ARCHIVED - Atlantic Canada Opportunities Agency

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Enterprise Development; Community Development; and Policy, Advocacy and Coordination

Name of Transfer Payment Program: Business Development Program – Voted

Start date: July 25, 1995

End date: March 31, 2010 (Approval for continuation of the program will be sought.)

Description: The Agency plays a prominent role in economic development in Atlantic Canada, and has the broad mandate of increasing employment and earned incomes of Atlantic Canadians. The objectives of the Business Development Program (BDP) are in support of this mandate, and include the following:

• to increase the number of successful business start-ups;
• to increase the successful expansion and modernization of small and medium-sized enterprises (SMEs); and
• to enhance the business environment in Atlantic Canada.

The program is designed to help set up, expand or modernize businesses, and focuses on SMEs, offering access to capital in the form of interest-free, unsecured, repayable contributions. In addition to capital investment, funding is also available for business studies, training, marketing and quality assurance, to help in bidding for and acquiring public and private procurement contracts or to develop an innovative product or service. Non-profit organizations providing support to the business community, and not-for-profit activities that support economic development in the region, are eligible for funding under the program.

Eligible commercial recipients include individuals, sole proprietorships, partnerships, co-operatives, a body corporate, or a Crown corporation that carries on, or is about to carry on, legitimate profit-driven business activities in Atlantic Canada. This does not include a government or individual municipality.

Non-commercial eligible recipients include not-for-profit incorporated entities, and may include a Crown corporation, a provincial government, a municipal government, a not-for-profit organization owned or controlled by a provincial or municipal government, local economic development associations, an institute, or a university.

The BDP is one of the transfer payment programs, along with the Innovative Communities Fund (ICF), being used for the delivery of the Community Adjustment Fund (CAF) announced in Budget 2009. CAF is being delivered as a sub-component of the BDP. Objectives for funding under CAF include:

• providing economic stimulus to mitigate the short-term impacts of the economic downturn by creating employment opportunities; and
• addressing transitional and adjustment challenges in restructuring communities.

CAF is designed to address the short-term economic impacts of the global economic downturn on communities across the Atlantic region. This funding sunsets on March 31, 2011.

Delivery of the BDP-CAF is guided by the following principles and considerations when assessing eligible projects and activities:

• The capacity of the project or activity to be initiated quickly;
• The employment generation that can be expected over the life of the fund, per dollar of federal investment; and
• The leverage from provinces or other funding partners.

For the purposes of BDP-CAF, a community is eligible under this program if its population is 250,000 or lower and it meets the following criteria:

(A)

• It has experienced major layoffs resulting in significant job losses as a percentage of total employment within the community; and,
• There is a lack of alternative employment opportunities within the community to offset job losses.

OR

(B)

• The year-over-year change in employment insurance beneficiaries is equal to or greater than 20 percent.

Priority in the selection of projects in eligible communities is given to rural, single-industry communities.

Expected results: Whereas new employment is the direct result of business growth, particularly among SMEs, the Agency seeks to provide people with encouragement, advice and information, and the capital they need to start and expand their own businesses. Emphasis on improving SME productivity through innovation, skills development and export development is also at the core of ACOA's activities.

The BDP is strongly linked to the Agency, but places its greatest focus on improving the growth and competitiveness of Atlantic SMEs, leading to increased productivity, earned incomes and job creation.

Immediate results (one to three years) expected to be generated by the BDP include, among other things, an increase in the number of SMEs that have modernized or expanded, an increase in the number of SME start-ups, increased adoption of SME business management practices, increased SME investment, and the development of new products, services and processes.

In the longer term (three to five years), it is expected that results tied to transfer payments investments will be in the form of increased employment within the SMEs, increased wages and salaries of their employees, increased domestic and export sales, increased productivity and profitability, increased number of exporters or export markets, increased firm survival rates, and the commercialization of new products, services and processes.

For the BDP-CAF, performance measurement is primarily focused on economic opportunities in the short term, for the duration of the project, and other short-term stimulus measurements.

For the BDP-CAF, the results will be measured by the following indicators:

• Number of projects/initiatives generated;
• The value of investments created in enterprises or communities; and
• Enterprises created, maintained or expanded

Link to Three-Year Plan for Transfer Payment Programs

http://www.acoa-apeca.gc.ca/English/publications/ParliamentaryReports/Pages/RPP_2010-2011_1.aspx

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Community Development

Name of Transfer Payment Program: Innovative Communities Fund – Voted

Start date: April 1, 2005

End date: March 31, 2010 (Approval for continuation of the program will be sought.)

