Finance Committee on Sept. 21st, 2016

[Peter Hogan]

Thank you for the question, Mr. Chair.

To start out, there are a couple of points I would make. We do have a significant presence. We, ACOA, are staffed outside of Halifax. For example, on mainland Nova Scotia there are approximately 12 people who are actually physically based and work with clients outside the Halifax area. As a result, that enables them to get a good understanding of just what the needs are in the rural areas, in the areas outside of Halifax.

In our Sydney office in Cape Breton, we have approximately 30 folks there, 30 staff. Again, they're very well positioned. By physically being based there, they have a good understanding of the issues and what some of the opportunities are.

We've made a concerted effort ourselves within ACOA Nova Scotia to ensure that we do focus on rural opportunities and to assist companies that are based outside of Halifax. One of the examples I mentioned earlier was in the agriculture and seafood sector. Most of those companies are based outside Halifax. The support we're providing to them will enable them—in a couple of cases recently with lobster processing companies—to produce a higher value-added product, to pursue additional markets. That really ensures the maintenance of jobs and, in a number of cases, the creation of additional jobs.

We are very much attuned to that. In addition, we do have our funding for communities through the innovative communities fund. Again, we work very closely with communities to identify opportunities, the things they can do to make their particular area more attractive to increase business or perhaps to assist young people in terms of getting a job in their community.

[The Chair, Liberal, Wayne Easter]

Mr. McColeman.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Thank you, Chair.

What would the economic impact be of the completion of the pipeline, the eastern pipeline into Nova Scotia? What economic effect would you see for your region?

[Peter Hogan]

I don't have specific figures in terms of what the impact would be, but if a decision were to be made to proceed with that I know that a number of the companies in Nova Scotia that have a lot of experience in bidding on major projects and initiatives would certainly be very interested in it, and they would obviously look to create additional revenues and grow their workforces. I can't tell you specifically what the impact would be.

[Phil McColeman, Conservative, Brantford—Brant, ON]

I'm not looking for a specific impact.

I've asked this question of every development group that's come to this table so far. I think there's a consensus, if I might say so, that it would be, in certain situations, either a huge boom for them or have very positive effects in terms of job creation and business expansion, and, in some cases, that it would even change the whole dynamic of their business environment today.

Where do you fall in that spectrum that I just gave you?

[Peter Hogan]

I would see it perhaps in the middle. I would see it as having a very positive impact, without knowing exactly what some of the requirements are. It's something that certainly is on our radar, as are other major projects, and we've assisted many companies. For example, we work with companies around the national shipbuilding procurement strategy, where we've arranged for industry days and made companies aware of the opportunities.

Should that project go ahead, we would probably look to say, what are the opportunities here and how can we maximize the benefits for the companies in Nova Scotia and Atlantic Canada?

[Phil McColeman, Conservative, Brantford—Brant, ON]

You're talking like a politician. I'll take it that your answer is yes, it would have a positive effect for Nova Scotia.

[Peter Hogan]

Assuming that our companies are willing to step up and that their capabilities match the opportunities, yes.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Thank you.

That's it.

[The Chair, Liberal, Wayne Easter]

Mr. MacKinnon, you'll have the last series of questions, I think, unless anybody has one or two more.

[Steven MacKinnon, Liberal, Gatineau, QC]

Thank you, Mr. Chair.

We have, as you've noted, heard from two of your counterparts, and I thank you for being here. I'm somewhat familiar with the Maritimes as well. I think the alignment with provincial governments on files like immigration and Atlantic growth is something that's coming through loud and clear.

Perhaps to take just a bit of a different tack with you, though, as I note with everyone, we're trying to find ways to squeeze more growth and more innovation out of the Canadian economy in every region of the country. What are the quick wins? What would be the quick wins for Nova Scotia?

[Peter Hogan]

I think that in Nova Scotia there are a number of opportunities. I've referred several times to the ICT sector, which is really enjoying tremendous growth. I think there's a lot more potential there. Again, in my opening remarks I talked about the number of post-secondary institutions we have. Really, there are a lot of students going through those programs who are well suited to that.

The life sciences sector in Nova Scotia is also very important with regard to the capabilities at Dalhousie Medical School. Again, I haven't talked too much about that, but there are companies that are doing very well in those sectors.

The one I would probably come back to—and again, I referenced it in my remarks—is the ocean sector. With the investments that have been made recently and announced around the Ocean Frontier Institute, we really do see that as helping to jump-start the sector in Nova Scotia. On a global basis, the oceans are obviously of great interest and great importance. With the concentration of Ph.D.s at Dalhousie, we do see that as really providing great opportunity in the future.

If I might add one more thing, I'll again come back to the traditional sectors. There are tons of opportunities there. We've seen a real growth in seafood exports in Nova Scotia. In fact, seafood is now the number one export in Nova Scotia. It accounted for about 29% of our exports last year. There is a huge demand in Asia and other markets for that product.

