SECTION I: MESSAGES
Minister's Portfolio Message
Industry Portfolio:
- Atlantic Canada Opportunities Agency
- Business Development Bank of Canada*
- Canada Economic Development for Quebec Regions
- Canadian Space Agency
- Canadian Tourism Commission*
- Competition Tribunal
- Copyright Board Canada
- Enterprise Cape Breton Corporation*
- Industry Canada
- Infrastructure Canada
- National Research Council Canada
- Natural Sciences and Engineering Research Council of
Canada
- Social Sciences and Humanities Research Council of Canada
- Standards Council of Canada*
- Statistics Canada
- Western Economic Diversification Canada
* Not required to submit a Departmental
Performance Report. |
Continued investment in research and development, the ingenuity of
Canadian researchers, academics and business people and a growing
awareness of the importance of innovation in a successful economy
have greatly contributed to Canada's increased recognition
worldwide as a significant partner in the knowledge-based economy.
By eliminating the deficit, cutting personal and business taxes,
making strategic investments and examining its regulatory
processes, the Government of Canada has encouraged investment and
innovation in Canadian business and has laid the groundwork for
success in this competitive world economy.
Since the introduction of Canada's Innovation Strategy in
February 2002, we have worked with businesses, institutions,
associations and governments at all levels to develop a consensus
about what must be accomplished if the Canadian economy is to
continue to excel. A number of priorities were identified during
the November 2002 National Summit on Innovation and Learning,
including improving the regulatory environment for businesses in
Canada, encouraging the creation and commercialization of knowledge
through strategic partnerships and investments, and continuing the
growth of our highly skilled work force.
Canadians, wherever we may live, have an opportunity to take
part in a dynamic and exciting economy. Some of us are developing
expertise in highly skilled specialties like genomics,
biotechnology and fuel cell technology. Others are benefiting from
expanded access to broadband Internet services and, by extension,
the resources of universities, research institutes and virtual
networks around the world.
The Industry Portfolio, consisting of 16 departments and
agencies, plays an integral role in encouraging innovation. Its
many programs at the community, regional and national levels push
Canadians to explore opportunities, identify new products, start
new businesses and develop successful markets here and abroad.
Western Economic Diversification Canada (WD) supports Canada's
Innovation Strategy in the West by investing in innovative projects
that move western Canadians more strongly into the knowledge-based
economy. Across the West, the continued development of leading-edge
technologies and applications will substantially improve the
region's position as a national and international leader in key
areas such as environmental technologies, virtual reality design,
wireless technology and synchrotron light research.
These and other initiatives championed by Western Economic
Diversification Canada and our partners in the Industry Portfolio
will help us create conditions favourable for innovation by
Canadian individuals, firms and institutions. This will help secure
Canada's strong economic position and attract investments that will
provide wide-ranging economic and social benefits for
Canadians.
I invite you to review the Western Economic Diversification Canada
Performance Report for more details on how Western Economic Diversification Canada encourages innovation and economic growth in
Canada.
Allan Rock Minister of Industry
Secretary of State Western Economic
Diversification Canada
Western Economic Diversification Canada (WD) works to ensure
positive, lasting change in the economy of the West and the quality
of life for its people. We are accountable to western Canadians for
achieving measurable results in areas they identify as priorities,
and to all Canadians for the effective and judicious investment of
their taxpayer dollars.
For 16 years, WD has worked to develop and diversify the western
Canadian economy, and to reflect western Canadian interests in
national decision-making. Although our mandate has remained the
same, our priorities and programs have changed to meet the evolving
needs of the West and to respond to emerging challenges and
opportunities.
In the last fiscal year, WD fulfilled its mandate and produced
significant results by focusing its resources in three areas:
Innovation, Entrepreneurship and Sustainable Communities. These
three strategic outcomes work in concert to create new, more
resilient sources of economic growth.
Western Economic Diversification Canada is key to implementing
Canada's Innovation Strategy in the West. The department is
committed to improving Western Canada's performance in
high-knowledge sectors by investing strategically in pivotal new
technologies. These investments are helping to improve the region's
position as an international leader in several leading-edge
industries, including fuel cells in British Columbia, wireless
technology in Alberta, plant biotechnology in Saskatchewan and
health sciences in Manitoba. They also act as a catalyst to attract
other funding partners. In 2002-2003, WD approved $54.9 million for
projects supporting innovation in the West, leveraging an
additional $155 million.
The partners in WD's Western Canada Business Service Network -
which provide over 100 points of service in the West - work at the
local level to ensure that western Canadian entrepreneurs have
direct access to services that support their economic success,
thereby creating new opportunities for growth in communities across
the West. For example, an independent study states that the
services provided by Community Futures Development Corporations
(CFDCs) have resulted in the creation or maintenance of up to
32,000 person-years of employment over five years. The successes
achieved by the network partners in supporting small- and
medium-sized enterprises have enabled WD to reassign its internal
resources to other priorities, such as promoting new investment
into Western Canada and increasing export activity.
Western Economic Diversification Canada's contribution to
sustainable communities recognizes that economic prosperity cannot
be pursued in isolation. Environmental and social factors also
affect the ability of communities to access and take advantage of
opportunities for economic growth. Western Economic Diversification
Canada delivers the Infrastructure Canada Program (ICP) in the
West, which levers matching funds through partnerships with
provincial and municipal governments. Since October 2000, WD has
approved $350 million in funding for nearly 1,000 projects,
primarily water and wastewater systems, solid waste management and
recycling, and retrofitting or improving the energy efficiency of
municipal facilities. The six-year agreement will see the three
levels of government invest more than $1.67 billion in the
infrastructure of communities across the West. Western Economic
Diversification Canada is also well positioned to help Canada meet
its climate change commitments under the Kyoto Accord.
By working strategically on the regional and local level, WD is
"on the ground" with an understanding of the issues that lead to
lasting economic change and enhanced quality of life. Innovation by
innovation, business by business, community by community, Western
Economic Diversification Canada is contributing to the emergence of
a new economy that is inclusive, dynamic, diversified and
sustainable.
The Honourable Stephen Owen
SECTION II: DEPARTMENTAL OVERVIEW
A. Mandate, Roles and Responsibilities
Through the Western Economic Diversification Act of 1988,
WD is mandated to:
- Promote the development and diversification of the western
Canadian economy;
- Coordinate federal economic activities in the West; and
- Reflect western Canadian interests in national
decision-making
As a member of the Industry Portfolio, WD contributes to the
government's economic agenda of ensuring Canada's transformation
into a knowledge-based economy. The department's responsibilities
include delivering on its own mandate, and on national economic
objectives as enunciated in the Speech from the Throne.
To implement our mandate in 2002-2003, WD focused its programs
and services on innovation, entrepreneurship, and partnerships that
build sustainable communities; and conducted research that
supported our advocacy efforts through an enhanced knowledge and
understanding of western issues.
Innovation is the future of the West. In 2002-2003 WD
supported the development of knowledge-based industries by
strengthening knowledge infrastructure, leveraged new funding for
research and development, and helped to accelerate the rate of
technology commercialization.
Partnerships, and the sustainable communities they build,
are the strength of the West. Recognizing the competitive
advantages of cooperation and strategic alliances, WD worked to
strengthen partnerships with different levels of government,
industry, universities, and volunteer organizations to enhance the
West's connections to the rest of Canada and the world.
Entrepreneurship is the spirit of the West. WD promoted
business development and entrepreneurship by providing skills
development, offering advisory services, facilitating access to
capital, encouraging the adoption of e-commerce, and enabling small
and medium sized enterprises to hire promising young marketing and
technology graduates.
Economic research and advocacy promote the value of the
West. WD sponsored research projects that led to better information
in critical areas such as medical research, future economic
prosperity, urban issues, and innovation. An important part of this
work involved communicating the research findings in Ottawa to
promote a better understanding of western issues and concerns in
the development of national policies.
The Department's Head Office, and its Deputy Minister, is
located in Edmonton, Alberta, co-located with the Regional Office
for Alberta. There are regional offices with Assistant Deputy
Ministers located in each of the other western provinces, in
Winnipeg, Saskatoon and Vancouver, and a Liaison Office located in
Ottawa. Regional satellite offices have also been opened in
Calgary, Regina and Victoria. Each of the Western Assistant Deputy
Ministers is responsible for the delivery of programs and services
in their region, as well as for corporate responsibilities. The
Ottawa based Assistant Deputy Minister plays the lead role in the
department's advocacy activities.
B. Economic Performance of the Western
Province*
The year 2002 clearly demonstrated how much the western
provinces continue to depend on natural resource industries. The
table below shows that the western provinces recorded the four
lowest levels of real economic growth among all provinces as
difficulties in the forestry, fishing, agriculture and energy
sectors took their toll. Only Manitoba, with its more diversified
economic base, recorded growth over the two per cent level. These
results are not atypical: over the past five years the western
provinces have demonstrated the lowest growth rates of all
provinces save New Brunswick, which was slightly behind
Alberta.
The table below also demonstrates the degree to which the
western provinces need to diversify away from natural resources
into more innovative and value added industries. While
manufacturing accounts for over 22 per cent of economic output in
Quebec and Ontario, it accounts for about half that level across
the western provinces. And although international exports account
for significant shares of output in all provinces, the exports from
the western provinces are much more heavily weighted toward natural
resource commodities. This makes the western provinces far more
susceptible to the economic disruption brought about by sudden
changes in prices that are set in the global commodities
marketplace.
In addressing the economic structure of Western Canada, it is
also important to comment on the labour market. The western
provinces show deceptively low levels of unemployment compared to
the other provinces. Western Canada exhibits a relatively high
level of interprovincial migration, and as job prospects disappear
in tough economic times displaced workers tend to move back to
their provinces of origin in Central or Eastern Canada.
COMPARISON OF KEY FACTORS
2002
|
|
NL
|
PE
|
NS
|
NB
|
QC
|
ON
|
MB
|
SK
|
AB
|
BC
|
Population
000s |
532 |
140 |
944 |
756 |
7,450 |
12,038 |
1,150 |
1,012 |
3,107 |
4,136 |
Real GDP Growth
% |
13.4 |
5.6 |
3.8 |
3.3 |
4.3 |
3.9 |
2.4 |
-1.4 |
1.7 |
1.8 |
Real GDP Growth %
Average over last 5 years |
6.3 |
3.6 |
3.4 |
3.1 |
3.8 |
4.5 |
2.5 |
0.8 |
3.2 |
2.0 |
Employment % growth
Average over last 5 years |
2.5 |
2.5 |
2.2 |
2.2 |
2.4 |
2.7 |
1.5 |
0.5 |
2.8 |
1.1 |
Manufacturing
Output as a % of Real GDP (2002) |
6.6 |
9.6 |
11.5 |
14.8 |
23.2 |
22.4 |
12.9 |
7.2 |
10.2 |
11.6 |
International
Exports as a % of GDP (2001) |
32.9 |
29.5 |
27.5 |
41.6 |
39.1 |
51.3 |
29.3 |
43.4 |
36.4 |
30.2 |
Unemployment
Rate |
16.9 |
12.1 |
9.7 |
10.4 |
8.6 |
7.1 |
5.2 |
5.7 |
5.3 |
8.5 |
British Columbia
British Columbia recorded real economic growth of 1.8 per cent
in 2002, the third lowest rate among all provinces. The forestry
sector experienced a devastating year as output and employment
plummeted due to the softwood lumber dispute with the United
States. In the tourism sector, British Columbia received a much
lower-than-normal number of international visitors to the province
as the post 9/11 air traffic decline continued. Yet 2002
demonstrated that, even in the face of economic disruption, the
province could turn in a positive performance. Significant
employment gains were made in the finance, retail, manufacturing
and construction sectors; and retail sales were up from the
previous year as new employees spend their earnings on goods and
services. The number of new housing starts was 24 per cent higher
in the third quarter of 2002 compared to a year earlier. But
despite its bright spots, British Columbia faces difficult
structural challenges as communities outside of the greater
Vancouver area struggle with continued decline in their natural
resource based economies.
Alberta
Alberta's rate of real economic growth in 2002 was 1.7 per cent,
the second lowest rate among provinces. The poor performance
typified the boom and bust cycles of the province's energy-based
economy. Facing short-term uncertainty in oil prices as the U.S.
contemplated military action against Iraq and longer-term
uncertainty regarding the impact of the Kyoto Accord, oil and gas
companies were slow to commit to new drilling projects for the
first half of the year. This resulted in a year-over-year reduction
in energy investment, despite continued construction in the
northern Alberta oil sands industry and much stronger than
anticipated oil prices throughout the year. Notwithstanding the
relatively poor performance in the energy sector and employment
losses in both the natural resources and trade sectors, the economy
did have some bright spots. Alberta recorded strong employment
gains in most sectors other than natural resources and trade that
in turn bolstered retail sales and pushed housing starts to near
record levels.
