ARCHIVED - Atlantic Canada Opportunities Agency - Report

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Section II - Analysis of Program Activities by Strategic Outcome

Strategic Outcome -
A Competitive Atlantic Canadian Economy

ACOA’s efforts in all four of the region’s provinces support the development of a competitive economy that generates long-term benefits for all Atlantic Canadians. This can be seen in economic growth through productivity improvements and enhanced standards of living across the region. Two specific indicators are used to assess the Agency’s performance vis-à-vis its strategic outcome: the impact of every dollar of ACOA expenditure in direct support of business on Atlantic Canada’s gross domestic product (GDP), and the labour productivity growth of ACOA-assisted firms.

The Agency’s activities are aligned with the Next Phase of Canada’s Economic Action Plan – A Low-Tax Plan for Jobs and Growth. ACOA remains well-positioned to support the federal government’s job creation agenda through programming designed to support SMEs and entrepreneurs as well as communities in both rural and urban settings. The federal commitment to improve military procurement is supported by ACOA’s involvement in the procurement process and the industrial and regional benefits policy, which benefits Atlantic Canada’s aerospace and defence, marine, and other industries. The National Shipbuilding Procurement Strategy also represents a significant opportunity for the Atlantic region over the short and longer terms.

The Government of Canada’s Atlantic Shipbuilding Action Plan is a long-term strategy that will facilitate the integration of Atlantic Canadian SMEs into the $33-billion federal shipbuilding initiative. The Plan, implemented by ACOA, requires close collaboration with all four Atlantic provincial governments, Atlantic SMEs, industry associations, prime contractors, economic development organizations, educational and research institutes, and other federal departments.

In the area of public infrastructure, the federal government provides support through initiatives such as the Building Canada Fund and the National Policy Framework for Strategic Gateways and Trade Corridors. In Atlantic Canada, ACOA continues to work with other federal departments and provincial governments to ensure that these and future programs are effectively designed and delivered, so that they respond to needs and capitalize on opportunities that exist in the region.

Although Atlantic Canada is still significantly rural by population measures, many areas benefit from the influence of urban economies. There are opportunities for further interaction between smaller communities and larger urban centres in Atlantic Canada, including attraction and retention of immigrants, business attraction and promotion, public transportation to and from smaller towns, and implementation of joint tourism and regional marketing initiatives. Through its community development programming, ACOA will remain a key player in working with community stakeholders and provincial governments to develop economic opportunities at a local level in Atlantic Canada, emphasizing the needs of the region’s rural areas.

The impact of restructuring in resource industries is significant in rural communities. Many of these communities are far from urban economies, where economic growth is diversifying and increasingly knowledge-based. Resource-based industries will continue to be important for regional development, but need to be repositioned so they can remain globally competitive and can deliver more value-added production, better jobs, higher value exports, and more resilient rural communities. Current initiatives in Atlantic Canada’s resource-based industries focus on ensuring a more competitive forest products industry, more diverse uses of agricultural products, a more sustainable fishery with emphasis on aquaculture and marketing, and further advances in mining and energy technologies.

Atlantic Canada’s energy sector has provided a significant source of economic activity in the region over the past decade, and new developments in the offshore oil and gas sector will help to sustain production over the coming years. The demand for Atlantic Canada’s energy products is expected to remain strong in the United States, and the Arctic’s oil and gas potential provide opportunities for Atlantic firms to benefit from the region’s significant arctic R&D capability and proximity for service/supply contracts. Through the activities of the Atlantic Canada Energy Office, the Agency continues to support the development of the region’s energy sector.

Atlantic Canada possesses an abundance of clean energy potential, with one of the best wind energy profiles in North America. Several wind farms are already in operation and more are planned across the region. The development of bio-energy/biofuels in Atlantic Canada is accelerating, with prospects in wood waste, agricultural products, municipal waste and algae. Studies on the potential for tidal/ocean energy in Atlantic Canada are currently under way, with strong possibilities in the Bay of Fundy region. The Muskrat Falls hydro project proposed in Labrador will develop more than 800 megawatts of the Churchill River’s electrical power potential, one of the largest remaining undeveloped hydroelectric projects in North America. In support of federal investments in clean energy, ACOA is also collaborating with the Atlantic Provinces to develop an Atlantic Energy Gateway that will facilitate regional approaches on issues related to renewable energy development, such as integrating systems operations, planning and transmission.

