Mr. Speaker, I am pleased to stand in the House today to discuss northern Ontario and specifically the role of FedNor, the regional economic development organization for northern Ontario.
As the Minister of Industry told the members of the Standing Committee on Industry, Science and Technology, our strategy is ”if it ain't broke, don't fix it”.
Our government continues to build a healthy future for northern Ontario and for most economic growth through the delivery of FedNor's northern Ontario development program and the community futures program. It is no secret that FedNor receives broad-based and universal support from mayors, community leaders and other stakeholders in northern Ontario. The reason is simple: it works.
I will now talk about the fine work that FedNor does in northern Ontario through the northern Ontario development program, or NODP.
By hearing more about FedNor's role in northern Ontario, I hope all members will garner a better understanding of how much this organization impacts on the lives of northerners. FedNor does much more than simply fund individual projects in the many communities it serves.
When community partners, leaders and stakeholders identify opportunities for development in northern Ontario, they come to FedNor with these ideas and their proposals. FedNor staff is closely connected to the communities they serve and they know the challenges and needs of those communities.
FedNor works with project proponents to ensure how best to meet their needs. It considers the benefits of specific projects on a local, regional and pan-northern scale, working with partners to maximize the impact of FedNor projects. In short, FedNor takes a truly holistic approach to economic development, funding projects that will collectively strengthen the whole of northern Ontario.
To accomplish this, FedNor focuses on specific sectors or areas of northern Ontario's economy, keeping in mind that each project builds the capacity that is needed to undertake other worthwhile initiatives.
At the same time, FedNor delivers the Government of Canada's agenda in northern Ontario, such as our economic action plan. New initiatives, such as the community adjustment fund, will help us keep the economy of northern Ontario moving.
Canada's economic action plan will have a direct and positive impact on the economy of northern Ontario and FedNor will continue to work closely with northern Ontario communities and industry leaders to ensure that our efforts meet their specific needs.
FedNor supports northern Ontario projects that complement our government's strategy to promote a competitive, knowledge-based nation. In 2007-08, the northern Ontario development program's annual grants and contributions' budget totalled more than $36 million.
I will now illustrate how FedNor is using this budget successfully to grow the northern Ontario economy. First, I will give some background. The northern Ontario development program covers a large geographic area. Northern Ontario represents about 90% of the province's land mass. It stretches from Muskoka to James Bay and from the border of my province of Manitoba to the border of Quebec. This great part of Canada is also home to more than 850,000 people.
The vastness of northern Ontario, given its relatively low population, helps explain some of the challenges, including: geographic isolation from large, urban markets to the south; limited telecommunications and transportation infrastructure; static or declining population; high youth out-migration rates; and a lower than average employment growth. FedNor's northern Ontario development program is working to address these issues and much more.
Specifically, the northern Ontario development program promotes economic growth in northern Ontario through the delivery of contributions funding. Funding is directed primarily to not for profit organizations for projects not eligible for commercial financing and projects that are key to the development of capacity in the north. Program contributions are available to support projects in six areas: community economic development, innovation, information and communications technology, human capital, business financing support, and trade and tourism. FedNor is making a real difference in each of these areas.
In the area of community economic development, FedNor focuses its efforts on strategic planning to enhance business competitiveness and job creation. To help communities deal with the challenges of sudden or severe downturns affecting the local economy, FedNor supports diversification strategies. Never have these types of strategies been more important than they are today during these difficult economic times.
One excellent example is the northern Ontario value-added initiative, or NOVA. This three year initiative is introducing communities affected by the downturn in the forestry sector to new forestry related economic renewal opportunities. NOVA representatives have undertaken a tour of about 200 mills and secondary forestry related operations to introduce this program.
In essence, the project is supporting the development of value-added products and improvements to manufacturing processes as well as providing market access information. In addition to its diversification initiatives, FedNor also promotes regional initiatives that build strong, sustainable communities. One such initiative is the Northern Centre for Advanced Technology, or NORCAT. The Northern Centre for Advanced Technology is one of a cluster of premiere research and development organizations in northern Ontario that our government has supported through FedNor.
With FedNor's help, NORCAT has grown to become a leader in the development and commercialization of new mining technologies. In fact, in April 2008, this government invested $2 million of FedNor funding into NORCAT to construct a state of the art building to house a new incubator facility and centralize NORCAT'S technology development and industrial services. This NORCAT centre will provide the private sector with one-stop access to NORCAT's industrial training and innovation services. It will also bring to the region a new service for small businesses and pre-commercial entrepreneurs.
Once complete, the centre will accommodate up to 22 small and medium size enterprises by providing flexible rental space, access to labs and workshops, as well as business and technology support services. The positive impact of this investment in NORCAT will be felt in northern Ontario for decades to come. It is but one example of the great work FedNor has been able to accomplish under a Conservative government.
Projects like this are building the capacity that northern Ontario needs to diversify its economy. That is community economic development.
To keep moving forward, we must ensure that we have the human capital to support our efforts to build a strong northern Ontario. In that light, FedNor supports other important initiatives that provide northerners with the opportunity to remain in and contribute to their respective communities.
One concrete example is FedNor's successful youth internship program. In the summer of 2006, FedNor celebrated the placement of the program's 1,000th youth intern. Since 2002, FedNor has invested over $35.7 million in youth related projects across northern Ontario. Designed to help post-secondary graduates make the transition from the campus to the workplace, this program provides interns with hands-on experience and an opportunity to find full-time employment in the north. It also helps to stem the tide of youth leaving northern Ontario, which has long been a serious issue in northern Ontario.
We know that only 25% of young people who leave northern Ontario for education or employment opportunities ever return. FedNor is serious about providing opportunities for its best and brightest to ensure they remain and contribute to the future of northern Ontario. As an added benefit, the internship program also provides employment assistance for small businesses and not for profit organizations that are looking to grow.
It is important for the communities and businesses of northern Ontario that FedNor remains flexible and responsive as an organization to benefit the people it serves. As members will hear from my colleagues, FedNor's other areas of focus are also bearing fruit across all of northern Ontario.