Appearance before the House of Commons Standing Committee on Public Accounts

Updated

February 17, 2022

Synopsis

Canada Economic Development for Quebec Regions delivered the Canadian Seafood Stabilization Fund initiative during the COVID‑19 pandemic. This initiative was audited by the Office of the Auditor General of Canada as part of the audit on protecting Canada’s food system.

Recommended responses (81 words)

• Canada Economic Development for Quebec Regions has carefully reviewed the Auditor General’s Report on Protecting Canada’s Food System and agrees with its recommendations.
• Canada Economic Development for Quebec Regions will not submit an action plan, given that none of the audit report’s recommendations were directed at the Agency.
• Fisheries and Oceans, in collaboration with the regional development agencies, developed the 62.5 million dollars Canadian Seafood Stabilization Fund initiative, 9.1 million dollars of which was delivered by Canada Economic Development for Quebec Regions.

Supplementary response

As a result of their mandate, regional development agencies (RDAs) have a presence on the ground and are able to listen to businesses in order to determine their needs, which vary from one region to the next, and adapt their responses to those realities. Therefore, they were in a good position to deliver this Canadian initiative locally and in an agile manner, while meeting its national objectives.

The seafood processing and packaging sector generates $1.3 billion in annual economic activity and supports 26,000 jobs in Canada. It is a key component of Canada’s fishing industry, our collective food security and our economy. But it was severely affected by the pandemic’s economic impacts, and protecting it was critical.

Background

• The purpose of the audit was to determine whether selected federal agencies protected Canada’s food system during the COVID 19 pandemic by effectively designing, delivering and managing programming to
  • help reduce food insecurity in Canada through the Emergency Food Security Fund, the Surplus Food Rescue Program and the Nutrition North Canada subsidy program;
  • support the resilience of food processors in the agri food sector and the fish and seafood sector through the Canadian Seafood Stabilization Fund and the Emergency Processing Fund.
• The audit covered the period from March 2 to June 4, 2021. Representatives of the Office of the Auditor General reviewed 18 projects funded by Canada Economic Development for Quebec Regions during that period.
• All of the regional development agencies and the department that implemented or delivered the Canadian Seafood Stabilization Fund were audited: Fisheries and Oceans Canada, the Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, and the former Western Economic Diversification Canada (which became two new agencies in August 2021: Pacific Economic Development Canada and Prairies Economic Development Canada).
• The recommendations issued as part of this audit were made to Agriculture and Agri Food Canada and Fisheries and Oceans Canada. None of them were directed at the regional development agencies.
• Develop a national emergency preparedness and response plan for a crisis affecting Canada’s entire food system, taking food security into consideration.
• Ensure that their future food-related initiatives measure and communicate their contributions toward sustainable development commitments and to gender equality and diversity in order to improve assessment and outcomes.
• Ensure that programs are delivered fairly and transparently to all involved, including applicants and recipients.
• Ensure that future initiatives have performance measurements that make it possible to obtain sufficient, consistent and relevant data to assess the achievement of outcomes.
• Canada Economic Development for Quebec Regions made all documents available and provided the requested explanations related to the program’s design, delivery and results.

Updated

February 21, 2022

Synopsis

The CSSF is a pan-Canadian initiative designed to support fish and seafood processors affected by the economic impacts of COVID-19.

Recommended responses (122 words)

• The fish and seafood processing sector is essential to our collective food security and our economy. It has been experiencing financial pressures caused by COVID-19, notably new health and safety considerations and the instability of the fish and seafood market.
• To date, through the Canadian Seafood Stabilization Fund, Canada Economic Development for Quebec Regions has supported 27 projects worth almost $8M. These projects involved putting protective measures in place for workers in the sector and providing better storage capacity for the industry in order to ensure our food security.
• The aim of this initiative was to ensure that the fish and seafood processing sector could continue its operations and position itself to mitigate the impacts of the COVID-19 pandemic on the industry.

