ARCHIVED - RPP 2007-2008
Western Economic Diversification Canada

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

SECTION II – ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME 

 

Strategic Outcome: Entrepreneurship and Innovation

A competitive and expanded business sector in Western Canada and a strengthened western Canadian innovation system (Entrepreneurship & Innovation) 

Program Activity: Business Development and Entrepreneurship

Expected Result: the growth of small businesses in Western Canada and their improved capacity to remain competitive in the face of rising global competition.       

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$57,786	$58,170	$54,268
Human Resources (FTEs)	131	127	127

This program activity contributes to the following departmental priorities: 

support for business competitiveness and growth;

improve international competitiveness and strengthen trade and economic corridors of importance to the West; and

strengthen accountability, transparency, and performance reporting by members of the Western Canada Business Service Network (WCBSN) and improve coordination among WCBSN members and other business and economic organizations.

 

Business Growth and Competitiveness

WD's activities are resulting in improved access to business information, training, business advisory services and capital for all western Canadian SMEs, including those located in rural communities.

WD recognizes the critical importance that SMEs play in the western Canadian economy.  Approximately one half of jobs in the West occur in establishments with less than 50 employees.  The number of small businesses per capita in Western Canada is 30 per cent higher than in the rest of Canada. ³

There also are comparatively fewer large companies outside of the predominantly foreign-owned resource industries and fewer head offices or private R&D facilities within Western Canada that could serve as a catalyst and source for new investment or commercially-driven research discoveries and which could provide an anchor for R&D and new business growth.

Western Canada, and Canada more generally, represent comparatively small and high-cost economies and markets within a global marketplace that is witnessing the rise of significant new and low-cost competitors from several regions of the world.  As a trade dependent region, western Canadian businesses are facing new challenges in remaining competitive and securing access to international markets.

This leaves Western Canada's business structure vulnerable to competitive pressures and the emergence of new commercial practices and trends in the global economy.  These include outsourcing, corporate concentration through mergers and acquisitions, and intense competition for domestic and export markets, investment and skilled labour.

Statistics Canada research concludes that the slower rate of diffusion of best-practice technology in Canada is the primary reason for Canada's declining productivity in the past twenty years. This is especially true of Western Canada, where, with the exception of Alberta, the growth in manufacturing excellence has not kept pace with other regions of the country.  Canada's focus on technology commercialization has meant limited resources for increasing productivity and competitiveness of manufacturers and exporters. ⁴

Addressing these challenges by ensuring that western Canadian industry is able to take advantage of new opportunities in high-growth markets requires an aggressive strategy to develop a more competitive, productive and expanded business sector in Western Canada.  This strategy must help western Canadian industry and R&D organizations to secure and expand their position in US markets, to identify and access niche markets and become a part of global supply chains within the rapidly growing Asia-Pacific market.  Development of a strategy to improve international competitiveness and strengthen trade and economic corridors of importance to the West is a priority for WD for 2007-2008.

To enhance overall support for trade and market development, WD partners with other federal departments, the provincial governments and local organizations to work with western Canadian industry groups and associations to improve their export readiness and to support market development activities directed primarily at key US and Asia-Pacific markets. 

WD works to achieve results that support small business growth in the West primarily by providing assistance to industry or business associations for projects that have systemic benefits, or through third-party delivery organizations such as financial institutions, or through the more than 100 offices of the Western Canada Business Service Network.  Links to organizations affiliated with the WCBSN can be found at: http://www.wd.gc.ca/serv/default-eng.asp. Leveraging of service and capital support for entrepreneurs is key to WD's business development strategy. 

A 2004 Statistics Canada Survey on Financing of Small- and Medium-sized Enterprises found that 20 per cent of SMEs cited obtaining financing as an obstacle to business growth. Those more likely to experience difficulties in obtaining financing included innovative businesses (40 per cent), young enterprises - defined as those that started operation in 2002 (34 per cent), exporters (29 per cent), and manufacturers (27 per cent). 