Description: Working with communities at various stages of economic development, this program supports non-commercial/non-profit strategic initiatives that target the economic development needs of communities and stimulate economic development. Working in collaboration with Atlantic communities and stakeholders, the Innovative Communities Fund (ICF) builds on the strengths of communities and provides the tools needed to identify opportunities available for their sustainable economic growth.

Budget 2009 recognized that communities across Canada were suffering as a result of an economic downturn, and therefore provided $1 billion over two years to establish the Community Adjustment Fund (CAF). It provides economic stimulus mitigating the short-term impacts of the economic downturn by creating economic opportunities and addressing transitional and adjustment challenges in restructuring communities. The ICF is one of two TPPs, along with the BDP, that is being used to deliver CAF. CAF is being delivered as a sub-element of the ICF.

Expected results: The ICF targets both developmental and long-term program outcomes.

Short-term outcomes aimed at the economic development needs of rural communities are:

• Communities access the funding and/or expertise they require to develop the proposals;
• Partnerships developed; and
• Increased citizen engagements and buy-in.

In the longer term, the expected results are:

• Improved community economic development planning capacity;
• Improved project management capacity; and
• Engagement of project partners.

Link to Three-Year Plan for Transfer Payment Programs

http://www.acoa-apeca.gc.ca/English/publications/ParliamentaryReports/Pages/RPP_2010-2011_1.aspx

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Community Development

Name of Transfer Payment Program: Community Futures Program – Voted

Start date: May 18, 1995

End date: October 2, 2010 (Approval for continuation of the program will be sought)

Description: The purpose of this national program is to help communities develop and implement local solutions to local problems. The program provides financial support to CF organizations (CFOs) that, in collaboration with other partners and stakeholders, can assess a community's situation and develop strategies to meet its needs, provide support to SMEs and social enterprise, and undertake community economic development initiatives. The objective of the program is to further the ultimate objective of helping communities to successfully pursue (a) economic stability, growth and job creation; (b) diversified and competitive local rural economies; and (c) sustainable communities. In Atlantic Canada, the program provides funding to 41 CFOs, known in the region as Community Business Development Corporations (CBDCs), which provide financial and technical assistance to SMEs in rural areas. More information on these services provided through the CBDCs can be found on ACOA's website at: http://www.acoa-apeca.gc.ca/English/IWantTo/StartABusiness/Pages/GetHelpFinancing.aspx.

Expected results: Assisting selected communities in the development of their economies and supporting the growth of small businesses, the Community Futures Program's short-term results are:

• enhanced business development services (e.g. information, counselling, referrals, training);
• improved access to capital and leveraged capital through loans, loan guarantees, and equity investments to businesses;
• strengthened community strategic plans and more effective implementation through projects, partnerships and other community economic development initiatives; and
• enhanced marketing to increase awareness and use of Community Futures organizations.

In Atlantic Canada, the short-term expected results of the program, based on the role and responsibility of the CBDCs, are to ensure that Atlantic Canadian businesses have access to capital, and business information and counselling.

Link to Three-Year Plan for Transfer Payment Programs

http://www.acoa-apeca.gc.ca/English/publications/ParliamentaryReports/Pages/RPP_2010-2011_1.aspx

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Enterprise Development

Name of Transfer Payment Program: Atlantic Innovation Fund – Voted

Start date: May 10, 2001

End date: March 31, 2010 (Approval for continuation of the program will be sought)

Description:
The objectives of the program are:

• to increase activity in and to build capacity for innovation, research and development (R&D), which leads to technologies, products, processes or services that contribute to economic growth in Atlantic Canada;
• to increase the capacity for commercialization of R&D outputs;
• to strengthen the region's innovation capacity by supporting research, development and commercialization partnerships and alliances among private sector firms, universities, research institutions and other organizations in the Atlantic system of innovation, and to increase their critical mass; and
• to maximize benefits from the national R&D programs.

Eligible recipients include commercial and non-commercial entities such as, but not limited to, universities, colleges, other post-secondary educational institutions, business associations, research institutions and private sector firms.
Federal departments, including federal research laboratories and institutes, and provincial government departments, are not eligible recipients.