One of the most urgent strategic issues facing the region concerns labour market and skills shortages, particularly as two major projects – Muskrat Falls and the national shipbuilding work – are set to begin. There is a growing consensus that a regional approach will be essential to address labour market issues. Through its coordination role, the Agency is prepared to work with the four Atlantic Provinces to ensure that shared labour market and skills priorities are managed collaboratively.

The following section summarizes the main planning highlights, expected results, and performance indicators and targets for ACOA’s program activities, demonstrating how the Agency remains a viable and essential partner in Atlantic Canada – delivering quality programs and services to Atlantic Canadians.

Program Activity: Enterprise Development

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A Competitive Atlantic Canadian Economy	Enterprise Development	Innovation and Commercialization Productivity and Growth International Business Development

Program Activity Description

Notwithstanding recent overall economic 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. ACOA will work in partnership with Atlantic Canadian enterprises, stakeholders, industry and institutions to improve the growth and productivity of Atlantic Canada’s economy, leading to increased competitiveness, earned incomes and job creation. ACOA works to improve the region's capacity for economic growth through a variety of strategically focused mechanisms, which include: assisting enterprises, particularly SMEs, to help them start, expand or modernize their businesses, and establish and expand export activities; partnering with universities and other institutions to increase the region’s research and development capacity, commercialization and productivity; and promoting and participating in the region’s transition to a knowledge economy.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
175.6	175.1	175.2

Human Resources (FTEs)

2012-13	2013-14	2014-15
188	185	185

Expected Result	Performance Indicator	Target
Improved growth and competitiveness of Atlantic SMEs	Survival rates of ACOA-assisted firms	An annual variation of five percentage points higher than the survival rate of unassisted firms
	Sales growth of ACOA-assisted firms	Annual sales growth of ACOA-assisted firms that matches or exceeds the sales growth of comparable firms6

Planning Highlights

In 2012-13, the Agency will continue to use its resources and programs to maintain its focus on improving the productivity and competitiveness of Atlantic Canadian companies.

In the presence of intense global competition, increasing the levels of research and development (R&D) and innovation is fundamental to improving Atlantic Canada’s competitiveness and to closing the productivity gap with the rest of the country and the world. This is becoming increasingly important given some of the promising opportunities on the horizon (e.g. energy and shipbuilding sectors). A priority for the coming year will be the continued implementation of the Agency’s innovation and commercialization strategies, which include initiatives to increase R&D, the adoption and adaptation of technology, and the commercialization of technologies developed in Atlantic Canada, all with the objective of increasing the profitability and the survival rate of Atlantic firms. ACOA will continue to support emerging clusters within the knowledge-based economy. As well, ACOA’s investments will assist in the development of technologies that enable resource-based industries such as oil and gas, aquaculture and agri-food, fisheries, forestry and mining to enhance their competitiveness.

ACOA also invests in projects that enhance access for Atlantic Canadians to the information, business skills and financing they require to start and/or grow a business. Financing SMEs to undertake productivity and growth projects will remain a key priority for the coming year, with particular emphasis on projects related to enhanced productivity and the acquisition of technology. In 2012-13, there will be an enhanced emphasis on coordination of the Agency’s investments in business skills and on ensuring that SMEs are equipped with the skills needed to address emerging issues such as demographic changes and skilled-labour shortages. As established in the Atlantic Shipbuilding Action Plan, ACOA will ensure that SMEs are aware of the process and requirements in place to secure supply-chain opportunities arising from shipbuilding projects and related work. To help ready SMEs to seize these opportunities, ACOA will proactively support their development in areas such as marketing, process improvements, and the acquisition of technology and certification.

In the area of international business development, ACOA will continue to align itself with Canada’s Global Commerce Strategy by pursuing international opportunities and promoting Atlantic Canada as a place to do business. In 2012-13, ACOA will continue to work with its partners to identify new opportunities in terms of sectors, markets and strategies; work with universities and research institutions to support commercialization efforts; and work with other funding partners to identify efficiencies, collaboration and cost savings in the delivery of joint activities. ACOA’s funding will contribute to increased export activity by SMEs and expanded foreign direct investment opportunities in Atlantic Canada.

