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Section II – Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome 1 – Competitive and sustainable Atlantic enterprises, with emphasis on those of small and medium size

Indicators:	Five‑year Target: (2004-2005 to 2008-2009)
Increase in Atlantic GDP related to ACOA clients	$4 to $5 in GDP gains for every $1 of ACOA expenditure
Performance Measurement Strategy: Measuring the impact on income and employment in Atlantic Canada is a long-term, multi-dimensional undertaking.  Thus, the Agency will report results every five years, based on analysis of data from Statistics Canada and internal systems, using econometric modelling.

ACOA fulfills its mandate to facilitate the economic transformation of the Atlantic region by enabling the development of sustainable enterprises that provide goods and services beyond local borders and into the global marketplace.  This leads to employment growth and wealth creation for the benefit of all the residents of Atlantic Canada.

In 2008-2009, the Agency will use its resources and programs to bring increased focus to improving productivity of Atlantic Canadian companies.  Areas such as research and development, acquiring advanced technologies, and improving business and managerial skills will continue to be actively promoted. 

One area of great economic potential is the pursuit of commercialization opportunities within ACOA’s Atlantic Innovation Fund (AIF) portfolio.  The Agency will implement actions designed to improve the commercialization of the innovative technologies that are being developed by its clients.

In the areas of trade and investment, ACOA will align its efforts with the Government of Canada’s Global Commerce Strategy and the related Americas Strategy, and engage in activities that capitalize to a greater extent on emerging markets in Asia such as China and India.  The Agency will encourage the development of the Atlantic Gateway, as this presents a strategically important initiative for long-term economic expansion throughout the region.

The Agency will continue to champion sectors recognized as presenting significant opportunity for the long-term success of the Atlantic region.  These sectors are aerospace and defence, aquaculture, bioscience, energy, green technologies and resource industries.

By helping individual SMEs in both rural and urban settings to improve their competitiveness, the Agency delivers on this strategic outcome.  ACOA focuses on delivering constantly evolving and adapted programs that support the development of SMEs and that better the business environment in which these businesses grow and mature.

2.1.1 Program Activity: Fostering the development of institutions and enterprises, with emphasis on those of small and medium size

Expected Results:  Improved growth and competitiveness of Atlantic SMEs
Indicators:	Annual Target: (2008-2009)
•          Survival rate of ACOA-assisted firms versus non-assisted firms	•          Ratio of 1 to 2
•          # of new business start-ups that have received funding from ACOA to help them become established	•          50
Performance Measurement Strategy: Analysis of data from Statistics Canada and internal systems data.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
214.2	206.2	183.3

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
446	415	415

ACOA undertakes a variety of activities, through a range of targeted initiatives, to achieve its objective of fostering the development of the business environment for competitive and sustainable SMEs.  The Agency is a catalyst of development, whether through direct financial support to SMEs and R&D organizations, or indirect support by helping industry associations create a better business environment in the region.  It assists existing and new entrepreneurs, helps attract foreign direct investments to Atlantic Canada, and promotes the development of the financing market for SMEs.  ACOA is at work to create the best conditions possible for SMEs to start, grow and expand.

Innovation:   In 2008-2009, ACOA will work to maximize the impact of its investment, particularly in sectors that are strategically important to the long-term success of the Atlantic region.  While continuing to support R&D projects that have the best probability for successful commercialization, increased focus will be placed on identifying and pursuing commercialization opportunities within the existing AIF portfolio.  ACOA will also work with its partners and stakeholders to align investments in key sectors in the Atlantic region, in order to build upon emerging clusters in both urban and rural areas of Atlantic Canada.  As well, the Agency will work to promote the region’s capacity to carry out leading-edge R&D in specialized areas or in specific sectors at the regional, national and international levels.

