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ARCHIVED - RPP 2006-2007
Atlantic Canada Opportunities Agency
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Section II – Analysis of Program
Activities
by Strategic Outcome
Strategic Outcome – Enterprise Development
Improved growth and competitiveness of Atlantic SMEs,
leading to increased productivity, earned incomes and job creation.
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Expected Results: Increased earned income and employment opportunities in Atlantic Canada. |
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Indicators: |
Annual Target: (2006-2007) |
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Five-year Targets: (2003-2004 to 2007-2008) |
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Performance Measurement Strategy: Five-year targets will be measured through analysis of data from Statistics Canada and internal systems, using econometric modelling. The annual target will be measured through analysis of Statistics Canada data. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
282.4 |
262.0 |
259.4 |
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Human Resources (FTEs) |
462 |
440 |
440 |
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The region's
economic growth in recent years has been positive, driven mainly by increased exports and investment in infrastructure, new
manufacturing capacity and offshore oil and gas projects. Foreign exports of commodities from Atlantic Canada continue to
increase and, while exports have grown, there is room for expansion, with less than 3%[3]
of the region's SMEs involved in export activities.
There is a transformation to a knowledge-based economy, with the emergence of new sectors in information technology, bioscience and aerospace while, at the same time, resource-based industries are becoming more knowledge-intensive.
Despite this progress, some significant challenges remain, and great opportunities exist for development. One of the most telling indicators of this is that, in a number of sectors, productivity remains significantly lower than in leading countries and other regions of Canada. A higher degree of competitiveness is crucial for Atlantic firms, particularly SMEs, to grow and increase their penetration in export markets.
[3] Source: Statistics Canada, Business Register, Exporter Register, 2003
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Enterprise Development client focus |
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To increase productivity, it is necessary for companies to invest in advanced technologies and worker training, and pay more attention to commercializing the results of research and development (R&D). It is necessary for these firms to become more export-oriented, both to access larger markets and, through exposure to foreign competition, to learn of innovative ways of doing business from technology and marketing perspectives. Among the greatest barriers to the start-up and expansion of SMEs is insufficient access to capital. Breaking down these barriers, in association with public and private sector partners, is a priority.
In 2006-2007, as an initial step, the Agency will continue to restructure its offices to enable a better, more holistic approach to its key themes. This promises to enable single points of contact for many of its clients. Furthermore, the Agency is continuing to enhance the level of engagement between its various areas of functional expertise, for example, by engaging trade expertise in the development of initiatives targeted at key areas such as youth and women.
Through its network of development offices across the Atlantic region, the Agency will continue to work with its clients and
various levels of government, to maximize access to other sources of funding.
It is within this context that the Agency will work in partnership with other stakeholders and industry to improve the growth
and competitiveness of Atlantic SMEs. In 2006-2007 and subsequent years, the Agency will continue to approach its work in
a strategic manner, and will focus on selected key themes; namely, maximizing
the impact of ACOA investments, promoting and supporting improved productivity, sector development strategies, and creating an
environment for new investments. The enterprise development approach will be client-focused, in that it will work with
clients in a holistic manner focusing on their needs rather than promoting various programs and themes.
ACOA regional offices will continue their consultative and outreach work with the business community in order to obtain continual feedback on the effectiveness and relevance of their efforts. Information gathered through its networks, outreach activities and consultations will form the basis on which the Agency will evaluate its priorities on an ongoing basis to provide the best possible support to its clients.
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Program Activity: To improve the region's capacity for economic growth through a variety of mechanisms, including assistance to SMEs to start, expand, or modernize their business; partnering with universities and other institutions to increase the region's research and development capacity, commercialization and productivity; and to promote and participate in the region's transition to the knowledge economy.
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Expected Results: Improved growth and competitiveness of Atlantic SMEs. |
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Indicators: |
Annual Targets: (2006-2007) |
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Performance Measurement Strategy: Analysis of data from Statistics Canada. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
279.6 |
262.0 |
259.4 |
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Human Resources (FTEs) |
440 |
440 |
440 |
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Fostering SME Development and Regional Economic Capacity Building through: |
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ACOA's activities, whether investing in research and development, providing SME skills and training, expanding trade, or promoting foreign direct investment and venture capital, are directed at enhancing the competitive strength of SMEs in Atlantic Canada. Small firms create the larger share (60%) of new jobs in Atlantic Canada, making them critical to economic development[4]. SMEs, unfortunately, have a high failure rate in their first few years of existence, and thus find it difficult to attract capital to start and grow, and to get the right advice. Overcoming these hurdles is one of ACOA's priorities.
The Agency provides assistance to SMEs to help them start, expand or modernize, enabling these firms to increase their productivity and be competitive in the world market. To achieve these results, ACOA will focus on selected key themes; namely, maximizing the impact of ACOA investments, promoting and supporting improved productivity and sector development strategies, and creating an environment for new investments.
[4] The State of Small Business and Entrepreneurship, Atlantic Canada – 2005, Atlantic Canada Opportunities Agency, page 29
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Program Activity: |
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Description: Increase activity in and build capacity for innovation, research and development (R&D) of technologies, products, processes or services, technology adoption/adaptation and commercialization of R&D outputs that contribute to economic growth in Atlantic Canada. |
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Expected Results: Strengthen Atlantic Canada's innovation and commercialization capacity. |
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Indicators: |
Annual Targets: (2006-2007) |
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Five-year Target: |
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Performance Measurement Strategy: Analysis of data from internal systems. |
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* This is an initial target. Data will be gathered throughout 2006-2007, which will provide for the establishment of an appropriate baseline and possible adjustments to the target
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ACOA will continue to advance its innovation strategy through five key themes |
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The focus of innovation is to strengthen the capacity and performance of the Atlantic Canadian economy through the adoption/adaptation of leading-edge technologies, the research and development of new or improved technologies and their commercialization, and the growth of strategic sectors/clusters. ACOA's vision for innovation in Atlantic Canada is a region that is recognized for its innovative capacity and its competitiveness in global markets, with an environment conducive to innovation.