Program Activity: Community Development

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A Competitive Atlantic Canadian Economy	Community Development	Community Mobilization Community-based Business Development Community Investment Infrastructure Programming

Program Activity Description

The Atlantic economy is built on the region’s many geographic, linguistic and cultural communities. From small remote villages to larger urban centres, the opportunities and challenges vary significantly. Communities are the foundation of economic development and are critical for economic prosperity. ACOA recognizes the importance of these communities in an economic development framework and supports their efforts to develop the resources they need to assume full responsibility for their own economic development. For those reasons, ACOA focuses targeted efforts and strategies toward community development and also aims to provide and maintain quality public infrastructure. ACOA works in co-operation with other levels of government, other federal government departments, non-government organizations and community groups to leverage support, coordinate economic development, react to economic challenges and, finally, to work with Infrastructure Canada and the Provinces to oversee and ensure the flow of federal funds allocated to each region through the various infrastructure funding streams. This requires a flexible, holistic approach based on the realities of a given community’s capacities, strengths and challenges. Community development is a bottom-up process that helps to develop the tools, resources and initiatives that support individual and unique strategic development.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
89.9	82.6	80.5

Human Resources (FTEs)

2012-13	2013-14	2014-15
83	80	80

Expected Result	Performance Indicator	Target
Dynamic and sustainable communities for Atlantic Canada	Increased capacity in community decision making, planning and delivery	Evidence of impact resulting from evaluations and supported by data
	Impact of ACOA projects on Community Development in Atlantic Canada as demonstrated by qualitative reviews	70% (percentage of projects successful in achieving intended objectives)
	Growth in sales of CBDC-assisted clients versus comparable firms	To establish a baseline in collaboration with the other RDAs from which targets will be developed

Planning Highlights

In 2012-13, ACOA will continue to work with communities and community economic development organizations to identify and implement economic opportunities benefiting the region’s rural and urban areas. This will involve investing in initiatives that provide value for investment while at the same time addressing local, community-based priorities.

ACOA uses its various programs – in particular, the Innovative Communities Fund (ICF), Community Futures (CF) and the Business Development Program (BDP) – to stimulate economic development at the community level. Through these funding mechanisms, the Agency will place greater emphasis on strategic investments to improve the productivity and competitiveness of Atlantic SMEs and the communities in which they operate.

The Agency will also focus on repositioning community mobilization to better respond to changing economic circumstances. This will include implementing approaches to maximize the efficiency and effectiveness of community mobilization resources and engaging key community development stakeholders in the process.

ACOA will continue to work with the Community Business Development Corporations (CBDCs) across Atlantic Canada to increase access to capital for small businesses in rural communities. This will include strengthening CBDC governance to ensure strong representation from key economic groups in local areas. The Agency will continue to support the CBDC network in the implementation of the Community Futures of Tomorrow model in order to optimize results, including growth in sales of CBDC-assisted clients. ACOA is coordinating a national exercise to compile data from Community Futures Organizations (CFOs) that will be used to establish a national baseline for related performance targets. These will be used by departments for various performance indicators, including the increase in sales of CFO-assisted firms versus sales of firms that have not received such assistance.

The official languages minority communities and the aboriginal communities remain ACOA priorities for community development. The Agency will continue to work with these groups to identify investments that will support strategic development. ACOA will continue to implement measures to ensure that it fulfills its obligations under the Official Languages Act and the Agency’s Official Languages Policy. Furthermore, work will be undertaken to implement new guidelines and procedures with respect to ACOA’s legal duty to consult with the aboriginal communities.

Lastly, the Agency’s main focus in the area of infrastructure will be to collaborate with Infrastructure Canada in the continued delivery of infrastructure programs as well as the long-term planning of future infrastructure programs.

Program Activity: Policy, Advocacy and Coordination

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A Competitive Atlantic Canadian Economy	Policy, Advocacy and Coordination	Policy Advocacy Coordination

Program Activity Description

ACOA’s Policy, Advocacy and Coordination (PAC) program activity is central to identifying and effectively responding to opportunities and challenges facing the regional economy. PAC provides intelligence, analysis and well-grounded advice on a broad range of issues and topics, and it informs and supports decision making by the Agency and the minister. In offering strategic, researched policy positions that reflect the region’s potential, in influencing national policies and programs that affect Atlantic Canada’s development and interests, and in coordinating other policies and programs within the region to form integrated approaches to development, PAC helps carry the Agency’s agenda forward and helps ensure that ACOA overall remains relevant and responsive to the opportunities and challenges in Atlantic Canada.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
11.3	11.3	11.3

Human Resources (FTEs)

