06/13/2012 06:48 EDT | Updated 08/13/2012 05:12 EDT

Federal budget cuts could cost P.E.I. up to 750 jobs over three years: study

CHARLOTTETOWN - A new study says Prince Edward Island will lose about 750 jobs over the next three years if proposed federal budget cuts are approved.

The study, compiled by the law firm McInnes Cooper, says the job losses will drain up to $61-million from the Island's economy — that's about 1.2 per cent of the province's GDP.

The research paper says the potential job losses include up to 458 federal positions — about 12 per cent of the federal workforce on the Island — and up to 298 non-government jobs.

There are now about 3,800 permanent federal positions spread among 35 federal departments, agencies and Crown corporations in P.E.I.

The Island's innovation minister, Allen Roach, issued a statement Wednesday urging Ottawa to re-think its approach, saying the federal proposals will have a big impact on P.E.I.

The study was commissioned by the provincial government, the City of Charlottetown, the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada.