PROJECTS APPROVED UNDER NORTHERN DEVELOPMENT AGREEMENT

Road upgrading and value-added forestry are supported in three projects announced today under the Canada-Saskatchewan Northern Development Agreement (NDA).

The announcement to invest more than $1.3 million was made by Federal Finance Minister Ralph Goodale, on behalf of Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport), Saskatchewan Northern Affairs Minister Buckley Belanger and Northern Development Board Corporation Chair Al Rivard for:

· Further upgrades to the seasonal road between Points North and Stony Rapids;

· A study near Cumberland House on harvesting fiddlehead ferns as a gourmet food product; and

· Research in La Ronge on distilling essential oils from boreal forest plants.

"These investments could have a lasting impact on economic development in Northern Saskatchewan," Goodale said. "By supporting projects like these, the Government of Canada gives northern communities the opportunity to create sustainable growth that will result in jobs and a better quality of life for their residents."

"The Northern Development Agreement is helping northerners broaden their opportunities for community growth," Belanger said. "Improvements to roads not only stimulate businesses and jobs, but improve the standard of living for northerners by reducing the cost of importing goods and accessing services. Research projects, meanwhile, aim to add value to our renewable resources and diversify our economy."

"The Northern Development Board Corporation has always maintained that investments made from the Northern Development Agreement should position northerners to lead in the development of the northern economy," Northern Development Board Corporation Chair Al Rivard said. "These infrastructure and innovative investments underscore that philosophy."

The Canada-Saskatchewan Northern Development Agreement is providing $20 million over five years (2002-2007) for economic development initiatives in Northern Saskatchewan.

Details respecting the three initiatives:

· $1,266,041 for Athabasca Economic Development & Training Corp. for two components: road construction ($1,100,000) on the Athabasca Seasonal Road between Points North and Stony Rapids, and a heavy equipment operator training program ($166,041). The operator training component will give 20 trainees simulator and classroom training at Points North for the operation of a backhoe and rock trucks, eventually moving on to actual on-site road construction work. The road construction will include padding rock and/or re-grading the hill at kilometre 84.

· $43,550 for Waskewei Forest Products Co-operative Limited to establish a non-timber forest products operation in the region of Cumberland House. The project will concentrate on ostrich ferns, more commonly referred to as 'fiddleheads', as a potential gourmet food product. Funding will train local residents in the best techniques for harvesting and processing ostrich ferns. Saskatchewan Northern Affairs has also recently approved $23,760 in assistance through the Northern Development Fund.

· $25,000 for La Ronge Wild Rice Corp. to examine steam distillation of essential oils from northern plants. Variation in oil quality will be assessed to determine plant species, time of harvest, and handling factors in order to obtain the highest quality of essential oils, which are used in aromatic products and "natural medicine" products. The project has the potential to diversify operations of an established northern company, and it will expand the knowledge of an untapped northern resource. The Northern Development Fund is providing another $15,000, while Saskatchewan Agriculture and Food is contributing $2,500 in-kind.

Funding for this initiative was provided for in the federal Budget 2005 and the provincial Budget 2005.

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For More Information, Contact:

Renée Gillen ce of the Minister of Western Economic Diversification and Minister of State (Sport) Ottawa Phone: (613) 954-1110	Scott Boyes Northern Affairs La Ronge Phone: (306) 425-6669
Joanne Mysak Western Economic Diversification Canada Saskatoon Phone: (306) 975-5942	Dean Desjarlais Northern Development Board La Ronge Phone: (306) 425-2444