Supplementary response

• The initiative had three streams:
  • Projects to improve worker safety and productivity
  • Projects to boost seafood product freezing, refrigeration and storage capacity to ensure that surplus products and processed resources are more efficiently managed
  • Projects that respond to evolving markets so that businesses are better positioned coming out of the pandemic
• The Government of Canada recognizes the need to ensure the resilience of Canada’s food system. Canada Economic Development for Quebec Regions also supports Quebec’s food sector through these other programs:
  • Since the beginning of the pandemic in March 2020, Canada Economic Development for Quebec Regions has awarded over $42M for 70 projects aimed at supporting the growth of Quebec’s food sector (REGI, QEDP, TRF, JGF).
  • Not to mention support for Quebec’s food sector—faced with cash flow issues—through the Regional Relief and Recovery Fund ($11M in funding for 60 projects).
• The financial assistance awarded under this initiative takes two forms: repayable (SMEs) and non repayable contributions. Some SMEs were awarded non-repayable contributions for adaptation projects aimed at protecting workers’ health and safety and ensuring compliance with standards introduced in response to the COVID-19 pandemic (physical distancing measures, the purchase of sustainable equipment, improvements to ventilation conditions, and changes required in the workplace); NPOs and Indigenous organizations received non-repayable contributions.
• The initiative was implemented by four regional development agencies (RDAs): the Atlantic Canada Opportunities Agency (ACOA); Pacific Economic Development Canada (PacifiCan); Prairies Economic Development Canada (PrairiesCan); and Canada Economic Development for Quebec Regions (CED).
• In Quebec, the industry plays a key role in the economy of the maritime regions, i.e., the Côte-Nord, Bas Saint-Laurent and Gaspésie‒Îles-de-la-Madeleine regions.

Background

Examples of projects funded by CED:

Storage capacity

• Pêcheries de l’Estuaire Inc. was awarded $700,000 for the expansion of its marine products processing plant in Rimouski, specifically to add freezing and storage space and acquire an automated shell-breaking line.

Health and safety

• Atkins & Frères Inc., located in Mont-Louis in the Gaspésie region, received $3,015 to install distancing barriers and a separating wall and to set up a separate entrance for its workers. The funding allowed the business to ensure the health and safety of its workers in the context of the COVID 19 pandemic.

Market development

• Homards du Cap des îles Inc. received $1,385,773 to increase its storage capacity.
• Poissonnerie de Cloridorme Inc., a Gaspésie-region business, was awarded $205,875 to implement a new strategy to commercialize sea cucumber on the Asian market, and to improve the product’s quality.

Updated

February 16, 2022

Synopsis

The CSSF was set to end on March 31, 2021, but has been extended until March 31, 2022, to support more projects designed to help businesses adjust to the pandemic in a sustainable manner.

Recommended responses (109 words)

• The Canadian Seafood Stabilization Fund was launched quickly to address the challenges faced by this sector. However, since the fishing season had already begun, processors were operating and lacked the resources to submit projects.
• In Quebec, some processors had already put in place the required health measures to be able to stay in business, thanks in part to funding from the Government of Quebec to meet these needs.
• The extension of the initiative has resulted in nine additional projects being able to go ahead in Quebec, for a total of $4M in funding. These investments aim to better position the seafood processing sector as it emerges from the pandemic.

Supplementary response

• Canada Economic Development for Quebec Regions works in complementarity with Quebec and its communities to promote regional development.
• Drawing on our intelligence on the ground and a detailed analysis of the context, we adjust our interventions to local realities. This is what the regional development agencies (RDAs) do.
• This flexibility in program implementation allows us to generate the best economic benefits.
• The Quebec Fisheries Fund is a program offered by the Government of Canada, through Fisheries and Oceans Canada, to support industry needs.
• The Government of Quebec also has programs that have helped address the urgent needs of the seafood processing sector. Investissement Québec’s Concerted Temporary Action Program for Businesses (PACTE) provided funding for businesses at the beginning of the pandemic to help them meet their working capital needs. Quebec’s Ministère de l’Agriculture, des Pêcheries et de l’Alimentation also has specific programs to assist this sector.
• Submission in the fall made it difficult for larger-scale projects to be completed by March 31, given the lack of construction workers to carry out the work.