Entrepreneurship and Business Skills Development:  Increased productivity is directly linked to improved business skills.  By investing in the development of business skills and providing opportunities to gain practical experience, ACOA is investing in the region’s economic capacity and competitiveness.  Working in conjunction with not-for-profit organizations, the Agency provides entrepreneurs with access to courses, networking opportunities, and business counselling and coaching services.  ACOA also helps to fund opportunities for people, youth especially, to explore entrepreneurship as a career option, thereby ensuring a future pool of Atlantic Canadian entrepreneurs.  Through a variety of means, from summer camps to one-on-one mentoring, aspiring and existing entrepreneurs are able to acquire and put into practice the key aptitudes required to start, sustain or grow their businesses.

Trade:  In 2008-2009, the Agency will reposition its efforts to align itself with national priorities outlined within the Global Commerce Strategy, in order to take full advantage of globalization opportunities.  Through this alignment, the Agency will capitalize on new priorities and emerging opportunities, while continuing to provide value‑added trade programming that will increase the productivity and competitiveness of SMEs within the region.  The high value of the Canadian dollar makes it imperative for the Agency to consider new export opportunities for Atlantic Canadian SMEs, including the Americas Strategy, Atlantic Gateway, International Technology Development and the continued development of key priority sectors (aerospace and defence, aquaculture, life sciences, energy and environmental technologies).  The Agency will continue to work 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 to focus on four strategic elements (awareness; trade education and skills development; capacity building; and policy co-ordination and partnerships) and will ensure the incorporation of the new, key initiatives identified above.  Furthermore, each of the programming elements will place a stronger emphasis on productivity and competitiveness in order to ensure maximum export growth for SMEs throughout the region.

Investment:  ACOA works to attract foreign direct investment (FDI) into Atlantic Canada (i.e. encourage foreign-owned corporations to establish operations in Atlantic Canada). FDI creates employment opportunities, generates revenues and increases innovation, productivity and export trade.  This is achieved by diversifying and strengthening economic development, by investing in public infrastructure and building the industrial critical mass required to successfully compete in a global economy.  The Agency will continue to play an important leadership and co-ordination role through research, information dissemination, awareness and promotion, investment partnerships and lead development.  ACOA is instrumental in promoting “Atlantic Canada as a Profitable Place to do Business.”  Going forward, ACOA will increase its efforts in priority areas such as energy, innovation, bioscience, and aerospace and defence and will focus on investment opportunities within new regional and federal initiatives such as the Atlantic Gateway Strategy, the North American Platform Program (NAPP), and the Americas Strategy.

Financing Continuum:  The Agency promotes the development of the financing continuum for the SMEs of Atlantic Canada.  During 2008-2009, ACOA will continue to provide direct assistance to selected areas of activities such as start-up, expansion and modernization of business, as there continues to be gaps in the financing available to SMEs, both in rural and urban areas of Atlantic Canada.  The Agency will also continue to support projects such as the GrowthWorks Atlantic Venture Fund and the First Angel Network Association, because these organizations present much-needed, new sources of equity capital for SMEs. 

Access to Business Information (Canada Business):  Canada Business acts as a focal point for information on government services, programs and regulations.  The service is provided free of charge via phone, walk-in centres and website. A key objective for 2008-2009 will be to sustain high levels of client satisfaction.  This will entail improvements to the quality of information products offered and enhancements to the website, making it easier to find and use information.  As well, a strategic review will be undertaken to develop a renewed service strategy that could be implemented in the 2009-2010 fiscal year.  By reducing the complexity of dealing with various levels of government, Canada Business services support the federal government’s objective of reducing paper burden and fostering productivity.

2.2 Strategic Outcome 2 – Dynamic and sustainable communities for Atlantic Canada

Indicators:	Five‑year Targets: (2004‑2005 to 2008‑2009)
•         Increase capacity in community decision making, planning and delivery	•         Evidence of impact resulting from evaluations
	Annual Target: (2008-2009)
•         Survival rate of rural businesses	•         Stabilize or increase survival rate of rural businesses
Performance Measurement Strategy: Analysis of data from evaluations and Statistics Canada.

The Atlantic Canadian economy is built on the region’s many geographic, linguistic and cultural communities.  From small, remote villages to larger urban centres, economic opportunities and challenges vary significantly.

