincial tax credits issued to eligible investors. Should the registration of an LSVCC fund have to be revoked in the future, any money then remaining in the trust fund is immediately payable to the Crown.

There is one fund registered to date under the provincial Labour-Sponsored Venture Capital Tax Credit program.

Source: Government of Newfoundland and Labrador: Department of Business

Primary Government Incentive Programs Economic Diversification and Growth Enterprises Program (EDGE) The Economic Diversification and Growth Enterprises Program (EDGE) is a Government of Newfoundland & Labrador program that provides a package of incentives to encourage significant new business investment in the province to help diversify our economy and stimulate new private sector job creation, particularly in rural areas.

Eligible Companies A new business or an existing business interested in expanding in the province may apply for EDGE status if it meets the following criteria:

Gateway to the Newfoundland Market, Doorstep to the World 13 Business Information Guide  there is the potential to create and maintain 10 new permanent jobs in the province;  it is prepared to make a minimum capital investment of $300,000 or generate incremental annual sales of $500,000;  it would not establish or expand in the province in the absence of the EDGE incentives;  the EDGE incentives will not give it a direct competitive advantage over other existing businesses in the province; and  the new business activity will have a substantial net economic benefit to the province.

EDGE Incentives Companies approved for EDGE status shall be entitled to the following incentives and benefits:  a 100% rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax for a period of 15 years if it is established outside the Northeast Avalon area;  a 50% rebate on federal corporate income tax for 15 years;  a further five year period of partial rebates on the provincial and federal taxes referenced above, declining by 20% in each year of this phase-out period;  a 100% rebate on municipal property and/or municipal business taxes for 15 years, followed by a five year phase-out of such rebates, where individual municipalities elect to participate in the EDGE Program (Channel-Channel-Port aux Basques is a participant); and  access to unserviced Crown land for $1.00 where such land is required to implement the company’s business plan.

EDGE Facilitator Government will appoint a facilitator to help an EDGE corporation obtain permits, licenses and other government regulatory requirements to proceed with its business plan. Labour Market Development Agreement Under this agreement, the Government of Canada and the Government of Newfoundland and Labrador work together to design and tailor Labour market employment programs to meet the specific needs of communities, employers and the unemployed in Newfoundland and Labrador to complement provincial programming in this domain. The Agreement is co-managed to achieve effective integration between federal and provincial employment development programs and to ensure appropriate linkages are made to the Province's economic growth agenda (i.e., to ensure the particular programs are relevant to emerging opportunities in the economy). The Labour Market Development Agreement (LMDA) partners strive to help clients meet measurable and achievable educational, employment and economic development goals.

Gateway to the Newfoundland Market, Doorstep to the World 14 Business Information Guide Program Activities Three "active" employment programs have been developed in the Agreement that are available in this zone are:  Targeted Wage Subsidies  Self-Employment Assistance  Job Creation Partnerships

In this region, this program is administered by the local Service Canada office in conjunction with a local committee whose mandate is to review all applications in a timely fashion. Provincial Wage Subsidy Program The Province of Newfoundland and Labrador has a wage subsidy program whereby it will subsidize employees of specified new industries (e.g. Call Centers, IT) for up to a maximum of five years. For businesses established outside the Northeast Avalon Area employers can receive up to 10% of their payroll in the form of a rebate paid upon specified criteria (previously negotiated) being met by the employer.

According to the Department of Industry, Trade & Rural Development there is no written documentation on this program, as many provinces compete with one another to offer similar incentives to attract new businesses. All deals are negotiated on an individual basis and are private and confidential. This incentive is in addition to all other government programs. Channel-Port Aux Basques Business Development Fund The Town of Channel-Channel-Port aux Basques has recently created an economic development fund for the purpose of developing new, sustainable business ventures in the community. Specific emphasis has been placed on developing business opportunities that relate to Tourism, the Port Corporation, Manufacturing or Information Technology. This fund can be adapted to fit all types of needs and/or uses.

