Regional Development Incentives Act (R.S.C. 1970, c. R-3)

Marginal note:Criteria for determining amount of incentive

6. Subject to this Act, the Minister may authorize the provision of a development incentive in the maximum amount provided for by this Act or in any lesser amount, and in determining whether to authorize the provision of a development incentive in the maximum amount so provided for or in any lesser amount, the Minister shall take into consideration the following factors:

• (a) the extent of the contribution that the establishment, expansion or modernization of the facility would make to economic expansion and social adjustment in the designated region;

• (b) the probable cost to provincial, municipal or other public authorities of providing services or utilities required for or in connection with the facility;

• (c) the amount or present value of any federal, provincial or municipal assistance given or to be given, other than under this Act, in respect of the establishment, expansion or modernization of the facility;

• (d) the probable cost of preventing or eliminating any significant air, water or other pollution that could result from the establishment, expansion or modernization of the facility;

• (e) in the case of any proposal to establish or expand a facility constituting the necessary components of a processing operation, whether the resources to be exploited would be adequate, on a sustained-yield basis, to support the facility together with existing facilities that utilize the same resources; and

• (f) such other factors relating to the economic and social benefits and costs of the facility as the Minister considers relevant.

Marginal note:Ineligible facilities

• 7. (1) No development incentive may be authorized under this Act for the establishment, expansion or modernization of any facility if, in the opinion of the Minister,

  • (a) it is probable that the facility would be established, expanded or modernized without the provision of such an incentive; or

  • (b) the establishment, expansion or modernization of the facility would not make a significant contribution to economic expansion and social adjustment within the designated region.

• Marginal note:Idem

  (2) No development incentive may be authorized under this Act for the establishment, expansion or modernization of any facility the capital costs of which would not, in the opinion of the Minister, exceed such minimum amount as is prescribed by the regulations.

Marginal note:Servicing expenditures as approved capital costs

• 8. (1) In calculating the amount of any development incentive for the establishment, expansion or modernization of any facility, there may be included in the approved capital costs of establishing, expanding or modernizing the facility any capital expenditures made by the applicant to provincial, municipal or other public authorities for the provision of services or utilities required for or in connection with the facility, if the Minister is of the opinion that the expenditures were reasonably and responsibly made, but no such expenditures shall be so included in excess of 20% of the total amount of the approved capital costs of establishing, expanding or modernizing the facility, after deducting from those approved capital costs all federal, provincial and municipal grants or other financial assistance made or to be made in connection therewith or for which the applicant would ordinarily have been eligible by reason of the establishment, expansion or modernization of the facility.

• Marginal note:Limitation re capital to be employed in the operation

  (2) In calculating the amount of any secondary development incentive for the expansion of any facility, there may be included in the capital to be employed in the operation only such part of that capital as is to be employed in connection with the manufacturing or processing of a product not previously manufactured or processed in the operation.