Saskatchewan
In 2002 Saskatchewan recorded a second straight year of negative
economic performance, with real output decline of - 1.4 per cent
(the 2001 level was - 0.3 per cent). The reason for the poor
performance lay in the crop production and livestock industries,
which were again plagued by low precipitation rates, grasshopper
infestation, and the impact of the U.S. Farm Bill. The U.S. Farm
Bill increased assistance for traditional crops like wheat, corn
and soybeans and also for specialty crops such as dry lentils, peas
and chickpeas. Many Saskatchewan farmers - who have been
diversifying into specialty crops - faced difficult planting
decisions as they considered how best to compete with their
subsidized U.S. counterparts. The difficulty in the agriculture
sector was compounded by a poor year in the energy and mining
sectors. Oil and gas companies struggled with the global
uncertainty described above in the Alberta section, and weak global
prices for minerals resulted in a year of negative performance for
the mining sector. Despite the downturn across several key sectors,
consumers continued to take advantage of low interest rates as
retail sales grew significantly from prior year levels and housing
starts were at the highest level since 1996.
Manitoba
Manitoba continued its typical steady economic performance in
2002 with its well-diversified economy recording real growth of 2.4
per cent, making it the best performer of the western provinces but
still the fourth worst in the country. Unlike Saskatchewan and
Alberta, Manitoba's agriculture industry turned in a positive
performance in 2002. Many farmers were able to wait for
precipitation before making planting decisions, and with early rain
followed by warm weather the resulting crop yields were average to
above average in most regions. As well, Manitoba's livestock
industry turned in a solid performance despite lower prices for
hogs offered by slaughterhouses. Brandon's Maple Leaf plant alone
processed about 10,000 hogs per day, and cattle slaughter levels
were also up from the previous year. Manitoba's manufacturing
industry was a solid contributor to output with strength shown in
processed foods, plastics and rubber, and the machinery and
transportation equipment industries. Important events occurred in
the bus and aerospace industries as government intervention and
union concessions resulted in Motor Coach Industries not moving out
of the province while Magellan Aerospace landed a contract to
manufacture helicopter components.
* Information and
statistics provided in this section are derived from the following
sources: Conference Board of Canada 2002 and 2003 Economic
Outlooks, RBC Financial Group July 2003 Economic Outlook, Scotia
Economics Provincial Forecasts, and Industry Canada Regional
Economic Observer.
C. Linking WD's Programs to the Needs of
Western Canada
Over the years, WD's priorities and programs have changed to
meet the evolving needs of the West, and to respond to emerging
challenges and opportunities. From supporting the growth of
innovation clusters to identifying new sources of economic
opportunity for communities facing severe adjustment challenges,
the department helps capitalize on the West's strengths to create
sustainable prosperity for all.
WD has invested about $2.7 billion in Western Canada since 1987.
These investments are helping strengthen the western Canadian
innovation system, create a resilient and expanded business sector
in Western Canada and improve the economic competitiveness and
quality of life in communities across the West. While each of WD's
four core program areas in 2002-2003 - Innovation,
Entrepreneurship, Partnerships, and Economic Research and Advocacy
- can be described individually, they share important linkages when
it comes to making a contribution toward western prosperity.
Innovation
"Through innovation, knowledge is applied to the development
of new products and services or to new ways of designing, producing
or marketing an existing product or service for public and private
markets. ... Innovation has always been a driving force in economic
growth and social development. But in today's knowledge-based
economy, the importance of innovation has increased
dramatically."1
Knowledge and innovation form the foundation for economic
prosperity in the new global economy. As a result, support for
innovation has become a central priority for the Government of
Canada. That support reached a new level with the launch of
Canada's Innovation Strategy in February 2002. WD supports Canada's
Innovation Strategy in the West by investing in projects that move
Western Canada more strongly into the knowledge-based economy.
When assessing the level of innovation within an economy, one
common indicator is a region's level of research and development
(R&D) expenditure. R&D is a fundamental component of
innovation because it allows firms to take advantage of new
knowledge and ideas. As the accompanying graph demonstrates,
Western Canada's performance on R&D spending is significantly
lower than the Canadian average.
The lower levels of R&D spending are not solely attributable
to government sources: it is important to recognize that business
funded and performed R&D is significantly lower than in Central
Canada.2
1. Achieving
Excellence, Investing in People, Knowledge and Opportunity,
Industry Canada, 2002.
2. Statistics
Canada, Estimates of Canadian Research and Development Expenditures
(GERD), Canada 1990-2001 and by province 1990-1999.
Partnerships
The future prosperity of western Canadian communities is a goal
that cannot be addressed solely through business development
activities. Many factors - including social, environmental and
economic issues - affect the ability of communities to take
advantage of opportunities for sustainable growth.
Through partnership and coordination activities, WD is helping
to converge western interests and resources to build a future that
is sustainable not only economically, but environmentally and
socially as well.
In 2002-2003 WD delivered a number of programs designed to
improve local infrastructure in urban and rural communities
throughout the West, strengthen economic development and
sustainable growth, and assist communities in adjusting to changing
and often very challenging economic circumstances. Examples
include:
- the Infrastructure Canada Program to help communities provide
residentswith necessary basic services such as roads and water
treatment facilities;
- Western Economic Partnership Agreements (WEPAs) to promote
economic growth and employment opportunities in Western
Canada;
- Urban Development Agreements to build partnerships among
federal, provincial and municipal governments that lead to better
coordination of economic and social activities to address complex
issues in urban areas, especially in inner-cities; and,
- Economic Adjustment Programs to mitigate the impact of
extraordinary events, like the closure of the military base in
Moose Jaw, Saskatchewan; the Red River Valley flood in Manitoba and
the severe downturn in the British Columbia fishing
industry.
Entrepreneurship
More than elsewhere in the country, small business is the
economic engine of Western Canada. A study prepared by the Western
Centre for Economic Research in 2001* revealed that
the number of small businesses per capita is 40 per cent higher in
the West than in the rest of Canada. As the source of nearly 80 per
cent of new jobs, entrepreneurship is a powerful force for
prosperity. To fuel this valuable source of economic growth, WD
supports the willingness of entrepreneurs to take risks, devise new
products and services, and create jobs and opportunity in
communities across Western Canada.
* A Portrait of
Small Business Growth and Employment in Western Canada, by Edward
J. Chambers and Natalya L. Rylska, Western Centre for Economic
Research, School of Business, University of Alberta, Number 63,
2001.
Economic Research and Advocacy
An important part of WD's mandate is to undertake economic
research on Western Canada. As policy makers, the research helps us
understand Western Canada, its place in the country and the world,
and the present and future challenges and opportunities facing the
region. Through the knowledge generated by disseminating and
promoting research, awareness is created about relevant issues and
a climate conducive to effective policy formulation is established.
The department sponsors research projects that have a direct
relationship to its economic development mandate and core program
areas. Economic research is intended to lead to policies that help
the region achieve its economic potential, thus leading to a
stronger national economy.
D. Delivering on Government of Canada
Priorities in Western Canada
In Canada's Performance 2002* the President
of Treasury Board presents a series of societal indicators that are
intended to help measure the quality of life of Canadians. These
indicators are directly linked to the government's priorities as
set out in the Speech from the Throne and the Prime
Minister's Response to the Speech from the Throne and
include: economic opportunities and innovation in Canada, the
health of Canadians, the Canadian environment and the strength and
safety of Canadian communities. WD is actively engaged in
delivering on these government priorities in the West.
As a member of the Industry Portfolio, WD is dedicated to
helping deliver the national economic agenda in Western Canada. The
department's activities in entrepreneurship contribute directly to
the creation of new economic opportunities for western
Canadians.
WD and its service delivery network pays special attention to
groups of people who have unique needs in meeting business start up
challenges, including: women entrepreneurs, people with
disabilities, francophones, and Aboriginal peoples. WD provides
access to information and capital for small business owners.
Through the First Jobs in Science and Technology and the
International Trade Personnel Programs, WD provides assistance to
hire bright, recent post-secondary graduates to help western-based
companies become more innovative and participate more effectively
in international markets.
WD actively contributed to the Innovation Engagement
Strategy in the research, consultations, and policy development
activities and by helping coordinate strategy-oriented activities
across the West. And on innovation, WD went a step further by
addressing specific innovation opportunities in the West that are
best addressed by a regional approach.
WD also plays an important role in helping to build strong and
safe communities in the urban and rural West. WD recognizes that
western cities are increasingly important economic drivers and
participates in federal-provincial-municipal Urban Development
Agreements to address the special challenges facing large urban
centers. The WD-funded Community Futures Development Corporations
are dedicated to promoting business development and sustainable
community building at the rural level across the West. In addition,
WD's Sustainable Development Strategy contributes to
improving the environment in communities across the West.
WD is instrumental in delivering one of the key federal
government initiatives that is highlighted in Canada's
Performance 2002. WD works with provincial and municipal
governments to implement the Infrastructure Canada Program in
Western Canada. The program, which targets green infrastructure
projects, is improving the water and wastewater systems, water
management, sold waste management and recycling systems across the
West, as well as addressing local priorities such as
transportation, affordable housing and tourism, cultural and
recreational facilities.
* Treasury Board of
Canada, http://www.tbs-sct.gc.ca/report/govrev/02/cp-rc_e.asp.
SECTION III: PERFORMANCE AND OUTCOMES
Link to Resources
For 2002-2003 Western Economic Diversification Canada
Expenditures by Strategic Outcomes were as follows:
Grants & Contributions Expenditures By Strategic Outcome ($ millions) April 1, 2002 to March 31, 2003
|
Strategic
Outcome
|
Expenditures
|
Percentage
|
Innovation |
63.9 |
32.2 % |
Business
Development and Entrepreneurship |
|
|
-
Non-statutory |
40.6 |
|
- Statutory |
19.2 |
|
Sub-total |
59.8 |
30.1 % |
Partnerships |
12.9 |
6.5 % |
Economic Research
& Analysis |
1.9 |
1.0 % |
National
Programs |
60.0 |
30.2 % |
Total |
$198.5 |
100.0% |
In our previous report, WD advised that investments in
Innovation would have a much greater emphasis in departmental
programming, in recognition of the growing importance of knowledge
and innovation in a competitive economy. This shift in priorities
and project approvals is reflected in 2002-2003 expenditure
patterns: Innovation expenditures now represent 32.2 per cent of
total projects, up from 16.5 per cent in 2001-2002.
New approvals during 2002-2003 by strategic outcome and activity
category were:
Grants and Contributions Approvals By Strategic Outcome ($ millions) April 1, 2002 to March 31, 2003
|
Strategic
Outcome
|
Approvals
|
Percentage
|
Innovation |
54.9 |
63.8 % |
Business
Development and Entrepreneurship |
15.2 |
17.7 % |
Partnerships |
14.2 |
16.5 % |
Economic Research
& Analysis |
1.7 |
2.0 % |
Total |
86.0 |
100.0% |
Performance and Strategic Outcomes
INNOVATION A strengthened western innovation
system.
Making Canada one of the most innovative countries in the world
is a top priority for the federal government, and for Western
Economic Diversification Canada. In order for Canada to remain
globally competitive in both traditional and emerging industries
and ensure a high quality of life, it is essential that we create
an innovative and knowledge-based economy in all parts of the
country. As a reflection of this need, innovation is one of WD's
key strategic objectives.
During 2002-2003, the federal government undertook a major
consultation exercise on an innovation agenda for Canada. This
process engaged over 10,000 Canadians, and was led by Industry
Canada and the Industry Portfolio, and Human Resources Development
Canada. As a member of the Industry Portfolio, WD supported the
consultation process in Western Canada and continues to play an
active role in developing policy and program responses that ensure
that the federal innovation agenda is relevant and effective in
addressing western Canadian needs and opportunities.
WD's strategic outcome and objectives are complementary to the
federal government's innovation priorities. WD's approach takes
into account that the innovation process is not linear or isolated,
but occurs within a broader context of a larger "innovation system"
encompassing people, institutions, and interactions which influence
the performance of organizations, and ultimately of the
economy.
By strengthening the innovation system in Western Canada -
through strategic investments in infrastructure development,
technology commercialization, capacity building and linkages - WD
facilitates the development of clusters and expands the potential
of the four western provincial economiesto create value and
wealth.
In 2002-2003, WD approved $54.9 million in new innovation
projects, representing over 60 per cent of the department's new
project approvals. WD also has several multi-regional initiatives,
including the WestLink Innovation Network, TRLabs, and the Canada
West Health Innovation Council. Multi-regional initiatives play an
effective role in creating partnerships and collaboration across
the western Canadian and national innovation system, enhancing
innovation performance for all partners.
Key Partners:
WD works with a variety of partners to meet our strategic
objectives. The western provincial governments are natural partners
in many initiatives. WD regularly works with other federal
organizations (National Research Council, Natural Resources Canada,
Agriculture and Agri- Food Canada, Natural Sciences and Engineering
Research Canada, and the Canada Foundation for Innovation) in areas
of joint interest, enabling us to leverage innovation investments.
Other partners include universities and technical colleges, cities
and municipalities, industry and associations. In 2002-2003, WD was
a partner in innovation projects totalling $155 million,
contributing 35 per cent of direct funds.
![WD Innovation Approvals 2002-2003 Sources of Funds](/web/20061030004817im_/http://www.tbs-sct.gc.ca/rma/dpr/02-03/WED-DEO/images/dpr_graph2_e.gif)
Key Targets and Overall Results:
WD's innovation strategy calls for investments that will yield
long-term economic and social benefit to Western Canada. Many of
the investments support the development of emerging technology
clusters, most of which will develop over the next 10 to 15 years.