The principal tools available to ACOA to advance its innovation strategy are the Atlantic Innovation Fund, which focuses on accelerating the development of the knowledge-based industry; the Business Development Program, which is used to provide funding for R&D projects via its Innovation element; and the Productivity and Business Skills Initiative, which aims at improving small and medium-sized businesses' competitiveness through a number of activities such as training, hiring skilled personnel, and improving productivity and/or quality. These tools support ACOA's objective of increasing innovation capacity, ultimately leading to productivity improvement. ACOA's investments will, among other things, contribute to leveraging funds toward innovation projects, encourage the development of partnerships for technology development and commercialization, and increase the number of commercialized technologies, products, processes and services.
In 2006-2007, through its Springboard[5] initiative, ACOA will work to engage the
Atlantic Association of Universities (AAU) to enhance the transfer of technology from universities to the private sector. Furthermore,
ACOA will work in collaboration with other government departments engaged in innovation, such as Industry Canada, National
Research Council, and the Canada Foundation for Innovation. A key focus in this work will be to harmonize an approach to
maximizing the effectiveness of federal funding. Proactive development of innovation projects along key sectors will
continue to be an important strategy in maximizing the effectiveness of programming. As well, ACOA will explore
opportunities to work with industry associations in identifying opportunities for developing the innovative capacity within
certain sectors.
[5] Springboard Atlantic Inc. is an association involving 14 AAU members and is supported by ACOA. The focus is on the effective and efficient transfer of technology among universities in Atlantic Canada. It also aims to advance the commercialization of research within both universities and the region's private sector.
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Program Activity:
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Program Sub-activity: Entrepreneurship and Business Skills Development |
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Description: Facilitates projects, other than community economic development or tourism or trade (export development projects), which increase opportunities for Atlantic Canadians to develop the motivation and business skills required to start, sustain or grow their businesses. |
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Expected Results: More Atlantic Canadians with the motivation and skills required to successfully start, sustain or grow a business. |
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Indicators: |
Three-Year Targets: (2005-2006 to 2007-2008) |
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Performance Measurement Strategy: Analysis of data from internal database system. |
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* This indicator was implemented in 2005-2006. Although this indicator has been in use for only a short time, a preliminary target was set, and it will be tracked closely. Additional data will be gathered throughout 2006-2007, which will provide for the establishment of an appropriate baseline, and possible adjustments to the target.
A key to achieving better economic opportunities and growth in Atlantic Canada is to ensure that there are more entrepreneurs and, even more importantly, that owners of SMEs have the business skills needed to succeed and grow their enterprises.
SMEs are at the heart of Atlantic Canada's economy, and in fact over 70% of gross employment created by new firms in Atlantic Canada during the 1989 to 2000 period was in small businesses[6]. ACOA is an advocate of entrepreneurs and has adopted an Entrepreneurship and Business Skills Development Strategy focused on increasing the number of people with the motivation and skills to successfully start, sustain, or grow a business.
The strategy is designed to create an entrepreneurial climate where entrepreneurship is widely perceived as a career option and business skills development is part of the business culture. Much of the work has a clear emphasis on young people and women business owners, with projects spanning various stages of business development, from exploring entrepreneurship to business retention and growth.
[6] The State of Small Business and Entrepreneurship, Atlantic Canada – 2005, Atlantic Canada Opportunities Agency
Recognizing that strong business skills are critical to business survival and growth, ACOA supports initiatives that enhance awareness and adoption of such skills. Increased networking, training and mentoring are some of the developmental tools used to this end. However, business skills development comes with a wide array of challenges. Often, owners of SMEs either are not aware of the bottom-line benefits that can flow from improved competencies, or simply don't have the time or the financial resources required to enhance those skills.
To meet those challenges, in 2006-2007 ACOA will continue to support awareness, promotion and co-ordination activities to change attitudes toward self-employment with special focus on investment in business skills. These activities will go beyond merely encouraging the exploration of entrepreneurship as a career choice, and will get down to the development of the skills needed to allow entrepreneurs to sustain and grow their businesses. Examples include workshops, Web-based business management courses, internships in SMEs, conferences targeting entrepreneurs, mentoring, business advisory and counselling services, and skills development partnerships with universities.
Two key initiatives are:
- The Women in Business Initiative (WBI), which focuses on strengthening the management capabilities and business development skills within women-owned ventures, improving their access to capital and business support services.
- The Young Entrepreneur Development Initiative (YEDI), which provides young Atlantic Canadians who are aspiring or existing entrepreneurs with opportunities to develop business skills.
Key partners and clients are non-commercial entities, including not-for-profit business support organizations, industry associations, educational institutions, other government departments, and similar groups.
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Program Activity: |
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Description: Projects other than community economic development and tourism projects that strengthen the international marketing capabilities of SMEs; assist business to enter international markets (new exporters); and facilitate SMEs improved international business performance (increased sales to existing international markets). |
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Expected Results: Increased export capacity and sales for SMEs in Atlantic Canada. |
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Indicators: |
Annual Targets: (2006-2007) |
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Performance Measurement Strategy: Analysis of data from Statistics Canada, surveys and internal reports. |
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Exporting is one of the nation's leading engines of economic growth. It builds revenues, fuels business opportunities, and generates jobs. Close proximity to the rich markets of the United States and Europe, as well as increased levels of exportable, value-added and knowledge-based goods and services, render Atlantic Canada particularly well suited as a base for exporting.
Exports have grown by more than 130% during the last decade (1994 to 2004)[7]. However, there is room for expansion. With less than 3%[8] of the region's SMEs involved in export activities, ACOA has focused on proactive measures aimed at building the export capacity within Atlantic Canada.
The Agency works both directly and in partnership with other federal departments and the four provincial governments to deliver
its strategic approach to trade development. This approach is focused on four strategic elements: awareness; skills
development; capacity building; and policy, advocacy and co-ordination.
