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2018-2019 Departmental Results Report

By Canada Economic Development for Quebec Regions

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About this publication

Publication author : Canada Economic Development for Quebec Regions

ISSN number : 2561-0015

Catalog number : Iu90-1/16E-PDF

Publish date : February 26, 2020

Summary :

This report deals with Canada Economic Development's principal achievements in regards to its engagements towards the Parliament.

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Table of Contents

  1. Minister's message
  2. Institutional Head's message
  3. Results at a glance
  4. Results: what we achieved
  5. Analysis of trends in spending and human resources
  6. Supplementary information
  7. Appendix: Definitions
  8. Endnotes
  9. Operating context and key risks

Minister's message

I am pleased to present the 2018–19 Departmental Results Report for Canada Economic Development for Quebec Regions (CED).

Over the past year, the various organizations in the Innovation, Science and Economic Development Portfolio have together worked hard to make Canada a global innovation leader and to build an economy that works for everyone.

Our primary objectives were, and continue to be, to empower businesses to reach their innovation potential to compete in a global, knowledge-based economy; to enhance Canada’s economic strengths by supporting science and research; and to promote Canadian tourism. These objectives were supported by new and existing policies and programs designed to help Canadian entrepreneurs from across the country and from diverse backgrounds grow and reach new markets. We also continued to implement multi-year investments in science, including historic investments in fundamental research, while our robust tourism industry was bolstered by support for national initiatives.

Canada Economic Development for Quebec Regions contributed significantly to the portfolio's objectives by promoting sustainable and inclusive growth, which created jobs to improve the quality of life of Canadians. It has fostered an entrepreneurial environment conducive to innovation, growth and competitiveness, most notably through the new Regional Economic Growth through Innovation program, common to Canada's regional development agencies. CED’s interventions, which are well adapted to the realities of Quebec's regions, have supported business growth and helped build strong communities.

These are just a few examples of Canada Economic Development for Quebec Regions’ work on behalf of Canadians through collaboration, dialogue and partnerships across the country. We invite you to read this report to learn more about how we are working with and for Canadians to build our innovation nation.

Melanie Joly

Mélanie Joly
Minister of Economic Development and
Official Languages

Institutional Head's message

The Canada Economic Development for Quebec Regions (CED) 2018–19 Departmental Results Report (DPR) outlines the steps taken over the past year to develop Quebec’s economy, and highlights progress made with respect to the achievement of the objectives set out in the Departmental Plan.

In 2018–19, CED focused its activities around four main priorities linked to the Government of Canada’s Innovation and Skills Plan: inclusive regional innovation ecosystems; business growth and expansion; clean technologies; and inclusive growth.

Upon reading this report, you will discover that this strategy has been successful. Funding was provided for 1,079 projects in the various regions of Quebec, for a total of $250 million in grants and contributions. These projects resulted in significant economic benefits for communities; for example, each dollar spent by CED on community projects generated an average investment of $2.76. CED’s activities have contributed to Canada’s long-term economic growth and prosperity.

Through its 12 business offices, and by leveraging its expertise, CED has helped entrepreneurs diversify their activities, innovate and compete in the knowledge-based economy, notably via the brand-new Regional Economic Growth through Innovation (REGI) program. A decentralized presence has allowed CED to maintain its in-depth knowledge of regional economic issues while promoting co-operation and complementarity with other economic partners in Quebec.

Determined to work for the benefit of all, CED has also assisted groups that are under represented in the economy, such as women, youth and Indigenous peoples. This direction gave rise to programs such as the Women Entrepreneurship Strategy, and the CED Fast-Forward Challenge, the goal of which is to increase the proportion of young innovative entrepreneurs, particularly young women, who would like to go ahead with their business projects.

In addition to its four priorities, CED has developed an innovation incubator so as to be better equipped for the digital era and to position itself as an employer of choice. Furthermore, new products and services are being developed through experimentation with non-traditional solutions, with a view to increasing the level of satisfaction of our clients and exploring new opportunities to embrace future challenges.

In this report, which provides an overview of our efforts to make Quebec’s economy more innovative, sustainable and inclusive, you will be able to measure the extent of the progress we have made in one year towards building the economy of tomorrow.

Happy reading!

Manon Brassard

Manon Brassard
Deputy Minister / President of Canada Economic
Development for Quebec Regions

Results at a glance

Funds used
(Actual spending in 2018-2019)
Staff
(Full-time equivalents [FTEs] in 2018-2019)
293,136,844 322

During the 2018–19 fiscal year, CED invested $293.1 million, including $249.9 million in grants and contributions (G&C) to support 1,079 projects in all regions of Quebec.

Key results in 2018–19

The 2018–19 fiscal year was notable for the design, launch and implementation of a number of new ad hoc initiatives and a new program to support regional economic development and SME growth in Quebec. They are as follows:

  • Regional Economic Growth through Innovation (REGI), a national program delivered in Quebec by CED since December 8, 2018, that aims to foster the economic growth of businesses and the regions through innovation, by helping businesses scale up and become more productive, and by supporting regional innovation ecosystems to allow them to meet the needs of businesses, and fostering their growth and competitiveness.
  • The Women Entrepreneurship Strategy (WES), which targets women entrepreneurs looking to grow their businesses and organizations that assist women entrepreneurs with their business projects.
  • The Steel and Aluminum Initiative, which was launched on March 11, 2019, and which aims to encourage SMEs that use steel and aluminum to invest in order to boost their productivity and competitiveness.
  • The CED Fast Forward Challenge, which was launched on January 23, 2019, and which aims to increase the proportion of innovative young entrepreneurs, including young women, who are able to go ahead with their business projects.
  • The Winter Tourism Initiative, which will be in effect from April 1, 2018, to March 31, 2020, aims to showcase tourism and attract visitors from outside Quebec during the cold season by supporting the acquisition of snowmobile and cross-country ski trail maintenance equipment.

These new initiatives are in addition to CED's existing initiatives and complement the delivery of its regular programs. The results of the new initiatives, particularly those that were launched at the end of 2018–19, will be seen primarily in 2019–20 and subsequent years.

Within this context, CED established four priorities for the 2018–19 fiscal year. The following is a summary of efforts to support these priorities:

1. Inclusive regional innovation ecosystems

Over the course of 2018–19, CED provided a total of $30.8 million in funding for 48 new projects, including industrial clusters and business incubators and accelerators, in order to strengthen regional innovation ecosystems. The majority of these projects are spearheaded by college centres for technology transfer (CCTTs), universities or non-profit organizations (NPOs), which enable knowledge transfer to facilitate technology access or adoption by businesses.

CED began delivering the REGI in Quebec in the fall of 2018 in order to pursue efforts to strengthen innovation ecosystems and build their capacity to support under-represented groups such as women, Indigenous peoples and young entrepreneurs.

2. Business growth and scale-up

CED awarded $140.5 million in funding to 331 businesses to support their growth. The projects aim to help these small and medium-sized businesses (SMEs) increase their productivity, market new products, scale up or expand their sales in new markets.

CED also provided specific assistance for SMEs in the steel and aluminum supply chain by implementing, starting in March 2019, a national initiative aimed by assisting businesses with their technology projects designed to increase their capacity to compete in the global economy.

3. Clean technologies

CED spent $46.2 million on clean technology projects (179 projects), exceeding its goal of investing at least $25 million annually in products, processes and services that improve environmental performance.

4. Inclusive growth

CED took concrete action to ensure the implementation of an inclusive vision of economic development. The following are three examples of steps taken:

  • Easing of funding parameters to encourage more Indigenous peoples to submit business projects.
  • Launch of the Women Entrepreneurship Strategy. As at March 31, 2019, 46 projects had been approved, for a total of $4.4 million in non-repayable contributions.
  • CED also launched the CED Fast Forward Challenge, an initiative designed to help innovative young entrepreneurs go ahead with their business projects and contribute to the growth of their business.

In addition to launching new initiatives and adjusting its program criteria, CED pursued the implementation of a number of programs and initiatives targeting specific groups, such as the Community Futures Program (CFP), which supports SMEs in rural communities. CED also provided funding for 10 new projects in minority language communities through the Economic Development Initiative – Official Languages, and continued to support communities dealing with particular issues, such as Lac Mégantic, which was affected by a rail accident.

CED also introduced the Federal Strategy on Innovation and Growth for the Quebec Regions. This strategy is a collaborative economic development approach within the Government of Canada that links government directions to needs identified on the ground, notably through consultationsendnote i with economic development players. A total of 142 projects, 46 of which received over $1 million in funding, were approved by CED as part of this strategy.

Other achievements

In addition to its four priorities, CED continued to modernize its processes in order to simplify them and make them as efficient as possible. These initiatives include the ongoing development of the new grant and contribution management system.

The accomplishments and outcomes outlined above illustrate the scope of CED's commitment to achieving its targeted results for the fiscal year that ended on March 31, 2019.

For more information on the plans, priorities and results obtained by CED and its clientele, see the Results: what we achieved section of this report.

Results: what we achieved

The Treasury Board Secretariat of Canada has implemented the new Policy on Results, which came into force on April 1, 2018. This Policy has enabled CED and the other regional development agencies (RDAs) to co-develop their Departmental Results Frameworks (DRFs). CED's DRF includes a core responsibility, namely developing Quebec's economy. This core responsibility is evaluated annually against three departmental results and nine socio-economic indicators.

These indicators measure progress made with respect to the accomplishment of CED's core responsibility. They are high level indicators with long-term objectives, and stem from the Government of Canada's Innovation and Skills Plan. The potential achievement of these objectives is dependent on a number of economic realities and factors; CED's intervention is only one of the many factors that influence the achievement of these objectives.

This CED Departmental Results Report is the first one in which CED reports on its results based on its new DRF's structure and indicators. For this reason, a comparison with the results of previous fiscal years is not always possible.

New programs and initiatives in 2018–19

In 2018–19, CED, a member of the Innovation, Science and Economic Development (ISED) portfolio, continued to implement Canada's Innovation and Skills Plan. Innovation is key to promoting sustainable, inclusive growth, and creating jobs that improve Canadians' quality of life. CED and the other five RDAs in Canada worked closely with ISED to evaluate federal innovation programs and propose measures to simplify programs so as to increase their effectiveness and ensure that they focus more on clients, and to allow businesses to obtain the assistance they need. This approach resulted in the launch of the Regional Economic Growth through Innovation (REGI) program on December 8, 2018. The REGI is an RDAs' common program implemented according to their regional realities. The REGI is designed to foster an entrepreneurial environment that is conducive to innovation, growth and competitiveness. It has two main streams aimed at meeting business needs: business scale-up and productivity; and the creation, growth and vitality of inclusive regional innovation ecosystems.

The RDAs and ISED also worked together to develop the REGI Steel and Aluminum Initiative (SAI), which targets SMEs that manufacture or use steel and aluminum. Launched on March 11, 2019, this temporary initiative supports projects that help enhance productivity, increase competitiveness, and which create more skilled jobs through the adoption of innovative technologies that contribute to the growth and modernization of sectors that depend on steel and aluminum. This measure will help Canadian downstream SMEs in the steel and aluminum sector remain competitive as global market dynamics evolve.

The RDAs also implemented the Women Entrepreneurship Strategy (WES).Endnote ii The goal of this strategy is to double the number of women-owned businesses in Canada by 2025 by facilitating access to funding, talent, networks and expertise to help these businesses grow.

