Appearance before the Standing Committee on Industry, Science and Technology (INDU) by the Minister of Economic Development and Official Languages– February 27, 2020

From: Innovation, Science and Economic Development Canada

February 27, 2020

2020-2021 Supplementary Estimates

Table of contents

• Key financial information
• Accomplishments/results
  • RDA accomplishments/results — February 27, 2020
  • ACOA accomplishments — February 24, 2020
  • CanNor accomplishments-February 21, 2020
  • CEDQ accomplishments-February 24, 2020
  • FedDev accomplishments-February 24, 2020
  • FedNor's accomplishments-February 24, 2020
  • Western Economic Diversification Canada-February 21, 2020
• Projects of note (All RDAs)
  • ACOA projects of note-February 24, 2020
  • CanNor projects of note-Feb. 21, 2020
  • Project of note — DEC-February 21, 2020
  • FedDev projects of note-February 24, 2020
  • FedNor projects of note-February 24, 2020
  • WD projects of note -February 21, 2020
• ACOA notes
  • ACOA Atlantic growth strategy results -February 24, 2020
  • ACOA jobs-February 24, 2020
  • ACOA — forestry jobs-February 24, 2020
  • Write-offs of ACOA investments-February 24, 2020
• DEC notes
  • DEC notes — Initiative for infrastructure development-February 27, 2020
  • REGI steel and aluminum initiative -February 21, 2020
  • Lac-Mégantic — Economic recovery CED-February 21, 2020
  • Lac-Mégantic — rail bypass — CED-25 February 2020
  • Asbestos -February 21, 2020
  • International Centre of Expertise for the Advancement of Artificial Intelligence (AI) in Montréal — February 24, 2020
• WD notes
  • WD notes — BC forestry industry-February 27, 2020
  • WD programming and investment results-February 21, 2020
  • Dynamic in Western Canada-February 21, 2020
  • Western Canada economy and environment-February 21, 2020
  • Western growth strategy results -February 21, 2020
  • Pulse crops-February 21, 2020
  • Trade in the Prairies-February 21, 2020
  • Agriculture — carbon pricing-February 21, 2020
• Industry notes
  • Industry notes — Steel and aluminum-February 27, 2020
  • Pyrrhotite (SRS, NRC)-February 20, 2020
  • Pyrrhotite (NRC)-February 24, 2020
  • Women entrepreneurship-February 21, 2020
  • Indigenous entrepreneurship-February 27, 2020
  • Innovation superclusters initiative -February 27, 2020
• Tourism notes
  • Tourism notes — Tourism in general -February 27, 2020
  • Tourism in canadian communities -February 27, 2020
  • Impact of coronavirus on tourism-February 27, 2020
  • Blockades -February 27, 2020
  • Rail Blockades -February 24, 2020

Key financial information

Supplementary estimates general

• Supplementary Estimates (B) represents the last opportunity for departments to access funding this fiscal year and make technical adjustments, such as transfers between Votes, reprofiling of funds and transfers with other government departments.
• All funding received through Budget Implementation Votes (BIV) is included in authorities to date since they were granted to organizations as part of Main Estimates at the beginning of the year.

Portfolio overview

• The 2019-20 Supplementary Estimates (B) for the Portfolio Organisations under your responsibility are presenting an increase of $23M. Of this amount, $1M is for FedNor, which is included in ISED appropriations.
• The increase is primarily explained by new funding from previous budget decisions, changes in the approved funding profiles of existing programs, transfers with other government departments, and reinvestment of receipts from repayable contributions. The main highlights of the funding items are as follows:

Women entrepreneurship strategy (+$10M)

• Budget 2018 originally announced $105M over five years to support investments in women-led businesses, helping them scale and grow, as well as to support regional innovation ecosystems, including incubators and accelerators, and other third-party programs supporting mentorship, networking and skills development.
• An additional $10M was announced in an off-cycle decision in June 2019, to address oversubscription to the program and is being accessed through these Estimates. A break down by regional development agency is shown below:

Canadian experience fund (+$4M)

Budget 2019 announced $60M over two years for the CEF, ($20M in 2019-20). The Fund will support Canadian businesses and organizations seeking to create, improve or expand tourism-related infrastructure—such as accommodations or local attractions—or new tourism products or experiences.

• Of the $20M, $16M was allocated directly to the Regional Development Agencies' Budget Implementation Votes in Budget 2019 and was included in the Main Estimates.
• The balance of $4M for projects of a national scope was unallocated in Budget 2019 pending a list of projects, and determining an allocation across the RDAs. REDACTED as such, the funding is now being accessed through these estimates.

These pan-Canadian investments focus on five categories: tourism in rural and remote communities, Indigenous tourism, winter tourism, inclusiveness, specifically for the LGBTQ2 community, and farm-to-table tourism, which is also known as culinary tourism.
A break down by regional development agency is shown below:

	Budget 2019 (Total 2 year funding)	2019-20 Main Estimates	Supplementary Estimates 2019-20
Atlantic Canada Opportunities Agency	6,969,922	2,091,224	98,750
Canadian Northern Economic Development Agency	5,714,576	1,709,192	79,000
Department of Industry (FedNor)	5,937,358	1,836,536	59,250
Federal Economic Development Agency for Southern Ontario	14,323,422	3,607,224	1,217,250
Department of Western Economic Diversification	12,158,294	3,097,848	1,138,250
Economic Development Agency of Canada for the Regions of Quebec	14,896,428	3,867,976	1,197,500
Total	60,000,000	16,210,000	3,790,000

Transfer from the Department of National Defence to ACOA (+$3M)

• To organize and deliver the Halifax International Security Forum which brings together over 300 senior government officials, opinion-makers and top business leaders from over 50 countries to discuss energy, security and defence.

Reinvestment of receipts from repayable contributions (+$3M)

• Three agencies (ACOA, CEDQ and WD) have the authority to access receipts from repayable contributions collected in the previous fiscal year.
• This funding is being accessed to foster the development of institutions and enterprises, and to increase economic development activities.

https://www.canada.ca/en/treasury-board-secretariat/services/planned-government-spending/supplementary-estimates/supplementary-estimates-b-2019-20.html

ACOA Funding broken down by province (XLS 25 KB)
CanNor funding by category & territory (XLS 16 KB)

Breakdown of funding provided by Canada Economic Development for Quebec Regions (CED) since November 4, 2015

Recipient	Definition	Province	Funding	Success story — Example
Non Profit Organization (Third Party)	Non Profit Organization (Third Party)	Quebec	$720,379,636	The Product Development Institute's (PDI) mission is to inspire and support Quebec businesses to innovate and develop new and relevant products and services that contribute to economic, social and environmental prosperity. In April 2019, CED renewed its funding to the PDI of $1.1 million in non-repayable contribution over three years to allow it to continue supporting business innovation, performance and competitiveness.
Business	Direct to businesses	Quebec	$557,872,463	Machinex Industries Inc. is a world leader in the design and production of recycling and waste management equipment. In 2018, CED authorized a repayable contribution of just over $1 million for a project evaluated at over $5 million involving the development of a series of robotic applications incorporating artificial intelligence recognition systems. The increase in the company's innovation potential is expected to lead to sales growth of 27% by 2020, and to continue the development of international markets.
Women Entrepreneurs	Women Entrepreneurship Strategy — Pilot fund only	Quebec	$6,058,204	Supported under the WES through a $100,000 non-repayable contribution for the acquisition of production equipment, Staca Inc. is a Jonquière company that specializes in the recovery and treatment of industrial residues from aluminum smelters, and specifically the recovery of the electrolytic bath. The company, which is managed by three women, provides a service that is unique in Canada and is the result of continuous R&D activities. As a result of Staca's expertise, only 0.12% of the materials treated annually are sent to landfill.
Clean tech	All clean tech projects (business and Non Profit Organizations)	Quebec	$189,418,154	In 2019, CED authorized a $250,000 repayable contribution for Quebec City–based company IngeniArts Technologies Inc., which specializes in energy storage for electric vehicles. CED's funding will allow IngeniArts to improve its production and commercialization capabilities for the electrokinetic battery that it has developed.
Inclusive Growth*	Women*	Quebec	$62,199,767	Galenova Inc. is a Saint-Hyacinthe-based company, headed by a woman, specializing in the design, preparation and packaging of chemical products, supplies and pharmaceutical equipment for the healthcare field. CED is supporting Galenova's growth through a repayable contribution of $1 million, granted in 2019, aimed in particular at automating production processes. The company's expansion project, totalling $8 million, includes the construction of a new plant and the acquisition of state-of-the-art equipment. These investments will enable Galenova to continue its growth, particularly on U.S. markets, leading to the creation of several quality jobs in the central Quebec region.
Inclusive Growth*	Indigenous economic development	Quebec	$40,240,243	In 2018, CED authorized a repayable contribution of $262,120 for the startup of Innuberge, a three-star accommodation facility that plans to offer ecotourism activities in the community of Unamen Shipu on the Lower North Shore. The project involves the acquisition and installation of high-end prefabricated cottages and the construction of a multi-purpose pavilion.

*Youth data not available

Investments by theme — FEDDEV Ontario (February 24, 2020)

Recipient	Definition	Province	Funding	Success story — Example (see below for more details)
Third party Delivery	Projects with third parties from primarily our regional program streams (e.g., Regional Innovation Ecosystem, Community Economic Development and Diversification)	Southern Ontario	$334.5 million	Scale-up Platform (Communitech, MaRS Discovery District, Invest Ottawa)
Business	Direct to business projects that includes funding from regional program streams (e.g., Business Scale-up and Productivity) and national program initiatives (e.g. Steel and Aluminum Initiative)	Southern Ontario	$429 million	APAG Electronic Corp
Not for profit (NFP)	Projects with NFPs from regional program streams (e.g., Regional Innovation Ecosystem) and national program initiatives (e.g., Women Entrepreneurship Ecosystem, CIP 150)	Southern Ontario	$512 million	SONAMI
Women Entrepreneurs	Women Entrepreneurship Fund and Ecosystem (regional and National), and support through other regional program streams and national programs	Southern Ontario	$175 million	AMIKA Mobile Corporation and Northumberland Business Development Assistance Corporation
Clean tech	All clean tech projects- business and NFP from regional program streams and national programs	Southern Ontario	$108 million	Bioindustrial Innovation Canada
Inclusive Growth	Projects supporting inclusive growth of women, youth and Indigenous across all programming	Southern Ontario	$237 million	Indigenous Centre for Innovation and Entrepreneurship (ICIE)

Please note: Some projects may appear in multiple streams

Success story examples

Scale-up platform

• Organization: MaRS, Communitech and Invest Ottawa are Ontario's three leading innovation hubs
• Cost and Contribution ($) Total ($52.4M):
  • Communitech: Total project cost of $36M with FedDev contribution of $18M
  • Invest Ottawa: Total project cost of $40.1M with FedDev contribution of $16.9M
  • MaRS: Total project cost of $35M with FedDev contribution of $17.5M
• Project: Funding will support the Scale-up Platform which is a new approach that pivots Ontario's three leading innovation hubs to develop a suite of integrated supports and services with a focus on scaling high potential tech companies
• Results: The goal of the platform is to have 30 high-potential companies reach $100M in annual revenue and become made-in-Canada anchor firms, support an additional 900 companies at various stages of scale readiness and support the creation of over 18,000 jobs.

APAG Elektronik Corp. (Windsor)

• Organization: Manufacturer of electronic control parts and LED lighting for automobiles
• Cost and Contribution ($): Total project cost of $11.5M with FedDev contribution of $4M
• Project: Funding will enable the company to install state-of-the-art equipment in its new 32,000 sq. ft. facility
• Results: Project will support the establishment of the company's new Windsor facility that will serve as its North American headquarters and will create 128 news skilled jobs and maintain 10 jobs

SONAMI — Southern Ontario Network for Advanced Manufacturing and Innovation (Niagara)

• Organization: Consortium of educational institutions has been established to help SME manufacturers adopt advanced manufacturing technologies and become more competitive (with an initial investment of $7.3M from FedDev). This consortium has grown from its original four members (Niagara College, Mohawk College, Sheridan College and McMaster University) to seven post-secondary institutions expanding to include Conestoga, Fanshawe and Lambton
• Cost and Contribution ($): Total project cost of $38.3M with FedDev contribution of $14M
• Project: Building on the strong manufacturing base in the region, funding will support the expansion of the consortia's advanced manufacturing capabilities and offered services for SMEs, including in bio-industrial manufacturing, green product manufacturing, advanced product testing and "Industry 4.0 technologies"
• Results: Project is expected to support 240 SMEs in adopting advanced manufacturing technologies into their products and businesses, provide talent pathways for up to 360 students and researchers, and create up to 240 new jobs

Northumberland Business Development Assistance Corporation (NBDAC) (Coburg/Eastern Ontario)

• Contribution ($): FedDev contribution of $1.4M through WES Ecosystem
• Project: Funding will assist NBDAC to launch a new automated online fin tech platform, called Delia — a tool that leverages advanced digital technologies to overcome the historic barriers that women have often encountered in obtaining commercial loans.
• Results: Project will enable women in business to apply for commercial loans (up to $50K) without gender-influenced bias and will provide these women with access to NBDAC's Venture 13 incubator in Cobourg. The project will create 10 jobs.

AMIKA Mobile Corporation (Kanata)

• Contribution ($): FedDev contribution of $100K through Women Entrepreneurship Fund (WEF)
• Project: Funding will support the company to expand international outreach and marketing efforts.
• Results: Project will enable the company to enhance their patent portfolio, resulting in the expansion to smart cities and connected vehicles, improved competitiveness and the creation of five jobs.

Bioindustrial Innovation Canada (BIC) (Sarnia and Brockville Ontario)

• Organization: Not-for-profit business accelerator focused on enabling Ontario and Canada to become a global leader in converting renewable resources into value-added bioenergy, biofuel, biochemical and biomaterials for use in a wide range of commercial applications
• Cost and Contribution ($): Total project cost of $52.4M with FedDev contribution of $15M
• Project: Expanding on the strengths of southern Ontario's bioprocessing capacity, funding will support BIC in the next evolution of the Ontario Bioindustiral Innovation Network (OBIN). The expansion includes a second cluster-site in eastern Ontario's St. Lawrence Corridor (Brockville). Through OBIN, BIC will continue to extend its proven model of providing strategic advice and investments to innovative companies in this sector
• Results: The project is expected to support 75 businesses, invest up to $1M in up to four businesses (to scale along private sector support) and create and maintain 700 highly-skilled jobs

Indigenous Centre for Innovation and Entrepreneurship (ICIE) (Toronto)

• Organization: First Indigenous incubator in southern Ontario that would exclusively serve Indigenous entrepreneurs (mostly companies in early stage — from idea development, business launch up to enterprise growth) in the region, while also providing online services and support across Canada
• Cost and Contribution ($): Total project cost of $17.7M with FedDev contribution of $5M
• Project: With the largest Indigenous population in Ontario, FedDev will continue to support the participation of Indigenous people's in the entrepreneurial ecosystem through funding the Indigenous Centre for Innovation and Entrepreneurship (ICIE). Funding will be directed to the City of Toronto, while plans and approaches will be developed in partnership with the Indigenous community
• Results: Project is expected to support 418 Indigenous businesses across the region and creating 500 jobs for Indigenous peoples in southern Ontario
• Funding since November 4, 2015 for the following categories as well as success stories.

Recipient	Project Count	FedNor Assistance	Success story — Example
Third party	20	$14,314,700	(CFDC) - Lecours Motor Sales — Shifting Gears to Diversify and Grow http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn04587.html
Business	72	$32,647,109	Sault Firm's Innovative Digital Technology Connects Parents and Childcare Providers — http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn04584.html
Women Entrepreneurs	25	$4,652,593	Tourism Excellence North Program Exceeds Industry Expectations — http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn04528.html
Clean tech	13	$6,904,813	Harnessing the Sun to Grow a Green Economy — http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn04582.html
Inclusive Growth	144	$52,745,427	Harnessing the Sun to Grow a Green Economy — http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn04582.html

WD funding by Category and Province (XLS 19 KB)

FedDev Ontario explanation of supplementary estimates b variances from main estimates 2019-20

Supplementary estimates B is primarily increases due to additional funding to the Women's Entrepreneurship Fund and accessing the additional funding for the Canadian Experiences Fund.

