Eves government investigates new opportunities for eastern Ontario business

PETERBOROUGH, ON, April 9 /CNW/ - The Ernie Eves government is investing

$34,510 to investigate opportunities to develop an industrial hemp fibre

industry in eastern central Ontario, Gary Stewart, MPP for Peterborough,

announced today on behalf of Ernie Hardeman, Associate Minister of Municipal

Affairs and Housing responsible for Rural Affairs.

The project involves analysis of the North American market for industrial

hemp to determine the feasibility of a bio-refinery that processes raw hemp

straw.

"This initiative is part of the Eves government's commitment to breaking

down barriers to creating new opportunities for rural businesses," said

Hardeman. "It addresses the lack of economic development plans and supports

the capacity of hemp farmers in rural Ontario to capitalize on new markets."

Canadian Natural Fibres Ltd., the Greater Peterborough Area Economic

Development Corporation and the Greater Peterborough Business Development

Centre Inc. are providing the balance of the $45,400 funding for this

initiative.

"We're extremely pleased by today's announcement," said Gord James,

executive director of Canadian Natural Fibres Ltd. "This project could provide

Ontario hemp growers and processors with the resources and the information

they need to compete with Europe for the global markets for industrial hemp."

"This project will benefit Peterborough's agricultural and processing

sectors if the study finds there is a viable market to produce industrial hemp

products," said Stewart.

The five-year, $200-million Rural Economic Development (RED) program is

a component of the Ontario Small Town and Rural (OSTAR) Development

Initiative -- a two-part, $600-million initiative launched in 2000 to assist

rural Ontario. To date, the province has invested more than $74 million in 82

approved OSTAR-RED projects, generating total investments of more than $427

million.

The RED program removes barriers to economic growth in rural Ontario by

promoting a diversified business climate, exploring new products and new

markets, creating long-term job growth, and investing in technologies and

sectors that contribute to economic development in rural Ontario.

Disponible en français

For more information visit www.mah.gov.on.ca <http://www.mah.gov.on.ca/>

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For further information: Colin Longhurst, Minister Hardeman's Office,

(416) 585-6758