ARCHIVED - Economic Development Agency of Canada for the Regions of Quebec

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2 Analysis of program activities for the strategic outcome

This section provides information on the Agency's strategic outcome, challenges and program activities. For each program activity there is a Program activity summary subsection, which presents a brief description of the activity, as well as a Planning highlights and benefits to Canadians subsection, which outlines briefly how each program activity will support the plans, priorities and strategic outcome set out in Section 1.

2.1 Strategic outcome: A competitive and diversified economy for the regions of Quebec

This outcome reflects the object of the Act establishing the Economic Development Agency of Canada for the Regions of Quebec: to promote the development and diversification of the economy of the regions of Quebec. This single strategic outcome, compared with the three strategic outcomes presented in the RPP 2009-2010, provides for better integration between development of communities and competitiveness of enterprises and regions.

2.1.1 Challenges associated with the strategic outcome

For communities

Several regions or communities whose economy is traditionally based on natural resources and which are generally far from the major markets are having difficulty diversifying their economic base. Owing to their heavy economic dependency on a small number of industries or sectors, these communities are hardest hit in the event of a crisis. The global economic downturn has led to even greater adjustment difficulties for communities posting slow economic growth.

For SMEs

Enterprises and regions operate in a context featuring a strong process of economic integration in which several emerging economies are present. Combined with the growing pace of technological progress, this generates multiple opportunities (access to new markets and new ideas) but also brings substantial adjustments (redeployment of workers, new business models). It is through an increase in the competitiveness of SMEs and regions that wealth and employment will be created.

The economic downturn has had and continues to have a negative impact on the growth and competitive positioning of SMEs and regions. In that context, the Agency has to pursue its work with economic development agents and be innovative in its intervention so as to help enterprises and regions take advantage of the anticipated modest economic recovery.

2.1.2 Plan for meeting the challenges

To meet the challenges affecting communities and SMEs in association with the strategic outcome, the Agency intervenes in six areas of activity:

• Development of communities
• Infrastructure
• Special intervention measures
• Competitiveness of enterprises
• Competitive positioning of sectors and regions
• Policies, programs and initiatives.

These program activities are implemented in the form of financial assistance accessible through the 14 business offices and an Infrastructure Branch, which also provide consulting and information services. In addition, to support the development and implementation of policies and programs, the Agency analyses the needs of Quebec regions and communities with respect to regional economic development, in conjunction with its federal and Quebec government partners. This strategic outcome contributes to attainment of the Government of Canada's outcome: Strong economic growth.

2.2 Program activities

The following subsection presents all program activities along with the elements specific to Canada's Economic Action Plan (CEAP). Since the measures dedicated to CEAP are ad-hoc measures specific to fiscal years 2009-2010 and 2010-2011, they are presented separately.

Under CEAP, the Community Adjustment Fund (CAF) is implemented through two of the Agency's regular programs, Community Diversification and Business and Regional Growth. Two other programs were set up to respond specifically to CEAP: Recreational Infrastructure Canada and the Contribution program to supply the Municipality of Shannon with drinking water.

2.2.1 Program activity: Community Development

Program activity summary

A community's vitality depends on its ability to bring its assets to bear in order to develop. The Agency fosters the dynamism of Quebec communities through maintenance and development of their economic activity base.

The goals targeted by the Community Development program activity are the following:

• Community mobilization: by fostering the development of communities and increasing their mobilization through development of visions and projects of local and regional scope.
• Local development: by assisting communities through entrepreneurship support and the creation or maintenance of viable enterprises.
• Attractive communities: by increasing communities' ability to attract tourists and skilled individuals.

The Agency intervenes directly in regard to SMEs and NPOs through two grants and contributions programs: Community Diversification⁴ and the Community Futures Program.⁵

Planning highlights and benefits to Canadians

This program activity enables Quebec regions and communities to maintain and develop their economic activity base. This is all the more crucial since the recent economic downturn generated a negative impact on communities' vitality, such as an increase in the number of vulnerable communities, the closing of SMEs of local and regional scope, or a drop in the number of tourists from outside Quebec.

Maintenance or improvement of qualify of life is a pre-condition for creating an environment that enables enterprises and regions to become more competitive and dynamic. In conjunction with other economic and regional development agents, the Agency intends to increase support for communities so they can diversify their economic activity base by stimulating the emergence of new entrepreneurs and enterprises, and by attracting tourists from outside Quebec and retaining a skilled labour force. Also, through the economic development initiative devoted to official language minority communities in Quebec, the Agency intends to provide more support for diversification and entrepreneurship initiatives from those communities.

Under Canada's Economic Action Plan, the Agency awarded $4.5 million in funding to Laval University's Physical Education and Sport Centre (PEPS). This funding will help increase hosting capacity at major events and make it possible to provide broader sports programming.

The Agency's intervention in Community Development is in line with the priority Support communities' development through the creation and development of local and regional SMEs, and the enhancement of regional assets.