The awareness initiatives promote SME interest in exporting as a growth strategy, enhance the knowledge of current and potential exporters regarding major trade issues and opportunities, and increase awareness within selected export markets of the Atlantic SME export capability.
[7] Source: Statistics Canada, International Merchandise Trade database
[8] Source: Statistics Canada, Business Register, Exporter Register, 2003
ACOA's trade education and skills development activities apply to existing, export-ready and potential exporters, providing training and mentoring tailored to their specific requirements. It also builds a cadre of capable trade consultants in the region. The Agency will continue to increase its focus on women, Aboriginal and young exporters within the region. Key initiatives, including missions and export-readiness training, will address barriers these groups face, and will assist their export development.
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Support for ACOA's trade strategy is provided through: |
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The capacity building element assists companies in international market expansion and product development, and includes the organization of ACOA-led and partnered trade missions to select U.S. and European markets. In 2006-2007 the Agency will increase its efforts and focus on emerging markets and after care and follow-up with exporting Atlantic SMEs. This will be undertaken through various training and research initiatives in collaboration with regional and federal stakeholders and foreign posts. Sectors of focus will include aquaculture, aerospace and defence, and energy.
ACOA's trade strategy incorporates a research agenda focusing on SME export development needs and sectoral export capability.
The Agency will continue to develop Atlantic Canadian emerging sectors through the implementation of sector export strategies
developed both on a pan-Atlantic and regional basis. The advocacy function provides for an enhanced Agency advocacy role in
influencing national and regional policy.
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Program Activity:
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Description: Projects designed to attract foreign direct investment (i.e. encourage foreign corporations to establish/invest in Atlantic Canada). |
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Expected Results: Increased foreign direct investment in Atlantic Canada. |
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Indicators: |
Annual Targets:(2006-2007) |
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Performance Measurement Strategy: Annual targets will be measured through analysis of data from internal reports. |
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Foreign direct investment (FDI) creates jobs and generates revenues; it strengthens economic infrastructure and builds industrial critical mass required to successfully compete in a global economy. Atlantic Canada's share of inward FDI is less than 5% of the national amount, compared with 4% for R&D, 6% of the gross domestic product (GDP), and 7.4% of population.[12] Therefore, the potential for economic growth through FDI in Atlantic Canada is significant.
Greater only than the benefits of FDI in Atlantic Canada is the challenge of attracting it. Success requires a focused strategy and a dedicated champion. As the sole arm of the Government of Canada mandated to work toward a better economic future for the region, ACOA will continue to embrace FDI as a strategic focus and an Agency priority in 2006-2007.
In recognition of the importance of FDI as a vehicle for economic growth, ACOA's Atlantic Investment Strategy is designed to increase FDI in Atlantic Canada through a greater pan-Atlantic co-operative effort in the areas of investment research, awareness and promotion, investment intelligence dissemination, partnerships, and lead development.
[9] Suspect - for marketing purposes, a member of a target group that may only be
known by demographic information
[10]Lead - a qualified response with very limited interaction with an Atlantic
Canadian company
[11]Prospect - a party interested in a particular solution that has been identified
[12] Foreign Direct Investment in Atlantic Canada, Atlantic Province
Economic Council, May 2002
- science, technology, trade and investment missions to key markets
- Team Canada Atlantic missions,
- lead identification and development
- direct marketing and advertising campaigns
- promotion of the region through several marketing initiatives, including trade show and conference co-ordination and participation, and journalist and site selector familiarization tours.
Elements of the Atlantic Trade and Investment Partnership supporting the investment strategy include:
- Investment research -ACOA focuses its research on the identification and analysis of key factors influencing investment location decisions by foreign corporations, and major trends in the international community.
- Information management and dissemination -The Agency identifies investment opportunities and provides timely investment intelligence to partners, including provinces and municipalities, in order to increase foreign direct investor opportunities in Atlantic Canada.
- Awareness and promotion -The Agency carries out a strategic program to increase awareness, among the U.S. and European investment communities, of Atlantic Canada as a profitable location in which to do business.
- Investment partnerships -ACOA creates closer partnerships – such as the Pan-Atlantic Investment Co-ordination Committee – with Investment Partnerships Canada, Foreign Affairs Canada, International Trade Canada, Industry Canada, and the four Atlantic provinces in order to reduce duplication in the research, awareness and promotion, and intelligence dissemination aspects of FDI development. In addition, the partnerships are also directed at the pooling of human and financial resources to create a greater critical mass with regard to investment development activities, as well as marketing Atlantic Canada as a cohesive entity for investment promotion purposes.
- Lead development - the Agency continues to support provincial and federal investment colleagues through the identification of investment leads and prospects. In addition, ACOA undertakes lead generation activities of its own, via advertising, direct marketing, trade fairs, and networking initiatives.
In 2006-2007 the Agency will increase its efforts and focus on lead development. This will be undertaken through various marketing/research initiatives in collaboration with regional and federal stakeholders and foreign posts. Specific efforts will be made to promote the region in key sectors, including IT outsourcing (nearshoring), advanced manufacturing and innovation, to attract inward foreign direct investment.
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Program Activity:
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Description: Projects designed to contribute to increased growth, profitability and wages in the tourism sector through planning, advocacy and market research; product development, marketing and readiness; strategic investment in infrastructure, amenities and facilities; enhancing quality of tourism product; and extending the tourism season or multi-seasonal expansion. |
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Expected Results: Increased growth and competitiveness of tourism industry. |
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Indicators: |
Annual Targets:(2006-2007) |
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Three-year Target: |
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Performance Measurement Strategy: Annual targets will be measured through analysis of data from Statistics Canada. Three-year target will be measured through analysis of data from provincial tourism departments. |
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As an economic sector, tourism offers significant wealth and job creation opportunities for Atlantic Canadians. Tourism represents almost 6% of the region's gross domestic product, generates $3.03 billion in new revenues annually, $500 million in tax revenues and 110,000 jobs for Atlantic Canadians[13].
