NEWS RELEASES

May 13, 2005 (10:00 a.m. EDT)
No. 83

GOVERNMENT OF CANADA HELPS CANADIAN MUNICIPALITIES ATTRACT FOREIGN DIRECT INVESTMENT

The Government of Canada will contribute nearly $4.8 million through the Community Investment Support Program (CISP) to support foreign direct investment (FDI) initiatives by Canadian municipalities in 2005-2006. Minister of Public Works and Government Services Canada Scott Brison made the announcement today, in Halifax, Nova Scotia, on behalf of Minister of International Trade Jim Peterson.

“Canadian communities have to attract and retain FDI to compete in today’s global economy,” said Minister Peterson.

“CISP helps communities like Halifax to compete with the world by funding projects, such as investment attraction planning, Web site development and services to existing foreign investors,” added Minister Brison.

Today’s announcement means that 129 cities and municipalities across Canada will receive contributions of up to $245,000 from the Program, for investment attraction projects.

FDI provides tremendous benefits to the economy of a region. It creates jobs, introduces new technologies and promotes capital flow to companies in a variety of sectors.

“This program builds on commitments set out in Canada’s International Policy Statement to enhance Canada’s reputation as an international centre for talent, innovation, investment and trade,” added Minister Peterson. “It is an excellent example of this government’s commitment to recognizing provinces, territories, cities and municipalities as partners in implementing Canada’s national agenda.”

Since the program’s inception in 1998, more than 290 communities across Canada have received support through 1,131 projects, valued at nearly $30 million. Under CISP, applicants can receive up to 50 percent in matching funds to assist in the development and execution of local and regional investment attraction strategies. Applications are evaluated according to their degree of innovation, anticipated economic benefits, and level of public- and private-sector partnership.

Funding for these projects was forecast in the February 2005 federal budget.

Full project descriptions for 2005-2006 will be posted later today on the following Web site: http://www.cisp.gc.ca.

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A backgrounder is attached.

For further information, media representatives may contact:

Andrea Lanthier

Press Secretary
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
International Trade Canada
(613) 995-1874
http://www.international.gc.ca

Renée David
Press Secretary
Office of the Minister of Public Works and Government Services
(819) 997-5421

Backgrounder

COMMUNITY INVESTMENT SUPPORT PROGRAM

The Community Investment Support Program (CISP) assists cities, municipalities and community economic development organizations in attracting, retaining and expanding foreign direct investment.

It replaces the Program for Export Market Development-Investment (PEMD-I), which was created in 1998. On a project basis, CISP provides up to 50 percent of an applicant’s eligible investment attraction-related costs, to a maximum of $300,000 per year. The program supports communities through two project categories:

•         Category One activities are related to research, training and community profile development. Funding is directed to applicants positioned in the early stages of investment attraction readiness.

•         Category Two activities target communities that have completed their basic research and are prepared to proceed with developing a comprehensive investment attraction strategy. Examples of activities supported in this category include identifying targets, developing databases of investment contacts, creating an investment attraction strategy, and developing and upgrading Web sites.

All applications are evaluated by regional adjudication committees managed by International Trade Canada (ITCan) Regional Offices. Committees are chaired by the Senior Trade Commissioner and include participation from the public and private sectors, as well as provincial/territorial officials.

The annual funding for CISP is sourced from ITCan.

A program guide is available for printing at the following Web site: http://www.cisp.gc.ca.

CISP funding

In 2005-2006, CISP supported 129 projects in 13 provinces and territories for a total of approximately $4.78 million. On average, the amount of funding approved in each province and territory is proportional to the provincial/territorial population (based on Statistics Canada 2001 census data). Traditionally, the largest users of the program have been Ontario, Quebec and British Columbia.

Funding recipients include not-for-profit municipal economic development agencies and cities and towns across the country.

Project summaries for 2005-2006 are available on the CISP program Web site: http://www.cisp.gc.ca.

The following outlines funding allocated by province/territory in 2005-2006:

The following outlines the total CISP funding approved from 1998-1999 up to and including 2005-2006:

* Refers to an administrative region including Yukon Territory.

Note: Numbers have been rounded to the nearest dollar.