CED also introduced other new initiatives in 2018–19, namely the Winter Tourism Initiative, and the CED Fast Forward Challenge.

Grant and contribution programs and initiatives in effect in 2018–19

  1. Main program: Quebec Economic Development Program (QEDP)
    • Temporary or targeted initiatives:
      • Economic Recovery Initiative for Lac-Mégantic
      • Economic Diversification Initiative for Communities Reliant on Chrysotile
      • Winter Tourism Initiative*
      • Economic Development Initiative – Official Languages [national initiative]
  2. National program: Community Futures Program (CFP)
  3. National program: Regional Economic Growth through Innovation (REGI)*
    • Temporary or targeted initiatives:
      • Women Entrepreneurship Strategy (WES)*
      • Steel and Aluminum Initiative*
      • CED Fast Forward Challenge*

*New in 2018–19

Core Responsibilities

Developing Quebec's economy.

Description.

Support Quebec economic growth, job creation and economic prosperity through inclusive clean growth; help SMEs growth through trade and innovation; and build on competitive regional strengths.

Results
Departmental Result 1: Businesses are innovative and growing in Quebec

In order to grow and remain competitive, Quebec businesses need to innovate. To leverage their commercial potential, they must develop new organizational capabilities and make even greater use of digital technologies.

To this end, CED has provided funding for 420 businesses to support them in their development and to help them become more innovative, productive and competitive on the regional, national and international stages. This funding comes in response to needs identified, notably in the Evaluation of the Quebec Economic Development Program (QEDP)Endnote iii (August 2018): "The needs most frequently identified by clients relate to the expansion of their activities, commercialization and export of their products. These needs were expressed by 62 % of the clients interviewed."

Launched in the second half of the 2018–19 fiscal year, the new REGI program has been well received by CED's clients. In all, 162 projects were approved, for a total of $83.8 million in financial assistance. During this same year, the NPOs supported by CED, and which are involved in the development of innovative and inclusive ecosystems (specifically by providing incubation and acceleration services), in turn assisted 13,000 SMEs or potential entrepreneurs

Example of a Project Supported by CED

Mecademic is an innovative high-tech company that emerged from CENTECH, the business incubator affiliated with the École de technologie supérieure (ÉTS). The company designs and manufactures very small, ultra-compact high-precise industrial robots.

CED awarded a $450,000 repayable contribution to help the company scale-up by improving its competitiveness and implementing a marketing strategy in the U.S. and Europe. CED’s assistance will go towards the acquisition of specialized digital equipment that will serve to increase production capacity and automate the robot manufacturing process. This project will allow Mecademic to increase its production capacity and work force.

CED continued to support projects involving partnerships between prime contractors and businesses, thus contributing to their economic growth. In co-operation with economic community stakeholders, CED organized the 4th edition of the Symposium on the Canadian Defence and Security Market, and participated in more than 28 networking events, including trade shows and missions. The various activities helped promote the capabilities of Quebec businesses among prime contractors, with a view to maximizing the industrial and technological benefits generated by large Government of Canada procurement projects, both in the land sector as well as in the aerospace, marine and security sectors.

Results achieved

As is shown in the table entitled "Results achieved", targets relating to growth and innovation among Quebec businesses were achieved.

Spurred on by the economic strength of its global economic partners and the relative weakness of the Canadian dollar, Quebec recorded an increase in its international exports in 2018, surpassing the established $84 billion target by more than $2 billion.

The revenue growth rate of businesses supported by CED programs also exceeded the established target by 7%. Businesses supported by CED recorded a 42% increase in turnover between the start and the end of their projects, an indication of the added value of CED's assistance.

Departmental Result 2: Communities are economically diversified in Quebec

Economic diversification

Communities that diversify their activities broaden their industrial base and thus strengthen the performance and resilience of their economies in the face of economic uncertainty.

The implementation of the Steel and Aluminum Initiative and the pursuit of the Economic Diversification Initiative for Communities Reliant on Chrysotile and the Economic Recovery Initiative for Lac-Mégantic are examples of CED's commitment to strengthening communities and ensuring their economic diversification. Moreover, the Mid-Term Evaluation of the Economic Recovery Initiative for Lac-Mégantic,Endnote iv published in March 2018, reveals that the Initiative responded to an urgent need to stabilize the economy following the major damage caused by the rail accident, and that it was virtually essential to the relocation and survival of some of the affected businesses. The findings of the Mid-Term Evaluation of the Canadian Initiative for the Economic Diversification of Communities Reliant on Chrysotile,Endnote v which covers the period from June 2013 to March 2016, are also positive. Through this initiative, CED supported the targeted communities in their economic transition by adjusting the regular eligibility criteria to better meet the needs of potential clients. CED worked closely with the other community players, and in complementarity with the Government of Quebec. In this regard, community players, financial partners and project proponents were all extremely satisfied with CED's services and co-operation.

Example of a Project Supported by CED

Appalaches Nature is an SME located in Thetford Mines that specializes in the production of organically certified maple products for the high-end market. Its products are available in Canada, Europe and Japan, and are certified for use as official gifts from the governments of Canada and Quebec, and Quebec City.

The project involves the construction of a new plant in Thetford Mines for maple syrup, cranberry and honey packaging, and the development of new markets. The $1 million in repayable assistance from CED will help the business go ahead with this project and will result in the creation of 37 full-time jobs. This is the largest private investment in the region ($35.9 million) since the launch of the Economic Diversification Initiative for Communities Reliant on Chrysotile.

At the same time, with a view to ensuring the growth of rural communities in all regions of Quebec, and in close co-operation with its partners, CED pursued the modernization of the Community Futures Program (CFP). This exercise, which began in 2016–17, resulted in the renewal, in 2019, of the five-year agreements with the Community Futures Development Corporations (CFDCs) and Business Development Centres (BDCs), the goal of which is to foster local economic development, support business start-ups and assist SMEs with their growth strategies, with a particular focus on devitalized regions.

Under-represented groups

Considering that the presence and ongoing renewal of a pool of entrepreneurs is a necessary condition for economic development, CED focused on target groups to expand the entrepreneurial base in the regions of Quebec. It introduced a number of initiatives aimed at increasing the participation of under-represented groups in the economy and, specifically, in entrepreneurship, including the Women Entrepreneurship Strategy and the CED Fast Forward Challenge.

Results achieved

As is shown in the table entitled "Results achieved" on page 17, the majority of the targets relating to diversification in Quebec communities were achieved.

In 2018–2019, CED provided funding for projects in 100 regional county municipalities and generated a significant leverage effect through the projects that it supported. For each dollar invested by CED in community projects, third parties in turn invested $2.76. The objective being $2.20, this result demonstrates how CED is acting as a catalyst in the regions of Quebec.

As for the Government of Canada's commitment to increasing the number of people from target groups who become entrepreneurs and majority owners of SMEs, the findings of a Survey on Financing and Growth of Small and Medium EnterprisesEndnote vi point to a modest improvement in this regard in Quebec since 2014, particularly as concerns youth and Indigenous peoples.

CED also contributed to these results, specifically through its financial support for the CFDCs and BDCs within the framework of the CFP; in 2018–19, these organizations report having funded 484 projects aimed at supporting young entrepreneurs through the Youth Strategy. CED also supported 22 new projects carried out by Indigenous entrepreneurs or organizations (out of a target of 40 between 2018 and 2021).

Over the course of the period targeted by this report, CED participated in 60 new projects involving women-led or -owned SMEs, thus contributing to the overall number of SMEs led by women.

Digitization within businesses is a determining factor in business performance. In this regard, it is essential that a high proportion of jobs be concentrated in the science and technology fields. Even though the Quebec average is higher than the Canadian average, the proportion of workers in these job categories declined slightly in Quebec in 2018–19, to 35.4%. However, CED continued its efforts to support technology adoption within companies by providing a total of $116.8 million in funding for 247 new projects.

Experimentation

Launched as a pilot project on January 23, 2019, the CED Fast Forward Challenge—part of the Federal Strategy on Innovation and Growth for the Quebec Regions—targeted Quebec engineering students and recent engineering graduates. CED made it possible for up to 10 innovative businesses from all across Quebec to obtain a $50,000 grant to carry out their business projects. In response to its call for proposals, CED received applications from 72 businesses, over 20% of which were majority-owned by women. The presentations by the start-ups selected as finalists and the announcement of the winners will take place in 2019–20.

This contest was an experiment for CED, both in terms of a business practice and the targeting of a new client group; in addition, it provided an opportunity to apply Gender-Based Analysis Plus (GBA+). Follow-up will be done on the participants' entrepreneurial activities and the performance of the start-ups over the course of the one-year period following the contest in order to document the impact. CED will communicate the results and lessons learned in 2020–21.

Departmental Result 3: Businesses invest in the development and commercialization of innovative technologies in Quebec

Investing in innovation is key to allowing SMEs to remain competitive and to grow. In 2018-19, CED continued to support businesses that develop and adopt innovations and market them in Canada and in other markets around the world. Given that the diversification of export markets is a priority aimed at making Quebec less vulnerable to trade tensions and emerging protectionism, CED supported 106 new SME marketing projects. Of these projects, 70 had the specific objective of exporting products to one or more of the countries included in one of the new trade agreements signed by Canada (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Comprehensive Economic and Trade Agreement).

Of the 1,328 recipients questioned as part of the recent QEDP evaluation, 63% stated that they would not have been able to go ahead with their projects without CED's financial assistance.

Example of a Project Supported by CED

The mission of the Centre d'entrepreneuriat et d'essaimage [entrepreneurship and spinoff centre] at the University of Quebec at Chicoutimi (CEE-UQAC) is to promote entrepreneurial spirit and business creation among the student community, both at UQAC and in the colleges in the region. This NPO acts as a project coordinator for various centres that provide SMEs with access to infrastructure, highly specialized expertise and high-tech equipment to develop innovative projects and foster technology transfer.

CED authorized a $4 million non-repayable contribution aimed at encouraging innovation and clean growth among businesses through the implementation of high-level technological and industrial infrastructure, namely the Centre de transformation et de valorisation de bioproduits (CTVB). At a total cost of over $5 million, this growth-generating project aims to support the adoption of new technology that meets the needs of innovative businesses in various sectors: forestry; the pharmaceutical, cosmeceutical and nutraceutical industries; and the agri-food sector.

The proportion of businesses that depend on CED funding is generally higher among clients receiving support for innovation and technology transfer projects (79%). CED provided funding for 13 new projects by organizations that foster technology transfers that benefit SMEs

Results achieved

All of the established targets pertaining to the development and commercialization of innovative technologies in Quebec were surpassed. SMEs supported by CED spent over $35 million on research and development (R&D), exceeding the projected target of $25 million.

The second indicator tracks co-operation between institutions of higher learning and SMEs. The results for Quebec are positive: the province came in above the Canadian average and surpassed the established target of 19%.

