Industry Committee on April 19th, 2016

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Do you have a lot of response?

[Daphne Meredith]

We did one intake last summer, as one example, and we received well over 2,000 applications, which covered the territory. Then it's a question of which are the best projects, if you were to look at ridings, for example, that cover the whole region. There are lots to choose from.

[The Chair, Liberal, Dan Ruimy]

Mr. Mongeau, you have 30 seconds.

[Pierre-Marc Mongeau]

Thank you, Mr. Chair.

Let me just quickly go back to one issue. In my presentation, I mentioned that we were carrying out an extensive consultation exercise with the regions, businesses, universities, municipalities and indigenous groups. We truly want to know what the various players expect from the CED, in preparation for our next five-year plan from 2016 to 2021. That is currently under way.

[The Chair, Liberal, Dan Ruimy]

We're going to go to Mr. Arya.

You have seven minutes.

[Chandra Arya, Liberal, Nepean, ON]

Thank you, Mr. Chair.

My question is for all three agencies.

I would like to know whether you support new manufacturing companies. Specifically, suppose an entrepreneur enters your office with a business plan to set up a new small manufacturing company. Do you have programs to support them?

[Denise Frenette]

From ACOA's perspective, our programs allow us to support businesses at every stage in their life cycle. We do support the start-up of companies. We do it through primarily the business development program.

If, for example, it was a start-up company that wanted to undertake a significant innovation project, depending on the project, we would have the option of using either the business development program or the Atlantic innovation fund.

[Chandra Arya, Liberal, Nepean, ON]

No, I'm specifically saying the entrepreneur comes in with a business plan to start manufacturing a product with a commercially proven technology.

[Denise Frenette]

Okay. Then we would use the business development program for that.

[Chandra Arya, Liberal, Nepean, ON]

Approximately how many small manufacturing companies have you assisted during 2014-15 and 2015-16?

[Denise Frenette]

I don't know that I have the answer for you today, but I can provide it, certainly.

[Chandra Arya, Liberal, Nepean, ON]

That's fine. You can always send it.

And CED, please?

[Pierre-Marc Mongeau]

We pretty much have the same types of programs. We support start-ups, companies that have already proven their technological abilities and have already done work in research and development. If the projects are interesting, we are going to support them. Our assistance is not for product development, the basics, if you will. However, once the product has been developed, we may contribute to setting up the plant.

[Chandra Arya, Liberal, Nepean, ON]

I'm sorry, I'm a bit confused.

Mr. Chair, once again my question was about an entrepreneur who comes in with a business plan to set up a manufacturing company—say he wants to manufacture the pen I'm holding—and he has brought his equity. Do you have programs to support that?

[Pierre-Marc Mongeau]

I would be very pleased if those kinds of companies came to meet with us. Some have done so before and we are currently supporting them.

[Chandra Arya, Liberal, Nepean, ON]

Do you have an approximate number of the new manufacturing companies you've supported during the last two years?

[Pierre-Marc Mongeau]

I will have to give you the same answer as my colleague: I don’t have all the data here. However, a lot of high-tech companies also come to us. We could forward that information to the committee later, if it so wishes.

[The Chair, Liberal, Dan Ruimy]

It would be good if you could provide those figures to the clerk, so that we can have an answer to that question.

Thank you.

Ms. Meredith.

[Daphne Meredith]

Yes. In our case, unless that company were innovating in some way through a new process or a new product—you're saying it depends on our new product—we would not support them directly. We would be inclined to suggest other means of support, but we would not provide direct financial support.

[Chandra Arya, Liberal, Nepean, ON]

In that case, you partner with other federal and provincial agencies. Which federal agency or any other agency can this entrepreneur go to to obtain support?

[Daphne Meredith]

If they're looking for a business loan, it would be the Business Development Bank of Canada, or other financial institutions.

If they're looking to check their business plan to see if it's good and whether any other support from other agencies is available. we have our Canada business network offices. We partner with the provinces on those, so we would direct them to that office to get advice on other avenues of support.

If they're living in a rural area or if it's a woman-led business, for example, we have the women's entrepreneurship fund that could help them or—

[Chandra Arya, Liberal, Nepean, ON]

If you could kindly send the number of existing manufacturing companies you have supported, that would be great.

Once again for all three, what are the manufacturing industries of the future you see in your region?

[The Chair, Liberal, Dan Ruimy]

Anybody can jump in.

[Daphne Meredith]

One of the exciting clusters in western Canada, and it's very strong in British Columbia as well as Manitoba in particular, is composite material manufacturing. It's an area we've invested in. In Manitoba, for example, we have facilities that test the strength of hemp and other materials, fibres that can be used in aerospace. And there's a lot of activity on—

[Chandra Arya, Liberal, Nepean, ON]

You said there's a cluster? That's quite interesting.