Specific business proposals would have to be presented to the Town along with the purpose and request for the funds. Successful candidates would include projects that include considerable economic benefits to the Town and which have significant ties to the community. Business Development Program This Atlantic Canada Opportunities Agency (Government of Canada) program is designed to help you set up, expand or modernize a business. Focusing on small- and medium-sized enterprises, the program offers access to capital in the form of interest- free, unsecured, repayable contributions.

Eligible activities include business studies, capital investment, training, marketing, quality assurance, and not-for-profit activities that support business in the region.

Gateway to the Newfoundland Market, Doorstep to the World 15 Business Information Guide Assistance is also available to help bid for and acquire public and private procurement contracts or to develop an innovative product or service.

Overall, the project should meet the following criteria:  Provide economic benefit to an area or a community  Demonstrate need for financial assistance  Be economically viable.

How much assistance is available? ACOA can provide an unsecured, interest-free loan towards the eligible costs of a new establishment, expansion, modernization or a project which improves your competitiveness. ACOA's contribution is repayable on a time schedule tailored to your circumstances. The maximum level of assistance under the program is as follows. Costs eligible for up to 50% financing include:  The construction or acquisition of a building  machinery and equipment needed for the project  working capital requirements related to an establishment or expansion project  site improvements such as land clearing and paving required for the project  leasehold improvements required for the project  leased equipment and conditional sales contracts  infrastructure such as sewer and water needed for a project  self-built assets  intangible assets such as patents, trademarks and licenses  start-up costs such as insurance and interest capitalized during construction

Costs eligible for up to 75% financing include:  Marketing: Includes the development of a marketing plan, the hiring of marketing expertise to implement the plan, and related marketing activities such as labeling, packaging, promotional materials, advertising, product demonstrations and participation at trade shows.  Training: Includes the development of a training plan, the hiring of training expertise to implement the plan and related activities such as training materials, seminar fees, and wages during the time that employees received off-the-job training.  Productivity/Quality Improvement: Includes the development of a productivity or quality improvement plan, the hiring of expertise to implement the plan, and related activities such as obtaining a recognized quality certification such as ISO, and the cost of needed technical equipment.  Innovations: Includes costs related to researching and developing new or improved products, services and processes such as the labour costs of expertise, materials, special equipment, testing and patents.  Consultant Advice: Includes the cost of hiring a qualified consultant to prepare a business plan, feasibility study, investigate licensing opportunities, conduct a venture capital search, technology transfer search or provide advice to improve your business skills.

Gateway to the Newfoundland Market, Doorstep to the World 16 Business Information Guide  Contract bidding: Includes the cost of improving your competitive ability to bid on and acquire public and private sector contracts.  Business proposal development: Includes the cost of turning your idea into a viable business proposal, example the completion of feasibility study, prototype development, and gathering information on markets and raw material suppliers. Maximum contribution is $10,000 for this activity.

Department of Innovation, Trade, and Rural Development Small and Medium Enterprise Fund The Small and Medium Enterprise Fund provides term loans and equity investments to small and medium-sized businesses in strategic growth sectors with special emphasis on value-added manufacturing, information technology, aquaculture, bio-technology, marine services, agrifoods and tourism, where local competitive impact is not an issue. The fund will also target businesses which have export potential and need assistance to enter or expand in external markets.

Funds are provided to complement funding from conventional sources where a need has been demonstrated. The funding is also intended to increase the capital base of businesses allowing them to lever new private-sector investments.

Program Activities Loans may be used for start-up, modernization, or expansion of a business venture and may include: . purchase of fixed assets including land, building, and equipment, excluding on- road vehicles, snowmobiles and ATV's; . construction and/or expansion or renovation of building(s) including leasehold improvements; . working capital for growth; and . the purchase of intangible assets where such assets form an integral part of a business venture (e.g. patents, technology rights).

