Archived — 2010-2011 Report on Plans and Priorities

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Section II: Analysis of Program Activities by Strategic Outcome

The Economy of Southern Ontario Is Competitive and Diversified

Southern Ontario is undergoing a process of rapid structural adjustment. After a period of robust growth from the mid-1990s to 2004, buoyed notably by relatively low Canadian currency values and high U.S. demand, many of the region's traditionally strong industries, particularly the manufacturing and automotive sectors, are facing major challenges. The current financial crisis, the resulting sharp economic downturn and weakening U.S. demand for Southern Ontario goods and services have intensified the need for adjustment in the region to stem job losses and economic distress.

According to Statistics Canada, Ontario's unemployment rate reached 9.6% in the summer of 2009, the highest rate in fifteen years, at a time when the national average was 8.6%. Certain communities in Southern Ontario, particularly in the southwestern area, had very high unemployment figures: Windsor, 14.4%; St. Catharines-Niagara, 10.9%; London, 10.4%; and Kitchener, 9.9%.

Statistics Canada reported that employment levels in Ontario had fallen by 232,000 since October 2008. Over half of these job losses were in the manufacturing sector. Southern Ontario's manufacturing sector has seen a steady structural decline since 2004. FedDev Ontario's programs help Southern Ontario's manufacturing sector face these new economic realities and compete more effectively in the global marketplace by bolstering productivity levels through investment and innovation.

Planned Spending Breakdown by PAA Program Activity 2010–2011

A pie chart showing the percentages of planned spending for 2010–2011 (the long description is located below the image)
Description of Figure

A pie chart showing the percentages of planned spending for 2010–2011 according to FedDev Ontario's program activity architecture. Some 78% of planned spending will fall under the Community and Business Development program, 19% under Infrastructure, and 3% under Internal Services.

Program Activity by Strategic Outcome

Program Activity: Community and Business Development
Human Resources (FTEs) and Planned Spending ($ millions)
2010–11 2011–12 2012–13
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
83 395.0 117 204.5 117 202.8
Program Activity Expected Results Performance Indicators Targets
Enterprises are contributing to community economic growth and viability

Percentage of SMEs assisted that maintained or increased their sales

70%

The Community and Business Development program supports communities and businesses in Southern Ontario by making the Southern Ontario economy and its communities more competitive, innovative and diversified. This will be achieved by increasing economic opportunities, increasing community and business capacity to respond to challenges, stimulating economic development and promoting conditions that foster competitive businesses and sustainable communities. Through this program, FedDev Ontario delivers and administers grants and contributions with not-for-profit organizations, other levels of governments and businesses. The funds are used to enhance business productivity and competitiveness; provide entrepreneurs and small and medium-sized enterprises with improved access to capital and business development information and services; and support community economic planning, development and diversification initiatives.

This program benefits businesses and communities in Southern Ontario by providing them with opportunities, support and guidance to which they would not have access without this program

FedDev Ontario will implement this program activity through the following sub-activities:

  • Southern Ontario Development Program
  • Eastern Ontario Development Program
  • Community Futures Program
  • Official Languages Minority Communities Development Program
  • Ontario Potable Water Program
  • Brantford Greenwich-Mohawk Remediation Project
  • Development Projects for Communities and Businesses, which includes the Community Adjustment Fund (Southern Ontario Component)
Program Sub-Activity
Southern Ontario Development Program
Expected Results Indicators Targets
Communities in Southern Ontario are viable and businesses in the region are competitive Number of businesses and organizations created, expanded or maintained as a result of support from SODP 700
Ratio of funds raised from other sources to SODP contributions  1:1
Program Sub-Activity
Eastern Ontario Development Program
Expected Results Indicators Targets
Communities in Southern Ontario are viable and businesses in the region are competitive Number of Eastern Ontario businesses and organizations created, expanded or maintained as a result of support from EODP 50
Ratio of funds raised from other sources to Eastern Ontario Development Program (EODP) contributions 4.5:1
Program Sub-Activity
Community Futures Program
Expected Results Indicators Targets
Communities in rural Southern Ontario are viable and businesses in the region are competitive Ratio of funds raised from other sources to federal Community Futures (CF) Program investments 1.7:1
Number of businesses created, expanded, maintained or strengthened in rural Southern Ontario by Community Futures Development Corporations (CFDCs) 2250
SMEs in official language minority communities have improved access to economic development projects
Number of projects or activities (innovation, diversification, partnerships or number of SMEs supported) 35
Program Sub-Activity
Ontario Potable Water Program
Expected Results Indicators Targets
Increased community capacity to respond to economic development opportunities and challenges in recipient communities Number of grants distributed to target groups 30
Value of grants delivered to target groups $22.5 million
Program Sub-Activity
Brantford Greenwich-Mohawk Remediation Project
Expected Results Indicators Targets
Fifty acres of remediated land in Brantford, Ontario suitable for residential development, some light commercial development and a cultural/heritage component