To respond to these varying community needs, ACOA must be flexible and responsive to working with communities to pursue economic development in a collaborative fashion.  ACOA will take a balanced approach in supporting strategies to increase opportunities in the region’s rural and urban areas, by investing in initiatives that will provide best value for investment, while addressing community priorities.  Community development is a bottom-up process that helps develop the tools, resources and initiatives that support unique strategic development.

By taking a holistic approach, based on the realities of a given community, ACOA can foster economic development by supporting Atlantic Canadian communities in their efforts to develop the resources they need to take full responsibility for their own economic development.  As always, ACOA will work in co-operation with other levels of government, other federal government departments, non-government organizations, and community groups to leverage support and co-ordinate economic development that will strengthen the rural economy.  Healthy businesses in rural communities contribute to employment creation and increase earned incomes in these regions.

2.2.1 Program Activity: Fostering the economic development of

Atlantic communities

Expected Results:  Enhanced business and economic opportunities for Atlantic Canadian communities; enhanced community collaborations
Indicators:	Annual Targets: (2008-2009)
•         # of business start-ups	•          583
•         Number of businesses that have received funding to stabilize or expand operations	•         771
•         Dollars leveraged for community development projects/investments	•         $98.0 million
•         Longevity/quality of collaborations in community development planning and implementation (2010 ICF)	•         Evidence of impact resulting from evaluations and supported by data
Performance Measurement Strategy:  Analysis of CBDC report data and internal systems data.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
100.9	92.6	93.4

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
186	185	186

In 2008-2009, ACOA will continue to work in co-operation with communities, making strategic investments to capitalize on opportunities for sustainable economic growth and to build community development capacity.  In doing so, ACOA will invest in the development of critical economic development infrastructure.  These investments capitalize on the capacity, strengths and opportunities present in the community, as identified in community economic development plans and strategies.

ACOA’s main tool for community investment is the Innovative Communities Fund (ICF).  This fund invests in strategic projects that build the economies of Atlantic Canadian communities; it focuses on projects that lead to long-term employment and economic capacity building. ACOA works with non-commercial/not-for-profit organizations to diversify and enhance the economies of Atlantic Canadian communities.  These include local development associations, municipalities and their agencies, business or technology institutes, industry/sector associations, economic development associations, local co‑operatives, universities and educational institutions.  The fund capitalizes on opportunities and strengths that exist in these communities to develop competitive and productive, strategic industry sectors.  The fund works to strengthen a community’s infrastructure and invests in projects that enhance a community’s capacity to overcome economic development challenges.  The ICF encourages partnership between communities and stakeholders to identify opportunities for sustainable economic growth.  It has a strong focus on rural communities, where development needs are numerous.

ACOA continues to fund 41 Community Business Development Corporations (CBDCs) in rural Atlantic Canada, through the Community Futures Program.  These CBDCs are run by community-based boards of directors focused on local community economic development. Contributions permit the CBDCs to provide an essential source of investment capital for rural small businesses.  They also offer business counselling and skills development opportunities that support community economic development and build the self-reliance and capacity communities need to realize their full potential.  ACOA works with the CBDCs and urban-based business support organizations to assist Atlantic Canadians, through the Seed Capital Program.  This allows borrowers to acquire business skills and capital needed to start, modernize and expand their businesses.

In co-operation with other levels of government, ACOA continues to support 52 Regional Economic Development Organizations (REDOs) in Atlantic Canada. REDOs are responsible for the co-ordination, development and implementation of strategic economic development at the local and regional levels.  In support of these activities, ACOA invests in annual operational funding for the REDOs, which develop and implement strategic plans in rural communities. REDOs are mandated to achieve results through community development efforts, including strategic community development planning, and business development activities; such activities often lead to community-based projects.  The resulting strategic plans assist communities in assessing their strengths and weaknesses in order to implement strategic initiatives that will contribute to the economic growth of their regions.  REDOs are managed by volunteer boards of directors representative of the communities they serve.