Eligible Applicants Loan applications may be considered from a proprietor, partnership, corporation, co- operative or non-profit commercial organization operating within the province. All types of business and sectors are eligible, except real estate services, retail, service and wholesale operations, beverage rooms and taverns. The business applying must demonstrate: . leveraged funding including client commitment; . market potential; . strong experienced management; . net economic benefit / job creation; . the potential for viability, sustainability and growth;

Gateway to the Newfoundland Market, Doorstep to the World 17 Business Information Guide . that it is unable to obtain sufficient funding under reasonable terms and conditions from conventional sources; and . that the funding support is essential to the success of the business.

Available Funding Term Loan: Up to $500,000 per project is available at the department’s base rate plus 3% interest with an applicant investment of up to 20% of project costs. Equity Loan: Up to $500,000 per project with an applicant investment of up to 20% of project costs. Business and Market Development Program The Small Business and Market Development Program provides new entrepreneurs and expanding small businesses with funding to help them acquire the necessary expertise to pursue new business ideas and new markets for their products or services. The program is intended to support new growth opportunities in the economy, such as value-added manufacturing activities and export-oriented opportunities.

Program Activities The Small Business and Market Development Program will provide support in three main areas:  new market development activities or researching new product development opportunities;  technical feasibility research relating to potential new business opportunities; and  acquiring external expertise on production processes, marketing, financial management or other internal company needs for growth and expansion.

Eligible Applicants Small businesses (those with less than 50 employees and less than $5 million in annual sales) located and operating in Newfoundland and Labrador, including corporations, co- operatives and other similar structures, are eligible applicants. The business must demonstrate that it has the appropriate financial structure and management ability to carry out the proposed project.

Ineligible Activities The program will not fund pre-commercial industrial research and development activity. Nor will it fund generic business plans for new business start-ups or expansions unless extenuating circumstances exist. Funding must be used to pay actual incremental costs incurred and paid by the company. In kind or "sweat equity" contributions are not eligible costs.

Available Funding Up to $25,000 in the form of a grant is available to eligible applicants. These funds must be matched on an equal basis by the business itself.

Gateway to the Newfoundland Market, Doorstep to the World 18 Business Information Guide

Financial Services Each of the financial institutions for Port aux Basques offer competitive business and personal rates.

Institute Type Location Contact Bank of Nova Bank Port aux Basques (P) 709-695-5630 Scotia (F) 709-695-9736 Bank of Montreal Bank Port aux Basques (P) 709-695-5600 (F) 709-695-7867 Codroy Valley Credit Union 1. Codroy Valley (P) 709-695-7000 Credit Union /Cooperative 2. Port aux Basques (F) 709-695-7014

Business Support Services The community offers a wide range of business support services to assist businesses in any sector and any size. To ensure every business has the opportunity to prosper and become successful within the town, Port aux Basques has numerous support systems available.

Organization Services Location Contact Atlantic Canada Business plan development, Financial services, Corner Brook 1-800-668-1010 Opportunities information network, business skills (P) 709-637-4477 Agency (ACOA) development, professional development, (F) 709-627-4483 technical assistance, Business Development Program, focus on Atlantic Canada, focus on sustainable development Gateway Community Business plan assistance, financial services, Port aux Basques (P) 709-695-7406 Development financial assistance, business counseling, (F) 709-695-9726 Corporation business service network, technical assistance, partnership with ACOA, youth programs Port aux Basques & Active participation in business community, Port aux Basques (P) 709-695-3688 Area Chamber of information network, one voice of solidarity in (F) 709-695-???? Commerce business community Newfoundland & Business networking, professional development, Corner Brook 1-866-632-5069 Labrador business consulting, financial advice and (P) 709-632-5069 Organization of assessment, woman focused approach (F) 709-632-5069 Women Entrepreneurs Department of Business plan assistance, financial services, Port aux Basques (P) 709-695-9871 Innovation, Trade & business counseling, financial assistance, (F) 709-695-5817 Rural Development business service network, technical assistance Services Canada Employment listings, funding information, Port aux Basques (P) 709-695-5000 resources for entrepreneurs, workplace (F) 709-695-9671 innovations, labour market trends, training and career development skills Business Financial and consulting services, small Corner Brook (P) 709-637-4515 Development Bank of business development; financial aid, assessment (F) 709-637-4522 Canada and advice; focus on technology and exports

