4 March 2022
Charting a better future for rural communities
Key Messages:
- The Government of Canada is ensuring that rural communities have the tools and opportunities they need to build back better.
- For example, over the past five years, the government has invested more to connect Canadians to high-speed Internet than all previous government investments combined.
- Ensuring that all Canadians have access to high-speed Internet is one of the government’s top rural priorities, along with supporting housing, childcare and community infrastructure.
- Listening to rural communities across Canada, the government developed the Rural Economic Development Strategy to support economic recovery and build on the resilience of rural Canada.
Background:
Rural and northern communities face unique and diverse infrastructure pressures. Following extensive consultations, a national Rural Economic Development Strategy was launched in June 2019, along with Canada’s Connectivity Strategy. A progress report on the Rural Economic Development Strategy (the Strategy) was released in August 2021.
In line with the Strategy, key investments in rural infrastructure and broadband are made through the Rural and Northern infrastructure stream of the Investing in Canada Plan. The stream provides funding for projects in small communities, from roads to wastewater to connectivity, supporting nearly 700 rural projects with $2 billion in contribution funding.
Rural communities are facing increased pressures to their economic and social infrastructure, all of which is stressed by the COVID-19 pandemic. One critical gap highlighted by the pandemic is the urgent need for access to high-speed Internet to access critical services such as health and education.
The Government of Canada continues to recognize connectivity as a priority and an important gap for rural communities’ ability to recover from the pandemic, and is diligently working to increase connectivity through the implementation of the Connectivity Strategy and the Universal Broadband Fund. These investments will help ensure that 98% of Canadians will have high-speed Internet access by 2026, and 100% will have access by 2030.
A lack of capacity in rural communities to plan, secure funding and implement projects is a critical issue for them. The interrelated challenges of rural and remote communities highlights the importance for an inclusive and whole-of-government approach to addressing these challenges. The Strategy will guide a coordinated response that ensures that the critical needs of rural and remote communities are considered in federal recovery efforts.
Rural and remote broadband
Key Messages:
- Now more than ever, Canadians rely on Internet connections to work, learn, and stay in touch, and the Government of Canada wants to ensure that all Canadians have access to fast and reliable Internet.
- The Universal Broadband Fund will provide $2.75 billion to bring high-speed Internet to underserved areas.
- This is part of a range of actions that include making more spectrum available in rural areas and investments in Telesat’s Low Earth Orbit satellite constellation.
- The government’s goal is to connect 98 per cent of Canadians across the country to high-speed Internet by 2026, and all Canadians by 2030.
Supplementary Messages:
- Affordable, high-quality Internet access is a necessity for rural Canadians. Under the Universal Broadband Fund (UBF), applicants that offer lower retail pricing are assessed more favorably and their proposed retail plans must remain in place for five years.
- The government has announced 131 Rapid Response projects – which are rolling out across the country right now, providing $111 million to connect 75,000 households.
- The government has announced significant agreements with Quebec and Ontario, cost-sharing $2.12 billion in total investments to connect 446,000 households, a partnership with Alberta, and support for cell coverage along B.C.'s Highway of Tears.
- The UBF also includes $50 million to improve mobile services in areas that will benefit Indigenous peoples.
- The Canadian Radio‑television and Telecommunications (CRTC) continues to announce projects under its Broadband Fund that will improve transport, access, and mobile wireless projects in underserved communities.
Background:
Universal Broadband Fund (UBF): In Budget 2019, the government set a national target for 95 per cent of Canadians to have access to speeds of at least 50/10 megabits per second (Mbps) by 2026 and 100 per cent by 2030. With new investments, the target for 2026 has been increased to 98 per cent.
The UBF has dedicated $2.75 billion, up from the original $1 billion, towards connecting Canadians living in rural and remote areas of the country to high-speed Internet as well as improving mobile Internet for Indigenous peoples. The UBF includes a Rapid Response stream dedicated for projects to connect rural Canadians quickly. There are federal-provincial co-funding agreements with Quebec ($920 million) and Ontario ($1.2 billion) to connect 446,000 households by September 2022 and 2025 respectively. There is a $300 million co-funding agreement with Alberta where the two levels of government will co-select UBF projects. There is also a $4.5 million co-funding agreement with British Columbia to provide mobile connectivity along the Highway of Tears.
