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Canada’s economic performance remains the most stable among the G7 countries, despite ongoing volatility in global markets. Our Government’s solid economic, financial and fiscal foundations helped to underpin this position of strength, and we remain prepared to respond in a flexible, pragmatic manner should external pressures threaten our economy.
In 2011, Canadians gave our government a clear mandate to continue its successful work to create jobs and stimulate the economy. In 2012-13, Phase II of Canada’s Economic Action Plan – A Low-Tax Plan for Jobs and Growth – will follow through on this commitment by supporting initiatives that continue to drive job creation and economic activity and provide support to people and communities throughout Canada.
Atlantic Canada is on the cusp of tremendous opportunities that will be generated by the recently announced shipbuilding work to be carried out under the National Shipbuilding Procurement Strategy, which is expected to create thousands of new jobs and provide significant opportunities for businesses throughout the region.
In 2012-13, the Atlantic Canada Opportunities Agency (ACOA) will be key to delivering on our Government’s commitments in Atlantic Canada and ensuring that the region’s small and medium-sized businesses are well positioned to participate in, and benefit from, activity related to the shipbuilding work and other major projects in the region, such as the development of Atlantic Canada’s clean and renewable energy sector.
Additionally, ACOA will continue to work with Transport Canada to advance the Atlantic Gateway by promoting Atlantic Canada as a preferred business partner and the gateway to the North American market.
I am pleased to present ACOA’s 2012-13 Report on Plans and Priorities, which outlines the Agency’s objectives for continued economic growth and prosperity in this region.
The Honourable Keith Ashfield
Minister of Fisheries and Oceans and Minister for the Atlantic Gateway
Our Government, through ACOA, provides real, made-in-Atlantic Canada solutions that respond to the region’s needs and build on its strengths.
In the coming years, significant opportunities will unfold for Atlantic Canada as important new initiatives, such as the National Shipbuilding Procurement Strategy and the development of the region’s hydroelectric capacity, get under way.
Under our Atlantic Shipbuilding Action Plan, we will work with partners and stakeholders, including other federal departments, other levels of government, private-sector organizations and industry, to ensure that Atlantic Canada’s small and medium-sized businesses are prepared to capitalize on the enormous potential created by the shipbuilding strategy.
In 2012-13, ACOA will focus on initiatives that improve the productivity and competitiveness of the region’s small and medium-sized enterprises by promoting enhanced business skills as well as the use of new technologies and the commercialization of local research and development.
The Agency will continue to support the development of an Atlantic Energy Gateway to promote the region’s capacity for clean and renewable energy, including energy produced from wind, biofuel and tidal sources.
In the coming year, our Government will continue to work with communities and provincial governments to develop economic opportunities at a local level. The Agency will support resource-based industries, and the rural economies that depend on them, by investing in activities that improve the competitiveness of the region’s forestry industry, diversify its agricultural sector, increase the sustainability of the fishery and further advance technologies related to mining and energy.
In 2012 and beyond, ACOA will continue to identify opportunities for Atlantic Canada’s economic advancement and provide efficient, effective programs and services that are aligned with our Government’s focus on operations that deliver results to the people of Atlantic Canada.
The Honourable Bernard Valcourt
Minister of State (Atlantic Canada Opportunities Agency) (La Francophonie)
ACOA works to create opportunities for economic growth in Atlantic Canada by helping small and medium-sized enterprises (SMEs) to become more competitive, innovative and productive; by working with communities to develop and diversify local economies; and by championing the region’s strengths in partnership with Atlantic Canadians. It plays an important role in developing and supporting policies and programs that strengthen the region’s economy. This work addresses the Agency’s mandate “to increase opportunity for economic development in Atlantic Canada and, more particularly, to enhance the growth of earned incomes and employment opportunities in that region.” 1
Established in 1987, ACOA is the federal department responsible for the Government of Canada’s economic development efforts in the provinces of New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador.
ACOA’s head office is in Moncton, New Brunswick. Regional offices are located in all four provincial capitals in Atlantic Canada, each led by a vice-president. The Agency also provides services via a range of local field offices throughout the four provinces. Through its Ottawa office, ACOA ensures that Atlantic Canada’s interests are reflected in the policies and programs developed by other departments and agencies of the federal government.
Although the Agency’s policies and program tools have evolved since its inception, the overall goal remains constant. ACOA remains dedicated to helping the Atlantic region realize its full economic potential in terms of productivity, competitiveness and growth. This is achieved by addressing structural changes in the economy, helping communities and businesses to overcome challenges, and finding new opportunities for growth. ACOA is committed to helping the region make the transition to a more innovative, productive and competitive economy.