ACOA is also committed to economic development in both the French-language community and Aboriginal communities in Atlantic Canada.  The Agency continues to collaborate with Acadian and Francophone organizations across the region to enable the official language minority community to engage in activities that foster sustainable community infrastructure necessary for economic development in these communities.  In addition, ACOA continues to make progress in identifying increased opportunities for Aboriginal economic development and in developing a more co-ordinated approach, both internally and in partnership with other federal departments.

Finally, tourism plays an important role in the social and economic development and diversification of communities in Atlantic Canada.  The Agency will continue to support initiatives that integrate tourism development within community planning. 

2.2.2 Program Activity: Special Adjustment Measures

Expected Results:  Reduced impact of economic crisis
Indicator:	Annual Target: (2008-2009)
•         Presence of new/diversified economic activity	•         As determined by the objectives of each program
Performance Measurement Strategy:  Evaluation of data from studies, surveys and internal evaluations.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
0	10.0(1)	0

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
0	1	0

(1)       The SJSAI has recently been extended and adjustments in planned spending between ACOA’s program activities may need to be considered in 2009-2010. 

There are circumstances in which communities face severe economic adjustment impacts due to changing economic circumstances.  If it is determined that the shock is so great there is a need for adjustment measures in a community or a region to mitigate the impact, specific measures will be undertaken when additional funding is received apart from existing reference levels.  These measures are based on the appropriation of new funds that are delivered through ACOA.  Each special adjustment measure has specific objectives, clients and performance measures.  These measures support initiatives designed to address the specific economic needs of Atlantic Canadian communities.

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 between New Brunswick and Prince Edward Island.

Typically, targeted funding is available for adjustments to reduce or lessen the impact of economic downturns in the region, ultimately resulting in the lessening of what would otherwise have been economic crisis.  Currently, the only targeted adjustment program being delivered by ACOA is the Saint John Shipyard Adjustment Initiative (SJSAI), in response to the closure of a privately owned shipyard, which was a major employer and economic contributor in Saint John, New Brunswick. 

2.2.3 Program Activity: Infrastructure Programming

Expected Results:  Federal government investments in public infrastructure in urban and rural communities
Indicator:	Annual Target: (2008-2009)
•         $ leveraged for approved projects	•         $77.7 million
Performance Measurement Strategy:  Analysis of data from Shared Information Management System for Infrastructure (SIMSI).

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
0.9	0.9	0

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
15	15	0

The provision and maintenance of quality public inprovides the foundation for economic development and is critical for economic prosperity.  Providing and effectively managing potable water, waste treatment facilities, highways, municipal roads and bridges, and transit systems, all impact on economic growth; many also have strong environmental implications.  This requires programming designed to renew and build infrastructure in rural and urban municipalities in Atlantic Canada, through investments that protect the environment and support long-term economic growth.  ACOA, working with Infrastructure Canada and the provinces, oversees and ensures the flow of federal funds allocated to each region through the various infrastructure funding streams.

Infrastructure programming enhances municipal infrastructure in urban and rural communities throughout Atlantic Canada. ACOA is the federal entity responsible for delivering and implementing the Government of Canada’s current infrastructure programming in the Atlantic region.  The majority of infrastructure projects are funded by Infrastructure Canada (the funding agent).  In past years, infrastructure programming was funded through the Municipal Rural Infrastructure Fund (MRIF) and the Infrastructure Canada Program (ICP).  As these funding programs are now fully committed, ACOA will be active in the delivery of a new round of funding under the Building Canada Fund (BCF). 

The BCF is to be governed through a contribution agreement with each province.  The total federal portion of funding for the BCF is expected to flow over ten years, starting in 2008.  ACOA will enter into a partnership agreement with Infrastructure Canada, through a Memorandum of Understanding (MOU) that will identify ACOA’s role in program administration and project selection.  Although ACOA is responsible to ensure due diligence in approving and processing payment claims, these funds are not reflected in ACOA reference levels as they will be accessed through other existing mechanisms.  The grants and contributions component of these funds will be reported through Infrastructure Canada. ACOA’s operational cost to deliver this programming will be reflected in financial adjustments once agreements with Infrastructure Canada are finalized.

