ARCHIVED - 2010-11 - Main Estimates

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Atlantic Canada Opportunities Agency

Ministry Summary

Vote	(thousands of dollars)	2010–11	2009–10	Difference
		Main Estimates	Main Estimates
	Atlantic Canada Opportunities Agency
	Department
1	Operating expenditures	84,797	79,640	5,157
5	Grants and contributions	288,876	245,178	43,698
(S)	Contributions to employee benefit plans	8,468	7,599	868
	Total Department	382,140	332,418	49,722
	Enterprise Cape Breton Corporation
10	Payments to the Enterprise Cape Breton Corporation	83,070	8,650	74,420
	Total Agency	83,070	8,650	74,420

Notes:

Details may not add to totals due to rounding.

Order in Council P.C. 2009-1616 designates the Minister for the purposes of the Atlantic Canada Opportunities Agency Act as the Minister for the purposes of the Cape Breton Development Corporation Act, effective September 23, 2009.

Order in Council P.C. 2009-1617 and pursuant to the Cape Breton Development Corporation Divestiture Authorization and Dissolution Act , the Cape Breton Development Corporation is dissolved, effective December 31, 2009.

In accordance with P.C. 2009-1618 and pursuant to paragraph 91(1)(c) of the Financial Administration Act , Enterprise Cape Breton Corporation is authorized to acquire all or substantially all of the assets of Cape Breton Development Corporation.

Department

Strategic Outcome

A competitive Atlantic Canadian economy.

Program Activity Descriptions

Enterprise Development

Notwithstanding recent overall economic progress, some significant challenges remain and great opportunities exist for development. One of the most telling indicators of this is that, in a number of sectors, productivity remains significantly lower than in leading countries and other regions of Canada. The Atlantic Canada Opportunities Agency (ACOA) will work in partnership with Atlantic Canadian enterprises, stakeholders, industry and institutions to improve the growth and productivity of Atlantic Canada's economy, leading to increased competitiveness, earned incomes and job creation.

ACOA works to improve the region's capacity for economic growth through a variety of strategically focused mechanisms, which includes: assisting enterprises, particularly small and medium-sized ones, to help them start, expand or modernize their businesses, and establish and expand export activities; partnering with universities and other institutions to increase the region's research and development capacity, commercialization and productivity; and promoting and participating in the region's transition to the knowledge economy.

Community Development

The Atlantic economy is built on the region's many geographic, linguistic, and cultural communities. From small remote villages to larger urban centres, the opportunities and challenges vary significantly. Communities are the foundation of economic development and are critical for economic prosperity. The Atlantic Canada Opportunities Agency (ACOA) recognizes the importance of these communities in an economic development framework and supports their efforts to develop the resources they need to assume full responsibility for their own economic development. For those reasons, ACOA focuses targeted efforts and strategies toward community development and also aims to provide and maintain quality public infrastructure. ACOA works in co-operation with other levels of government, other federal government departments, non-government organizations, and community groups to lever support, coordinate economic development, react to economic challenges, and finally, work with Infrastructure Canada and the Provinces to oversee/ensure the flow of federal funds allocated to each region through the various infrastructure funding streams. This requires a flexible, holistic approach, based on the realities of a given community's capacities, strengths and challenges. Community development is a bottom-up process that helps to develop the tools, resources and initiatives that support individual and unique strategic development.

Policy, Advocacy and Coordination

ACOA's Policy, Advocacy and Coordination (PAC) Program Activity is central to identifying and effectively responding to opportunities and challenges facing the regional economy. PAC provides intelligence, analysis and well-grounded advice on a broad range of issues and topics, and informs and supports decision making by the Agency and the Minister. In offering strategic, researched policy positions that reflect the region's potential; influencing national policies and programs that affect Atlantic Canada's development and interests; and in coordinating other policies and programs within the region to form integrated approaches to development, PAC helps carry the Agency's agenda forward and helps ensure that ACOA overall remains relevant and responsive to the opportunities and challenges in Atlantic Canada.

Strategic Outcome

The following program activity supports all strategic outcomes within this organization.

