FISHING COMMUNITY ECONOMIC DIVERSIFICATION INITIATIVE

Current questions

1. Why has the Economic Development Agency of Canada for the Regions of Quebec (CED) decided to implement the Fishing Community Economic Diversification Initiative (FCEDI)?

In April 2003, in view of the cod moratorium, CED was given the mandate to implement short-term mitigative measures (Adjustment Measures for Quebec Fishing Communities, or AMQFC), consult with regional stakeholders to identify potential avenues of intervention and propose long-term measures to assist communities affected by the moratorium in replacing cod and crab fishing by other viable economic activities. This process culminated in the creation of the FCEDI.

CED places particular focus on communities suffering economic devitalization. Based on its consultations, a more comprehensive approach was developed to respond to the problems affecting the fragile fisheries industry in two regions, namely Côte-Nord (Basse-Côte-Nord and Minganie) and Gaspésie — Îles-de-la-Madeleine.

In alignment with the Regional Strategic Initiatives (RSI) model, this newest initiative is unique in that its emphasis is on providing a long-term response to the groundfish crisis rather than to a specific region. This crisis has highlighted the heavy reliance of these communities on the fisheries industry and the need for them to diversify their economies.

2. What regions does the FCEDI cover?

The FCEDI targets the regions of Côte-Nord (Basse-Côte-Nord and Minganie), Gaspésie (the coastal communities between Saint-Godefroi and Cap-Chat) and Îles-de-la-Madeleine.

3. Which avenues of development will the FCEDI favour?

The consultations led to the identification of sectors of activity with the potential to further economic adjustment and diversification:

• aquaculture
• promotion of underused halieutic species
• secondary and tertiary processing
• ecotourism and adventure travel
• organic farming
• enhancement of small wild fruits and non-wood forest products; small-scale mining and forestry.

In addition to these avenues of diversification, the consultation process identified five axes of development, namely:

• enhanced access to knowledge
• support for marketing efforts
• development of human capital and entrepreneurship
• reinforcement of social cohesion and community capabilities
• renewal or upgrading of certain targeted collective infrastructures.

In light of the difficult economic situation prevailing in the communities covered by the FCEDI, the Agency intends to focus its efforts on revitalizing these communities by creating conditions that are conducive to their development (social cohesion, human capital, entrepreneurship). CED also intends to help stabilize, strengthen and diversify their economic base by supporting competitiveness.

This FCEDI encompasses the fishing communities of the Côte-Nord (Basse-Côte-Nord and Minganie), Gaspésie (the coastal communities between Saint-Godefroi and Cap-Chat) and Îles-de-la-Madeleine.

Unlike the temporary measures funded by the AMQFC, the FCEDI's goal is to promote community economic diversification. It is not intended to deliver support specifically to workers affected by the cod and crab fisheries restrictions, as was the AMQFC. The FCEDI is part of the Agency's new integrated approach that emphasizes a multi-dimensional perspective (cultural, social, environmental, etc.) rather than limiting itself to economic considerations.

4.What are the main objectives of these new measures?

The FCEDI essentially has two main components: "increasing enterprises’ and communities’ competitiveness", and "increasing communities’ dynamism and vitality."  

     Objectives of component 1:"Increasing enterprises’ and
     communities’ competitiveness"

• Stimulating entrepreneurship by fostering the development of the entrepreneurial base and promoting a more tailored support environment
  
  
• Contributing to the economic stabilization, strengthening and diversification of communities by supporting their conversion and transition to increased value-added production (support of niches of excellence)
   
• Promoting innovation, research and development, productivity enhancement, networking, new market development and access to strategic information for enterprises  
  

    
     Objectives of component 2: "Increasing communities’  
     dynamism and vitality" 

• Strengthening social cohesiveness, helping targeted communities adjust by promoting guidance in support of community development and mobilizing stakeholders around strategies and mainstay projects (social economy)
  
  
• Helping to improve community drawing power and fostering conditions conducive to community development by promoting high-quality economic, cultural and tourism infrastructure
  
  
• Promoting local development, entrepreneurial awareness and the enhancement of social and human capital in order to encourage marginalized groups (youth, women, natives, anglophones) in the affected communities to take charge of their own development
  
  
• Encouraging the emergence and expansion of small businesses with local or regional reach

5. What results are expected from these measures?

• More competitive enterprises and communities due to increased entrepreneurial spirit and reduced economic reliance on a single industry
  
  
• Enhanced community dynamism and vitality and the emergence of a climate conducive to the sustainable development of these communities due to stronger social cohesiveness and enhanced drawing power.