Tourism demand refers to the activities of persons traveling to, and staying in, places outside their usual environment for not more than one consecutive year. It includes leisure time spent touring and sightseeing, visiting with friends and relatives, or time spent taking a vacation. Tourism demand includes people participating in conventions, conferences and other kinds of business or professional activities. Tourism supply is a composite of service providers that collectively deliver a travel experience. It includes transportation and accommodation operators, restaurant and retail shopping establishments, entertainment and recreation facilities, and other providers of visitor-related services.
ACOA's operational definition of tourism will result in the delivery of a wide and varied range of diverse marketing,
capacity building and capital investment initiatives. As the catalyst for tourism innovation in Atlantic Canada, ACOA's
partnerships with tourism industry associations, private sector groups, provincial and municipal governments, and other federal
departments and agencies will foster an unprecedented, co-operative, regional approach to tourism in Atlantic Canada. This
leadership will focus government and industry attentions on strategic tourism investments and activities that will increase the
growth and competitiveness of the region's tourism industry.
[13]Source data provided by the Atlantic provinces tourism departments
Expanding tourism in Atlantic Canada is one of ACOA's most sustained efforts. In 2006-2007 ACOA will continue to deliver projects that will:
- revitalize the Agency's capacity-building agenda by incorporating enhanced aftercare provisions into sustainable tourism curricula and best practices programs, and enhance the region's market readiness from a quality-of-product-and-service perspective;
- reinvigorate the Atlantic Canada Tourism Partnership by addressing recent changes in tourism markets, intelligence and technology, and incorporating an expanded industry role;
- renew strategic niche marketing partnerships, including the Atlantic Canada Cruise Association, Signature Attractions of Atlantic Canada, Tourism Atlantic Marketing Initiative, and other niche partnerships as they arise;
- build tourism-related infrastructure and capacity in Atlantic Canada through the establishment, expansion and modernization of tourism businesses, and through increased participation in strategic marketing partnerships and product readiness programs; and
- continue to lend support to provincial governments and industry groups in charting tourism development priorities and strategies.
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Program Activity:
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Description: Projects, which cannot be attributed to other sub-activities, that directly support increased private sector investment, business planning, marketing for the domestic market, or establish venture and seed capital funds. |
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Expected Results:
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Indicators: |
Three-year Targets: |
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Dollars of financing involved |
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Dollars leveraged from investors based outside the region |
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2. Increase in sales |
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Increase in wages and salaries |
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Performance Measurement Strategy: Analysis of data from Statistics Canada, internal systems, project reviews and evaluations, as well as published documents from venture capital firms and industry associations. |
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Among the greatest barriers to the start-up and expansion of SMEs in Atlantic Canada is insufficient access to capital. Breaking down these barriers, in association with public and private sector partners, is a priority for ACOA. The Agency aims to help address the most critical financing gaps such as soft-cost investments in new technology, staff training and trade development. There is evidence of some higher risk, project-related gaps in rural areas and in the tourism and aquaculture sectors. There are also client-related gaps (e.g. women, youth) and gaps in equity and micro credit.
SMEs need better access to conventional financing. Hence, ACOA is working with its partners to broaden the supply of financing available through banks, credit unions, caisse populaires, the Community Business Development Corporations, and others. For high growth and high potential SMEs, alternative sources of financing such as venture capital and the stock market are required if ACOA is to achieve its vision of a self-sustaining, viable Atlantic economy. In this regard, ACOA has recently made a $10 million investment in GrowthWorks Atlantic Venture Fund, a local labour-sponsored venture capital fund that operates in the Atlantic provinces. This investment was significant because it also allows for capital retention, i.e. Atlantic Canadians investing in Atlantic Canada's emerging SMEs.
The Agency also funds projects that directly support increased private sector capital investment, business planning, domestic marketing, establishment of facilities and infrastructure, and establishment of venture and seed capital funds. An example of such projects is ACOA's contribution to host the Global Microcredit Summit in Halifax in November 2006, that will result in over 2,000 delegates from all over the world converging to Atlantic Canada to bring microcredit to the forefront.
The Business Development Program is the principal instrument used by the Agency to provide support, in accordance with the Agency's risk management framework, for the higher risks of doing business in Atlantic Canada. It is designed to enable SMEs to obtain interest-free and unsecured loans that act much like equity and can be used to leverage capital from other sources.
In the next three years, ACOA will work closely with its private sector partners in an effort to increase the supply of patient
capital available for Atlantic SMEs. The patient capital gap has been identified as being in the $100,000 to $500,000 range.
Potential interventions by ACOA include the formation of capital pools, finding the right mechanism to support the
"angel" network, and investor-readiness workshops for SMEs that are searching for development or growth capital.
For projects that directly support the business community, ACOA will focus on supporting strategic initiatives and sectors identified in the regional workplans.
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Providing counselling, mentoring, information referrals to Atlantic Canadians.
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Expected Results: Access for Atlantic Canadians to accurate, timely, and relevant business information, counselling and referrals. |
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Indicator: |
Two-year Target: (2006-2007 to 2007-2008) |
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Performance Measurement Strategy: Analysis of data from client surveys. |
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2006-2007* |
2007-2008* |
2008-2009* |
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Financial Resources ($ millions) |
2.8 |
0.0 |
0.0 |
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Human Resources (FTEs) |
22 |
0 |
0 |
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* Funding has been provided for a one-year extension of CBSC funding for 2006-2007.
Entrepreneurs require access to a wide variety of business development tools and resources throughout all stages of the business life cycle, from the time they are thinking about setting up a new business, to the time they are planning for growth and expansion. The Government of Canada provides this service through the Canada Business Network, with ACOA acting as the federal managing partner for the Canada Business Service Centres (CBSCs) in Atlantic Canada.