Issue	Amount	Description
Women Entrepreneurship Strategy	$3,300,000	REDACTED $10 million in additional contribution funding to all Regional Development Agencies and ISED for the Women Entrepreneurship Strategy — Women's Entrepreneurship Fund. $3.3 million is FedDev's share of the $10 million. This is incremental to the $29.4M of contribution funding FedDev is delivering in 2018-19 to 2022-23 for this program
Launching a Federal Strategy on Jobs and Tourism — Canadian Experience Fund (CEF)		FedDev Ontario's total allocation for CEF is $14.8 million, including $14.1 million in contribution funding ($4.8 million in 2019-20 and $9.3 million in 2020-21). Only $3.7 million in contribution funding was approved in the 2019-20 Main Estimates; the remaining $1.1 million is being accessed through the 2019-20 Supplementary Estimates B. The full 2020-21 contribution allocation ($9.3 million) is scheduled for the 2020-21 Main Estimates.
	$1,134,631	Contribution funding
	$46,519	Operating funding
	$10,800	Employee Benefits Plan (statutory authorities)
Transfer — Enhancing Rural Innovation project	($25,000)	Operating funding transferred to ACOA as FedDev Ontario's contribution to an OECD research project entitled Enhancing Rural Innovation that RDAs are contributing to. ACOA has the authority in place to provide contributions to international organizations.
Total supplementary estimates B	$4,466,950
Prior Adjustments	$1,974,587	Transfers from the Treasury Board Secretariat includes: Operating Budget Carry-Forward — over $1.1 million — Unspent operating funds carried forward from 2018-19 up to 5% of authorities. Adjustments for new Collective Agreements — over $770 thousand — Increased amounts reflecting new salary rates from collective agreements ratified in 2019-20.

FedDev Ontario's total authorities for 2019-20 tabled in the Main Estimates was $261,500,416. As a result of technical/non-supplementary adjustments, made in December 2019, and Supplementary Estimates B, total authorities has increased by $6,441,537 ($4,466,950 (Supplementary Estimates B) + $1,974,587 (Prior Adjustments)) bringing FedDev's total authorities for
2019-20 to $267,941,953.

Accomplishments/results

RDA accomplishments/results — February 27, 2020

Issue/question

How do the Regional Development Agencies help promote regional economic growth?

Suggested response

• My mandate includes leading the development of a renewed framework for regional economic development that is aligned with the government's overall economic plan and responsive to the unique opportunities and challenges of Canadians and communities across the country.
• The Regional Development Agencies (RDAs) play a key role in supporting regional economic development, acting as conveners and trusted resources, working across government to ensure that Canadians are able to seize new opportunities created by an innovation economy in all regions of the country.
• RDAs have also demonstrated their value when there are common opportunities across Canada, but there is a need to tailor initiatives to account for regional differences, with recent examples including the Women Entrepreneurship Strategy and the Canadian Experiences Fund.
• Since 2015, the government has invested more than $1.2 billion in additional funding for the Regional Development Agencies to further improve client service, strengthen collaboration and engagement, and leverage Canada-wide partnerships in support of the Innovation and Skills Plan.
• Over this same period, the Regional Development Agencies have announced over 11,000 projects, totaling $4.7 billion in federal contributions and leveraging $10 billion in additional funding.

Background

• Regional Development Agencies (RDA) across Canada help to address key economic challenges by providing regionally-tailored programs, services, and expertise.
• Each RDA brings a regional policy perspective in support of the national agenda through: regional economic intelligence to support national decision-making; contributing to federal regional coordination and cooperative relationships with other levels of government, community and research institutions, and other stakeholders; and supporting national priorities in regions.
• As part of the government's broader review of innovation programs, and to help bolster the regional implementation of the Innovation and Skills Plan, in 2018 the RDAs implemented Regional Economic Growth through Innovation (REGI), a nationally coordinated, regionally tailored program focused on business productivity/scale up and regional innovation ecosystems. REGI allows RDAs to continue their role in supporting communities to advance and diversify their economies through other existing programs.
• Since 2015, the Regional Development Agencies have announced over 11,000 projects, totaling $4.7 billion in federal contributions and leveraging $10 billion in additional funding, as well as creating and maintaining over 110,000 jobs.
• RDAs are developing tailored regional strategies to help further drive growth and improve Innovation and Skills Plan outcomes in all regions of Canada:
  • ACOA is co-leading the work on the Atlantic Growth Strategy (AGS) along with ISED and PCO. Launched in July of 2016, the AGS is driving economic growth in Atlantic Canada through enhanced federal and provincial collaboration. The strategy focuses on five joint areas of priority: skilled workforce and immigration, innovation; trade and investment; clean growth and climate change; and infrastructure.
  • CanNor, following engagement with key partners and stakeholders from across the territories, released its Pan-Territorial Growth Strategy to help stimulate economic growth, focused on Skills development, Innovation and diversification, Infrastructure and Resource development.
  • CED launched its Federal Strategy on Innovation and Growth for the Quebec Regions in November 2018, focused on innovation and clean tech, growth and exports, entrepreneurial talent, and growth in all regions of Quebec.
  • FedDev released its strategy entitled Towards a Stronger Southern Ontario in August 2019. The strategy aims to help foster the conditions for innovation to flourish and for high-potential businesses to grow and scale rapidly.
  • FedNor is leading the Prosperity and Growth Strategy for Northern Ontario, launched in April 2018, a comprehensive plan focused on investing in innovation, communities and talent.
  • WD launched Grow West: The Western Canada Growth Strategy in June 2019. The whole-of-government strategy is a call to action for WD and partners to position the West for success over the next ten years.
• Budget 2019 announced several RDA initiatives:
  • To help Canada's tourism sector innovate and grow, RDAs received $58.5 million over two years, starting in 2019–20, for the creation of a Canadian Experiences Fund. The Fund will help communities across Canada create or improve their tourism-related infrastructure, products or experiences.
  • In response to the recommendations of the Task Force on Just Transition for Canadian Coal Power Workers and Communities, ACOA and WD received $150 million over five years, starting in 2020-21, to create an infrastructure fund supporting priority projects in impacted communities.
  • As part of a National Food Policy, CanNor received $15 million over five years, starting in 2019–20, for a Northern Isolated Community Initiatives Fund for community-led projects for local and Indigenous food production systems.
  • To support innovation and encourage stronger business growth in the territories, CanNor received $75 million over five years, starting in 2019–20, to create a new initiative: Inclusive Diversification and Economic Advancement in the North (IDEANorth). This updated programming will support a wider range of initiatives, including the development of foundational economic infrastructure such as roads or visitor centres, to address the higher cost of doing business in the North.
  • FedDev received permanent funding of $184.5 million per year, starting in 2024-25, to support innovation and economic growth in southern Ontario.
  • WD received $100 million over three years, starting in 2019-20, to increase its programming in western Canada, as well as $1 million for 2019-20 to develop a new strategy in collaboration with Alberta, Saskatchewan and Manitoba to sustainably manage water and land in the Prairies.
  • ACOA ($25M), CED ($51M) and WD ($16M) received access to contributions that have been repaid to the agencies. In past years, this access was granted through the Supplementary Estimates process.
• Since 2015, RDAs have received $1.25 billion in new incremental government funding.

ACOA accomplishments — February 24, 2020

Issue/question

Can you highlight some of ACOA's results and accomplishments?

Suggested response

• Since 2015, ACOA has worked with a range of partners and stakeholders, supporting projects in Atlantic Canada to assist businesses, and sustain inclusive and diverse communities. ACOA has supported more than 1,500 businesses and 500 communities in Atlantic Canada.
• Since 2015, for each dollar invested by ACOA, other sources of funding are investing $1.44.
• The business survival rate of ACOA-assisted firms after five years was significantly higher than the survival rate of firms not assisted by ACOA by 36 percentage points (70% rate for ACOA-assisted firms; 34% rate for firms not assisted by ACOA), according to data released by Statistics Canada in 2019.
• Sales of ACOA-assisted firms grew by an average of 2.7% per year compared to 0.3% for non-assisted firms, according to data released by Statistics Canada in 2019.
• Exports by ACOA-assisted firms totaled $2.24 billion in 2016, an average increase of 7.6% per year since 2011.
• Since 2015, the Atlantic Canada gross domestic product (GDP) grew at an average of 1.0% per year and employment increased by 1.6%.

Background

• The leverage data is obtained from the Agency's administrative database (QAccess).
• All data related to ACOA-assisted firms and firms not assisted by ACOA is the latest available from Statistics Canada.

CanNor accomplishments-February 21, 2020

Issue/question

Overview of CanNor accomplishments and results from 2015 to present

Suggested response

• Since 2015, CanNor has approved $170.9 M in funding towards a total of 388 projects across the three Territories, resulting in the creation of 1,588 jobs.
• Previous evaluations undertaken by CanNor have identified that every $1 million invested by the Agency has led to an overall increase of $2.2 million in territorial Gross Domestic Product, and contributed to 18 person-years of full time employment.
• In 2019, CanNor proudly released its new Pan-Territorial Growth Strategy which focuses on four main pillars: diversification and innovation, infrastructure, resource development and skills development.

Background

Pan-territorial growth strategy

The Pan-Territorial Growth Strategy is CanNor's five year plan towards robust and inclusive economies across the territories. Developed in consultation with partners, the Strategy focuses on four interrelated areas:

• Skilled workforce
• Infrastructure investments and development
• Resource development
• Diversification and innovation

Inclusive Diversification and Economic Advancement in the North (IDEANorth) and Strategic Investments in Northern Economic Development

• Inclusive Diversification and Economic Advancement in the North (IDEANorth) focuses on four priority areas: economic growth and sector development; business scale-up, productivity and innovation; small-scale economic infrastructure development; and foundational economic infrastructure.
• Budget 2019 announced $75M over 5 years starting in 2019-20 for CanNor to enhance its current economic development program, including the creation of IDEANorth.

Northern Project Management Office (NPMO)

• Through its NPMO, CanNor plays a unique role aimed at improving the timeliness, predictability and transparency of northern regulatory processes to foster a more stable and attractive investment climate in the territories. CanNor is the only regional development agency with such responsibilities.

The NPMO is primarily involved in projects where more than one federal department or agency participates in a territorial environmental assessment and regulatory review process. Pilimmaksaivik

• The Government of Canada has constitutionally protected obligations (Article 23 in the Nunavut Agreement) to build a public service in Nunavut that is fully representative (i.e. 85% of all positions filled by Nunavut Inuit).
• In 2006, Nunavut Tunngavik Incorporated (NTI) filed a Statement of Claim against the Government of Canada seeking $1 billion in damages, alleging the Government of Canada failed to adequately fulfill its commitments under the Nunavut Agreement, particularly those related to Articles 23 and 24 (Government Contracts)
• A Settlement Agreement was reached with NTI in 2015. To help meet its commitments under this Agreement, on April 1, 2016, the Government of Canada created Pilimmaksaivik:
  • to serve as Canada's central coordinating office; and,
  • to provide a whole-of-government, integrated response to Inuit employment development needs (e.g., pre-employment, recruitment and retention of Inuit employees in federal government positions across Nunavut).
• Overseen by CanNor, Pilimmaksaivik serves 11 federal departments and agencies with Article 23 obligations, as well as central agencies with policy and/or service activities pertaining to employment in Nunavut.

CEDQ accomplishments-February 24, 2020

Issue/question

What where CEDQ's accomplishments to support the economic development for Quebec regions since November 4, 2015?

Suggested response

• Canada economic development for Quebec regions (CEDQ) contributes to building a prosperous and inclusive economy and to strengthening communities.
• Through its interventions, CEDQ supports regional innovation, community vitality, and key sectors such as clean technology, tourism, and women entrepreneurs.
• Since November 4, 2015, CEDQ has approved 2,735 projects for a total authorized assistance of $1.28 billion that generated investments of $6.86 billion.
• The supported businesses and organizations expect that these 2,735 projects will create more than 22,000 jobs.

Background

• Of the 2,735 projects supported by Canada Economic Development for Quebec Regions (CEDQ), there were:
  • 1,219 projects for non-profit economic organizations (NPOs), totalling more than $720 million in authorized assistance with total investments reaching over $2.7 billion.
  • 1,516 projects for small to medium-sized businesses (SMEs), totalling more than $557.8 million in authorized assistance with total investments reaching over $4.2 billion.
  • 336 projects in clean technology, totalling more than $189 million in authorized assistance with total investments reaching over $1.7 billion
  • 188 projects for women entrepreneurs and NPOs that support women-owned businesses, including projects from the federal Women Entrepreneurship Strategy (WES), totalling more than $62 million in authorized assistance with total investments reaching over $218 million.
  • 104 projects to promote Indigenous economic development, totalling more than $40 million in authorized assistance with total investments reaching over $163 million.
  • 366 projects in tourism, including under the Canadian Experiences Fund, totalling more than $163 million in authorized assistance with total investments reaching over $1.3 billion.
  • 204 projects to supporting local economic development in regions where slow economic growth is prevalent or opportunities for productive employment are inadequate, totalling $71.6 million in authorized assistance.
• In 2019, CEDQ'S Fast Forward Challenge, a pilot project to support innovative entrepreneurship in young people, awarded $50,000 in grants to 10 start-up companies in high-tech sectors to help accelerate their business projects.

Examples of projects

• NPO: The Product Development Institute's (PDI), located in Montreal, mission is to inspire and support Quebec businesses to innovate and develop new and relevant products and services that contribute to economic, social and environmental prosperity. In April 2019, CEDQ renewed its funding to the PDI of $1.1 million in non-repayable contribution over three years to allow it to continue supporting business innovation, performance and competitiveness.
• SME: Machinex Industries Inc., located in Plessisville, is a world leader in the design and production of recycling and waste management equipment. In 2018, CEDQ authorized a repayable contribution of just over $1 million for a project evaluated at over $5 million involving the development of a series of robotic applications incorporating artificial intelligence recognition systems. The increase in the company's innovation potential is expected to lead to sales growth of 27% by 2020, and to continue the development of international markets.
• Clean tech: In 2019, CEDQ authorized a $250,000 repayable contribution for Quebec City–based company IngeniArts Technologies Inc. located in Québec City, which specializes in energy storage for electric vehicles. CEDQ's funding will allow IngeniArts to improve its production and commercialization capabilities for the electrokinetic battery that it has developed.
• Women entrepreneurs: Supported under the WES through a $100,000 non-repayable contribution for the acquisition of production equipment, Staca Inc. is a Jonquière company that specializes in the recovery and treatment of industrial residues from aluminum smelters, and specifically the recovery of the electrolytic bath. The company, which is managed by three women, provides a service that is unique in Canada and is the result of continuous R&D activities. As a result of Staca's expertise, only 0.12% of the materials treated annually are sent to landfill.
• Indigenous: In 2018, CEDQ authorized a repayable contribution of $262,120 for the startup of Innuberge, a three-star accommodation facility that plans to offer ecotourism activities in the community of Unamen Shipu on the Lower North Shore. The project involves the acquisition and installation of high-end prefabricated cottages and the construction of a multi-purpose pavilion.
• Tourism: In 2019, CEDQ awarded $73,690 in non-repayable contributions under the Canadian Experience Fund to White Lips, a for-profit enterprise, for the organization and commercialization of the 7th edition of the White Lips sports event in the Gaspé Peninsula mountains. This event, reserved specifically for women, is designed to promote initiation or improvement in off-piste skiing or snowboarding. Participants come from across the country including Winnipeg, Ontario, New Brunswick and Quebec. The Murdochville White Lips is so popular that it has reached full capacity and even has a waiting list.

FedDev accomplishments-February 24, 2020

Issue/question

What results has FedDev Ontario achieved?

Suggested response

• Since November 2015, FedDev Ontario has approved investments of more than $940 million to nearly 900 projects that are projected to leverage more than $1.9 billion in additional funding. These include:
  • more than $428 million in over 300 direct to businesses projects; and
  • more than $511 million in over 580 not-for-profit organizations projects.
• FedDev Ontario support is felt across the region with:
  • more than $340 million invested in 400 rural projects; and
  • support going to all 37 census divisions and 195 unique communities.
• Investments made by FedDev Ontario since November 2015 are expected to support the creation and maintenance of around 65,000 jobs. This includes:
  • 40,564 jobs created and 23,941 jobs maintained.
• Firms who have received funding from FedDev Ontario tend to outperform comparable businesses on: employment growth, revenue, R&D spending and productivity.