While it is often difficult to report outcomes at the initial
stages, WD is currently able to report on investments in the key
sectors for the West, and on key targets such as technology
commercialization, strategic infrastructure, community innovation
and alignment of priorities among innovation system players.
A recently commissioned independent study* of WD's role
in the West found that:
- WD has played a strong role in promoting innovation in Western
Canada, through providing financial support, formulating
partnerships and developing initiatives; and, by acting as a
facilitator and catalyst that makes strategic investments. The
roles undertaken by WD were highly valued by other innovation
systems players.
- WD is effective in promoting innovation due to its flexibility
to deliver and tailor programming that meets the needs of the
region that it serves; its skilled and knowledgeable staff; and,
its role as a neutral broker in facilitating partnerships.
- WD has directed resources to support future growth, by
strengthening research capabilities and linkages between innovation
system players, increasing access to skilled workers, and by
bringing attention to the importance of innovation in rural
areas.
* Western
Diversification: A Catalyst for Innovation in Western Canada,
Ference Weicker & Company, March 2003.
WD support is contributing to the foundation of technology
clusters. Key sectors for the West include:
- British Columbia: new media, fuel cells, genomics/
proteomics;
- Alberta: wireless, telehealth, micro/nano
technologies;
- Saskatchewan: telehealth, climate change technologies,
synchrotron; and,
- Manitoba: design engineering, health, and composite
materials.
These investments reflect emerging technology cluster
strengths.
- Life Sciences - biotechnology, proteomics, & health technologies
- Information Technology - new media, tele-health, geomatics;
- Other Technologies - fuel cells, design engineering, climate change technologies
synchrotron and micro-technologies.
- Multi-sector - refers to projects that affect more than one
sector.
The following chart demonstrates the priority WD places on
technology commercialization - 48 per cent of innovation project
funding relates to this area. Knowledge/Research Infrastructure is
the second largest investment area, followed by R&D, Skills
Development and Linkage projects.
![WD Innovation Approvals by Activity 2002-2003](/web/20061030004817im_/http://www.tbs-sct.gc.ca/rma/dpr/02-03/WED-DEO/images/dpr_graph4_e.gif)
Objective A: Enhanced Technology Commercialization WD
will support initiatives that contribute to an organization's
ability to develop, transfer or adopt innovative
technologies.
In order to extract economic value and benefit from investments
in research and development and infrastructure, WD has placed a
strong emphasis on technology commercialization and adoption.
Initiatives in the adoption/commercialization category shown above,
range from support for technology commercialization offices at
universities and other knowledge generators, support to incubators,
support to firms through WD's First Jobs in Science and Technology
Program, and WD's contribution of $3 million to the National
Research Council's Industrial Research Assistance Program.
Some examples of WD's support for technology commercialization
include:
- New spin-off companies: WD works with organizations that
report annually on the number of disclosures, licenses, and
business spin-offs. Although it is difficult to directly attribute
success to WD investments (due in part to the length of time
between investment and realization of results) western universities
have a good record of commercialization and spin-offs. The WestLink
Innovation Network reported 34 spin-off companies in the fiscal
year ended March 31, 2001, up from 25 in the previous year.
- Increasing technology commercialization by enhancing
linkages: WD is a partner and investor in collaborative,
multi-partner initiatives, with the goal of enhancing each member's
technology commercialization ability and overall capacity. During
the past year, WestLink opened its membership from university-only,
to include technical colleges and provincial research
organizations, thus strengthening the connection between applied
and basic research. Through their Technology Commercialization
Internship Program, linkages are being made to industry and the
venture capital sector.
- The Wireless E-health Monitor is another example of
commercialization through unique partnerships. The project is a
private and public partnership conceived and coordinated by the
University of Alberta, involving two Japanese companies (Seiko
Instruments and MI Laboratories Co.), a U.S. company, Televital
Inc., and nine other local organizations. The new generation of
e-health solutions or Wireless Wearable Physiological Monitors will
help track health conditions on a 24-hour basis, assisting
individuals to better manage their own health, increasing
efficiency of health-care services, and ultimately saving lives. WD
contributed $575,000 to this $3 million project.
WD's First Jobs in Science and Technology Program (FJST):
Established in April 1997, this program assists small firms to hire
science and technology graduates, who undertake technology adoption
projects aimed at increasing productivity. In addition to providing
technological expertise to the firm, the program also provides many
young western Canadians their "first job" in areas related to their
field of training. The majority of jobs created are in the
professional, scientific and technical service sector. In
2002-2003, WD sponsored 170 projects and created 195 jobs with
funding of almost $4.4 million. Since its inception, the program
has resulted in 1,055 jobs throughout Western Canada.
Objective B: Improved Knowledge Infrastructure and
Capacity WD will provide support to innovation
infrastructure (physical), and to initiatives that build capacity
and linkages among innovation players.
WD's investments in knowledge infrastructure increase the
capacity of western Canadian organizations to undertake research
that will lead to new technologies, products or processes; attract
new resources and skilled personnel; create new opportunities for
commercialization of western Canadian R&D; and assist in the
development of technology clusters. Some examples are:
Information and Communications Technology (ICT):
To facilitate continued development of ICT, WD has made
strategic investments in a number of key organizations:
- WD is the federal government partner in TRLabs, Canada's
largest not-for-profit applied telecommunications research
consortium, with laboratories in Edmonton, Calgary, Regina,
Saskatoon and Winnipeg. These labs provide a unique opportunity for
more than 200 researchers, university faculty and students, and
industry professionals to develop knowledge and expertise in
technologies with commercialization potential. WD has contributed
$10 million over four years to help TRLabs develop new technology
applications, advance knowledge in information technologies and
telecommunications, and train university students for productive
roles in Canadian industry. In its 15-year history, TRLabs has
trained nearly 700 highly skilled university graduates; created 250
technologies adapted for use by companies; and, generated 43
patented inventions.
- WD recently supported the development of the Network for
Emerging Wireless Technologies (NEWT) at the Alastair Ross
Technology Centre in the Calgary Research Park. NEWT is
currently one of the most developed wireless test beds in Canada
and is becoming a model for other wireless test. Investments in
NEWT totalled $3.5 million including $1.5 million from WD and
$400,000 from Alberta Innovation and Science, with the remaining
$1.6 million to be generated from industry user fees and
memberships.
Life Sciences:
The life sciences sector (including biotechnology and genomics
cluster) has experienced phenomenal growth in Western Canada, and
WD has been an important part of that growth. In British Columbia,
the industry now employs more than 3,000 people and consists of
over 90 private biotech firms and several public research
institutions. It has been estimated that over 70 per cent of the
biotechnology companies have been born out of local research. Some
leading examples of life sciences investments:
- BC Cancer Agency: WD provided $1 million to the BC
Cancer Agency to acquire equipment for its affiliated Genome
Sciences Centre (GSC) and administered an additional $10 million
approved in the 2002 Federal Budget. The priority of GSC is to find
innovative means to automate the DNA sequencing and fingerprinting
process, and develop cost-effective measures that will make such
research financially viable. The GSC will also be able to improve
the diagnosis of disease, develop new medicines and apply genomics
knowledge to other areas important to BC's economy.
- Genome BC: WD provided funding to help Genome BC develop
a research-funding proposal to Genome Canada. By creating an
infrastructure, encouraging investment and technology transfer, and
establishing partnerships with researchers and research facilities,
Genome BC is creating a "virtual institute" for genomics research,
and BC is emerging as a world leader in this field. BC boasts the
highest per capita investment by Genome Canada in the country, with
approved projects and platforms worth over $100 million.
- Saskatchewan's Ag-biotechnology cluster: WD's
investments in Saskatchewan have contributed to increasing capacity
of this world-recognized technology cluster. Examples of these
investments include:
- The National Research Council's Plant Biotechnology Institute
(PBI) in Saskatoon received funding under Western Economic
Partnership Agreement for a multi-million dollar expansion to
develop a technology incubator facility. Five tenants have
committed to the facility and there is additional space for two
more companies. The incubator companies at PBI have attracted $15
million in investment capital.
- WD provided funding for expansion of the Veterinary Infectious
Disease Organization at the University of Saskatchewan. Research in
this expanded facility is expected to lead to the development of
new medicines and vaccines to combat infectious diseases in both
humans and animals. As a result of the two projects, the staff
complement will grow from 50 to 140 people.
- Manitoba's emerging health cluster: WD has invested in
several projects designed to capitalize on the life sciences
expertise in Manitoba. These include the St. Boniface General
Hospital Research Centre, home to dozens of major world-class
research programs. WD funding includes $1.25 million for a filmless
radiology network, $4.5 million for a demonstration site of MRI,
$2.1 million to establish a Centre of Health Research for the
Elderly, and $3 million for a clinical cardiology research
initiative. More recently, St. Boniface received $5 million in WD
support to establish the I.H. Asper Clinical Research
Institute (total project cost: $25 million). The new research
facility will help Manitoba further develop its reputation as a
leader in vascular and cardiology science/health research in
Canada; as Manitoba will have one of only three facilities across
Canada that can support Phase 1 to Phase 3 clinical trials for new
drugs and medical devices. The facility will make it easier for
companies and entrepreneurs to test their products in preparation
for commercialization.
Other Technologies:
- WD support has enabled the University of Regina to become a
leader in climate change research through the new Greenhouse Gas
Technology Centre, the International Test Centre for Carbon
Dioxide Capture, the Prairie Adaptation Research
Collaborative (PARC) and the associated work of the
Petroleum Technology Research Centre, which is the leading
research centre for the study of heavy oil in the world.
- WD played a vital role in enabling the Canadian Light Source
(CLS) synchrotron, currently under construction in Saskatoon. When
it becomes operational in 2004, CLS will be Canada's largest
research and development facility. In association with the Alberta
Synchrotron Institute and the Saskatchewan Synchrotron Institute,
CLS has positioned Western Canada to develop a core competence
related to the use of synchrotron science in the fields of
proteomics, nanotechnology and a variety of molecular biology and
physics disciplines.
Objective C: More innovative communities WD will
support the development of community innovation strategies,
enhanced linkages between communities and research institutions,
enhanced technology commercialization, and increased
linkages.
WD has also supported a wide range of initiatives designed to
enhance regional innovation performance. For example, WD has
provided support:
- For a major study to review innovation activity in
rural areas of BC. The report detailed eight major strategic
directions for improving innovation and science & technology
commercialization.
- For the establishment of the Olds College Centre
for Innovation (OCCI), with a mandate to encourage innovation
and diversification in Alberta's agricultural community. OCCI now
has a staff of 17 (including 4 PhD's) and operates four research
and commercialization streams. The Canada Foundation for Innovation
(CFI) awarded $805,000 to the College for research in July 2000
and, in January 2002, a $3.3 million value-added processing project
received approval from CFI.
- To enable WESTEST, an industry-owned research and
technology laboratory, to expand and upgrade its force and
vibration simulation laboratory in Portage La Prairie, Manitoba.
WESTEST forecasts the upgraded laboratory will generate some $2.9
million in additional fees and about $192 million in spin-off sales
over the next 10 years.
- The Saskatchewan Forest Centre in Prince
Albert to help bring new methods, ideas and technologies to the
Saskatchewan forestry industry; fill applied research gaps through
focused development fund investment; and develop knowledge and data
infrastructure. The Saskatchewan Forest Centre brings together
training, market research and private sector involvement from
across Saskatchewan and Canada.
Objective D: Priorities and Strategies Enhanced
coordination and alignment of innovation priorities and strategies
between federal provincial and other innovation players leading to
strategic multi-jurisdictional innovation initiatives.
During 2002-2003 WD employed several means to ensure government
plans were aligned with emerging opportunities. These included
regular meetings with provincial governments to discuss innovation
priorities and strategies, research on trends and on western
Canadian innovation capacity and performance, and the sponsorship
of regional and national events such as Bio 2002, and the Research
Money Conference on technology clusters.
The Senior Western Officials Forum on Innovation has been an
effective mechanism for joint federal-provincial planning and
collaboration. WD leads and coordinates this forum, with members
from the western provinces and territories, the National Research
Council and Industry Canada. The work of this forum also feeds into
a Western Deputy Ministers of Economic Development Forum, which
addresses innovation issues from the perspective of broader
economic development issues.
WD also leads, supports and participates in provincial and
multi-jurisdictional organizations that bring together key
innovation groups. Examples include Innovate BC, the Saskatchewan
and Manitoba Innovation Forum, the Canada West Health Innovation
Council and the WestLink Innovation Network.
Program, resources and results linkages:
Several programs are used to support WD's innovation activities,
including Western Economic Diversification Program (WDP),
Innovation and Community Investment Program (ICIP), First Jobs in
Science & Technology Program (FJST), and Canada Foundation for
Innovation Support Program (CFI-SP)
Management Practices:
Innovation is managed in each WD regional office with a
responsible manager and project officers. With WD's realignment, it
is expected that several policy and planning officers will provide
research and input to the innovation file. As well, WD has put
together an innovation team with representatives from all offices
to bring a strategic focus to innovation policy and operational
issues.