Results achieved
Departmental result Performance indicator Target Date to achieve target Actual results 2018-19 Actual results 2017-18 Actual results 2016-17
Businesses are innovative and growing in Quebec Value of Quebec goods’ exports (in dollars) $84B March 31, 2019 $86.1B* $78.6B* $77.2B*
Value of Quebec clean tech exports (in dollars) Not available March 31, 2019 Not available** Not available** Not available**
Number of high-growth businesses in Quebec (by revenue) 3,400*** March 31, 2019 Not available*** Not available*** Not available***
Revenue growth rate of businesses supported by CED programs 35% March 31, 2019 42% 41% 28%
Quebec communities are economically diversified Amount leveraged per dollar invested in community projects $2.20 March 31, 2019 $2.76 $2.48 $2.28
Percentage of Quebec SMEs that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities Women 16.5% Indigenous peoples 0.5% Youth 17% Visible minorities 5% Persons with disabilities Not available** March 31, 2019 Women 16.2%* Indigenous peoples 0.7%* Youth 17.2%* Visible minorities 4.5%* Persons with disabilities 0.2%* Not available**   Not available**  
Percentage of professional positions in science and technology in Quebec’s economy 36.0 % March 31, 2019 35.4%* 36.1%* 35.2%*
Businesses invest in the development and commercializa-tion of innovative technologies in Quebec Value of R&D spending by businesses receiving CED program funding (in dollars) $25M March 31, 2019 $35.6M $30M $25M
Percentage of businesses that collaborate with Quebec institutions of higher learning 19% March 31, 2019 22.9%* Not available** 18.4%*
  • * This figure corresponds to the most recent result published by Statistics Canada at the time this was written. The figures for previous years are those available at this time, although Statistics Canada's actual reading of the results may be earlier.
  • ** Data for this indicator or fiscal year is unavailable.
  • *** There was a change in the methodology used by Statistics Canada to measure the number of high-grow firms by revenue, and historical data has not been yet revised. The target has been set using the previous methodology. The target and the results for this indicator will be revised in the 2020–2021 Departmental Plan.
Budgetary financial resources (in dollars)
2018–19
Main Estimates
2018–19
Planned spending
2018–19
Total authorities available for use
2018–19
Actual spending
(authorities used)
2018–19
Difference
(Actual spending minus planned spending)
256,619,068 256,619,068 276,301,764 273,397,927 16,778,859

The variance between actual and planned spending can be attributed to the awarding of new funding for the implementation of the Innovation and Skills Plan and the Women Entrepreneurship Strategy, as well as to the 2017–18 operating budget carry-forward to 2018-19.

Human resources (full-time equivalents)
2018–19
Planned full-time equivalents
2018–19
Actual full-time equivalents
2018–19
Difference
(Actual full-time equivalents minus planned full-time equivalents)
188 180 -8

Resources planned for program delivery were reallocated to Internal Services for the delivery of certain top-priority departmental initiatives or Government-wide initiatives, notably the rollout of CED's digital strategy and its culture of innovation, designed to enhance the client experience. Activities planned as part of CED's digital strategy include the implementation of the new grant and contribution management system (Cortex) and the financial and material management system (SAP).

Financial, human resource and performance information for the CED Program Inventory is available in the GC InfoBase.Endnote vii

Internal Services

Description.

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are:

  • Acquisition Management Services
  • Communications Services
  • Financial Management Services
  • Human Resource Management Services
  • Information Management Services
  • Information Technology Services
  • Legal Services
  • Materiel Management Services
  • Management and Oversight Services
  • Real Property Management Services
Results

Modernization and optimization projects aimed at making our processes and approaches more agile and robust were carried out in the business offices and at Head Office. Work continued on the Horizon 2021 initiative throughout 2018-19, with projects being implemented in the three areas of transformation shown below:

People and Culture Policies and Procedures Tools and Technologies
A healthy, learning, innovative and diversified organization whose employees are networked, engaged and have the skills to contribute to the success of businesses and regions and a key partner in the achievements of the ISED portfolio. Policies and parameters translating the government's priorities into timely initiatives and tangible services to contribute to the success of businesses and regions.

Procedures in all areas of activity are clear, staright-forward and required for effective decision-making, client service excellence and the achievement of desired results.
Up-to-date and user friendly and high performance technologies which optimize our procedures and enable everyone-CED employees, partners and clients-to be informed, work/interact effectively and make the best decisions more quickly.

Some of the projects and initiatives carried out in 2018–19:

  • In co-operation with the other RDAs, CED continued its work on the development of a user-friendly and client-focused shared grant and contribution management system. Once in place, this new system will not only optimize internal business processes, but will also provide RDA clients with modern tools, such as a transactional portal that will enable easy, secure and real-time access to CED's services and will include electronic funding application submission and payment tracking.
  • Committed to enhancing the digital experience of its clients—as well as those it would like to reach—CED pursued its efforts to optimize its digital presence on the Web and on social media. To do so, CED made sure it had the equipment and skills required to be in step with the digital evolution. This approach ensured the optimized use of various digital platforms for communication activities associated with the CED Fast Forward Challenge experimental project.
  • In 2018–19, CED's Head Office and the Greater Montréal and Saguenay–Lac-Saint-Jean business offices moved into new premises. These modern workspaces with their new technologies support employees in their duties and facilitate co-operation and communication, both government-wide and with the people of Canada.
  • With a view to better meeting employee demands, facilitating inter-sectoral co-operation, and simplifying ways of doing things, a number of changes were made to the electronic management of information in 2018–19, taking into account the various government initiatives and practices in place, such as Open Government and the adoption of digital solutions.
  • A number of CED directorates continued their transformation and modernization aimed at optimizing existing processes (specifically by leveraging technological tools and the use of digital solutions), increasing their agility, and providing a positive, high-quality client experience. For example, the Communications Branch worked on the development of a Web application for monitoring communications activities.
  • CED continued to improve its integrated planning process in 2018–2019. The automation of the various integrated planning components was completed, and improvements were made to the internal computer platform for the gathering of information that is useful for decision-making. A new reporting approach that focuses on the use of data and information made available, notably through the integrated planning process, was also developed in 2018-19.
Highlight: CED Innovation Incubator

In 2018–19, an Innovation Incubator was created at CED. The Incubator targets the development, through experimentation, of non-traditional solutions to day-to-day problems. Its role is to coordinate project implementation with a view to seizing opportunities or responding to identified business challenges, in order to ensure that CED is better equipped in the digital era and can position itself as an employer of choice.

As part of this initiative, employees were invited to submit their ideas via a call for proposals. As at March 31, 2019, some 47 proposals had been received (26 potential projects), and 5 projects were selected for implementation in 2019–20. The Innovation Incubator’s plans to work on improving the mobility of business office advisors and their records management through the use of new technological tools.

Budgetary financial resources (dollars)
2018–19
Main Estimates
2018–19
Planned spending
2018–19
Total authorities available for use
2018–19
Actual spending
(authorities used)
2018–19
Difference
(Actual spending minus planned spending)
19,886,400 19,886,400 20,377,361 19,738,917 -147,483
Human resources (full-time equivalents)
2018–19
Planned full-time equivalents
2018–19
Actual full-time equivalents
2018–19
Difference
(Actual full-time equivalents minus planned full-time equivalents)
126 142 16

CED used more salary resources than initially planned, and recorded lower operating expenditures. In addition to the allocation of new funds, major projects were delayed and a portion of non-salary resources was reallocated to salaries to support Internal Services and allow for work to be carried out on departmental or Government-wide initiatives.

Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph

The figure below shows CED’s actual and planned spending trends over time. The dark blue bars represent grant and contribution and operating expenditures. The pale blue bars represent statutory expenditures associated with the employee benefit plan.

Departmental spending trend graph
Text description of Departmental spending trend graph

The figure above presents actual spending from 2016–17 to 2018–19, and planned spending from 2019–20 to 2020–21.

Over the past three fiscal years, CED’s total spending fell from $316 million in 2016–17 to $293.1 million in 2018–19. This decrease in actual spending is primarily due to the fact that funding for the Canada 150 Community Infrastructure Program (Intakes 1 and 2) ended on March 31, 2018. Other factors that explain the drop in spending include a decline in funding for temporary initiatives such as the Economic Diversification Initiative for Communities Reliant on Chrysotile and the Economic Recovery Initiative for Lac-Mégantic.

In 2018–19, CED’s total expenditures amounted to $293.1 million. Of this amount, $249.9 million was invested in G&C. Operating expenditures and benefits accounted for $43.3 million.

As concerns planned spending in 2019–20, the significant increase in funding compared to 2018–19 is primarily a result of temporary supplemental funding obtained under the REGI program’s Steel and Aluminum Initiative, and for the Canadian Experiences FundEndnote ii, the goal of which is to provide new tourism products or experiences or improve those that already exist, and create, renovate or expand tourism facilities.

Starting in 2020–21, budgets don’t take the reinvestment of contribution repayments by clients into account, which partially explains the overall decrease in planned spending. The budget declines can also be attributed to the end of the Steel and Aluminum Initiative forecast for March 31, 2020.

Over the past three fiscal years, CED's total spending fell from $316 million in 2016–17 to $293.1 million in 2018–19. This decrease in actual spending is primarily due to the fact that funding for the Canada 150 Community Infrastructure Program (Intakes 1 and 2) ended on March 31, 2018. Other factors that explain the drop in spending include a decline in funding for temporary initiatives such as the Economic Diversification Initiative for Communities Reliant on Chrysotile and the Economic Recovery Initiative for Lac-Mégantic.

In 2018–19, CED's total expenditures amounted to $293.1 million. Of this amount, $249.9 million was invested in grants and contributions. Operating expenditures and benefits accounted for $43.3 million.

As concerns planned spending in 2019–20, the significant increase in funding compared to 2018–19 is primarily a result of temporary supplemental funding obtained under the REGI program's Steel and Aluminum Initiative, and for the Canadian Experiences FundEndnote viii, the goal of which is to provide new tourism products or experiences or improve those that already exist, and create, renovate or expand tourism facilities.

Starting in 2020–21, budgets don't take the reinvestment of contribution repayments by clients into account, which partially explains the overall decrease in planned spending. The budget declines can also be attributed to the end of the Steel and Aluminum Initiative forecast forMarch 31, 2020.

Budgetary performance summary for Core Responsibilities and Internal Services (dollars)
Core Responsibili-ty and Internal Services 2018–19
Main Estimates
2018–19
Planned spending
2019–20
Planned spending
2020–21
Planned spending
2018–19
Total authorities available for use
2018–19
Actual spending (authorities used)
2017–18
Actual spending (authorities used)
2016–17
Actual spending (authorities used)
Developing Quebec’s economy 256,619,068 256,619,068 301,916,121 223,522,522 276,301,764 273,397,927 291,790,589 297,418,222
Subtotal 256,619,068 256,619,068 301,916,121 223,522,522 276,301,764 273,397,927 291,790,589 297,418,222
Internal Services 19,886,400 19,886,400 20,230,571 19,953,892 20,377,361 19,738,917 19,638,153 18,534,411
Total 276,505,468 276,505,468 322,146,692 243,476,414 296,679,125 293,136,844 311,428,742 315,952,633

The difference between planned spending and total authorities available for use in 2018–19 stands at $20.2 million and is primarily attributable to funding obtained during the year for temporary initiatives, and the obtaining of the 2107–18 operating budget carry forward.