Background

• Results reported include investments made through FedDev Ontario's core regional programming, which is currently comprised of three streams: 1) Business Scale-Up and Productivity, 2) Regional Innovation Ecosystems and 3) Community Economic Development and Diversification, and through national delivery initiatives such as Steel and Aluminum, Women Entrepreneurship, and Canadian Experiences Fund.
• Since November 2015 FedDev Ontario has invested over $780 million into 215 projects through its core regional programming, which is designed to support firm scale-up and global readiness, enhance cluster development, and build more resilient communities.
• Since November 2015, FedDev Ontario has invested more than $150 million into over 680 projects to support national programming and initiatives.
• FedDev Ontario worked with Statistics Canada in 2018-19 to measure the impact of its investments in southern Ontario. The analysis demonstrated that the Agency's direct business recipients, since 2010, have grown employment by 18 percent, revenue by 14 percent, productivity by 4 percent, and expenditures on research and development (R&D) by 38 percent per year, on average, three years post funding. This compares to negative 0.6 percent for employment, negative 0.4 percent for revenue, 1 percent for productivity, and negative 6 percent for R&D for similar businesses not funded by FedDev Ontario.
• FedDev Ontario investments create relatively more high quality jobs in science, tech, engineering, and math fields and in manufacturing.
• Every $1 from FedDev Ontario core regional program stream investments generates $3.5 of value in the broader economy.

FedNor's accomplishments-February 24, 2020

Issue/question

• What are examples of key FedNor's accomplishments and results since November 4, 2015?
• How has FedNor's funding and efforts since November 4, 2015 resulted in key economic outcomes for Northern Ontario?

Suggested response

• FedNor promotes economic development and diversification, job creation, and sustainable, self-reliant communities. By working with a variety of partners, as both a facilitator and catalyst, FedNor helps to create an environment in which communities can thrive, businesses can grow, and people can prosper.
• FedNor has a positive track record of results in terms of supporting projects that lead to job creation and economic growth.
• Since November 4, 2015, FedNor has approved 698 projects across all of its programs, representing an investment of $245.6 million and total project costs of $670.2 million. To date, completed projects have resulted in 2,744 FTEs created, 2,874 FTEs maintained, 1,293 businesses created, 1,869 businesses maintained, and 1,247 businesses expanded or modernized.
• Released in 2018, the Prosperity and Growth Strategy for Northern Ontario (PGSNO) is a regional approach to economic development based on national priorities including the Innovation and Skills Plan.
• At FedNor, every dollar invested supports the PGSNO. In 2019-20, this included investments of $60M in 137 projects, which leveraged $101.6M.
• In addition to direct funding, FedNor actively engages with various stakeholders on a number of collaborative initiatives.
• FedNor has acted as a pathway and advocate for several significant projects in the region that have critical economic impact including:
  • The Domtar Espanola Paper mill project receiving funding through SIF and ECCC; and,
  • Algoma Steel having received significant SIF and FedDev funding for its major expansion.

Background

Prosperity and Growth Strategy for Northern Ontario (PGSNO)

• FedNor's Prosperity and Growth Strategy for Northern Ontario (PGSNO) was released in spring 2018 after extensive consultation with stakeholders and partner organizations.
• PGSNO is a regional approach to economic development that coordinates and highlights the work of Federal and partner organizations across Northern Ontario to support Canada's Innovation and Skills Plan (ISP), announced in Budget 2017.
• PGSNO builds on collaborations with government and community partners to address the needs of Northern Ontario's communities and private sector stakeholders in three priority areas:
  • Supporting innovation by expanding and strengthening the regional innovation ecosystem and providing support for incubators, accelerators and clusters;
  • Growing companies by enhancing supports for business start-ups and scale-ups, promoting the adoption of advanced technologies, and increasing the capacity of companies to export; and
  • Building stronger communities by helping municipalities and Indigenous communities better respond to economic development opportunities and challenges.
• These three pillars include 11 key areas of collaborative action that are helping guide Government of Canada activities and investments in the region.
• Results and achievements to date:
  • The PGSNO has already achieved solid results and successful collaborations with federal, provincial, and regional partners. At FedNor, every dollar invested supports the PGSNO. In 2019-20, this included investments of $60M in 137 projects, which leveraged $101.6M.
  • In addition to direct funding, FedNor actively engaged with various stakeholders on a number of collaborative initiatives.
  • FedNor is also delivering on several other key Government of Canada programs, which directly support the PGSNO: Regional Economic Growth through Innovation (REGI), Steel and Aluminum Initiative (SAI), Women Entrepreneurship Strategy (WES), and the Canadian Experiences Fund (CEF)
• Key investments and collaborations in support of Innovation include:
  • $2.25M for six colleges to promote the use of new technologies, student skills, and innovation to the private sector
  • Establishment of strong working relationships with Natural Resources Canada, Strategic Innovation Fund, and the Clean Tech Hub to ensure small and medium size businesses and organizations across Northern Ontario have access to available programs and supports.
  • Collaboration with Global Affairs Canada and the Canadian Intellectual Property Office to host information sessions for Northern Ontario stakeholders.
• Key investments and collaborations in support of Growing Companies include:
  • 8 Northern Ontario businesses have been supported through the Government of Canada's Accelerated Growth Service.
  • 24 Community Futures Development Corporations supported by FedNor invested almost $28M in Northern Ontario companies, leveraging an additional $29M from other investors.
  • $4.6M invested in 12 businesses to support export, innovation, and productivity.
  • $1.4M to PARO to assist Indigenous rural and remote women entrepreneurs.
  • $2.0M for Nord Aski's to support youth interns with SMEs, to increase youth employment and support business growth.
  • Continued participation in the Government of Canada's Accelerated Growth Service (AGS) and support for eight firms from Northern Ontario.
  • Active promotion of the Industrial Technology Benefits (ITB) Policy, working with local businesses to facilitate their participation in defence contracts.
• Key investments and collaborations in support of Building Stronger Communities:
  • $9.1M invested for ICT Networks to support communities with broadband infrastructure planning and promote technology adoption.
  • $3.5M towards the construction of a new art Gallery on Thunder Bay's waterfront to support tourism development.
  • Northern Ontario communities selected for Immigration, Refugees and Citizenship Canada's Rural and Northern Immigration Pilot.
  • Active participation with Indigenous Services Canada in the design and delivery of the Comprehensive Community Planning (CCP) approach, an ongoing holistic process by which Indigenous communities can plan for their future.

Western Economic Diversification Canada-February 21, 2020

Issue/question

WD Programming and Investment Results

Suggested response

• Since November 2015, WD has supported businesses in an effort to increase revenues and make productivity improvements. WD funded projects under innovation and business growth programs reported:
  • the creation of over 11,000 jobs
  • $2.2B in export sales
  • 582 million in business sales growth from commercialization.
• WD provided roughly $40M to partner organizations to deliver services and supports to individuals and communities across the West. Including business information and advisory services to SMEs, loans to SMEs and community economic development planning a supports.
• In 2019 WD launched an initiative to help grow and modernize sectors heavily dependent on steel and aluminum. $24.99M is available to support projects that increase competitiveness in this sector. The bottom line is that WD's new investments will support business growth in western Canada and help create new jobs.
• WD is there for communities in times of crisis. In 2016-17, WD administered over $7 million to help the stability of the construction industry, and to help middle class families in the Regional Municipality of Wood Buffalo rebuild following the devastating wildfires.

Background

WD's core programs are:

• Regional Economic Growth through Innovation:
  • Regional Innovation Ecosystems: creating environment that meet business needs for innovation and entrepreneurship.
  • Business Scale-up and Productivity: promoting business growth through commercialization, productivity, and market expansion.
• Community Economic Development and Diversification: assisting organizations and communities in western Canada to fully participate in and benefit from economic opportunities.
• Economic Development Initiative: strengthening the official language minority communities in the West.
• Western Canada Business Service Network: helping entrepreneurs start or expand small businesses.
• WD is advancing its priority of promoting an inclusive economy. Toward that goal, WD has invested 35 million in 130 projects targeted to support women. Also in support of inclusive economic growth, WD has invested 67.4 million in 107 Indigenous projects.
• WD is at the forefront of transitioning the West to a more knowledge-based economy. This includes focusing on emerging sectors with high potential, such as clean technology. Since November 2015, WD has invested 131.4M in 147clean technology projects.

Other community initiatives and results include:

• Restoring the Hudson Bay rail line to Churchill. This rail line facilitated the affordable supply of food and fuel to residents of 41 communities in Northern Manitoba and seven communities in Nunavut.
• WD delivered $7.4 million to assist 187 western Canadian drywall contractors and builders, and 451 residents of the Regional Municipality of Wood Buffalo whose homes were damaged or destroyed by the 2016 wildfires.
• WD continues to support the Indigenous Business Development Services, the Entrepreneurs with Disabilities Program (EDP) and Francophone Economic Development Organizations (FEDOs) in western Canada. This programming enhances the ability of Indigenous Peoples, Francophones, rural clients and others to start, grow and expand their businesses.
• WD provides investment loans to Western Canadian businesses through its Community Futures Program and Women's Enterprise Initiative. In 2018-19 WEI provided 91 loans to women-owned businesses worth $7.1 million. These loans in turn leveraged an additional $15.5 million from other funding sources. This initiative served almost 8,000 clients over the year, almost 300 of whom self-identified as Indigenous.
• WD also supports rural and remote areas, by providing them access to business advice, and support to diversify their economy away from the resource sectors. This grassroots approach to economic development through the Community Futures (CF) program has consistently yielded positive results, with WD-assisted CF firms experiencing higher employment and sales growth compared to similar firms that did not receive WD assistance.

Projects of note (All RDAs)

ACOA projects of note-February 24, 2020

Issue/question

ACOA's projects of note, by province

Suggested response

Waldale Manufacturing, Amherst, NS

• ACOA provided a $750,000 repayable contribution to support the expansion and modernization of the company's facilities as North America's only manufacturer that specializes in motor vehicle license plates. At least ten new jobs will be created and 60 full-time positions will be maintained.

L'Étang Ruisseau Bar, Shippagan, NB

• ACOA provided a total of $1.2 M to the company over the years. Most recently, ACOA invested $400,000 under REGI (repayable) to support the expansion of the oyster hatchery and install a wet holding facility. The company plays an important role in the development of oyster aquaculture in New Brunswick.

PEI Mussel King, Morell, PEI

• Under the direction of Esther Dockendorff, the company is a leader in mussel cultivation and processing in Canada. With the support of ACOA throughout the years ($3.65 M), the company has expanded operations, installed new equipment to increase quality and productivity, built a cold storage facility at its processing plant, and entered new export markets.

Empowered Homes, St. John's, NL

• ACOA provided $1.65 M in support to the company over the years. The company specializes in the smart thermostat that you can control from your phone or tablet. Its product is the only thermostat that works with electric baseboard heating — which is installed in one in three homes in Canada. Most recently, ACOA supported a $500,000 project under REGI (repayable).

Background

• ACOA works to create opportunities for economic growth in Atlantic Canada by helping businesses become more competitive, innovative and productive, by working with diverse communities to develop and diversify local economies, and by championing the strengths of Atlantic Canada.

CanNor projects of note-Feb. 21, 2020

Issue/question

Since 2015-16, CanNor has approved $170.9 M in funding towards 388 projects across the three Territories, resulting in the creation of 1,588 jobs. These projects have included business expansion and market development, innovative clean technology development and adaptation, training and capacity development as well as key sectoral growth initiatives. Below is a sample of recently supported projects.

Suggested response

Yukon

• Since 2015, CanNor has contributed over $2.4M towards the YukonStruct Northlight Innovation Hub.
• CanNor contributed $3M towards a new Waterfront Hotel in Whitehorse through an innovative partnership between two Yukon First Nations Development Corporations.
• Whitehorse will be hosting the 2020 Arctic Winter Games, and CanNor has provided $56,308 towards a cultural marketplace, craft workshops and a pop up gallery.

Northwest Territories

• CanNor has provided over $100,000 in support to Laughing Lichen Wildcrafted Herbs & Tea for the construction of an Off-Grid Manufacturing Facility and clean technology upgrades outside of Yellowknife.
• CanNor provided $600,000 to Boreal Cultivation, in support of the construction of the first craft cannabis production facility North of 60.
• CanNor provided $280,000 to Tourism Tulita Inc for the construction of six biomass heated chalets in Tulita, NWT.

Nunavut

• CanNor provided $1,628,900 to the Kivalliq Inuit Association to assess the feasibility of a Hydroelectric and Fibre Optic Link between Manitoba and the Kivalliq region of Nunavut, which would be the first ground link between Nunavut and the rest of Canada.
• CanNor provided Illu Inc with $100,000 towards the construction of a high-end wilderness eco-resort using individual energy-efficient glass domes in Cambridge Bay, Nunavut.
• CanNor provided $144,000 to Kimmirut for the establishment of an artisanal smoked arctic char enterprise.

Project of note — DEC-February 21, 2020

Issue/question

What are some examples of noteworthy projects that Canada Economic Development for Quebec Regions (CEDQ) has supported in recent years?

Suggested response

• Founded in 2012, Mecademic is an innovative high-tech company that emerged from CENTECH, the business incubator affiliated with Montréal's École des Technologies supérieures. The company designs and manufactures very small, ultra-compact high-precise industrial robots. Its turnover is growing strongly and its sales, 95% of which are on international markets, are growing strongly. In 2018, CEDQ authorized a repayable contribution of $450K for a $1.8M project to support Mecademic's growth by improving its competitiveness and implementing an international marketing strategy. As a result of this project, Mecademic will increase its production capacity fivefold, growing from 10 employees to more than 30.
• Galenova Inc. is a woman-led Saint-Hyacinthe-based company specializing in the design, preparation and packaging of chemical and pharmaceutical products, supplies and equipment for the healthcare field. CEDQ is supporting Galenova's growth through a repayable contribution of $1M, awarded in 2019, to automate its production processes. The company's $8M expansion project includes the construction of a new plant and the acquisition of state-of-the-art equipment. These investments will help Galenova continue its growth, particularly in U.S. markets, resulting in the creation of a number of quality jobs in the Centre-du-Québec region.
• In operation since October 2017, Boivin Évolution Inc. (BE) in Lévis is a start-up company specializing in the manufacture and marketing of 100% electric bodies and automated arms for waste collection. In 2018, CEDQ authorized a repayable contribution of $250K for a $1.88M project to support the design of two demonstration units at manufacturing cost. BE is the first company to make these 100% electric innovations available in North America. Its collection bodies can be installed on both diesel and electric truck chassis. Therefore, with BE's line of products, all waste collection could be done using 100% electric vehicles.

FedDev projects of note-February 24, 2020

Issue/question

Examples of projects in Southern Ontario

Background

Business scale-up and productivity

A Windsor-based manufacturer of electronic control parts and LED lighting for the automotive sector, APAG Electronic Corp (APAG) is receiving up to $4 million, from FedDev Ontario, to help establish a new 32,000 square-foot manufacturing facility in Windsor, Ontario that will serve as the Switzerland-based company's North American headquarters. The project will leverage $7.4 million in Foreign Direct Investment (FDI) from the parent company, bring 128 new skilled jobs to the region and maintain 10 jobs.

Community economic development and diversification — for profit stream

Tri-Mach Group Inc., a women-led food processing equipment manufacturer located in Elmira, outside of Waterloo, Ontario is receiving up to $2.1 million, from FedDev Ontario, to scale-up and meet the growing demand for its sanitary conveyor systems from customers in the food and beverage and pharmaceutical sectors. The project will leverage $12.6 million in partner funding, support the acquisition of advanced manufacturing equipment that will increase its market competitiveness in North America, positively impact local supply chain spending, and create 25 new full-time jobs in Elmira.

Regional innovation ecosystem

Growing the Next Generation of Anchor Firms in Southern Ontario: Three of Ontario's top innovation hubs — Communitech, MaRS and Invest Ottawa — have joined forces to launch a new Scale-Up Platform. The $52.4 million investment, announced by the Prime Minister in 2019, is intended to reach promising high growth firms in all regions of southern Ontario to accelerate their growth and take them to the next level. The three organizations will pool their resources and provide tailored services to help scale high potential SMEs. The goal of the Platform is to have thirty firms become $100-million anchor firms by 2024, support an additional 900 companies to advance through stages of scale readiness, and create up to 18,000 jobs. The project will leverage over $58 million in partner funding. This investment also helps to integrate innovation centres in smaller communities like Brantford and Kingston with the Platform.

Regional innovation ecosystem

FedDev Ontario is providing $14 million to Niagara College, in Niagara-on-the-Lake, for the Southern Ontario Network for Advanced Manufacturing Innovation (SONAMI). This network, which includes Lambton College, Fanshawe College, Conestoga College, Niagara College, Mohawk College, McMaster University, and Sheridan College, will connect SMEs with targeted support and access to cutting-edge facilities and specialized expertise in areas, such as digitally enabled intelligent manufacturing, automation, robotics, additive manufacturing and the adoption of novel composite materials. This network will leverage over $24 million in funding ($14 million from industry and over $10 million from network members), create up to 240 new jobs, provide talent pathways for up to 360 students and researchers through work-integrated learning, re-skilling and mentoring.

