ARCHIVED - Economic Development Agency of Canada for the Regions of Quebec - Report

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Section 2 - Analysis of Program Activities for the Strategic Outcome

This section provides information on the Agency’s strategic outcome and program activities. For each program activity, a description is presented, along with planning highlights.

2.1 Strategic outcome: Quebec’s regions have a growing economy

The Agency’s strategic outcome reflects the Agency’s mandate to promote the long-term economic development of the regions of Quebec.

The Government of Canada has undertaken to foster the prosperity of all regions. It intends to stimulate growth through new investment in enterprises, innovation and knowledge transfer, trade, modernization of infrastructure, development of clean energy, and more besides. By virtue of its mandate, the Agency is central to the government’s major priorities. Also, the Agency’s strategic outcome contributes to strong economic growth, one of the Government of Canada’s targeted results.

Challenges associated with the strategic outcome

In order to respond to the structural challenges of the Quebec economy and support long-term growth, the Agency’s intervention priorities must contribute to the sustainable renewal of Quebec’s regional economies.

Development of enterprises’ competitive capability and enhancement of their productivity will enable them in particular to confront the ongoing globalization and the impact of future demographic challenges, while being conducive to Quebec’s prosperity.

In order to support economic growth in certain single-industry communities and foster a renewal of industrial structures based on regional strengths and assets, it is also appropriate to target economic diversification.

Development of a knowledge-based economy building on specialized competencies is also an opportunity for economic intervention if Quebec is to retain a competitive edge over emerging countries. Globalization will require a growing skilled labour force, and mass retirements will soon be causing a breach between needs and available skills on Quebec’s labour market. The need to replace the wave of entrepreneurs who will shortly be retiring is also more urgent than ever.

Also with a goal to confronting global competition more effectively and in order to enable production to adapt more rapidly to evolving market needs, it is essential that Quebec enterprises be offered an economic environment conducive to innovation and commercialization.

Performance measurement strategy

The Agency’s performance measurement strategy is based on the systematic observation of outcome indicators identified in its performance measurement framework. These indicators will be used to conduct ongoing measurement of targeted outcomes and provide material for the Agency’s strategic decision-making during 2012-13. Among the indicators that will be tracked are both output indicators and outcome indicators.

Owing to their nature, anticipated outcomes will occur within a variable timeframe. Most will not be observable in the year in which disbursement is made. For instance, it is often only after two years that the expected increase in sales of an SME receiving Agency support for funding a commercialization strategy materializes. That is why the Agency’s performance measurement strategy is spread over a five-year horizon and why the yearly performance measurement reports will, in the initial years, be limited to outputs and intermediate outcomes.

For its strategic outcome and each of its program activities, the Agency has established results targets. But economic development largely depends, on the one hand, on SMEs and local and regional stakeholders which design and execute the projects the Agency supports and, on the other hand, on the strength of the economy. The business opportunities arising from it will influence the quantity, scale, timetable and success rate of the projects the Agency supports.

2.2 Program activity: Business development

Description of program activity

This program activity (PA) is intended to support the development of SMEs and asset-operating NPOs throughout their life-cycle in order to increase Quebec’s economic growth. Enterprises are recognized for generating a large share of economic activity and creating jobs. The Agency thus contributes to renewal of the pool of enterprises in Quebec by supporting the emergence of new SMEs and business succession. It also contributes to increasing the competitiveness of existing enterprises and ensuring their survival by enhancing their performance through the development of their production, innovation, commercialization and export capability. The Agency’s intervention in this PA is carried out primarily in relation to enterprises, in particular SMEs, or through organizations in support of enterprises and entrepreneurs. The Agency fosters the development of SMEs and asset-operating NPOs through the Quebec Economic Development Program grants and contributions program.

Human resources (FTE) and planned spending (in thousands of dollars)

2012-13		2013-14		2014-15
FTE	Planned spending	FTE	Planned spending	FTE	Planned spending
158	147,7066	152	138,822	149	139,264

Program activity expected results	Performance indicators	Annual targets 2012-137
The pool of enterprises in Quebec is renewed: Enterprises are started up or transferred	Number of projects funded in order to support entrepreneurship	40
	Total value of grants and contributions (G&C) allocated	$16M
	Number of enterprises started up	100
Quebec enterprises are competitive: Enterprises improve their performance	Number of projects funded	260
	Total value of G&C allocated	$111M
	Percentage of enterprises supported having maintained or increased their sales	53%
	Percentage of enterprises supported having maintained or increased their self-generated revenue	53%

Planning highlights

Enterprises currently have to meet various challenges to ensure their survival and prosperity. They have to contend with a demographic decline which has an impact on business succession and availability of labour. They also have to deal with a Canadian dollar that remains strong, in a context of global competition. Some enterprises thus have to continue adjusting to challenges, including enhancement of productivity, diversification of export markets and commercialization of innovation.

