Question Period Note: Budget 2022

Budget 2022

• The 2022 Budget will invest in the green transition, productivity and innovation, among other things, which are essential for economic development.
• Promising sectors for the Quebec economy, such as clean technologies and critical minerals, will receive significant support.
• Canada Economic Development for Quebec Regions will continue to be a key player in the development of Quebec's businesses and regions, notably through its recovery initiatives already in place.

The 2022 Budget aims to foster growth by focusing on:
1) social policies (immigration, housing, childcare, skills);
2) transition to a green economy (national pollution award, Canada Growth Fund); and
3) productivity and innovation (innovation and investment agency, small business development, intellectual property development and transformation).

Only one measure directly targets CED:
Montreal office of the International Sustainability Standards Board (ISSB)

• 8 million over three years to support the start-up of the Montreal office of this international organization responsible for developing global sustainability standards to improve the quality and comparability of international corporate reporting on environmental, social and governance (ESG) factors. This funding will be provided by CED through Montreal International.

Among several measures of interest to CED, either in the sphere of economic development or in relation to its mandate, are

World-Leading Canada Growth Fund

• 15 billion over five years: this independent entity will aim to accelerate private capital investment in decarbonization and clean technology projects, facilitate the achievement of Canada's climate goals, and strengthen Canada's resilience (supply chains) and economic capacity.

Canada Innovation and Investment Agency

• 1 billion over five years: This new independent federal agency will work with Canadian industries and businesses to help them invest in R&D and the adoption of new technologies to innovate, grow, create jobs and compete in a changing global economy. It will also promote innovation and growth in the defence sector and stimulate investment in defence manufacturing in Canada. *Details to come in the 2022 Economic and Budget Update.

Canada's Critical Minerals Strategies

• 3.8 billion over eight years: to implement Canada's first critical minerals strategy, including $1.5 billion over seven years for infrastructure investments that will support the development of critical minerals supply chains, with a focus on priority deposits.
• 1 billion over six years: in targeted assistance to critical minerals projects, with priority given to manufacturing, processing and recycling applications under the Strategic Innovation Fund of Innovation, Science and Economic Development Canada.

*Critical minerals encompass several new critical mineral and metal technologies, including cobalt, copper, precious metals, nickel, uranium, lithium, magnesium and many others.

Effective Government
It was announced that two reviews will take place:

• i) review of previously announced spending plans, with a view to reducing the pace and scale of spending (up to $3 billion over the next four years);
• ii) a comprehensive review of strategic policies, including an assessment of the effectiveness of programs in achieving the government's priorities.

The 2022 federal budget was tabled on April 7, 2022. Here are the implications for Canada Economic Development for Quebec Regions (CED).