Canadian government announces support for workers in oil and gas sector

Canadian government announces support for workers in oil and gas sector

The Government of Canada announced more than $1.6 billion to support jobs and workers in Canada’s oil and gas sector, as Canada seeks to diversify export markets for its resources beyond the United States. These measures will support workers and their families, foster competitiveness and improve the long-term environmental performance of the oil and gas sector.

This support includes:

$1 billion in commercial financial support from Export Development Canada to be made available to exporters of all sizes to assist companies looking to invest in innovative technologies, address working capital needs or explore new markets.

A new $500-million Energy Diversification commercial financing envelope over three years from the Business Development Bank of Canada to help higher-risk but viable oil and gas small business enterprises weather the current market uncertainty.

These commercial loans can be used to help companies:

increase operational and environmental efficiency

purchase new technology and equipment, or expand into new markets.

A $50-million investment through Natural Resources Canada’s Clean Growth Program in oil and gas projects that will generate investment of $890 million. These projects will use new technologies to reduce energy requirements and improve production and the environmental performance of the oil and gas sector.

$100 million through Innovation, Science and Economic Development Canada’s Strategic Innovation Fund in energy and economic diversification-related projects.

Investments from the National Trade Corridor’s Fund are also available for projects that address bottlenecks in the freight rail system to support the efficiency and fluidity of transportation of all commodities.

A suite of Employment and Social Development Canada services and programs is also available and can be deployed quickly to assist workers who may be negatively affected. This includes Work-Sharing to prevent layoffs and immediate income supports through Employment Insurance. Employment programming such as counselling, job search assistance, training and skills development programs delivered by provinces and territories is also available.

These measures build on recent federal and provincial efforts to support Canada’s oil and gas sector. These include:

the Government of Canada’s $4.5-billion investment in the Trans Mountain Pipeline and related assets;

the Government’s introduction of the Accelerated Investment Incentive announced in the Federal Fall Economic Statement that allows accelerated capital cost allowance rates for tax purposes;

plans to reduce the regulatory burden on Canadian businesses — including those in the oil and gas sector — while continuing to protect Canadians’ health and safety, as well as the environment; and

Natural Resources Minister Amarjeet Sohi’s request that the National Energy Board explore options to optimize pipeline use in Western Canada.

Source / Further information : Natural Resources Canada

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