NEWS RELEASES

April 30, 2004 (11:30 a.m. EDT) No. 65

GOVERNMENT RENEWS INVESTMENT FUNDING FOR CANADIAN COMMUNITIES

Minister of State (Infrastructure) and Minister responsible for Canada Mortgage and Housing Corporation Andy Scott, on behalf of Minister of International Trade Jim Peterson, today announced the renewal of the Government of Canada's program to attract and retain foreign direct investment in Canadian communities. The Community Investment Support Program (CISP), formerly the Program for Export Market Development - Investment (PEMD-I), will be in place for another five years, funded by up to $5 million per year.

"Communities are engines for economic growth and key to Canada's ability to compete effectively in the 21st century," said Minister Peterson. "I am proud to announce the renewed funding of this very successful initiative. The CISP will continue to help our cities and towns compete for investment and talent from around the world."

"Communities like Fredericton are the building blocks of this nation," said Minister Scott. "The CISP will ensure that municipalities from coast to coast to coast will have the ability to foster innovation and economic growth in their own part of Canada."

Under the CISP, communities can apply for up to 50 percent in matching funds to assist in the development and execution of local investment attraction strategies. Applications are evaluated according to their quality and innovation, anticipated economic benefits and the level of public-private sector partnership.

In addition to funding renewal, Treasury Board approved enhancements that will better serve clients. These include a more streamlined application process and a renewed commitment to the audit and reporting function that will build in checks and balances at all stages of the process.

The program was originally launched in 1998 by Investment Partnerships Canada, then an arm of Industry Canada, as PEMD-I. Since the program's inception, 285 communities across Canada have received support for 872 projects, valued at over $20 million.

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A backgrounder is attached.

For further information, media representatives may contact:

Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874

Andrew Holland
Office of the Minister of State (Infrastructure) and
Minister responsible for Canada Mortgage and Housing Corporation
(506) 452-3516

This document is also available on the Internet site of Foreign Affairs Canada and International Trade Canada: http://www.dfait-maeci.gc.ca.

Backgrounder

THE COMMUNITY INVESTMENT SUPPORT PROGRAM

The Community Investment Support Program (CISP) assists community economic development organizations working at the regional and municipal levels in attracting, retaining and expanding foreign direct investment. It replaces the Program for Export Market Development (PEMD-I), which was created in 1998.

The CISP provides up to 50 percent of a community's eligible investment attraction-related costs, to a maximum of $300,000 per year.

The program supports communities through two categories of projects:

• Category 1 provides $1,000 to $50,000 in assistance.

Category 1 supports activities related to research, training and community profile development. This category is directed toward communities positioned in the early stages of investment attraction readiness.

• Category 2 provides $20,000 to $300,000 in assistance.

Category 2 funding is directed to communities that have completed their basic research and are prepared to proceed with developing a comprehensive attraction strategy. Examples of activities supported within this category include identifying targets, developing databases of investment contacts, creating an investment attraction strategy and developing and upgrading Web sites.

Annual funding for the CISP is sourced from International Trade Canada's (ITCan) budget for ongoing activities. The program is managed by Investment Partnerships Canada and is delivered by international trade centres (ITCs) located across Canada.

The CISP provides an updated application and adjudication process, which is more timely and user friendly. The updated program also limits communities to one application per year. Furthermore, the CISP regularizes the timing of all adjudications across Canada, aiming for consistent starts at the beginning of each fiscal year.

All applications are evaluated by an adjudication committee established within each ITC. Committees are chaired by the Senior Trade Commissioner and include participation from the public and private sectors, as well as provincial officials.