NEW $50-MILLION WESTERN ECONOMIC PARTNERSHIP AGREEMENT SIGNED

Public Works and Government Services Canada Minister Ralph Goodale, on behalf of Industry Minister Allan Rock and Stephen Owen, Secretary of State (Western Economic Diversification) (Indian Affairs and Northern Development) and Saskatchewan Minister Responsible for Information Technology Andrew Thomson today announced a $50-million dollar joint agreement that focuses on increasing the competitiveness and productivity of the Saskatchewan economy.

The Governments of Canada and Saskatchewan will each commit $25 million over the next five years to the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA).

Funding will be put into cost-shared initiatives that further develop Saskatchewan's small and medium-sized business sector; support economic and technological innovation for a more competitive and globally-based business environment; encourage increased Aboriginal participation in the economy and the workforce; assist in increased diversification and value-added processing activities; and increase the economic opportunities that make Saskatchewan communities more sustainable.

"This new agreement highlights the Government of Canada's commitment to strengthening Saskatchewan's economy through thoughtful and meaningful investments," Minister Goodale said. "Under the previous WEPA, the federal government's commitment of $20 million supported innovative projects such as the Petroleum Technology Research Centre and the T.rex Discovery Centre. Ultimately, through our partnership and investments, we are improving the quality of life for all Saskatchewan residents."

"Through this new investment in infrastructure, the agreement will help Saskatchewan provide businesses with more tools to succeed in the knowledge-driven global marketplace," Minister Thomson, representing Industry and Resources Minister Eric Cline, said. "It's an important part of our plan to further grow our robust economy, ensuring that our key sectors are among the most competitive anywhere."

"Saskatchewan is home to a number of important clusters of economic development, including biotechnology, renewable fuels and the Canada Light Source," Industry Minister Allan Rock said. "Partnerships like the WEPA will strengthen these and other priorities that will attract business development in the province."

"Western Economic Diversification Canada is pleased to partner with the Government of Saskatchewan in a new WEPA to help Saskatchewan communities," Secretary of State Owen said. "The department is committed to ensuring that social, environmental and economic factors are considered, as they are through this agreement, to help communities take advantage of economic opportunities that can help them remain dynamic and viable."

A management committee will be formed to administer the agreement with representation from Western Economic Diversification Canada and Saskatchewan Industry and Resources.

Individual commercial businesses or commercial activities will not be eligible for support. Eligible applicants must be legal entities and include non-profit organizations; post-secondary institutions, hospitals or regional health care centers engaged in research; or other provincial agencies or legal entities created by the provincial government.

Saskatchewan is the first of the four Western provinces to sign comparable agreements with the federal government. The $25-million federal allocation for Saskatchewan is part of a $100-million Government of Canada investment in the West through the WEPAs.

Funding for this initiative was provided for in the February 2003 federal budget and the March 2003 provincial budget.

-30-

Note to news directors and assignment editors: Backgrounders attached.

-30-

For More Information, Contact:

Joanne Mysak Western Economic Diversification Canada Saskatoon Phone: (306) 975-5942

Bob Ellis Industry and Resources Regina Phone: (306) 787-8277