6. What is the FCEDI's budget?

The FCEDI has a five-year budget of $34 million, which will be divided equally ($17 million each) between the Gaspésie — Îles-de-la-Madeleine and Côte-Nord regions.

This five-year initiative clearly signals the Government of Canada's long-term commitment to provide support and assistance to our most vulnerable communities.

7. Who is eligible under the FCEDI?

This Canada Economic Development initiative is intended for SMEs, enterprise support organizations and SME groups and industry associations. 

It is also open to organizations and institutions dedicated to promoting and disseminating knowledge as well as non-profit organizations.

It is important to note that the FCEDI aims to support the long-term economic diversification of communities. Unlike temporary support measures, it is not specifically intended to provide assistance to workers affected by the moratorium on cod and crab fishing. However, in the communities most severely affected by the crisis, certain projects may indirectly support these workers.

8. What kinds of activities might benefit from CED support under this initiative?

Undercomponent 1—"Increasing enterprises’ and communities’ competitiveness"—  eligible activities include:

• Consultants' studies and projects relating to the development of strategies and action plans, including the various studies associated with enterprise development
  
  
• Capital business projects such as startup, expansion or consolidation, and the development or adaptation of products, processes and services
  
  
• Establishment and expansion of transfer centres, watch centres and entrepreneurship support organizations
  
  
• Incubation, guidance, monitoring and technical support activities for enterprises in the pre-startup or startup phases
  
  
• Projects aimed at enhancing co-operation between knowledge institutions and enterprises
  
  
• Development of niche products
  
  
• Design, development, adjustment and demonstration of a new or improved product, process or service that constitutes a technological innovation in a particular sector, including testing and experimentation in the natural resources sector
  
  
• Pre-marketing and marketing of new products, processes or services.

Under component 2—"Increasing communities’ dynamism and vitality"— eligible activities include:

• Strategic and non-recurring projects intended to arm a region or community with competitive advantages. These entail exceptional mainstay initiatives arising from concerted action or regional mobilization that are likely to generate a major lever effect for the region and its future development. These might include, for example, collective or community projects for the creation or enhancement of major tourist attractions or events
  
  
• Projects aimed at strengthening local development capabilities (i.e. projects to improve the support capabilities of local organizations, skills development projects)
  
  
• Projects which foster the growth and development of social economy enterprises

9. How will projects be selected for funding?

The following criteria will be used in evaluating projects submitted for funding:

• compliance with the initiative's objectives and planned results and with the yearly action plans of CED's business offices
  
  
• impact (economic, social, cultural, community, environmental) on the targeted community
  
  
• community backing of the project and financial and other involvement of partners
  
  
• strategic, technical and financial capacity of promoter
  
  
• demonstration of financial need for project completion, based on existing sources of financing (government programs) and level of risk 
  
  
• compliance with the Canadian Environmental Assessment Act and the Canada Economic Development's Sustainable Development Strategy  
  
  
• availability of funds.

10. What costs are eligible for support under the initiative?

• Consultancy fees relating to professional and technical services
  
  
• Labour and equipment costs directly allocated to the project
  
  
• Capital costs, including the manufacturing and adjustment of dedicated equipment, but excluding the costs of all land or motor vehicles not used exclusively for the project and excluding the portion of the cost of any other asset that exceeds fair market value
  
  
• The leasing of halls or equipment needed to carry out the project
  
  
• The operating costs of an SME association or SME support organization
  
  
• Travel and transportation costs of employees assigned to the project
  
  
• Production and distribution costs of promotional material
  
  
• Costs needed to organize a contest or award bursaries.