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Strategic Outcome Two: Community Development

Economic opportunities for Atlantic Canada through community economic development.

Supported under ACOA's Strategic Priority: Community Economic Development FTEs Resources ($ millions)
  • Self sustaining, economically viable communities, supported through the development and implementation of strategic and operational plans.
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  • Expanded access to government business services, in the areas of financing, counselling and information.
  • Community self-development and alternate employment in areas affected by the closure of resource-based industries or wind-down of large projects.
  • Increased number of loans and resultant jobs created and maintained in rural areas as a result of SME counselling and financing services offered by Community Business Development Corporations.
Key Results

  • Strategic Plans were developed for each territory covered by 52 REDOs in Atlantic Canada.
  • Improved community capacity by investing $66 million in 156 strategic community projects through SCIF.
  • Contributed to the creation of 1,205 jobs through CBDC loans and 500 jobs through seed capital loans.

Management Practices

Partnerships are used extensively for program delivery. Part of the Modern Business Management Initiative (MBM) will see process mapping for core/programming activities such as the CBDCs and the CBSCs. This should identify opportunities for improvement to delivery of services.

a) Community Economic Development (CED)

Self-sustaining, economically viable communities, supported through the development and implementation of strategic and operational plans.

Plans: Strengthen community planning and development through increased use of strategic community planning tools.
Planned Results (Targets) Results
A stronger community strategic planning process and economic base to be achieved by using tools such as the new Strategic Community Investment Fund (SCIF), Community Business Development Corporations (41 corporations), Regional Economic Development Organizations (52 organizations) and other federal and provincial partners. Strategic plans have been developed for each territory covered by the 52 REDOs in Atlantic Canada.

The Agency continues to work in partnership with 52 regional economic development organizations throughout Atlantic Canada, 46 of which are located in rural areas of Atlantic Canada. Funding of $7.5 million was provided for 2003-2004. All 20 organizations in Newfoundland and Labrador apply an integrated work plan approach to their activities, ensuring maximum partnership and consultation in the CED process. Similarly, 15 integrated work plans were developed for all organizations in New Brunswick. In developing these work plans, all levels of government and various community organizations are engaged. In New Brunswick, a formative evaluation of the CEDA network has been undertaken and will be completed early in the new fiscal year.

Planned Results (Targets) Results
Enhance collaboration with partners through the integration of labour force development initiatives into the planning process for PEI. In PEI, an emerging province-wide strategy on labour force development will help to provide the framework for enhanced CED capacity, largely developed thus far through many successful community development projects. To date these efforts have entailed capacity building through highly productive partnerships including ACOA, HRSDC, the PEI government, and community activists and stakeholders.
Planned Results (Targets) Results
350 loans per year to young entrepreneurs through continued support from the Seed Capital ConneXion Program for Young Entrepreneurs. Target exceeded. 387 loans were approved.

In 2003-2004, the Seed Capital ConneXion Program for Young Entrepreneurs issued $4.2 million in loans to 387 young entrepreneurs (78% first-time entrepreneurs) in Atlantic Canada, resulting in the creation of 500 full-time jobs and maintenance of 112 full-time equivalent jobs. Seed was able to lever an additional $7 million in funding, consisting of owner equity and conventional financing.
Web site: http://www.acoa-apeca.gc.ca/e/financial/capital.shtml.

Planned Results (Targets) Results
Support the development of business in Black communities in Nova Scotia through support for the Black Business Initiative. The Black Business Initiative provided eight business loans, creating/maintaining 17 jobs.
1,395 client interactions were recorded.

Services provided consisted of business advice, mentoring, publications, technical assistance and training.

Planned Results (Targets) Results
Foster the planning and implementation of information technology (IT) projects done primarily by the Regional Economic Development Organizations. ACOA continues to support the development of information technology capacity in the region.

As an example of these efforts, three projects in PEI (Tignish, Borden and Evangeline) have been approved that support the implementation of broadband services. In NL three broadband projects spearheaded by Regional Economic Development Zone Boards were approved. These included projects with the Nordic and Irish Loop Regional Economic Development Zone Boards, and another project with a group steered by the five zonal boards in Labrador.

