The Nova Scotia government is spending up to $6.5 million over seven years in payroll rebates for Lockheed Martin Canada.

The government says the company will be required to maintain 200 positions at its Halifax offices and is being encouraged to create 70 more jobs.

Earlier this year, Lockheed Martin signed a four-year, $180 million contract with the New Zealand government to update two of its frigates.

Nova Scotia Business Inc. says all of the software and engineering work required for that contract will be done at Lockheed Martin Canada's Halifax offices.