WD has created new and alternative sources of capital for SMEs by working closely with capital providers to create a specialized series of loan agreements under the Loan and Investment Program. These loan funds target industry sectors important to Western Canada, including micro-lending and other target groups, and provide patient and flexible debt capital on terms especially suited to the unique needs and cash flow requirements of these small businesses. Loans are approved on commercial terms by capital providers, such as chartered banks, credit unions, trust companies, and others, who use their own capital and make lending decisions using their own expertise while sharing the increased risk with WD. 

Another source of capital for SMEs in the West is the loan funds that WD has provided to most members of the WCBSN.  These loan funds enable network members to provide repayable loans to SMEs in rural areas, and to those operated by women, francophones, young entrepreneurs or those with disabilities. WD's network members also provide SMEs with path finding services and referrals to alternative sources of financing.  One of WD's priorities for 2007-2008 is to strengthen accountability, transparency and performance reporting by members of the WCBSN and improve coordination among WCBSN members and other business and economic organizations.

The following table illustrates the key Transfer Payment Programs the department utilizes to support the expected results of this program activity:

	Financial Resources (000's)
Key Programs*	2007-2008	2008-2009	2009-2010
Western Diversification Program (WDP)	$23,900	$24,200	$24,100
Community Futures Program	$13,700	$13,900	$14,200
Loan and investment Program	$3,500	$3,500	$3,500

* Appendix A provides a description of key programs. 

The WDP has a number of sub-programs that support this program activity, and further information on these sub-programs such as the Western Economic Partnership Agreements, the Canada-Saskatchewan Northern Development Agreement, the Women's Enterprise Initiative, and the Urban Development Agreements, can be found at http://www.wd.gc.ca/programs/default-eng.asp.  

Program Activity Name:  Innovation

Expected Result: an increase in knowledge-driven and value-added economic activities, built on both traditional and emerging industries, that creates a more diversified and resilient economy in Western Canada.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$64,696	$63,548	$63,214
Human Resources (FTEs)	97	102	101

This program activity contributes to the following departmental priority: 

greater emphasis on supporting commercialization and value-added production

 

A Diversified Economy

To promote economic diversification and the value of the West's economic output, WD will focus on:

• supporting the creation and growth of knowledge-based R&D and business clusters in sectors within western Canada outside the traditional resource-based sectors such as information communications technology (ICT)/wireless, health industries, biotechnology, environmental technologies, ocean technologies and the commercial application of cross-sectoral platform technologies such as nanotechnology and light synchrotron; 
• increasing value-added production in resource and manufacturing sectors of the economy by supporting systemic or industry-wide initiatives in priority sectors to introduce new products, technologies, or innovations to existing production and processes; and 
• promoting rural diversification through support for projects that will increase the capacity in rural communities to undertake applied R&D and value-added production and encourage new opportunities for skilled employment. 

The development, commercialization, application and adoption of technology are the primary means to a more diversified economy.  Broadly, these activities are referred to as innovation, the translation of knowledge into economic benefits.  During the 2007-2008 fiscal year, WD's priorities under this strategic objective are:

• technology commercialization and adoption leading to an increase in the number of technologies developed in research institutions that have commercialization potential, and an increase in technologies adopted by existing firms; 
• rural innovation leading to increased technological capacity and diversification in a community; and  
• technology skills development leading to an increase in training, education and skills building of highly qualified people. 

In addition, on a case-by-case basis, WD will support the development of technology-based clusters through strategic investments in: 

• knowledge infrastructure to increase the capacity underlying a cluster; 
• technology linkages to increase connections and synergies among innovation system (cluster) members; and 
• technology R&D (applied research) leading to technologies with commercialization potential.  

WD will continue to work with other stakeholders including the not-for-profit sector, academic/ industry consortiums, industry associations and other levels of government to diversify the economy of the West both through provincial initiatives and multi-jurisdictional or pan western  approaches.  