For additional information on WD management practices, please
see Modern Comptrollership, Section III: Government Wide
Initiatives.
PARTNERSHIPS Enhanced economic development through partnering with other
levels of government.
Consistent with WD's mandate to take a leadership role in
forging partnerships with western governments and advocating on
behalf of westerners within the federal government, WD coordinates
efforts and partners with other governments and the private sector
to address issues that are horizontal in nature and that have been
identified as federal priorities.
The objectives of these activities are to:
- connect the federal government to westerners;
- develop closer working relationships with provincial
governments;
- address regional priorities in a sustainable way;
- plan and develop federal strategies in key horizontal
issues;
- address issues that are federal priorities; and,
- forge partnerships with other governments, other departments
and the private sector to implement federal strategies.
Key Partners:
The department has developed formal partnerships as well as
ongoing working relationships with provincial and municipal
governments in the West. Through such mechanisms as bilateral and
trilateral agreements, WD collaborates with other governments to
identify issues and to jointly plan strategies to take advantage of
economic opportunities and address barriers to development. Over
eighty per cent of WD's funding support is undertaken in
partnership with other stakeholders.
The department also actively engages westerners in consultations
to identify needs and priorities and to forge new and expanded
partnerships with western stakeholders. It also has a strong
network including business associations, research organizations,
voluntary organizations and other interests that provide insights
into, and sensitivity to, the regional dynamic. The Secretary of
State's Business Advisory Councils, the western federal provincial
Deputy Ministers Economic Development Forum and the Assistant
Deputy Ministers' Policy Forums have been established in order to
anticipate emerging issues, communicatethese clearly to other
federal agencies and plan effective responses.
Key Targets and Overall Results:
Objective A: Coordination and Planning Address key
federal/regional economic development issues and opportunities
through increased interdepartmental/intergovernmental coordination
and strategic planning.
In 2002-2003, WD worked with provincial governments to develop
joint initiatives for northern and urban development, trade and
investment, and tourism development; as well as innovation,
business development and other regional priorities. The primary
vehicle for such arrangements is Western Economic Partnership
Agreements (WEPAs). These are 50:50 cost-shared federal provincial
arrangements that have proven to be useful joint planning and
implementation mechanisms. WEPAs have built positive relationships
between the four western provinces and the federal government;
addressed mutual economic development priorities that promote key
elements of the federal government's agenda; and reduced overlap
and duplication. In this sense, WEPAs supported the conclusion of a
November 2001 poll (CROP-Environics) that found that 71 per cent of
western Canadians want more federal-provincial cooperation.
Due to long-term budgetary uncertainties, it was not possible to
enter into new multi-year WEPAs during 2002-2003. Past agreements
focused on innovation, business development, community development
and other regional priorities. These expired at the end of March
2002, although expenditures on projects approved prior to that date
continued through the fiscal year. An evaluation of the Agreements
was undertaken and concluded that:
- WEPAs were relevant in meeting federal and provincial economic
development goals;
- effectiveness was achieved through low administrative
costs;
- survey results demonstrated a high level of client satisfaction
with the overall implementation of the WEPA program;
- WEPAs in each province have effectively leveraged additional
financial resources from the private sector and from other
government resources;
- WEPAs have already leveraged $458 million private sector
investment;
- project proponents forecast a significant level of private
sector investment in their projects in the future;
- to date, an estimated 120 new businesses have been started from
WEPA funded projects. It is estimated that, over a five year
period, a total of 586 new businesses will have started because of
WEPAs;
- nearly $500 million of capital has been invested in buildings
and equipment and projects have created over 1,300 fulltime jobs;
and,
- WEPA funding has been instrumental in advancing projects that
would not have otherwise moved forward and it has sped the progress
of numerous economic and community development projects in Western
Canada.
Examples of WEPA projects |
- Manitoba: St. Boniface Film-less Radiology
Centre
(WD funding $1.25 million, Total Project Cost $5.0
million) Pilot project linking five hospitals, a clinic and several
physicians to a network that allowed physicians access to secure
radiology images at their desktop. The Winnipeg Health care system
now uses this technology on a daily basis, reducing patient wait
times and increasing productivity.
- Saskatchewan: Petroleum Technology Research
Centre
(WD funding $3 million, Total Project Cost $11
million) The Regina-based centre positions Saskatchewan and the West as a
leader in environmentally and economically sustainable petroleum
technologies. The centre employs 50 scientists and graduate
students from the Saskatchewan Research Council and the University
of Regina.
- Alberta: Paper Making Technology Centre
(WD funding $ 700,000, Total Project Cost $2.8
million) This Edmonton-based facility provides members of the Alberta
Mechanical Pulping Consortium with one-stop product development
expertise and research facilities related to paper product
development.
- British Columbia: Vancouver Rapid Transit
Feasibility
(WD Funding $815,000, Total Project Cost $2.1
million) WD partnered with the BC provincial government, the Vancouver
Airport Authority, Transport Canada, the City of Vancouver and
Translink to investigate the feasibility of a rapid transit line
from downtown to the airport and
Richmond.
|
In 2002-2003, WD continued to work with provincial governments,
municipalities and other federal departments to bring focused
efforts to bear on key economic development issues in each of the
seven major western cities (Victoria, Vancouver, Edmonton, Calgary,
Regina, Saskatoon, and Winnipeg).
The Vancouver Agreement (VA), a tripartite agreement between the
federal, provincial, and local governments is the mechanism to work
with the community and businesses in support of sustainable
socio-economic development. The first focus is the revitalizing
Vancouver's Downtown Eastside (DTES). The DTES is often called "the
poorest ghetto" in Canada. In addition to poverty, the DTES has
high rates of hepatitis, tuberculosis and HIV/AIDS; and there is an
open drug scene in several areas. Crime rates are higher than
Vancouver's average, and businesses are leaving the area.
The VA focuses on coordinating initiatives and activities to
reduce gaps and overlaps in programs and services. The inclusion
and participation of DTES communities is considered essential to
the successful long-term revitalization of Vancouver's DTES.
Federally, WD, Health Canada and Human Resources Development Canada
(HRDC) have the lead roles in the implementing the VA, coordinating
the efforts of the 12 federal departments and participating on the
agreement's Management Committee.
The VA was established as an unfunded agreement aimed at
coordinating the use of existing authorities and programs to
finance initiatives. Each party has agreed to use resources from
existing federal, provincial and municipal programs to fund
projects and programs, and to focus a portion of those expenditures
on mutually-agreed activities. Recently, the Province of B.C. gave
$10 million to the VA, and this was matched by federal funds. To
date, projects in housing, policing, health services, street
improvement, economic, social and community development have been
supported.
While the problems facing the DTES are severe and of the kind
that would be expected to take years to influence, there are
already significant results that can be attributed to the work
carried out under the Agreement. These include:
- Since 1999 there have been 108 applications for city business
licenses in the DTES.
- The incidence of violent crime has decreased by 30 per cent and
property crime has declined by 30 per cent.
- The business licenses of more than 30 problem premises -
premises where illegal activity or unruly behaviour occur - have
been suspended, two problematic Single Room Occupancy Hotels have
been closed, and derelict buildings have been demolished.
- Streets, sidewalks and lane ways are cleaned more frequently
and thoroughly. Many public spaces have been, or soon will be,
upgraded and beautified.
- Vancouver Coastal Health has expanded health care services and
different types of treatment are now being made available. The
health care system is also working in a more coordinated fashion
with enforcement and social and economic development efforts.
- More than 650 units of housing have been built, and an
additional 365 units are on the way.
Vancouver Agreement Community and Economic Development Project Expenditures in
2002-2003 ($000) (For projects with WD involvement -
other non-WD projects under the VA not
included) |
|
WD
|
Province
|
City
|
Community
|
Economic/Business Development |
$1,815.1 |
$1,448.0 |
$310.0 |
$93.0 |
Business/Public Space
Enhancement |
$2,870.7 |
$992.8 |
$2,290.0 |
$1,777.1 |
Aboriginal Business & Economic
Develop |
$267.5 |
$227.5 |
|
$7.0 |
Pre-Employment Skills
Development |
$1,250.8 |
|
|
$61.2 |
Evaluation and Planning |
$822.8 |
$272.8 |
$272.8 |
$50.0 |
Community Development |
$270.0 |
$574.0 |
|
|
TOTAL |
$7,296.9 |
$3,515.0 |
$2,872.8 |
$1,988.4 |
WD continues to work with the Regional Councils of Senior
Federal Officials. WD assumes an active role in the coordination
and management of horizontal issues, such as the Urban Aboriginal
Strategy, to address the economic development issues facing
Aboriginal peoples in urban areas and Indian and Northern Affairs
Canada (INAC) and Privy Council Office's (PCO) Regional Partnering
Strategy that aims to enhance cooperation with the provincial
governments in order to address issues and realize
opportunities.
WD also supports a number of projects designed to help
communities create and/or maintain a sustainable economic base. For
example, a 200 passenger cruise ship terminal is being developed to
help establish Campbell River as a port of call for international
cruise lines and develop the tourism industry in the area. WD,
INAC, the Province of British Columbia and the Ports and
Destinations Group support this project. It is part of an
initiative to enhance the cruise industry in British Columbia,
which will help diversify the economies of coastal communities
damaged by the decline of the fishing and forestry industries. The
total cost of the project will be $6.2 million, of which WD's share
is $1.5 million.
The cooperative approaches taken by WD with both provincial and
municipal governments in the West are improving the state of
federal-provincial relations, reducing duplication of effort and
encouraging the broader participation by westerners in the benefits
of economic growth. Finally, the partnerships with the provincial
governments and the private sector improve the investment climate
in the West and the prospect of realizing economic
opportunities.
Objective B: Models for Cooperation Innovative regional
models for interdepartmental/intergovernmental relationships,
thereby creating a culture of coordination and
cooperation.
During 2002-2003 WD, the Province of Saskatchewan and the people
of Northern Saskatchewan entered into the Canada/Saskatchewan
Northern Development Agreement. Aboriginal people make up a large
percentage of Saskatchewan's northern population. The agreement
includes funding of $20 million over five years, cost-shared
equally between WD and the Saskatchewan government.
The agreement provides funding for projects that support the
economic development of Northern Saskatchewan in the areas of
economic infrastructure, innovation, increasing capacity, realizing
employment opportunities and investment attraction. A management
committee has been formed to administer and manage the agreement,
including the review and approval of all projects. The committee
consists of federal and provincial representatives as well as
members of the Northern Development Board (NDB). The NDB includes
representatives from the Prince Albert Grand Council, Meadow Lake
Tribal Council, Métis Nation of Saskatchewan, and the
Saskatchewan Association of Northern Communities (New North),
together with Athabasca First Nation Chiefs.
Program, resources and results linkages:
A variety of departmental programs are used to support the
Partnerships strategic outcome, including the Western
Diversification Program (WDP), the department's primary tool for
the development and diversification of the western Canadian
economy; the Conference Sponsorships Program, which offers a means
for WD to develop and maintain valuable linkages with important
western stakeholder groups; and the Innovation & Community
Investment Program (ICIP) which supports innovation and creates new
economic opportunities in western Canadian communities.
Management Practices:
For information on WD management practices, please see Modern
Comptrollership, Section III: Government Wide Initiatives.
ENTREPRENEURSHIP
A developed and expanded business sector in Western
Canada.
In 2002-2003, WD contributed toward the development of a
competitive and expanded business sector in Western Canada by
focusing on four key areas:
- improving business management capabilities of small- and
mediumsized enterprises (SMEs);
- improving access to financing;
- increasing investment in Western Canada; and,
- increasing participation in international markets.
Key Partners:
WD addresses the needs of SMEs and entrepreneurs through a
variety of service delivery mechanisms and partnerships. These
include more than 100 offices of the Western Canada Business
Service Network (WCBSN)
http://www.wd.gc.ca/pos/default_e.asp including
Community Futures Development Corporations (CFDCs), Women's
Enterprise Initiatives (WEIs), Francophone Economic Development
Organizations (FEDOs), and the Canada Business Services Centres
(CBSCs).
Volunteer boards of directors, who are representative of the
communities they serve, govern the CFDCs, WEIs and FEDOs. WD
provides operating assistance to these organizations to help them
provide local solutions to community challenges. Through these
partnerships, WD provides citizen-centered service delivery to meet
the needs of western entrepreneurs including rural, women, youth,
Francophone and Aboriginal entrepreneurs, as well as entrepreneurs
with disabilities. These organizations are also dependent upon a
broad base of community volunteers who contribute to meeting the
objectives of the organizations.
In 2002-2003 the 90 CFDCs in the West engaged 2,905
community-based volunteers, including board members, who provided
104,869 volunteer hours. WEI engaged 124 volunteers, including
board members, who provided 2,874 volunteer hours. FEDOs engaged 99
volunteers, including board members who provided 1,251 volunteer
hours.
WD has created new and alternative sources of capital for small-
and medium-sized businesses by working closely with financial
institutions to create a specialized series of loan programs under
the Loan Investment Fund Program. These loan programs target
industry sectors important to Western Canada and provide patient
and flexible debt capital on terms especially suited to the unique
needs and cash flow requirements of these small businesses. These
programs are provided on commercial terms by financial institutions
such as chartered banks, credit unions, trust companies, the Farm
Credit Corporation and the Business Development Bank of Canada.