FedNor projects of note-February 24, 2020

Issue/question

• What are examples of significant projects that FedNor has funded since November 4, 2015?
• What are significant projects supported by FedNor since November 4, 2015 in the following categories: Third Party, Businesses, Women, Clean Technology, and Inclusiveness.

Suggested response

• FedNor's mandate is to work with businesses and community partners to promote economic development, diversification and job creation, and encourages sustainable, self-reliant communities in Northern Ontario. Through the delivery of regional and national grants and contributions programs, FedNor's funding over the years has resulted in significant economic outcomes for the region.
• Since November 4, 2015, FedNor has approved 698 projects across all of its programs, representing an investment of $245.6 million and total project costs of $670.2 million. To date, completed projects have resulted in 2,744 FTEs created, 2,874 FTEs maintained, 1,293 businesses created, 1,869 businesses maintained, and 1,247 businesses expanded or modernized.
• Over the years, FedNor has funded a number of noteworthy regional economic projects that have had significant impact for the region.
• Examples of these projects include:
  • Funding towards the regional ICT Networks to raise awareness and encourage the adoption of ICT amongst SMEs through third party delivery, and reduce the connectivity gap in the region;
  • Assistance to businesses, such as Crofter's Food Ltd., in support of business growth and expansion;
  • Funding for PARO Center for Women's Enterprises to deliver programming in support of women's entrepreneurial and business development in Northern Ontario;
  • Support for Heliene Inc. and it's solar panel manufacturing plant in its efforts to transform the energy sector that is moving toward clean, renewable power generation; and;
  • Funding for Nishnawbe Aski Development Fund to provide targeted support to First Nations within NADF's service area through Comprehensive Community Planning and an Aboriginal Business Incubator.

Background

Significant project examples

Third Party: ICT networks

• Since 2005, FedNor has supported the ICTNs (Blue Sky Net, NEOnet, and Parry Sound Muskoka Community Network-PMCN) operating costs through project-based support. To ensure ICTNs services were available across Northern Ontario, FedNor has since 2012, supported two project-based agreements with the Northwestern Ontario Innovation Centre (NOIC) and the Sault Ste. Marie Innovation Centre (SSMIC). The purpose of the ICTNs is to raise awareness and encourage the adoption of ICT amongst SMEs, and reduce the connectivity gap in the region. The ICTNs are considered key delivery agents of Information and Communication Technology in Northern Ontario and are part of the region's innovation ecosystem.
• Results Achieved: Collectively, the ICTNs have provided approximately $5.7 million dollars to 1,600 SMEs (translates to an average of $3,563 per SME), which leveraged an additional $2.6 million in private sector investment. As a result, 583 full and part-time jobs were created and participating SMEs reported a 39 percent increase in sales revenues and 33 percent reported access to new markets (outside Ontario). In addition, the ICTNs were responsible for the development of: 16 broadband assets; the modernization and/or expansion of 970 businesses; the development of 325 value-added products, processes or services; and the delivery of 960 ICT awareness activities / events with more than 3500 participants.

Businesses: Crofters

• Crofter's Food Ltd. is a for-profit, private, family-owned and operated certified organic manufacturing company in Parry Sound, Ontario.
• In 2016, Crofters completed a 47,000 sq. ft. fully operational, state of the art second manufacturing plant that has tripled production capacity along Oastler Park Drive, in the neighboring Township of Seguin. Emerging markets are continuously growing for Crofter's, which include the European Union, Japan and Asia.
• FedNor has a long standing relationship with Crofter's Food Ltd. FedNor supported Crofter's projects since the 1990's, which have had the cumulative impact of:
  • over 60 full-time equivalent jobs created and maintained;
  • business scale up, innovation and productivity improvements and exporting successes;
• Crofter's recently completed a project with FedNor for the implementation of new technologies using innovation to integrate plant operations, reduce operating costs, and make Crofter's more competitive in the global market.

Women: PARO center for women's enterprise

• PARO is a women's-centered Community Economic Development organization committed to women's entrepreneurial and business development in Northern Ontario. PARO delivers programming to enhance women's micro-enterprise development, including: business skills training, networking, partnership development, mentoring, access to information, and access to capital primarily through peer lending circles. Currently, PARO supports 127 Peer Lending Circles located in 109 Ontario communities, making it the largest women-centered peer lending network in North America.
• FedNor has a long standing relationship with PARO. FedNor supported PARO projects since 2006, which have had the cumulative impact of:
  • 1,006 full-time equivalent jobs created;
  • 1,291 full time equivalent jobs maintained, and;
  • 1,179 businesses created, expanded or modernized.

Clean technology: Heliene

• FedNor is supporting Heliene Inc., a solar panel manufacturer located in Sault Ste Marie. The company of over 60 employees utilizes robotics and automation as part of its manufacturing process. For the following developments, FedNor has the following projects with Heliene Inc:
  • Project 1: FedNor provided $199,450 in 2017-18 to the company to adopt new technology to enable it to increase automation and increase productivity and revenues. The project was successfully completed.
  • Project 2: FedNor is providing $707,250 to the company to undertake R&D for an innovative deployment of electric vehicle charging infrastructure using solar power. The project is currently under way.
  • Project 3: FedNor is providing $650,000 to the company to undertake R&D towards an intelligent photovoltaic smart grid solution for residential and commercial use. This technology will be used to manage solar energy grids and include rapid shutdown sensing, solar module energy optimization, Bluetooth monitoring and reactive power control. The project is currently under way.
• Results to date include:
  • Increased productivity, profitability and scale-up
  • Diversified revenue streams for the company
  • New green technology manufactured in Northern Ontario
  • Creation of intellectual property for the company
  • Five jobs created and 60 maintained

Inclusiveness: Nishnawbe Aski Development Fund

• FedNor is supporting Nishnawbe Aski Development Fund to provide targeted support to First Nations within NADF's service area (Treaty #9, Ontario portion of Treaty #5, Treaty #3, and Robinson Superior Treaty 1850) in the following 2 areas:
  • Comprehensive Community Planning (CCP): CCP is a community-driven, holistic process that enables a community to construct a roadmap to sustainability and self-sufficiency by identifying core values, goals, and clearly defined steps forward. NADF was formally recognized in July 2018 with an award from the Canadian Institute of Planners for planning excellence for NADF's comprehensive community planning toolkit, which was developed as a result of a FedNor contribution.
  • Aboriginal Business Incubator: Provide business planning, capacity development and business development support to both individual entrepreneurs and community-owned enterprises.
• Benefits of FedNor funding include:
  • Improved organizational, project development and management capacity within First Nation communities to successfully develop and implement their own planning and community economic development projects;
  • Improved planning and economic development capacity for First Nations communities and people to identify, secure and realize business and/or partnership opportunities;
  • Enhanced business start-up and expansion through enhanced immediate and direct business development supports; and
  • Increased number of Aboriginal youth interested in and pursuing entrepreneurial and business development opportunities.

WD projects of note -February 21, 2020

Issue/question

Can you provide examples of notable projects that WD has supported in western Canada to fulfill its mandate.

Suggested response

• Since 2015, WD's investments in innovation and business development have significantly assisted western Canadian businesses, resulting in:
  • Generating $582 million in sales growth.
  • Increasing export sales by over $2.2 billion.
  • Creating over 11000 jobs.
• Below are examples organized by program:

  Regional economic growth through innovation: business scale-up and productivity

  • Calgary based Attabotics, developer of the world's first 3D robotics warehousing system, received WD funding of $1.3 million to set-up a manufacturing facility and fire-test the warehousing system. This investment created 117 jobs and tens of millions in new sales.
  • Nanalysis Corp is a leading innovator in disruptive portable nuclear magnetic resonance (NMR) analytical instruments. WD approved $2.7 million through the Business Productivity and Scale Up (BSP) program to help Nanalysis further accelerate its growth and increase its export market share. This investment will create 54 jobs and more than double its advanced manufacturing facility in Calgary.

  Regional economic growth through innovation: regional innovation ecosystem

  • WD invested $2.9 million in business acceleration and incubation with the Victoria Innovation + Advanced Technology & Entrepreneurship Council (VIATEC) + Accelerate Okanagan (BC). Expected outcomes of the project include the creation of 450 new jobs, $60M in revenue growth for technology sector companies.

  Strategic partnership initiative

  • In 2019, WD approved $4.6 million of funding for the British Columbia Indigenous Clean Energy Initiative to provide support and capacity-building funds to Indigenous communities working on clean energy. This project has impacted 38 Indigenous communities by investing over $6 million in 43 projects such as establishing the first solar farm that is wholly owned and operated by an Indigenous community (i.e. Tilhqot'in Nation).

  Community economic development and diversification

  • Arctic Gateway Group symbolizes a historic partnership, which combines First Nations and community ownership with private sector leadership. WD's investment of $127 million under the Western Diversification Program ensures the continued operation of the Hudson Bay Rail Line, Hudson Bay Port and Churchill Marine Tank Farm. The restoration of the rail line will create opportunities for economic prosperity for years to come and will once again connect the town of Churchill and northern Manitoba residents with friends and family.

  Economic development initiative

  • Radio Cité – Edmonton's new French language radio station — was made possible with $400,000 in WD funding. Launched October 2018, the radio station created 9 new jobs, builds community capacity and fosters economic development by promoting francophone businesses and organizations.

  Women's enterprise initiative

  • Women's Enterprise Centre of Manitoba: Spearheaded SHEday 2019 in Winnipeg; this event attracted more than 1,700 attendees. SHEday 2019 brought together women from diverse backgrounds and experiences to develop leadership skills and facilitate success for women.

  Community futures

  • BC Wildfires Business Transition Project brought together Community Futures organizations in Williams Lake, Ashcroft, Quesnel and Kamloops to help more than 4000 businesses recovering from the impacts of the wildfires.

Background

• WD was established in 1987 to promote the development and diversification of the economy of western Canada and to advance the interests of the west in national economic policy, program and project development and implementation.
• WD recently engaged with communities across the West about their ideas for the region over the next ten years. WD heard their vision:
  • Prosperous, sustainable businesses and jobs people can rely on.
  • Successful industries that produce less carbon.
  • Connected communities in both urban and rural areas.
  • An expanded knowledge-based economy.
  • Full economic participation of all westerners, including Indigenous Peoples, women, and youth.
• WD's core programs provide funding across rural and urban western Canada to businesses, not-for-profits, and communities. The core programs are:
• Regional Economic Growth through Innovation:
  • Regional Innovation Ecosystems: creating environments that meet business needs for innovation and entrepreneurship.
  • Business Scale-up and Productivity: promoting business growth through commercialization, productivity, and market expansion.
• Community Economic Development and Diversification: assisting organizations and communities in western Canada to fully participate in and benefit from economic opportunities.
• Economic Development Initiative: strengthening official language minority communities in the West.
• Western Canada Business Service Network: helping entrepreneurs start or expand small businesses, including in rural areas and among groups with lower economic participation rates. Network partners include:
  • Canada Business Network;
  • Community Futures;
  • Women's Enterprise Initiative;
  • Francophone Economic Development Organizations;
  • Entrepreneurs with Disabilities Program; and,
  • Indigenous Business Development Services.

ACOA notes

ACOA Atlantic growth strategy results -February 24, 2020

Issue/question

The Atlantic Growth Strategy (AGS) results since its launch in July 2016.

Suggested response

• The Government of Canada and the four Atlantic provinces are working collaboratively to advance common priorities for the long-term benefit of Atlantic Canada's economy.
• Since 2017, over 5,500 immigrants have come to Atlantic Canada via the successful Atlantic Immigration Pilot. By 2021, as many as 540 international students are expected to participate in the Study and Stay initiative.
• The Accelerated Growth Service has helped 94 high-growth firms expand and grow in Atlantic Canada.
• The Atlantic Trade and Investment Growth Strategy has supported more than 30 trade missions with 587 participants, helping to increase Atlantic goods export values by over 28%.
• The Atlantic Growth Strategy has also delivered on a $20M Atlantic Canada Agreement on Tourism, training for 450 tourism industry representatives and support for an Atlantic chapter of the Indigenous Tourism Association of Canada.
• Natural Resources Canada, in collaboration with provinces and electric utilities, is leading a Clean Energy Roadmap for Atlantic Canada.
• Strategic investments have been made in infrastructure, reflecting priorities of provincial governments and including over $153 million through the Post-Secondary Institutions Strategic Investment Fund, and other broadband investments.
• Innovation investments such as the Ocean Supercluster are growing the pan-Atlantic ecosystem by embracing collaboration between government and industry resulting in game-changing technology advancements.

Background

• Results have been achieved under the Strategy by ACOA and ISED working in partnership with provinces and with other federal departments including PCO, AAFC, DFO, ESDC, IRCC, NRCan, ECCC, GAC, INFC, HC, PSPC, and ISC.

ACOA jobs-February 24, 2020

Issue/question

How many jobs have been created and maintained as a result of ACOA investments in Atlantic Canada?

Suggested response

• Since 2015, the employment rate in Atlantic Canada increased by 1.6%.
• ACOA's role is to support businesses to grow and create jobs in Atlantic Canada.
• Since 2015, ACOA has helped businesses create or maintain close to 8,000 jobs in Atlantic Canada.
• This is just one of the meaningful ways that the Government of Canada is supporting a strong middle class in Atlantic Canada.

Background

• The amount of jobs a project will create or maintain is obtained from the Agency's administrative database (QAccess) which is estimated at the time the client application is received. These numbers are the RDA-metrics report numbers.
• The actual amount of jobs created and maintained is only an estimation; the actual amount is not tracked by ACOA.
• REDACTED

ACOA — forestry jobs-February 24, 2020

Issue/question

ACOA's contribution to the Protecting Jobs in Eastern Canada's Forestry Sector initiative, which is led by Natural Resources Canada, REDACTED.

Suggested response

• The sustainable management of our natural resources leads to long-term economic opportunity.
• Protecting forests against the cyclical outbreaks of the spruce budworm is critical to support the Atlantic Canadian forest industry and its jobs.
• The forestry sector is an important part of the Atlantic economy and as such is a continued priority for ACOA.

Background

• Budget 2014 identified $18 million over four years to support initiatives to prevent the spread of spruce budworm in Atlantic Canada and Quebec. The Atlantic Canada Opportunities Agency (ACOA) component has invested $10 million in an initiative entitled "Early Intervention Strategies to Suppress a Spruce Budworm Outbreak".
• Through Budget 2018, the Government proposed to take action alongside Atlantic Provinces and the forest industry, by making available up to $74.75 million over five years, of which $19.9 million is sourced from existing ACOA financial resources, to further prevent the spread of spruce budworm. Federal contributions would come from Natural Resources Canada.

Write-offs of ACOA investments-February 24, 2020

Issue/question

Since January 2019, ACOA has received some media attention regarding investment write-offs.

Suggested response

• Fueling economic development involves inherent risk. In order to help build a strong, innovative Atlantic economy, ACOA makes investments that help new and growing Atlantic Canadian businesses adopt/adapt/pursue innovative technologies, be globally competitive and find new export markets. Typically, these types of investments have been hard to find for Atlantic Canadian businesses from other lenders.
• The vast majority of recipients of ACOA funding meet their contracting obligations. Given ACOA's economic development mandate, the Agency works with funding recipients to help them get back on track wherever possible. However, from time to time, the recovery process is appropriate to help ACOA collect debts owed to the Crown.
• All ACOA assistance is evaluated and managed through a number of rigorous processes focused on tangible results for the Atlantic economy.
• As such, since ACOA's inception in 1987, only six percent of funding agreements were written off, which is not unusual for an economic development agency.

Background

• The business survival rate of ACOA-assisted firms after five years (between 2006 and 2016) was significantly higher than the survival rate of firms not assisted by ACOA by 36 percentage points, with a 70% rate for ACOA-assisted firms and 34% rate for firms not assisted by ACOA.
• The growth in sales of ACOA-assisted firms grew by an average of 2.7% per year, compared to 0.3% for non-assisted firms between 2011-2016.

DEC notes

DEC notes — Initiative for infrastructure development-February 27, 2020

Issue/question

What is the Initiative for infrastructure development from Canada Economic Development for Quebec Regions (CEDQ)?

Suggested response

• On August 27, 2019, Canada Economic Development for Quebec Regions (CEDQ) launched a targeted and temporary initiative to support the dynamism and attractiveness of Quebec's communities.
• The Initiative for the development of regional economic infrastructure has three components: transportation infrastructure, tourism infrastructure and research infrastructure.
• Since the initiative was launched, CEDQ has approved 9 regional economic infrastructure projects, amounting to over $18.8M in authorized assistance and generating investments totalling more than $77.8M.
• We estimate that these nine projects approved under this initiative will create or maintain 115 jobs.

