A company receiving millions in government money to create new jobs is actually cutting them.
Aerospace company Pratt & Whitney had planned a $45-million expansion of its plant near Halifax Stanfield International Airport. The province was kicking in $12 million to help.
But the expansion has been delayed and 45 people at the plant got layoff notices Wednesday. Pratt & Whitney says the economic slowdown is to blame.
The government has already transferred $7 million to the company. Transportation and Infrastructure Renewal Minister Brooke Taylor said the other $5 million would be held back until the expansion goes ahead.
Premier Rodney MacDonald stood by the investment yesterday.
“One of the reasons why we made the investment… is because we knew that it would continue the presence of Pratt & Whitney here in the future, and it would mean they would not be moving such facilities outside of Nova Scotia,” he said.
“It was an extremely important investment at the time, it continues to be an extremely important investment.”
Pratt & Whitney, which makes jet engines, said there has been a drop off in airplane production. The company is laying of 1,000 people worldwide. The Halifax workforce currently sits at about 300 people.