Program Activity Descriptions

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Program by Activities

(thousands of dollars)		2010–11 Main Estimates			2009–10
	Budgetary			Total	Main Estimates
	Operating	Grants	Contributions
			and other
			transfer
			payments
Enterprise Development	32,940	2,000	139,327	174,266	198,700
Community Development	14,093	. . . . .	146,357	160,450	87,698
Internal Services	35,945	. . . . .	. . . . .	35,945	34,884
Policy, Advocacy and Coordination	10,286	. . . . .	1,192	11,478	11,136
	93,264	2,000	286,876	382,140	332,418

Note: Details may not add to totals due to rounding.

Transfer Payments

(dollars)	2010–11	2009–10
	Main Estimates	Main Estimates
Grants
Grants to organizations to promote economic cooperation and
development	2,000,000	2,000,000
Total grants	2,000,000	2,000,000
Contributions
Contributions under the Business Development Program	115,360,548	105,368,000
Contribution for the Innovative Communities Fund	87,793,000	43,558,000
Contributions for the Atlantic Innovation Fund	38,090,000	69,800,000
Contributions under the Recreational Infrastructure Canada Program	23,970,000	. . . . .
Contributions under the Community Futures Program	10,962,000	13,052,000
Contribution for the Saint John Shipyard Adjustment Initiative	10,000,000	10,000,000
Contributions under the Atlantic Policy Research Initiatives	700,000	700,000
Total contributions	286,875,548	242,478,000
Items not required
Contributions for the International Business Development Program	. . . . .	700,000
Total items not required	. . . . .	700,000
Total	288,875,548	245,178,000

Enterprise Cape Breton Corporation

Strategic Outcome

A competitive and sustainable Cape Breton economy.

Program Activity Descriptions

Human Resource Obligations

The programs included under Human Resource Obligations are nondiscretionary items that the Enterprise Cape Breton Corporation (ECBC) is required to deliver to former Cape Breton Development Corporation (CBDC) employees following the dissolution of CBDC. They are ongoing liabilities, many of which will continue beyond 20 years. They are a result of post employment benefits and various human resource strategies (operation closure). They include early retirement incentive programs, liability for future employee benefits, workers' compensation obligations, and a domestic coal subsidy program.

Environmental Obligations

As part of the transfer of the Cape Breton Development Corporation's (CBDC) assets and liabilities to the Enterprise Cape Breton Corporation (ECBC), ECBC will assume stewardship responsibility for all former land holdings of the CBDC. This includes all environmental obligations related to these sites.

ECBC is required to comply with environmental laws and regulations as they pertain to current activities, as well as activities of past operations. To properly meet these obligations, ECBC will enter into a strategic partnership arrangement with Public Works and Government Services Canada (PWGSC), similar to that previously in place between CBDC and PWGSC. As part of this relationship, projects are planned and managed by PWGSC with oversight, monitoring and funding provided by ECBC. It is anticipated that all of the long-term environmental obligations will be completed by 2055, except the mine water obligation, which may require management in perpetuity.

ECBC will also work with numerous partners, such as the Centre for Sustainability in Energy and the Environment at Cape Breton University, Sydney Tar Ponds Agency, the Province of Nova Scotia, Environment Canada, and the private sector to explore alternative sources of energy related to the former CBDC's land holdings that could potentially lead to commercial development opportunities. This includes research into the production of green fuel crops, geothermal energy from the mine water, as well as the carbon storage potential of the residual coal within the Sydney coal field.

Commercial Development

Due to the size and make-up of the Cape Breton economy and its distance from major markets, access to capital remains one of the greatest challenges for businesses. The ability to access capital from traditional lenders, venture capitalists and other levels of government is limited. Recognizing the challenges faced by Small and Medium-size enterprises, the Enterprise Cape Breton Corporation, through this program activity, works with potential and existing entrepreneurs to assess and to provide as appropriate various forms of assistance including but not limited to equity, secured and unsecured loans, as well as non-repayable contributions. The assistance provides a source for capital investment in support of initiatives such as marketing, improved efficiency, innovation, human resource initiatives, trade development activities and capital assistance.

