In the face of an economic downturn and growing deficits, the P.E.I. government should give up on the idea of relocating government departments out of Charlottetown, says the Union of Public Sector Employees.

'We have yet to see where the rural development is going to occur.'— UPSE president Shelley Ward

The province is planning to move the Department of Fisheries and Rural Development to Montague later this year and the Department of Education and Early Childhood Development to Summerside next year. Union president Shelley Ward told CBC News on Thursday it doesn't make economic sense for the government or its employees.

"Our budget is going to be in a deficit situation. Where are they getting the money?" asked Ward.

"They have yet to prove that it's going to be beneficial to anybody. They've said that it's rural development. We have yet to see where the rural development is going to occur. We have many members, employees, who are quite upset about this move, and the cost, not just for taxpayers today but for down the road."

The province is projecting a $50-million deficit for this year.

Ward said a job-exchange problem designed to allow some government workers to trade jobs in order to avoid an hour-long commute hasn't worked out very well, that only a handful of employees will be able to take part.

Government officials responded they didn't expect high numbers of matches for the exchange because the job skills have to be so similar. They said other measures will be in place to help workers deal with moving to a new location.