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ova Scotia has had a long economic and cultural relationship with the island of Bermuda, dating back hundreds of years. Both are in the Atlantic Time Zone and are separated by a little more than 700 miles (1,126 km.) of Atlantic Ocean. Now, companies located in the offshore financial services center are investing in a big way in the Atlantic province's largest city.
   Hedge fund administrator Olympia Capital is one of the latest Bermuda- based firms to open an office in Halifax. Carolynn Hiron, Olympia's corporate counsel,

All four members of the Council of Atlantic Premiers spent three days in Alberta in January, seeking to promote trade and investment opportunities between Atlantic Canada and Alberta, Canada's fastest growing province. Pictured from left are Premier of Prince Edward Island Pat Binns, Premier of New Brunswick Shawn Graham, Premier of Alberta Ed Stelmach, Premier of Nova Scotia Rodney MacDonald, and Premier of Newfoundland and Labrador Danny Williams.

says her company made the site choice based on work force considerations.
   "We employ many accountants in our Bermuda office," Hiron says. "Bermuda's over- employment situation is exacerbated by a worldwide shortage of accountants. So it's difficult to find employees with the skill set that we need, which means that we often have to reach out to other jurisdictions. A significant number of the accountants we hired were from eastern Canada and they often headed back home when they decided to leave Bermuda."
   Hiron says Olympia Capital initially looked at locating in Halifax to retain some of the employees it was losing, many of whom were well trained, well qualified and anxious to continue to work for Olympia but for the fact that they wanted to return to family and friends in eastern Canada. She says as the plan grew, Olympia became aware of the availability of a larger, attractive labor pool in the Halifax area.
   "We have been well received by the people of Halifax and, are pleased with our decision to locate there." Hiron says.
   Olympia's Halifax office opened last August and Hiron anticipates employment reaching 35 by the end of 2007. Longer range, employment could reach up to 150 during the operation's first five years.
   Butterfield Fund Services is another Bermuda- based firm that has moved to Halifax to collect some of the returning Nova Scotia expats. Butterfield has plans to create up to 60 jobs by the end of 2007 and 400 full- time and part- time jobs by 2013.
   "Bermuda and Halifax have always had strong connections, and it is this history and commonality that placed Halifax at the top of our list from the start of our expansion process," said Richard Ferrett, Butterfield's executive vice president and CFO.
   Also coming to Halifax is Citco Fund Services, a leading provider of administrative services to the hedge fund industry. Citco has opened an office and training center that will eventually employ 350.
   Not all the financial services firms coming to Halifax are Bermuda- based. Marsh, the risk and insurance services firm, is establishing a technical center of excellence to provide high- level administrative support. The firm plans to create up to 150 jobs.
   Nova Scotia Business Inc. CEO Stephen Lund, who has a Bermuda- based background in financial services, says Nova Scotia is a good fit for Bermuda- based firms.
   "There's a good value proposition here based on labor, cost of doing business, infrastructure and all the intangibles," he says. "We're growing our financial sector through managed growth. I compare it to what Ireland has been doing for the past 15 years."
   Nova Scotia's eastern location also makes it a gateway to and from Europe, Lund says.    Other industries recorded gains in 2006. Research in Motion (RIM), best known for its Blackberry device, opened a new technical support operations center in Halifax. RIM plans to create more than 1,200 jobs over a five- year period.
   "Nova Scotia's strong post- secondary research environment and talented IT workforce have provided us with an excellent labor base for recruitment," said Jim Balsillie, chairman and RIM co- CEO.
   Nova Scotia's aerospace industry, which employs about 6,000, also added jobs as L-3 Communications Canada, a defense, aerospace and security company, announced it would add 210 jobs over the next five years. The company's expansion plan includes targeting growth in the Dept. of National Defense maritime helicopter support program; maintenance, repair and overhaul; electronics manufacturing; and integrated systems for security applications.
   In late January 2006, Michelin announced that it would close its Kitchener, Ont., B.F. Goodrich facility but invest $80 million (C$92 million) and create 75 new jobs at its plant in Waterville, Nova Scotia, where it will make its "X One" wide single longhaul truck tire. The Atlantic Canada Opportunities Agency offered a C$10- million (US$8.6- million) interest- free loan for the project, and the province kicked in C$10.8 million (US$9.1 million) of its own, in part because the project stood to benefit Michelin's other Nova Scotia plants in Garton and Bridgewater.
   That benefit is coming clearer, as Michelin announced in September 2006 it would expand its Bridgewater facility to increase capacity for production of steel cable used in the production of earthmover and truck tires. The US$30- million expansion, to be completed in 2008, will add 36 jobs, and will receive its own incentive package of C$4.4 million (US$3.7 million) from the province.    New Brunswick has a propensity for fun and games, especially when it comes to the province's digital media industry. Companies specializing in animation, game development and e- Learning have migrated to or formed in the province.
   One of the recent expansions involves Fatkat Animation Studios in Miramichi, located in the northern half of the province along the Atlantic coastline, opening out onto Miramichi Bay and the Gulf of St. Lawrence. The successful commercial animation and graphics studio plans to add 15 employees. Fatkat produces commercials and videos, and is currently working on a series for Comedy Central.