Economic certainty for all of Canada's regions

October 04, 2008

Investing in Canadian jobs is part of Conservative plan to protect our economy

Prime Minister Stephen Harper today announced further steps to help ensure the long-term success of Canada’s regional economies for the benefit of communities facing economic challenges.

“We are proud to invest in the development of the economy and future Canadian jobs. This is part of our plan to manage the economy,” said the Prime Minister. “We recognize that the regions of Canada are unique. So we have made investments accordingly.”

Elements of the plan:

• A re-elected Conservative Government will restore funding for regional development in the West, Quebec and Atlantic Canada – funding which was cut by the Liberal government in 2004 and 2005.
• Rural and low-employment communities in Southern Ontario will have access to regional development programs. $10 million per year will be allocated for this purpose.
• In total, a re-elected Conservative Government will provide $300 million in new funding over the next four years to the Department of Western Economic Diversification, the Economic Development Agency of Canada for Quebec Regions, and the Atlantic Canada Opportunities Agency.
• As announced by Minister Blackburn September 25, additional support will be provided for the development of tourism infrastructure along the St. Lawrence River.

These steps complement the Prime Minister’s September 20 announcement that a re-elected Conservative Government will establish a new development agency for Northern Canada.

The Prime Minister also highlighted the Conservative Government’s record of commitment to regional development since taking office, including support for: companies in the manufacturing sector in Quebec, innovative research and development projects in Atlantic Canada and communities in British Columbia affected by the mountain pine beetle infestation.

“Lower taxes, debt reduction, affordable spending, focused investments – that’s our plan, a plan that is working,” said the Prime Minister. “And that is the choice. Real action to strengthen and protect the Canadian economy; or an opposition with no plan except deficits, higher taxes, higher prices, shifting priorities and enormous risk. We believe Canadians should choose stability and a clear direction for our economy on October 14.”

Backgrounder

ECONOMIC CERTAINTY FOR ALL OF CANADA’S REGIONS

The Issue

Canada is a diverse country, and each region has different economic strengths. To reach our full potential and to increase prosperity for all Canadians, the federal government should help each region to make the most of its unique advantages.

To that end, two decades ago the federal government established regional development agencies: the Atlantic Canada Opportunities Agency (ACOA),[1][1] the Economic Development Agency of Canada for the Regions of Quebec[1][2] (known as DEC, short for “Développement économique Canada”), the Federal Economic Development Initiative for Northern Ontario (FedNor) and the Department of Western Economic Diversification[1][3] (WD). These agencies direct funds to local communities, working with provincial and municipal governments, to help businesses grow and create jobs.

In the past two and a half years, our Conservative Government has utilized these agencies to help regions to meet their specific economic challenges and to develop new industries. The following are some examples.

Western Economic Diversification

• We provided $33 million to support economic growth and job creation in communities and First Nations in British Columbia affected by the pine beetle infestation.[1][4]
• We provided over $600,000 to extend programs in Regina helping entrepreneurs with disabilities to start and grow small businesses.[1][5]
• We also committed $1.5 million to enhance trade with Asia. Most of this funding supports the extension of the Gateway to Asia export program into Alberta, Saskatchewan and Manitoba.[1][6]

Economic Development for Quebec Regions

• We invested in Quebec’s manufacturing sector. We provided almost $500,000 to help Metra Aluminium in Laval to acquire modern strategic equipment.[1][7]
• We provided nearly $1.2 million to help Sonaca NMF Canada Inc. to increase its productivity and production capacity.[1][8]

Atlantic Canada Opportunities Agency

• We invested $8.5 million in the efforts of Springboard Atlantic Inc. to commercialize research and development through the region’s post-secondary institutions.[1][9]
• We committed $63 million to support innovative R&D; projects across Atlantic Canada, including high-tech projects at Memorial University related to aerospace, exploratory drilling and human genetics.[1][10]
• We are provided funding to keep the Digby-Saint John Ferry operating and are providing $1 million in funding through ACOA to assess commercial and transportation alternatives and economic strategies.[1][11]
• We also contributed $200,000 to help establish a fund to address productivity issues in the PEI mussel aquaculture industry.[1][12]

Despite the importance of these regional development agencies in ensuring that all parts of Canada remain economically competitive, the Liberals instituted cuts to these programs in 2004 and 2005: WD lost nearly $15 million per year; DEC lost $16 million; and ACOA lost $30 million.[1][13]

The Plan

As announced on September 20, a re-elected Conservative Government will establish a new regional development agency for Northern Canada, consolidating existing northern development activities. We will provide $10 million per year in new funding for the new Northern Canada development agency.

In addition:

• We will reverse the Liberal cuts to the Atlantic Canada Opportunities Agency, the Department of Western Economic Diversification and the Economic Development Agency of Canada for Quebec Regions.
• We will allow rural and low-employment communities in Southern Ontario access to regional development programs along with Northern and Eastern Ontario. An additional $10 million per year will be allocated for this purpose.
• In total, a re-elected Conservative Government will provide $300 million in new funding over the next four years to ensure that these agencies can help their respective regions to achieve their full economic potential. This will restore ACOA, DEC and WD to their respective funding levels before the Liberal cuts.
• As announced by Minister Blackburn on September 25, we will extend funding for international port-of-call projects on the St. Lawrence River, by an additional $24 million over two years.
  

[1][1] Government Organization Act, Atlantic Canada, 1987, R.S.C. 1985, c. G-5.7.
[1][2] Economic Development Agency of Canada for the Regions of Quebec Act, S.C. 2005, c. 26.
[1][3] Western Economic Diversification Act, R.S.C. 1985, c. 11 (4th Supp.)
[1][4] www.wd.gc.ca/9622_ENG_ASP.asp
[1][5] http://www.wd.gc.ca/77_4728_ENG_ASP.asp
[1][6] http://www.wd.gc.ca/77_3288_ENG_ASP.asp
[1][7] http://www.dec-ced.gc.ca/asp/SalleNouvelles/communiques.asp?LANG=EN&TYPE;_COMM=COMM&PAGE;=3&PRESS;_RELEASE_ID=5090&SEARCH;_REGION=0&HD;_SEARCH_MONTH=0&HD;_SEARCH_YEAR=2007&ACTION;_LISTE=SEARCH
[1][8] http://www.dec-ced.gc.ca/asp/SalleNouvelles/communiques.asp?LANG=EN&TYPE;_COMM=COMM&PAGE;=4&PRESS;_RELEASE_ID=5083&SEARCH;_REGION=0&HD;_SEARCH_MONTH=0&HD;_SEARCH_YEAR=2007&ACTION;_LISTE=SEARCH
[1][9] www.stmarys.ca/newsreleases/2008/04-18-2008.html
[1][10] www.acoa.ca/e/media/press/press.shtml?4033
[1][11] http://www.tc.gc.ca/mediaroom/releases/nat/2008/08-h180e.htm
[1][12] http://www.acoa.ca/e/media/press/press.shtml?4131
[1][13] www.expenditurereview-examendesdepenses.gc.ca/tab/ds-em-eng.asp; www.tbs-sct.gc.ca/media/nr-cp/2004/1104-eng.asp