Green municipal infrastructure continues to be a priority, and the provincial agreements actually identify an investment target for green projects.  This essentially includes water and wastewater systems, water management, solid waste management and recycling. Agreements are in place in all four Atlantic Provinces and memorandums of understanding have been executed between Infrastructure Canada (part of the Transport, Infrastructure and Communities portfolio) and ACOA to facilitate delivery.

Local transportation infrastructure projects are defined as those that improve the efficiency of and integration of Canada’s transportation networks to facilitate the flow of goods and services, including public transit, urban/arterial roads, regional /local airports, short‑line rail, short‑sea shipping and core national highway systems.

Finally, ACOA focuses on other priorities relating to key infrastructure projects that will lead to building a stronger and better Canada through modern, world‑class public infrastructure.  Projects may include those related to connectivity and broadband, cultural and sport. 

2.3 Strategic Outcome 3 – Policies and programs that strengthen the Atlantic economy

Indicator:	Annual Targets:(2008-2009)
•         Atlantic regional programs/initiatives implemented or adjusted as a result of ACOA’s policy, advocacy and co-ordination work	•         Continued government support of Agency priorities, collaboration with other federal departments, and engagement with other partners in Atlantic Canada in areas that will contribute to increasing the competitiveness of Atlantic Canada’s economy
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 agencies.

ACOA’s legislated mandate situates the Agency’s policy, advocacy and co-ordination (PAC) roles as central to identifying opportunities and challenges facing the regional economy.  Policy, advocacy and co-ordination exist 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.  PAC helps carry the Agency’s forward agenda, plays an integral role in developing focused and adaptable approaches to issues, and helps ensure that ACOA overall remains relevant to the opportunities and challenges in Atlantic Canada.

The three PAC functions are interrelated.  Policy is at the centre of the relationship, as it provides the research, analysis and advice needed to help define the forward agenda and plan future regional development approaches tailored to Atlantic Canadian circumstances.  This policy work supports and promotes advocacy efforts with other federal departments, provincial governments, and other organizations to ensure that national policies and programs reflect realities and opportunities in Atlantic Canada.  ACOA’s co-ordination initiatives are also linked to policy and involve close collaboration with a variety of stakeholders including provincial governments, business groups, other federal entities and other organizations such as economic think tanks.

ACOA is a highly recognized element of the federal presence in the Atlantic region, and has a responsibility to reflect and promote federal priorities, particularly as they relate to regional economic development.  Many of the commitments and priorities that the Government of Canada has put forth speak to challenges and opportunities that ACOA and its partners are working to address.  The region’s productivity, changing demographics, resource production and processing realities, the creation and application of new and emerging technologies, and changes in global trade and investment represent some of the key economic issues being advanced by ACOA.

ACOA is actively working to identify the means to raise productivity levels in Atlantic Canada.  This will require improvements in skills levels throughout the region as well as increased innovation and R&D, and capital investment.

As stated in Advantage Canada, improving conditions for business involves improving their global competitiveness.  In order to improve Atlantic Canada’s competitiveness, ACOA must look at ways of supporting and fostering increased innovation and commercialization practices among its industries and businesses.  The Agency provides analysis and research support, advocates on behalf of the region, and works with its partners and stakeholders to address this priority issue.

The region’s resource industries face crucial challenges.  Much of Atlantic Canada’s economic development has been driven by its natural resources, including minerals, energy, fish, forestry and agriculture.  However, to remain globally competitive, resource-based industries must look at repositioning to integrate more knowledge content so they can deliver more value-added production, better jobs, higher value exports, and more resilient rural communities.  The application of science and technology is important not only to the extraction of resources, but also to their transformation into usable and marketable products.