In the short term, some of that stuff is already happening, and I see a lot of potential in the short term in those sectors.

[Steven MacKinnon, Liberal, Gatineau, QC]

From your perspective, what has been the follow-up? When I say “your perspective”, obviously there are parts of this that don't necessarily overlap with ACOA's mandate, but with the Ivany report I know that was a singular document presented not too long ago. From your perspective, what were the main takeaways for ACOA from it?

[Peter Hogan]

There were a number of things in the Ivany report. A follow-up group was established called the One Nova Scotia Coalition, co-chaired by the premier of Nova Scotia. Really, a couple of areas are already the focus of our work. One was on growing the number of exporters. We know that we had more work to do there and, as I mentioned earlier, there's a lot of potential to grow exporters. There's the ICT sector and the opportunity that affords. Again, I've mentioned it several times so I won't repeat it too much, but it really does offer a lot of potential.

Also in the Ivany report and the One Nova Scotia Coalition is the notion of providing more support in the early years as children grow up in terms of providing them with the right tools and skills so they can contribute to the economy.

Another thing in the Ivany report that Ray Ivany and his fellow commissioners focused on was about the attitude in Nova Scotia that we need to look and see what are the kinds of things we need to change, and how we can collectively take a positive approach to growing the economy.

If I might add as well, tourism was identified in both the Ivany report and the coalition. For example, in that case, a goal has been set to double tourism revenues. As some of you may be aware, it has been a tremendous year so far in Nova Scotia. In fact, in Cape Breton I think tourism is up by 14%.

[The Chair, Liberal, Wayne Easter]

Thank you. You're right on time, Steve.

You had one question, Mr. Ouellette.

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

Thank you very much, Chair.

Could you describe in a little bit more detail the Membertou First Nation? I was really interested in this energy project, this Mi’kmaq Wind Company they have set up. Also, could you could talk about whether you have informed other areas of the country about this success?

[Peter Hogan]

The innovation energy summit is actually taking place next week, on Monday, and I'm participating in it. Part of the intent is to celebrate the success that a number of Mi’kmaq groups in Nova Scotia have had in terms of wind energy. Private sector players will be there as well.

If I may, I might turn to my colleague, Chuck Maillet, to speak to your question about Membertou and some of the other sorts of initiatives we're seeing from Mi'kmaq communities.

[Chuck Maillet, Director General of Regional Operations, Nova Scotia, Atlantic Canada Opportunities Agency]

Thank you very much.

Membertou in Sydney is a fairly robust first nation in terms of their economic development activities, and we've been partnering with them on a number of projects over the years. Last year, with all the first nations communities in Nova Scotia, I believe we probably did somewhere in the range of $1.9 million on various projects and through various forums.

One forum in particular is the Mi'kmaw Economic Benefits Office, which all the first nations communities in Cape Breton work around. It's an organization that we fund to ensure the sharing of best practices, but also to ensure that the first nations communities have the proper skills and labour to take advantage of major projects as they come on board.

That's a very good practice that we're happy with.

[The Chair, Liberal, Wayne Easter]

Thank you. That completes our hearings for the day.

We do have a wee bit of business. It's okay to stay in public session. We met as a subcommittee the other day, so we need to talk about that for a couple of minutes.

I'll thank you, Mr. Hogan and Mr. Maillet, for your presentation. We appreciate your coming to Ottawa, giving your presentation, and answering questions. Thank you very much.

[Peter Hogan]

Thank you very much.

[The Chair, Liberal, Wayne Easter]

In regard to the business, it relates to your letter, Mr. Caron, and I think people have the letter to me from the law clerk. We looked at that as a subcommittee yesterday. The recommendation from the law clerk relating to the sub judice convention was that the document prepared by Procedural Services and the Office of the Law Clerk and Parliamentary Counsel on the sub judice convention not be made public, but that all the other letters be made public.

Is there agreement from the committee to go that way?

[Some hon. members]

Agreed.

[The Chair, Liberal, Wayne Easter]

Agreed?

I think that helps you in terms of the recommendations you were talking about.

Secondly, we need the recommendations for the CRA report tomorrow. If they come in translated, we're okay until tomorrow evening, but if they're not, we need them very early in the morning. Please be aware of that.

The last point I would make is that we need witnesses for the Territories and the Newfoundland and Labrador hearing.

Do you know the date of that?

[The Clerk of the Committee, Ms. Suzie Cadieux]

It's probably October 24.

[The Chair, Liberal, Wayne Easter]

Yes, it's a ways out, but in terms of lining up all our witnesses.... We have a shortage of witnesses. That will be by video conference from here. If people have any names they want to put forward, we're open to them.