The following table illustrates the key Transfer Payment Program the department utilizes to support the expected results of this program activity:

	Financial Resources (000's)
Key Program*	2007-2008	2008-2009	2009-2010
Western Diversification Program	$55,900	$54,300	$54,100

* Appendix A provides a description of key programs. 

The WDP has a number of sub-programs that support this program activity, and further information on these sub-programs such as the Canada Foundation for Innovation Support Program, the Western Economic Partnership Agreements, the Canada-Saskatchewan Northern Development Agreement, and the Urban Development Agreements, can be found at http://www.wd.gc.ca/programs/default-eng.asp

Strategic Outcome:  Community Economic Development

Economically viable communities in Western Canada with a high quality of life (Community Economic Development)

Program Activity Name: Community Economic Planning, Development and Adjustment

Expected Result: to ensure strong and viable communities in urban and rural areas of Western Canada capable of responding to challenges that hinder competitiveness, opportunities, and quality of life.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$103,952	$55,010	$55,615
Human Resources (FTEs)	52	50	50

Note:  On behalf of the Government of Canada, WD was responsible for delivering $92 million in funding for capital legacy projects in Saskatchewan and Alberta to commemorate their centenaries in 2005.  The decline in planned spending from 2007-2008 to 2008-2009 reflects the planned completion of these projects.

Despite the West's strong overall economic performance, many communities and regions continue to face challenges in attracting investment and realizing potential opportunities. Others, because of the rapid growth, have to contend with managing that growth in ways that ensure that the growth is sustained over the long run.  WD plays a key role in addressing these issues in the West by forging partnerships among governments, community organizations and other stakeholders that combine strengths and resources to create collaborative solutions to these issues in ways that can be maintained in spite of global economic pressures.

Under this program activity, the department will focus on: 

• initiatives that allow communities to sustain their economies and adjust to changing and often very challenging economic circumstances; 
• facilitating economic recovery from depressed economic circumstances; and 
• working collaboratively with members of the WCBSN to carry out Aboriginal economic development and other community economic development initiatives.  

During the fiscal year, the department will make strategic investments in the economic and business infrastructure of the West - in partnership with public and private sector partners - that support the department's objectives of economic diversification and small business growth and competitiveness.  Examples of these investments include the Asia-Pacific Gateway and Corridor Initiative, Mid-Continent Corridor, Wood Buffalo region, and tourism infrastructure that addresses a recognized gap and has a significant economic impact on the region.  The department will place greater emphasis on support for initiatives that are multi-regional or pan-western in nature.

The department will also promote rural diversification through support for projects that will increase the capacity in rural communities to undertake value-added production and encourage new opportunities for skilled employment.  In urban areas, WD has played a key role in leading federal horizontal coordination.  WD investments will be focused on activities that result in economic development and growth.  WD will also continue to support projects that enhance Aboriginal participation in the mainstream economy.  

The following table illustrates the key Transfer Payment Programs the department utilizes to support the expected results of this program activity:

	Financial Resources (000's)
Key Program*	2007-2008	2008-2009	2009-2010
Western Diversification Program	$75,400	$29,500	$29,900
Community Futures Program	$13,700	$13,900	$14,200

* Appendix A provides a description of key programs.

The WDP has a number of sub-programs that support this program activity, and further information on these sub-programs such as the Western Economic Partnership Agreements, the Canada-Saskatchewan Northern Development Agreement, and the Urban Development Agreements, can be found at http://www.wd.gc.ca/programs/default-eng.asp

Program Activity Name:  Infrastructure

Expected Result:  to improve and expand sustainable public infrastructure that enhances the quality of the environment and allows for long-term economic growth.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$29,946	$2,013	$1,396
Human Resources (FTEs)	16	15	10

Note: WD delivers the Infrastructure Canada Program (ICP) in Western Canada and both grants and contributions (G&C), and operations and maintenance (O&M) funding is included in WD's resource allocations for 2007-2008.  The decrease in funding from 2007-2008 to future years reflects the winding down of the ICP, which ends March 31, 2008.  WD delivers the Municipal Rural Infrastructure Fund and Canada Strategic Infrastructure Fund on behalf of Infrastructure Canada and O&M funding for both of these funds is included in WD's resource allocations from 2007 – 2009.  G&C resource allocations for MRIF and CSIF are included in the RPP of Infrastructure Canada.  