The objective of this network of CBSCs is to improve service to small business and start-up entrepreneurs by providing comprehensive information and referrals on government services, programs and compliance requirements for both the federal and provincial orders of government. Serving the business community and entrepreneurs of Canada for over 11 years, the CBSCs reduce the complexity of dealing with various levels of government by serving as a central resource for Canadian business. CBSCs are innovative service providers that facilitate partnerships with other levels of government and business service organizations, all with a view toward providing the best possible client service.
In Atlantic Canada, CBSCs are located in each provincial capital city with access being further enhanced through 108 regional access sites across the region, including 43 Aboriginal Business Service Network sites. Clients may access the CBSCs' services via their website (below), by calling their toll-free number, or visiting one of their locations.
In 2006-2007, the focus will include sustaining a high level of service to clients, enhancing awareness of services, and working with the Canada Business Network partners to implement an improved planning process across the network. For more information, please refer to the following websites:
http://canadabusiness.gc.ca/gol/cbec/site.nsf/en/index.html
http://www.acoa-apeca.gc.ca/e/library/reports/rpp2006/index.shtml
Strategic Outcome – Community Development
Improved community economic infrastructure and strategic planning capacity, leading to
improved employment opportunities and economic growth in the Atlantic region
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Expected Results: Increased economic opportunities for Atlantic Canada. |
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Indicators: |
Five-year Targets:(2003-2004 to 2007-2008) |
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Performance Measurement Strategy: Analysis of data from Statistics Canada. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
81.2 |
70.0 |
45.7 |
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Human Resources (FTEs) |
86 |
88 |
88 |
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The Atlantic economy is built on the region's many communities. From small remote villages, to larger urban centres, the opportunities and challenges vary significantly. ACOA's focus on community development reflects the important role of the federal government in addressing Canada's rural/urban dichotomy, in working with Aboriginal Canadians, and in welcoming immigrants, to ensure continued prosperity and productivity. The Agency's approach requires flexibility based on community realities, their strengths and challenges, while still being strategic on a regional level to maximize economic growth. The traditional strengths of the region's natural resources and challenges of seasonal employment are well documented, as are the recognized needs of communities in Atlantic Canada for economic diversification, skills development and transformative change.
While overall the economy of the Atlantic region has fared quite well over the past five years, some challenges remain. One of the true challenges facing community developers in Atlantic Canada is communities in transition, those with limited economic capacity and infrastructure, and those requiring assistance in order to capitalize on economic opportunities. These communities are typically found in the region's more rural and remote areas. In some cases, they have experienced an economic downturn through industry closure or demographic declines, or have limited new job growth that has resulted in a smaller population and a limited economic base. Although adjustment measures may have been in place in some communities, the long-term impacts of these changes continue to have an effect. Youth are leaving, or have left, in search of employment and social opportunities elsewhere – either to a larger centre in the region, or to central or western Canada.
From time to time, communities in the Atlantic region face the need for sudden or phased adjustment to an economic shock such as the fishery moratorium, significant layoffs by a major employer, or the sudden or pending closure of a mine, mill or other major industry. In these situations, all levels of government must work together with the community to develop a quick response and a plan for the future. Due to the Agency's broad economic development mandate and strong presence in the region, the community, other departments, and other levels of government turn to ACOA. The challenge for ACOA is to map out a realistic and responsive role in these situations.
In 2006-2007 a new pan-Atlantic framework for community development will be developed. This framework will ensure a cohesive, holistic and integrated approach to investments, with the flexibility to respond to regional and community differences. Throughout its history, ACOA has supported community economic development within the region. A number of program areas have been brought together in a new configuration that offers an excellent opportunity for a strategic re-examination of community economic development that builds on best practices and lessons learned from within the region and beyond. The primary focus of the framework will be to ensure that ACOA investments through all funding streams work together to support the ongoing work of communities and the region in achieving strategic economic development goals.
The region's larger towns and urban centres face different opportunities and challenges. The opportunities for economic growth, the challenge of globalization and international competitiveness factor into daily decision making. Embracing innovation, and developing and retaining a skilled work force, are critical for future growth. The most dramatic and immediate impact of community development is in those that have clearly identified strengths and potential on which to build. Innovation and creativity in these communities can lead to significant development opportunities. Often there is potential to take advantage of these opportunities due to previous significant work in strengthening community development capacity. Leadership is strongest in these transforming communities, and partnerships are in place to build on existing potential. ACOA provides continued support to enhance or improve their economic base, building on their assets, and increasing their capacity to be competitive.
In addition to geographic communities, there are significant communities of interest in the Atlantic region. The limited economic capacity in First Nations communities is a fundamental development issue in the economic future of the region's Aboriginal populations, that requires ACOA to work with its many partners toward a strategic approach to development. Similarly, economic development of French language minority communities requires partnership with other governments and federal departments to ensure complementary interventions.
The building of economic capacity in Atlantic communities relies to a large extent on community-level volunteer leadership through local economic development organizations and, to an increasing extent, there is a strong role for municipalities and local government. ACOA recognizes that building on these community level partnerships is a critical factor of any community development strategy.
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Projects which help communities build their capacity and confidence in order to identify and co-ordinate the implementation of priorities for economic development in their region. These projects would be supported via Community Economic Development Organizations (CEDOs) that ,in turn provide financial and technical assistance to businesses and communities; conduct strategic planning; and co-ordinate economic development projects under a range of self-sustaining development projects under strategic Community Economic Development (CED) initiatives.
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Expected Results: Enhanced business and economic opportunities for Atlantic Canada communities. |
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Indicators: |
Annual Targets: (2006-2007) |
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Performance Measurement Strategy: Analysis of data from CBDC reports and internal systems. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
42.8 |
44.6 |
44.8 |
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Human Resources (FTEs) |
79 |
81 |
81 |
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ACOA supports economic development with communities through projects that build their capacity to identify and co-ordinate the implementation of priorities for economic development in their region. In some cases these projects are supported by other community economic development organizations that in turn provide financial and technical assistance to businesses and communities; conduct strategic planning; co-ordinate economic development; and implement a range of self-sustaining development projects.