Community Economic Development

Structural adjustment has been taking place in the Cape Breton economy over the past decade due to the closure of the Island's major industries and the downsizing of the fishing industry. The economic climate on the Island has presented significant challenges for many communities in terms of attracting investment and realizing opportunities. Through this program activity , the Enterprise Cape Breton Corporation works to engage and empower communities to take control of their destiny by pursuing opportunities leading to sustainable economic development. Working in cooperation with communities and community-led organizations, activities pursued in support of this program activity range from developing and implementing overall strategies for economic development to supporting the business environment, skill development activities, and new and/or improved community infrastructure.

Property Development and Management

Through this program activity, the Enterprise Cape Breton Corporation (ECBC) has the ability to purchase, lease, sell land and hold mortgages. The development and management of property holdings are used by the corporation as a development tool to complement funding programs. Surplus revenues from real property leases and land sales go directly into economic development projects within ECBC's mandate area. In addition, as part of the land transfer/disposal process, the corporation makes lands available for lease or sale to businesses and organizations in an effort to foster economic development opportunities. Both activities serve to support the economic development mandate of the corporation. In addition to land holdings, ECBC's real property assets include the corporation's head office at Sydney, Nova Scotia, Point Edward Resource Centre (agricultural property), Port Hawkesbury business facility (office space), and the Northside facility (manufacturing space). As a result of the transfer of the assets and liabilities of the Cape Breton Development Corporation (CBDC) to ECBC upon CBDC's dissolution, ECBC will own and operate a number of water treatment and storage facilities, as well as the Dominion Coal Yard and Sydney Mines Coal Yard required to support the contractual obligation to sell coal to current and former employees.

Policy and Advocacy

Fundamental to the Enterprise Cape Breton Corporation's (ECBC) mandate is the Corporation's policy and advocacy role that assists in identifying the opportunities and challenges facing the Island, as well as informing and supporting decision making both within and outside the Corporation. ECBC's policy and advocacy functions focus on a range of activities including research, analysis, planning and reporting, as well as working to advance the interests, priorities and concerns of Cape Breton Island in government decisions and actions. The Policy and Advocacy function exists to inform and support decision making by the Corporation and the Minister, providing intelligence, analysis and well-grounded advice on a number of issues and topics. The Policy and Advocacy function helps carry the Corporation's forward agenda, plays an integral role in developing focused and adaptable approaches to issues, and helps ensure that the Corporation overall remains relevant to the opportunities and challenges facing Cape Breton. In developing the advocacy agenda for Cape Breton, ECBC works to ensure that national and provincial officials are aware of the needs of the region and that Cape Breton interests, priorities and concerns are considered when policy is developed. Research and analysis are required to understand the economic challenges and opportunities facing Cape Breton and to guide the advocacy and policy making activities of the Corporation.

Strategic Outcome

The following program activity supports all strategic outcomes within this organization.

Program Activity Descriptions

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Program by Activities

(thousands of dollars)	2010–11 Main Estimates			2009–10
	Budgetary		Total	Main
	Operating	Capital		Estimates
Human Resource Obligations	44,652	. . . . .	44,652	. . . . .
Environmental Obligations	29,768	. . . . .	29,768	. . . . .
Commercial Development	2,907	. . . . .	2,907	4,720
Community Economic Development	2,906	. . . . .	2,906	2,200
Internal Services	1,500	. . . . .	1,500	1,230
Property Development and Management	475	475	950	. . . . .
Policy and Advocacy	387	. . . . .	387	250
Investment	. . . . .	. . . . .	. . . . .	250
	82,595	475	83,070	8,650

Notes:

Details may not add to totals due to rounding.

The 2009-10 funding associated with the program activity "Support to Business" in the 2009-10 Main Estimates is displayed under the new program activity entitled "Commercial Development".

The 2009-10 funding associated with the program activity "Support to Communities" in the 2009-10 Main Estimates is displayed under the new program activity entitled "Community Economic Development".

The 2009-10 funding associated with the program activity "Policy and Research" in the 2009-10 Main Estimates is displayed under the new program activity entitled "Policy and Advocacy".

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