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

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Message from the Minister responsible for the Agency

I am pleased to submit the Report on Plans and Priorities 2011-12 of the Economic Development Agency of Canada for the Regions of Quebec.

Over the past two years, the Agency has taken unprecedented steps to support communities  affected by the global economic crisis. Implementation of the Canada’s Economic Action Plan (CEAP) enabled us to create employment, facilitate enterprises’ access to credit and support economic growth. The Economic Development Agency of Canada for the Regions of Quebec has played a central role in developing and implementing these measures aimed at mitigating the impact of the crisis on the regions.

The economy remains the top priority of the Government of Canada. This is why, over the coming year, we must continue to focus on economic growth, while seeking to re-establish the fiscal balance so as to maintain the sound budgetary situation that distinguishes our country from so many others.

To that end, the Agency has set two priorities for action: to make Quebec communities stronger, and to help SMEs become more competitive. Through the Temporary Initiative for the Strengthening of Quebec’s Forest Economies (TISQFE), the Agency will provide significant support for diversification of communities affected by the forestry crisis.

The strength of regional economies is central to the Agency’s mandate. I invite you to read through this Report, which presents the Agency’s priorities and expect results in 2011-12 in order to contribute to the development and outreach of Quebec’s communities.

The original version was signed by

Denis Lebel
Minister of Transport, Infrastructure and Communities and Minister of the Economic Development Agency of Canada for the Regions of Quebec

Section 1 - Agency Overview

1.1 Summary information

1.1.1 Raison d’être

Object

Under its Act, which came into effect on October 5, 2005, the object of the Agency is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate. In carrying out its object, the Agency shall take such measures as will promote co-operation and complementarity with Quebec and communities in Quebec.

Vision

In line with its object, the Agency aims for all Quebec communities and SMEs to participate to their full potential in the economy of tomorrow, building on their own assets. In the long term, they will be more competitive and innovative.

1.1.2 The Agency in action

Pursuant to its mandate, the Agency aims to increase communities’ vitality and reinforce the competitiveness of Quebec’s enterprises and regions. Through its 14 business offices and its advisors, it covers all areas of Quebec, where it acts primarily in relation to small and medium-sized enterprises (SMEs) and non-profit organizations (NPOs). The Agency offers financial assistance as well as information, accompaniment and study services, while referring clientele as required to other federal departments and agencies. The Agency also encourages communities in their mobilization and recovery efforts so as to help them diversify their economies.

The Agency funds different NPOs, including Community Futures Development Corporations (CFDCs), Community Economic Development Corporations (CEDCs) and Business Development Centres (BDCs) in order to foster economic development.

The Agency also funds two Canada Business Network service centres which provide entrepreneurs with business information services and referrals to specialized resources: Info entrepreneurs¹ in Montreal and Ressources Entreprises² in Quebec City.

Regular programs:

• Community Diversification
• Business and Regional Growth
• Regional Development Research

Canada-wide program implemented in Quebec by the Agency:

• Community Futures Program (CFP)

1.2 Contribution to the Federal Sustainable Development Strategy

The Economic Development Agency of Canada for the Regions of Quebec is a participant in the Federal Sustainable Development Strategy (FSDS). The FSDS represents a step forward for the Government of Canada by including environmental sustainability and strategic environmental assessment as an integral part of its decision-making processes.

The Agency contributes more specifically to two themes of the FSDS:

Addressing climate change and air quality

Shrinking the environmental footprint – Beginning with government.

Further information on Agency activities in support of sustainable development are available in Sections 2, 3 (“Greening government operations” table) and 4 of the RPP, and at www.dec-ced.gc.ca/eng/agency/environmental-affairs/environment.html.

Additional information on the FSDS is also available on the Environment Canada Website at www.ec.gc.ca/dd-sd/default.asp?lang=En&n=C2844D2D-1.

Legend for icons representing the four FSDS themes

Theme I

Addressing climate change and air quality

Theme II

Maintaining water quality and availability

Theme III

Protecting nature

Theme IV

Shrinking the environmental footprint – Beginning with government

1.3 Strategic outcome and Program Activity Architecture (PAA)

To fulfil its mandate, the Agency aims to attain one strategic outcome: “A competitive and diversified economy for the regions of Quebec.” The following table presents the Agency’s PAA and shows the full framework of program activities and subactivities, as well as their contribution to the strategic outcome. The PAA was revised since the last RPP so as to ensure even more effective reporting, and has been in effect since April 6, 2010.