Background

• To contribute to the dynamism and attractiveness of our communities, Canada Economic Development for Quebec Regions (CED) launched, on August 27, 2019, the Initiative for the development of regional economic infrastructure in Quebec, a temporary initiative that contributes to the economic development of communities in the regions of Quebec.
• Through this targeted support, CED fosters investment in infrastructure that contributes to the economic dynamism and attractiveness of communities. The Initiative has three components:
  • Transportation infrastructure: support for projects involving the construction, modernization or expansion of transportation infrastructure (airport, rail, port).
  • Tourism infrastructure: support for projects involving the construction, modernization or expansion of tourism infrastructure likely to improve the attractiveness of regional tourism.
  • Research infrastructure: support for projects involving the acquisition of equipment to foster the development of applied research and technology transfer to business initiatives.
• These components are implemented through CED's regular programs, namely, the Quebec Economic Development Program (QEDP — transportation and tourism) and the Regional Economic Growth through Innovation (REGI — research) program.
• All projects approved to date have been approved under the tourism infrastructure component.
• The Government of Canada's December 2019 Economic and Fiscal Update referred to a transfer of a total of $82.091M from Infrastructure Canada (INFC) to CED.

Project example

• The Société de développement du Mont Sainte-Marguerite (SDMSM) was established in 2017 as an NPO with the objective of operating all the activities of Domaine du Radar, located in Saint-Sylvestre on a former military air surveillance base used during the Cold War. The goal of the project is to strengthen the SDMSM's ability to attract tourists, enhance the Lotbinière regional county municipality's tourism offerings and increase spending by tourists from outside Quebec. The nonrepayable contribution of $818,000 will go toward installing mountain coaster infrastructure, rehabilitating the bunker, creating a multimedia tour, creating a radar museum space, renovating the main complex and other related activities. The site is developing gradually: from its first year in operation to 2018, the number of visitors it welcomed rose from 700 to 60,000.

REGI steel and aluminum initiative -February 21, 2020

Issue/question

What is Canada Economic Development for Quebec Regions (CED) doing to support the steel and aluminum industry?

Suggested response

• Since November 4, 2015, through its regular programs, Canada Economic Development for Quebec Regions has approved 28 projects that support business growth in this sector, for a total of approximately $14 million in authorized assistance, generating a total investment of over $78 million.
• In the spring of 2019, our government designed a targeted, one-time program called the Economic Growth through Innovation Steel and Aluminum Initiative. This initiative aimed to support innovative projects by SMEs operating within the Canadian steel and aluminum supply chain.
• With a new $26.2-million envelope dedicated to the Steel and Aluminum Initiative, Canada Economic Development for Quebec Regions was able to approve 38 projects. The total budget was used to make an investment of $71.8 million and maintain or create 387 jobs.

Background

• Launched on March 11, 2019, the Regional Economic Growth through Innovation Steel and Aluminum Initiative aims to support the innovative projects of SMEs operating within the Canadian steel and aluminum supply chain. These investments are expected to maintain and create jobs as well as promote economic growth through adoption of innovative technologies and processes.
• More specifically, the Initiative will:
  • Assist firms with high growth potential to scale up and expand;
  • Support technology demonstration and the commercialization of new technologies;
  • Encourage the early adoption or adaptation of leading-edge technologies and processes to improve productivity;
  • Increase businesses' capacity to grow.
• For example, Lefebvre Industri-AL Inc. (ELIA) is a family-run SME founded in 2000 whose main activity involves recovering, processing and upgrading various alloy residues for the Alcoa aluminum smelter in Baie-Comeau. CED authorized a repayable financial assistance of $1.7 million of the total cost of $8.4 million to support ELIA's expansion by adding an innovative aluminum dross recovery process. The project consists mainly in expanding the smelter and acquiring processing equipment. The project will completely eliminate the need for landfilling residues by recovering all aluminum recycling by-products and reintroducing them to the Alcoa aluminum smelter production line. In addition, it will significantly limit the creation of greenhouse gases. The number of ELIA employees has grown from 9 to 17 thanks to this project.

Lac-Mégantic — Economic recovery CED-February 21, 2020

Issue/question

What is Canada Economic Development for the Quebec Regions (CED) doing to help Lac-Mégantic following the rail accident?

Suggested response

• Canada Economic Development for the Quebec Regions (CED) was awarded $35M to support the economic recovery of Lac-Mégantic and to help the town, its businesses and organizations recover from the rail accident.
• CED has dedicated a team to this initiative, which is present on site, working closely with local stakeholders and guiding the businesses and the town.
• Since the launch of the initiative in 2013, 30 projects have been approved for a total assistance amount of $26M generating total investments of over $74M. These projects will help create and maintain 133 jobs.

Background

• In the night of July 6, 2013, the derailment of a runaway freight train comprised of 72 tankers filled with light crude oil caused a series of explosions and a fire that killed 47 people and destroyed about 30 buildings in a 2km² area of downtown.
• In 2013, the Government of Canada assigned CED to deliver an initiative to support the economic and commercial recovery of the town of Lac-Mégantic. The initiative has a budget envelope of $35M over seven years (2013–2020) and has three components: Component 1 — Reconstruction of the town ($20M); Component 2 — Projects to support businesses ($10M); and Component 3 — Investment fund ($5M).
• In March 2018, upon the request of the town of Lac-Mégantic, CED's minister authorized the extension of the initiative for three years, until March 31, 2023. The need to extend the initiative is related to some improvement projects and the construction of the town's public infrastructure.
• Decontamination and infrastructure rehabilitation work (sewers, water lines, sidewalks and paving) downtown are complete. The town of LacMégantic is working to attract promoters to develop the rebuilt portions. One institutional building, residential and commercial projects and social housing have been completed to date. The construction of a hotel is planned for spring 2020.
• The largest request made of the government is the construction of a rail bypass to avoid having trains pass through downtown. Through Transport Canada, the Government of Canada announced in 2018 that it would fund 60% of the construction costs.

The Government of Canada (CED and Transport Canada) made a financial contribution of $870K to fund a feasibility study for the rail bypass.

Lac-Mégantic — rail bypass — CED-25 February 2020

Issue/question

Why is a $450,000 transfer from Transport Canada to Canada Economic Development for Quebec Regions (CED) required for the Lac-Mégantic rail bypass?

Suggested response

• Almost 7 years later, we all remember the Lac-Mégantic tragedy, and our thoughts are with the loved ones of the victims and all those who were affected from near or far.
• The construction of a railway bypass to avoid the passage of trains in its downtown area is a major project for the economic recovery of the town of Lac-Mégantic, hit by a railway tragedy in 2013.
• Through Transport Canada, the Government of Canada announced in 2018 that it would fund 60% of the construction costs of this bypass.

Asbestos -February 21, 2020

Issue/question

What has Canada Economic Development for Quebec Regions (CED) done to support the development and diversification of communities reliant on chrysotile?

Suggested response

• In June 2013, Canada Economic Development for Quebec Regions (CED) launched the Canadian Initiative for the Economic Diversification of Communities Reliant on Chrysotile, which has a $50M budget for the RCMs des Sources and des Appalaches.
• To date, this entire budget has been committed and has helped support 65 projects generating over $147M in investments in the region. These projects have created or maintained 481 jobs.
• The Initiative is set to end on March 31, 2020. Diversification efforts have been successful, and CED will continue to support these communities through its regular programs.
• Community stakeholders have repeatedly expressed their satisfaction with the growth-generating projects funded under the Initiative.

Background

• Following cancellation by the Government of Quebec of a $58M loan for relaunch of the Jeffrey Mine in Asbestos, the Government of Canada announced in 2012 that it would no longer oppose the inclusion of chrysotile on the list of products subject to prior consent under the Rotterdam Convention.
• In parallel, the Government of Canada developed, and mandated CED to ensure delivery of, the Canadian Initiative for the Economic Diversification of Communities Reliant on Chrysotile (the Initiative), which was intended to provide financial support for the economic transition of communities in the Des Appalaches and Des Sources regional county municipalities affected by the end of the chrysotile industry. The Initiative has a budget of $50M over seven years. It was launched in June 2013 and will end on March 31, 2020.
• The Initiative met its objective of supporting the transition of communities affected by the foreseeable end of the chrysotile industry in order to foster economic growth.

International Centre of Expertise for the Advancement of Artificial Intelligence (AI) in Montréal — February 24, 2020

Issue/question

Why transfer $10M from the Strategic Innovation Fund of Innovation, Science and Economic Development Canada (ISDEC) to Canada Economic Development for Quebec Regions (CED) to support a centre of expertise for the advancement of artificial intelligence?

Suggested response

• In collaboration with industry stakeholders, the scientific community and civil society, the International Centre of Expertise for the Advancement of Artificial Intelligence (AI) in Montréal will contribute to the responsible development of artificial intelligence based on the core principles of ethics, human rights, inclusion, diversity, innovation and economic growth.
• The Centre will generate significant benefits for Canada by supporting our global leadership in AI and promoting our competitive advantage in the field of digital technology.
• The federal government has committed to investing up to $10 million over five years to support the Centre's activities once it begins operations through the help of CED.
• Because of its programs and experience with similar projects, Canada Economic Development for Quebec Regions is the best vehicle for allocating this funding to the Centre.

Background

• On September 6, 2019, the Minister of Innovation, Science and Economic Development and Quebec's Minister of International Relations and La Francophonie announced a government investment of $15 million over five years for the establishment of the International Centre for Expertise, including up to $10 million from the Government of Canada and $5 million (previously announced) from the Government of Quebec.
• Minister Morneau's Economic and Fiscal Update, released on December 16, 2019, confirmed a $9.8M transfer over five years (2019-2020 to 2023-2024) from ISDEC to CED. This amount, allocated under the Quebec Economic Development Program (QEDP), will be used to fund the Centre's activities once it begins operations.
• The establishment of the Centre was discussed for more than a year by Canada, France and other international partners, as part of the Global Partnership in Artificial Intelligence (GPAI) discussions. The GPAI was originally announced by Prime Minister Trudeau and President Macron in June 2018. The decision to establish the Centre in Montréal was made following further discussions at the G7 Summit in the summer of 2019.
• The Government of Quebec will have a special role as a key partner in the development of responsibly used AI as part of Canada's participation in the GPAI.
• Under the umbrella of the GPAI, the Centre will be an independent organization working in collaboration with industry, the scientific community and civil society, as well as governments and other international organizations. Its key mandates will be related to the implementation of GPAI initiatives, for which the Centre will provide service delivery. The Centre will be expected to:
  • contribute, through analysis and research, to the responsible development of AI based on the core principles of ethics, human rights, inclusion, diversity, innovation and economic growth;
  • organize in Montréal every two years, alternating with Paris, an international forum on progress achieved in GPAI activities; and
  • analyze measures aimed at strengthening national capacity to market and adopt AI technologies.
• By locating the Centre in Montréal, the GPAI wishes to access Montréal's and Canada's recognized expertise in AI and Canada's leadership in the global debate on ethical AI, particularly the December 2018 "Montréal Declaration for a Responsible Development of Artificial Intelligence". The Centre will benefit from AI ecosystems and national and provincial initiatives, such as the Government of Canada Advisory Council on AI, the SCALE-AI Supercluster in Montréal and the International Observatory on the Societal Impacts of AI and Digital Technologies (funded by Quebec).

WD notes

WD notes — BC forestry industry-February 27, 2020

Issue/question

What is the Government doing to help the businesses, workers and communities impacted by the downturn in British Columbia's forestry sector?

Suggested response

• Our government — and in particular my colleague, the Honourable Seamus O'Regan, Minister of Natural Resources — is keenly aware of the challenges facing the forestry sector in British Columbia.
• The forestry sector is one of Canada's great rural economic engines, with a GDP of more than $25 billion. It provides 211,000 jobs across the country.
• The sector is facing the cumulative effects of a number of environmental, market, and production challenges. In British Columbia, the situation is particularly acute. U.S. duties on softwood, the mountain pine beetle infestation, and record-severe wildfire seasons in 2017 and 2018 have put significant pressure on producers.
• Our Government is committed to supporting the forest sector and the workers and communities who rely on it.
• In 2017, the Government of Canada introduced the $867-million Softwood Lumber Action Plan in response to the challenges that companies and workers faced from the United States' imposition of duties on Canadian softwood lumber.
• This suite of programming included an array of worker and industry supports.
• Further, in response to the record-severe wildfire seasons BC experienced in 2017 and 2018, Western Economic Diversification provided over $1.8 million to the BC Wildfire Business Transition Project.

Background

Impacts of production curtailments and mill closures in the BC forestry industry — Canada and BC's forestry sector

• In 2018, the Canadian forest sector's financial performance improved for the seventh year in a row, benefiting from both high commodity prices for the majority of the year and strong demand for Canada's major forest products in the U.S. and China.
• However, the deterioration of prices in late 2018 and into 2019 has exposed a number of structural issues threatening the competitiveness of the Canadian forest sector, including the unresolved softwood lumber trade dispute with the U.S., fibre supply shortages, and issues with natural disturbances like the increasing frequency and severity of wildland fires and insect infestations.
• Canada has the third largest forest area in the world (about 9% of the world's forest cover). Forests cover roughly 350 million hectares of Canada — close to 40% of Canada's land base.
• Canada's forest sector has a GDP of $25.8 billion and provides 211,000 jobs across the country. It is also one of Canada's largest employers of Indigenous peoples (>11,000 people).
• For 300 communities across Canada, the forest sector is a major contributor of jobs and income. These communities are often rural and far from urban areas with few economic alternatives. These communities are primarily located in Quebec (44%), BC (32%), New Brunswick (11%), and Ontario (9%).
• The forest sector accounts for 7% of Canada's total exports, and is one of Canada's highest positive contributors to Canada's balance of trade. Canada exported over $34.6 billion in forest products in 2018 — up 7.6% from 2017.
• Today's prices for softwood lumber are back to more historical levels, prices for pulp are nearing a cyclical low, and prices for paper are generally weak.
• These lower prices are compounding a number of structural challenges, including a declining fibre supply and increasing fibre costs owing to wildfires and insect infestations, a lack of skilled labour, growing global protectionism, poor rail service, changing consumer demand away from newsprint, and negative public perception of the forestry sector's sustainability.
• The situation is particularly acute in BC, which as of November 2019 had 42 mills in active (current and planned) curtailment or closure status. The curtailments and closures have impacted approximately 6,600 workers across 31 BC communities.
• Officials from Western Economic Diversification Canada, along with officials from the Province of British Columbia, are engaged in discussions with a task force of BC communities affected by the current downturn on how government might be able to help reinforce community resilience in the face of these challenges.

WD programming and investment results-February 21, 2020

Issue/question

WD Programming and Investment Results

Suggested response

• WD's programs provide funding across rural and urban western Canada to businesses, not-for-profits and communities.
• Since November 2015, WD has supported businesses in an effort to increase revenues and make productivity improvements. WD funded projects under innovation and business growth programs reported:
  • the creation of over 11,000 jobs
  • $2.2B in export sales
  • 582 million in business sales growth from commercialization.
• WD provided roughly $40M to partner organizations to deliver services and supports to individuals and communities across the West. Including business information and advisory services to SMEs, loans to SMEs and community economic development planning a supports.
• In 2019 WD launched an initiative to help grow and modernize sectors heavily dependent on steel and aluminum. $24.99M is available to support projects that increase competitiveness in this sector. The bottom line is that WD's new investments will support business growth in western Canada and help create new jobs.
• WD is there for communities in times of crisis. In 2016-17, WD administered over $7 million to help the stability of the construction industry, and to help middle class families in the Regional Municipality of Wood Buffalo rebuild following the devastating wildfires.

Background

WD's core programs are:

• Regional Economic Growth through Innovation:
  • Regional Innovation Ecosystems: creating environment that meet business needs for innovation and entrepreneurship.
  • Business Scale-up and Productivity: promoting business growth through commercialization, productivity, and market expansion.
• Community Economic Development and Diversification: assisting organizations and communities in western Canada to fully participate in and benefit from economic opportunities.
• Economic Development Initiative: strengthening the official language minority communities in the West.
• Western Canada Business Service Network: helping entrepreneurs start or expand small businesses.
• WD is advancing its priority of promoting an inclusive economy. Toward that goal, WD has invested 35 million in 130 projects targeted to support women. Also in support of inclusive economic growth, WD has invested 67.4 million in 107 Indigenous projects.
• WD is at the forefront of transitioning the West to a more knowledge-based economy. This includes focusing on emerging sectors with high potential, such as clean technology. Since November 2015, WD has invested 131.4M in 147clean technology projects.