This program activity contributes to the following departmental priority: 

improve linkages between strategic infrastructure investments and economic development initiatives

In 2007-2008, WD will be involved in the delivery of three infrastructure programs.  

The Infrastructure Canada Program (ICP) was created in 2000 to enhance infrastructure in Canada's urban and rural communities and to improve quality of life through investments that protect the environment and support long-term community and economic growth.  All project approvals under the program were completed by June 2005, however the program was extended until March 31, 2008, to allow for the completion of all projects.

With a primary focus on communities with less than 250,000 people, the Municipal Rural Infrastructure Fund (MRIF) improves and increases the stock of core public infrastructure in areas such as such as water, wastewater, solid waste management, public transportation, cultural, recreation, tourism and connectivity.   The Canada Strategic Infrastructure Fund (CSIF) complements the ICP and MRIF in that it addresses infrastructure projects that are regional priorities, but exceed the scope and capacity of the other infrastructure programs.  In its role in administering MRIF and select CSIF projects, WD will manage contribution agreements, review claims, and monitor projects.

WD's infrastructure activities for the coming year will include: 

• administration of the ICP and the program's sunset by March 31, 2008; 
• delivery of MRIF in the West;  
• administration of approved CSIF projects including the Winnipeg Red River Floodway ($162 million), Winnipeg Wastewater Treatment System ($42 million), Saskatoon South Downtown Redevelopment ($13.7 million), Saskatchewan's Regional Rural Water Supply Systems ($27.3 million), Regina's Urban Revitalization projects($14 million), and Vancouver's Convention and Exhibition Centre ($222.5 million); and
• collaborating with Infrastructure Canada in the audit of the CSIF management control framework for specific projects. 

The following table illustrates the key Transfer Payment Program the department utilizes to support the expected results of this program activity:

	Financial Resources (000's)
Key Program*	2007-2008	2008-2009	2009-2010
Infrastructure Canada Program	$28,000	–	–

* Appendix A provides a description of key programs.  MRIF and CSIF G&C resource allocations are included in the RPP of Infrastructure Canada.

 

Strategic Outcome:  Policy, Advocacy and Coordination

Policies and programs that support the development of Western Canada (Policy, Advocacy and Coordination)

Strong Economic Foundations

WD's Policy, Advocacy and Coordination function includes a range of activities designed to build a strong economic foundation in Western Canada.  These activities result in effective strategies, policies and programs that address the economic development needs, opportunities, and aspirations of Western Canada.

Program Activity Name:  Collaboration and Coordination

Expected Result:  better coordinated economic development activities and programs in the West.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$5,885	$5,885	$5,885
Human Resources (FTEs)	40	40	40

This program activity contributes to all departmental priorities. 

WD takes a leadership and coordinating role in identifying economic challenges and opportunities for the West, and in developing a federal response either through the investment of its own resources or by working with other appropriate federal departments and agencies. The department acts as a champion and advocate for federal and intergovernmental collaboration to address key impediments to long-term growth and diversification and promote coordination in areas of federal or shared federal-provincial jurisdiction, such as labour shortages, border access, regulatory harmonization, inter-provincial and intergovernmental trade. 

WD will continue to organize and coordinate events with other levels of government, other federal departments, industry (in particular industry associations), academic institutions, and the not-for-profit sector to discuss, plan, develop, and implement policies, programs, and initiatives that promote the development and diversification of the western economy. 