Expected results:
Immediate results (one to three years) expected to be generated by the AIF include:

• institutions that encourage applied research with commercialization intent. Performance will be measured through the number and nature of research plans and research projects that identify a specific commercial application, private sector partner, or commercialization mechanism; new products, services, and processes expected to be developed and commercialized, by strategic sector; or new technology applications in existing sectors and spin-off companies planned or set up.
• the development of meaningful stakeholder partnerships and alliances. Performance will be measured through evidence that institutions are managing intellectual property in support of commercialization.
• the establishment of sound project management practices. Performance will be measured through evidence that a project manager has been assigned, milestones met, timely progress reporting, and the ability to deal with challenges.
• the ability to leverage project funding from other sources. Performance will be measured through financial and non-financial contributions of proponents; contributions of partners and contributions of other federal, provincial and municipal agencies; and the total percentage leveraged from other contributors vs. AIF funding.
• an increase in research and development activity. Performance will be measured by the extent to which projects would not have occurred without the AIF (project incrementality) – commercial and non-commercial – and the number of organizations that continue to undertake R&D projects after AIF funding.
• an increased private sector participation in research and development. Performance will be measured through the number of Atlantic-based private sector organizations taking a lead role on projects (i.e. private sector proponents) and the number of private sector organizations involved in institutional projects.

Link to Three-Year Plan for Transfer Payment Programs

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Community Development

Name of Transfer Payment Program: Recreational Infrastructure Canada – Voted

Start date: April 1, 2009

End date: March 31, 2011

Description: The Recreational Infrastructure Canada (RInC) program provides $500 million nationally for projects to rehabilitate recreational facilities across Canada, which must be completed by March 31, 2011.

Through RInC, the Government of Canada has committed, over two years, to support upgrades and repairs of existing recreational assets, including new construction that adds to or replaces existing recreational infrastructure assets or capacity.

The program is designed to provide a timely, targeted stimulus to the economy, and to help mitigate the impacts of the current global economic recession by increasing the total volume of construction activity related to recreational infrastructure. Through the rehabilitation of recreational infrastructure, this program also encourages participation in physical activity and community building.

Expected results: This national initiative is expected to provide a timely, targeted, and temporary stimulus to the Canadian economy, and help mitigate the impacts of the global economic recession, by increasing the total amount of construction activity related to recreational infrastructure.

Link to Three-Year Plan for Transfer Payment Programs

http://www.acoa-apeca.gc.ca/English/publications/ParliamentaryReports/Pages/RPP_2010-2011_1.aspx

Strategic Outcome: A competitive Atlantic Canadian economy

Program Activity: Enterprise Development

Name of Transfer Payment Program: Saint John Shipyard Adjustment Initiative – Voted

Start date: May 29, 2003

End date: May 31, 2011 (On July 23, 2009, ministerial approval was obtained to extend the duration of this initiative by one year to May 31, 2011.)

Description: Aims to address the impact of the lack of manufacturing activities at the site (the former Saint John shipbuilding yard) and its economic impact on the province of New Brunswick.

Expected results: The objectives of the program are to ensure the closure of the shipyard operations located at the site and the redevelopment of the site for other economic development use. The program includes all activities related to the development of the site for other industrial uses, such as an industrial park facility. It also has supported Irving Shipbuilding Inc. (or its affiliates) in taking advantage of industrial opportunities by assisting in the financing of qualified projects within the province of New Brunswick.

Link to Three-Year Plan for Transfer Payment Programs

http://www.acoa-apeca.gc.ca/English/publications/ParliamentaryReports/Pages/RPP_2010-2011_1.aspx

Part A: Green Procurement Capacity Building

Performance Measures For Part A:

1a. Number of procurement and materiel management staff with formal green procurement training (e.g., C215 or tailored in-house alternative) relative to total number of procurement and materiel management staff.

1b. Number of acquisition cardholders with formal green procurement training (e.g., C215 or tailored in-house alternative) relative to total number of acquisition cardholders.

2. Number of performance evaluations of managers and functional heads of procurement and materiel management that incorporate environmental considerations, relative to total number of performance evaluations of managers and functional heads of procurement and materiel management.

3. Number of departmental procurement processes and controls that incorporate environmental considerations, relative to total number of departmental procurement processes and controls that should address environmental considerations. Alternatively, departments can report on progress and plans to improve the integration of environmental considerations in management processes and controls relative to procurement.

