Opposition pans rebate to attract IT company

The Progressive Conservative opposition is questioning the investment that the P.E.I. government is making to bring Indian IT company MphasiS to the Island.

Innovation critic Hal Perry says the Ghiz government is spending a lot of money on one business that isn’t locally owned.

"This fund, through Innovation and Development Labour Rebate, has a cap on it of $14.6 million," he said. "And $9.3 million out of that to one company that's not an Island business, is a lot of money. That could go a long way for Island businesses."

Innovation Minister Allen Roach said while the $9.3 million is budgeted for this year, it will be spent over the next 10 years and it will depend on how many employees are actually hired.

The company has to hire all 300 people, to get the full $9.3 million.

But Roach said the salaries for 300 people over 10 years would amount to about $180 million. He said it's a minor investment to get a major company to P.E.I.

The company also won't have to pay provincial corporate income tax for 10 years, and will get a rebate on any properties it rents.

MphasiS employs about 40,000 people worldwide, servicing the insurance and banking sectors. This would be the company’s first branch office in North America.