Question Period Note: RURAL ECONOMIC DEVELOPMENT STRATEGY

Overview of the commitment to create a rural development strategy to spur economic growth and create good middle class jobs in rural Canada.

• Our Government recognizes the importance of rural communities to our economy and is committed to helping them realize their full potential.

• The Rural Economic Development Strategy was developed with input from rural communities to address their priorities and unique needs.

• The Strategy will serve as a roadmap to guide further work in priority areas such as broadband connectivity, housing access and affordability, community infrastructure, and attracting and retaining labour.

• Rural and northern communities face unique and diverse infrastructure pressures.

• Following extensive consultations, a national Rural Economic Development Strategy was launched in June 2019, along with Canada’s Connectivity Strategy.

• The $187 billion Investing in Canada plan includes funding delivered through 14 federal departments and agencies based on mandated roles. The plan includes funding announced in Budgets 2016 and 2017, as well as ongoing legacy programs including the Gas Tax Fund.

• Infrastructure Canada, for its part, coordinates overall delivery and reporting of the plan.

• One funding stream under the plan is specifically designated to meet the infrastructure needs of rural and northern communities: the $2.4 billion Rural and Northern stream.

• This stream supports public infrastructure projects that:

  • improve broadband connectivity;
  • improve food security;
  • provide more reliable road, air, and/or marine infrastructure;
  • provide more efficient or reliable energy; and
  • improve education and/or health facilities for Indigenous communities.

• The stream also includes the Arctic Energy Fund, which supports energy security and off-diesel projects in territorial communities.

• Broadband connectivity is an increasing prerequisite for economic development, enhanced public safety and improved social benefits in rural and remote areas. In 2018, the Canadian Radio and Telecommunications Commission (CRTC) target of 50 Mbps download, 10 Mbps upload, and unlimited data transfer capacity, was available to 98% of the population in urban areas, but to just 41% of the population in rural areas.

• Budget 2019 allocated $1 billion for the new Universal Broadband Fund, and also provided a top-up to the Connect to Innovate Program, and funding to secure low-Earth orbit satellite capacity.

• Federal support to address broadband infrastructure gaps in Canada is also available through a variety of sources:

  • the Connect to Innovate program, which is now fully subscribed;
  • the CRTC’s $750 million Broadband Fund; and
  • the Rural and Northern Infrastructure Stream.

• The Canada Infrastructure Bank will also consider projects where it can apply innovative financing and advisory tools to stimulate private sector investment in high speed internet infrastructure in unserved and underserved communities across Canada.

• A number of other horizontal federal initiatives support economic development across Canada, including the regional growth strategies, such as the Atlantic Growth Strategy, of the six federal Regional Development Agencies; and the Arctic and Northern Policy Framework.

• The Government of Canada remains committed to working with rural, remote and Indigenous communities and providing investments that will grow local economies, improve social inclusiveness and safeguard the health and environment of these communities.

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