How many jobs does a $300-million repayable investment create?

Industry Minister Tony Clement announced Monday that the federal government is investing $300-million in a $1-billion research-and-development project being undertaken by Pratt & Whitney Canada Corporation.

The press release from the Conservative government says the investment "is expected to create and maintain an average of more than 700 highly skilled jobs during the project work phase and more than 2,000 jobs during the 15-year benefits phase."

Hmmmm. So you may think 700 to 2000 new jobs are being created? Wrong! The key word in that phrase is "maintain."

Yep, thousands of jobs will be maintained, and after checking with Cindy Hoffman at Pratt & Whitney Canada, the $1 billion investment ($300 million from the feds) will create a total of 200 new jobs.

That 200 new job number isn't mentioned once in the press release. Pratt & Whitney says it's adding about 200 engineers. About half of the 200 jobs will be in Mississauga, Ont., and about the rest in the company's Longueuil, Que., facility.

Don't get me wrong, new jobs are a good thing. But inflating the number in a press release to clearly confuse people is simply an old fashioned political ploy.


Harper Government Announces Major Aerospace Investment to Create Jobs and Keep Canada Cutting-Edge


MISSISSAUGA, ONTARIO--(Dec. 13, 2010) - The Honourable Tony Clement, Minister of Industry, today announced a major investment in a $1-billion research and development (R&D) project being undertaken by Pratt & Whitney Canada Corporation. The investment is expected to create and maintain an average of more than 700 highly skilled jobs during the project work phase and more than 2,000 jobs during the 15-year benefits phase.


"On behalf of the Harper Government, I am pleased to announce this major investment, which is creating jobs and strengthening Canada's economy," said Minister Clement. "The project we are investing in today will create and maintain Canadian research jobs, encourage public and private partnerships, and keep Canada at the forefront of the international aerospace industry."


Minister Clement was joined at the announcement by Bob Dechert, Member of Parliament for Mississauga-Erindale.


The project's R&D work, which will take place in Longueuil, Quebec, and Mississauga, Ontario, will lead to lighter aircraft engines with more power, better fuel consumption and improved durability. The engines will give off fewer emissions and make less noise. They will cost less to own and take less time to make.


"I'm proud to say that Pratt & Whitney Canada is one of this country's major investors in aerospace R&D," said John Saabas, President of Pratt & Whitney Canada. "This repayable investment from the Government of Canada will allow us to continue our efforts to make all our aircraft engines quieter and more fuel efficient, which reduces their environmental impact."


"This important refundable contribution from the Government of Canada to Pratt & Whitney Canada is a prime example of the sound partnerships that allow our nation to remain a world leader in aerospace," said Claude Lajeunesse, President and CEO of the Aerospace Industries Association of Canada (AIAC).


This $300-million repayable investment is being made through the Strategic Aerospace and Defence Initiative (SADI), which supports industrial research and pre-competitive development projects in the aerospace, defence, space and security industries to advance leading-edge R&D by Canadian industries.