Manitoba

Economic relief coming for Churchill, feds say

The northern town of Churchill, which has been rattled by bad news with layoffs and the threat of their biggest employer shutting down, is about to get some good news.

Funds will not be spent on the Port of Churchill, says government spokesperson

The Port of Churchill is the town's largest employer but has laid off workers due to a slump in shipments. New federal dollars will be announced Friday but will not be earmarked for the port. (Lyzaville Salle/CBC)

The northern town of Churchill, which has been rattled by bad news with layoffs and the threat of their biggest employer shutting down, is about to get some good news.

The federal government is holding a news conference on Friday to announce funding to support economic development.

A spokesperson for Navdeep Bains, minister of innovation, noted however, the funds will not be used to invest in the Port of Churchill.

Bains, who is also the minister responsible for Western Economic Diversification Canada, will be in the northern Manitoba town to reveal details Friday at 12:30 p.m. at Churchill's town centre complex.

Dozens of workers were laid off in July from the Port of Churchill, the town's largest employer. 

OmniTrax Rail, the Denver-based company that has owned and operated the port as well as the Hudson Bay rail line since 1997, says a slump in grain shipments has put a strain on the operation.