Finance Committee on Sept. 22nd, 2016

[Paul Lefebvre, Liberal, Sudbury, ON]

Of this $31.5 million—that's what you get on an annual basis—how much is already provided for programs that are funded by FedNor on an annual basis? How much is left to give out to some of the applications?

[Aime J. Dimatteo]

We probably do the majority of our business in multi-year projects. It's not just a single project for a short period of time. We'll approve a project that may have a two-year or three-year span, and we'll see commitments being made into next year.

I would say to you that probably FedNor has entered each fiscal year with at least 75% of its budget already committed toward existing approved projects, leaving 25% for us to entertain new applications throughout the fiscal year.

[Paul Lefebvre, Liberal, Sudbury, ON]

You talked to us a lot about the collaborations between the province and FedNor. As you're more than aware, the Province of Ontario has the Northern Ontario Heritage Fund, which is funded to the amount of $100 million. Is that correct?

[Aime J. Dimatteo]

That is correct, sir.

[Paul Lefebvre, Liberal, Sudbury, ON]

In your collaborations, from what I understand, people apply to NOHFC, as it's called, and they apply to FedNor at the same time. Is that correct?

[Aime J. Dimatteo]

That's correct. We do a lot of deals with the Province of Ontario through the Northern Ontario Heritage Fund Corporation. For the members, it is my, if you will, sister organization provincially that covers the same jurisdiction and has predominantly the same mandate as FedNor. We find ourselves receiving the same types of applications from the constituency we both serve.

[The Chair, Liberal, Wayne Easter]

This will be your last question.

[Paul Lefebvre, Liberal, Sudbury, ON]

Thank you.

Given the funding that you have of $31.5 million, and the amount of $100 million, are there certain projects that may not go forward because they have to rely on the matching funds, some from the province and some from the feds as well?

[Aime J. Dimatteo]

Yes, there are projects that unfortunately do not get funded by FedNor, which results in us looking for other sources of funding for these applicants, and in some cases, those applicants have to put their projects on hold, waiting to perhaps reapply while they're searching out other sources of funding.

[Paul Lefebvre, Liberal, Sudbury, ON]

Thank you, Mr. Chair.

[The Chair, Liberal, Wayne Easter]

Just so I'm clear on one point you raised, for the infrastructure that you talked about that you fund, do you deliver infrastructure funds that are funded out of another portfolio or file other than FedNor, or is it FedNor money that's going into that infrastructure program?

[Aime J. Dimatteo]

It is a combination of both, sir. FedNor, out of its own fund, its NODP funding, provides funds for infrastructure financing.

We will, on behalf of the federal government, with all of my colleague regional government agencies across the country, deliver infrastructure programming for the government when they ask us to do so.

[The Chair, Liberal, Wayne Easter]

That's a mix across the country now. ACOA no longer does that in Atlantic Canada.

Mr. Aboultaif.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

I'm happy to hear you and I read your report. It's the first bright spot in the last couple of days with our economies across the country.

The first question that comes mind is, what is the unemployment rate in your region?

[Aime J. Dimatteo]

We have what I would term three regions in northern Ontario: northeast, northwest, and the far north. It will vary, but I would suggest it would be between 8% and 11%.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

In your report, everything seems to be working, and future plans and mid-term plans are in place. One thing you mentioned is that you have a lack of population, or that you would rather have more people up there. How is this going to be justified with the rate of unemployment you have there, and how are you going to employ that to make the economy better?

[Aime J. Dimatteo]

Unemployment, attracting and keeping residents in northern Ontario, and keeping our youth in northern Ontario are extremely important to us. That's why I mentioned earlier about the growing aboriginal population and our need to work with them to ensure they are well educated and they are provided the skills and opportunities to take on the jobs in the future in northern Ontario.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

What role can the federal government play in order to assist you to reach your goal? How much of an investment do you think is needed from the government in order to be able to reach the mid- and long-term goals that you have?

[Aime J. Dimatteo]

Certainly the government continues to invest in FedNor. In that regard, we are pleased with the resources that are being provided to FedNor for the purposes of carrying out the mandate, of course, in line with the government's priorities. We are always looking for opportunities for growth.

Earlier, we listened to a witness talk about the opportunity to accomplish more if more resources were provided to that organization, and I would say it's similar for FedNor. Having said that, that's why it's so important, in the absence.... I'd like to have more money, but in the absence of that, it's important for me to be able to work very co-operatively and collaboratively with all the other programs that are available, both federally and provincially, to ensure that a good idea in northern Ontario doesn't go unmet.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

How much collaboration is there with southern Ontario, which is basically where the main heart of the economy of Ontario is, and the northern part, which is your area? How much can you count on development and collaboration in the southern part of the province?

[Aime J. Dimatteo]

We work quite closely with FedDev on a number of fronts, as we do now with all of our regional development agencies across the country, but in particular to the FedDev, we are the province of Ontario, and so there are joint opportunities that materialize. I talked earlier about the forestry industry and looking at trying to develop a bioeconomy. We are doing so with the help of FedDev, which has expertise in these kinds of areas. We do work collaboratively just by exchanging information on a regular basis.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

I have one more question, my final question. The oil downturn, the energy pricing, altogether that basically affected the overall Canadian economy. How much were you affected by that increase in energy costs in Ontario at large?

[Aime J. Dimatteo]

As I said earlier, energy costs are a big concern and a challenge in northern Ontario given that the industries that generally represent the economy of northern Ontario are highly dependent on energy. In that regard, we're very pleased with the Province of Ontario's programming in terms of trying to reduce the costs for those, what I'll term, “heavy users”, plus recent announcements made by the Province of Ontario looking at doing some more work in terms of trying to bring electricity costs down. The lower the cost, the more a business has the opportunity to take that money and reinvest it in other opportunities and grow their business.

[The Chair, Liberal, Wayne Easter]

Thank you both.

We turn to Mr. Angus for five minutes.

Welcome to the finance committee, Charlie.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you, Mr. Easter. When I was a young lad and I was first elected, you were on my first committee, so I feel like I've come full circle in my career.

I'd like to thank you, FedNor, for being here. You play an extraordinarily important role in our region. I'd like to thank you at the beginning for the amazing work FedNor has done in the promotion of our regional mining innovation, small business at the PDAC conference. I remember going to PDAC when northern Ontario was, as my grandfather would say, down in the cellar behind the axe. We have the best location and the biggest international mining festival in the world, and FedNor plays a huge part. I want to thank you for that.

I note that since 2010, FedNor has supported $3.8 million in broadband funding, in rural broadband. For economic development in our region, without rural broadband we'd have no ability to compete. But I have all these letters from FedNor to various rural broadband agencies this year, since the new government came in, saying that unfortunately, the demand currently exceeds available funding and FedNor will not be able to support their broadband projects. Is that a result of not having enough funding or a decision to stop funding rural broadband through FedNor?