Strategic outcome	Program activity	Program subactivities	Internal services
Quebec regions have a competitive, diversified economy	Community development	Community mobilization Local and regional enterprises Tourism and community facilities	Governance and management support Resource management services Asset management services
	Infrastructure	Water quality Roads and public transit Urban or regional projects Special infrastructure-dedicated programs
	Special intervention measures	Community adjustment to economic shocks Community adjustment to natural disasters SOLELY AS REQUIRED, AD-HOC FUNDING
	Enterprise competitiveness	Enterprises’ strategic capability Strategic enterprises
	Competitive positioning of sectors and regions	Growth poles International promotion of regions
	Policies, programs and initiatives	Analysis and research Policies and programs Representation, influence and collaboration

This year’s Report sets out the plans and priorities in line with the components of the PAA. Further information on the Agency’s strategic outcome is given in Section 2.

The icon placed alongside Community development and Enterprise competitiveness indicates that those program activities include elements applicable to the FSDS, and more specifically to Theme I, Addressing climate change and air quality.

The icon alongside Internal services indicates that this program activity comprises elements associated with Theme IV of the FSDS, Shrinking the environmental footprint – Beginning with government.

1.4 Planning summary

Human resources planning is carried out in the context of overall Departmental planning. Tools have been developed to help managers evaluate their current and future human resources needs, highlighting in particular any gaps that may exist between current capabilities and operational challenges as anticipated over the next three years.

This section presents planned financial resources (grants and contributions, and operating expenditures) and human resources (expressed as full-time equivalents, or FTEs), along with a summary table portraying Agency planning for the next three fiscal years. Additional information is presented in Section 2.

Financial and human resources

For its strategic outcome and each of its program activities, the Agency has established results targets. But economic development largely depends, on the one hand, on local and regional enterprises and stakeholders which design and execute the projects the Agency supports and, on the other hand, on the strength of the economic recovery. The business opportunities arising from the recovery will influence the quantity, scale, timetable and success rate of the projects the Agency supports.

Planning Summary Table³

Over the past two years, the Agency has received funding under Canada’s Economic Action Plan (CEAP) for implementation of different initiatives, such as the Community Adjustment Fund (CAF), the Recreational Infrastructure Canada (RInC) program and the Contribution program to supply the Municipality of Shannon with drinking water.⁸ As planned, CEAP will terminate on March 31, 2011, except for RInC, which will terminate on October 31, 2011, so the Agency will revert to its regular budget base.

The decrease in planned spending within the Agency’s regular budget base is attributable to the termination over the next few years of funding for such temporary initiatives as the Support Initiative for International Cruise Development and the Roadmap for Canada’s Linguistic Duality Economic Development Initiative, and the completion of large-scale projects, such as construction of Montreal’s new Planetarium and implementation of broadband telecommunications networks.

1.5 Contribution of priorities to strategic outcome

The Agency has selected four priorities for fiscal year 2011-12: two program priorities, and two management priorities. These are in line with those presented in the Report on Plans and Priorities 2010-11.

Program priorities:

• Make Quebec communities stronger
• Help SMEs become more competitive

Management priorities:

• Improve the integrated planning approach
• Update policy directions and develop new programs
  

Priorities represent the areas on which the Agency has decided to focus. It allocates part of its resources to them on the basis of Government of Canada priorities, targeted Departmental results and the regions’ socio-economic challenges. The Agency’s overall intervention is covered in Section 2, which presents total planned spending and results by program activity.

Overview of contribution of priorities to strategic outcome: A competitive and diversified economy for the regions of Quebec

1.5.1 Program priorities

Instability on financial markets, which limits access to funding, competition from emerging nations and the strong Canadian dollar are among the factors affecting Quebec SMEs and communities. In this economic context, it is essential for the Agency to continue supporting SMEs and communities. The Agency therefore intends to pursue its intervention aimed at supporting the diversification of regional economies, backing the creation and development of Quebec SMEs and helping them become more competitive.

Priority #1: Make Quebec communities stronger

To continue fulfilling its economic development mandate, the Agency wishes to support the implementation of projects likely to energize Quebec regions and communities. To that end, the Agency focusses on:

• entrepreneurship, creation and development of SMEs
  
  SMEs contribute to fostering the vitality of communities and regions, as well as economic growth in the regions. Because it recognizes the importance of their role, the Agency will support projects for the creation and development of SMEs, as well as providing support for entrepreneurship services projects.
  