Other community initiatives and results include:

• Restoring the Hudson Bay rail line to Churchill. This rail line facilitated the affordable supply of food and fuel to residents of 41 communities in Northern Manitoba and seven communities in Nunavut.
• WD delivered $7.4 million to assist 187 western Canadian drywall contractors and builders, and 451 residents of the Regional Municipality of Wood Buffalo whose homes were damaged or destroyed by the 2016 wildfires.
• WD continues to support the Indigenous Business Development Services, the Entrepreneurs with Disabilities Program (EDP) and Francophone Economic Development Organizations (FEDOs) in western Canada. This programming enhances the ability of Indigenous Peoples, Francophones, rural clients and others to start, grow and expand their businesses.
• WD provides investment loans to Western Canadian businesses through its Community Futures Program and Women's Enterprise Initiative. In 2018-19 WEI provided 91 loans to women-owned businesses worth $7.1 million. These loans in turn leveraged an additional $15.5 million from other funding sources. This initiative served almost 8,000 clients over the year, almost 300 of whom self-identified as Indigenous.
• WD also supports rural and remote areas, by providing them access to business advice, and support to diversify their economy away from the resource sectors. This grassroots approach to economic development through the Community Futures (CF) program has consistently yielded positive results, with WD-assisted CF firms experiencing higher employment and sales growth compared to similar firms that did not receive WD assistance.

Dynamic in Western Canada-February 21, 2020

Issue/question

How can Western Economic Diversification (WD) help address tensions in the West?

Suggested response

• Though Canada's economy has been doing well, parts of the western economy are struggling.
• Many businesses and families are feeling anxious about the future.
• We have committed to being more deliberate about reaching out to western Canadians and taking action.
• Renewed partnerships are needed to regain the trust of western Canadians.
• With 30 years of experience, WD has the expertise and relationships that are key to seizing opportunities and tackling challenges across western Canada.
• Budget 2019 invested $100 million in new funding over three years for WD to invest in innovative western Canadian businesses and organizations.
• WD will continue to play an important role in working with western Canadians to develop solutions to the West's economic challenges.

Background

• Lower commodity prices, reliance on trade with the US, trade actions by other countries (e.g., China's and India's continuing restrictions on Canadian canola and pulse crops), and transportation bottlenecks have hurt western Canadian businesses and communities.
• Economic recovery in the wake of falling commodity prices has been slow and uneven across the four western provinces. Investment in western Canada has dropped and is not recovering. Over the last 5 years, capital expenditures in the West have fallen by nearly $40 billion.[^{Footnote 1}]
• Many western Canadians are still feeling the effects of a slower economy. Since 2015, the West's share of regular Employment Insurance beneficiaries across Canada has been higher than at any other time in the last twenty years.[^{Footnote 2}]
• Western Canadians who are working are seeing their earnings growth fall behind other parts of Canada.[^{Footnote 3}]
• Western Canadians' overall dissatisfaction has risen over the perceived lack of influence on national decisions.
• Some western Canadians feel they are not getting their fair share and are ignored by the federal government.
• In 2017, federal revenues per capita exceeded expenditures in only four provinces: British Columbia, Alberta, Saskatchewan and Ontario. The difference was greatest in Alberta, where revenues collected by the federal government were nearly twice the level of federal expenditures in the province.[^{Footnote 4}]
• REDACTED
• Regional Development Agencies are the eyes and ears of the federal government in regions REDACTED.
• By enhancing coordination between federal departments and advocating for regionally responsive program design, WD helps the Government of Canada deliver integrated policies and programs at the community level.
• WD has a role in ensuring that the impact of federal policies in the West are understood and considered in federal policymaking.
• WD can also play a supporting role in the deployment of technologies to reduce emissions, capture carbon, and assist the western agriculture sector to become more efficient and lower costs.

Western Canada economy and environment-February 21, 2020

Issue/question

The current state of Western Canada's economy and environment.

Suggested response

• The West is an important contributor to the Canadian economy. In general, western Canada continues to have a strong economic output (about $794 billion in nominal GDP) for its relatively small population of 11.1 million.
• There are significant economic differences between each of the four western provinces, but all rely heavily on natural resource development and the export of raw or lightly processed materials.
• This government is committed to working with industry, the provinces, municipalities, Indigenous communities and other key partners to support sustainable economic growth in western Canada.
• Climate change is a critically important issue to our government and bold action is required to avoid the worst impacts and meet our Paris agreement commitments.
• Western Canada's natural resources industries are making important strides in producing cleaner and more efficient products and their efforts should be recognized and welcomed.

Background

Economic realities

• The West is an important contributor to the Canadian economy. In general western Canada continues to have a strong economic output (about $794 billion in nominal GDP) for its relatively small population (11.1 million).
• This makes it the 22nd largest economy in the world, even as its population ranks 81st.
• There are significant economic differences between each of the four western provinces, but all rely heavily on natural resource development and the export of raw or lightly processed materials.
• Market access and investor confidence is a significant challenge. Foreign firms have divested more than $30 billion in Canadian energy assets in the last three years.
• 70% of western exports by value (nearly $150 billion) are destined for the US. 60% of this export value is related to oil and gas extraction.
• The Port of Vancouver is Canada's largest port and third largest in North America. Despite its strategic location and capacity, Asia is a relatively small market for western Canadian products, with less than 15% of western exports destined for three main markets: China, South Korea and Japan.
• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to create significant gains for western Canada. Asia's growing middle class is driving demand for quality agriculture and food products.
• Since 2015, Alberta and Saskatchewan have been experiencing a prolonged economic downturn as a result of low oil and gas prices.
• The downturn has resulted in unemployment rates higher than the national average (in excess of 7%), slowing rates of urban growth, increasing crime and social issues, as well as a renewed sense of "western alienation".
• British Columbia has seen steady economic growth over the same period, particularly along the coast, due to greater economic diversification, strong real-estate investment and a growing technology sector. The interior of the province is struggling economically due to ongoing challenges in the forest sector.
• Manitoba's economy, which is comparatively small but highly diversified, has remained relatively stable.

Environmental realties

• Without further action, Canada will not be able to meet its current target to reduce emissions by 30% below 2005 levels by 2030. This is due to Canada's role as a major producer, consumer and exporter of fossil fuel energy.
• The cost of Climate Change are becoming increasing apparent, particularly in western Canada.
• Over the last eight years, four out of the five most expensive natural disasters in Canada's history, based on insured losses, have occurred in western Canada.
• Water insecurity is also a looming issue that threatens community growth and agriculture development, particularly in the southern prairies.
• Environmental issues are a major point of tension throughout western Canada. This has strained interjurisdictional relations, decreasing investor confidence in the region and complicated the path to reconciliation with Indigenous Peoples. For example:
  • Recent protest in solidarity with the Wet'suwet'en hereditary Chiefs' have blocked rail transport and halted construction on the Coastal GasLink project, and;
  • The ongoing legal and political conflict between British Columbia and Alberta over the Transmountain Pipeline project.
• Significant progress is being made across western Canada, and in all major sectors, to reduce emissions and to improve environmental stewardship.
  • British Columbia and Alberta were among the first jurisdictions in the world to have regulations for flaring and venting from upstream facilities. In Alberta, these regulations have cut the volume of natural gas flared by 80% from 1996 to 2010, reducing emissions by more than eight million tonnes.
  • Individual companies are actively setting emissions reduction targets. Suncor is seeking to reduce its emissions by 30% compared to 2014 by 2030, and Canadian Natural Resources Ltd. and Cenovus Energy Inc. recently announced long-term goals to achieve net-zero carbon emissions from its oil sands operations.
• Despite this progress in reducing industrial emissions, it is critical that western Canada is able to transition more quickly to a lower-carbon and environmentally more sustainable economy.

Western growth strategy results -February 21, 2020

Issue/question

What results have been achieved in the nine months since the Western Canada Growth strategy was announced?

Suggested response

• The Western Canada Growth Strategy, a "made in the West solution", is less than a year old.
• The strategy is helping to coordinate federal government contributions to the economic growth of western Canada. My officials are working with internal and external stakeholders to support the Government's overall economic agenda in a manner that responds to western Canadian needs.
• In fall 2018, Western Economic Diversification Canada (WD) launched a public engagement to hear from western Canadians about their vision for economic growth.
• Responses from citizens, thought-leaders and businesses reflected optimism about the future of the western Canadian economy, and an interest in working with all orders of government, industry, and other stakeholders to achieve long-term growth and economic prosperity in western Canada.
• Recently, I met with the Mayors on the Western Economic Solution Task Force of the Federation of Canadian Municipalities who noted that the Strategy lines up with their priorities and they look forward to new Federal opportunities to support municipalities in the West.
• The Strategy identifies key priorities in trade, skills, communities and diversification that will frame a whole-of-government approach to support economic growth in the West.

Background

• WCGS Government of Canada Co-leads include WD, ISED, NRCan, AAF, Global Affairs, Transport Canada, ESDC, IRCC, INFRA and CRED.
• Diversification: To remain competitive, our resource sectors should continue to develop and deploy new technologies and increase their environmental stewardship.
• Trade: Greater export opportunities will enable western Canadian firms to look beyond the U.S. and take full advantage of Cana's world -class set of trade agreements and global reputation.
• Skills: To achieve a shared vision of a stronger western Canada, we must foster talent for the new economy strengthen education and skills for tomorrow and employ the abilities of Indigenous peoples, women, youth and immigrants.
• Communities: Cities, towns, and rural communities across the West need to be connected. For example, broadband access and digital resources will support smart cities, help deliver virtual services, and support commerce all across the West. Infrastructure and partnerships will connect goods and people, and support innovation.
• Broadband: Identified new opportunities to support provincial and municipal high-speed connectivity initiatives such as urban testbeds allowing emerging businesses to test new products in real-time and place or efforts to build rural capacity and explore service delivery models so farmers and firefighters can target their efforts and reduce waste.

Pulse crops-February 21, 2020

Issue/question

What is the impact of India's tariffs on Western Canada's pulse crop industry?

Suggested response

• Western Canada is a world leader in the production and exports of pulse crops, with exports totaling $2.6B in 2019. Current trade disputes that are harming our pulse producers.
• While we work through the right channels to resume the flow of goods to market, we are taking steps to help our producers become more innovative and competitive to leverage new markets.
• Since 2015, WD has supported eight pulse crop related projects. These investments have totaled $11.6M across Saskatchewan and Manitoba.
• The Protein Industries Canada (PIC) Supercluster is supporting the establishment of a canola and pea protein processing facility near Winnipeg with a $9.5M contribution.

Background

Pulse crop background information in Western Canada

• Western Canada produces the vast majority of pulse crops in Canada, which consist predominantly of lentils, chickpeas, and dry peas. For these pulse crops, Western Canada produced a combined 6.6M metric tons across 8.3M acres, for a combined export value of $2.6B in 2019. The export value of these pulse crops has declined from $3.8B in 2015.

Harvested Area across Western Canada, in thousand acres

	2015	2017	2019
Lentils	4,028	4,383	3,673
Dry Peas	3,692	4,058	4,210
Chickpeas	115	160	385
Totals	7,835	8,601	8,268

Pulse crop export value in Saskatchewan, Manitoba, and Alberta

• In November 2018, India announced a 50% tariff on dry pea imports and a 60% tariff on chickpeas, on top of an existing 33% tariff for lentils. Further, India has intermittently imposed a requirement that all pulse shipments be treated with methyl bromide fumigation, even though the product is banned in Canada. Since 2015, the value of Western Canada's pulse crop exports to India have declined from $1.5B to $400M in 2019.
• More than 85% of Canada's pulse production is exported to the world, India is the main importer for Canadian lentils. China is the biggest importer of Canadian peas. India is facing current crop failures and low production due to a heavy monsoon season, Canadian farmers are optimistic for increased demand of pulses. China is currently buying 80% to 85% percent of Canadian peas, and their purchases are at a record level.
• Canada has potential to work with other countries besides India, such as Nepal and Bangladesh to establish relationships and increase exports.

Value of Exports in Saskatchewan, Alberta, and Manitoba, in thousands of CDN dollars

	2015	2016	2017	2018	2019
China	315M	436M	431M	709M	695M
India	1.5B	1.13B	928M	152M	414M
Bangladesh	246M	262M	130M	121M	309M
Sub-total	2.07B	1.83B	1.49B	982M	1.42B
Others	1.74B	1.86B	1.53B	1.27B	1.19B
Total All Countries	3.82B	3.96B	3.01B	2.25B	2.61B

WD's support for pulse crop related projects since 2015.

• Since 2015, WD has supported eight pulse crop related projects. These investments have totalled $11.6M across Saskatchewan and Manitoba.
• Verdient Foods Inc.
  2019.07.16 — BSP — $2,145,000 — Verdient will upgrade its pea processing facility from animal to human grade and scale up production capacity to expand product lines to include other pulse crops
• Saskatchewan Food Industry Development Centre Inc.
  2017-12-15 — WDP — $300,000 — develop commercial usages for pulse starch by-products
  2017.08.16 — WDP — $117,500 — develop and energy and water efficient methods to isolate proteins from peas and alfalfa
  2019.02.27 — RIE Program Stream — $3,500,000 — Support entrepreneurs to develop, modify and manufacture plant based ingredients
• Three Farmers — Saskatoon, Saskatchewan
  2019.03.04 — Women Entrepreneurship Strategy — $100,000 — establish international supply chain system for chickpea and lentil snacks
  2019.07.16 — BSP — $1,836,000 — implement process efficiencies and scale-up production for pulse snacks market expansion
• Pulse Crops (Canada) Association — Winnipeg, Manitoba
  2015.05.28 — WDP — $3,500,000 — support exports of pulse crops to consumers and industry with targeting marketing initiative
• Prairie Fava Ltd. – Brandon, Manitoba
  2019.03.04 — Women's Entrepreneurship Strategy — $100,000 — expand into the US market through scale up and product commercialization activities.

Trade in the Prairies-February 21, 2020

Issue/question

Rail disruptions and international trade disputes are affecting exporters in the Prairie Provinces.

Suggested response

• Trade is vital to the Prairie Provinces. The region leads the country in exports of agricultural products and natural resources.
• International trade disputes such as the tariff on Canadian pulses crops and China's trade action on canola seed, significantly impacts the Prairie Provinces.
• Practically all of Canada's canola exports come from the Prairie Provinces, and Saskatchewan is Canada's largest exporter of peas and lentils.
• Efficient rail transportation is fundamental for Prairie Provinces to have market access for their exports.
• We recognize that recent rail disruptions are creating shipping delays for prairie grain farmers.
• Our Government is taking action to address the concerns of land rights and the resumption of trade flows.

Agriculture — carbon pricing-February 21, 2020

Issue/question

Several associations representing agri-food producers have requested relief or exemptions from the carbon pollution pricing system for fuels used to dry grains and oilseeds.

Suggested response

• Agricultural producers make significant contributions to Canada's economy, and to the health and well-being of Canadians.
• I understand that this year has been particularly challenging for many producers;
• global trade challenges,
• poor weather conditions.
• Carbon pollution pricing is an important part of Canada's plan to transition to a cleaner and more innovative economy that reduces emissions and protects the environment.
• WD is creating a new technology and commercial support fund to help producers get technology and infrastructure they need to scale up and create more jobs.

Background

• Grain drying is considered a normal farm operation expense and is used to lower crop moisture content to protect its quality. Grain dryers usually use natural gas, propane, or electricity as their heating fuel. Total grain drying expenses incurred by a farm will vary from harvest to harvest, depending on the type and variety of crop, as well as the weather over the course of the growing and harvest season.
• Farmers already receive some exemptions under the carbon pollution pricing system, including for gasoline and diesel fuel used for machinery and production operations. However, carbon costs for grain drying are not exempted under the federal fuel charge, as they were not considered a significant production cost for most operations.
• Agriculture and Agri-Food Canada (AAFC) has received data from Alberta, the Agricultural Producers Association of Saskatchewan (APAS), the Keystone Agricultural Producers (KAP), and the Grain Farmers of Ontario (GFO) and is reviewing this information. AAFC has engaged with the provincial governments of Alberta, Saskatchewan, Manitoba and Ontario.
• The carbon pollution pricing system is being implemented at a time when agri-food producers are facing several other significant challenges that are affecting their businesses, such as a decrease in export activity due to global trade issues, and restrictions in domestic shipping.
• Agricultural associations and provincial Premiers, including Jason Kenney (Alberta), Scott Moe (Saskatchewan), and Brian Pallister (Manitoba) have raised concerns about carbon pollution pricing being applied to fuels used for grain drying operations.
• Recent media coverage has highlighted unusually wet harvest conditions in 2019 and higher-than-anticipated costs for many prairie producers who rely heavily on grain drying. Some groups are requesting exemptions, and others have requested that producers receive rebates for carbon costs incurred while drying their crops in 2019.
• In January, Manitoba Premier Brian Pallister signalled to the Prime Minister that he is ready to re-open negotiations on a provincial carbon tax. At Manitoba Ag Days (January 21, 2020) the Premier told producers that grain-drying would be exempt from a Manitoba carbon tax. Farm groups were pleased with this announcement. This exemption would translate to an estimated $1.7 million savings for corn producers.