Gateway to the Newfoundland Market, Doorstep to the World 19 Business Information Guide Proven Location & Prior Success Story – Marine Atlantic Inc.

Marine Atlantic is a Canadian Federal Crown Corporation that provides a vital marine transportation link across the Cabot Strait between Newfoundland and Labrador and mainland Canada. This service is provided in compliance with the constitutional agreement between the Province of Newfoundland and Labrador and the Government of Canada, as well as the Marine Atlantic Inc. Act. Marine Atlantic Inc. reports to the Parliament of Canada through the Minister of Transport. One of the company’s great strengths is its well-trained workforce. Employment peaks at approximately 1200 employees during the busy summer season. Employees work at shore locations and aboard the vessels.

In 1998 Marine Atlantic Inc. relocated its Corporate Head Office from Moncton, New Brunswick to Newfoundland. Channel-Port aux Basques was chosen as the location to set up the Finance, Administration & Information Technology Offices of the company. This new facility provides all of the financial, accounting, Information Technology and reservation systems and functions for the company and employs approximately 40 people (this does not include the approximately 100 people working at the company’s separate ferry terminal facility).

During the transition/relocation Marine Atlantic successfully attracted numerous “ex- patriots” from Channel-Port aux Basques and the surrounding region to return to Newfoundland. These young people were highly educated, energetic, skilled professionals who were anxious to return to an employment opportunity in their native Province. These employees supplemented the local workforce of clerks, secretaries and IT support staff, and came from extensive work careers and backgrounds that included Accountants, Engineers, High Level Managers (IT & Finance), Mid-Level Management and Executive Assistants. Marine Atlantic is a prime example of how a large corporation can relocate to Channel-Port aux Basques and operate a significant portion of its operations in a cost effective, business-friendly environment.

Gateway to the Newfoundland Market, Doorstep to the World 20 Business Information Guide Additional Community Information Recreation, Sports & Leisure Port aux Basques is home to the Bruce II Sports Complex which houses a four-lane swimming pool, a six-lane bowling alley, an ice rink, two curling sheets, conference facilities and a fitness centre. The areas also has many organized sporting leagues including softball, figure skating, minor hockey, bowling, swimming and organized fitness classes for all levels.

Residents of the area also partake in other non-organized activities such as running, cross country skiing, kayaking and walking. There are opportunities in the area to develop more recreational activities by utilizing the natural resources and rugged landscape of the area. These opportunities provide many outlets for physical activity. Education Port aux Basques has a low pupil-teacher ratio resulting in smaller class sizes. Students get a personalized education that they might not be able to get in a larger centre without resorting to private schooling. All core subject areas are personally taught through the local school system including Physics, Chemistry, Biology, Mathematics and English.

Public health nurses work with the schools to ensure health, nutrition, and other student needs are met. Each school has a liaison police officer who deals with safety and any other issues of importance that may arise in the community. Furthermore, the community is dedicated to providing a well-rounded education through its many continuing education and professional development courses.

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The College of the North Atlantic (CNA) campus in Port aux Basques has been in operation with college status since 1988. The college is publically owned and offers various diploma programs in business administration, office administration, and common first year engineering technology. If there is a course or program that is in demand in the area, the college will either provide the course at their facilities or through the distance education learning program. The college also offers programs in various trades such as welding, metal fabrication, and non-destructive testing (NDT). The NDT program is one of the most elite in the country. Cost of Living One of the most appealing aspects of Port aux Basques is the low cost of living. We are pleased to offer some of the lowest costs in the province. The housing available is generally in good to excellent condition.