It is increasingly understood that Atlantic Canada’s competitors are not next door, but around the world.  The 2007 Speech from the Throne specifically identifies the Atlantic Gateway as a driver of new investments in transport and trade hubs.  The development of the Gateway is animportant factor in Atlantic Canada’s competitiveness, and continues to be a key priority for ACOA in terms of sustainable regional economic growth and the region’s contribution to enhanced national economic productivity and global competitiveness.  ACOA will continue to work with its national and regional partners to develop the Atlantic Gateway Strategy, and to ensure that regional and national stakeholders are engaged in this endeavour.

These priorities are among the key sectoral and horizontal issues on which the Agency will focus its policy, advocacy and co-ordination efforts during 2008-2009.  Included in these priorities are the Agency’s current priority advocacy files:  aquaculture; bioscience; science and technology; energy; environment; Atlantic Gateway; aerospace and defence; commercialization; population and immigration; and resource industries.  In developing and advancing these advocacy files, ACOA will continue to engage other policy stakeholders and work in partnership with other public and private sector stakeholders while advocating the Atlantic region’s interests at the national level.

2.3.1 Program Activity: Policy

Expected Results: Strategic, researched policy decisions reflecting opportunities and challenges of the Atlantic region’s economy, while considering enterprise and community development potential
Indicators:	Annual Targets: (2008-2009)
•         Extent to which policy analysis and research projects are useful and/or provided to input decision making with respect to Atlantic regional economic development including enterprise and community development supports and services	•         Continue to provide sound advice to decision makers based on environmental scanning, issue analysis and research related to Atlantic Canada economic development issues and opportunities
Performance Measurement Strategy:  Annual analysis of information from project reports, qualitative file reviews, key informant survey managed by the Agency’s policy network, and Atlantic Policy Research Initiative reports.  Longer term measurement will be accomplished via formal evaluations.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
5.9	5.9	5.9

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
41	41	41

Policy provides a well-grounded base of understanding for the development of the Agency’s strategic priorities and initiatives, program design, and input into national policy development and federal-provincial relations.  This function is supported by internal and external research, in part delivered by a dedicated ACOA fund, the Atlantic Policy Research Initiative (APRI).  The policy function is carried out by officials at the Agency’s head office, its regional offices, and in Ottawa.  Policy work is delivered through four sub-activities.

• Policy Analysis and Advice:  Provides ongoing analysis of challenges and opportunities, trends, emerging approaches and best practices, in order to present decision makers with well‑founded policy options or longer term strategies.
• Economic Analysis:  Provides analysis of the economic fundamentals that underpin the policy development process of the Agency.  Analysis of the regional economies and current economic conditions is done on a continuous basis, and research is conducted on various strategic economic issues.
• Policy Research:  The research function targets key priority areas such as innovation, commercialization and competitiveness, and seeks to actively involve regional and national public and private sector stakeholders.  In addition to undertaking research in support of the strategic advice and information to assist decision makers in the public and private sectors, ACOA’s APRI provides a mechanism to conduct research on socio‑economic issues affecting Atlantic Canada.
• Engagement:  Provides an opportunity for leaders from government, private sector and academia to participate in dialogue on key socio‑economic issues affecting Atlantic Canada and the country.  Policy round tables, strategically focused conferences, and presentations on subjects aligned with current priorities are some of the mechanisms used to engage stakeholders on Atlantic issues.

In 2008-2009, ACOA intends to focus its policy work on the following key areas:  the Atlantic Gateway; trade research and analysis; regional productivity and competitiveness issues, mainly facing resource industries; skills, labour force and population concerns; science and technology strategies and approaches for the region, including innovation and commercialization; and rural/urban issues.  The Agency’s policy activities also support the work of the Advocacy Champions and feed into co-ordination activities.

A number of engagement initiatives will be pursued regionally, nationally and internationally.  In 2008-2009, ACOA’s policy function will engage with the newly appointed private sector member of the Atlantic Canada Opportunities Board.  The Agency will support Canada’s lead representative on the Organisation for Economic Co-operation and Development’s Territorial Development Policy Committee for a two-year mandate, and will engage with the private sector and academia on initiatives such as Atlantica and Metropolis.