Low Earth Orbit (LEO) satellite developments: The government has partnered with Telesat and invested up to $600 million to secure LEO satellite capacity over Canada to reach the most remote communities. These satellites will provide high-bandwidth, low-latency broadband internet coverage to rural and remote regions of Canada, including the North. On August 12, 2021, the government announced an agreement-in-principle with Telesat to invest $1.44 billion into Telesat’s advanced LEO satellite constellation, Telesat Lightspeed. This investment will advance Canadian leadership globally in a strategically important sector.
Spectrum Initiatives: Innovation, Science and Economic Development Canada (ISED) is releasing spectrum to support 5G technologies and the provision of telecom services across Canada, including through the 2019 600 MHz auction, the recently completed 3500 MHz auction, and upcoming auctions for 3800 MHz and millimeter wave spectrum. To ensure this spectrum is put to use in a timely manner, especially in rural and remote areas, ISED has deployment requirements that reflect the minimum population coverage that licensees are required to meet within a service area within a specific timeframe. On August 4, 2021, ISED published four consultations on several initiatives that support rural and remote services and promote spectrum sharing.
CRTC Broadband Fund: In 2016, the CRTC established a fund of up to $750 million to help achieve universal access at speeds of 50/10 Mbps, as well as mobile coverage along major roads. The CRTC’s fund is sourced from a levy on telecommunications service providers’ revenues. The CRTC announced its first set of projects in northern and satellite dependent communities in August 2020 and continues to announce projects under its national call.
Connect to Innovate (CTI): Through CTI (announced in Budget 2016), 750 communities and 250,000 households across Canada are already benefitting from improved Internet speeds. By 2023, CTI will bring improved Internet speeds to over 975 rural and remote communities across Canada, including 190 Indigenous communities.
Universal Broadband Fund
Key Messages:
- The Government of Canada recognizes that it is more important than ever that all Canadians have access to reliable high-speed Internet.
- That is why the government has made billions of dollars available for rural and remote Internet infrastructure to help ensure all Canadians have access to high-speed Internet.
- The Universal Broadband Fund will provide $2.75 billion, with the goal of connecting 98 per cent of Canadians to high-speed Internet by 2026, and all Canadians by 2030.
- To date, the government has announced 131 Rapid Response projects which will connect 75,000 households.
Supplementary Messages:
- The COVID-19 pandemic has shifted much of Canadian’ lives online and transformed how they live, work, learn, and do business. This makes it more important than ever that Canadians, including Canadian small businesses in every corner of this country, have access to fast and reliable high-speed Internet.
- To assist in COVID-19 recovery efforts, the government established a Rapid Response Stream for UBF projects that can be completed quickly and projects are well underway.
- The government is also improving mobile Internet for Indigenous peoples by setting aside $50 million to support mobile projects for the benefit of Indigenous peoples.
- Federal and provincial investments in the Highway 16 project in British Columbia, more commonly known as the Highway of Tears, will soon have cellular coverage along the entire route, fulfilling a critical recommendation in the National Inquiry into Missing and Murdered Indigenous Women and Girls’ calls for Justice.
- The government has announced significant agreements with Quebec and Ontario, cost-sharing $2.12 billion in total investments to connect 446,000 households, a partnership with Alberta, and support for cell coverage along B.C.’s Highway of Tears.
- The government is working hard with all provinces and territories to ensure that projects are announced across the country in the coming months.
- The government will keep Canadians up to date on these investments and the progress made towards connecting all households in the country through online reporting, updated quarterly.
Background:
Connectivity Strategy: The government published Canada’s Connectivity Strategy in June 2019. The Strategy committed to connect every Canadian to affordable, high-speed Internet no matter where they live by 2030, and to improve mobile cellular access from coast to coast to coast. The Universal Broadband Fund (UBF) is a key action under the Strategy, along with other complementary measures such as improving access to spectrum, reducing barriers to investment, and broadband funding from other entities including the Canada Radio-television and Telecommunications Commission (CRTC), Infrastructure Canada, and the Canada Infrastructure Bank.
