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

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Section 2 - Analysis of Program Activities for the Strategic Outcome

This section provides information on the Agency’s strategic outcome 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 priorities and strategic outcome set out in Section 1.

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

The Agency’s strategic 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 outcome contributes to one of the results targeted by the Government of Canada: strong economic growth.

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 dependency on a small number of industries or sectors, these regions or communities are more exposed and vulnerable to market fluctuations. While higher prices for raw materials will stimulate growth for some of them, weak U.S. growth will continue to affect the economy of regions and communities dependent on the forest sector.

For SMEs

Over the past few years, competition from emerging nations and the higher Canadian dollar and have forced SMEs to increase their productivity and innovate in order to remain competitive and profitable. Faced with increased economic integration and the development of global supply chains, many SMEs have adapted by modifying their business models, developing innovative products and conquering new markets. Adjusting to this new competitive reality involves substantial investment. In supporting these SMEs, the Agency is reinforcing their competitiveness and helping the regions develop.

Through the implementation of its program activities, the Agency intervenes with respect to the challenges affecting communities and SMEs that are in line with its strategic outcome.

2.2 Program activities

This subsection presents all the Agency’s program activities, as well as the planned resources and results for each of them.

2.2.1 Program activity: Community development

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
88	152,931	81	136,436	77	114,961

The gradual decrease in the Agency’s planned spending between 2011-12 and 2013-14 is largely attributable to the termination of funding provided under several temporary initiatives.

Program activity expected results	Performance indicators	Annual targets 2011-1211
Communities have capabilities for socio-economic adjustment, and for support for emergence of new entrepreneurs and development of local and regional enterprises. Regions attract tourists from outside Quebec and investment, and this generates economic spinoffs within communities.	Number of communities supported so they can mobilize around development issues	40
	Number of individuals receiving entrepreneurship services	1,500
	Number of local and regional enterprises being developed, maintained or established	430
	Number of tourism products and services being developed, expanded or upgraded	75
	Number of tourism products and destinations being commercialized outside Quebec	50
	Number of growth-generating tourism projects and community infrastructure projects supported	13

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 the establishment of visions, plans and initiatives for development.
• Local and regional enterprises: by assisting communities through entrepreneurship support and the creation, development or maintenance of viable enterprises of local or regional scope.
• Tourism and community facilities: by increasing regions’ ability to attract tourists and skilled individuals.

The Agency intervenes primarily in regard to SMEs and NPOs in Quebec communities and regions through two grants and contributions programs: Community Diversification¹² and the Community Futures Program.¹³

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 had an impact on communities’ vitality, such as the closing of SMEs of local and regional scope, and the drop in the number of tourists from outside Quebec.

To help enterprises become more competitive and dynamic, the Agency intends, along with other economic development stakeholders, to increase support for communities so they become stronger. To achieve this priority, the Agency plans to support entrepreneurship and the creation and development of SMEs, and to back the diversification of communities, particularly, through the TISQFE, those affected by the crisis in the forest sector.

Under the Community Futures Program (CFP), the Agency has received permanent funding, and continues to support local and regional development organizations, including Community Futures Development Corporations (CFDCs), Community Economic Development Corporations (CEDCs) and Business Development Centres (BDCs).

Through the economic development initiative devoted to official language minority communities in Quebec, the Agency intends to support diversification and entrepreneurship initiatives from English-speaking communities.

2.2.2 Program activity: Infrastructure

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
3	342	3	14,844	0	3,648

Planned spending in 2011-12 does not include funds for the Recreational Infrastructure Canada program, a CEAP initiative that has been extended to October 31, 2011. That information was not available at the time this Report was prepared.

In addition to operating expenditures, the Agency plans to spend some $18 million in contributions in 2012-13 and 2013-14 for the contribution program to fund construction of a gas pipeline between Vallée-Jonction and Thetford Mines.

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 (MRIF, announced in 2005), Canada Strategic Infrastructure Fund (CSIF, announced in 2005) and Building Canada Fund (BCF, announced in 2007).

Canada’s Economic Action Plan Initiative

Recreational Infrastructure Canada program

In the 2009 federal budget, the Agency received $80.4 million in funding over two years for the Recreational Infrastructure Canada (RInC) program. In December 2010, the Government of Canada extended the program until October 31, 2011.