2.2.2 Program activity: Infrastructure

Program activity summary

Quality infrastructure is fundamental to prosperous communities. It attracts enterprises and workers, guarantees efficient movement of goods, and contributes to quality of life and a healthy environment. The Government of Canada has created a series of programs to renew and construct public infrastructure.

The Agency takes part in the implementation of different infrastructure programs for which Infrastructure Canada is accountable, notably the Municipal Rural Infrastructure Fund (announced in 2005), the Canada Strategic Infrastructure Fund (announced in 2005) and the Building Canada Fund (announced in 2007).

Canada's Economic Action Plan initiative

The Recreational Infrastructure Canada (RInC) program is a national initiative intended as a timely, targeted and temporary measure to stimulate the Canadian economy. Its goal is to contribute to mitigating the impact of the global recession by increasing the total value of recreational facility construction activity. Projects funded by this program are primarily intended to update, repair, replace or expand existing recreational infrastructure, such as swimming pools, arenas and sports fields. This initiative is being carried out in conjunction with the provinces, territories and municipalities, and First Nations. In Quebec, the program is implemented in partnership with the Government of Quebec.

The Contribution program to supply the Municipality of Shannon with drinking water, under CEAP, was implemented to enable the municipality of Shannon to receive a financial contribution from the Agency to set up a drinking water system and construct a reservoir and a pumping station.

Planning highlights and benefits to Canadians

By implementing the different infrastructure programs, the Agency will contribute, among other things, to increasing the number of households that will have access to new drinking water and wastewater infrastructure. Planning highlights with respect to these programs are to be found in Infrastructure Canada's Report on Plans and Priorities.⁶

As to CEAP, all projects approved under RInC will have to be completed as of March 31, 2011. The Agency expects the anticipated results to be attained.

2.2.3 Program activity: Special intervention measures

Program activity summary

The Agency generally does not have funds devoted to this program activity, which targets two quite specific objectives:

• Communities' adjustment to economic shocks: facilitate the definition and implementation of development and diversification opportunities in communities affected by significant job losses. The Agency assists communities and regions facing major economic shocks.
• Communities' adjustment to natural disasters: facilitate the adjustment of communities facing natural disasters.

Canada's Economic Action Plan initiative

The 2009 federal budget gave the Agency $211 million in funding, including $100.7 million in 2009-2010 and $110.3 million in 2010-2011, in support of CEAP, under the Community Adjustment Fund (CAF). The CAF is an economic stimulus initiative aimed at mitigating the impact of the economic downturn in the short term by contributing to the creation and maintenance of jobs, while meeting communities' challenges with respect to transition and adjustment.

The CAF is to terminate on March 31, 2011.

Planning highlights and benefits to Canadians

To help Quebec regions negotiate the global economic downturn, the Agency set up the CAF back in spring 2009, through the Community Diversification and Business and Regional Growth programs. This makes it possible to facilitate the processing of funding applications, thus accelerating the funding award process. The CAF primarily targets non-urban regions where job opportunities are more limited in an economic slowdown.

A significant portion of the CAF is devoted to the forestry sector, which was hard hit by the downturn. In that regard, a partnership was established between the Agency and the Quebec government:

• Six agreements were entered into to perform silviculture work for the period 2009-2011, particularly for the rehabilitation of poorly regenerated areas. The projects implemented through these agreements were the subject of consultation among local stakeholders. The joint contribution of the Government of Canada and the Government of Quebec amounts to $200 million over two years, including $100 million from the Agency.
  
  
• A seventh agreement has been signed to perform restoration work on watercourse crossings on forest multi-use roads on Quebec public lands. Several Quebec regions will benefit from this joint funding, amounting to $30 million over two years, $15 million of it from the Agency.
  

In addition, $88 million from the CAF will support SMEs' and NPOs' projects, leading to maintenance and rapid creation of jobs. Numerous projects have already been approved, and we anticipate that FAC contribution funds will be almost fully committed as early as spring 2010. This will mean many projects are completed by the end of the initiative, March 31, 2011, creating temporary and permanent employment opportunities.

2.2.4 Program activity: Enterprise Competitiveness

Program activity summary

This program activity enables enterprises to improve their performance and become more competitive by increasing their productivity, revenue earned and job levels, thus contributing to creating conditions conducive to sustainable growth.

To support the competitiveness of enterprises, the Agency has two goals:

• development of enterprises' capacity – by improving capabilities with respect to management, innovation, adoption of advanced technology, market development, and integration with globalized production chains; and by encouraging support for organizations dedicated to improving enterprises' strategic capabilities in order to enhance SMEs' performance and contribute to their adjustment.
• support for strategic enterprises – by supporting the establishment and first phases of expansion of enterprises in economic activities deemed strategic for a region's development so as to consolidate its economic base.

This program activity primarily targets SMEs and NPOs, and is implemented through the Business and Regional Growth grants and contributions program.⁷

Planning highlights and benefits to Canadians

Beyond adjusting to the economic situation, all Quebec SMEs and regions are facing structural challenges to achieve their full potential for prosperity. Greater productivity, increased innovation capability and enhanced performance on the innovation commercialization front are substantial challenges. These three elements constitute the basis for preparing the economy of tomorrow. The Agency will use the tools available to it to help enterprises improve their performance and increase their competitive capability with respect to a highly competitive market.