Universal Broadband Fund: The Government of Canada set a national target for 95 per cent of Canadian homes and businesses to have access to speeds of at least 50/10 Megabits per second (Mbps) by 2026 and 100 per cent by 2030, and accelerated the target to 98% connectivity by 2026. To help reach this target, the Government committed $2.75 billion for the Universal Broadband Fund, as well as committing $600 million to secure new, Low Earth Orbit satellite capacity to serve remote and northern communities.
The UBF will support broadband projects that will connect households and includes:
- A Rapid Response Stream for shovel-ready projects that can connect households quickly;
- Up to $750 million for large, high-impact projects that are transformative in nature, for example connecting large numbers of households or large geographic areas, or will substantially improve speeds being offered; and,
- Up to $50 million for mobile Internet projects that primarily benefit Indigenous peoples.
During the UBF intake period, a Pathfinder Service was established to help all applicants, but particularly smaller applicants, navigate the process. The Pathfinder Service received just under 2,000 inquiries during the application period with almost half of them coming from small Internet service providers (ISPs) and municipalities. They offered 18 webinars to over 1,000 participants and sent out seven e-blasts to help applicants prepare their submissions to the program.
The intake period for the main UBF closed on March 15, 2021. A total of 1,900 applications requesting ~$9 billion were received. Project selection is underway.
Announced projects as of January 9, 2022 are:
- Rapid Response Stream: The government has announced over $111 million in funding for 131 projects to connect nearly 75,000 households across Canada.
- Mobile: The Government of Canada announced a partnership with the government of British Columbia to provide 100 percent mobile coverage along BC’s Highway 16, known as the Highway of Tears, by October 2022. The project is made possible by an equal federal-provincial investment of $2.25 million each. This project fulfills a key recommendation of the National Inquiry for Missing and Murdered Indigenous Women and Girls Calls for Justice.
- Main UBF: The Government of Canada and the Government of Quebec, are partnering to launch the extensive Canada-Quebec Operation High Speed, to connect over 166,000 homes to high-speed Internet by September 2022. This operation is made possible by co-funding of $920.3 million total from the Government of Canada and the Government of Quebec.
- The Government of Canada and the Government of Ontario are partnering to connect 280,000 households in Ontario with a combined investment of $1.2B.
- The Government of Canada and the Government of Alberta are co-funding a total investment of $300 million to co-select projects submitted to the UBF in Alberta.
Futures Fund
Key Messages:
- It is vital that we advance the goal of achieving a Just Transition and help ensure that workers and communities prosper as we move to net-zero emissions.
- The Government of Canada will ensure that the new Futures Fund for Alberta, Saskatchewan and Newfoundland and Labrador supports local and regional economic diversification, sensitive to the specific needs of these communities and citizens.
- We are continuing our work to get this program right, and I am committed to ensuring that this initiative works for all Canadians, including those in rural communities, and advances place-based strategies.
Supplementary Messages:
- This government has a strong track record of successfully developing and implementing similar energy transition-related initiatives.
- For example, the Regional Development Agencies have successfully developed and delivered the Canada Coal Transition Initiative (CCTI), which is supporting skills development for residents in coal-reliant areas and has funded local infrastructure to help affected communities adapt to a low-carbon economy.
Background:
In their mandate letters, Ministers Ng and Freeland have identical commitments to establish a Futures Fund to support economic diversification in communities in Alberta, Saskatchewan and Newfoundland and Labrador affected by economic disruptions and employment losses associated with the transition away from oil and gas production. Ministers Hutchings, Petitpas Taylor, Vandal, and Boissonnault are also identified as supporting Ministers.
In particular, the commitment states that in support of comprehensive action to achieve a Just Transition, and to help ensure that workers and communities prosper as we move to net-zero, the Government of Canada will work to establish a Futures Fund for Alberta, Saskatchewan and Newfoundland and Labrador that will support local and regional economic diversification and place-based strategies.
A “Just Transition” to a net-zero carbon economy involves:
- preparing the workforce to fully participate in the low-carbon economy while minimizing the impacts of labour market transitions;
- identifying and supporting inclusive economic opportunities to support workers in their communities; and
- including workers and their communities in discussions that affect their livelihoods.