In this context, the Agency intends to support enterprises, particularly SMEs and asset-operating NPOs, with a view to contributing to increasing the dynamism of Quebec’s economy. The Agency’s intervention with respect to Enterprise development is in line with the Support Quebec’s economic growth by intensifying support for enterprise development priority. In order to pursue this priority, the Agency intends in particular to support entrepreneurship as well as SMEs and asset-operating NPOs in their innovation, technology transfer, productivity, commercialization and export activities.

• Entrepreneurship support
  Quebec has a lower proportion of entrepreneurs compared with the Rest of Canada, and a greater decline in entrepreneurship is anticipated owing in part to the fact that the aging population is proportionately greater in Quebec. Thus, over the next year, the Agency will encourage entrepreneurship, foster SME startups and contribute to SMEs’ sustainability by supporting succession planning.
• Business performance
  Enterprises wishing to continue their development and ensure their survival have to innovate and convert their ideas into business opportunities, enhance their productivity and penetrate new markets. The Agency thus intends to support investment by enterprises, primarily SMEs, in optimizing their production and increasing their effort with respect to innovation, technology transfer, commercialization and exports. The Agency also intends to assist business support organizations in the structuring of business networks, and to foster the largest number of industrial and regional spinoffs in the wake of agreements with major prime contractors.
• Agency’s contribution to the Federal Sustainable Development Strategy
  Within the context of its contribution to Theme 1 of the FSDS – Addressing Climate Change and Air Quality, the Agency intends to fund projects aimed at the development of SMEs which could, among other things, help to optimize resource use, enhance residual resources and contribute to eco-efficiency.

2.3 Program activity: Regional economic development

Description of program activity

This program activity is intended to support the economic development of the different regions in order to increase Quebec’s economic growth. Quebec regions are not homogeneous, and present a variety of contexts, with their own issues, challenges and assets. The regions are wealth creators, and their participation in the economy is essential in ensuring Quebec’s economic growth. The Agency thus nurtures the development of their economic base by supporting local stakeholders as they take charge of their economic development and by stimulating investment in all regions of Quebec. The Agency’s intervention in this program activity is carried out primarily in relation to organizations or enterprises. The Agency supports the development of the regions through the Quebec Economic Development Program grants and contributions program.

Human resources (FTE) and planned spending (in thousands of dollars)

2012-13		2013-14		2014-15
FTE	Planned spending8	FTE	Planned spending	FTE	Planned spending
39	37,027	38	34,806	37	34,916

Program activity expected results	Performance indicators	Annual targets 2012-139
Quebec regions have a stronger economic base:
Communities take charge of their economic development	Number of projects funded with a view to mobilizing regions	20
	Total value of G&C allocated	$5M
	Percentage of communities supported which implement mobilization projects	50%
Quebec’s regions attract investment	Number of projects funded	20
	Total value of G&C allocated	$27M
	Percentage of communities supported which implement community economic facility projects	75%

Planning highlights

This program activity is intended to foster a climate and conditions conducive to the development of Quebec regions’ competitive advantages and development of their assets. Its relevance lies in the current context of short-term economic uncertainty and the need to meet the challenges associated with long-term regional growth.

The Agency’s intervention with regard to the economic development of the regions, and in particular the mobilization of regions, is associated with the Support Quebec’s economic growth by continuing support for regional economic development priority.

• Regional engagement
  Local accountability with regard to local economic development is a success factor in eliciting the establishment of growth-generating projects. The Agency will thus support the diversification of Quebec communities by supporting mobilization of and joint action by various stakeholders, planning of their economic development, solicitation, pursuit of funding and implementation of structuring, recovery or diversification initiatives.
• Regional investment
  Quebec’s regions have to stand out in order to attract the investment necessary for their economic growth. Over the next few years, the Agency intends to help consolidate Quebec regions’ economic base by supporting them in their efforts to acquire community facilities in order to harness their assets more effectively, so as to stimulate business and generate community economic spinoffs. The Agency also intends to support the promotion of regional assets with a view to generating economic activity in the regions of Quebec.

2.4 Program activity: Strengthening community economies

Description of program activity

In addition to its regular program, the Agency is required to design, administer and implement Canada-wide programs or targeted ad-hoc initiatives that contribute to strengthening community economies so as to increase Quebec’s economic growth. It thus supports the economic development of rural communities and ensures the sound, effective management of infrastructure programs for Quebec. It also nurtures economic activity in Quebec communities undergoing economic shocks, faced with significant economic development challenges or having growth-generating opportunities to grasp. This program activity (PA) is aimed at enterprises and organizations. The Agency intervenes in this PA through dedicated temporary additional funding from the Government of Canada, specific funds allocated by the Agency or the Community Futures Program (CFP).

Human resources (FTE) and planned spending (in thousands of dollars)

2012-13		2013-14		2014-15
FTE	Planned spending10	FTE	Planned spending	FTE	Planned spending
41	96,918	26	35,824	25	31,935

The drop in the Agency’s planned spending from 2012-13 to 2013-14 is attributable to the gradual decline in funding allocated under temporary initiatives.