2012-13	2013-14	2014-15
82	80	80

Expected Result	Performance Indicator	Target
Policies and programs that strengthen the Atlantic economy	Atlantic regional economic policies and programs that respond to regional development opportunities	Collaboration with other federal departments and engagement with partners in Atlantic Canada to implement the Atlantic Shipbuilding Action Plan and ensure that Atlantic Canada has the appropriate labour force to address emerging economic opportunities in the region

Planning Highlights

In 2012-13, Policy, Advocacy and Coordination’s support for the Agency’s key activities will continue to ensure that ACOA’s programs and activities are responsive and relevant to both national priorities and the needs of Atlantic Canadians. The Agency will pursue its collaboration with Atlantic provincial governments to explore joint approaches for economic development. Through its coordination role, the Agency will work with the four Atlantic Provinces and other stakeholders to ensure that Atlantic Canada’s skilled labour force is appropriate to meet the needs of major new projects in the region, such as the shipbuilding initiative and the planned Muskrat Falls hydroelectric development.

The Agency will continue to play a critical role in delivering the federal agenda in Atlantic Canada, with ACOA’s regional offices providing research and analysis as well as on-the-ground policy and program coordination. Research and analysis will help to identify opportunities for community development, determine more effective approaches to local economic development, and support international business development by exploring what Atlantic businesses need to know and what skills their staff need to better connect with global value chains in not only existing but emerging sectors (e.g. ICT, shipbuilding and renewable energy). The Agency will continue to coordinate its research agenda, which will increase collaboration internally and provide strategic research to support sound decision making.

ACOA will focus its PAC efforts on key issues reflecting both Atlantic Canadian priorities and the federal agenda so that federal government initiatives and Atlantic regional economic policies and programs respond to the actual challenges and opportunities facing Atlantic Canada. ACOA will advocate for the interests of Atlantic Canada in priority areas such as energy and the environment, science and technology, resource industries and skills development. The Agency’s procurement advocacy efforts will work to secure industrial regional benefit commitments for Atlantic Canadian SMEs resulting from procurements within the Canada First Defence Strategy and the National Shipbuilding Procurement Strategy. Through the implementation of the Atlantic Shipbuilding Action Plan, ACOA will play a key role in helping to maximize opportunities for Atlantic SMEs to participate in the $33-billion federal shipbuilding initiative.

The Agency, in co-operation with Transport Canada, will continue to lead the coordination and integration of Atlantic Gateway activities across federal departments, provincial governments, private-sector partners, gateway councils and other stakeholders in the region. Under the direction and leadership of the Atlantic Canada Energy Office, the Atlantic Energy Gateway initiative will aim to facilitate the development of the Atlantic renewable energy sector by fostering collaboration, common understanding and communication among governments and the private sector in order to maximize and expedite the development of clean and renewable energy resources in the region. In order to support the growth and development of Atlantic Canada’s energy sector, ACOA will continue to work to facilitate and coordinate federal efforts in support of the development of new energy projects in the region, while engaging provincial governments, offshore boards, industry and academia.

Program Activity: Internal Services

STRATEGIC OUTCOME	PROGRAM ACTIVITY	PROGRAM SUB-ACTIVITY
A Competitive Atlantic Canadian Economy	Internal Services	Governance and Management Support Resource Management Services Asset Management Services

Program Activity Description

Internal Services are groups of related activities and resources administered to support the needs of programs and other corporate obligations of an organization. It includes the following groups: management and oversight services; communications services; legal services; human resources management services; financial management services; information management services; information technology services; real property services; materiel services; acquisition services; and travel and other administrative services. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
30.7	29.6	29.6

Human Resources (FTEs)

2012-13	2013-14	2014-15
271	269	269

Planning Highlights

Internal Services’ goal will be to focus on the management priorities described in Section I, which are public service renewal, efficiency, management information, and values and ethics.

ACOA is a participant in the Federal Sustainable Development Strategy (FSDS) and, through its Internal Services program activity, contributes to Theme IV of the strategy: Shrinking the Environmental Footprint – Beginning with Government. The FSDS goal that falls under Theme IV is Greening Government Operations (GGO), which has five target areas that apply to ACOA.

• Surplus Electronic and Electrical Equipment
• Printing Unit Reduction
• Paper Consumption
• Green Meetings
• Green Procurement

Specific details on ACOA’s plans for each of these GGO target areas can be found in the Agency’s supplementary report Greening Government Operations.

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