Background

The extension of the initiative allowed for the following projects to go ahead:

• Marché Blais Inc.: This business, which specializes in seafood processing, received $609,635 in funding. The project, being carried out in the town of Chandler in the Gaspésie region, aims to increase live lobster storage capacity.
• Homards du Cap des Îles Inc.: An Îles de la Madeleine seafood processing business received $1,385,773 in funding to increase its storage capacity.
• Coopérative des Pêcheurs du Cap Dauphin: Specializing in seafood processing, this fishing co-op in Grosse-Île on the Îles de la Madeleine received $1,392,000 in funding to increase live lobster storage capacity and upgrade the employee cafeteria.
  • NB: The co-op had already received $69,278 in funding to improve worker health and safety when the initiative was first launched. Further health improvements were subsequently made as the pandemic continued.

Updated

February 18, 2022

Synopsis

The Auditor General’s report contains no recommendations for the regional development agencies (RDAs). Furthermore, the report recognizes the regional nature of the RDAs’ mandate and the disparities that exist in their respective ecosystems, but it does not take these things into account in the rationale for the differences noted in the delivery of this program.

Recommended responses (84 words)

• In response to the COVID 19 pandemic, the regional development agencies, along with the Department of Fisheries and Oceans, developed and delivered the Canadian Seafood Stabilization Fund, a 62.5 million dollars national initiative.
• Canada Economic Development for Quebec Regions implemented this initiative in Quebec and had 9.1 million dollars to help seafood processors remain operational and seize new opportunities.
• To achieve the Fund’s expected results, Canada Economic Development for Quebec Regions tailored its implementation to the specific needs and context of the sector in Quebec.

Supplementary response

In Quebec, the industry stakeholders, their circumstances and the context in which they operate, notably the assistance already available and the provincial government’s interventions, were not the same as those in other regions of Canada. It was important to take this into account when implementing the Fund to ensure results for Canadians and the sound management of public funds.

The financial parameters of the assistance CED provided shifted during implementation to adjust to the types of projects submitted in Quebec and to the evolving context. CED extended the initiative to enable processors to submit a project, since the initial submission period did not allow this, as it coincided with the fishing season, and since processors had to open their doors and put sanitary measures in place before the Fund was launched.

Background

• Rolled out in response to disruptions caused by the COVID 19 pandemic, the purpose of the CSSF was to ensure that seafood processors remained operational and could seize opportunities associated with new market and sanitary requirements to meet their clients’ needs.
• Three RDAs delivered the CSSF in their respective territories: Canada Economic Development for Quebec Regions (CED), the Atlantic Canada Opportunities Agency, and Pacific Economic Development Canada.
• The RDAs’ mandate is to ensure the long-term economic development of all regions in their respective territories. To do this, they have a presence on the ground, and they listen to businesses and communities to determine their needs, which vary from one region to the next, and then adapt their interventions to those realities.
• When they are entrusted with a national initiative, RDAs are guided by its national objectives, while remaining agile and tailoring its implementation to their regional context so that the initiative is delivered in a way that is efficient, meets real needs and achieves the expected results.
• Therefore, to ensure the initiative could achieve the intended results in Quebec in a fair manner, CED tailored its implementation to take into account the province’s evolving economic circumstances, the financial situation of seafood processors over the course of the pandemic, and other relevant government interventions.
• For example, CED extended the initiative to enable processors to submit a project, since the initial submission period did not allow this, as it coincided with the fishing season, and since processors had to open their doors and put sanitary measures in place before the Fund was launched.

Updated

November 15, 2021

Synopsis

With its 12 business offices located across Quebec, CED is the key federal partner for regional economic development in Quebec. Through its regular and temporary programs CED supports regional innovation, the growth of SMEs and the vitality of Quebec communities.

