Question Period Note: Economic recovery in Quebec following the COVID-19 pandemic

Economic recovery in Quebec following the COVID-19 pandemic

• Canada Economic Development for Quebec Regions is actively involved in the Government of Canada’s efforts to support businesses in their recovery and long-term prosperity.
• In addition to its regular programs, Canada Economic Development for Quebec Regions has implemented 5 temporary initiatives, for a total of over 542 million dollars in funding, to help Quebec businesses come out of the pandemic stronger than ever.
• Canada Economic Development for Quebec Regions supports sectors that have been hard hit by the pandemic, such as aerospace, tourism and major festival sectors.
  Supplementary response:
• CED supports communities across Quebec who want to enhance their vitality and contribute to social and economic cohesion.
• Through both its temporary initiatives and regular programs, CED is contributing to a greener, more inclusive recovery and helping ensure that we build back better from the pandemic.

Recovery initiatives announced in Budget 2021 and implemented by CED:
Jobs and Growth Fund (JGF):
* Aims to help businesses, and the organizations that support them, build resilience and grow.
* $135.8 million budget for Quebec.
Aerospace Regional Recovery Initiative (ARRI):
* Aims to help the aerospace industry, and SMEs in particular, emerge from the pandemic with the ability to compete on the world stage.
* $89.7 million budget for Quebec.
Canada Community Revitalization Fund (CCRF):
* Aims to help communities rebound from the effects of the pandemic through projects that involve adding community, cultural and sports facilities and public spaces, or upgrading existing infrastructure.
* $101.7 million budget for Quebec.
Tourism Relief Fund (TRF):
* Aims to help tourism businesses and organizations overcome the impacts of the pandemic and position themselves going forward.
* $115.1 million budget for Quebec.
Major Festivals and Events Support Initiative (MFESI):
* Aims to help tourism businesses and organizations overcome the impacts of the pandemic and position themselves going forward.
Targets festivals or events with $10 million in revenue in 2017, 2018 or 2019.
* The following festivals and events are eligible under the MFESI:
* Osheaga,
* Carnaval de Québec,
* FrancoFolies de Montréal,
* Festival Western de Ste-Tite,
* Festival d’été international de Québec,
* Montreal International Jazz Festival,
* Just for Laughs,
* ComediHa! Fest-Québec,
** National Bank Open (Rogers Cup Montréal – Tennis Canada).
* $100 million budget for Quebec.
Example of a project supported by the recovery initiatives:
* JGF: CED awarded a $2,250,000 repayable contribution to Innomalt Inc., a Bécancour malting plant that specializes in the production of high-quality, pesticide-free organic malt. CED’s assistance will serve to fund the acquisition and installation of equipment to ensure the business’s growth. The equipment will use heat recovery technology for drying ovens and in the general process system, which will lead to a reduction in natural gas consumption. The company will also use clean water technology to allow water to be reused in the production process. Besides contributing to the transition to a green economy, the project will help develop and strengthen the agri-food industrial sector, considered strategic at the national level.
Examples of potential recovery initiative projects include:
* ARRI: The initiative could support a business that plans to produce and market a lighter, more fuel-efficient jet engines. The assistance could be used to set up a new advanced manufacturing chain, and for international marketing activities.
* CCRF: The funding could, for example, be used to support a municipality with a population of 60,000 that plans to transform a vacant lot at the edge of its downtown core into a community garden with a solar-powered greenhouse.
* TRF: The initiative could, for example, support a winery association that develops itineraries/routes using interactive tools that allow visitors to explore a wine region on their own, thus encouraging them to stay longer and spend more money by visiting towns and villages along the way, and further establishing the region's reputation as a culinary destination.
* Major Festivals and Events Support Initiative (MFESI): The initiative could, for example, help a major, internationally renowned festival develop new activities to provide its visitors with immersive experiences that use new technologies.

CED is actively contributing to COVID-19 economic recovery measures in Quebec. Through recovery initiatives announced in Budget 2021, CED supports non-profit businesses and organizations, with a specific focus on the hardest‑hit sectors, such as tourism.