RInC is a Canada-wide initiative intended to be a targeted, short-term measure to stimulate the Canadian economy. Its aim is to help reduce the impact of the recent global recession by increasing the overall value of construction activities associated with recreational infrastructure. RInC-funded projects primarily involve modernizing, repairing, replacing or expanding existing recreational infrastructure, such as swimming pools, arenas and playing fields. In Quebec, the program is implemented in partnership with the Quebec government.

RInC expected results	Performance indicators	Annual targets 2011-12
Increase in economic opportunities	Demonstration of the link between projects and economic opportunities	The impact is demonstrated through examples or case studies.
Partnership with Quebec and communities	Level of investment by other participants (province, municipalities, etc.) compared with the federal contribution	For each $1 of federal contribution, at least $2 comes from other partners.
Increase in construction activities associated with recreational infrastructure	Number of projects carried out successfully	As per agreement with Quebec government

Planning highlights and benefits to Canadians

By supporting the implementation of different infrastructure programs, the Agency will contribute, among other things, to increasing the number of households that have access to new drinking water and wastewater infrastructure. Planning highlights and expected results with respect to the MRIF, CSIF and BCF are to be found in Infrastructure Canada’s Report on Plans and Priorities.¹⁴

2.2.3 Program activity: Special intervention measures

Program activity summary

The termination of funding under the Community Adjustment Fund, a CEAP initiative ending on March 31, 2011, means the Agency no longer has funds dedicated to this program activity. Special intervention measures provide assistance for communities and regions facing major economic shocks or natural disasters. In those situations, if it should receive additional dedicated funding from the Government of Canada, the Agency implements special adjustment measures, on a temporary basis, to enable communities to sustain their economic activity and take steps that will help them find a new balance or regain economic stability.

This program activity has two goals:

• Communities’ adjustment to economic shocks: by facilitating the definition and implementation of development and diversification opportunities in communities affected by the disappearance of major sources of employment. The Agency assists communities and regions facing major economic shocks.
• Communities’ adjustment to natural disasters: by facilitating the adjustment of communities facing natural disasters.

2.2.4 Program activity: Enterprise competitiveness

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
85	93,702	78	91,371	74	78,258

 

Program activity expected result	Performance indicators	Annual targets 2011-1215
Enterprises assisted are high-performance and competitive.	Number of enterprises supported in strategic management, market development or value chain management	1,150
	Number of innovative enterprises involved in an innovation management approach	200
	Number of innovative enterprises in startup or pre-startup phase	100

Program activity summary

This program activity enables enterprises to improve their performance and competitiveness by increasing their productivity and profitability, thus contributing to creating conditions conducive to sustainable growth.

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

• Development of enterprises’ strategic capabilities: by improving capabilities with respect to management, innovation, adoption of advanced technology, market development, and integration with globalized production chains; and by encouraging in particular 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 pre-startup and startup of innovative enterprises which are active in a region’s priority niches 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 program¹⁶.

Planning highlights and benefits to Canadians

Beyond the uncertainty generated by the economic situation, Quebec SMEs and regions will—in order to achieve their full growth potential—have to meet such globalization-related challenges as greater productivity, enhanced capabilities for development and commercialization of innovative products and processes, and development of new markets. The Agency will use the tools available to it to help enterprises improve their performance and increase their competitiveness.

The Agency’s intervention with respect to Enterprise competitiveness is in line with the Help SMEs become more competitive priority. To pursue this priority, the Agency intends in particular to support SMEs in production management and in commercialization of innovative products and development of new markets. Also, through its support for the startup of innovative enterprises, the Agency is acting in line with the Make Quebec communities stronger priority.

In addition, through the economic development initiative devoted to official language minority communities in Quebec, the Agency intends to support projects aimed at supporting the competitiveness of enterprises from English-speaking communities.