Actual human resources

Human resources summary for Core Responsibilities and Internal Services (full time equivalents)
Core Responsibility and Internal Services 2016–17 Actual full-time equivalents 2017–18 Actual full-time equivalents 2018–19
Planned full-time equivalents
2018–19 Actual full-time equivalents 2019–20 Planned full-time equivalents 2020–21 Planned full-time equivalents
Developing Quebec’s economy 190 182 188 180 191 191
Subtotal 190 182 188 180 191 191
Internal Services 140 138 126 142 151 146
Total 330 320 314 322 342 337

The number of FTEs allocated to the development of Quebec's economy generally varies based on the amount of funding set aside for temporary initiatives.

A slight increase in the FTEs allocated to Internal Services is forecast for 2019–20 and 2020-21 because of the many major departmental and Government-wide projects involving technological innovation and the enhancement of the client experience.

Expenditures by vote.

For information on CED's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2018–2019.Endnote ix

Government of Canada spending and activities

Information on the alignment of CED's spending with the Government of Canada's spending and activities is available in the GC InfoBase.Endnote x

Financial statements and financial statements highlights

Financial statements

CED's financial statements (unaudited) for the year ended March 31, 2019, are available on the CED website.Endnote xi

Financial statements highlights

The financial highlights presented below provide an overview of CED's financial position and operations. The unaudited financial statements are drawn up in accordance with government accounting policies, which are based on Canadian Generally Accepted Accounting Principles for the public sector.

The expenditures set forth in the tables in other sections of the Report were prepared on a cash basis, whereas the financial highlights below were prepared on an accrual basis. Tables reconciling these two accounting methods are presented in the Notes to CED's Financial Statements.

A more detailed statement of operations and associated notes, including a reconciliation of the net costs of operations with the requested authorities, is available on the CED website.

Condensed Statement of Operations (unaudited) as of March 31, 2019 (dollars)
Financial information 2018–19
Planned results
2018–19
Actual results
2017–18
Actual results
Difference (2018–19 Actual results minus
2018–19 Planned results)
Difference (2018–19 Actual results minus
2017–18 Actual results)
Total expenses 195,283,000 173,919,390 216,182,399 (21,363,610) (42,263,009)
Total revenues 0 0 0 0 0
Net cost of operations before government funding and transfers 195,283,000 173,919,390 216,182,399 (21,363,610) (42,263,009)

*CED's Future-oriented Statement of Operations (unaudited) as at March 31, 2019

Expenses
  • In 2018–19, CED's total expenses stood at $173.9 million, down $42.3 million from the previous year. This 19.5% decline is primarily attributable to a decrease in non-repayable contributions, which in turn can be explained by the fact that funding for the Canada 150 Community Infrastructure Program (Intakes 1 and 2) ended on March 31, 2018, and that there was also a decrease in funding for temporary initiatives.
  • Transfer payment expenditures—which totalled $125.5 million—decreased by 24.3% from 2017–18 to 2018–19. Operating expenses stood at $48.4 million, down 3.7% comparatively to last year.
  • The $21.4 million variance (10.9%) with projected net expenses can be attributed to the fact that non-repayable contributions were lower than forecast.
Revenue
  • CED's revenue, returned to the Treasury Board, is declared in its financial statements as having been earned on behalf of the government. As a result, the organization's total net revenue is zero. In 2018–19, CED's total gross revenue stood at $889,738, virtually the same as in the previous year. Revenue consists mainly of interest charges on payments in default.
Financial Information 2018–19 2017–18 Difference
(2018–19 minus
2017–18)
Total net liabilities 17,003,094 19,953,763 (2,950,669)
Total net financial assets 13,657,523 16,838,583 (3,181,060)
Departmental net debt 3,345,571 3,115,180 230,391
Total non-financial assets 2,453,642 1,126,826 1,326,816
Departmental net financial position (891,929) (1,988,354) 1,096,425
Liabilities
  • As at March 31, 2019, CED's net liabilities stood at $17.0 million, down 14.8% from 2017–18. This decrease is largely attributable to the decline in net accounts payable and accrued liabilities.
  • Accounts payable and accrued liabilities account for the largest share of liabilities: 80.2% ($13.6 million) of total net liabilities. Vacation pay and compensatory leave, along with future fringe benefits, account for, respectively, 11.3% ($1.9 million) and 8.5% ($1.4 million) of the organization's net liabilities.
Assets
  • As at March 31, 2019, net financial assets stood at $13.7 million, down 18.9% from the previous year's total. This decrease is primarily attributable to the decline in amounts due from the Consolidated Revenue Fund to discharge liabilities (fringe benefits and accrued liabilities), which were also down.
  • CED's non-financial assets stood at $2.5 million as at March 31, 2019, a year-over-year increase of $1.3 million. This increase is primarily the result of the increase in tangible capital assets following a reclassification of work under way in the amount of $0.8 million.
  • Furthermore, CED's loans, held entirely on behalf of the government, amounted to $419.9 million as at March 31, 2019, up 8.4% from 2017–18, as a result of the increased volume of repayable contributions awarded by the organization.

Supplementary information

Corporate information

Organizational profile

Raison d'être, mandate and role: who we are and what we do.

The "Raison d'être, mandate and role: who we are and what we do" section is available on the CED website.Endnote xiii

For more information on the department's organizational mandate letter commitments, see the Minister's mandate letter.Endnote xiv

Operating context and key risks

Information regarding the business context and key risks can be found on the CED website.

Departmental Results framework

Departmental results Framework Core Responsibility: Economic Development in Quebec Internal Services
Departmental Result: Businesses are innovative and growing in Quebec Indicator: Number of high growth firms in Quebec
Indicator: Value of exports of good (in dollars) from Quebec
Indicator: Value of exports of clean technologies (in dollars) from Quebec
Indicator: Revenue growth rate of firms supported by CED programs
Departmental Result: Communities are economically diversified in Quebec Indicator: Percentage of SMEs that are majority-owned by women, Indigenous people, youth, visible minorities and persons with disabilities in Quebec
Indicator: Percentage of professional, science and technology-related jobs in Quebec’s economy
Indicator: Amount leverage per dollar invested by CED in community projects
Departmental Result: Businesses invest in the development and commercialization of innovative technologies in Quebec Indicator: Value of Business Expenditure in Research and Development (BERD) by firms receiving CED program funding (in dollars)
Indicator: Percentage of companies engaged in collaborations with higher education institutions in Quebec
Program Inventory Program: Regional Innovation
Program: Community economic development and diversification
Program: Targeted transition support

Supporting information on the Program Inventory

Financial, human resource and performance information for the CED Program Inventory is available in the GC InfoBase.Endnote xv

Supplementary information tables

The following supplementary information tables are available on the CED website:

  • Gender-based analysis plus (GBA+)
  • Details on transfer payment programs of $5 million or more
  • Response to parliamentary committees and external audits
  • Departmental Sustainable Development Strategy

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.Endnote xvi This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in this report are the responsibility of the Minister of Finance.

Organizational contact information.

  • Canada Economic Development for Quebec Regions
  • 800 René Lévesque Blvd. West, Suite 500
  • Montréal, Quebec
  • H3B 1X9
  • Telephone: 514-283-6412
  • Fax: 514-283-3302
  • www.dec-ced.gc.ca

Appendix: Definitions

  • appropriation (crédit)
  • Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
  • budgetary expenditures (dépenses budgétaires)
  • Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
  • Core Responsibility (responsabilité essentielle)
  • An enduring function or role performed by a department. The intentions of the department with respect to a Core Responsibility are reflected in one or more related Departmental Results that the department seeks to contribute to or influence.
  • Departmental Plan (plan ministériel)
  • A report on the plans and expected performance of an appropriated department over a three-year period. Departmental Plans are tabled in Parliament each spring.
  • Departmental Result (résultat ministériel)
  • A Departmental Result represents the change or changes that the department seeks to influence. A Departmental Result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.
  • Departmental Result Indicator (indicateur de résultat ministériel)
  • A factor or variable that provides a valid and reliable means to measure or describe progress on a Departmental Result.
  • Departmental Results Framework (cadre ministériel des résultats)
  • Consists of the department’s Core Responsibilities, Departmental Results and Departmental Result Indicators.
  • Departmental Results Report (rapport sur les résultats ministériels)
  • A report on an appropriated department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.
  • experimentation (expérimentation)
  • Activities that seek to explore, test and compare the effects and impacts of policies, interventions and approaches, to inform evidence-based decision-making, by learning what works and what does not.
  • full-time equivalent (équivalent temps plein)
  • A measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.
  • gender-based analysis plus (GBA+)(analyse comparative entre les sexes plus [ACS+])
  • An analytical process used to help identify the potential impacts of policies, Programs and services on diverse groups of women, men and gender differences. We all have multiple identity factors that intersect to make us who we are; GBA+ considers many other identity factors, such as race, ethnicity, religion, age, and mental or physical disability.
  • government-wide priorities (priorités pangouvernementales)
  • For the purpose of the 2018–19 Departmental Results Report, those high-level themes outlining the government’s agenda in the 2015 Speech from the Throne, namely: Growth for the Middle Class; Open and Transparent Government; A Clean Environment and a Strong Economy; Diversity is Canada’s Strength; and Security and Opportunity.
  • horizontal initiative (initiative horizontale)
  • An initiative where two or more departments are given funding to pursue a shared outcome, often linked to a government priority.
  • non-budgetary expenditures (dépenses non budgétaires)
  • Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
  • performance (rendement)
  • What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.
  • performance indicator (indicateur de rendement)
  • A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.
  • performance reporting (production de rapports sur le rendement)
  • The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.
  • plan (plan)
  • The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.
  • planned spending (dépenses prévues)
  • For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.
  • A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.
  • priority (priorité)
  • A plan or project that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s) or Departmental Results.
  • program (programme)
  • Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.
  • result (résultat)
  • An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.
  • statutory expenditures (dépenses législatives)
  • Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
  • Strategic Outcome (résultat stratégique)
  • A long-term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.
  • target (cible)
  • A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
  • voted expenditures (dépenses votées)
  • Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.

Endnotes

Operating context and key risks

Operating context

Economic contextFootnote 1

In 2018, the Quebec economy grew by 2.5% (real GDP). Full-time employment continued to rise; the unemployment rate in Quebec (5.5%) was the second lowest among the Canadian provinces; and wage growth in Quebec was again higher than in Canada as a whole. Furthermore, Quebec exports were on the rise as a result of the strong performance of the global economy; investment was up, and the housing market was strong. The Quebec economy is in full swing.

Despite its solid performance, however, the Quebec economy still faces issues related to global uncertainties, notably the rise of protectionism; and internal challenges, such as: labour shortages in certain sectors and regions; low productivity growth; an entrepreneurial deficit; a lag in the uptake of innovative processes and digital technologies; and limited sources of growth for remote communities.

Government context

In co-operation with the other regional development agencies (RDAs), Canada Economic Development for Quebec Regions (CED) continued to participate in the implementation of the Innovation and Skills Plan (ISP), the framework adopted by the Government of Canada to foster growth. In support of this plan, CED participated in the development and implementation of the new national Regional Economic Growth through Innovation (REGI) program, delivered in Quebec by CED, the goal of which is to promote the economic growth of businesses and the regions through innovation. During the same period, CED also launched and implemented a number of new initiatives, including the Women Entrepreneurship Strategy, while continuing to deliver its regular programs and initiatives already under way. These new initiatives required additional adjustments and efforts across all sectors of the organization, notably by the Operations and Policy and Communications teams, as well as the Corporate Services teams, including the IT team.