Program activity expected results	Performance indicators	Annual targets 2012-1311
Quebec communities have stronger economies:
Communities are economically sustainable	Number of projects funded by regional development organizations (Community Futures Development Corporations [CFDCs] and Business Development Centres [BDCs])	1,500
	Total value of G&C allocated by regional development organizations (CFDCs and BDCs)	$29M
	Number of economic development initiatives implemented in communities following support from CFDCs	260
	Percentage of entrepreneurs undertaking pre-startup, startup or acquisition of an SME with support from regional development organizations (CFDCs and BDCs)	49%
	Percentage of enterprises carrying out their recovery, expansion or modernization project with support from regional development organizations (CFDCs and BDCs)	83%
Quebec communities have upgraded public infrastructure	Number of projects funded or administered by the Agency	140
	Number of communities with public infrastructure completed according to the contribution terms	118
Communities have ad-hoc support available for stabilizing or strengthening their economies	Number of projects funded, by initiative	TISQFE: 85 EDI: 16 Cruises: 18 Ad-hoc projects:12 2
	Total value of G&C allocated, by initiative	TISQFE: $22.5M EDI: $3.3M Cruises: $19M Ad-hoc projects: $18.5M
	Percentage of communities supported, by initiative	TISQFE: 100% EDI: 30% Cruises: 100% Ad-hoc projects: 100%

Planning highlights

This program activity supports communities’ economic development and strengthens their ability to take charge of their own development and achieve their full potential. In a context of fragile economic growth, the Agency intends to pursue implementation of various programs and initiatives to help communities strengthen their economies.

• Community Futures Program
  Owing to their economic performance that is generally below the Quebec average and to tighter credit conditions, rural communities present the need to strengthen their economies. Through the Community Futures Program (CFP), the Agency intends in particular to continue its support for rural communities’ adjustment to the demanding economic context. This Canada-wide program will foster access to capital, the offering of consulting services and support for local projects as well as the planning and socio-economic development of rural communities. The Agency delivers the CFP in Quebec through such regional development organizations as CFDCs and BDCs, by means of contribution agreements.
• Infrastructure modernization
  Quality public infrastructure is recognized as a factor in economic development. Thus, over the next year, the Agency will continue to act as Infrastructure Canada’s delivery partner for the management in Quebec of their different programs, including the Building Canada Fund (Communities component and Large Urban Centres component), the Municipal Rural Infrastructure Fund and large-scale Canada Strategic Infrastructure Fund projects. These programs are the subject of agreements between Infrastructure Canada and the Quebec government, and are aimed primarily at municipalities. Planning highlights and expected results with respect to these programs may be found in Infrastructure Canada’s Report on Plans and Priorities.¹³
• Targeted, and temporary support
  The Agency provides ad-hoc support for the economic activity of Quebec communities in order to stabilize or strengthen their economies. Thus, the Agency may be called upon to support communities experiencing an economic shock, a natural disaster or situations with an unwanted impact on their economic development, or communities facing major economic development challenges or with development opportunities offering a positive impact on the regions. In those cases, the Agency may intervene through dedicated temporary additional funding from the Government of Canada or specific funds allocated by the Agency.

2.5 Program activity: Internal services

Description of program activity

This program activity supports the Agency’s strategic outcome (Quebec’s regions have a growing economy). Internal services are groups of related activities and resources that are administered to meet program needs and other general corporate obligations. They include only those activities and resources that apply across an organization, and not those provided specifically to a program. They lead to higher efficiency in program delivery, thus contributing to quality services for Canadians.

For the Agency, these groups are:

• Governance and management support, comprising the following services:
  • Management and monitoring¹⁴
  • Communications
  • Legal services
• Resource management services, comprising the following services:
  • Human resources management
  • Financial management
  • Information management
  • Information technology
  • Other administrative services
• Property management services, comprising the following services:
  • Real property
  • Materiel
  • Acquisitions

Human resources (FTE) and planned spending (in thousands of dollars)

2012-13		2013-14		2014-15
FTE	Planned spending	FTE	Planned spending	FTE	Planned spending
121	19,100	117	18,756	114	18,756

Planning highlights

While the Agency’s fourth priority is associated with all program activities, it particularly involves Internal services. Continuing implementation of the transformation and modernization initiative involves implementation of the Agency’s new program in line with the new vision, enhancement and modernization of client services, and workplace modernization.

• Contribution to the Federal Sustainable Development Strategy
  The Agency is a participant in the Federal Sustainable Development Strategy and contributes, through the Internal services program activity, to attaining targets associated with the greening of government operations, particularly with respect to the following elements:
  • Surplus electronic and electrical equipment
  • Printing unit reduction
  • Paper use
  • Green meetings
  • Green procurement

For instance, access to a telepresence system and circulation of the Agency’s in-house newsletter in exclusively electronic format are projects currently under way in connection with the transformation and modernization initiative that will contribute in particular to reducing the Agency’s environmental footprint.

Further information on Agency activities aimed at shrinking the environmental footprint is available in the table in Section 3 of the RPP entitled “Greening of government operations.”

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