The Agency also works to establish and strengthen partnerships with other levels of government and community organizations; engages municipalities on community development priorities; and continues to work in partnership with the provinces on joint community economic development priorities and strategies.
The Innovative Communities Fund (ICF) is a primary program tool for investing in community development priorities. This program supports strategic investments and capacity building initiatives in the context of community/regional strategic economic development plans.
In 2006-2007, ACOA staff will continue to work with communities and community organizations to identify, develop, and support
projects that will improve the economic base and long-term development of the community/region.
In addition, the Agency will foster networking and improved communication between community development partners to encourage sharing of best practices and to leverage investments. Agency staff will engage municipalities on community development priorities, and continue to work in partnership with the provinces and the private sector on joint community economic development priorities and strategies.
The Agency will build on the strengths and relationships at the community level and processes such as the Joint Economic
Development Initiative (in New Brunswick) and the Nova Scotia Tripartite partnership that focuses on Aboriginal economic
development. ACOA will also work in collaboration with Industry Canada and Indian and Northern Affairs Canada in their roles
as lead departments for Aboriginal development. The Agency will also work with other federal departments for continued
economic development of French language minority communities and development of culturally-sensitive economic policies.
As part of its overall focus on population, the Agency will work toward creating an environment that will support the retention and repatriation of Atlantic Canadians in the short term, while recognizing the opportunity for immigration as a possible long-term population development strategy to address the skills and labour force issues facing the region.
To facilitate socio-economic development at the local level, and to increase the capacity of communities to reach their economic development potential, the Agency supports community-based economic development organizations such as the 41 Community Business Development Corporations (CBDCs) and the 51 Regional Economic Development Organizations (REDOs). CBDCs enhance business and economic opportunities in Atlantic Canada's rural communities, through the provision of investment capital and business counselling. REDOs, often funded in partnership with provincial and local governments, play a leadership role in strategic community development planning project development.
In 2006-2007, ACOA will continue to work in partnership with the CBDCs and urban-based business support organizations to help Atlantic Canadians, through the Seed Capital Program, to acquire the business skills and capital they need to start, modernize and expand their businesses.
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Supports initiatives designed to address the specific economic adjustment needs
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Expected Results: Partner with communities to manage and mitigate economic crises. |
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Indicator: |
Three-year Target:(2005-2006 to 2007-2008) |
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Performance Measurement Strategy: Evaluation of data from studies, surveys and internal evaluations. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
24.5 |
24.5 |
0.0 |
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Human Resources (FTEs) |
0 |
0 |
0 |
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The Agency supports initiatives designed to address the specific economic adjustment needs of Atlantic Canadian communities. From time to time, the federal government announces special program initiatives to help affected individuals and communities adjust to their changing economic circumstances. These situations may arise as a result of a downturn in an industry or closure of a major employer and usually are high profile and involve sensitive issues. Economic adjustments to industry closures, resource reductions and other factors require a co-ordinated and effective response by ACOA, other government departments and other levels of government.
Taking advantage of its established network and knowledge of the region, ACOA delivers special development initiatives on behalf of the federal government to facilitate alternate and replacement economic opportunities in communities or areas that experience closure of significant employers or other significant shocks to employment. The Agency assists with planning and strategy development to reduce the impact of economic downturns and improve the economic base of communities in the long term.
ACOA has been asked in the past, for example, to deliver adjustment programs that responded to the closure of military bases, the closure of the cod fishery, and the termination of the ferry service from New Brunswick to Prince Edward Island.
Typically, targeted funding is available for adjustment that is the result of a government decision or that clearly falls
within the government's mandate. Currently, the only targeted adjustment program being delivered by ACOA is the Saint John
Shipyard Initiative, in response to the closure of the shipyard in Saint John, New Brunswick.
A more common response to adjustment, such as factory closures or major downsizing, sees ACOA work in collaboration with a community, other federal departments and other levels of government to use existing programs to best respond to the situation. Economic adjustment to industry closures, resource reductions and other factors requires a co-ordinated and effective response by ACOA and other government departments. The challenge is to map out a realistic and responsive role in these situations.
To aid in the development of such realistic approaches, ACOA staff will examine work that ACOA and other government departments have done to date in delivering adjustment initiatives in order to capture lessons learned from these experiences, as well as from ACOA's ongoing work with communities in the diversification of their economies in response to economic challenges. From this information, as well as information from other jurisdictions, ACOA will be better positioned to provide advice to communities and government and propose action in response to adjustments that may be required in the future.
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Programming designed to renew and build infrastructure in rural and urban municipalities in Atlantic Canada.
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Expected Results: Enhanced infrastructure in urban and rural communities, and public infrastructure. |
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Indicator: |
Three-year Target: (2006-2007 to 2008-2009) |
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Performance Measurement Strategy: Analysis of data from Shared Information Management System for Infrastructure (SIMSI). |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
13.9 |
0.9 |
0.9 |
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Human Resources (FTEs) |
7 |
7 |
7 |
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Community infrastructure is an essential building block for community development. Investments in infrastructure ensure safe drinking water, effective waste management systems, and key transportation projects that facilitate the safe movement of people and goods. As well, strategic infrastructure that supports community development and economic growth can be a catalyst for a community to grow and prosper.
Community-based infrastructure programs are implemented by ACOA in the Atlantic region on behalf of the Government of Canada. Provinces and municipalities manage these projects. In most cases, the Government of Canada matches provincial contributions and generally provides up to one-third of the cost of infrastructure projects. Under various funds, Infrastructure Canada provides national co-ordination among delivery partners in the implementation of the projects.
ACOA regional vice-presidents act as federal co-chairs on the federal-provincial infrastructure management committees. ACOA remains committed to deliver on these important federal initiatives.