CED also continued to participate in government-wide initiatives, and to adjust its practices, processes and systems accordingly. For example, as part of the Treasury Board Secretariat (TBS) policy reset, CED actively participated in TBS consultations on the policy on digitization, and developed a strategy for the adoption of cloud computing with a view towards technological modernization.

At the same time, the President of CED continued to fulfill her role as President of the Quebec Federal Council (QFC), an interdepartmental network of the most senior officials from 49 federal organizations with responsibilities in the Quebec Region (excluding the National Capital Region). In 2018–2019, the QFC Secretariat supported its members in the achievement of the three regional priorities: 1) the QFC's interdepartmental Innovation Lab, which conceptualized and delivered the interdepartmental speed recruiting initiative targeting designated groups and linguistic minorities; 2) the official launch of the report entitled: "Wellness and Mental Health in the Workplace: Report on Best Practices Observed in Private Companies and Potential Considerations for Federal Departments;" and 3) the recruitment, retention and management of talent in the region. The Secretariat also organized four quarterly meetings on issues that are of priority for the government, including recruitment and retention in Quebec, the 2017 Public Service Employee Survey (PSES) and Beyond2020. Finally, the second Montreal Blueprint 2020 Innovation Fair was held, along with two activities during National Public Service Week: the CFQ interdepartmental recognition awards, and Let's Chat!, an interdepartmental speed mentoring initiative.

Organizational context

CED pursued its transformation as part of its Horizon 2021 initiative, which targets modernization, process optimization and an enhanced client experience. This initiative helps support the government in the delivery of the government-wide Beyond2020 initiative, designed to foster public service renewal. Innovative projects carried out in 2018–2019 included the launch of the Innovation Incubator and the first step in the rollout of the common grant and contribution (G&C) system (Cortex).

Also in 2018–2019, CED finalized the relocation of its head office and Greater Montreal and Saguenay–Lac-Saint-Jean business offices. These moves allowed CED to modernize its work environment in keeping with the Government of Canada's standard relating to the implementation of the activity-based workplace (ABW).

Key risks

To achieve its results, CED constantly carries out environmental scans, which allow it to quickly identify changes and economic trends likely to influence the behaviour of SMEs, and to adjust its interventions accordingly. CED also incorporates risk management into its decision-making processes and corporate planning. It implements appropriate mitigation strategies to achieve its results and improve decision-making and resource allocation.

This section presents the key risks that CED faced (risks that existed in 2017-2018) and the mitigation strategies that were implemented in 2018–2019.

Risk 1: Maintaining a functional and secure technology infrastructure

The risk associated with maintaining a functional and secure technology infrastructure was identified in the 2018–2019 Departmental Plan as being the risk the most likely to affect CED's ability to achieve its results. Should this risk materialize, it could lead to outages or inoperative systems, which would have a major impact on CED's ability to function.

A number of internal factors affect this risk, notably computer systems that are either outdated or no longer sufficiently efficient, reliable and integrated to ensure the validity of data used for decision-making.

Maintaining a functional and secure technology infrastructure: Risk that the existing technology infrastructure, the security thereof, and available information and related systems, will not provide appropriate support for operational requirements, thereby affecting CED's operating capacity.
Link to the Department's core responsibilities Link to mandate letter commitments and government-wide and departmental priorities
  • Develop Quebec's economy
  • Innovation Agenda
Risk response strategy and effectiveness
  • In 2018–2019, more than 20 internal projects were completed, or were in the process of being completed, that aimed to help maintain CED's technological assets and meet needs in terms of infrastructure, technological tools and an information management system.
  • For example, CED completed the development of the common parts of a grant and contribution management system in co-operation with the other federal regional development agencies. CED also monitored technological and digital developments to learn from good practices implemented by partners.
  • Furthermore, CED pursued its collaboration and influential role in dealings with technology suppliers and central agencies (e.g., consultation on the review of the Policy on Service and Digital; preparatory work for the implementation of SAP).
  • Through its integrated planning and monitoring, CED assessed the effectiveness of its mitigation strategy by monitoring projects on a quarterly basis with a view to reducing the level of risk.

Risk 2: Ability to adjust the delivery of its mandate in a changing economic environment

Many factors are likely to have an impact on the delivery of the organization's mandate, including changes in the global economic environment and the rise of protectionism, which could curb business investment.

Ability to adjust the delivery of its mandate in a changing economic environment: Risk regarding CED's capacity to tailor the delivery of its mandate in response to the Government of Canada's priorities and expected outcomes, the needs of the regions, and the economic context.
Link to the Department's core responsibilities Link to mandate letter commitments and government-wide and departmental priorities
  • Develop Quebec's economy
  • Innovation Agenda
Risk response strategy and effectiveness
  • Through continuous strategic monitoring, CED has kept abreast of the changing economic context and factors that could have an impact on the economic development of the regions of Quebec.
  • CED has developed tools and new approaches that will help it adjust its activities to the environment; these include the development and implementation of regional intervention strategies, specific or temporary initiatives to address regional issues and dashboards to monitor priorities.
  • Through its integrated planning and quarterly monitoring, CED has successfully ensured that departmental priorities have been met.

Continuous improvement

With a view to reducing the level of uncertainty that could have an impact on its objectives, CED updates its Corporate Risk Profile annually and integrates risk mitigation activities into its planning and monitoring processes. In 2019–2020, CED will improve its risk management process and tools to include risk tolerance concepts and additional indicators to better measure the effectiveness of mitigation strategies.

Gender-based analysis plus

General information

Structures de gouvernance

Over the course of 2018-19, CED adopted a GBA+ governance framework and statement of intent, which commits the Agency to continue integrating GBA+ into its operations and ensure the principles of diversity and gender-equality are applied to policy and program design, internal practices and client services.

In order to ensure that GBA+ is consistently integrated into departmental decision-making processes, CED developed a GBA+ readiness monitoring tool to track progress on identified opportunities and risks, identifying the following indicators:

  1. GBA+ administration (champion, focal points, coordination centre, working group);
  2. Capacity building (online training, internal communications, guidance and tools, consultation activities, pilot project); and,
  3. Results (Cabinet documents, implemented initiatives, engagement sessions with target groups, HR staffing).

CED's GBA+ coordination center facilitated, planned, and reported on GBA+ practices and progress on framework implementation, while ensuring GBA+ was considered in Cabinet documents (led or contributed by CED), corporate planning, performance reporting, and engagement activities. The coordination center offered GBA+ training opportunities for employees and implemented the Agency-wide policy on mandatory GBA+ online in fiscal year 2018-2019, resulting in a 95% course completion rate. GBA+ roles and responsibilities were formalized for all CED functional units. The coordination center continued its work to adopt a consistent set of GBA+ definitions and indicators for monitoring and reporting, by way of a DM level GBA+ Network, led by CED and bringing together the other RDAs, ISED, Statistic Canada, and Women and Gender Equality.

Ressources humaines

The total number of full-time equivalents (FTEs) dedicated to GBA+ implementation at CED was 1.75, which included members of the GBA+ coordination centre (champion and focal points) and representatives on the GBA+ multisectoral working group.

Initiatives majeures : résultats obtenus

Women's Entrepreneurship Strategy (WES)

CED delivered the Government of Canada's Women Entrepreneurship Strategy (WES) in Quebec, designed to help women start a business and ensure the firm's growth by facilitating access to financing, talent, networks and expertise through an Ecosystem Fund, and Women Entrepreneurship Fund.

WES is aligned with the Gender Results Framework (GRF) objective: Increased opportunities for women to start and grow their businesses and succeed on a global scale and indicator 3.2.1: Proportion of businesses majority-owned by women, by business size. It aims to double the number of women-owned businesses in Canada by 2025. Performance indicators include: the number of SMEs owned primarily by women; the percentage of new businesses started by women entrepreneurs in Quebec; the revenue growth of CED supported businesses owned by women entrepreneurs; the number of female clients served by CED-supported organizations; and the number and value of funded projects for women entrepreneurs in Quebec.

In terms of specific measures to advance gender equality, CED funded two groups of eligible clients under WES: (1) women-owned businesses to develop their businesses and pursue projects focused on growth and market development; and (2) non-profit organizations (intermediary groups, third-party organizations) to carry out projects that address regional and multi-regional gaps in services for women entrepreneurs. 

All funding decisions for the Women Entrepreneurship Fund and the WES Ecosystem Fund have been made and announcements of successful applicants are ongoing. Decisions for the WES Ecosystem Fund Regional Stream are also ongoing. The WES ISED's Secretariat coordinates the performance monitoring plans.

CED Fast Forward Challenge

Launched in January 2019, CED's Fast Forward Challenge was designed to promote innovative entrepreneurship among engineering students and young engineering graduates in Quebec, with special attention on female entrepreneurial engagement. Ten prizes of 50 000 $ have been awarded, serving to bridge the gap between entrepreneurial intention and action for these aspiring entrepreneurs who lack financial resources, experience, or level of project maturation to bring to fruition.

The Challenge was aligned with GRF objective: Increased opportunities for women to start and grow their businesses and succeed on a global scale and indicator 3.2.1: Proportion of businesses majority-owned by women, by business size. Performance indicators included: Increase the number of youth and women who are undertaking business start-up initiatives, and; Increase the percentage of SMEs whose majority owners are youth and women.

Applicants were required to have a minimum of two shareholders to increase the likelihood that one would be a woman, while encouraging partnerships with students with diverse academic backgrounds. CED also gave bonus points to proposals in which 25% of the firm's voting shares belonged to one or more women. Communications to the public and jury member selection also considered gender representation. Follow-up with participants and stakeholders, as part of the performance evaluation, will include GBA+.

The Fast Forward Challenge was the subject of a GBA+ pilot project to demonstrate GBA+ relevance, build awareness and identify best practices in all aspects (project design, implementation, communication, evaluation, etc.).

Capacité d'établissement de rapports et données

CED collects personal information on a voluntary basis from individuals who control or own a business or an organization or who act as an authorized person for a business or organization for the administration of the following programs:

Regional Economic Growth through Innovation Program

Quebec Economic Development Program

In some instances, the eligibility to receive funding through initiatives under these programs is contingent on the personal information collected, which may include: names, titles, contact information, national or ethnic origin, race, gender, age, disability, language spoken and biographical information. In those instances, the eligibility criteria are clearly provided prior to applying for financial assistance.

Details on transfer payment programs of $5 million or more

General information

Name of transfer payment program

Quebec Economic Development Program (QEDP) (Voted payments)

Implementation date

April 1, 2012

Termination date

Permanent

Type of transfer payment

Grants and contributions

Type of credit

Annual allocation of funds through the expenses budget

Fiscal year for terms and conditions  

2018–2019

Link to Department's Program Inventory

The QEDP is linked to three programs in the CED Program Inventory: 1) Business Innovation and Growth; 2) Community Economic Development and Diversification; and 3) Targeted Transition Support.

Description

The QEDP helps promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate. CED may provide repayable or non-repayable contributions, or grants, according to the project.

Results achieved

In 2018, the Government of Canada reviewed and simplified the 22 program streams provided by the regional development agencies. This review resulted in the creation of the national Regional Economic Growth through Innovation (REGI) program described below; the QEDP was also partially revamped. The QEDP results presented below, therefore, cannot be compared with those from previous years.