2.3.2 Program Activity: Advocacy

Expected Results:  Federal policies and programs that reflect Atlantic enterprise and community development needs and interests
Indicator:	Annual Target: (2008-2009)
•         Impact of Agency positions taken with respect to national policy and programs and the government’s capital procurement agenda	•         Demonstrated linkages between ACOA’s Advocacy priorities, federal government agenda and documented needs in Atlantic Canada
Performance Measurement Strategy:  An evaluation will be conducted to determine the impact of ACOA’s advocacy work.  This will be a qualitative assessment based on document review, stakeholder feedback and/or consultations.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
4.1	4.1	4.1

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
36	36	36

ACOA’s advocacy function aims to advance the region’s interests in national policy and program development in order to ensure that government initiatives are responsive to the needs of Atlantic Canada.  This is achieved by directing the attention of central agencies and other government departments to gaps in national programs and seeking their support of more effective approaches to addressing Atlantic Canada’s economic issues.  ACOA also assists Atlantic Canadian firms to be better positioned to access public sector procurement, support and services.

Effective promotion of Atlantic Canada’s interests is accomplished through environmental scanning and active monitoring of federal government priorities for linkages and impacts.  This, in turn, alerts government officials to emerging issues and provides information about Atlantic Canada to central agencies and other government departments and Cabinet, while influencing the government’s procurement agenda.

Since early 2005, the Agency has focused its advocacy efforts on key priorities, each led by a champion and reflecting both Atlantic Canadian priorities and the federal agenda.  For 2008-2009, ACOA’s priorities include: aerospace and defence; aquaculture; science, technology and commercialization; energy; population and immigration; the Atlantic Gateway; bioscience; environment; and resource industries.

The aerospace and defence priority serves to promote Atlantic Canadian companies for major federal procurement projects within the federal industrial regional benefits (IRBs) policy.  For 2008-2009, ACOA will focus on strengthening the sector by increasing efforts to create international networks and partnerships, raise awareness of federal procurement opportunities and encourage collaboration among stakeholders.  The Agency will continue to monitor the ongoing development of federal procurement policies from a regional perspective.

Aquaculture is an industry of strategic importance to Atlantic Canada.  It represents opportunities for wealth generation, employment creation, and diversification for the region’s rural and coastal communities.  In 2008-2009, the Agency’s focus will continue to be on innovation, R&D and commercialization of new technologies.  In addition, the Agency will work closely with the federal Department of Fisheries and Oceans (DFO), the Atlantic provincial governments and industry on the development and implementation of aquaculture renewal initiatives.  These initiatives will address the needs of the industry, as identified through various aquaculture networks, and provide the environment required for growth.   

The Agency will work with Industry Canada and other federal departments to implement the Federal Science and Technology strategy.  In particular, ACOA will work with the Business Development Bank, the Natural Science and Engineering Research Council and the National Research Council to broaden their alignment exercise to include ACOA activities and to better improve commercialization outcomes in Atlantic Canada.  

The Agency will focus its interventions in the energy sector on the development of strategies and concrete actions to attract investment, strengthen the ability of the supply sector to compete in new commercial activities at home and abroad, and stimulate the creation of new technologies to overcome exploration and development obstacles unique to Atlantic Canada.  This focus will also emphasize the potential of emerging alternative energy industries and seek to increase awareness of the investment opportunities they represent.

In 2008-2009, the Agency will continue to collaborate with federal-provincial governments to address demographic challenges facing Atlantic Canada.  Activities will include working with lead federal departments to educate them on realities within Atlantic Canada related to skills development strategies that will enhance post-secondary education, train workers to respond to the knowledge-based economy, and retrain older workers to participate more effectively in the workforce.

Federal priorities that relate to economic development include a comprehensive long-term plan for infrastructure.  ACOA will proceed with the implementation of an integrated Atlantic Gateway complement to the National Framework for Strategic Gateways and Trade Corridors.

The emerging bioscience sector remains a priority for the Agency.  Atlantic Canada has an excellent record of research and development in health sciences, fish growth science, and food processing, which will serve as a solid foundation for future growth.  The focus of advocacy activity will be to engage the other federal departments and stakeholders to support and grow the bioscience sector in Atlantic Canada.  