2.2.5 Program activity: Competitive positioning of sectors and regions

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
11	22,744	10	21,793	9	18,100

 

Program activity expected result	Performance indicators	Annual targets 2011-1217
Sectors and regions enhance their competitive positioning.	Number of clusters and networks in development in niches defined by business offices	15
	Number of institutions supported for performing technology transfer in co-operation with enterprises	10

Program activity summary

This program activity aims to improve regions’ international competitiveness by showcasing 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, by primarily supporting innovation and networking of knowledge players, and encouraging technology enhancement and transfer.
• Enhancement of the international competitiveness of Quebec regions, by supporting 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 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.

Some of the Agency’s actions with regard to Competitive positioning of sectors and regions are in line with the Help SMEs become more competitive priority. To pursue this priority, the Agency intends in particular to support SMEs in technology transfer activities.

2.2.6 Program activity: Policies, programs and initiatives

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
44	5,675	41	5,436	39	5,209

 

Program activity expected results	Performance indicators	Annual targets 2011-12
The Agency’s policies, programs and initiatives are aimed at reinforcing the economy of communities and regions.	Number and nature of research projects carried out in connection with regional development issues	Research projects are carried out in connection with regional development issues.
	Number and nature of policies developed and initiatives implemented	Policies, programs and initiatives correspond to the development needs of Quebec enterprises and communities.
	Number of events (e.g., missions, tours, awareness days, etc.) piloted by the Agency in Quebec to promote SMEs’ capabilities	Under the Industrial and Regional Benefits Policy, events are held in co-operation with partners in order to meet needs established by prime contractors.

Program activity summary

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

Three goals support this program activity:

• Analysis and research: by helping 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: by meeting the needs of Quebec communities and regions by drawing up policy directions, programs, initiatives, policies and guidelines that are adapted, coherent and consistent with government priorities.
• Representation, influence and collaboration: by raising Quebec regions’ and communities’ awareness of federal government priorities, programs and initiatives with respect to economic development.

Planning highlights and benefits to Canadians

The Agency generates and disseminates helpful knowledge for the business world, associations and institutions, enabling them to act with regard to economic development in a complementary, synergistic and effective manner.

Through its ongoing efforts, the Agency puts forward policies, programs and initiatives which reflect government priorities, trends, challenges and the development needs of Quebec’s regions. Adapted, coherent, effective federal action stimulates communities’ and regions’ economic activity, and support for SMEs enables them to develop, and to generate wealth locally, thus fostering strong economic growth.

The number of major projects planned by the Government of Canada over the next few years will create a larger number of opportunities for Quebec enterprises to integrate the value chains of global prime contractors or develop their international markets. The Agency will expend effort to make Quebec SMEs’ capabilities known to prime contractors seeking suppliers or partners in Canada.

2.2.7 Program activity: Internal services

Human resources (FTEs) and planned spending (in thousands of dollars)
2011-12		2012-13		2013-14
FTEs	Planned spending	FTEs	Planned spending	FTEs	Planned spending
168	23,509	156	22,882	147	22,243

Program activity summary

This program activity supports the Agency’s strategic outcome. Internal services are groups of related activities and resources that are administered to meet the needs of programs and other corporate obligations. They include only those activities and resources that apply across an organization, and not those provided specifically to a program. They lead to higher efficiency in program delivery, thus contributing to quality services for Canadians.

For the Agency, these groups are:

• Governance and management support, comprising the following services:
  • Management and monitoring¹⁸
  • Communications
  • Legal services
• Resource management services, comprising the following services:
  • Human resources management
  • Financial management
  • Information management
  • Information technology
  • Other administrative services
• Asset management services, comprising the following services:
  • Real property
  • Materiel
  • Acquisitions.
    

Planning highlights and benefits to Canadians

In line with the greening of government operations, the Agency contributes to attaining targets with respect to the following elements:

• Surplus electronic and electrical equipment
• Printing unit reduction
• Paper use
• Green meetings
• Green procurement

Further information on Agency activities aimed at shrinking the environmental footprint are available in the table in Section 3 of the RPP entitled “Greening of government operations.”

2.3 Performance measurement strategy

The Agency’s performance management strategy is based on the systematic observation of outcome indicators as defined in its performance management 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 2011-12. Among the indicators that will be tracked are both output (activity) indicators and outcome indicators.

Owing to their nature, anticipated outcomes will occur within a variable timeframe. 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 following an investment made with Agency assistance materializes. 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.

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