Part B: Use of Green Consolidated Procurement Instruments

Performance Measures For Part B:

Dollar value of purchases against green consolidated procurement instruments (as designated by PWGSC) for a specified good or service relative to total dollar value of purchases for that good or service. Departments should include a minimum of two goods or services (e.g. IT hardware, imaging devices, and paper).

When a green consolidated procurement instrument (as designated by PWGSC) is not used or is unavailable for the specified good or service, this performance measure should be used: Dollar value of purchases that incorporate environmental considerations for a good or service relative to total dollar value of purchases for that good or service. Departments should indicate when a green consolidated procurement instrument for a good or service (as designated by PWGSC) is not used.

Part C: Reduction Initiatives for Specific Goods (Optional/Where Applicable)

Performance Measure For Part C:

Total quantity of a consumable purchased (e.g., paper) or an asset owned/leased (e.g., printing devices) relative to total number of full-time employees (FTEs).  

Name of Horizontal Initiative: Atlantic Canada Tourism Partnership

Name of lead department(s): Atlantic Canada Opportunities Agency

Lead department program activity: Community Development

Start date of the Horizontal Initiative: April 1, 2009

End date of the Horizontal Initiative: March 31, 2012

Total federal funding allocation (start to end date): $9,975,000

Description of the Horizontal Initiative (including funding agreement): The Atlantic Canada Tourism Partnership (ACTP) is a nine-member, pan-Atlantic marketing consortium comprised of the Atlantic Canada Opportunities Agency, the four provincial tourism industry associations, and the provincial departments responsible for tourism in Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island. ACTP is dedicated to promoting Atlantic Canada as a leading vacation destination in key American and European Pacific markets.

The 2009-2012 ACTP is a $19.95-million agreement that supports:

• fully-integrated marketing strategies (consumer, trade and media relations) based on sound market research, economies of scale, and commonality;
• funding that is incremental to provincial marketing budgets;
• the preservation of provincial brand equity;
• marketing activities being dictated by the marketplace;
• clear and responsive measurement systems of benefit to all four Atlantic provinces; and
• end-of-agreement project evaluations.

Additional information on the Atlantic Canada Tourism Partnership can be found at: http://www.actp-ptca.ca/index.html.

A memorandum of understanding for the renewal of the Atlantic Canada Tourism Partnership was signed on April 1, 2009. This initiative directly supports the Agency's long-term strategic outcome.

Shared outcome(s): The 2009-2012 ACTP is expected to generate $10 in incremental economic activity for every $1 invested in marketing. The three-year revenue target is $190 million in incremental revenues for tourism SMEs in Atlantic Canada.

Governance structure(s): The activities of the ACTP are managed by a ten-person management committee, consisting of the ACOA vice-president responsible for tourism and the director general of Tourism Atlantic; the four provincial deputy ministers responsible for tourism; and the four tourism industry association presidents (or their permanent designates). Decisions of this management committee are by consensus. Six members constitute a quorum, provided all four provinces are represented, with both government and industry present, as well as ACOA. A Canadian Tourism Commission representative sits as an ex-officio member of the management committee.

The management committee is responsible for the administration and management of the agreement, allocation of annual budgets on a per market basis, approval of annual program work plans and budgets, and evaluations of program activities. It oversees the work of a marketing committee, develops and oversees a communications policy, and provides program interpretation and dispute resolution.

Planning highlights: Each year (including 2010-2011) the marketing committee researches and prepares fully integrated consumer advertising, and travel trade and media relations marketing strategies, all for the management committee's approval. These strategies will be implemented by program managers, who report directly to the marketing committee.

Expected Results:

$55.2 million in export revenues in each year of the partnership
$165.6 million in export revenues during the life of the partnership

Results to be achieved by non-federal partners (if applicable):
$10 in tourism revenues for every $1 investment in marketing.

Contact information:

Rob McCloskey
Director General, Tourism Atlantic
Atlantic Canada Opportunities Agency
P.O. Box 40
Charlottetown, Prince Edward Island
C1A 7K2
Telephone: 902-626-2479
E-mail: Rob.McCloskey@acoa-apeca.gc.ca

Name of Horizontal Initiative: International Business Development Agreement (IBDA)

Name of lead department(s): Atlantic Canada Opportunities Agency

Lead department program activity: Enterprise Development (program sub-activity: Trade)

Start date of the Horizontal Initiative: April 11, 2005

End date of the Horizontal Initiative: March 31, 2011

Total federal funding allocation (start to end date): $8.4 million

Description of the Horizontal Initiative (including funding agreement): In May 1994, ACOA entered into an agreement (Canada/Atlantic Provinces Agreement on International Business Development, also known as IBDA) with the four Atlantic provinces, Foreign Affairs and International Trade Canada, and Industry Canada to “undertake specific measures to optimize regional coordination on a pan-Atlantic scale and combine limited resources to coordinate trade-related activities”. With an initial investment in 1994 of $3 million for three years, the agreement was extended in 1997 for an additional three years and $2 million, and in 2000 for $8 million and an additional four years. Funding was cost-shared 70/30 by the federal (through ACOA's IBDP) and the provincial governments.