The diagram below illustrates ACOA’s strategic outcome – a competitive Atlantic Canadian economy (darkly shaded box) – and its Program Activity Architecture (PAA). The PAA is based on the results of policy research and analysis, the periodic assessment of program relevance and performance, ongoing dialogue with stakeholders in the region, and the priorities and directions of the Government of Canada. ACOA’s PAA for 2012-13 comprises four program activities (lightly shaded boxes) and 13 program sub-activities (white boxes).
All organizational priorities support the Agency’s strategic outcome: A competitive Atlantic Canadian economy. This outcome reflects the Agency’s legislative purpose to enhance the growth of earned incomes and employment opportunities in Atlantic Canada.
Priority | Type2 | Program Activity |
---|---|---|
Respond to the unique economic development needs of both rural and urban areas of Atlantic Canada. | New | Enterprise Development Community Development Policy, Advocacy and Coordination |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Ensure that Atlantic Canada’s labour force has the appropriate mix of skills, experience and certification required to address emerging opportunities. | New | Enterprise Development Community Development Policy, Advocacy and Coordination |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Contribute to the delivery of federal priorities and commitments identified through legislation, the federal budget and other authorities. | New | Enterprise Development Community Development Policy, Advocacy and Coordination Internal Services |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Focus ACOA’s programs and services on initiatives that will advance the productivity of Atlantic Canadian businesses, thereby improving the competitiveness of the region’s SMEs and communities, and enabling them to capitalize on major projects and opportunities in the region. | Ongoing | Enterprise Development Community Development Policy, Advocacy and Coordination |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Increase the innovation capacity within Atlantic Canada by building on the Agency’s success at engaging stakeholders and facilitating partnerships. Focus on the commercialization of research and development (R&D) outputs. | Ongoing | Enterprise Development Policy, Advocacy and Coordination |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Provide leadership in helping businesses and communities in Atlantic Canada to succeed in a global marketplace. | Ongoing | Enterprise Development Community Development Policy, Advocacy and Coordination |
Why is this a priority?
Plans for meeting the priority
|
||
Priority | Type | Program Activity |
Continually improve the Agency’s management agenda in order to provide excellent advice to government and excellent service to Canadians. | Ongoing | Enterprise Development Community Development Policy, Advocacy and Coordination Internal Services |
Why is this a priority?
Plans for meeting the priority
|
ACOA’s Operating Environment
The regional, national and global economic landscape is constantly evolving. ACOA must operate within these changes and respond to current and emerging influences that may affect its economic-development programming and initiatives. To be proactive in identifying risks and opportunities, ACOA anticipates and assesses external economic factors that could impact the design and delivery of its programs and services and the achievement of its strategic outcome. The Agency also identifies factors and risks that could adversely affect its ability to manage internal operations in an effective manner. In response to the identified strategic risks, the Agency has designed and implemented mitigating measures to reduce their impact and likelihood of happening.
The following is an overview of Atlantic Canada’s economy, an assessment of external and internal factors that have an effect on the Agency, and a summary of ACOA’s key risks.
Economic Outlook
In 2011, Atlantic Canada experienced moderate economic growth after emerging from the recession in 2010. The provincial governments’ fiscal position and waning consumer spending limited the economic expansion. A survey of private-sector forecasters3 revealed that real gross domestic product (GDP) is estimated to have increased by 2.0% in 2011. Soft economic activity resulted in modest employment gains, with the unemployment rate hovering just above the 10% mark for most of the year.
It is expected that economic growth will remain moderate in Atlantic Canada during 2012, as the economic expansion will continue to be limited by soft international economic conditions, especially those in the United States, weak construction activity and the fiscal position of the provincial governments. According to a survey of private-sector forecasters, real GDP is projected to increase by only 1.7% in 2012.
More specifically, growth in the U.S. economy is expected to expand by only 1.8%4 in 2012, according to the International Monetary Fund. There are still concerns that the U.S. economy could end up in a period of very modest growth over the short term. The inability of the U.S. economy to create jobs at a stronger pace represents a significant risk to the economic outlook. Consumers will curb spending if labour market conditions do not improve.
All Atlantic Provinces are expected to face deficits in 2012-13 and the provincial fiscal situations remain a concern going forward. Their focus on efforts to reduce fiscal deficits will influence the Provinces’ ability to encourage increased economic performance over the short and medium terms.
Construction activity in the Atlantic provinces is expected to weaken in 2012. Public infrastructure program spending is declining, and activity on energy projects such as the Deep Panuke natural gas project is either completed or winding down.
External Factors
The major risks for Atlantic Canada’s economic outlook are mostly external. Prominent among these risks is the fact that the U.S. economic recovery remains fragile. Weak job creation, high debt loads and lower net worth may continue to constrain household spending south of the border. Lower-than-expected economic growth in the U.S. will translate into weaker exports since most exports from Atlantic Canada are destined for the American market.
Internal Factors
ACOA will transform its internal business processes in order to become more effective and efficient. It will manage change while remaining focused on service delivery.