Economic recovery for rural tourism
Key Messages:
- Prior to the pandemic, tourism was a growing, high-potential sector that supported 1.8 million jobs across the country. Of these jobs, 56 percent were in rural areas.
- The 2019 Federal Tourism Growth Strategy prioritized rural and remote tourism in order to drive new economic opportunities in those regions, and to bring tourists to lesser known parts of the country to experience Canada’s breathtaking natural beauty.
- Tourism businesses, including those in rural and remote regions of our country, have been hit hard by the pandemic.
- The Government of Canada has stepped up to help tourism businesses survive the pandemic with numerous programs that have benefited businesses in communities of all sizes and in all regions.
- For instance, through the Tourism Relief Fund, the Regional Development Agencies are providing support to rural tourism projects all across the country.
Supplementary Messages:
- A key pillar of the 2019 Federal Tourism Growth Strategy is to Build Tourism in Canada’s Communities, including in rural and remote communities. To help achieve this, a $58.5 million Canadian Experiences Fund was established to invest in tourism products related to winter and shoulder seasons; rural and remote tourism; Indigenous tourism; inclusiveness, specifically for the LGBTQ2+ community; and culinary tourism.
- Since the onset of the pandemic, businesses and non-profit organizations in the tourism, arts, and culture sectors have received over $15.4 billion through federal emergency support programs such as wage and rent subsidies.
- To further encourage the tourism sector’s recovery, Budget 2021 introduced targeted measures, totalling $1 billion over three years, including:
- A $500 million Tourism Relief Fund to support the tourism sector’s recovery; the Fund most notably includes a $485 million component, administered by the Regional Development Agencies (RDAs), that directly supports local tourism businesses and communities.
- $200 million to support Canada’s major festivals and events, administered by the RDAs.
- $200 million to support local festivals and events, administered by the Department of Canadian Heritage.
- $100 million to Destination Canada for marketing campaigns to promote Canadian travel destinations.
- A number of pandemic support measures for the tourism sector were also recently extended, enabling support to continue for businesses throughout the winter and into the spring. These extended supports are as follows:
- The Tourism and Hospitality Recovery Program—which will provide support through the wage and rent subsidy programs—to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 percent.
- The Hardest-Hit Business Recovery Program, which will provide assistance through the wage and rent subsidy programs to support other businesses that have faced deep losses, with a subsidy rate of up to 50 percent.
- The Local Lockdown Program, which will provide support through the wage and rent subsidy programs to organizations that face temporary new local lockdowns; eligibility was expanded in December 2021 to include businesses with capacity-limiting restrictions of 50 percent or more and the reduced revenue loss threshold was moved from 40 percent to 25 percent.
- Tourism businesses, including those in rural and remote regions, will soon also be able to apply to the Canada Digital Adoption Program to help support tourism businesses in their digital adoption journey, which will be key in supporting the full recovery of the sector. Eligible businesses will receive micro-grants and access to zero-interest financing to help offset the costs of going digital.
Background:
Canada’s visitor economy is a high-potential and highly inclusive sector that is critical to the health of Canada’s broader economy. Tourism generates economic opportunities in every region of the country and employs a higher proportion of women, immigrants, youth, racialized individuals, and those without post-secondary degrees.
Prior to the COVID-19 pandemic, Canada’s tourism sector enjoyed several years of tremendous success. Tourist arrivals grew by approximately 3.5 percent annually over the past decade and Canada welcomed a record high of 22.1 million tourists in 2019, the third consecutive year of record-breaking arrivals. Tourism outpaced the growth of the Canadian economy in each of the last five years and achieved greater overall growth over the past 10 years. Tourism also provided 750,000 direct jobs (and a total of 1.8 million direct and indirect jobs) across Canada.
The tourism sector has, however, been severely affected by COVID-19. For the first three quarters of 2021, revenues declined by 47.3% compared to 2019, from $82.4 billion to $43.4 billion. As well, jobs directly attributable to tourism decreased by 30.2% from 697,000 in 2019 to 486,000 over the same period in 2021.