Via the QEDP and its specific initiatives, CED provided $187.9 million in funding for 881 projects in 2018-2019. The three specific initiatives delivered through the QEDP produced the following results:

  • Economic Development Initiative – Official Languages: $1.9 million in funding for 19 projects;
  • Economic Diversification Initiative for Communities Reliant on Chrysotile: $9.2 million in funding for 15 projects; and
  • Economic Recovery Initiative for Lac-Mégantic: $2.2 million in funding for 7 projects.

Results of audits completed in 2018–2019

No audits were completed in 2018–2019.

Results of evaluations completed in 2018–2019

The evaluation covers the period from 2012–2013 to 2015–2016, during which CED supported 2,098 projects, requiring a grant and contribution budget of $658.3 million.

Published in August 2018, the evaluation report finds the program results to be positive:

  • The interventions and objectives of the various components of the QEDP are aligned with government priorities as set out in official documents.
  • The QEDP responded to the needs that led to its implementation, and its continuity is justified by needs that are still present, in particular the need to boost innovation among smaller companies.
  • In terms of business development, the survival rate of SMEs that received support is over 82%, and more than 60% of companies that benefited from funding have maintained or increased their turnover.
  • In terms of regional economic development, the funding provided surpassed the initial objectives of support for regional planning, the construction of community economic facilities, and the attraction of tourists and foreign investment.
  • The QEDP is delivered by optimizing financial resources. However, according to some CED stakeholders, business processes and work tools could benefit from improvement.
  • Finally, 92% of recipients surveyed indicated that they were satisfied with their relationship with CED, and the service delivery method met most of the needs of client organizations and businesses.

Engagement of applicants and recipients

CED informs the public, SMEs and economic development stakeholders in the regions of Quebec about its QEDP on an ongoing basis by means of a wide range of activities and communication tools that target the profile and information needs of the various players involved.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spending 2017–18 Actual spending 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance (2018–19 actual minus 2018–19 planned)
Total grants 0 0 1,650,000 25,000 25,000 -1,625,000
Total contributions 244,818,183 238,142,111 202,747,428 189,849,561 187,852,938 -14,894,490
Total for other types of transfer payments 0 0 0 0 0 0
Program total 244,818,183 238,142,111 204,397,428 189,874,561 187,877,938 - 16,519,490
Explanation of variances CED has a certain degree of flexibility that allows it to redirect funds to other programs. In 2018–2019, unused QEDP funds were used for the REGI program.

General information

Name of transfer payment program

Community Futures Program (CFP) (Voted payments)

Implementation date

May 18, 1995

Termination date

Permanent

Type of transfer payment

Contributions

Type of credit

Annual allocation of funds through the expenses budget

Fiscal year for terms and conditions  

2010–2011

Link to Department's Program Inventory

The CFP falls under the Community Economic Development and Diversification program.

Description

This national program helps communities in all regions of the country take charge of their local economic growth. In Quebec, the CFP provides funding for local development agencies in the form of non-repayable contributions.

Results achieved

CED provided funding for 57 Community Futures Development Corporations (CFDCs) located in designated rural areas; 10 Business Development Centres (BDCs) located in suburban areas; and the CFDC and BDC Network. CED provided these organizations with $28.4 million in funding for 70 projects.

As concerns the survival rate of businesses receiving funding under the CFP, the outcome is positive. The sales growth rate for CFP clients is 2.5 percentage points higher than the rate for comparable businesses that did not receive CFP funding.

Results of audits completed in 2018–2019

No audits were completed in 2018–2019.

Results of evaluations completed in 2018–2019

No evaluations were completed in 2018–2019. The next evaluation is expected to be completed in 2019–2020.

Engagement of applicants and recipients

CED continues to inform development agencies and community players about Government of Canada funding provided through the CFP.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spending 2017–18 Actual spending 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual Spending (authorities used) Variance (2018–19 actual minus 2018–19 planned)
Total grants 0 0 0 0 0 0
Total contributions 29,607,493 28,683,673 28,968,018 28,374,194 28,374,194 -593,824
Total for other types of transfer payments 0 0 0 0 0 0
Program total 29,607,493 28,683,673 28,968,018 28,374,194 28,374,194 -593,824
Explanation of variances CED has a certain degree of flexibility that allows it to redirect funds to other programs. In 2018–2019, unused CFP funds were used for the REGI program.

Name of transfer payment program

Growth through Regional Innovation Program (GRIP) (known as Regional Economic Growth through Innovation (REGI) Program) (Voted payments)

This program includes Women Entrepreneurship Strategy (WES) initiatives in two streams: Pilot Contribution Program (known as the Women Entrepreneurship Fund (WEF) and WES Ecosystem Fund.

Implementation date

October 18, 2018

Termination date

REGI- Ongoing
WES Women Entrepreneurship Fund- March 31, 2020
WES Ecosystem Fund- March 31, 2023

Type of transfer payment

Grants and contributions

Type of credit

Annual allocation of funds through the expenses budget

Fiscal year for terms and conditions  

2018–2019

Link to Department's Program Inventory

The REGI program is linked to two programs in the CED Program Inventory: 1) Business Innovation and Growth; and 2) Community Economic Development and Diversification.

Description

The Regional Economic Growth through Innovation (REGI) program is shared by the RDAs, which implement it according to their regional realities. The REGI aims to foster an entrepreneurial environment conducive to innovation, growth and competitiveness. It has two main streams designed to meet business needs: business scale-up and productivity; and the creation, growth and vitality of inclusive regional innovation ecosystems.

Funding will be provided through two new components:

  1. Business Scale-up and Productivity (BSP): Invest in businesses, including high-growth companies, and support them during various stages of their development, with a view to fast tracking their growth, helping them expand, and improving their productivity and competitiveness in both domestic and global markets.
  2. Regional Innovation Ecosystems (RIEs): Set up, grow and maintain inclusive regional ecosystems that meet business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness.

Two specific national initiatives were delivered through the REGI:

The Women Entrepreneurship Strategy (WES) provides nationally coordinated and regional tailored investments to help women entrepreneurs and support regional innovation ecosystems through two program streams. The WES Ecosystem Fund, is a five-year program to help non-profit, third-party organizations deliver support for women entrepreneurs and address gaps in the ecosystem. The Pilot Contribution Program (Women Entrepreneurship Fund (WEF)) is a two-years  program that invests directly women-owned and women-led businesses to help them grow and reach new markets.

The Steel and Aluminum Initiative, which supports projects that enhance productivity, improve competitiveness and create more highly skilled jobs through the adoption of new and innovative technologies to help grow and modernize sectors that are highly dependent on the steel and aluminum sector. This measure will help Canadian downstream SMEs in the steel and aluminum sector remain competitive as global market dynamics evolve.

Contributions provided under the REGI may be repayable, with or without conditions, or non-repayable.

Only non-repayable contributions are provided under the WES and the Steel and Aluminum Initiative.

Results achieved

Through the REGI, CED provided $33.5 million in funding for 123 projects in 2018–2019.

Through the WES initiative, CED approved 46 Pilot Contribution Program (Women Entrepreneurship Fund) projects in 2018-2019, for total funding of $4.4 million over 2018-2019 to 2019-2020.

Results of audits completed in 2018–2019

No audits were completed in 2018–2019.

Results of evaluations completed in 2018–2019

No evaluations were completed in 2018–2019. The next evaluation is expected to be completed in 2023-2024.

Engagement of applicants and recipients

CED informs the public, SMEs and economic development stakeholders in the regions of Quebec about the REGI program on an ongoing basis by means of a wide range of activities and communication tools that target the profile and information needs of the various players involved.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spending2017–18 Actual spending 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance (2018–19 actual minus 2018–19 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 33,617,708 33,602,708 33,602,708
Total for other types of transfer payments 0 0 0 0 0 0
Program total 0 0 0 33,617,708 33,602,708 33,602,708
Explanation of variances CED has a certain degree of flexibility that allows it to redirect funds to other programs. In 2018–2019, unused QEDP and CFP funds were used for the REGI program.

Response to parliamentary committees and external audits

Response to parliamentary committees

There were no recommendations directed towards Canada Economic Development for Quebec Regions.

Responses to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development)

Fall 2018 – Report by the Commissioner of the Environment and Sustainable Development: Report 3 – Departmental Progress in Implementing Sustainable Development Strategies.

The objective of the audit was to determine whether the departments and agencies examined, including CED, had properly applied the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals; and whether they had fulfilled their commitment to strengthen strategic environmental assessment practices. The Office of the Commissioner of the Environment and Sustainable Development found that 93% of federal organizations had applied the Directive in their policy projects and were working to strengthen their environmental assessment practices.

There were no recommendations directed towards CED. There were no audits in 2018-2019 requiring a response.

Response to audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

CED was audited by the Public Service Commission of Canada (PSC) in 2018–2019. A number of large and small departments, including CED, were subject to an audit that focused on the representation of employment equity groups in recruitment (EE audit). The audit targeted external advertised appointment processes (term and indeterminate) with closing dates between April 1, 2016, and March 31, 2017.

CED provided the PSC with the required information and evidence, and the analysis of the data is scheduled for early 2019–2020. There were no recommendations directed towards CED in 2018–2019; the audit findings will be published in the fall of 2019.

Departmental Sustainable Development Strategy

1. Context for the Departmental Sustainable Development Strategy

The 2016–2019 Federal Sustainable Development Strategy (FSDS)

In keeping with the objectives of the Act, which are to make environmental decision-making more transparent and accountable to Parliament, Canada Economic Development for Quebec Regions supports reporting on the implementation of the FSDS and its own Departmental Sustainable Development Strategy, or equivalent document, through the activities described in this supplementary information table.

2. Sustainable development within Canada Economic Development for Quebec Regions (CED)

The CED 2017–2020 Departmental Sustainable Development Strategy describes the Department's actions in support of achieving the following goals:

This supplementary information table presents available results for the departmental actions pertinent to these goals. Last year's supplementary information table is posted on the CED website. This year, CED is also noting which UN sustainable development goal targets each departmental action contributes to achieving.

3. Departmental performance by FSDS goal

The following tables provides information about the Department's actions in support of the FSDS goals listed in section 2.

Context: Low-carbon government

The Government of Canada leads by example by making its operations low-carbon.

FSDS goal: Low-carbon government
FSDS target(s) FSDS contributing action(s) Corresponding departmental action(s) Support for United Nations Sustainable Development Goal (UN SDG) target Starting point(s), target(s) and performance indicator(s) for departmental actions Results achieved

Reduce GHG emissions from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.

Improve the energy efficiency of our buildings and operations*. N/A N/A N/A N/A
Modernize our vehicle fleet*.
  • Reduce carbon intensity by purchasing or replacing vehicles (e.g., electric vehicles, hybrids, fuel-efficient vehicles).
  • Promote the car-sharing initiative in the various sectors.

SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all.

7.2 By 2030, increase substantially the share of renewable energy in the global energy mix.

Starting point:

GHG emissions from the vehicle fleet in fiscal 2005–2006:

  • Average corporate consumption in 2005 (L/100 km): 10
  • Total consumption (litres): 52,031
  • Kilometres travelled: 520,447

Estimated corporate CO2 emissions (kg): 116,642.