In Nova Scotia, ACOA has supported two broadband implementation projects led by Regional Development Authorities (RDAs) (Cumberland and Western Valley). As well, ACOA in Nova Scotia has supported three RDA IT and e-commerce initiatives: Western Valley Development Authority (an e-commerce planning forum and targeted training), the Pictou Regional Development Commission (community portal), and the South West Shore Development Authority (e-commerce, including an electronic data interchange). RDAs in Nova Scotia are also the lead organizations in the roll-out of Navigating E-Business, an advanced training program designed to increase and improve the adoption and use of e-commerce by businesses.

Planned Results (Targets) Results
Increase community economic viability through projects supported under the Strategic Community Investment Fund.
SCIF: 156 projects approved
$66 million in contributions
(total project costs $149 million)
SCIF-STAI: 143 projects approved,
$23.7 million in contributions
(total project costs $24.1 million)

By supporting community-led projects, SCIF made key investments in Atlantic communities in the areas of tourism development, economic diversification, strategic and community infrastructure, and improved economic development capacity.

SCIF was revised in April 2003 to add $30 million (making it a $165 million initiative) in new programming authority aimed at mitigating the short-term impact of the cod stock closures in the Atlantic Ocean and Gulf of St. Lawrence. This Short Term Adjustment Initiative (STAI) component supports projects that provide direct employment opportunities to displaced workers in the communities in the Atlantic provinces most affected by the closures.

Examples of approved SCIF STAI projects in NL include:

  • The South West Coast Development Association received funding to enhance the Rose Blanche Lighthouse site, the Sea Lions Diving Club, and the Gateway Women's Centre. The entire project created 35 short-term jobs in this community that was affected by the cod closure.
  • The Town of Fogo project completed the development of a trail network throughout the community. The trail provides scenic outlooks and a safe passage for tourists. The enhancement of historic Brimstone Head Park, one of the "four corners of the world," is also part of the project. Bridges, lookouts, interpretive and directional signage, and rest areas along the trail will provide visitors with a quality avenue through which to experience rural Newfoundland. As part of the project, the Town has also made extensive repairs to the Fogo United Church -- built in 1877 and a Registered Heritage Structure. The project provided work for 32 people directly affected by the closure of the fishery, and served to enhance the tourism product offering currently available on Fogo Island.

b) Community Economic Development (CED)

Expanded access to government business services, in the areas of financing, counselling and information.

Plans: Expand outreach to potential business clients through the availability of timely and useful information and the provision of assistance to prepare business and project plans.
Planned Results (Targets) Results
Develop new information products/tools and strengthen information networks/partnerships to facilitate broader access to government business information and services through such activities as integration of electronic on-site libraries and increased use of electronic tools.

Improvements made to Trade Team PEI and Invest PEI Web sites.

The four Atlantic CBSCs have completed reviews and upgrading of their respective Web sites.

The focus of the CBSCs' site upgrades was not only to improve the "friendliness" of the site, but also to identify information needs currently not met by the information holdings. As a result, a number of required "Info-guides" were identified and are in development. It is expected that these will be completed by mid-2004. The Atlantic CBSCs are also continuing their participation in national efforts to further identify improvements to their information holdings and to their technology-driven infrastructure. In addition, efforts are continuing to improve and integrate on-line libraries where this meets a local need.

CBSCs regularly participate in Trade Team meetings and give training/information sessions to Trade Team Co-ordinators and other partners on CBSC's service offering to business clients, including the Talk-to-Us interactive tool and the interactive intranet site for partners. In addition, ACOA PEI opened a new Summerside regional office with bilingual services.