In order to continue to develop highly skilled employees to effectively and efficiently deliver on the priorities of the federal government, the Agency will continue to foster renewal and learning at every level of the organization.
The following key risks were determined through internal reviews by senior management and interviews with middle management and staff, along with an analysis of relevant documents. These risks were validated with management and the implementation of risk responses will continue to be monitored regularly.
Key Risk | Risk Response | Linkage to PAA |
---|---|---|
Management Information Risk There is a risk that existing tools may not provide timely access to sufficient and appropriate information needed to support effective decision making. |
Management will mitigate this risk with the continued use and improvement of the executive dashboards and the governance around results interpretation and action required. Further developments in the Data Collection Strategy and the Performance Measurement Framework will also play a key role in mitigating the management information risk. |
Enterprise Development Community Development Policy, Advocacy and Coordination Internal Services |
Technology Risk There is a risk that the Agency’s IT function may have limited capacity to provide development and support for an up-to-date suite of modern and compatible tools, which may affect the effectiveness of portfolio management and timely decision making. |
Management will mitigate this risk through its ACOA Committee on Information Management and Technology (ACIMT). ACIMT is the primary governance committee for ACOA’s IT function and will be addressing the alignment of ACOA IT investments with its program delivery and making recommendations to the executive committee. |
Enterprise Development Community Development Policy, Advocacy and Coordination Internal Services |
People Management Risk There is a risk that significant organizational changes may result in low morale, lack of motivation and loss of corporate knowledge, all of which could affect productivity. |
Management will mitigate this risk through its People Management Program and Respectful Workplace Initiative, and by encouraging a supportive management culture at ACOA. |
Enterprise Development Community Development Policy, Advocacy and Coordination Internal Services |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
307.5 | 298.6 | 296.6 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
624 | 614 | 614 |
Performance Indicator | Target |
---|---|
Impact on Atlantic Canada's GDP for every $1 of ACOA expenditure in direct support of business | Increase of $4.50 in GDP for every dollar of ACOA expenditure5 |
Labour productivity growth of ACOA-assisted firms | An annual variation in labour productivity three percentage points higher than that of comparable firms |
Program Activity | Forecast Spending 2011-12 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2012-13 | 2013-14 | 2014-15 | |||
Enterprise Development | 168.3 | 175.6 | 175.1 | 175.2 | Strong Economic Growth |
Community Development | 105.1 | 89.9 | 82.6 | 80.5 | |
Policy, Advocacy and Coordination | 14.3 | 11.3 | 11.3 | 11.3 | |
Total Planned Spending | 287.7 | 276.8 | 269.0 | 267.0 |
Program Activity | Forecast Spending 2011-12 |
Planned Spending | ||
---|---|---|---|---|
2012-13 | 2013-14 | 2014-15 | ||
Internal Services | 40.9 | 30.7 | 29.6 | 29.6 |
Total Planned Spending | 328.6 | 307.5 | 298.6 | 296.6 |
The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada’s commitment to improving the transparency of environmental decision making by articulating its key strategic environmental goals and targets. ACOA ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the federal Strategic Environmental Assessment (SEA) process, any new policy, plan or program initiative includes an analysis of its impact on attaining the FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the department’s commitment to achieving the FSDS goals and targets.
ACOA contributes to Theme I (Addressing Climate Change and Air Quality) and Theme IV (Shrinking the Environmental Footprint – Beginning with Government) as denoted by the visual identifiers below.
Theme I:
Addressing Climate Change
and Air Quality
Theme IV:
Shrinking the Environmental Footprint -
Beginning with Government
These contributions are components of the following program activities and are further explained in Section II:
Additional details on ACOA’s activities to support sustainable development can be found on the Agency’s website.
Complete details on the FSDS can be found on Environment Canada’s website.
For fiscal year 2012-13, the Agency’s available funding in the Main Estimates is $307.5 million. This represents a decrease of $21.1 million (6%) from the 2011-12 forecast spending and is attributable to a number of normal business practices and procedures, including:
Planned spending for the following year, 2013-14, will decrease by $8.9 million (3%) compared with that of 2012-13 due to:
Forecast spending for 2014-15 indicates a decrease of $2.0 million (1%) compared with that of 2013-14 and is attributable to the second instalment of funding for community economic development priorities in New Brunswick, which was included in the previous year’s spending.
The figure below illustrates the Agency’s actual and planned spending trend from 2009-10 to 2014-15.
Excluding initiatives under Canada’s Economic Action Plan, which represent actual spending of $64.0 million in 2009-10, $81.3 million in 2010-11, and forecast spending of $3.3 million in 2011-12, the Agency’s spending levels remain relatively constant from fiscal year 2009-10 to fiscal year 2014-15.
For information on the Agency’s appropriations, see the publication 2012-13 Main Estimates.