The vehicle fleet is one of the main sources of GHG at CED.

  • Average corporate consumption (L/100 km): 9.85
  • Total consumption (litres): 24,853.
  • Kilometres travelled: 169,238

In 2018–2019, corporate CO2 emissions were estimated to be 56,950 kg, for an average of 262 kg of CO2 per vehicle.

CED plans to replace all its vehicles by hybrid vehicles in accordance with the Treasury Board Secretariat's Directive on Fleet Management. This will have a significant impact on CED's results going forward. It should be noted that the objectives of the federal strategy have already been met at CED.

Support the transition to a low-carbon economy through green procurement.
  • Integrate environmental considerations into procurement management processes and controls.
  • Ensure that decision-makers have the necessary training and awareness to support green procurement.
  • Ensure that contributions to, and support for, the objectives of the Government of Canada Policy on Procurement objectives are included in the performance evaluations of key officials.

SDG 13: Take urgent action to combat climate change and its impacts.

13.2 Integrate climate change measures into national policies, strategies and planning.

  • Maintain and improve the printing rate (15 FTEs for 1 printer) and the use of recycled paper.
  • Continue using Public Services and Procurement Canada (PSPC) standing offers and supply arrangements to choose green, sustainable goods and services.
  • Pursue work initiatives for a paperless environment through electronic solution strategies and better information management.
  • Ensure that the performance agreements of purchasing and supply managers and supervisors in the Technology, Information, Security and Administration Branch include support and contributions towards green procurement during the fiscal year in question.
  • Pursue the target of 90% of toner cartridges recycled relative to the total volume of all toner cartridges purchased in the year in question.

The printing rate in 2018–2019 was 20 FTEs for 1 printer.

CED prints on 100% recycled paper.

Newly acquired imaging and IT devices have Energy Star certification, and energy saving functions have been activated in all new fit-ups.

Procurement takes environmental considerations into account in the process for purchasing goods and services.

Various information management projects that contribute to progress towards a paperless workplace were implemented in 2018–2019, such as:

  • the installation of scanners in quiet rooms;
  • the creation of metadata for departmental correspondence; and
  • the creation of a workflow for translation services and the creation of HR files.

100% of toner cartridges are recycled.

Demonstrate innovative technologies*

N/A

N/A

N/A

N/A

Promote sustainable travel practices*
  • Implement more robust videoconferencing capacities, thus reducing the need to travel for in-person meetings.
  • Maintain existing approaches for sustainable workplace practices, such as using modern technologies to facilitate employee mobility.

SDG 13: Take urgent action to combat climate change and its impacts.

13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

  • Pursue the upgrading of videoconference systems and ensure their reliability.
  • Put in place work tools and technologies to facilitate telework.

With a view to reducing travel, CED employees now have laptops and cell phones that enable the use of videoconferencing devices.

CED also encourages the use of flexible working arrangements by its employees, such as telework, to reduce both travel and GHG emissions.

Understand climate change impacts and build resilience* N/A N/A N/A N/A
Improve transparency and accountability N/A N/A N/A N/A
Develop policies for a low-carbon government N/A N/A N/A N/A

* This contributing action does not apply to small and micro departments. These departments should insert "Not applicable" in columns three to six.

† This contributing action applies only to the Centre for Greening Government at the Treasury Board of Canada Secretariat (TBS). All other departments should insert "Not applicable" in columns three to six.

Context: Clean growth

Through its various programs, CED invests in technologies that aim, among other things, to reduce GHG emissions and air pollutants.

FSDS goal: Clean growth
FSDS target(s) FSDS contributing action(s) Corresponding departmental action(s) Support for United Nations Sustainable Development Goal (UN SDG) target Starting point(s), target(s) and performance indicator(s) for departmental actions Results achieved
Implement our Mission Innovation commitment to double federal government investment in clean energy research, development and demonstration by 2020, from 2015 levels. Invest in technologies to reduce GHG and air pollutant emissions. Through the Quebec Economic Development Program, support clean technologies by fostering the development, production or adoption of technologies that improve environmental performance in a given market.

SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

Starting point: N/A

Target:

  • The goal of the RDAs is to double their total annual funding for clean technologies, bringing it to $100 million per year, from existing resources. Of this amount, CED is committed to investing $25 million per year.

Performance indicator:

  • CED's annual spending on projects that support clean technologies
  • CED surpassed the established target, with annual spending of $46.2 million in 179 clean technology projects.

Context: Sustainably managed lands and forests

FSDS goal: Sustainably managed lands and forests

FSDS target(s)

FSDS contributing action(s)

Corresponding departmental action(s)

Support for United Nations Sustainable Development Goal (UN SDG) target

Starting point(s), target(s) and performance indicator(s) for departmental actions

Results achieved

Terrestrial ecosystems:

By 2020, at least 17% of land areas and inland waters are conserved via networks of protected areas and other effective zone-based conservation measures.

Build capacity and provide support.

Deliver the Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec (SICSBOQ) to limit the negative effects of the outbreak and create economic development opportunities in various regions.

SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

15.8 By 2020, introduce measures to prevent the introduction and significantly reduce the impact of invasive alien species on land and water ecosystems and control or eradicate the priority species.

Starting point:

44,606 hectares treated from 2014-2015 to 2017-2018:

  • 12,121 hectares treated in year 1 (2014–2015);
  • 9,329 hectares treated in year 2 (2015–2016); et
  • 8,644 hectares treated in year 3 (2016–2017)
  • 14,512 hectares treated in year 4 (2017–2018).

CED aims to treat 12,000 hectares of infested areas annually using an organic pesticide (36,000 hectares by 2020).

Performance measurement:

  • Number of hectares of infested areas treated.
  • The ad hoc initiative began in 2014-2015 and ended in 2017-2018.
  • A total of 44,606 hectares were treated.
Additional departmental sustainable development activities and initiatives related to a low-carbon government
Additional departmental activities and initiatives Support for United Nations Sustainable Development Goal (UN SDG) target Starting points, targets and performance indicators Results achieved
Maintain and promote sustainable practices in the relocation of Head Office and certain business offices. -
  • Take a "greener" approach to work by optimizing the workplace and technological tools through the implementation of "Workplace 2.0".
  • Promote a paperless work environment through the implementation of "Workplace 2.0" and electronic document management.
  • When moving, dispose of surplus assets in accordance with sustainable development practices (e.g., through Eco-Collecte, a recycling organization, or other community organizations).
  • Promote sustainable practices for responsible consumption, such as the establishment of a system for exchanging office supplies among various sectors before buying new ones.
  • In all of its moves, CED worked to develop an accommodation strategy aimed at creating a work environment that provides ways of working collaboratively, ecologically and in a healthy manner.
  • For its office moves, and specifically as concerns the relocation of its Head Office in 2018–2019, CED worked with its IT team to establish a modern, mobile and, above all, fully connected environment that enables full use of mobile devices and limits the use of paper.
  • To promote a paperless work environment, CED began planning a pilot project for a paperless business office.
  • As concerns the disposal of surplus assets during moves, CED ensured compliance with sustainable development practices through recycling organizations or the resale of equipment, allowing for recycling and a second use of assets.
  • In the case of moves and relocations, CED always considers its existing equipment before purchasing new assets, and ensures responsible consumption as concerns dealings with its suppliers and procurement activities. CED also demonstrates concern for sustainable practices by working in partnership with building management to promote phosphate-free hand soaps and hand towels made of recycled paper.
  • The systematic reduction in the number of filing cabinets and storage modules in our moves has made it possible to review purchasing practices and reduce the use of paper.

4. Report on integrating sustainable development

During the 2018–2019 reporting cycle, CED had no proposals that required a Strategic Environmental Assessment and no public statements were produced.

Methodology and technical notes on performance data

1. Canada Economic Development for Quebec Regions (CED) performance measurement methodology

1.1 Historical context

CED-supported projects are monitored by means of data from Statistics Canada and a departmental performance data collection system. The data collection system has been in place since 2002, and has been subject to a number of upgrades, notably on April 1, 2018. The system is, for the most part, computerized and ensures the maintenance of a stable and secure longitudinal database.

In April 2018, the Treasury Board Secretariat (TBS) introduced the Policy on Results. This Policy provides for the definition of a departmental Core Responsibility; the identification of Departmental Results; the breakdown of the latter into Departmental Result Indicators (nine indicators for CED); and the creation of a Program Inventory. CED received the required authorization from the Treasury Board and its Minister for these tools in October 2017. CED also produced an initial Performance Information Profile in November 2017; a second, revised version was forwarded to the TBS in November 2018. The current document is the first Departmental Results Report to be drafted in accordance with the requirements of the Policy on Results.

CED's Core Responsibility is as follows:

Core Responsibility: Develop Quebec's economy

Description: Support economic growth and prosperity and job creation in Quebec by means of inclusive clean growth; help SMEs grow through trade and innovation; and build on competitive regional strengths.

Departmental Result 1: Quebec businesses are innovative and growing

I1: Value of Quebec goods' exports (in dollars)

I2: Value of Quebec clean tech exports (in dollars)

I3: Number of high-growth businesses in Quebec (by revenue)

I4. Revenue growth rate of businesses supported by CED programs

Departmental Result 2: Communities are economically diversified in Quebec

I5: Percentage of SMEs in Quebec that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities

I6: Percentage of professional, science and technology-related jobs in Quebec's economy

I7: Amount leveraged per dollar invested by CED in community projects

Departmental Result 3: Businesses invest in the development and commercialization of innovative technologies in Quebec

I8: Value of R&D spending by businesses receiving CED program funding (in dollars)

I9: Percentage of businesses that collaborate with Quebec institutions of higher learning

Program: The CED Program Inventory consists of three programs:

Attribution of results

CED works closely with a number of federal and Quebec government departments and agencies, as well as with various local and regional stakeholders. This collaboration is reflected in project funding packages. For this reason, CED cannot take credit or responsibility for all the results obtained. It would be more accurate to state that CED project funding contributes to the achievement of the observed results.

In the field of economic development, expected results are rarely observed during the year in which the expenditure is made. In general, it is only upon completion of the project that it is possible to observe a result in terms of the annual sales of the SME receiving funding. The same holds true for the various activities, such as market development, technology transfer and productivity enhancement, that are funded through CED programs.

In accounting for the use of CED funds granted in 2018–2019, and for results, this report relies primarily on three baselines:

CED intervenes in two ways:

1.2 Gathering performance data

In accordance with the new 2018–2019 Departmental Results Framework (DRF), CED has nine Departmental Result Indicators, six of which (I1, I2, I3, I5, I6 and I9) are measured using data from Statistics Canada. The other three indicators (I4, I7 and I8) are measured by means of data from CED projects. All of CED's activities are aligned with the desired Departmental Results; however, given CED's budgetary capacity, and the large number of players in the Quebec economy, it is very difficult to measure the effect of CED intervention on target variation.

CED uses a computer platform to manage its G&C programs and projects. Known as Hermès, this system also allows for the monitoring of individual project performance.

In the case of DA projects, project results are tracked by business office advisors as part of regular client agreement follow-up activities. Generally speaking, the data comes from the businesses' financial statements, which have been audited by a professional accountant independent of the SME and so have a high level of reliability. Instructions for using and inputting indicators, along with appropriate quality controls, ensure consistent data entry in Hermès.