  
• diversification of communities affected by the forestry crisis
  
  Temporary Initiative for the Strengthening of Quebec’s Forest Economies (TISQFE)
  In 2011-12, the Agency will support, through contributions totalling $22.5 million, projects that will help reinforce and increase economic activity in areas affected by the forestry crisis in order to create and maintain employment there, and will pay special attention to SMEs established in the affected communities so as to enhance their performance.

Priority #2: Help SMEs become more competitive

To fulfil its economic development mandate, the Agency intends to provide direct support for projects likely to meet challenges specific to SMEs. Thus, to help SMEs operate in an increasingly competitive market and to reinforce their productivity and performance, the Agency focusses on:

• enhancement of productivity
  The Agency will support enterprises’ projects in the areas of production management, procurement and distribution logistics, thus contributing to enhancing their productivity and performance.
• development and commercialization of innovative products
  The Agency will support projects likely to upgrade enterprises’ performance with respect to commercial enhancement of technology and innovation, thus contributing to improving their productivity and competitiveness.
• technology transfer
  The Agency will support projects likely to foster activities involving transfer of technological expertise held by institutions and other research agencies to SMEs and intensify links between the former and enterprises, thus contributing to enhancing enterprises’ competitiveness and performance.
• enhancement of opportunities on international markets
  The Agency will support projects likely to reinforce enterprises’ capability to carry through their internationalization efforts successfully. To that end, it will help enterprises identify and develop new markets, commercialize their products and services more effectively on international markets and develop profitable business relations and partnerships, thus enhancing their global competitiveness.

1.5.2 Management priorities

The management priorities for 2011-12 are in line with those already indicated in the Agency’s Report on Plans and Priorities 2010-11. They contribute to fostering certain business practices, so as to ensure sound management of public funds and report more effectively on the Agency’s results.

Priority #3: Improve the integrated planning approach

The latest report of the Clerk of the Privy Council to the Prime Minister stresses that integrated planning is the cornerstone of renewal of the Public Service. In it, the Clerk emphasizes the need to integrate planning in Departmental activities and ensure that the plans contribute to guiding decisions on resources.

The Agency recognizes the need to improve its integrated planning approach. In that regard, it will build on the efforts invested over the past year in integrating risk management and performance information in the planning process.

To achieve this priority, the Agency intends to take concrete steps to integrate more effectively all dimensions of planning (strategic and operational) and ensure that the approach is carried out in a timely manner.

Priority #4: Update policy directions and develop new programs

To be even more effective in helping Quebec regions and enterprises meet the challenges of tomorrow’s economy, in 2011-12 the Agency will continue the process of reviewing its policy directions, strategic priorities and Program Activity Architecture, and will initiate development of its new programs. This process involves rigorous analysis of trends and economic issues in order to ensure that Agency intervention is in line with government priorities and geared to the new realities, thus enabling enterprises to enhance their performance and regions to be more dynamic.

1.6 Analysis of risks

In its desire to attain its results, the Agency has to have an overview of the changing factors that have a marked impact on its environment and to integrate these factors into its decision-making processes so as to respond more effectively to the new needs of Quebec enterprises, communities and regions.

The Agency’s corporate risks are determined through a rigorous approach involving all branches along with senior management. It was in a perspective of evolving internal and external factors that the Agency drew up the profile of its main corporate risks representing the risk sectors most likely to hamper the attainment of anticipated results and affect the Agency’s performance in terms of efficiency and effectiveness of management practices. The mitigation strategies identified will be implemented, and monitored to ensure that the impact of risks is reduced.

1.7 Expenditure profile

Departmental spending trends

[D]

Canada’s Economic Action Plan has had an impact on spending trends in the past few years. In fact, CEAP¹⁰ spending stood at $113.1 million in 2009-10 and is estimated at $188.1 million for 2010-11. As planned, CEAP will terminate on March 31, 2011, except for RInC, which will terminate on October 31, 2011, so the Agency will revert to its regular budget base.

As the spending trend chart shows, the Agency anticipates a decrease in its expenditures from 2011-12 to 2013-14. This decline is attributable to the termination of funding for temporary initiatives over the next few years, as well as the completion of large-scale projects, as listed in Section 1.4. In fact, planned spending falls from $298.9 million in 2011-12 to $242.4 million in 2013-14.

1.8 Estimates by voted item

Estimates by voted item are presented in the Main Estimates and are available on the Treasury Board of Canada Secretariat’s Website at www.tbs-sct.gc.ca/est-pre/20112012/ me-bpd/info/info-eng.asp.

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