Program Activity Name:  Advocacy

Expected Result:  an improved understanding and awareness of western issues by federal policy makers and increased access to and participation in federal programs by the region.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$2,660	$2,660	$2,660
Human Resources (FTEs)	20	20	20

This program activity contributes to all departmental priorities. 

An important part of WD's mandate is to advance the interests of Western Canada in national economic policy, program, and project development and implementation.  In fulfilling this mandate, WD frequently acts as a champion for new federal initiatives and projects in the West that would support long-term economic development and diversification.  Working within federal policy and decision-making structures, WD strives to ensure the views and concerns of western Canadians are taken into account in the development of national policies, priorities and programs.

Specific examples of WD's advocacy efforts include: 

• intervening in and providing western perspectives and input into submissions to Cabinet based on an assessment of western-oriented items on the Cabinet Agenda;
• working on behalf of western Canadian firms and industries seeking to access government programs such as major Crown projects, granting council funding, Canada Foundation for Innovation initiatives, and funding offered by other federal departments and agencies; 
• establishing and participating in western-based consultation forums such as the federal-provincial Deputy Ministers' Economic Development forum, Senior Western Innovation Officials forum, as well as the Federal Councils in each province;  
• advocating in support of specific regional projects or issues such as WD's work in advocating for the mid-continent corridor, Intervac (one of the largest vaccine research laboratories in North America, which will be owned and operated by the University of Saskatchewan), and support for communities affected by the Mountain Pine Beetle; and
• engaging western Canadian stakeholders in the development and implementation of national priorities, such as the Asia-Pacific Gateway and Corridor Initiative.

In 2007-2008 the department will refine its Advocacy Strategy and implement an Advocacy Agenda focused on the highest priority advocacy items. This agenda will be reviewed and implemented annually, in 2007-2008 WD's advocacy activities will focus on ensuring that:  

• Western Canada's interests are promoted abroad through Government of Canada trade and investment activities under the federal government's Global Commerce Strategy;
• national programs aimed at enhancing research and development and technology commercialization offer appropriate access to western Canadians; and 
• a strong western Canadian presence and influence in the development and implementation of initiatives to promote Asia-Pacific trade and economic opportunities, and the Asia-Pacific Gateway and Corridor Initiative. 

 

Program Activity Name:  Research and Analysis

Expected Result:  an enhanced dialogue around and understanding of western issues, challenges, opportunities and priorities.

	2007-2008	2008-2009	2009-2010
Financial Resources ($thousands)	$4,157	$4,157	$4,157
Human Resources (FTEs)	28	28	28

This program activity contributes to all departmental priorities. 

WD supports research, consultations, feasibility studies and other related activities to improve understanding of the western Canadian economy and to focus on specific economic challenges and opportunities in the West. These activities also contribute to the department's policy development activities and identify immediate or pending issues on which WD will need to consider an advocacy role.  

Many of WD's policy research activities and outputs foster increased regional collaboration among economic development stakeholders in Western Canada and the development of pan-western perspectives and approaches to policy issues.  

Research priorities for 2007-2008 include:  

• analysis of western challenges, opportunities and factors affecting regional prosperity; regional trade and investment patterns;  
• development of a clear, coordinated public policy plan that will ensure Western Canada achieves long-term success in the global economy;
• analysis of opportunities for and barriers to small business in participating in export markets;  
• an analysis of economic sectors pertinent to the current and future western economy (with particular emphasis on health innovation as a potential economic driver);
• analysis of barriers to addressing labour shortages in Western Canada; and  
• research to support policy development in national or international forums such as factors contributing to regional competitiveness.  

The following table illustrates the key Transfer Payment Program the department utilizes to support the expected results of this program activity:

	Financial Resources (000's)
Key Program*	2007-2008	2008-2009	2009-2010
Western Diversification Program	$600	$600	$600

* Appendix A provides a description of key programs.

 

• Previous Page
• Table of Contents
• Next Page