Good afternoon, Mr. Chair and committee members.
First, thank you for inviting us to appear before you today on behalf of the Federal Economic Development Agency for Southern Ontario, more commonly known as FedDev Ontario.
My name is Nancy Horsman; I am the president of the agency. I am accompanied by my colleagues Alain Beaudoin, vice-president of Policy, Performance and Partnership Management, and Frank Lofranco, vice-president of Business, Innovation and Community Development.
FedDev Ontario was created in 2009 with a five-year mandate to respond to the effects of the global economic downturn in southern Ontario. In budget 2013 the agency was renewed for a further five-year mandate, which ends at the end of March 2019. FedDev Ontario is headquartered in Waterloo, with offices across the region in Ottawa, Toronto, and Peterborough, and it employs approximately 230 full-time equivalent staff.
Southern Ontario is a unique region and a key contributor to the Canadian economy. The region is home to approximately a third of Canada's population and accounts for more than a third of national employment, gross domestic product, and exports. Southern Ontario is also home to key clusters, including automotive, finance, information, and communications technology, and life sciences, and many of these are supported by incubators and accelerators.
Ontario is Canada’s research and development engine. Nearly half of all Canadian private sector R and D is performed in Ontario. Ontario also has the highest rate of university education attainment in the country and the largest number of colleges and universities.
Nevertheless, the region has not been immune to the pressures of the changing global economy. Similar to other advanced economies, the region is undergoing a shift towards a growing service-oriented and knowledge-based economy. Many of the region’s traditionally strong industries, such as manufacturing and automotive sectors, are in transition.
And while economic conditions in the region have improved in recent years, ongoing challenges remain.
FedDev Ontario’s programs and services are meant to leverage the region’s competitive advantages to address these challenges. Our core mandate is to strengthen southern Ontario’s economic capacity for innovation, entrepreneurship, and collaboration, and to promote the development of a strong and diversified southern Ontario economy.
Our programs and services are well positioned to support the Government of Canada's priorities, including Canada’s innovation agenda, and to support communities in transition. FedDev Ontario is working to help partners in the region to drive economic growth; support firms’ ability to adapt, become more productive and access new markets; and invest in projects that create good, well-paying jobs.
In delivering on its mandate, FedDev Ontario plays a number of key roles. We fund targeted projects, along with other partners, to stimulate the Ontario economy. We deliver national programs in our region. We provide business-related services to firms and other stakeholders. We bring together key stakeholders to improve the performance of the Ontario economy, playing a convenor role. Finally, we act as a champion for the region of southern Ontario.
We were provided a budget of $920 million over our current five-year mandate to carry out these roles. The agency's core programs are the southern Ontario prosperity initiatives, the advanced manufacturing fund, and the eastern Ontario development program, each of which I will explain briefly.
The southern Ontario prosperity initiatives include four initiatives that cover a range of business needs in the region.
Through the investing in business innovation initiative, the agency supports early-stage companies in areas such as access to capital, mentorship, and work with incubators. Through the investing in business growth and productivity initiative, the agency helps small and medium-sized enterprises scale up capacity, access export markets, and adopt technology to become more productive.
Through the investing in commercialization partnerships initiative, the agency invests in projects that strengthen clusters and/or create innovation, always with the goal of commercializing new technologies or processes. Through the investing in regional diversification initiative, the agency supports communities to leverage their unique assets, diversify their economies, improve competitiveness, and attract investment and jobs.
The advanced manufacturing fund helps manufacturers adopt cutting-edge technologies which strengthen their position in global supply chains.
To serve the ongoing economic challenges of youth exodus and the transition of traditional sectors in eastern Ontario, the agency has a program called the eastern Ontario development program. This program promotes business development, community innovation and strategic collaboration and is delivered through the region’s Community Futures Development Corporations.
FedDev Ontario, like other regional development agencies, plays an important role as a federal delivery agent for national programs, specifically, the community futures program, the economic development initiative, and the Canada 150 community infrastructure program.
The community futures program helps the small businesses that are the cornerstone of our rural communities to seize opportunity and expand through access to loans, training, and networks.
The economic development initiative focuses on strengthening innovation, entrepreneurship, partnerships, and diversification of economic activities in official language minority communities. In southern Ontario, the EDI program is designed to meet the needs of Ontario's francophone communities.
The Canada 150 community infrastructure program is being delivered by regional development agencies across the country to celebrate the 150th anniversary of Canada's Confederation in 2017. This national program supports the rehabilitation or improvement of existing community infrastructure. This includes projects that support indigenous communities and that promote a clean growth economy. FedDev Ontario is delivering $88.8 million of CIP 150 funding in southern Ontario.
FedDev Ontario also delivers business-related services through industrial and technological benefits activities and Canada Business Ontario, or CBO, which is part of the Canada Business Network.
FedDev Ontario provides support to the southern Ontario aerospace and defence sector and facilitates participation in Canadian defence and security procurement by leveraging opportunities under the industrial and technological benefits policy.
Canada Business Ontario provides information through its online, contact centre, and outreach activities to people across Ontario on how to start, manage, and grow a business.
FedDev Ontario's contribution to achieving positive economic outcomes is realized not only through co-investing in projects and delivering services, but also through acting as a convenor and champion for the region.
The agency convenes key regional players to seek a common vision and encourage the development of coordinated plans. We actively promote the assets in the region. The agency also provides regional intelligence by playing a role as the bridge to and from Ottawa.
Since its creation in August 2009, FedDev Ontario has committed more than $1.6 billion, which is estimated to have resulted in more than $2.4 billion in additional leveraged funds. This includes more than 325 projects with small and medium-sized enterprises, more than 50 projects with incubators and accelerators, and more than 200 projects with manufacturers. Those are just our direct investments. We also do investments through third-party delivery with the Canadian Manufacturers and Exporters and the Yves Landry Foundation.
This fiscal year, FedDev Ontario is on track to fully spend its allocated program funding of $227.7 million, using $25.7 million of operating funding. For the remainder of our mandate, the agency will continue to assess proposals, deliver programs, and monitor and measure performance of its portfolio of investments. We will continue to provide business-related services and act as a convenor and champion while planning for the renewal of our mandate.
In closing, I want to thank you for the opportunity to appear before you today.
My colleagues and I welcome any questions you may have.