Location Average Apartment Average Housing Costs Rental Costs (2-3 Bedroom Bungalow / 2 Story House) Coastal Communities $300/month $30,000 - $40,000 Port aux Basques $325 - $350/month $60,000 Codroy Valley Area $300/month $50,000 Source: Thrones/Royal LePage Reality Real Estate Agents Health Care Port aux Basques has one hospital, the Dr. Charles L. LeGrow Health Centre, which stands as a modern health care facility. It is designed as a district hospital with 50 beds, an extended care wing and an acute care wing, with an outpatients area for emergencies. The Health Centre is fully accredited and provides primary and continuing care services for the region. The hospital provides other services including public health nursing and clinics, physiotherapy, laboratory and x- ray services, occupational therapy, speech- language pathology, and a senior citizens day care program. The community also has four private health care practices that support the hospital, boasting one of the largest concentration of physicians per capita on the West Coast of Newfoundland.

The community is less than three hours from the major regional hospital in Corner Brook and nine hours from one of Atlantic Canada’s largest health centres in St. John’s. Port aux Basques is also supplemented in its health care offerings through ground and air ambulance services.

Gateway to the Newfoundland Market, Doorstep to the World 22 Business Information Guide Environment Bordered by the Atlantic Ocean, more specifically the Gulf Stream, the ocean is evident in the weather conditions of Port aux Basques. The community has winters with temperatures that are higher than more inland areas. During the summer months, temperatures tend to be slightly cooler in nature, lasting nearly four months in length. Due to the coastal location, ocean breezes affect the temperatures that are slightly higher inland.

Only 30 minutes from Port aux Basques, the Codroy Valley is the summer destination for many local residents. The Codroy Valley experiences a delightful climate – warm, sunny summers that begin in May and last until October, with shorter, but cooler winters. In addition to having the most frost free days in Newfoundland, the Codroy Valley boasts some of the richest soils in the province, showcasing its potential to be an agricultural hub.

The temperate climate of the region and participation levels is illustrated below:

Climate Indicator Port aux Basques Codroy Valley Area Coastal Communities Average Annual 1217.7cm 1147.5cm 1334.9cm Rainfall (cm) Average Annual 343.4cm 386.8cm 326.6cm Snowfall (cm) Average Spring 3.05ᵒC 6.53ᵒC 4.93ᵒC Temperatures Average Summer 12.73ᵒC 14.97ᵒC 13.33ᵒC Temperatures Average Fall 7.07ᵒC 7.67ᵒC 7.53ᵒC Temperatures Average Winter -4.60ᵒC -4.67ᵒC -4.27ᵒC Temperatures

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Appendix A

College of the North Atlantic

The Port aux Basques Campus College of the North Atlantic (CNA) is part of the public college system operating in the Province of Newfoundland and Labrador. The College is located on the Southwest Coast of the province, and offers training across the following disciplines: o Welding o Metal Fabricator o NDT technician o Business Administration o Office Administration o Cabinet Making

CNA’s graduates are recognized world wide and work extensively throughout the manufacturing industry. The College is very interested in building a working relationship with any private enterprise that would be mutually beneficial to both organizations.

The Campus can also provide training in advanced welding techniques, post journey training, and CWB testing. The College is also interested in training our staff to be able to meet additional training requirements of industry. The opportunity to customize training opportunities to meet additional labour requirements can also be investigated.

By locating in our region, any enterprise would have direct access to approximately 100 annual graduates from our trades programs. In addition to this there would be opportunities to arrange work terms for students within our trades and business study programs. This would be an opportunity to directly evaluate students in an on the job setting.

In addition there are approximately 100 welder/fabricators with direct ties to the local communities that would be interested in local work opportunities. These people have gained incredible work experiences and attained certifications that are recognized world wide.

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