CED introduced a new data collection strategy for IG projects aimed at measuring the impact of IG intervention on recipients. This direct monitoring of IG clients involves obtaining a list of the recipients so that CED can send them a survey. To date, the results have been conclusive and allow CED to obtain more reliable information about the services provided for recipients. This procedure helps avoid situations in which businesses are counted twice, through different IGs.

The Technical Notes section in Appendix 1 provides detailed information on the reliability of the data presented in this report.

2. Technical notes on Performance Measurement Framework (PMF) indicators

DEPARTMENTAL RESULT 1 – Quebec businesses are innovative and growing

Indicator 1:

Value of Quebec goods' exports (in dollars)

Collection frequency:

Yearly

Result attained:

$86 billion

Data source:

Statistics Canada (2018) data, Table: 12-10-0104-01: Trade in goods by exporter characteristics

Program:

Business Innovation and Growth; Community Economic Development and Diversification

Methodology:

Calculation based on Balance of International Payments for goods in Quebec.

Notes:

Statistics Canada compiles the Balance of International Payments by integrating numerous data sources related to transactions between residents and non-residents into statements that measure the flow of goods, services, incomes and financial claims to and from Canada.

Reliability of result:

High



Indicator 2:

Value of Quebec clean tech exports (in dollars)

Collection frequency:

Yearly

Result attained:

Unavailable, as Statistics Canada has not yet provided data for Quebec

Data source:

Statistics Canada

Program:

Business Innovation and Growth; Community Economic Development and Diversification

Methodology:

Unavailable

Notes:

Clean tech is defined as any process, product, or service that reduces environmental impacts: through environmental protection activities, through the sustainable use of natural resources, or through the use of goods that have been specifically modified or adapted to be significantly less energy or resource intensive than the industry standard.

Reliability of result:

N/A



Indicator 3:

Number of high-growth businesses in Quebec (by revenue)

Collection frequency:

Yearly

Result attained:

Unavailable, as Statistics Canada is currently reviewing the calculation methodology for this indicator

Data source:

Statistics Canada

Program:

Business Innovation and Growth; Community Economic Development and Diversification

Methodology:

Calculation based on Statistics Canada's count of the number of Canadian firms that have achieved average annualized growth in revenue greater than 20% per annum over a three-year period. Hence, total growth over a three-year period must be greater than 72.8%. For the purposes of this indicator, growth has been measured by revenue. High-growth enterprises are required to have at least 10 employees at the start of the three-year period and must have been in business for at least four years.

Notes:

N/A

Reliability of result:

High



Indicator 4:

Revenue growth rate of businesses supported by CED programs

Collection frequency:

Yearly

Result attained:

42%

Data source:

CED; administrative program data in Hermès; annual financial statements of businesses that received funding

Program:

Business Innovation and Growth; Community Economic Development and Diversification

Methodology:

The difference between the total revenue of businesses receiving funding under CED programs in year t and total revenue for year t-1, divided by total revenue for year t-1 (expressed as a percentage)

Notes:

N/A

Reliability of result:

High

DEPARTMENTAL RESULT 2 – Communities are economically diversified in Quebec

Indicator 5:

Percentage of SMEs in Quebec that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities

Collection frequency:

Irregular

Results attained:

Women – 16.2%
Indigenous peoples – 0.7%
Youth – 17.2%
Visible minorities – 4.5%
Persons with disabilities – 0.2%

Data source:

Statistics Canada (2017 data, published in 2018): Survey on Financing and Growth of Small and Medium Enterprises, 2017

Program:

Community Economic Development and Diversification; Targeted Transition Support

Methodology:

The calculation is based on the number of SMEs that report as being majority-owned by each group (women, Indigenous peoples, youth, visible minorities and persons with disabilities) in the Survey on Financing and Growth of Small and Medium Enterprises as a percentage of the total number of SMEs with at least one employee

Notes:

N/A

Reliability of result:

High



Indicator 6:

Percentage of professional, science and technology-related jobs in Quebec's economy

Collection frequency:

Yearly

Result attained:

35.4%

Data source:

Statistics Canada (2018 data), Table 14-10-0335-01

Program:

Community Economic Development and Diversification; Targeted Transition Support

Methodology:

Science and technology-related jobs are defined in the OECD Canberra Manual. In addition to occupations typically associated with science, technology, engineering and mathematics (STEM) or merely the natural sciences, this definition also includes physical, mathematical and engineering science professionals, life science and health professionals, teaching professionals, and other professionals in fields such as business, legal, information, social science, creative, religious, and public service administration.

Notes:

N/A

Reliability of result:

High



Indicator 7:

Amount leveraged per dollar invested by CED in community projects

Collection frequency:

Yearly

Result attained:

$2.76

Data source:

CED; administrative program data in Hermès

Program:

Community Economic Development and Diversification; Targeted Transition Support

Methodology:

The numerator is the difference between the total costs for projects with expenditures during the same reference period divided by the total authorized funding for projects with expenditures in 2017–18 divided by the total assistance authorized for projects with expenditures during the reference period.

Notes:

N/A

Reliability of result:

Very high

DEPARTMENTAL RESULT 3 – Quebec businesses invest in the development and commercialization of innovative technologies

Indicator 8:

Value of R&D spending by businesses receiving CED program funding (in dollars)

Collection frequency:

Yearly

Result attained:

$35.6 million

Data source:

CED; administrative program data in Hermès; financial statements of businesses that received funding

Program:

Business Innovation and Growth

Methodology:

Value (in dollars) of R&D spending by businesses receiving CED funding for projects with expenditures during the reference period

Notes:

N/A

Reliability of result:

Very high



Indicator 9:

Percentage of businesses that collaborate with Quebec institutions of higher learning

Collection frequency:

Occasional

Result attained:

22.9%

Data source:

Statistics Canada (2017 data published in March 2019), Table 358-0441.

Program:

Business Innovation and Growth

Methodology:

Statistics Canada' data collected through either the Survey of Business Innovation and Strategy (SIBS) or the Survey of Advanced Technology (SAT) indicating the percentage of businesses that use collaborative practices or which developed strategic alliances with universities, colleges or vocational training centres.

Notes:

N/A

Reliability of result:

High

3. Technical notes on other performance data

3.1 Additional data relating to CED's overall intervention

Data:

Total number of projects that received funding in 2018–2019

Value:

1,079

Data source:

CED; Hermès information management system

Methodology:

Number of projects with expenditures in 2018–2019

Reliability of result:

Very high

Data:

Total number of projects approved in 2018–2019 (by approval date between April 1, 2018, and March 31, 2019)

Value:

569

Data source:

CED; Hermès information management system

Methodology:

Number of projects approved in 2018–2019

Reliability of result:

Very high

Data:

Total actual expenditures in 2018–2019 

Value:

$249,854,840

Data source:

CED; Hermès information management system

Methodology:

Total amount of expenditures for projects with expenditures in 2018–2019

Reliability of result:

Very high

Data:

Value of multi-year funding approved by CED in 2018-2019

Value:

$241,334,214

Data source:

CED; Hermès information management system

Methodology:

Total amount of authorized assistance for projects approved in 2018–2019. These projects will have expenditures over several years.

Reliability of result:

Very high

Data:

Value of the overall investment generated in 2018–2019

Value:

$1,722,727,471

Data source:

CED; Hermès information management system

Methodology:

Total costs for projects approved in 2018–2019.

Reliability of result:

Very high

Data:

Number of businesses that received CED funding

Value:

686

Data source:

CED; Hermès information management system

Methodology:

Total number of businesses that received CED project-based funding in 2018-2019.

Reliability of result:

Very high

Data:

Number of individual communities that received CED funding (SME and NPO projects with expenditures in 2018–2019)

Value:

101

Data source:

Hermès information management system and IG activity reports

Methodology:

Total number of individual communities that received CED funding for SME or NPO direct assistance projects with expenditures in 2018–2019.

Notes:

There are 104 RCMs/ETs in Quebec (one RCM/ET = one community).

Reliability of result:

DA: Very high

3.2 Additional data regarding the Business Innovation and Growth program

Data:

Number of businesses and NPOs that received funding under the Business Innovation and Growth program (direct assistance in 2018–2019)

Value:

730

Data source:

Hermès information management system

Methodology:

Total number of businesses and NPOs that received DA from CED for projects under the Business Innovation and Growth with expenditures in 2018-2019

Reliability of result:

Very high

Data:

Percentage of businesses receiving funding under the Business Innovation and Growth program that maintained or increased their annual sales

Value:

75% (187/248 x 100; DA only)

Data source:

Hermès information management system

Methodology:

Number of businesses that maintained or increased their annual sales in the 2018 calendar year, one year but not more than two years after the actual end date of their project, compared with the results in the last financial statements prior to the start of the project, for businesses whose projects under the Business Innovation and Growth program were completed (i.e., actual project end-date) in fiscal years 2015–2016, 2016–2017 and 2017–2018, out of the total number of businesses represented by this pool, expressed as a percentage.

Reliability of result:

DA: Average; 22% of data missing (70/318) since, at the beginning of June 2019, a number of businesses had not yet released their 2018 financial statements. This low reliability rate can be attributed to the fact that CED is dependent on the dates on which the businesses produce their financial statements.

3.3 Additional data regarding the Community Economic Development and Diversification program

Data:

Number of businesses and NPOs that received funding under the Community Economic Development and Diversification program (direct assistance in 2018-2019)

Value:

322

Data source:

Hermès information management system

Methodology:

Total number of businesses and NPOs that received DA from CED for projects under the Community Economic Development and Diversification program with expenditures in 2018–2019

Reliability of result:

Very high

Data:

Number of individual communities that received funding under the Economic Development Initiative (EDI) – Linguistic Duality

Result attained:

11 official language minority communities (OLMCs)

Data source:

Hermès information management system

Methodology:

Total number of OLMCs that received funding in 2018–2019 for EDI projects

Reliability of result:

Very high

Data:

Percentage point increase in the annual sales growth of CFP clients compared with the control group

Result attained:

2.5 percentage points higher

Data source:

Statistics Canada

Methodology:

Difference between the average annual sales growth rate over five years of CFP clients and that of a comparable group of businesses that did not receive CFP funding.

Reliability of result:

High

Data:

Total investment generated in communities by the Community Economic Development and Diversification program

Result attained:

$490,725,555

Data source:

Hermès information management system

Methodology:

Total costs of projects approved in 2018–2019 for projects under the Community Economic Development and Diversification program

Reliability of result:

Very high

3.4 Additional data regarding the Targeted Transition Support program

Data:

Number of businesses and NPOs that received funding under the Targeted Transition Support program (direct assistance in 2018–2019)

Value:

27

Data source:

Hermès information management system

Methodology:

Total number of businesses and NPOs that received DA from CED for projects under the Targeted Transition Support program with expenditures in 2018–2019

Reliability of result:

Very high

Data:

Total investment generated in communities as a result of ad hoc and targeted initiatives under the Targeted Transition Support program

Result attained:

$55,925,307

Data source:

Hermès information management system

Methodology:

Total costs of projects approved in 2018–2019 under the Economic Recovery Initiative for Lac-Mégantic, the Economic Diversification Initiative for Communities Reliant on Chrysotile and the Women Entrepreneurship Strategy.

Reliability of result:

Very high

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