Recommended responses (93 words)

• Canada Economic Development for Quebec Regions is the key federal partner for regional economic development in Quebec.
• Since November 2015, Canada Economic Development for Quebec Regions has approved over 4,400 projects, amounting to a total of more than $2.2 billion in funding that has generated $9.6 billion in investments and helped create or maintain over 75,000 jobs.
• Through its 12 community-focused business offices located across Quebec, CED assists businesses and the regions with a view to boosting the prosperity of our economy and our communities by supporting projects that generate long-term economic benefits.

Supplementary response

CED contributes to the Government of Canada’s efforts to increase the participation of under-represented groups in the economy, including women, Indigenous peoples and persons from minority groups.

CED acts as an accelerator of economic growth: its interventions support regional innovation, the growth of SMEs and the vitality of Quebec communities.

CED’s interventions are aligned with Government of Canada priorities:

• $764 million for innovation projects
• $263.7 million for clean tech projects
• $268.9 million for tourism projects
• $50.8 million for Indigenous projects
• $85.5 million for women entrepreneurship projects

Background

• CED’s mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate. It also supports the transition and diversification of communities that remain dependent on a limited number of sectors, or that have been affected by an economic shock.
• CED supports businesses—mainly SMEs and the non-profit organizations (NPOs) that assist them—by making strategic investments that have a positive impact on the growth and prosperity of these businesses, thus contributing to the economic vitality of all regions of Quebec by leveraging their competitive regional advantages.
• Through its regular programs and various initiatives, CED has played a key role in the delivery of federal COVID-19 emergency response measures and is actively involved in efforts to ensure that businesses are able to invest in their recovery and long-term prosperity and contribute to community revitalization.

Examples of projects funded by CED

• Innovation: In 2019, CED awarded a $300,000 repayable contribution to Boréas Technologies, a startup company in the microelectronics sector that specializes in the design and sale of piezoelectric control circuits capable of powering touchpads (e.g., textures, vibrations) on a computer screen. CED’s funding targeted the international commercialization of piezoelectric control circuits. Boréas has been located at the C2MI in Bromont, Quebec, since its creation, and has benefited from the centre’s facilities to ensure its growth. CED supports the C2MI.

• Clean tech: CED authorized a $544,342 repayable contribution for Motrec International, a manufacturer of electric industrial vehicles made of steel, based in Sherbrooke, that markets a line of distinct, environmentally friendly and robust vehicle models. The funding awarded in 2019 enabled Motrec to integrate digital technologies for the development of a functional prototype of an auto-steer electric industrial tractor.

• Tourism: In 2019, CED awarded a non-repayable contribution of $228,000 over three years (2019–2022) to the Société touristique des aboriginals du Québec (STAQ) for the implementation of its marketing plan and the development of Indigenous tourism products.

• Indigenous peoples: In 2018, CED authorized a $262,120 repayable contribution for the startup of Innuberge, a three-star accommodation facility that plans to offer ecotourism activities in the community of Unamen Shipu on the Lower North Shore. The project involves the acquisition and installation of high end prefabricated chalets and the construction of a multi-purpose pavilion.

• Women entrepreneurship: Staca Inc., which received funding in 2019 under the Women Entrepreneurship Strategy (WES), is a Jonquière-based business specializing in the recovery and treatment of industrial residues from aluminum smelters. Managed by three women, the business provides a service that is unique in Canada and results from ongoing R&D activities. CED authorized a $100,000 contribution to help the business grow and improve its productivity through the acquisition of production equipment.

• Cultural communities: CED funds the Fonds afro-entrepreneurs in order to provide entrepreneurs from black communities in Quebec with support services tailored to their business’s specific phase of development (start-up, growth, upscaling, structuring, etc.). The $2,995,600 non-repayable contribution was awarded through the Black Entrepreneurship Program Ecosystem Fund and covers a four-year period.

Updated

February 21, 2021

Synopsis

CED has supported a number of businesses and economic non-profit organizations affected by the COVID-19 pandemic. To do so, CED implemented a number of temporary emergency measures, in addition to its regular programs. This support has helped SMEs restructure their operations, manage their cash flow or restart their businesses, and has also assisted sectors and groups that were harder hit.