Planned Results (Targets) Results
Through 11 points of contact in New Brunswick, ACOA will provide counselling services to clients to assist in the process of community economic and client development. Annually, 4,500 interventions are targeted (an intervention is an interaction with a client that would contribute to advancing the client's business development and success). Target exceeded. The network of development officers (11 points of contact) in New Brunswick carried out 9,668 interventions supporting 1,613 clients with their projects.
Planned Results (Targets) Results
In Nova Scotia, ACOA will work to integrate service to rural communities with partner organizations through increasing co-location of offices and formal and informal partnership networks. A joint project with Human Resources Skills Development Canada will pilot integrated delivery of programs and services of both organizations to young entrepreneurs. ACOA and HRSDC agreed to cost-share a manager position in Yarmouth for two years commencing October 31, 2004. Pursuant to this, a Memorandum of Understanding was drafted to explore opportunities to merge resources to the benefit of both agencies and seek options to expand the partnership federally (e.g. CIC and CRA).
Planned Results (Targets) Results
The 42 access points of the Aboriginal Business Service Network (ABSN) in Atlantic Canada will be strengthened through improving collaboration with the Atlantic ABSN Working Committee and developing specific information products. These will include a regional Web site and additional training in order to more fully address Aboriginal business information needs. Ongoing.

The implementation of the Aboriginal Service Network (ABSN) has been completed at 41 of the 42 planned sites. An Atlantic Aboriginal-specific Internet presence was launched in early 2003 and includes Aboriginal specific information products. Further improvements include increased collaboration with members of the Atlantic ABSN Working Committee and local ABSN sites in the development of new information products, including the development of new communication products, as well as training and feedback/input sessions with all the sites in order to identify future enhancements. As a result of these efforts, a number of Aboriginal specific Info Guides have been developed. In addition, all ABSN sites have received multiple training/information sessions on all of the CBSCs' information holdings and other products such as the ABSN Web site, the partner's intranet site and the Talk-to-Us interactive tool.

Planned Results (Targets) Results
Canada Business Service Centres (CBSCs) in Atlantic Canada will continue to review their partnership arrangements with external organizations. Some partnerships have already been renewed and strengthened, or, in some cases, transferred to a partner with a more direct fit. These ongoing changes provide more direct access to government business information and services at locations closer to "home" for the business community. All four Atlantic CBSCs have completed reviews of their partnership agreements, both with on-site and external partners.

All four CBSCs in Atlantic Canada are committed to reviewing their partnership arrangements on an annual basis. The objective of the annual reviews is to improve the relationship among the CBSC partners and to improve the CBSC's capacity to more fully answer their clients' needs through the CBSC centres and regional access sites.

As a result of the 2003-2004 review, the parameters for determining how, where and with whom to partner have been refined, leading to a number of initiatives to improve the relationship with external partners. One of the early results is an improved alignment between the partners' objectives and those of the CBSCs. Another result is the reduction in the number of regional access sites (from 141 to 103, including the ABSN sites). The primary reason for the reduction was the realization that the goals of these sites no longer met the aims and objectives of the CBSCs' efforts in this respect. The reduction also makes it more manageable (taking into consideration the capacity of the CBSCs) to provide training and tools to facilitate the external partners' capacity to serve their business clients.

The CBSCs across the Atlantic provinces are also forming partnerships/alliances with many new partners, including groups such as the Women in Business Initiative, Youth, the Innovation group, Rural Teams, the Federal Council, other federal departments and agencies, and Aboriginal communities. The CBSCs have renewed Memorandums of Understanding with approximately 50% of the Atlantic Aboriginal communities participating in the ABSN. The six PEI regional access sites were maintained and updated with new library materials. The PEI Women in Business Association became a tenant of the Canada/PEI CBSC, strengthening partnerships with external organizations.


Plans: Increase the number of loans and resultant jobs created and maintained in rural areas as a result of SME counselling and financing services by Community Business Development Corporations (CBDCs).
Planned Results (Targets) Results
Help create 1,200 new jobs and maintain approximately 2,500 jobs in rural areas through the issuance of approximately 1,040 new loans per year by CBDCs. 1,205 jobs created.
1,915 jobs maintained.
1,214 loans approved.
Planned Results (Targets) Results
Approximately 10,500 enquiries and information requests and counselling sessions per year provided by CBDCs.
Enquiries: Telephone 20,968
E-mail 2,116
In person 8,750
Talk-to-us 307
Mail and fax 548
Total 32,689

Counselling sessions: 8,173

In addition, CBDC Web sites received 660,609 hits.


c) Special Response Measures

Community self-development and alternate employment in areas affected by the closure of resource-based industries or the wind-down of large projects.