For more information on infrastructure programming, see Infrastructure Canada's website at: http://www.infrastructure.gc.ca/funding/index_e.shtml.
Strategic Outcome – Policy, Advocacy and Co-ordination
Strategic researched policy positions that reflect the region's potential;
influence on national policies and programs that affect Atlantic development and interests;
and co-ordination of other federal departments' policies and programs within the region to form
integrated approaches to development, leading to strengthened Atlantic economic development
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Expected Results: Provide policy leadership and advocate Atlantic Canada's interest in economic policy and programming. |
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Indicator: |
Five-year Target: (2003-2004 to 2007-2008) |
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Performance Measurement Strategy: Analysis of information from ACOA's Policy Network and key informant survey, as well as indicators from the federal government's budget speech, Speech from the Throne, and decisions by central agency. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
16.8 |
16.7 |
16.7 |
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Human Resources (FTEs) |
64 |
64 |
64 |
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Key Objectives of PAC |
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ACOA's legislation provides the mandate for the Agency's policy, advocacy and co-ordination (PAC) role, which has become central to identifying and analyzing the critical issues facing the regional economy. The PAC function at ACOA exists to inform and support decision-making by the Agency and the Minister, providing intelligence, analysis, and well-grounded advice on a broad range of issues and topics.
The PAC role takes on an added importance as the region undergoes a transformation, with both traditional industries accommodating new global circumstances, and new endeavours, largely urban-based, entering the industrial mix. Resource industries are struggling to deal with both resource constraints and competitive pressures that are currently seeing rationalization in the pulp and paper sector during 2005. All companies must confront the need to modernize their productive processes and technologies. Communities must face up to necessary adjustments, both to stay competitive and to attract or foster new enterprise. Improved productivity is key to this whole process, at the level of the region, a sector, a community, or a company. In addition, the demographic challenge is very real, both as the region loses population, and as those who remain get older. There is a shift of population within the region, as well, from rural to urban areas, which places stress on many smaller and remote communities. Skill shortages are developing in many industries, particularly those in new and knowledge-based sectors.
One of the initiatives to be undertaken in 2006-2007 is designed to gain greater insight on how to increase Atlantic Canada's productivity and competitiveness, this will be essential to take advantage of some of the opportunities and challenges that will occur with the economic emergence of China and India, and to address the economic challenges of significant demographic change and population shifts from rural to urban areas in Atlantic Canada.
The immigration strategy developed in 2005 guides the Agency in its work to help address the demographic challenges faced by the Atlantic provinces, by fostering activities to attract and retain immigrants in Atlantic Canada. This strategy is leading to a wider Atlantic Population Strategy currently being developed in collaboration with the provinces and other federal departments, which seeks to help address some of the impact of a declining and aging population, as well as continuing shifts of population from rural to urban areas.
Another initiative is to redefine the Agency's community adjustment strategy, which will guide the collaboration with affected communities and help them identify and develop a new economic future. Such a strategy can build on the Agency's vast experience in community development, and on best practices in community adjustment collected both in the region and elsewhere.
Sector strategies are also a means to help communities adjust. An example is the evolving strategy for aquaculture in Atlantic Canada, which takes into account industry opportunities and challenges related to competitiveness, fish health, international trade and regulation, and policy or program issues at the local, provincial, federal and international levels. In 2006-2007, ACOA will continue to work closely with Fisheries and Oceans Canada in developing a national aquaculture framework agreement.
Both horizontal and sectoral strategies, developed in collaboration with other federal departments, provinces and industry, guide the Agency in its advocacy efforts and in federal-provincial discussions.
One of the management priorities to be carried out in 2006-2007 is the establishment of a process to identify and review policy and advocacy priorities on an ongoing basis. This will help ensure that the Agency's efforts reflect the changing global economic environment; the economic opportunities and challenges; provide a basis to reallocate resources; and modify program instruments and policies.
ACOA's work, in co-ordination with its partners, must address these and many other critical requirements, while staying relevant both to the Government of Canada's overall policy directions and to ACOA's central mandate of economic development in Atlantic Canada.
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Carrying out policy analysis and research to determine the areas in which
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Expected Results: Increase internal and external capacity to identify and explore issues critical to developing policies and designing and improving programs. |
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Indicators: |
Targets: (2006-2007) |
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Performance Measurement Strategy: Annual analysis of information from project reports, key informant survey managed by the Agency's policy network, and Atlantic Policy Research Initiative reports. In addition, every five years, the Agency will conduct a formal evaluation to measure the two Indicators "Impact of new policies/strategies on programs and initiatives" and "Usefulness and impact of studies". |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
11.0 |
10.9 |
10.9 |
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Human Resources (FTEs) |
29 |
29 |
29 |
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The policy function is carried out by means of internal and external research on significant Atlantic economic issues, through
ongoing analysis of issues, trends, challenges, and opportunities facing the region, and through stakeholder engagement and
consultative initiatives, including roundtables and conferences. Within ACOA, officials in head office, regional offices and
the Ottawa office carry out the policy function.
A policy network has been established to engage policy resources from all parts of the Agency in corporate policy initiatives, to provide an internal "think tank" on policy issues, and to contribute to well-informed positions on key issues, federal-provincial relations and sectoral or horizontal strategies.
The Agency undertakes research internally and funds research undertaken by a range of partners, including researchers at Atlantic Canada's universities and in public policy organizations. A dedicated research program, the Atlantic Policy Research Initiative, supports region-wide research projects, and is designed to contribute to building a critical mass of public policy research capacity in Atlantic Canada.
Some of the research areas ACOA intends to undertake in 2006-2007 and subsequent years relate to innovation and commercialization. These could include innovation benchmarking, sector/cluster analysis, community-based innovation, Atlantic Canada's trade relationships and trade environment.
The Agency's policy work aims to provide a well-grounded base of understanding for the development of ACOA strategic priorities and initiatives, for program design, and as input to major resource allocation decisions. It is also a source of input to national policy development and provincial and federal-provincial relations.