Achievement of project milestones (i.e., removal of on-site tenants, preparation of final development plan, call for tenders to redevelop the site, demolition of remaining buildings on the site, remediation to provincial standards, registration of site condition with the Ontario Ministry of the Environment)

Demolition of existing on-site buildings
Program Sub-Activity
Development Projects for Communities and Businesses*
* This sub-program is also known as the Community Adjustment Fund (CAF). (Back to text)
Expected Results Indicators Targets
Development projects enhance or accelerate community and business development in Ontario Number of development projects supported that would not have been realized without CAF investment 100
Number of communities benefiting from development projects 75
Ratio of program investment to investment from other sources  1:1
Planning Highlights and Benefits for Canadians

In order to achieve the expected result, FedDev Ontario will undertake the following key activities:

Southern Ontario Development Program (SODP)

The Southern Ontario Development Program (SODP) is a core program of FedDev Ontario. It builds upon the assets and strengths of communities to create an environment where businesses can thrive and maximize Southern Ontario's potential to succeed in the knowledge-based economy. Its objective is to promote economic development, diversification and innovation. The Southern Ontario Development Program will deliver close to $176 million in funding in 2010–2011.

Under this Program Activity, FedDev Ontario will also deliver a number of initiatives that were announced under Canada's Economic Action Plan (Budget 2009), including:

Eastern Ontario Development Program (EODP)

The government renewed the EODP under Canada's Economic Action Plan (Budget 2009) at $20 million over two years. EODP-funded activities began in summer 2009. In 2010–2011, the Agency will strengthen the economy of rural Eastern Ontario further by investing $9.6 million to help develop a competitive and diversified economy, create jobs and ensure the region's long-term growth and prosperity.

The EODP will be delivered by the 15 Community Futures Development Corporations (CFDCs) located throughout rural Eastern Ontario.

The resources provided to the CFDCs will be used to invest in local and regional projects within six key economic development priorities:

  1. Innovation and Deployment of Information and Communications Technologies
  2. Business Development
  3. Community Development
  4. Skills Development
  5. Attraction and Retention of Youth
  6. Improved Access to Capital and Leveraged Capital

FedDev Ontario will consult with the 15 CFDCs and other stakeholders beginning in March 2010 regarding program priorities and performance targets for the fiscal year 2010–2011. 

Community Adjustment Fund Intake II (CAF)

FedDev Ontario will also continue to deliver the CAF program that was part of Canada's Economic Action Plan. The second phase of the CAF was launched on December 15, 2009.

Small and medium-sized enterprises, municipalities, not-for-profit organizations, Aboriginal organizations, colleges and universities are all eligible to submit projects. The Community Adjustment Fund will support projects in and around resource-based and manufacturing communities that are dependent on a single industry. The fund will invest in projects that create immediate job opportunities for communities. It will focus not only on economic development, but innovation and diversification.

Overall funding for the second intake process will be $127.8 million in 2010–2011.

Program Activity: Infrastructure*
* Infrastructure spending for the years 2011–2012 and 2012–2013 does not include expenditures on behalf of Infrastructure Canada. (Back to text)
Human Resources (FTEs) and Planned Spending ($ millions)
2010–11 2011–12 2012–13
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
32 98.4 32 0.2 32 0.1
Program Activity Expected Results Performance Indicators Targets
Ontario has the infrastructure required to sustain its development Number of infrastructure projects administered 50
Ratio of funds raised from other sources for every dollar of Ontario infrastructure improvement 11

FedDev Ontario delivers infrastructure programming in Ontario to ensure that communities have good quality and dependable infrastructure in place such as water, sewage and transportation infrastructures, and that residents benefit from access to this infrastructure. Community infrastructure is an essential building block for community development, and strategic infrastructure investments can be a catalyst for a community to grow and prosper. Through this program, FedDev Ontario delivers and administers contribution agreements with municipalities or contractors, which use these funds to create, renew or enhance Ontario communities' infrastructure. This program benefits residents of Ontario by contributing to the development and maintenance of infrastructure in Ontario, thereby helping Ontario residents have access to quality infrastructure meaning, for example, access to water that is safe to drink and roads that are safe to drive on.