Each lending institution funds its own program and makes the
decision on all loan approvals. More information may be found at
http://www.wd.gc.ca/finance/xnetwork_e.asp.
WD supports the Aboriginal Business Service Network (ABSN),
which provides information and services to Aboriginal businesses.
More information may be found at
http://www.cbsc.org/absn/.
In addition to the provision of business and lending services,
the CFDCs also engage in partnerships to carry out a variety of
community economic development projects. A 2002 impact study
carried out by Ference Weicker & Company found that the
emphasis placed by CFDCs on community economic development
activities is increasing and also that the leadership and support
provided to these projects by the CFDCs has been critical to their
implementation. The study examined 24 active projects, 10 of which
were still in the early stages of implementation. Many of the
selected projects have only started to generate impact, and it is
expected the effects of the projects will continue to accrue over
time. Even at this early stage, the study found the 24 projects had
resulted in the creation of 719 jobs, the development of 46
businesses, increased revenues of $4 million, and investment of
$2.2 million. Of the $15 million expended on these projects,
approximately $6 million was provided by the private sector, $2
million from the federal government, $4 million from the provincial
governments and $2 million from financial institutions. Local and
regional governments, community agencies, WEI and First Nations
groups also contributed resources. Each dollar contributed by CFDCs
(excluding loans capital) was found to have leveraged $88.35 in
public and private sector project funding. Highlights from the
impact study may be viewed at
http://www.communityfutures.ca/provincial/bc/pdf/impact-study.pdf.
Key Targets and Overall Results:
Objective A: SME Capabilities Improved Business
Management Capabilities of Small and Medium Enterprises.
In 1995 WD formed client service units to assist SMEs in
accomplishing their goals, including working with entrepreneurs to
provide one-on-one business advisory services. Since that time, the
Western Canada Business Service Network (WCBSN) has grown and
matured to the point where it can assume the role of providing
transaction-based business advisory services. 2002-2003 was a
transition year and saw a declining level of services provided
directly to SMEs by WD staff as services were redirected to WCBSN
members. This shift has allowed WD to reallocate its staff
resources to other priorities while maintaining a high level of
client services to SMEs. WD remains committed to entrepreneurship
and entrepreneurial development and will focus its efforts on more
advanced levels of services to stakeholders.
WD Staff Service Results for 2002-2003:
- 10,234 business inquiries lasting less than 30 minutes.
- 4,008 clients received business management services.
- 214 applications were reviewed for funding under the First Jobs
in Science and Technology program with 170 application approved for
195 graduates.
- 264 clients participated in 12 financing seminars.
- 2,400 clients participated in 67 business management seminars
on e-business and business planning.
- 1,130 clients received one-on-one counselling services on
business management.
WCBSN Service Results for 2002-2003
Community Futures Development Corporations
- 90 CFDCs in the West provided 458,705 general information
services, 120,742in depth technical advisory services, and 59,304
training services. This includes 41,729 information services, 8,613
technical advisory services, and 2,890 training services to
Aboriginal clients. An impact study carried out in 2002 by Ference
Weicker & Company found that clients surveyed on CFDC business
services attribute most of their success to the assistance they
received from the CFDC. On average, the clients estimated that
there was only a 33 per cent chance they would have been able to
develop their business to the extent they did without the
assistance of the CFDC. Forty-three percent of the clients surveyed
indicated that there was no chance at all that their business would
have developed in the absence of the services provided by the CFDC.
Overall, the clients surveyed attributed 59 per cent of their
business revenues to the services they received from the CFDC. The
impact study estimated that as a result of the services provided by
CFDCs each year that businesses receiving this support generated up
to $1.4 billion in revenues from 1995 to 2001. Highlights from the
impact study may be viewed at
http://www.communityfutures.ca/provincial/bc/pdf/impact-study.pdf.
Women's Enterprise Initiatives
- In 2002-2003, WEIs responded to 25,609 business information
inquiries, provided 7,271business advisory appointments, and
provided 5,696 clients with training services. WEI web sites
received 108,192 visits during this period. A recent impact study
by Equinox Management Consultants Ltd. found a direct association
between WEI advisory assistance and business development in almost
60 per cent of cases studied. In addition, the study found that WEI
involvement appeared to be associated with considerable job
formation and retention. They estimated that the WEI services and
programs played a role in the creation of an estimated 3,111
additional full-time jobs and another 9,889 part-time jobs.
Moreover, the study estimated that the WEI was involved in the
retention of 6,704 full-time jobs and 18,999 part-time jobs.
Clients almost uniformly rated WEI staff as knowledgeable and
sensitive to their needs. More than two-thirds of respondents noted
WEI business service strengths as evaluation of entrepreneurial
skills, assistance in building self-confidence, understanding
financial risks, developing business concepts and identifying
growth opportunities. WEIs training and business counselling
services were found to help fill the experience gap that limits
women-owned firms from growing as fast as those owned by men. The
skills developed as a result of the assistance provided by the WEI
were also found to help women entrepreneurs address the credibility
problems with which they often contend. The executive summary of
the impact study may be viewed at
http://www.womenentrepreneurs.sk.ca/publications/Executive_Summary.pdf.
Francophone Economic Development Organizations
- FEDOs provided 9,618 information services, 1,262 technical
advisory services, and 848 training services. FEDO web sites
received 48,275 visits during 2002-2003.
Canada Business Services Centres
- The four western CBSCs facilitated 198,548 officer-assisted
interactions (telephone, walk-in, fax, mail, e-mail), 18,095
self-service interactions (fax-on-demand and automated telephone
-excludes web site visits), and 1,440,300 CBSC web site visits.
Please see the national CBSC web site at
http://www.cbsc.org/.
- These CBSCs addressed a total of 3,594 export inquiries
received via the Team Canada Inc (TCI) help line. TCI callers are
looking for practical information on export regulations, tariffs,
logistics, market intelligence, sourcing, financing and
training.
Collectively, the members of the WCBSN held or participated in
over 3,550 marketing events and trade shows during the year.
Objective B. Improved Access to Financing for Small and
Medium Enterprises
Various studies have shown that access to capital is
often more of a barrier than the cost of capital for small- and
medium-sized enterprises (SMEs). Since June 1995, WD has responded
with the development of two types of SME loan programs:
- developmental loans delivered by CFDCs, WEIs and FEDOs;
and,
- a variety of Pan-western, sector-oriented (e.g. agricultural
value-added and knowledge-based industry) loan fund agreements with
chartered banks and federal Crown corporations.
WD has also leveraged provincially and locally targeted loan
funds with CFDCs in British Columbia, as well as with capital
providers such as:
- the Working Opportunity Fund;
- Columbia Basin Trust;
- Insurance Corporation of BC;
- VanCity Savings Credit Union;
- VanCity Capital Corporation; and,
- Ecotrust Canada.
In addition, Urban Micro-loan funds, Entrepreneurs with
Disabilities funds and Francophone loan funds have been established
with the following financial institutions:
- VanCity;
- Assiniboine Credit Union;
- Page Credit Union;
- Saskatoon Credit Union;
- Coast Capital Credit Union;
- Capital City Credit Union;
- Beaumont Credit Union;
- the First Nations Bank of Canada; and,
- the Business Development Bank of Canada (BDC).
These funds are all designed to provide "patient debt capital"
for companies that are unable to secure regular financing due to a
lack of hard assets for collateral, a lack of resources and
experience in preparing a business case, the early stage of the
company, and/or a lack of familiarity of capital providers with the
industry sector.
The financial institutions, using their own capital, authorize
and issue loans. WD contributes to a loan loss reserve, equal to
between 10 per cent and 20 per cent of the value of loans issued.
This reserve may be used to offset a portion (up to 80 per cent) of
net losses on defaulted loans, but may not exceed WD's total
contribution to the reserve.
The Pan-western sector-oriented funds offer loans up to $1
million to SMEs (the average loan size is $340,000). The micro-loan
and other smaller loan funds provide loans averaging $14,000 to
very small and start-up businesses in most of the large cities in
Western Canada.
WD has committed up to $44 million in repayable contributions to
loan loss reserves to support these loan fund agreements. This
commitment will leverage up to $281 million directly from capital
providers for loans to SMEs.
In 2002-2003, a total of 371 loans valued at $23 million were
approved, of which:
- $14.4 million was for 59 loans under the larger, sector based
loan funds; and,
- $8.5 million was for 312 loans under the smaller micro-loan,
Francophone, Community Investment, and Entrepreneurs with
Disabilities loan funds.
Loan Fund Program Results |
From the beginning of the program until March 2003, 1,878 loans
totalling $162 million have been approved under the program. Based
on a program evaluation, an estimated further $58 - $79 million in
other financing was indirectly leveraged; an estimated 3,200 -
6,100 jobs have been created; incremental revenues for SME clients
are estimated to be between $337 - $851 million; and incremental
exports are estimated between $95 - $143
million. |
The following is an excerpt from a case study (Evaluation of the
Loan Investment Fund, Ference Weicker & Company, July
2002) in an
independent evaluation, providing an example of the type of client
and results of a bank loan that has been leveraged by much smaller
Loan Loss Reserve contributions from WD.
Case Study: Venture Seeds |
Venture Seeds Ltd. is a mustard seed cleaning plant located in
Brunkild, Manitoba. The company purchases seed for cleaning, and
also cleans seed on a contract basis for farmers. Most of the
mustard seed cleaned by Venture Seeds is exported. Venture Seeds
has been in operation for three years and currently employs five
full-time and two part-time employees.
In addition to shareholder contributions, the primary sources of
financing are a Loan Investment Fund Program (LIFP) loan of
$350,000 from the Farm Credit Corporation (FCC) Agricultural
Value-Added Processor Loan Fund, and subordinated debt financing of
$200,000 by the Crocus Fund. The company also obtained a line of
credit of $100,000 from CIBC. Since the LIFP loan, the company has
obtained a conventional loan of $97,000 from FCC to purchase
additional equipment for another seed processing production
line.
According to the General Manager, the company would not have
been able to commence operations without the LIFP loan. The impacts
that can be attributed to the LIFP loan include the creation of
five full time and two part time jobs and significant export
sales. |
WD has also provided its WCBSN network partners with funds to
enable them to make repayable loans to SMEs in targeted areas (i.e.
rural SMEs, SMEs operated by women, Francophone, disabled, or young
entrepreneurs, and urban SMEs in identified priority sectors). WD
and its network partners also provide SMEs with path finding
services and referrals to alternate sources of financing.
Results for 2002-2003:
- 90 CFDCs in the West approved 1,604 loans through the
Loan Funds, totalling $52.1 million, which are expected to create
or maintain 5403 jobs. This includes 101 loans to Entrepreneurs
with Disabilities, totalling $1.9 million, which created or
maintained 229.5 jobs; 129 loans to youth, totalling $1.7 million,
which created or maintained 189.3 jobs; 179 loans to Aboriginal
clients, totalling $3.6 million, which created or maintained 298.8
jobs; and 186 loans through other Partnership Loan Funds by CFDCs
in BC, totalling $8.1 million which created or maintained 555
jobs.
- During 2001-2002, WEI approved 123 loans, totalling $3.7
million, which created or maintained 399 jobs.
- The majority of FEDO lending activity is through
leveraged loan funds with the exception of the Conseil de
développement économique des municipalités bilingues
du Manitoba (CDEM) which also has a loan fund. During 2002-2003
CDEM provided 4 direct loans totalling $242,000, which created or
maintained 24.5 jobs.
- CFDCs leveraged $64.1 million through direct lending
activity and the WEIs leveraged $2.6 million through direct
lending activity. In addition to the leveraged loan fund activity
FEDOs leveraged $3.7 million through both direct lending and
indirect (referrals) lending activity.
Objective C: Trade and Investment Increased participation in
international markets
WD's strategy in support of trade and investment involved
activity in four key areas: research, trade policy, trade promotion
and investment attraction. Activities varied from strategic
participation in Team Canada missions to taking action when western
companies were impacted in trade actions such as the softwood
lumber dispute. WD has partnered with other federal departments,
the provinces and local organizations to enhance overall support
for trade and investment in the West through participation in such
organizations as Trade Team Canada Inc., Regional Trade Networks,
Provincial Trade Teams and Western Trade Officials.
WD helps western exporters in key sectors by supporting their
participation in trade fairs and trade-related events around the
world. In 2002-2003 WD approved direct financial sponsorship of
$478,960 for forty-one trade events. WD also sponsored events such
as the Canada Export Awards Lifetime Achievement Award (won
by Fincentric Corporation of BC); Bio Partnering North
America (a global biotech leader conference in Vancouver); and
provided support for 40 western Canadian participants in
American 2002 - Pan American Environmental Technology
Trade Show and the Western Aerospace Alliance
Conference.