In 2005 with $7 million from its IBDP, ACOA entered into a new IBDA with its federal and provincial partners to continue the work done in previous years. The commitment to this IBDA, with the increased funding allocation, attests to both the IBDA's positive results and its significance for the future of the region's international business development.

More information can be found on the IBDA home page: http://www.acoa-apeca.gc.ca/English/ibda/Pages/HomePage.aspx

Shared outcome(s):
The shared outcomes for the IBDA partners support ACOA's priorities for trade, and are (1) increased number of new exporters; (2) existing exporters reporting sales to new markets; and (3) existing exporters reporting increased sales to existing markets.
Since the original IBDA commenced in 1994, the Agency and its partners have administered over 230 projects involving some 4,000 Atlantic Canadian companies. The IBDA assisted 192 companies to begin exporting, 405 exporters to increase their export sales, and 278 exporters to expand into new markets.

Governance structure(s): ACOA is the lead organization for this initiative and houses the secretariat responsible for administering the agreement. A management committee, comprising a representative from each of the partners, is responsible for the planning and management of the agreement's programs and the evaluation of projects.

Partners:
Federal departments and agencies (70% funding):
ACOA (lead department)
Foreign Affairs and International Trade Canada (non-funding partner)
Industry Canada (non-funding partner)

Provincial governments (30% funding):
Business New Brunswick
Nova Scotia Business Inc.
Newfoundland and Labrador Department of Innovation
Trade and Rural Development
Prince Edward Island Business Development Inc.

Planning highlights: The IBDA will continue to build upon its accomplishments to date, its extensive experience, and lessons learned to further contribute to sustained growth in international business for the Atlantic region. Through its four key elements, the IBDA will (1) expose sectors and companies to export market opportunities and ensure that they are well prepared with the capability, knowledge and information required for developing international business; (2) develop longer-term strategies and implementation plans for international business development and undertake supporting research on companies' needs and best practices; (3) assist sectors and companies by obtaining market intelligence and contacts, identifying international market opportunities and applying this knowledge to trade development activities; and (4) undertake business activities that support sector export development strategies and contribute to contacts, alliances and ultimately sales for both existing and new exporters.

Expected results: The expected results will be an increase the number of new exporters, an increase in sales for existing exporters in their existing markets, and an increase in sales for existing exporters in new markets. These targets will be achieved by involving Atlantic companies in training and awareness activities (just-in-time, one-on-one and sector-specific training seminars and workshops), planning and research (development of sector export strategies), market information and intelligence (market studies and in-market consultants) and international business development activities (trade shows, incoming and outgoing missions, etc.). To measure success, progress surveys will demonstrate:
(1) Training and Awareness: the number of companies that have an increased knowledge of their target markets, that are reporting that the training contributed to establishing new alliances, partners brokers or distributors, that are committing more time and money to initiate/expand export activities, etc.;
(2) Planning and Research: the extent to which industries are bringing better thought out and longer-term projects, the degree to which results of studies are reflected in program planning and project proposals, etc.;
(3) Market Information and Intelligence: the number of companies that report first time sales to targeted markets, report new alliances, etc.; and
(4) International Business Development Activities: the number of companies reporting increased sales, investment in time and money in targeted markets, new alliances, pursuing leads, developing new market strategies, etc.

Federal partner: Foreign Affairs and International Trade Canada

Expected results: Same as ACOA

Federal Partner: Industry Canada

Expected results: Same as ACOA.

Results to be achieved by non-federal partners (if applicable): Same as for federal partners.

Contact information:
Michel Têtu
Director General, Trade and Investment
Atlantic Canada Opportunities Agency
P.O. Box 6051
Moncton, New Brunswick
E1C 9J8
Tel: 506-851-6496
E-mail: Michel.Tetu@acoa-apeca.gc.ca