The RInC initiative, representing spending of about $95 million in 2010–2011, falls under the FedDev Ontario Infrastructure program and accounts for most of the program's budget.

Planning Highlights and Benefits for Canadians

In 2010–2011, FedDev Ontario will continue to work with Infrastructure Canada to deliver a suite of infrastructure programs in the province of Ontario, including the Canada-Ontario Infrastructure Program, Canada-Ontario Municipal Rural Infrastructure Fund, Canada Strategic Infrastructure Fund, Municipal-Rural Infrastructure Top-Up Fund and Building Canada Fund. These programs represent hundreds of millions of dollars in investment in key infrastructure projects across the country.

The administration of infrastructure funding throughout Ontario coupled with economic development investments in community projects will enhance growth, profitability and competitiveness by establishing reliable water, transportation and waste management infrastructure, and by building community capacity in sport, tourism, housing and other sectors.

By delivering programs and services that support SME growth and competitive and self-sustaining communities across Ontario, the Agency will help build economically healthier regions that contribute to economic growth.

FedDev Ontario's value-added is the efficient and effective delivery of infrastructure funding provided by Infrastructure Canada.

Recreational Infrastructure Canada (RInC)

In 2010–2011, FedDev Ontario will continue to work with the Ontario government to administer and deliver the Ontario portion of RInC, a Canada's Economic Action Plan initiative from Budget 2009. This program uses contribution agreements to help upgrade and renew recreational infrastructure such as arenas, swimming pools, tennis courts, baseball fields and other recreational facilities. This program benefits Canadians by creating employment, mostly in construction-related jobs, and by renewing and upgrading recreational infrastructure in Ontario.

Canada's Economic Action Plan (EAP)

Initiatives originating from EAP and discussed in detail above are the:

  • Recreational Infrastructure Fund,
  • Community Adjustment Fund and
  • Eastern Ontario Development Program.

Budget 2009 also presented the $1 billion earmarked over five years for the Southern Ontario Development Program (SODP).

Program Sub-Activity
Southern Ontario Development Program
Expected Results Indicators Targets

Communities in Southern Ontario are viable and businesses in the region are competitive

Number of businesses and organizations created, expanded or maintained as a result of support from SODP

700

Ratio of funds raised from other sources to SODP contributions

1:1

Amongst these EAP initiatives, the SODP has the largest expenditure over the 2010–2011 period. The expected results of program spending, performance indicators and performance targets are given in the table above. Some 700 businesses and organizations are expected to be created, expanded or maintained as a result of SODP support. In addition, it is anticipated that $1 will be raised from other sources for every $1 of SODP contributions.

Program Sub-Activity
Development Projects for Communities and Businesses *
* This sub-program is also known as the Community Adjustment Fund, (CAF). (Back to text)
Expected Results Indicators Targets
Development projects enhance or accelerate community and business development in Ontario Number of development projects supported that would not have been realized without CAF investment 100
Number of communities benefiting from development projects 75
Ratio of program investment to investment from other sources 1:1

The next largest expenditures over the 2010–2011 period will come from the Community Adjustment Fund (CAF). Without CAF support, one hundred new development projects would not have been realized and 75 communities would not have benefited. It is also anticipated that $1 will be raised from other sources for every $1 of CAF investments.

Program Activity: Internal Services
Human Resources (FTEs) and Planned Spending ($ millions)
2010–11 2011–12 2012–13
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
65 13.6 92 11.3 92 11.3

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of our organization. These groups are Management and Oversight Services, Policy and Research Services, Communications Services, Legal Services, Human Resource Management Services, Financial Management Services, Information Management Services, Real Property Services, Acquisition Services, Travel and Other Administrative Services.

Internal Services include only those activities and resources that apply across an organization and not those specific to a program.

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