Industry notes

Industry notes — Steel and aluminum-February 27, 2020

Issue/question

How is the Government of Canada supporting Canada's steel and aluminum industry?

Suggested response

• Last year, the Government took decisive action to support the Canadian steel and aluminum industries through unprecedented circumstances.
• Over $2 billion was dedicated to support Canadian steel and aluminum businesses.
• This included $250 million through the Strategic Innovation Fund so producers could make innovation investments and better integrate Canadian product into domestic supply chains.
• Ten companies received investments through this envelope, supporting nearly $1.6 billion in capital expenditures and more than 18,000 jobs across the country.
• Funding was also provided through the Regional Economic Growth through Innovation program directed at Canadian small and medium enterprises that rely on steel and aluminum as inputs.
• Since 2019, the Regional Development Agencies have provided $100 million in non-repayable support to 186 small and medium enterprises across the country.

Supplementary question

• Is CUSMA a good deal for Canadian steel and aluminum producers:
  • CUSMA, for the first time, will require automotive manufacturers to source 70 percent of their steel and aluminum components from within North America. This provides Canadian steel and aluminum producers unprecedented preferential access to the North American automotive market.
  • Canadian aluminum producers are world class and are already highly competitive in the North American market. The Government is confident that CUSMA will ensure the sector's continued success.
  • The Government of Canada fought hard to regain access to the United States market earlier this year — securing preferential access for Canadian aluminum producers and their workers.
  • It has also made an historic $145 million investment to support innovation and competitiveness in the sector since 2018 — including support for the development of game changing zero-carbon aluminum smelting technology.

Background

• In 2018, the U.S. used Section 232 of the Trade Expansion Act to impose a 25 percent tariff on imported steel and a 10 percent tariff on aluminum.
• On May 17, 2019, the U.S. announced that it would eliminate tariffs on Canadian aluminum. To maintain tariff free access to each other's market, both countries have agreed to create mechanisms to manage potential surges in steel and aluminum imports.

Federal support for steel and aluminum industries ($2b)

• $800 million the through Business Development Bank of Canada (BDC) - as of December 31, 2019, 1,151 loans representing $666.4 million in commitments have been provided;
• $900 million through Export Development Canada (EDC) over 2 years for commercial financing — as of November 30, 2019, $266 million in financing has been provided to over 32 clients;
• $250 million in new support through the Strategic Innovation Fund (SIF) for innovation and growth, and to better integrate Canadian steel and aluminum in domestic supply chains — as of October 31, 2019, 10 agreements have been finalized representing approximately $260 million in federal contributions;
• $50 million over five years through Global Affairs Canada for export and market diversification;
• $25 million over 4 years to extend work-sharing agreements from 38 to 76 weeks;
• $50 million over 2 years for Labour Market Development Agreements to support displaced workers; and
• $100 million in non-repayable contributions to ensure the competitiveness of small- and medium-sized users within the steel and aluminum supply chain.

Steel industry

• Canada's steel industry employed over 23,000 Canadians and contributed $4.2 billion to Canada's GDP in 2018.
• It supplies Canada's manufacturing, energy, automotive and construction industries. Canada-U.S. steel trade is balanced and complementary, with about $7 billion crossing the border in each direction in 2017.
• Canada's steel industry is part of an integrated North American market that relies on trade and product specialization.
• As of October 2019, weakening demand and persistent overcapacity continue to put downward pressure on steel prices.

Aluminum industry

• Aluminum production in Canada employs approximately 10,000 workers and is heavily concentrated in the province of Quebec. The only aluminum production facility outside Quebec is a smelter in Kitimat, British Columbia.
• In 2018, Canada ranked fourth globally in aluminum production, behind only China, Russia and India.
• Given its dominant position in North America, the industry consistently sends more than 80 percent of total exports to the U.S. year-over-year. In 2018, Canada's aluminum industry exported 81 percent (2.5 mmt) of its total exports to the U.S.
• Beyond the support provided through the SIF steel and aluminum stream, the Government of Canada provided $120 million in funding to Rio Tinto and ALCOA for the ELYSIS project in 2018. This initiative is set to revolutionize aluminum production and advance the development of zero-carbon aluminum smelting technology.

Regional economic growth through innovation

• In March 2019, the Government of Canada launched the Regional Economic Growth through Innovation Steel and Aluminum Initiative (REGI) in response to escalating commodity prices and increasing financial and competitive pressures significantly impacting Canadian SME users.
• The initiative was designed to provide $100 million in non-repayable contributions to Canadian SME downstream users of steel and aluminum, for investments in innovative projects that will enhance productivity and competitiveness. Of this fund, $33.9 million has been publicly announced as of December 31, 2019.
• In total, the Regional Development Agencies (RDAs) received 827 project proposals valued at $1.4 billion, with requests for funding totalling nearly $500 million.

Pyrrhotite (SRS, NRC)-February 20, 2020

Issue/question

What is the federal government doing to help Canadians impacted by pyrrhotite in their homes?

Suggested response

• The Government of Canada takes seriously the concerns of families whose homes have been affected by pyrrhotite damage to concrete.
• That's why the Government of Canada through the Canada Mortgage and Housing Corporation (CMHC), has partnered with the Quebec government to provide $30 million dollars to impacted homeowners.
• The Government of Canada has also dedicated nearly five million dollars for researchers focused on preventing the problems caused by pyrrhotite damage to concrete.
• Their work will provide science-based knowledge for new construction standards to protect the health and safety of all Canadians.

Background

• Pyrrhotite is a mineral present in some aggregates, and aggregates are one component of concrete.
• Over the last few years, many homeowners in the Mauricie area of Québec with houses built between 1996 and 2008 have suffered significant damage to their foundations due to pyrrhotite in the concrete. Swelling of these minerals, when exposed to water, has caused significant and expensive damage.
• The Régie du bâtiment du Québec has been involved and active in the problem of deterioration of concrete used in housing foundations due to the presence of iron sulphur in the form of pyrrhotite in the stone.
• In 2014, a Quebec Superior Court ruled SNC-Lavalin was 70 percent responsible for the $196 million dollars worth of damage caused by pyrrhotite because one of its geologists produced a report stating the concrete was fit for use. The case is currently under appeal and a ruling is expected in early 2020. More recently, a group of homeowners has been in the media asking for money to be set aside for them from a $280 million penalty has been ordered to pay in December 2019 for fraudulent business dealings in Libya.

Pyrrhotite (NRC)-February 24, 2020

Issue/question

Federal government response to pyrrhotite in construction

• Damage from pyrrhotite is estimated to have caused $400 million dollars to date in the Trois-Rivières region of Québec.
• Pyrrhotite is a mineral (iron sulfide) that is naturally found in some aggregates, which are used in concrete. When exposed to certain environmental conditions, pyrrhotite can cause cracking in concrete.
• The National Research Council (NRC) is conducting a research project, in partnership with Université Laval, to update standards to avoid problems related to pyrrhotite in concrete aggregate in the future.

Suggested response

• The Government of Canada takes seriously the concerns of families whose homes have been affected by pyrrhotite damage to concrete.
• That's why we, through the Canada Mortgage and Housing Corporation (CMHC), have partnered with the Quebec government to provide $30 million dollars to homeowners impacted by the problem.
• And to avoid this issue in the future, we have dedicated almost $5 million dollars for researchers to update a standard to avoid problems caused by pyrrhotite damage to concrete in the future.

Background

• Homeowners in the Mauricie area of Québec with houses built between 1996 and 2008 have suffered significant damage to their foundations due to pyrrhotite in the aggregate (crushed stone) used in the concrete. When exposed to the right environmental conditions, these minerals react and expand resulting in significant and expensive damage.
• The Régie du bâtiment du Québec is an active partner in research projects aiming to find a solution to the pyrrhotite problem.
• Recently, a group of homeowners has been in the media asking for money to be set aside for them from a $280 million penalty SNC-Lavalin has been ordered to pay in December 2019 for fraudulent business dealings in Libya.
• In 2014, a Quebec Superior Court ruled SNC-Lavalin was 70 percent responsible for the damage caused by pyrrhotite because one of its geologists produced a report stating the concrete was fit for use.
• Media reports indicate that a working group has been established, comprised of homeowners, provincial and federal elected officials.

Announcement in December 2018

• In December 2018, the Government of Québec, National Research Council Canada and the Université Laval created a research chair with the purpose to eliminate the problems caused by pyrrhotite damage to concrete. The project, valued at $4.9 million, will run for four years.
• The project will update standard for the CSA Group to set acceptable limits for the content of various sulphides, including pyrrhotite, in Canadian concrete aggregates.
• It will also enable the development of test methods for detecting potentially hazardous sulphide levels in concrete aggregates; and identify preventative measures for the safe use of sulphur concrete aggregates.
• The project is focused on preventing pyrrhotite issues in new construction.
• The NRC is not involved matters related to compensation of existing home owners.

National building code

• To keep pace with changes, and to ensure that the latest innovations and applications are applied safely by the construction industry, a new edition of the National Building Code is published and distributed by the NRC every five years.
• The code references the existing CSA Group standard on concrete which provides guidance on the suitability of aggregate that contains sulphides, such as pyrrhotite. The above-mentioned work will update this standard.
• CSA Group standard, A23.1/A23.2 titled "Concrete materials and methods of concrete construction/Test methods and standard practices for concrete," provides requirements for materials used in residential concrete.
• Canadian provinces and territories are responsible for adopting or adapting the building code, including referenced standards.

Women entrepreneurship-February 21, 2020

Issue/question

How is the Government of Canada supporting Women Entrepreneurship?

Suggested response

• The full and equal participation of women in the economy is essential to Canada's future competitiveness and prosperity.
• The Government of Canada's Women Entrepreneurship Strategy is an over $2 billion investment which aims to increase women-owned businesses' access to the financing, talent, networks and expertise they need to start up, scale up and access new markets.
• Regional Development Agencies played an integral role in delivering $115 million in new funding under the Strategy — through the Women Entrepreneurship Fund and the WES Ecosystem Fund.
• The Women's Entrepreneurship Strategy complements our government's efforts to advance gender equality. These efforts include addressing pay equity, introducing more affordable childcare and putting an end to gender-based violence.

Background

Ecosystem

• Fewer than 16% of small and medium-sized enterprises (SMEs) are majority women-owned in Canada (StatCan, Survey on Financing and Growth of Small and Medium Enterprises, 2017).
• Majority women-owned firms are smaller and are less likely to request external financing than majority male-owned firms (StatCan, Survey on Financing and Growth of Small and Medium Enterprises, 2017).
• Women entrepreneurs face unique barriers in accessing resources that help SMEs grow (Canada — U.S. Council for Advancement of Women Entrepreneurs and Business Leaders, 2018).
• Boston Consulting Group and the Cherie Blair Foundation (2019) estimate that closing the gender gap in entrepreneurship in Canada could add $41-$81 billion to Canada's GDP.
• Advancing gender equality has the potential to add $150 billion in incremental GDP to the Canadian economy by 2026 (McKinsey Institute, 2017).

Women Entrepreneurship Strategy (WES) programs and initiatives

• Innovation, Science and Economic Development
• The WES provided $115 million of targeted regional programming to help women entrepreneurs grow their businesses, delivered by the Regional Development Agencies in coordination with Innovation, Science and Economic Development Canada (ISED), through a nationally coordinated and regionally tailored approach.
• Women Entrepreneurship Fund: $30 million; over 320 projects funded. Call for proposals is now closed.
• WES Ecosystem Fund: $85 million; over 50 projects funded. Call for proposals is now closed.
• Women Entrepreneurship Knowledge Hub: up to $8.6 million over three years to create a knowledge hub to help women entrepreneurs and the organizations that support them. Led by Ryerson University, the hub serves as a one-stop source of knowledge, data and best practices.
• WES Expert Panel: In 2019, the External panel provided advice on gaps in support and services available to women entrepreneurs in Canada. The Expert Panel has now fulfilled its mandate.
• Venture Capital Catalyst Initiative: $450 million investment in venture capital (VC) funds and fund managers to attract over $1.5 billion in total investments. All selected recipients have to demonstrate and report on their support for improving diversity in VC, including support for more women fund managers and entrepreneurs.

Other government departments, agencies, and partners

• Business Development Bank of Canada:
  • A dedicated envelope of $1.4 billion over three years in debt financing to women-owned businesses.
  • $200 million over five years allocated to the Women in Technology Venture Fund to invest in women-led technology companies and build a robust ecosystem to support women in tech.
  • Boot camps delivered to women entrepreneurs in fall/winter 2018-2019.
• Export Development Canada:
  • $250 million over three years of financing and insurance solutions on commercial terms for women-owned businesses exporting or looking to export.
  • $50 million through the Women in Trade Investments Program for equity capital specifically designed to help women entrepreneurs.
• Global Affairs Canada:
  • $10 million over five years to the Trade Commissioner Service/Business Women in International Trade to connect Canadian businesswomen with expanded global export and trade opportunities.
  • Direct financial assistance to small and medium-sized businesses registered in Canada, through CanExport, to help them develop new export opportunities and markets, especially high-growth emerging markets.
  • Farm Credit Canada: $500 million over three years for the Women Entrepreneur Program to support women entrepreneurs in agriculture and agri-food.
  • Women and Gender Equality Canada: $160 million over 5 years for the Women's Program.
  • Public Services and Procurement Canada, Office of Small and Medium Enterprises: Increase procurement from women-owned businesses by 50%.

Indigenous entrepreneurship-February 27, 2020

Issue/question

On Thursday, February 27, 2020, the Minister of Economic Development and Official Languages will be appearing before the INDU committee to discuss Indigenous Entrepreneurship.

Suggested response

• Indigenous entrepreneurs and businesses make important contributions to their communities and to the Canadian economy.
• By promoting Indigenous entrepreneurship and supporting economic development through the Regional Development Agencies, the Government will help First Nations, Inuit, and the Métis fully contribute to and share in Canada's economic success.
• RDA programs allow regionally tailored funding to deliver on federal commitments to inclusive growth, and this is especially true with Indigenous economic development projects.

Background

• The government proudly supports Indigenous economic development through our Regional Development Agencies (RDAs). In 2018-19, RDAs approved approximately $112.8 million in funding for Indigenous economic development projects.
• Whereas the Atlantic Canada Opportunities Agency (ACOA) does not have programs exclusively targeting Indigenous economic development, it provided an average of $11M in annual funding over the past two years to commercial and non-commercial projects in Atlantic Indigenous communities, mainly through the Business Development Program and the Innovative Communities Fund.
• Canada Economic Development for Quebec Regions (CED) supports economic projects by Indigenous entrepreneurs or organizations, with the objective of supporting a minimum of 40 Indigenous projects by 2021. As of April 1st, 2019, CED signed 22 contribution agreements with Indigenous SMEs and non-profit organizations.
• CED also supports the First Nations School Board in Adult Education, and the First Nations community of Wendake to further promote the participation of Indigenous Peoples in the economic growth of Quebec.
• FedNor supports Indigenous economic development through infrastructure projects, including the Ring of Fire mining development road access, which builds the capacity of Indigenous communities to participate in such significant economic opportunities. FedNor also provides support to First Nations communities in Northern Ontario through its role as a convener of key regional players.
• FedDev Ontario has supported Indigenous economic development through targeted funding as well. In August 2019, FedDev announced up to $5 million for the city of Toronto to develop the Indigenous Centre for Innovation and Entrepreneurship to support Indigenous entrepreneurs as they develop, launch and grow their businesses.
• WD supports economic inclusiveness through their Grow West Growth Strategy, and through the British Columbia Indigenous Clean Energy Initiative which has been cited by its Advisory Committee as a strong example of working on a nation-to-nation basis.
• In 2018-19, CanNor approved $12M in funding for 49 Indigenous economic development projects representing. CanNor's supports The Northern Aboriginal Economic Opportunities Program which aims to increase the participation of northern Indigenous communities and businesses in economic opportunities through two distinct funding streams, and Pilimmaksaivik which aims to build and maintain a representative public service in Nunavut.
• Budget 2019 announced $15M in funding for the Northern Isolated Community Initiatives Fund as part of Canada's Food Policy, to support the development of food systems in the Territories through local, community-led projects that reduce dependence on the southern food industry and the associated costs (e.g. transportation and storage) for northern isolated communities.
• Budget 2019 provided $58.5 million over two years for the Canadian Experiences Fund to support Canadian businesses and organizations seeking to create, improve or expand tourism-related infrastructure or new tourism products or experiences. These investments focus on five categories: tourism in rural and remote communities, Indigenous tourism, winter tourism, inclusiveness, specifically for the LGBTQ2 community, and farm-to-table tourism, which is also known as culinary tourism.
• Budget 2019 proposed to create a $100M Indigenous Growth Fund to help Indigenous small businesses attract investment and take on larger projects. BDC and the National Aboriginal Capital Corporations Association are working on the design with the Department of Finance.
• The Budget also included support for existing programs such as Futurpreneur, which received a $3M boost specifically for outreach to young Indigenous entrepreneurs.
• The BDC has an Indigenous Banking Unit that provides financing and consulting services tailored to Indigenous entrepreneurs, with $325M committed to over 633 Indigenous clients across Canada.