Plans: Facilitate alternate and replacement economic opportunities in communities that experience closure of significant employers within a geographic area by assisting communities in planning and strategy development.
Planned Results (Targets) Results
Working with the community and economic development partners in Northeast New Brunswick to implement a targeted SME development initiative with SMEs affected by the pending closure of the Brunswick mine. Based on initial surveys of 60 affected companies, business planning services and support will be provided to those companies interested in further developing new products and new markets.

Of 74 companies surveyed, 48 were identified for further developmental activities.

Of those 48, 28 have undergone developmental interventions through consultants. Of the remaining 20 companies, five have interventions in preparation and the remaining 15 have yet to be triggered into actual development.

Planned Results (Targets) Results
Assist communities in crisis, such as Canso in Nova Scotia, where traditional resource-based economies have severely declined. The Agency will work with such communities to develop leadership as well as plan and implement initiatives to diversify the economic base. Efforts to stabilize and develop a diversified economic base in Canso continue, with a goal of increasing community ownership, capacity, and involvement.

The community and stakeholders continue to participate in identifying and developing initiatives that have potential to improve the local economy. Discussions continue on several projects, including: high-speed connectivity (broadband); tourism infrastructure; and aquaculture industry development. To date, ACOA has provided project support for: research on a commercial halibut facility, establishment of an IT and digitization training centre, the Canso Technology Enterprise Centre, the annual Stan Rogers Folk Festival, and a Canso Industrial Park Expansion Study.

Community Business Development Corporations (CBDCs) are poised to provide financial and counselling assistance where opportunities for development are identified. In the case of Canso, the Guysborough CBDC has been a participant in most consultations involving the community leaders, and it continues to manage a significant investment fund that was entrusted to the community a number of years ago. The CBDC also delivers an array of outreach services to Canso that includes employment related programs and support.

Planned Results (Targets) Results
Proactive support for the development of the shellfish aquaculture sector in New Brunswick through areas such as research and development, marketing, access to capital, export development and technology development. The Shellfish Producers Association has developed the terms of reference for an export marketing strategy. ACOA committed $1 million in support of the Shellfish Development Program (a loan program) being delivered by the CBDC in the Acadian Peninsula. To date, 11 projects have been approved.
Planned Results (Targets) Results
Sustainable SME and job creation in areas other than the traditional fish harvesting and processing. A strategy is in place in Nova Scotia to mitigate the negative regional impact of a declining fish harvesting/processing industry.

The strategy includes:

  • Community-based research of Queens County with a view to diversification. Key activities include working with community leadership, Province of Nova Scotia and HRSDC to analyze/profile skills and business concerns and in some cases attract Foreign Direct Investment.
  • Regional Development Authorities ensure community leadership focusses on key economic issues such as fishing industry decline.
  • Multi-stakeholder participation in Team Guysborough, Team Shelburne, Team Eastern Shore and Team Queens. The primary focus of the teams is on regional issue identification and resolution.

d) Infrastructure Programming

Enhancement of municipal infrastructure in urban and rural communities.

Since agreements were signed in the four Atlantic provinces from October 2000 to March 31, 2004, approximately 79% ($145 million) of federal funds have been committed to over 560 approved projects. ACOA is well ahead of target on green objectives, at 86% of approved projects.

Budget 2001 announced the creation of a $2-billion Canada Strategic Infrastructure Fund (CSIF). It is intended that this funding be targeted toward major infrastructure initiatives that cannot be dealt with under the current Infrastructure Canada Program. The CSIF has already made targeted matched investments in Atlantic Canada including:

  • $135 million to complete twinning of the Trans-Canada Highway in New Brunswick, the first project approved under the program;
  • $31 million in Newfoundland and Labrador to clean up the St. John's Harbour;
  • $30 million to clean up the Halifax Harbour and $30 million for highway projects in Nova Scotia; and
  • $38 million in Prince Edward Island for waste treatment plant upgrades in Charlottetown and Summerside, and a central water system program in Stratford.

For more information on the Infrastructure Canada Program and CSIF, refer to Appendix A, Horizontal Initiatives, section (j) titled Infrastructure Canada.


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