Helping aerospace soar

Mike Carson
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Innovation and Advanced Learning Minister Allen Roach, second right, shakes hands with Jeff Poirier, director, Aerospace Association of P.E.I. following the minister’s announced that the Aerospace Tax Rebate Program will continue for another ten years. Taking part in the announcement are Shawn McCarvill, president of Slemom Park and MLA Paula Biggar, Tyne Valley-Linkletter.

SLEMON PARK — The P.E.I. aerospace industry will continue to receive a major tax break from the provincial government.

Innovation Minister Allen Roach was at Slemon Park on Thursday to announce an extension to the Aerospace Tax Rebate Program.

“This will be for qualified companies, both existing and new to Prince Edward Island,” the minister said. “Innovation P.E.I. has successfully used the Aerospace Tax Rebate Program to attract and retain companies since 1993.

“This program is set to expire in a couple of weeks, in fact, on Dec. 31 of this year.

“After much discussion, by stakeholders and by colleagues, we decided to extend the Aerospace Tax Rebate Program for another 10 years.”

Roach said companies would be eligible to join the program for a period of 10 years once they meet the required criteria. Companies must maintain 20 employees for a payroll in excess of $700,000 a year.

He said the aerospace sector on Prince Edward Island has grown in sales from $5 million in 1992 to more than $360 million in 2011.

The direct payroll averages $39 million per year, generating about $3.7 million in provincial income taxes, and more than 3,500 jobs.

“A lot of these jobs are extremely well paying jobs,” the minister said.

“The aerospace industry is an extremely important sector on Prince Edward Island.”

“We want to continue to accelerate the success of our existing companies while continuing to make Prince Edward Island an attractive location to invest,” Roach said.

“When we talk about the dollar value, $360 million in export sales and the salaries that are here, but the spin-offs that circle around that are significant. So when we include all of that together, we’re looking at over $735 million per year that circulates as a result of the aerospace industry on Prince Edward Island and that is very significant.”

Roach said Slemon Park’s reputation, as an aerospace centre is global.

“I think the big eye-opener for me was when I went to Farmborough, England, last July,” he said.

“That certainly gives you a different perspective on the aerospace industry and how global it is and how competitive it is.

“I also had the opportunity to visit a few aerospace companies in the U.K. while I was there.

“When you get to speak to some of these people that have been in the industry, and some of them third generation families that have been in the aerospace industry, and get their perspective on it, I can tell you that Slemon Park is recognized world wide as being one of the premier places for the aerospace industry.”

“When you get that kind of recognition globally for Slemon Park in particular and the Summerside area, it’s something when you look at the competition out there,” he said.

Geographic location: Prince Edward Island, SLEMON PARK, Farmborough England U.K. Summerside

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Recent comments

  • kevin
    December 16, 2012 - 18:27

    THIS GOVERNMENT IS PATHETIC, --- sure give a break for 10 years, - but continue this for ever, stupid. These are big profitable companies, just enhancing the buttom line on the backs of the tapxayers of PEI----- love paying HST so these companies can enhance the pay of their CEOs and upper management, -- again on the back of the PEI taxpayers. - we are absolutely crazy. Roachi stands their with the grin on his face, - big guy playing with the big boys, - on the back of the taxpayers, --- but what does he care, he who is double dipping with his big RCMP pension, ---

  • SG
    December 16, 2012 - 09:32

    I'm confused. Didn't I read on this site that Our Government had to Cut Back due to our large Deficit? Didn't I read not long ago about many Islanders' Jobs being cut? Didn't I read just yesterday that Islanders' are now going to pay a 2.2 tax increase on their Electricity in March & April 2013 in addition to HST and followed by another 2.2% increase 2014 and 2015? Why should Island Taxpayers be suffering due to our Government's tax increases on consumers while our AeroSpace Industry and other Business Entities are receiving Tax Rebates and decreases? Why are Island Industries and Business Entities receiving tax decreases and incentives while Island consumers are receiving Tax Increases?

  • Peter Llewellyn
    December 16, 2012 - 09:03

    Interesting article . Using numbers given by the Minister direct payroll was $39 Million for 3500 jobs this equals an average yearly wage of $11,142 ???.

    • Joshua Counter Tenor
      December 16, 2012 - 10:16

      See Pete, this is why you failed in politics. You are after the Liberals to bring in jobs but when they do you still complain. If you study the industry I am sure you will see your math is incorrect on the annual wage. Yes, some of the entry level pay is probably low, but it is that with all jobs.

    • peter llewellyn
      December 16, 2012 - 12:37

      Heh Joshua, it's not my math I am simply using the numbers provided by the Minister . Have a go at the Math Joshua and see what numbers you come up with

  • LeftAerospace
    December 16, 2012 - 09:02

    " "A lot of these jobs are extremely well paying jobs,” the minister said." Ah, the great lie of Aerospace PEI. These companies are here for one reason only...cheap labour.

    • Bill Compie
      December 16, 2012 - 10:09

      Left Aerospace, That's probably why you don't have a job. Your principles make it impossible for you to get off your butt and work for wages as low as you claim the aerospace industry pays. I really admire a guy who can sit slurping double doubles and smoking on the curb all day while you wait for that just right paying job that never seems to come while hoping the snow does not slow down the government cheque.

  • Island businessman
    December 16, 2012 - 07:28

    gee, sure would be nice for me to get a tax break...I guess I haven't been picked.

    • Islander
      December 16, 2012 - 10:07

      Why don't you start up a business that is in aerospace so you can get your tax break. But after you buy the machinery, acquire the proper certifications to be able to sell any of your aerospace product (which by the way can take months and some cases years to acquire) , hire the people, etc you come back on here and tell how much it has cost you and tell me if that tax break is worth spending that kind of money. That tax break, which is a good thing, is just a drop in the bucket compared to what these companies spend to not only get started but to keep their doors open as well. That part of the story never gets understood or taken into consideration.

  • Garth Staples
    December 16, 2012 - 06:10

    Space seems appropriate.