In 2002-2003 WD provided funding of over $7 million for market
development in the form of export preparedness and trade and
investment projects. Examples of projects include support for
Project Germany, a three-year project with the goal of attracting
10 new German companies to the Edmonton region (investment valued
at $50-70 million); support for the University of Saskatchewan to
attract investment into genome research, which has already resulted
in an investment by an American company; and support for the Canada
BC Business Services Society to develop enhanced export planning
and consulting capacity. Market development is also achieved
through projects funded through the International Trade Personnel
Program (ITPP), which resulted in 77 companies and industry
associations being approved for funding which resulted in the
hiring of 82 recent graduates to implement international marketing
projects.
Objective D: Selling to Government Increased
participation of western firms selling their products and services
to government.
WD's procurement activities respond to individual situations on
the basis of merit, such as where there is significant benefit to
be derived for Western Canada. Ongoing, effective collaboration
among federal and provincial governments and the private sector
will be important to ensure that procurement opportunities for
western businesses are maximized.
Programs, resources and results linkages:
The Entrepreneurship strategic outcome is delivered via a number
of departmental programs, including the Western Diversification
Program; the Loan Investment Fund Program; International Trade
Personnel Program; the Conference Sponsorship Program; and the
Service Delivery Network and the Community Futures programs (with
G&C terms and conditions specific to these two activities).
Management Practices:
WD has worked for several years to build a cost-effective
business service network to help entrepreneurs to grow and expand
their businesses. Included in this network has been a contingent of
WD client service officers located in each WD office in Western
Canada. Following a review of departmental operations, the
department has determined that most SME needs, particularly
one-on-one business counselling and seminars, can be effectively
met through the WCBSN and other partners. As a result of this
increased capacity by partners, WD employee resources have been
realigned to meet other program and policy demands being placed on
the department.
For additional information on WD management practices, please
see Modern Comptrollership, Section III: Government Wide
Initiatives.
ECONOMIC RESEARCH AND ADVOCACY
Provide effective strategies, policies and programs that
address the economic development needs, opportunities and
aspirations of western Canada
The Economic Research and Advocacy function embraces a continuum
of activities that result in strategies, policies and programs that
address the economic development needs, opportunities, and
aspirations of Western Canada.
Economic research is undertaken in order to understand Western
Canada, its place in the country, the world, and the present and
future challenges and opportunities facing the region. Through the
knowledge generated by disseminating and promoting research,
awareness is created about relevant issues and a climate conducive
to effective policy formulation is established. The department
sponsors research projects that have a direct relationship to its
economic development mandate and core program areas. Importantly,
research findings are intended to lead to policies that help the
region achieve its ultimate economic potential, thus leading to a
stronger national economy.
The research generated by the department helps create increased
regional collaboration among economic development stakeholders.
Through the collaborative sharing of research and knowledge, a
variety of stakeholders including federal and provincial
governments convene to explore policy options and best practices.
It is through such collaborative efforts that economic development
occurs.
Research findings are also used to help create an alignment
between national policies and programs and the economic
circumstances of Western Canada. Within a country as large and
economically diverse as Canada, it is difficult to create national
policies and programs that impact all regions of the country
equitably. National policy makers can only develop effective
national policies and programs when departments such as WD have the
knowledge to undertake informal advocacy to promote a better
understanding of regional circumstances.
2002-2003 Expenditures:
- G&C - $1.9 million
- O&M - $152,537
Key Partners:
Key partners in planning and sponsoring research include other
federal government departments and provincial government economic
development departments. Key partners in carrying out research in
2002-2003 included the Canada West Foundation
www.cwf.ca, the Conference
Board of Canada www.conferenceboard.ca and the Canada West Health
Innovation Council www.cwhic.ca
Examples of WD's research products can be viewed on research and
publications section of the Department's website at
www.wd.gc.ca
Key Targets and Overall Results:
Objective A: Information and analysis that provides a
sound basis for economic development action in Western Canada.
Fifteen research projects and related sponsorships were approved
in addition to the internal research and analysis within the
department.
Objective B: Increased regional collaboration on economic
development research and programming.
The federal-provincial Western Economic Development Deputy
Ministers' Forum (DM Forum) identified areas for joint
collaboration, and agreed to an invigorated forward agenda for the
Forum. The Western Assistant Deputy Minister (ADM) Policy Group met
to follow-up on the direction provided by the DM Forum. The Senior
Officials Forum on Innovation also met several times and made
progress in a number of priority areas. Federal-Provincial
collaboration through these forums has resulted in: improved
processes to advance mutual interests in Western Canada; more
effective mechanisms for sharing information; increased
collaboration on economic development matters affecting the West;
and increased opportunities for joint planning and joint decision
making on western priorities.
Objective C: Alignment between national policies and
programs and the economic circumstances of Western Canada.
WD supported the Canada West Health Innovation Council to
contribute to national policy development in the area of utilizing
the national health care system as an engine of economic growth and
development.
Program, resources and results linkages:
Research projects undertaken by WD are funded through
contributions made under the Western Diversification Program, or
through contracts established under the department's operations and
maintenance budget and spending guidelines.
Management Practices:
The 2002-2003 policy research activity was an important
contributor to the department's Government on Line strategy,
through the revision and expansion of the Research and Publications
section on WD's public website. This initiative has made
departmental-sponsored research available to the public.
For additional information on WD management practices, please
see Modern Comptrollership Section III: Government Wide
Initiatives.
NATIONAL PROGRAMS AND OTHER INITIATIVES
Mitigation of the economic impact on communities affected by
federal facility closures or reductions, natural disasters, or
changes in federal policies and programs through the delivery of
national programs in Western Canada
A. Infrastructure Canada Program
WD implements the Infrastructure Canada Program in partnership
with provincial and municipal governments in Western Canada.
The $2.05 billion Infrastructure Canada Program (ICP), was
created in 2000 to enhance municipal infrastructure in urban and
rural communities across the country, and to improved Canada's
quality of life through investments that protect the environment
and support long-term economic growth.
Key Partners:
The Minister of Industry and Minister responsible for
Infrastructure, supported by the new department, Infrastructure
Canada http://www.infrastructurecanada.gc.ca, has been assigned
responsibility for the overall management of this contribution
program. ICP is delivered by the following federal agencies and
departments:
- Western Economic Diversification Canada (British Columbia,
Alberta, Saskatchewan, and Manitoba)
- Industry Canada (Ontario)
- Canada Economic Development for Regions of Quebec
- Atlantic Canada Opportunities Agency (Newfoundland and
Labrador, Nova Scotia, Prince Edward Island and New Brunswick)
- Indian and Northern Affairs Canada (First Nations Component,
Yukon, Nunavut and Northwest Territories)
In most cases, the Government of Canada is matching the
provincial and territorial contribution, and generally providing up
to one-third of the cost of infrastructure projects. The program's
first priority is green municipal infrastructure, i.e., projects
that improve the quality of the environment and contribute to
Canada's goal of clean air and clean water.
Key Targets and Overall Results:
Activity to date is summarized in Table 1 below.
Jurisdiction
|
Total Federal
Funding Allocation ($000)
|
No. of Approved
Project to March 31, 2003
|
Approved
federal contribution to March 31, 2003 ($000)
|
Total federal
expenditures to March 31, 2003 ($000)
|
BC |
268,548 |
126 |
144,771 |
2,006 |
AB |
171,028 |
492 |
119,714 |
24,684 |
SK |
56,711 |
261 |
37,520 |
22,336 |
MB |
60,918 |
120 |
49,394 |
20,147 |
Approved Projects
![2002-2003 Approved Projects - Total WD](/web/20061030004817im_/http://www.tbs-sct.gc.ca/rma/dpr/02-03/WED-DEO/images/dpr_graph5_e.gif)
Projects approved to date in British Columbia, Alberta,
Saskatchewan and Manitoba will result in:
- 29,477 households to be connected to a municipal potable
water supply;
- 28,288 households to be connected to a municipal
wastewater system; and,
- 1,171,483 households connected to municipal potable
water receiving higher quality potable water.
As well, other projects approved to date will provide funding
to:
- Improved local transportation infrastructure in over 131
communities;
- Improve sports, recreation and cultural facilities in 54
communities; and,
- 1,003 permanent jobs will be created directly by
projects
Program, resources and results linkages: ICP is an example of
a horizontal initiative involving many federal partners. As part of
a new reporting requirement for Departmental Performance Reports,
significant horizontal initiatives* are being
reported for the first time in a template completed by all partners
and accessible at the following link
http://www.tbs-sct.gc.ca.
* Significant
horizontal initiatives are those that are key to the achievement of
strategic outcomes, and/or involve a high level of risk, and/or
represent a substantial investment of public resources.
Management Practices:
The ICP is a joint federal/provincial initiative with agreements
negotiated in each province determining the co-delivery model to be
used and setting out the specific targets in each province. In all
provinces there is a joint delivery mechanism, in some a formal
secretariat and in others a virtual secretariat. In all four
western provinces the delivery model includes a significant role
for municipal government in the development and review of projects
while preserving federal authority to approve projects.
For additional information on WD management practices, please
see Modern Comptrollership, Section III: Government Wide
Initiatives.
B. Other Initiatives Coordinate efforts by federal
departments to mitigate effects of natural disasters, base closures
or changes to federal policies and programs.
Key Targets and Overall Results: Softwood Industry
Community Economic Adjustment Initiative (SICEAI) As part of the federal response to communities seriously impacted
by reduction in softwood lumber activity due to the US import
duties, the $110 million SICEAI was announced in December 2002. The
intention of this initiative is to seed local economic adjustment
projects that transition away from total softwood dependence. In
the West the program is primarily intended for BC with WD
responsible for program delivery. To assure that this is a
community driven initiative the program will be delivered through
the network of Community Futures Development Corporations. It is
expected that some $50-70 million will be committed in BC with the
first project approvals expected in August 2003.
Royal Roads University In 2002-03, the funds
continued to be used to upgrade the historic Royal Roads buildings
in British Columbia to meet the needs of the new Royal Roads
University. Community input remains an important feature of the
upgrade program, thereby maintaining the look and feel of the turn
of the century Edwardian estate. The funds were also used to
mitigate the cost of operating in the historic buildings and
maintaining the four historic gardens. This was the final year of a
three-year project
The Canada-Manitoba Partnership Agreement on Red River Valley
Flood Protection The agreement continued over the past year
to provide improved flood protection infrastructure to communities
in the Red River Valley as well as individual home and business
flood protection in the valley.
SECTION IV: GOVERNMENT WIDE INITIATIVES
1. Government On Line
The GOL initiative at Western Economic Diversification Canada is
increasingly imbedded in departmental core programming. On-line
products have been developed in support of the re-aligned strategic
directions of Innovation, Entrepreneurship and Sustainable
Communities. On-line business tools, workshop presentations and
interactive guides are available to aid entrepreneurs. Online
submission guidelines are provided to enable access to business
development programs. Partner sites are also linked to enable
access to related programs throughout a broad regional service
network.
Projects identified in the 2002-03 Report on Plans and
Priorities centred on the development of web capacity, and upgrades
to WD's information technology infrastructure. Progress has been
made in each of these areas.
Developing Web Capacity Up-to-date information for
research is available through WD's on-line Media Centre, which
includes fact sheets, speeches and newsletters highlighting WD and
partner programs and activities. Fact Sheets, for example, provide
information to entrepreneurs on initiatives particular to Western
Canada that range from Fuel Cell development, to "One-Stop Business
Registration", to virtual reality technology.
Information Technology Infrastructure Upgrade The
2002-03 Report on Plans and Priorities identified Web Processes
Re-engineering, Web Redesign and Web Content Management as key
areas for upgrade to enable better client service. To achieve these
objectives an Information Management and Technology Branch was
established to develop and integrate GOL principles and guidelines
in the enhancement and implementation of future online
initiatives.
2. Sustainable Development Strategy
Western Economic Diversification Canada sees Sustainable
Development (SD) as a fundamental way of doing business, defining
it to be:
- an economic state where the demands placed on the environment
by people and commerce can be met without reducing the capacity of
the environment to provide for future generations;1
- economic development that has a positive, long-term social
and/or environmental benefit; and,
- meeting the needs of the present without compromising the
ability of future generations to meet their own needs.2
1. Paul Hawkens, The
Ecology of Commerce, p. 139.
2. Bruntland
Commission, Our Common Future.
In order to fully integrate sustainable development into our
planning, program delivery and operations, WD adopted a vision for
sustainable development:
WD is building a more sustainable Western Canada by providing
its employees and partners with practical tools to integrate
sustainable development into the three core areas of business or
strategic outcomes - innovation, entrepreneurship and sustainable
communities.
The department accomplished the three performance measures set out for
2002-03 for the Sustainable Development Strategy (SDS):
- WD created an Environmental Management System (EMS) and a
Strategic Environmental Assessment (SEA) process. The EMS provides
the department with a framework for management, tracking,
evaluating, and communicating our environmental performance,
activities, products and services. The SEA provides a process to
evaluate the environmental effects of a proposed policy, plan,
program, or other strategic-level initiative. Both procedural
documents were developed, with WD's program delivery needs and
environmental policy in mind.
- To integrate SD concepts into WD's decision-making processes,
modifications were made to project approval procedures. This also
improved data collection for the EMS and external reporting
requirements.
- WD trained staff on "buying green" and using "green" suppliers.