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Advocating the interests of Atlantic Canada
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Expected Results: Effective defence and promotion of Atlantic Canada's interests. |
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Indicators: |
Five-year Targets: (2003-2004 to 2007-2008) |
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Performance Measurement Strategy: Analysis of data from interviews with senior officials of economic development departments, and from the Agency's files and procurement network. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
4.0 |
4.0 |
4.0 |
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Human Resources (FTEs) |
23 |
23 |
23 |
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Advocacy priorities |
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The advocacy function influences national decision-making processes through rapid and reactive responses to federal initiatives.
Equally important is proactive advocacy, ensuring that the federal system is informed on the issues and priorities essential for
Atlantic Canada's development. Advocacy ensures a two-way flow of information from and to the region, particularly on
topics related to ongoing strategic priorities.
Advocacy efforts have ensured that the federal government is able to respond quickly and effectively to unexpected economic challenges in Atlantic Canada. ACOA has advocated on behalf of communities to ensure they have the support needed to build sustainable economies.
Since early 2005, the Agency has focused its advocacy efforts on several priorities (see box at right), each led by a vice-president champion. The objective of having defined priorities is to ensure national policies and programs reflect the regional context and environment and promote Atlantic Canadian opportunities. For example, the Atlantic population strategy addresses several key Government of Canada priorities, including immigration, youth, cities and communities and regional economic development. Advocacy efforts are focused on strategically increasing the population of the region through activities that will increase the availability of skilled labour, productivity enhancements and community capacity.
These advocacy priorities are strategically aligned with the economic development direction of the region. Sustained, high-profile senior commitment and leadership ensure access and effective integration of these priorities at the national level. ACOA's advocacy activities also involve strategic partnerships and alliances with stakeholders at all levels of government, industry and communities across Atlantic Canada.
The federal government's attention to cities and communities has allowed ACOA, through its advocacy priorities, to provide an ongoing regional perspective to national infrastructure program development and delivery. For example, future infrastructure investments under economic, social and cultural pillars complement ACOA's existing programs and efforts. These common benefits have ensured the continued inclusion of ACOA in priorities setting discussions for national, city and community initiatives.
The federal industrial regional benefits (IRB) policy is a framework for using major procurements as a lever to promote industrial and regional development objectives to improve industrial competitiveness; gain market access; and increase investment and exports in high technology sectors. ACOA uses the IRB policy to inform and advocate to national and multi-national companies about Atlantic Canadian industrial capacity, and encourages bidders to work and partner with these companies.
The IRB component of advocacy concentrates on major Crown projects in excess of $100 million. Currently, IRBs are pursued through the Department of National Defence's annual capital spending of approximately $1.5 billion. Recent industrial benefits activity undertaken by ACOA has resulted in $1 billion in work being committed to Atlantic Canada. Current regional efforts are ongoing with regard to maritime helicopters; search and rescue helicopters; space development contracts; aerospace overhaul and repair; land vehicle refurbishment; and aerospace in-service support contracts.
ACOA participates in the review of all procurements over $2 million for socio-economic potential, and is a member of the Senior Project Advisory Committee on all major Crown projects (those over $100 million). The Agency advocates for a strong IRB strategy in all major Crown projects and for their subsequent inclusion in requests for proposals. IRB plans are submitted by bidders; they are evaluated and become contractual obligations that are negotiated, monitored and verified. The Agency plays an important role in the procurement system, working with government and industry, focusing on strategic initiatives that meet national and regional goals, and contributing to industrial development and economic prosperity.
A number of current major Crown projects that the Agency will be following in 2006-2007 include: tactical airlift, fixed-wing search and rescue, joint support ships; mobile gun system; medium-support vehicle system; multi-mission effects vehicle; Victoria class in-service support; and the Halifax class modernization. There will be significant benefits accruing to Canada as a result of these programs and, because of the strong working relationship between Atlantic industry, businesses and ACOA, Atlantic firms are well-placed and well-prepared to meet the needs and expectations of the Government of Canada.
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Engaging economic partners in addressing the Atlantic region's strategic economic priorities.
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Expected Results: Co-ordination of activities among ACOA, federal departments and provincial governments in Atlantic Canada. |
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Indicators: |
Annual Targets: (2006-2007) |
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Five-year Target: (2003-2004 to 2007-2008) |
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Performance Measurement Strategy: Annual targets will be measured through analysis of data from ACOA's policy network, the Privy Council Office (Intergovernmental Affairs). Five-year targets will be measured through analysis of data from project reports and interviews. |
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2006-2007 |
2007-2008 |
2008-2009 |
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Financial Resources ($ millions) |
1.8 |
1.8 |
1.8 |
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Human Resources (FTEs) |
12 |
12 |
12 |
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The co-ordination role is critical to ensuring that all the policy players within the region aim toward the same goals, with no duplication of effort. At one time, this co-ordination role was limited to the economic mandates of other federal departments within the region, but this has become both refined and broadened over time. Currently, federal-provincial policy efforts are focusing on productivity, competitiveness, and rural-urban issues. In addition, in 2006-2007, ACOA will continue to work toward a new population strategy for the region, in collaboration with partners that include Citizenship and Immigration Canada, the provinces, post-secondary institutions, communities, non-governmental organizations, and the private sector.
ACOA's relationship with central agencies and, in particular, the other regional development agencies has become more important. In part, this is to share experiences in developing the regional economies in different parts of Canada. In part, it is to refine and re-define what the role of regional agencies has become, is becoming, and should be. All of these partnerships and co-ordination efforts aim to accomplish objectives that ACOA alone would find difficult. Examples of this involvement include membership in:
- Deputy ministers' committees on economic prosperity and the environment;
Regional development agencies' senior officials' committee on advancement of the regional development framework;- federal-provincial senior officials' committee, and its subcommittees on policy, population, and access to capital;
- Federal Regional Councils (chair and participation); and
- Atlantic Executive Network.
