Industry Committee on Nov. 30th, 2009

[Guy McKenzie]

Yes, CANtex is one of the programs we manage.

[Robert Vincent, Bloc, Shefford, QC]

I have heard that this program will be terminated in 2010. Is that correct?

[Manon Brassard, Vice-President, Operations, Economic Development Agency of Canada for the Regions of Quebec]

We manage the program, but it belongs to Industry Canada.

[Robert Vincent, Bloc, Shefford, QC]

I see. But your agency manages it?

Did you know that it is going to be terminated in 2010?

[Manon Brassard]

The program authorities end in 2010. As to whether or not the program will be renewed, that is a question for Industry Canada.

[Robert Vincent, Bloc, Shefford, QC]

At this point, do you know whether the program will be renewed? Representatives of several industries have told me the program should be maintained, but it has been announced that it will be terminated in March of 2010.

So I'd like to know whether it will be renewed in March of 2010 or whether it will be terminated.

[Guy McKenzie]

Since we are not responsible for the program authority, and are only managing it for another department, unfortunately, we are unable to answer that question.

You will have to ask Industry Canada about this; it's a program aimed at the textile industry. The program authority will end at the end of the fiscal year.

[Robert Vincent, Bloc, Shefford, QC]

We're talking about infrastructure, and we know the Conservative government has set aside a lot of money for infrastructure, to spend it as it sees fit.

Are you familiar with government expenditures in that area?

[Guy McKenzie]

What program are you referring to, Mr. Vincent?

[Robert Vincent, Bloc, Shefford, QC]

I am not referring to any program in particular; I am talking about the infrastructure program set up by the government to spend this money as it sees fit. Are you not aware of it? I see.

You were saying earlier that an extra $10 million has been allocated for recreation. Can you tell me more about that $10 million? How will it be spent? There is also $48 million for bridge restoration. In what areas will that money be needed and what to you intend to do with it?

[Guy McKenzie]

The $10.8 million amount will be distributed as follows: $6 million for the Shannon treatment plant, $3.75 million for the Physical Education and Sport Centre…

[Robert Vincent, Bloc, Shefford, QC]

Where, in what city?

[Guy McKenzie]

In Quebec City.

[Robert Vincent, Bloc, Shefford, QC]

Thank you.

[Guy McKenzie]

We received $966,000 in operating expenditures for the Recreational Infrastructure Canada Program. We also benefited from a transfer of $120,000 from two departments—DFAIT and Industry Canada. They provided $60,000 each towards the organization of the World Conference on Information Technology, which will take place in 2012. The idea was to facilitate access to funding by the beneficiaries. This is an international conference dealing with information technology. Rather than having three departments involved, only one department will be responsible for managing this. As a result, we received two $60,000 transfers; that's it. That is what the $10.8 million includes.

[Robert Vincent, Bloc, Shefford, QC]

Is the conference on technology and information?

[Guy McKenzie]

No, on information technology.

[Robert Vincent, Bloc, Shefford, QC]

With the new budgets, what SME projects will be coming onstream soon?

[Guy McKenzie]

That is happening all the time. The total budget for CED is $446 million. There are two funds—one for CAF and one for RInC. The vast majority of the funding will benefit businesses, non-profit organizations or communities who need the money. A large majority of our clients are businesses which receive refundable loans.

[Robert Vincent, Bloc, Shefford, QC]

As a result of the economic slowdown, has there been an increase in demand?

[Guy McKenzie]

I must say that, under the Economic Action Plan, we have had a significant number of applications. We could provide additional detail in that regard. This has certainly stimulated the economy in terms of job creation, at least temporarily, while the economy is recovering.

[Robert Vincent, Bloc, Shefford, QC]

I read your brief and noticed that, as far as your agency is concerned, there has not been a lot of job creation. Indeed, on every page I looked at, there was always a gap. For example, it says that you had expected there would be 22 but, in actual fact, there are only 20. That means there is a discrepancy of 2.

You had made provision for human resources, but you didn't use them all. Why is that?

[Guy McKenzie]

The jobs created under the Community Adjustment Fund are relatively significant, and the numbers are increasing as applications come in.

On November 29, we had identified 9,837 jobs created in Quebec, and 1,741 jobs maintained, as a result of our agreements. This funding was intended as economic stimulus, in order to create jobs. Those are the most recent figures for that program, whereas for the Recreational Infrastructure Canada Program, job numbers are not yet available.

[Robert Vincent, Bloc, Shefford, QC]

You talked about slow economic growth in relation to RInC. How was that growth sustained or increased as a result of your investments?

[Guy McKenzie]

Your question relates to the Recreational Infrastructure Canada Program, I believe. Let's look at what exactly was invested. The Department invested $113.2 million under that program. The province will be putting in an additional $111.2 million. The municipalities, school boards and other recipients will be putting in $166.8 million, and there will be $2 million from the first nations.

Based on our $113 million contribution, our net impact on the ground, when the program ends in March of 2011, will amount to $480 million, although I imagine that the final amount will be very close to $500 million.