The Agency's intervention with respect to Enterprise Competitiveness is directly in line with the Support the economy of tomorrow by strengthening SMEs' productivity and performance program priority. To pursue this priority, the Agency intends to pay special attention to development of enterprises' capabilities (management, innovation, adoption of advanced technology and value chain integration) and startup of innovative SMEs.

2.2.5 Program activity: Competitive positioning of sectors and regions

Program activity summary

This program activity aims to improve regions' international competitiveness by enhancing their knowledge and competitive advantages on the international stage.

The two goals targeted by this program activity are:

• Development of regional competitiveness poles and national- and international-calibre poles of excellence. To achieve this, the Agency supports innovation and networking of knowledge players; development of a critical mass of knowledge in sectors and regions; and technology enhancement and transfer.
  
  
• Enhancement of the international competitiveness of Quebec regions. To achieve this, the Agency supports the integrated promotion of locational factors, attraction of foreign direct investment and reinvestment by foreign firms already established in Quebec.

This program activity primarily targets SMEs and NPOs, and is supported by the Business and Regional Growth grants and contributions program.

Planning highlights and benefits to Canadians

This program activity aims primarily to pursue the development of competitiveness poles by fostering alliances among the different innovation stakeholders: knowledge institutions, enterprises and their groups, and SME support organizations. To support the economy and jobs of tomorrow, the Agency will back the consolidation of competitiveness poles in the regions so as to contribute to the creation of wealth and the outreach of sectors and regions. Thus, the Agency's intervention with respect to this program activity is aimed at improving Canada's competitive positioning.

2.2.6 Program activity: Policies, programs and initiatives

Program activity summary

This program activity gives Quebec regions and communities the opportunity to benefit from federal action which, in particular, helps create and disseminate knowledge with respect to regional economic development that is useful for development stakeholders, and helps grasp business opportunities.

Four goals support this program activity:

• Analysis and research: help development stakeholders have overarching facts and data available to them to inform their reflection and facilitate their decision-making with respect to development trends, challenges and issues.
  
  
• Policies and programs: meet the needs of Quebec communities and regions by drawing up policy directions, programs, initiatives, policies and guidelines that are adapted and timely.
  
  
• Representation and influence: ensure that the realities of Quebec regions and communities are taken into account in the government's directions and programs, and enable them to grasp more effectively such business and development opportunities as may stem from national initiatives. This translates, for instance, into access to Canada-wide funds and programs and industrial and regional spinoffs from large-scale government projects.
  
  
• Co-operation and collaboration: give Quebec regions and communities the opportunity to take advantage of coherent, effective, concerted action when issues, needs or opportunities arise that can benefit from federal collaboration or co-operation with non-federal agencies, or when such collaboration is necessary or beneficial for the Agency or the Government of Canada.
  

Planning highlights and benefits to Canadians

Over the past few years, the Agency has increased its ability to intervene through studies and representation and dissemination activities, thus meeting the needs of regions, communities and SMEs.

While we observe some encouraging signs of an economic recovery, Quebec regions are facing structural challenges.In view of these numerous challenges (globalization, shortage of skilled labour, etc.), the Agency intends to give priority to strengthening the foundations of future, sustainable prosperity.

The Agency will take steps to generate and disseminate knowledge on regional development challenges, issues and best practices so as to strengthen regional economic development agents' capability and support their collaboration. In a longer-term perspective, these economic agents are expected to develop strategies to increase innovation capability, facilitate globalization and stimulate SMEs' investment.

In this way, the Agency will be in a position to guide Quebec's regions, enterprises and communities more effectively to face the challenges of the economy of tomorrow.

2.2.7 Program activity: Internal services

This program activity supports the achievement of the Agency's strategic outcome.

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations. For the Agency, these groups are:

• Governance and management support
• Resource management services
• Asset management services.

Internal services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Internal services lead to greater efficiency during program delivery and thus contribute to the provision of quality services for Canadians.

2.3 Performance measurement strategy

The performance measurement strategy applied at the Agency is based on the systematic observation of outcome indicators identified in its performance measurement framework. These indicators will be used to conduct ongoing measurement of targeted outcomes and provide material for the Agency's strategic decision-making during fiscal year 2010-2011. Among the indicators that will be tracked are both output (activity) indicators and outcome indicators.

Owing to their nature, anticipated outcomes will occur over a relatively long period of up to five years. Most will not be observable in the year in which disbursement is made. For instance, it is often only after two years that an enterprise's expected increase in sales fully materializes following an investment carried out with Agency assistance. That is why the Agency's performance measurement strategy is spread over a five-year horizon and why the yearly performance measurement reports will, in the initial years, be limited to outputs, immediate outcomes and intermediate outcomes.

The Agency also has a performance measurement strategy geared to the transitory nature of the main measures in Canada's Economic Action Plan.

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