Finance Committee on Sept. 20th, 2016

[The Chair, Liberal, Wayne Easter]

I'll stop you both there.

Mr. Aboultaif.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Thank you for this. Your report seemed to be a very optimistic one. I hope that is not a result of you having an overall budget reduction.

I have a couple of things. It seems as though the issue in P.E.I., similar to the rest of Atlantic Canada, has been an ongoing story for the longest time. How much improvement have we seen on the economic front in the last 10 years, for example?

[Patrick Dorsey]

I think, as I mentioned previously, there's still work to do obviously with high levels of unemployment in some areas of the province, or in Atlantic Canada more so than others. I think economic diversification will be key. We have seen an increase in terms of productivity levels and innovation of Prince Edward Island firms over the past number of years. There is more to do in that regard. I mentioned the growth in exports which is very key. P.E.I. led the country in export growth during the last two years and it needs to continue to do that. It's important to keep momentum going in this but, as I said, there's always more to do.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Would you hope for a pipeline project to be a key factor in changing the dynamic of your economies in the regions, specifically in P.E.I., to give you the opportunity to improve on other sectors while you're progressing in some areas?

[Patrick Dorsey]

Similarly to the previous witness, I think that's a sensitive, more political issue being dealt with right now.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

I will move to another question. What are other areas where you can improve the economy? How can you explore other industries, other areas of business, that are going to give you the stability that you need in order to maintain the younger generation within the province and in order to increase productivity and have real prosperity for the population of 146,000 in P.E.I.?

[The Chair, Liberal, Wayne Easter]

Mr. Dorsey, in order to get around the political sensitivity, I don't think Ziad is asking you to take a position on the energy east pipeline, which I fully support. But in any event, where would the opportunities be in Prince Edward Island if the energy east pipeline were to come into being, if I could put it that way? That's not putting you in a position of having to take a position for or against. If it were there, would it make a difference?

[Patrick Dorsey]

Let me put it this way. I think with any sort of major project there are opportunities for Prince Edward Island firms or firms in Atlantic Canada to contribute to those projects. We've seen with the national shipbuilding initiative led out of Halifax shipyard that there have been opportunities for island firms to be matched with prime contractors to do work on that.

Economic activity is important and projects are important.

[The Chair, Liberal, Wayne Easter]

Okay. You have time for one more Ziad.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Again, along the same line, do you lack markets, or are the markets there but you're not competitive enough?

[Patrick Dorsey]

In terms of markets, there's more work to do with respect to diversifying our markets. More than one-half of our exports currently go to the United States right now from Prince Edward Island. When the economy is good, that is a good thing, but we've noticed where the economy has lagged, it's been problematic, so we've worked hard to diversify our markets increasingly, particularly with our food products. Asia has been a popular destination for our SMEs to do business.

A key function for us in terms of trade development is not just doing the traditional trade mission work. We have to do more work in advance and in getting our firms ready to export, educating them about markets and opportunities, and making them generally market-ready. That's where our focus has been.

[The Chair, Liberal, Wayne Easter]

Thank you.

Mr. Ouellette you have five minutes.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Thank you, Mr. Chair.

When we talk about trade strategy, could you describe what the trade strategy is for ACOA? What is the long-term strategy to be developed?

[Patrick Dorsey]

I initially started on how we see that happening. We have an initiative with the Province of P.E.I. called Trade Team P.E.I. It's a joint management of our trade efforts. On an annual basis we release a calendar, after extensive consultation with industry and stakeholders in the trade world, of where they would like missions to go. Increasingly, though, we're doing more incoming missions. We're bringing buyers to the province, because what we noticed is that when they see the province, when they see the quality of products that are being produced, and where they're being produced, the likelihood that they'll buy and do business with SMEs in P.E.I. is higher. That's a very successful initiative of our trade strategy.

I think diversification of markets is going to be key. As I said, the United States represents a disproportionate amount of our trade and we need to do more to diversify that. But I think with sectors and the ICT and the services area, our clients are looking around and they are seeing opportunities elsewhere.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Do you also help small and medium-sized enterprises mitigate some risk when they're going overseas with trade missions or trying to build those businesses?

[Patrick Dorsey]

Yes, we support them on those missions. With the province, we lead a missions to particular markets. We engage resources on the ground to matchmake the firm with potential buyers in that market or area of interest. We provide general support and marketing support for those companies. We do not provide resources for their travel, but the provincial government subsidizes that from time to time.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

I was also wondering if you could just describe this a little bit. I was looking at the total number of investments in 2016-17, ACOA and the Canada Economic Development for Quebec Regions. For instance, overall you have $308 million, and Canada Economic Development for Quebec Regions received $303 million, but you have 590 employees and they have 323 employees. I was just wondering why there's such a large discrepancy. I think it's sometimes easier to hire employees than getting the money to the businesses. Are you offering additional services that other development agencies aren't?

[Patrick Dorsey]

We have a full range of services. We have a significant loan portfolio that is at about $350 million. It needs to be managed for some time, more than 10 years. That requires resources.

We have a full suite of services around innovation, productivity, international trade development, business support, direct business advice. There's a significant suite of programming offered.

We represent a largely rural area of the country across four different, distinct provinces, and our employees are on the ground in communities, meeting with clients and ensuring that projects get over the line and developed.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

It is a large number of employees compared to other development agencies.

[Patrick Dorsey]

I think it's a situation of place-based policy. The government has determined that, given unique challenges in particular regions, the structure and flexibility of regional development agencies can be different.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

I have just one final question. I wonder if you could perhaps provide—because I asked many of these same questions—these same things about the indigenous side.

How many indigenous companies have you been helping in the last number of years? How many jobs have been created? How many jobs still exist today? What are the industries? What services do you offer to those indigenous companies that export from Canada? What stops investment in indigenous communities and groups?

If you could provide those as an answer later to the clerk's office, I'd really appreciate that.

[Patrick Dorsey]

I don't have all the numbers that you request. We currently have eight projects under evaluation in our office that are indigenous-related.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Under evaluation?

[Patrick Dorsey]

Under evaluation.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Not the 150th anniversary thing but real projects?