ACOA will develop strategies and plans, within the government’s environmental agenda, to identify emerging technologies and new trade and investment opportunities for this sector in Atlantic Canada.  This approach will require close collaboration between the Agency, other federal departments, the private sector and the academic community.

A significant portion of the economy in Atlantic Canada relies on the viability of its natural resources.  These industries need help to reposition themselves so they can better meet market demands within a global economy.  The Agency will engage stakeholders to help identify the means to diversify the region’s renewable resource base, which includes forestry, fishery/aquaculture and agriculture.  Specific interventions will focus on increasing productivity levels and moving toward higher end products and services.

2.3.3 Program Activity: Co-ordination

Expected Results:  Co-ordination of federal policies and programs within the region to form integrated approaches to development
Indicators:	Target:
•         Joint strategic initiatives that reflect common positions on defined enterprise and community issues	•         Develop strategic initiatives through collaborative efforts with other federal/provincial partners on issues such as population, productivity and competitiveness and access to capital
Performance Measurement Strategy: Annual targets will be measured through analysis of data from project reports, qualitative file reviews, ACOA’s Policy Network and the Privy Council Office (Intergovernmental Affairs). Five-year targets will be measured through an evaluation approach.

Financial Resources ($ millions)
2008-2009	2009-2010	2010-2011
2.2	2.2	2.2

Human Resources (Full-time Equivalents)
2008-2009	2009-2010	2010-2011
33	33	33

The Agency is mandated by its legislation to “[co-ordinate] policies and programs of the Government of Canada in relation to opportunities for economic development of Atlantic Canada.”  ACOA engages a range of economic partners to address the economic priorities of the Atlantic region through a coherent and collaborative approach to development.

• Federal-provincial relations:  ACOA works with the four Atlantic provincial governments, either bilaterally with individual provinces, or multi‑laterally (Atlantic-wide) to identify common goals and priorities, facilitate joint research, and co‑ordinate the delivery of economic development programs and services.
• Regional Federal Councils:  To help maintain effective linkages and partnerships that co‑ordinate departments’ action in the regions, ACOA works with key federal departments through the Federal Regional Councils, whose mandate includes the integration of improved service delivery, two-way communication with central agencies on regional perspectives and federal initiatives, and co‑operation with other jurisdictions, including provincial governments.  In 2008-2009, these councils will address an array of topics relevant to the region, including Public Service Renewal (New Brunswick and Prince Edward Island); Official Languages (Newfoundland and Labrador); the Treasury Board Secretariat’s Pathfinder Pilot Project (Nova Scotia); organizing forums on Aboriginal Issues (Newfoundland and Labrador); and Service Delivery Modernization
• Other government departments’ efforts in regional development:  ACOA works collaboratively with other federal departments to strengthen integrated federal approaches to regional development, increase federal capacity and delivery in the regions, and better align regional development priorities with the federal (national) agenda.

Challenges facing the region’s economic growth due to population decline and aging will drive ACOA and its partners to move forward on initiatives related to promoting Atlantic Canada as a business destination, attracting new businesses, and undertaking new research in 2008-2009.  ACOA will continue to explore joint approaches to issues with the Atlantic Provinces, via organizational mechanism such as the federal-provincial Senior Officials Committee (SOC), as well as the Regional Officials Committee for the Atlantic Gateway, which is now charged with developing a Gateway Strategy.  Other multi-level collaborations with the provinces will continue on common issues of importance to various parts of the Atlantic region, such as tourism and ocean technology in Newfoundland and Labrador.

ACOA’s relationship with other federal bodies based in Atlantic Canada is important.  Frequent consultation with central agencies will continue, as well as co-ordination and collaboration on senior-level federal outreach sessions and issue-specific discussions on priority areas.  Discussions with other regional development agencies will continue to ensure a co‑ordinated approach to regional development issues and challenges that affect all regions of the country.

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