Recommended responses (89 words)

• Canada Economic Development for Quebec Regions is implementing a number of federal measures to help businesses and regions affected by the economic impacts of the pandemic and to assist them in their recovery.
• Canada Economic Development for Quebec Regions has supported more than 1,000 projects, for a total of over 381 million dollars in authorized assistance, via emergency relief measures targeting businesses and organizations in need.
• Through its initiatives, Canada Economic Development for Quebec Regions has assisted thousands of businesses and organizations, thus helping to maintain over 47,000 jobs.

Supplementary response

• The Regional Relief and Recovery Fund (RRRF) provides funding for liquidity needs and technical assistance. CED has awarded $316.5 million in funding through this initiative.
• The Regional Air Transportation Initiative (RATI) has helped regional air transportation ecosystems severely impacted by the economic repercussions of COVID-19. CED has supported 17 projects, for a total of over $57.5 million in assistance.
• The Canadian Seafood Stabilization Fund (CSSF) has provided direct assistance for businesses that process and prepare seafood products. CED has supported 27 projects, for a total of over $7,8 million in assistance.
• Under the Women Entrepreneurship Strategy (WES), CED has provided $3.14 million in additional funding to help women deal with the impacts of COVID-19.
• Support from Canada Economic Development for Quebec Regions has also helped SMEs restructure their operations, manage their cash flow or restart their businesses, and has assisted sectors and groups that have been hard hit, such as the tourism sector and women entrepreneurs.

Background

Emergency measures implemented by DEC

Regional Relief and Recovery Fund (RRRF)

• Financial and technical support for small and medium-sized businesses (SMEs) and non-profit organizations (NPOs).
• Budget of $324.6 million for Quebec, of which $316.5 million ($196.5 million directly from CED and $120 million through the 57 Community Futures Development Corporations [CFDCs] and the 10 Business Development Centres [BDCs]) has been allocated to SMEs and NPOs that are located in rural areas and that have been affected by the economic impacts of COVID-19.

Canadian Seafood Stabilization Fund (CSSF)

• Aims to assist businesses that process and prepare seafood products, including aquaculture processing businesses and the organizations that support them.
• Budget of $9.1 million for Quebec, of which $7,8 million has been allocated.

Regional Air Transportation Initiative (RATI)

• Aims to assist regional air transportation ecosystems affected by the economic impacts of COVID 19.
• $57.5 million budget for Quebec, allocated to 17 projects

Women Entrepreneurship Strategy (WES)

• Recognizing that women entrepreneurs have been particularly hard hit by the COVID-19 pandemic, CED has awarded a total of $3.14 million in additional funding to help women in business address the impacts of COVID 19 (e.g., business model adjustment, human resources).

Regional Economic Growth through Innovation (REGI)

• Through its regular programs, CED has helped manufacturing companies respond to the call from the Government of Canada by refocusing their production to meet the need for medical supplies and health products.

Examples of projects funded by CED:

• Regional Relief and Recovery Fund (RRRF): CED supported three tourism businesses in the Mauricio region by providing funding of between $138,000 and $320,000 to help them meet their liquidity needs and maintain their operational capacity.

• Canadian Seafood Stabilization Fund (CSSF): In 2020, CED provided Pêcheries de l’Estuaire Inc., a Rimouski-based marine products processing plant, with a $700,000 repayable contribution to allow the business to add freezing and storage space and acquire an automated shell-breaking line.

• Women Entrepreneurship Strategy (WES): CED provided Evol (Femmessor) with an additional $1,250,000 in funding in 2020 to help the organization rapidly adjust its activities to better meet an urgent and growing demand from women entrepreneurs faced with the economic challenges of a pandemic. They were also able to offer a “hypergrowth bootcamp” targeting women entrepreneurs for whom the pandemic presents an opportunity.

• Regional Air Transportation Initiative (RATI): In 2021, CED provided the Régie intermunicipale de l’aéroport régional de Mont-Joli with a $7,177,500 non-repayable contribution to upgrade airport facilities, ensure compliance with health measures, and hire an employee to implement solutions to meet the air transportation needs of communities In the Bas-Saint-Laurent region.