Innovation superclusters initiative -February 27, 2020

• The Innovation Supercluster Initiative (ISI) will invest up to $950 million in five superclusters. From East to West, they are: Ocean Supercluster, SCALE.AI Supercluster, Next Generation Manufacturing Supercluster, Protein Industries Canada Supercluster, and Digital Technology Supercluster.
• Our government created the Innovation Supercluster Initiative (ISI) to accelerate innovation and foster stronger connections between all players in a cluster.
• As a collaborative initiative, ISI brings together actors across sectors that would not have otherwise forged partnerships, including start-ups, large firms, post-secondary institutions, research organizations and government.
• Our investment of up to $950 million will be matched dollar for dollar by the private sector.
• The goal of this investment is to create broader connections and opportunities that will build competitive advantage for Canada.
• This initiative represents a new way of supporting innovation in Canada. Its success will be reflected in the connections that result, the engagement of SMEs, and the talent it attracts.
• The investment is projected to create more than 50,000 jobs and grow Canada's GDP by more than $50 million over the next ten years.
• To date, the superclusters have more than 1,700 member organizations and they have announced 41 ambitious projects, which represent an $89 million investment leveraging $145 million from private industry and other partners.
• These projects involve 163 partners, of which almost 60% are small or medium-sized enterprises.

Background

• The ISI was launched in May 2017 and is a centrepiece of the Government's Innovation and Skills Plan.
• Following the signing of the contribution agreements in late 2018, all five superclusters began to receive funds to hire staff, set up their operations and begin selecting projects. Since launching full operations last year, Canada's five superclusters have published their Strategic Plans outlining their visions to support long-term growth, and have collectively recruited more than 1,700 members. Together, they have now announced 41 collaborative projects:
  • Digital Technology Supercluster: 21 projects announced valued at $65.4 M;
  • Protein Industries Canada Supercluster: 3 projects announced valued at $58.6 M;
  • Next Generation Manufacturing Canada Supercluster: 1 project announced valued at $4.3 M;
  • SCALE.AI Supercluster: 14 projects announced valued at $80.6 M;
  • Ocean Supercluster: 1 project announced valued at $25.8 M.
• Superclusters are dense areas of business activity that are innovation hotbeds, like Silicon Valley. They energize economies, promote job creation and create opportunities for Canadian businesses to grow into globally successful brands.
• An industry-led initiative, superclusters are responsible for selecting and funding projects that grow their innovation ecosystems. This model allows the independent organizations to move at the speed of business, make investment decisions, and capitalize on innovation and market opportunities.
• The supercluster initiative is about more than individual projects. It is about creating connections in the Canadian ecosystem that help business be competitive and resilient in the global marketplace.
• Now that all five superclusters have launched projects these ecosystem impacts are starting to be measured, including for example, SME engagement, membership and connections created, investments in research, IP created, talent attracted and business expenditures on R&D etc.
• The job projections were based on commitments that each supercluster put forward in their application, combined with independent third party assessments. These projections include direct job creation and maintenance as well as spin-off benefits expected to accrue from the commercial potential of the innovative projects and dedicated ecosystem development. As project partners from industry, academia and government continue to collaborate and new innovation opportunities occur, the networks and regions are expected to grow and enrich the ecosystems.

Tourism notes

Tourism notes — Tourism in general -February 27, 2020

Issue/question

What is the Government of Canada doing to support Canada's tourism sector?

Suggested response

• Canada had a record year in tourism in 2019, with 22.1 million arrivals.
• Our Government recognizes the importance of tourism for Canada's economic development and launched a new Federal Tourism Growth Strategy last year to unleash the potential of this important sector.
• Under the Canadian Experiences Fund, we invested nearly $51 million to enhance tourism products and experiences across the country.
• We are now establishing Tourism Investment Groups in every region of the country to better align investments and activities by various partners in tourism over the medium term.
• We are also setting up a Tourism Economic Strategy Table to work with industry and government to identify ways to overcome barriers to growth and improve Canada's competitiveness as a destination over the longer-term.

Background

• Tourism in Canada is a thriving and growing sector growth that is found in every province, territory and region of Canada. In 2019, Canada welcomed 22.1 million tourists — the most ever.
• In 2018, tourism activities generated over $100 billion in revenue and represented 2% of Canada's GDP ($42.4B) and 3% of all exports ($22.2B) and 4% of jobs. Tourism directly supports 740,000 jobs across the country, with a diverse labour force including strong representation from youth, immigrants, and women.
• Tourism is a uniquely inclusive sector that provides economic opportunities for every region, including big cities, rural and remote areas, all three coasts, and Indigenous communities. In 2019, tourism businesses represented 6% of all businesses coast-to-coast-to-coast.
• As part of the Federal Tourism Growth Strategy, the government launched the Canadian Experiences Fund (CEF) – a $58.5 million investment in Canada's tourism products. CEF investments focus on five categories: winter/shoulder-season; Indigenous; LGBTQ2; rural/remote; & culinary.
• The CEF aims to disperse the benefits of tourism across the country and encourage tourists to go off-the-beaten-path and address challenges noted by the tourism sector, including concentrated demand in the summer and cities and a lack of investment in the sector. The Regional Development Agencies are delivering the funds.
• The CEF's distribution per region is as follows (excluding administrative costs)
  • Atlantic Canada: $6.6 million
  • Quebec: $11.6 million
  • Southern Ontario: $14.2 million
  • Northern Ontario: $5.5 million
  • Western Canada: $13.6 million
  • Territories: $5.3 million
• To date, the Government of Canada has announced several projects across the country including:
  • $900,000 for snowmobile tourism in New Brunswick;
  • $500,000 to the Union québécoise de réhabilitation des oiseaux de proie Sainte-Jude, Quebec, to support the expansion of facilites at its Chouette à voir! Site;
  • $500,000 to the City of Welland to enhance its local waterway;
  • $225,000 to the International Plowing Match in Verner, Ontario;
  • $500,000 to design and deliver a culinary experience at the Métis Crossing in Smokey Lake, Alberta; and
  • $475,000 for renovations to a park in Inuvik, North West Territories;
• The Tourism Investment Groups will be co-chaired by Destination Canada and the respective Regional Development Agency; other participating departments and agencies will include ISED, Parks Canada, Canadian Heritage and the Business Development Bank of Canada, allowing the federal government to become a more effective partner to local and provincial/territorial governments and the private sector.
• On the Tourism Economic Strategy Table, Ben Cowan-Dewar was appointed as Chair of the Table in December 2019. Membership of the Table on Tourism will be announced in the coming weeks.

Tourism in canadian communities -February 27, 2020

Issue/question

What is the Government of Canada doing to support the development of tourism in rural and remote regions?

Suggested response

• Tourism is a uniquely inclusive sector that provides economic opportunities for every region, including big cities, rural and remote areas, all three coasts, and Indigenous communities.
• The Federal Tourism Growth Strategy has set ambitious targets to increase visitation to lesser-known parts of the country by 2025.
• As part of this Strategy, the Canadian Experiences Fund has invested nearly $51 million Canada's tourism sector to create middle class jobs and new economic opportunities in communities across the country.

Background

• Spending by foreign tourists in Canada is concentrated (47%) in the Vancouver, Toronto and Montreal regions. The Federal Tourism Growth Strategy has set dispersion objectives in order to grow tourism spending outside of these areas, and to increase international tourist arrivals in the winter and shoulder seasons by over one million.
• Budget 2019 also provided $5 million to Destination Canada for a domestic marketing campaign that will help Canadians to discover lesser-known areas, hidden national gems and new experiences across the country.
• Growth in the tourism sector is supported by a wide variety of factors and attributes, including natural wonders, TV shows, cultural events and conventions, which create opportunity for tourism businesses to start up or expand, including in regions where other economic sectors experience declines.

Impact of coronavirus on tourism-February 27, 2020

Issue/question

How is the coronavirus impacting Canada's tourism sector?

Suggested response

• The Government of Canada shares the ongoing concerns regarding the coronavirus outbreak, including the potential impact on tourism in Canada.
• Canada's tourism sector remains resilient and strong in the face of this health epidemic.
• I will continue to work with Destination Canada, other government departments and our industry partners to monitor the impacts on Canada's tourism sector.

Background

• As of February 25, 2020, there are over 80,000 reported cases and 2,707 deaths associated with the Coronavirus, originating in Wuhan, China. Canada has eleven cases and no reported deaths, with 3 cases reported as recovered.
• China is Canada's third largest tourism source market. In 2019, 712,500 Chinese tourist visited Canada, representing 3.2% of Canada's international tourists. In 2018, Chinese tourists spent $2B in the Canadian economy.
• Travel restrictions associated with the virus are expected to lead to a decline in Chinese tourist arrivals to Canada in particular, and to a lesser extent tourist arrivals from neighbouring Asian countries.
• Measures taken to date include the suspension of outbound group travel from China, temporary closure of Canada's visa application centres in China and the cancellation of Air Canada's direct Chinese routes.
• While media reports indicate that some Canadian tourism operators are experiencing cancellations from Chinese tourists, it is too early to predict the magnitude and duration of the virus' impact on arrivals and spending in Canada. The situation is taking place during the winter, which is the low-season for Chinese arrivals to Canada. Moreover, data on tourist arrivals for January and February 2020 will only be available later in March and April respectively, at which point we will be able to assess the actual impact.
• ISED is working with Destination Canada, other government departments, and industry partners to monitor the impacts on Canada's tourism sector.
• Domestic tourism spending has been relatively resistant to health epidemics, but has reacted negatively to other economic shocks like the 9/11 terrorist attacks and the global financial crisis of 2008-09. The tourism sector has historically recovered quickly from health epidemics, with rebounds beginning as soon as the quarter following the outbreak. The number of direct tourism jobs has experienced declines during economic shocks, but to a lesser extent than other economic variables given that tourism jobs also serve domestic demand.

Blockades -February 27, 2020

Issue/question

How are the VIA Rail tourism blockades affecting Canada's tourism sector?

Suggested response

• Via Rail plays a vital role in linking destinations across Canada, and supports the tourism sector by providing sustainable, lower-cost means of transportation for our visitors, particularly to rural and remote areas.
• I support the Government's efforts to engage in an open and respectful dialogue to try to resolve this situation peacefully.
• Ongoing rail disruptions are having significant regional implications for their communities and businesses.

Background

• The Wet'suwet'en hereditary chiefs have set up blockades on CN rail tracks to protest the construction of a natural gas pipeline in northwestern British Columbia.
• On February 13, Via Rail, which relies on CN's tracks, announced that it was canceling most passenger services. Only two northern routes — Sudbury-White River and Churchill-The Pas — had remained open.
• On February 20, the Crown corporation announced that while most of services remain suspended, trains between Toronto-London-Windsor, Toronto-Sarnia, Toronto-Niagara and Montreal-Ottawa will be in operation.
• The tourism sector identified the high cost of travel to and within Canada as a barrier to growth. VIA Rail supports tourism by offering lower-cost transportation options for travellers. In 2018, VIA had 4.74 million passenger trips. In addition to inter-city travel, the Crown corporation provides services to rural and remote regions, where alternative, year-round transportation is limited or unavailable.
• The suspension of passenger trips may decrease the availability of travel options for tourists. VIA Rail has indicated that as of February 20, 647 trains have been cancelled because of the blockades. More than 117,000 passengers have been affected.
• On February 19th, VIA Rail announced the temporary laid-off approximately 1,000 employees.
• Transport Canada does not have data projections on how the suspension of services will affect passenger numbers going forward.

Rail Blockades -February 24, 2020

Issue/question

Rail Blockades

• What can RDAs do to address the rail blockades?

Suggested response

• Our Government is taking action to address the concerns of land rights, and the resumption of rail and trade flows.
• The current situation is impacting our industrial sectors, which are working to find alternative — and often more costly — modes of transportation, while facing product spoilage, lost sales, damaged supplier relationships, and added expenses associated with warehousing excess inventories.
• Sectors that rely on time-sensitive logistics and inventory are facing immediate and dire impacts, including loss of product and potential plant closures should the blockades continue.
• The Western Diversification Program (WDP) is a tool available to WD to help firms impacted by the rail disruption.

Background

• Canada's latest rail disruption is the fourth in the last 30 months, and follows a recent CN rail strike that was widely criticized by industry for the same reasons as the current disruption.
• The rail dispute was precipitated in December when some Hereditary Chiefs of the Wet'suwet'en First Nation opposed the Trans Mountain expansion and Coastal GasLink pipeline. This despite the fact that these initiatives were endorsed by elected chiefs and a majority of the Hereditary Chiefs of the Wet'suwet'en First Nation, as well as other First Nations groups (including the Indian Resource Council, which represents 130 First Nations).
• On December 31, 2019, the BC Supreme Court granted Coast GasLink an injunction calling for the removal of obstacles from any authorized transportation routes or work sites. This led the Wet'suwet'en First Nation to serve an eviction notice to Coastal GasLink. The BC Government subsequently engaged with the Hereditary Chiefs to participate in discussions, which were unsuccessful. This, in turn, led to a blockade of rail traffic at Belleville, along with a halt in service by Via Rail between Toronto, Ottawa and Montreal. CN made unsuccessful efforts to end the blockade, while CP traffic through Toronto was also disrupted by protesters. Subsequent disruptions in service also took place in south of Montreal (on a CP rail line) and on a commuter train service in Montreal (the Exo Canadian Line).
• In BC, CN stopped transport between Prince George and Prince Rupert due to the blockade near Hazelton (which was subsequently resolved), while the Manitoba Government considered options to end a blockade on a rail line west of Winnipeg (also subsequently resolved). On February 12, the RCMP formally ended enforcement operations in northern BC where the dispute originated, while two hereditary Wet'suwet'en chiefs launched a constitutional challenge of fossil fuel projects. On February 13, CN closed its operations in Eastern Canada. Prime Minister Trudeau called for demonstrators across the country to observe the rule of law.
• On February 14, following the lifting of the blockade to the Port of Prince Rupert, First Nations leaders agree to meet with federal and provincial politicians. On February 15, Marc Miller, Minister of Indigenous Services, met with representatives of the Mohawk First Nation to engage in dialogue aimed at resolving the impasse of rail blockades in Ontario.
• Although not part of the current dispute, the February 6th train derailment at Guernsey, Saskatchewan led Minister Garneau to cut the speed limits for trains carrying hazardous materials, which has had the effect of further slowing down the rail system. Some industry representatives are currently in talks with Transport Canada to express their concerns about this situation.
• Western Canada:
  • In 2017, 265 million tonnes of commodities were shipped by rail from regions in Canada to destinations across North America. 72 percent (192 million tonnes) of the shipped commodity tonnage originated from western Canada.
  • 50 percent of western Canada's rail shipped commodity tonnage was shipped to British Columbia. Nearly 30 percent flowed to the US, and 14 percent was destined for central and eastern Canada.
  • Highly disrupted products, based on their share of commodity tonnage destined for central and eastern Canada, include:
  • Wheat — 31 percent of all western rail shipped wheat is destined for eastern and central Canada,
  • Meat, fish, and seafood — 74 percent,
  • Machinery, motor vehicles, and parts — 52 percent,
  • Gasoline and aviation fuel — 45 percent,
  • Prepared foods — 45 percent.
• Of the 26.9 million tonnes of commodities shipped from western Canada to central and eastern Canada, over a third of the tonnage originated from Saskatchewan, followed by BC (28%), Manitoba (23%) and Alberta (17%).