Premier Rodney MacDonald announces an extra $175 million for the Industrial Expansion Fund on Tuesday. (CBC)

Nova Scotia's minority Tory government is handing over another $4 million to businesses as it tops up a cabinet-controlled fund.

Premier Rodney MacDonald announced Tuesday that his government is putting an extra $175 million into the Industrial Expansion Fund this fiscal year.

It's the single largest infusion of cash into the fund since it was created in the 1950s.

The premier said the move will ensure more money is available to help businesses maintain jobs and create new ones in this global recession.

"We're increasing our commitment to economic development in Nova Scotia, making more money available to support businesses that are ready to expand, invest in new technology and improve productivity and competitiveness," MacDonald said.

The province announced help for four businesses Tuesday:

• Ledwidge Lumber Company — $1.2-million bridge loan for land being acquired by the Crown.
• Apple Valley Foods — $1.5-million loan guarantee for future growth.
• LED Roadway Lighting — $1-million interest-bearing loan to tap into international markets.
• NovaScotian Crystal — $300,000 loan guarantee to restructure its operations.

Doug Ledwidge said his family run business in Enfield will use the money to buy extra wood.

"If we don't build large inventories of logs and the spring breakup is long, then we can run out of material and then there does require to be a layoff," said Ledwidge.

NovaScotian Crystal recently turned to the court for protection from creditors. Nevertheless, said president Rod McCulloch, taxpayers shouldn't worry this is a risky government transaction.

"We've got a lot of crystal inventory so the security that the province has through the bank guarantee is against that inventory," McCulloch said.

MacDonald said Nova Scotians can expect other announcements over the next few weeks as more businesses seek help.

Re-election strategy

Liberal Leader Stephen McNeil wants to know how the premier found $175 million for his "political slush fund."

McNeil accused MacDonald and his cabinet of playing politics with taxpayers' money, and not moving the economy forward. He said the Tories haven't provided a timely fiscal update, business plan or detailed infrastructure plan.

McNeil is also suspicious of the timing, noting that in 2006, the Tories put $50 million into the Industrial Expansion Fund leading up to the election.

"It's intended to save one job, and that is the job of the premier — not the jobs of ordinary Nova Scotians," McNeil said.

McNeil wonders why the funding isn't channelled through Nova Scotia Business Inc., the provincial business development agency created in 2001 to keep business incentives at arm's-length from the government.

NDP Leader Darrell Dexter said this kind of money should not be controlled by cabinet.

"The Achilles heel of the process is that there is no oversight from an independent arm's-length organization," Dexter said.

Cabinet has given out as much or more than NSBI in four of the past five years. Between April 2008 and last month, cabinet promised business incentives and loans totalling nearly three times the amount offered by NSBI.

MacDonald rejects criticism that the Industrial Expansion Fund is a political slush fund.

"This fund was actually put in place, I believe in 1952, so it's seen many successive governments, and it continues to be a mainstay because it's working," MacDonald said.

A provincial election is expected this year. The last one was in June 2006.