In addition, WD offered training to staff and the Western Canada
Business Service Network partners through the SD On-Line Learning
Tool, launched in June 2002 during Environmental Week. The on-line
tool was developed to encourage SD practices within WD and their
partner organizations and to introduce SD resources to clients. A
similar on-line tool targeted to small and medium sized business is
planned for launch in 2003-04.
3. Official Languages
Western Economic Diversification Canada (WD) is committed to the
objectives of Section 41 of the Official Languages Act
of:
- enhancing the vitality of the English and French linguistic
minority communities in Canada and supporting and assisting their
development; and,
- fostering the full recognition and use of both English and
French in Canadian society.
The Francophone Economic Development Organizations (FEDOs)
became members of WD's Western Canada Business Service Network
(WCBSN) in 2001. The FEDOs are la Société de
développement économique de la Colombie-Britannique, la
Chambre économique de l'Alberta, le Conseil de la
coopération de la Saskatchewan, and le Conseil des
municipalités bilingues du Manitoba. In partnership with
the four FEDOs, WD has implemented a Francophone Business
Development Strategy. In addition, WD continues to work with other
federal departments such as Canadian Heritage under the
Interdepartmental Partnership for the Official Languages
Communities to meet the needs of the French speaking population in
the West.
The 2002-2003 year marks the second year of the Francophone
Business Development Strategy, launched in April of 2001. The
strategy formalizes the partnership between the FEDOs and WD,
supports regional and Pan West Special Economic Development
Initiatives (SEDI), and creates loan loss reserve funds to increase
access to capital for Francophone small- and medium-sized
businesses. The partnership fosters links to other WCBSN members
and improves services to the local business community.
Among the noteworthy accomplishments are the projects undertaken
through SEDI to promote cultural and historical attractions,
bringing tourists to the Western Canada Francophone Tourism
Corridor. Examples of SEDI investments by WD include the Veseau
Beach Visual Identity project, to increase the visibility and
sustainability of the francophone community in Alberta,
highlighting the region's history, linguistic duality and Canadian
heritage. The Recognizing Regional Champions of Franco-Manitobans
Entrepreneurship project provides role models for young Francophone
entrepreneurs who are considering their own business ventures.
Another regional project involves the development of a website
promoting French cultural products and services offered within the
region, available at http://www.lesvoyageurs.ca/
4. Modern Comptrollership
Modern Comptrollership is a government-wide management reform
focused on the sound management of resources and effective
decision-making. WD has always been committed to good management,
and the requirement to update and improve how it manages is
evergreen. The Modern Comptrollership Initiative has provided the
department with a framework and resources that will allow it to
meet its management improvement goals in the short term, and to
support continuous advancements in efficiency and effectiveness
over the longer term. The action plan to implement Modern
Comptrollership impacts virtually every management activity in the
department. Furthermore, the activities listed below represent the
core of WD's management practices, affecting how resources are
organized and objectives are attained.
In 2002-2003 WD completed an assessment of its current state of
Modern Comptrollership using the Comptrollership Capacity
Assessment Tool developed by the Treasury Board Secretariat. The
capacity assessment provided the basis for creating a
comptrollership modernization action plan that highlights
management improvement objectives for the department. Highlights of
accomplishments in 2002-03 include the following:
- Five one-day Modern Comptrollership workshops held in Ottawa,
Winnipeg, Saskatoon, Edmonton and Vancouver with over 170
participants (representing over one-half of WD employees). The
sessions provided information on Modern Comptrollership concepts,
updated participants on the results of the capacity assessment, and
obtained ideas and commentary on the Action Plan; and also provided
a forum for staff to provide input to the departmental Values and
Ethics framework.
- Completed the realignment of regional personnel to provide a
greater focus on the department's strategic objectives and to
strengthen policy and coordination capacity. The provision of
one-on-one business services to SMEs has been migrated to the
Western Canada Business Service Network.
- Implemented a new Grants & Contribution Management
Framework resulting in better utilization of the department's core
Grants and Contribution appropriation, and a greater focus on
projects that support the department's strategic objectives.
- Implemented the Guidepost process for project
assessment, which requires more complete documentation of due
diligence and specific performance expectations for each
project.
- Established an Audit and Evaluation unit with increased staff
and resources.
- Reviewed all departmental awards programs leading to several
improvements, a sharing of best practices and the modification of
the Deputy Minister Award selection process. Also introduced in
2002 was the Keith Draper Award for Values and Ethics
awarded to the individuals who best represent the values and
ethical standards to which the department aspires.
- WD secured the highest participation rate (87 per cent) of any
federal department in the 2002 National Public Service Employee
Survey. For WD, the overall results showed improvement over the
1999 results, as well as a general rating level above public
service norms. Employees identified flexible work arrangements,
access to learning and the support of management as particular
strengths. Results also identified areas requiring improvement:
work life balance, career opportunities, and dealing with
discrimination.
- In February 2003 WD held half-day learning sessions for youth
on Modern Comptrollership in, Edmonton, Regina, Winnipeg and
Victoria. With support from Treasury Board, the project objectives
were accomplished, as indicated by positive responses on the
learning session evaluations.
5. Service Improvement Initiative
As a federal organization involved in the Service Improvement
Initiative, WD's priority continues to be the provision of high
levels of service to its clients. During the current year WD has
realigned its activities, and transferred delivery of its business
advisory services to the public to third parties, principally its
Western Canadian Business Service Network (WCBSN). A number of
capacity building initiatives were undertaken to ensure that
partners have the skills and resources to deliver quality service.
This was achieved using existing resources.
Key Partners Please see the report on the
Entrepreneurship Strategic Objective, Page ## for a complete list
of partners.
Key Programs, Resources and Results An evaluation of
the Western Canada Business Service Centres, was completed in the
first quarter of the year:
- 81.9 per cent of the Centres' clients reported that they were
very satisfied or satisfied with the service provided;
- 83 per cent indicated that they received business information
that was very important or important in the creation and operation
of their business;
- 85 per cent responded that the Centres' helped improve their
access to relevant business information;
- use of website and email access is increasing whereas fax on
demand has decreased significantly; and,
- of the 53 per cent of clients that received referrals to other
partners, 91 per cent said the referrals were accurate;
Due to this transition from direct to third party delivery, WD
itself performed no direct client satisfaction survey for this
year.
WD has continued to identify ways to improve partner service
delivery: first, by working with partners to incorporate service
level accountabilities in partnership and third party delivery
agreements, and, second, by encouraging establishment of
appropriate service delivery standards. WD is now better able to
track service delivery, through improved reporting systems that
provide better quality information and identification of gaps in
service delivery.
WD supported a citizen-centered learning event in January 2003,
to help promote improvements in client satisfaction levels. As a
member of the Pacific Council of Senior Federal Officials, WD
provided planning and marketing services for this annual event,
which attracted staff from over 100 federal and provincial public
sector organizations. Another Federal Council service improvement
initiative is underway in Saskatchewan, where a Service Delivery
Working Group (with 29 member organizations, including WD) has been
established to provide single-window services to the public.
SECTION V: FINANCIAL PERFORMANCE
Financial Performance Overview
This section contains a summary of the financial performance of
Western Economic Diversification Canada (WD) for the fiscal
2002-2003.
WD spent $246.8 million during the 2002-2003 fiscal year, $122.3
million less than the $369.1 million available. This
underutilization of available resources was primarily attributable
to:
- slower than anticipated implementation of the Infrastructure
Canada Program; and,
- In light of the expected reduction of resources available to WD
in 2003-2004 and subsequent years, WD implemented reductions in
current year spending and moved current year authorities to the
2003-2004 year to ensure that sufficient resources will be
available to settle existing contractual obligations.
Additional details are provided in the financial tables.
Financial Summary Tables
The financial tables depict the resources available to the
department in 2002-2003; how these resources were used; as well as,
the revenues generated by the department. The following tables are
included:
Definitions and source of the information included in these
financial tables is as follows:
- "Planned Spending" is the amount of planned spending at the
start of the fiscal year, as per the "Planned spending 2002-2003"
column of the 2002-2003 Report on Plans and Priorities;
- "Total Authorities" is the amount voted, for the 2002-2003
fiscal year, and includes Main and Supplementary Estimates and as
well as authorities transferred to WD from Treasury Board
Secretariat Vote 10 and Vote 15 during the 2002-2003 fiscal year.
These authorities agree with the authorities presented in the
2002-2003 Public Accounts.
- The "Actual " column displays the actual expenditures or
revenues, as reported in the 2002-2003 Public Accounts.
Table 1 - Summary of Voted
Appropriations
This table compares resources available to WD and actual
results. Explanations of the variances between Voted Appropriations
and actual results are presented below the table.
Western Economic
Diversification Canada
|
2002-2003
($millions)
|
Vote |
Total Authorities |
Actual |
Variance Surplus/(Deficit)
|
120 Operating Expenditures |
44.6 |
41.1 |
3.5 |
125 Grants and Contributions |
298.1 |
179.3 |
118.8 |
(S) Obligations under the Small
Business Loans Act |
10.1 |
10.1 |
-- |
(S) Obligations under the Canada
Small Business Financing Act |
9.1 |
9.1 |
-- |
(S) Contributions to Employee Benefit
Plans |
4.2 |
4.2 |
-- |
(S) Spending of proceeds from the
disposal of surplus Crown assets |
0.0 |
0.0 |
-- |
(S) Refunds of amounts credited to
revenues in previous years |
3.0 |
3.0 |
-- |
(S) Collection agency fees |
0.0 |
0.0 |
-- |
Total
Department |
369.1 |
246.8 |
122.3 |
Note: due to the table being in millions amounts too small
are displayed as zero's.
Explanation of
variance:
As presented in the table above, WD underutilized Vote 120
Operating Expenditures by $3.5 million and Vote 125 Grants and
Contributions by $118.8 million. Planned activity during 2002-2003
was influenced by the expectation that resources available to WD in
2003-2004 and subsequent years would decline significantly
Operating Expenditures Vote
120 |
$
millions
|
The $3.5 million variance is due to
the following factors: |
|
- reduction of internal budgets to enable carry-forward of
resources to 2003-2004;
|
2.0 |
- funds unutilized due to delays in the implementation of the
Infrastructure Canada Program; and,
|
0.8 |
- other unplanned reduction in expenditures.
|
0.7 |
Grants and Contributions Vote
125 |
The $118.8 million variance is
primarily due to: |
|
- delays in the implementation of the Infrastructure Canada
Program (ICP). The entire amount may be moved to future years to
implement the ICP; and,.
|
111.8 |
- Funds moved to 2003-2004 to meet Western Economic Partnership
Agreements obligations.
|
4.0 |
Table 2 - Comparison of Total Planned
Spending to Actual Spending
This table displays the variance between planned
spending included in the 2002-2003 Report on Plans and Priorities
and the actual results for the year. Explanations of the variances
are presented below the table.
Western Economic
Diversification Canada
|
2002-2003
($Millions)
|
Vote |
Planned Spending |
Actual |
Variance Surplus/(Deficit)
|
FTEs |
364 |
363 |
1 |
120 Operating Expenditures |
40.2 |
41.1 |
(0.9) |
125 Grants and Contributions |
300.9 |
179.3 |
121.6 |
(S) Obligations under the Small
Business Loans Act |
12.0 |
10.1 |
1.9 |
(S) Obligations under the Canada
Small Business Financing Act |
10.0 |
9.1 |
0.9 |
(S) Contributions to Employee Benefit
Plans |
4.8 |
4.2 |
0.6 |
(S) Spending of proceeds from the
disposal of surplus Crown assets |
0.0 |
0.0 |
-- |
(S) Refunds of amounts credited to
revenues in previous years |
0.0 |
3.0 |
(3.0) |
(S) Collection agency fees |
0.0 |
0.0 |
-- |
Total
Department |
367.9 |
246.8 |
121.1 |
Note: amounts under $100K are displayed as zeros.
Explanation of
variance:
Overall, the actual authorities of
$369.1 million (refer to Financial Table 1) provided to WD for the
year were $1.8 million greater than the amount of planned spending
in the 2002-2003 Report on Plan and Priorities. Actual spending for
Vote 120 Operating Expenditures was 2.2 per cent higher than
planned while Statutory Items in total were within 1.5 per cent of
planned spending. The only significant variance from Planned
Spending occurred in Vote 125 Grants and Contributions where
spending was 40.4 per cent less than planned due to delays in the
Infrastructure Canada Program and transfer of resources to
subsequent fiscal years to meet contractual
obligations.Table 3 - Total Net Cost of
Program
This table displays and provides explanations of
what was the net cost of programming by the
department.
Western Economic
Diversification Canada
|
2002-2003
($ Millions)
|
|
Planned Spending |
Actual |
Variance |
Total Gross Expenditures |
367.9 |
246.8 |
121.1 |
Less: |
Respendable Revenues |
-- |
-- |
-- |
Total Net Expenditures |
367.9 |
246.8 |
121.1 |
Other Revenues and Expenditures: |
Non-respendable revenues |
(26.5) |
(37.0) |
10.5 |
Cost of services provided without
charge |
4.1 |
4.6 |
0.5 |
Net Cost of the
Program |
345.5 |
214.4 |
131.1 |
Note: amounts under $100K are displayed as zeros.
Explanation of
variances:
The $131.1 million variance for the
Net Cost of the Program is due to lower than anticipated
expenditures (refer to Financial Table 2) and to higher than
anticipated revenues (refer to Financial Table 6).Table 4 - Historical Comparison of Total
Planned Spending to Actual
This table provides a historical comparison on our performance
to determine planned spending versus actual spending.
Western Economic
Diversification Canada
($ Millions) |
2000-2001
|
2001-2002
|
2002-2003
|
Planned Spending
|
Actual |
Planned Spending
|
Actual |
Planned Spending
|
Actual |
Operating |
Vote 120 - Operating
Expenditures |
36.8 |
42.0 |
38.6 |
45.1 |
40.2 |
41.1 |
(S) Contributions to Employee
Benefits Plans |
4.1 |
4.6 |
4.5 |
4.7 |
4.8 |
4.2 |
Total Operating |
40.9 |
46.6 |
43.1 |
49.8 |
45.0 |
45.3 |
Variance
Surplus/(Deficit) |
(5.7) |
(6.7) |
(0.3) |
Grants and Contributions |
Vote 125 - Grants and
Contributions |
177.8 |
142.4 |
223.4 |
178.0 |
300.9 |
179.3 |
(S) SBLA/CSBFA |
20.0 |
25.0 |
18.0 |
23.7 |
22.0 |
19.2 |
Total Grants and Contributions |
197.8 |
167.4 |
241.4 |
201.7 |
322.9 |
198.5 |
Variance
Surplus/(Deficit) |
30.4 |
39.7 |
124.4 |
|
(S) Refunds of amounts credited to
revenues in previous years |
-- |
0.0 |
-- |
0.0 |
-- |
3.0 |
Total |
238.7 |
214.0 |
284.5 |
251.5 |
367.9 |
246.8 |
Variance
Surplus/(Deficit) |
24.7 |
33.0 |
121.1 |
Note: amounts under $100K are displayed as zeros.
Explanations of
variances:
OperatingThe decrease of the variance over the
previous two years is mainly due to:
- the implementation of new programs
not reflected in planned amounts, such as the six year
Infrastructure Canada Program which started in 2000-2001 and the
Innovation and Community Investment Program which started in
2001-2002.
- Please refer to Financial Table 1 - Summary of Voted
Appropriations and Table 2 - Comparison of Total Planned Spending
to Actual Spending for more information.
Grants and Contributions The increase of the variance over the
previous two years is mainly due to:
- the six-year Infrastructure Canada Program and the slow nature
of implementing the program.
- Please refer to Financial Table 8 - Transfer Payments for more
information.
Table 5 - Crosswalk Between Strategic
Outcomes and Programs
This table identifies the
relationship between Strategic Outcomes and Programs. WD has only
one business line and our resources are allocated to different
programs that are linked as follow to five strategic
outcomes.
Western Economic Diversification Canada
|
Strategic
Outcomes
|
2002-2003 ($ Millions)
|
|
Innovation |
Partnerships |
Entrepreneurship
|
Economic Research
|
National Program
|
Total
|
%
of Total
|
Operating
Expenditures |
P |
16.1 |
5.4 |
14.4 |
3.1 |
6.1 |
45.1 |
12.3% |
|
A |
17.1 |
5.4 |
15.4 |
2.4 |
5.0 |
45.3 |
18.6% |
Contributions |
Western
Diversification Program |
P |
53.0 |
|
10.3 |
1.5 |
8.2 |
73.0 |
19.8% |
|
A |
50.5 |
|
7.1 |
1.9 |
9.2 |
68.7 |
28.2% |
Community Futures
Program |
P |
|
|
20.6 |
|
|
20.6 |
5.6% |
|
A |
|
|
21.7 |
|
|
21.7 |
8.9% |
Partnership
Agreements |
P |
|
20.9 |
|
|
|
20.9 |
5.7% |
|
A |
|
12.9 |
|
|
|
12.9 |
5.3% |
Service Delivery
Network Program |
P |
|
|
6.6 |
|
|
6.6 |
1.8% |
|
A |
|
|
8.5 |
|
|
8.5 |
3.5% |
Innovation and
Community Investment Program |
P |
10.8 |
|
|
|
|
10.8 |
2.9% |
|
A |
13.4 |
|
|
|
|
13.4 |
5.5% |
Loan &
Investment Fund Program |
P |
|
|
4.2 |
|
|
4.2 |
1.1% |
|
A |
|
|
3.3 |
|
|
3.3 |
1.4% |
Canada
Infrastructure Works Program |
P |
|
|
|
|
0.0 |
0.0 |
0.0% |
|
A |
|
|
|
|
0.3 |
0.3 |
0.1% |
Infrastructure
Canada Program |
P |
|
|
|
|
152.2 |
152.2 |
41.3% |
|
A |
|
|
|
|
47.8 |
47.8 |
19.6% |
Red River Flood
Protection Program |
P |
|
|
|
|
12.6 |
12.6 |
3.4% |
|
A |
|
|
|
|
2.7 |
2.7 |
1.1% |
(S) Obligations
under the SBLA |
P |
|
|
12.0 |
|
|
12.0 |
3.3% |
|
A |
|
|
10.1 |
|
|
10.1 |
4.1% |
(S) Obligations
under the CSBFA |
P |
|
|
10.0 |
|
|
10.0 |
2.7% |
|
A |
|
|
9.1 |
|
|
9.1 |
3.7% |
Total |
P |
79.9 |
26.3 |
78.1 |
4.6 |
179.0 |
367.9 |
100.0% |
|
A |
81.0 |
18.3 |
75.2 |
4.3 |
65.1 |
243.8 |
100.0% |
|
% Total |
P |
21.7% |
7.1% |
21.2% |
1.2% |
48.7% |
100.0% |
|
|
A |
33.2% |
7.5% |
30.8% |
1.8% |
26.7% |
100.0% |
|
Table 6 - Non-Respendable
Revenue
This table presents information by revenue source and the
revenues received by the department.
Western Economic
Diversification Canada
|
|
2002-2003
($ Millions) |
|
Actual 2000-2001* |
Actual 2001-2002 |
Planned Revenue |
Actual |
Variance Surplus/(Deficit) |
Repayable Contributions |
26.7 |
19.3 |
8.0 |
14.2 |
6.2 |
Other Revenue |
3.4 |
2.3 |
0.5 |
3.4 |
2.9 |
SBLA's - Service Fees |
12.9 |
13.8 |
6.0 |
4.9 |
(1.1) |
CSBFA's - Service Fees |
12.5 |
12.6 |
12.0 |
14.5 |
2.5 |
Total Non-Respendable Revenues |
55.5 |
48.0 |
26.5 |
37.0 |
10.5 |
* The 2000-01 figures are not comparable with the subsequent
fiscal years as revenue reporting was changed to an accrual basis,
i.e. amounts earned, from a cash basis.
WD has surpassed established targets for revenue for a third
consecutive year. Since 1995, WD has moved away from repayable
contributions and revenue from this source therefore has declined,
and will continue to decline in the future.
Non-respendable revenue
consists of:
- the repayment of repayable contributions previously provided by
the department and related interest and other revenue;
- other revenue comprising the proceeds from the disposal of
surplus Crown assets; Access to Information and Privacy fees; and
prior years adjustments; and,
- service fees for loan guarantees for loans approved under the
Small Business Loans Act (SBLA) and the Canada Small
Business Financing Act (CSBFA).
Table 7 - Statutory Payments
This table identifies statutory payments made by
the department.
Western Economic
Diversification Canada
|
|
2002-2003
($ millions)
|
|
Actual 2000-2001
|
Actual 2001-2002
|
Planned Spending
|
Total Authorities
|
Actual |
(S) Obligations under the Small
Business Loans Act (SBLA) |
23.5 |
17.3 |
12.0 |
10.1 |
10.1 |
(S) Obligations under the Canada
Small Business Financing Act (CSBFA) |
1.5 |
6.4 |
10.0 |
9.1 |
9.1 |
(S) Contributions to Employee Benefit
Plans |
4.6 |
4.7 |
4.8 |
4.2 |
4.2 |
(S) Spending of proceeds from the
disposal of surplus Crown assets |
0.0 |
0.0 |
-- |
0.0 |
0.0 |
(S) Refunds of amounts credited to
revenues in previous years 2 |
0.0 |
0.0 |
-- |
3.0 |
3.0 |
(S) Collection agency fees |
0.0 |
0.0 |
-- |
0.0 |
0.0 |
Total Statutory
Payments |
29.6 |
28.4 |
26.8 |
26.4 |
26.4 |
Note: due to the table being in millions amounts too small
are displayed as zero's.
Obligations under the
Small Business Loans Act and under the Canada Small Business
Financing Act:
- This represents the settlement of net losses incurred by banks
and financial institutions for loans guaranteed by the government
under the Small Business Loans Act and the Canada Small Business
Financing Act. These programs are administered by Industry
Canada, but reporting is by Western Economic Diversification Canada
for loans in Western Canada.
Contributions to Employee Benefit Plans:
- This represent the governments costs associated with benefits
plans for public servants such as Canada Pension Plan, Employment
Insurance etc.
Table 8 - Transfer Payments
This table provides information on grants and
contributions spending by program. WD has only one business line
but several programs under which resources are spent.
Western Economic
Diversification Canada
|
|
2002-2003
($ millions)
|
|
Actual 2000-2001
|
Actual 2001-2002 |
Planned Spending1
|
Total Authorities1
|
Actual
|
GRANTS |
-- |
10.0 |
5.0 |
-- |
-- |
Total
Grants |
-- |
10.0 |
5.0 |
-- |
-- |
CONTRIBUTIONS |
Western
Diversification Program |
69.0 |
67.9 |
68.0 |
75.5 |
68.7 |
Community Futures
Program |
22.7 |
21.6 |
20.6 |
21.7 |
21.7 |
Partnership
Agreements |
13.6 |
19.6 |
20.9 |
12.9 |
12.9 |
Service Delivery
Network Program |
7.6 |
10.2 |
6.6 |
8.5 |
8.5 |
Innovation and
Community Investment Program |
-- |
7.4 |
10.8 |
13.4 |
13.4 |
Loan &
Investment Fund Program |
6.0 |
2.8 |
4.2 |
3.3 |
3.3 |
Winnipeg
Development Agreement |
1.2 |
0.8 |
-- |
-- |
-- |
Canada
Infrastructure Works Program2 |
5.8 |
6.1 |
-- |
0.3 |
0.3 |
Infrastructure
Canada Program3 |
0.3 |
21.1 |
152.2 |
159.7 |
47.8 |
Sandspit Harbour
Program |
0.3 |
-- |
-- |
-- |
-- |
Community Economic
Adjustment Initiative |
9.5 |
-- |
-- |
-- |
-- |
Red River Flood
Protection Program |
6.4 |
10.5 |
12.6 |
2.7 |
2.7 |
(S) Obligations
under the SBLA |
23.5 |
17.3 |
12.0 |
10.1 |
10.1 |
(S) Obligations
under the CSBFA |
1.5 |
6.4 |
10.0 |
9.1 |
9.1 |
Total
Contributions |
167.4 |
191.7 |
317.9 |
317.2 |
198.5 |
Total Transfer Payments |
167.4 |
201.7 |
322.9 |
317.2 |
198.5 |
-
To improve disclosure, the amounts in
the Planned Spending column and the Total Authorities column, which
in total agrees with the amount voted by Parliament, have been
allocated between programs.
- 2002-2003 is the final
year with expenditures for the Canada Infrastructure Works
Program.
- Planned spending for the
six-year Infrastructure Canada Program, which commenced in
2000-2001, was slower than expected. Unexpended funds under this
program are available for Infrastructure Canada Program spending in
future years
SECTION VI: APPENDICES
Glossary of Acronyms
- ADM Assistant Deputy Minister
- CBSC Canada Business Service Centre
- CFDC Community Futures Development Corporation
- CFI Canada Foundation for Innovation
- CLS Canadian Light Source (Synchrotron)
- DM Deputy Minister
- DTES Downtown East Side (Vancouver)
- EMS Environmental Management System
- FEDO Francophone Economic Development Organization
- GDP Gross Domestic Product
- GOL Government of Canada on Line
- ICP Infrastructure Canada Program
- ICIP Innovation and Community Investment Program
- INAC Indian and Northern Affairs Canada
- IRAP Industrial Research Assistance Program
- ITPP International Trade Personnel Program
- LIFP Loan Investment Fund Program
- NRC National Research Council Canada
- PCO Privy Council Office
- R&D Research and Development
- RMAF Results Management Accountability Framework
- SD Sustainable Development
- SDS Sustainable Development Strategies
- SEA Strategic Environmental Assessment
- SEDI Special Economic Development Initiatives
- SICEAI Softwood Industry Community Economic Adjustment
Initiative
- SME Small- and medium-sized enterprises
- TBS Treasury Board Secretariat
- UDA Urban Development Agreement
- VA Vancouver Agreement
- WCBSN Western Canada Business Service Network
- WD Western Economic Diversification Canada
- WDP Western Diversification Program
- WEI Women's Enterprise Initiative
- WEPA Western Economic Partnership Agreement
|