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 is 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.
• 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 grants and contributions 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 grants and contributions 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 grants and contributions 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 grants and contributions 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 grants and contributions budget for Quebec

Examples 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.
• ARRI: The project will enable Meloche Group Inc, a major manufacturer of aerostructures and aero-engine components, to adopt environmentally sustainable practices and improve its productivity, notably through the acquisition of digital production equipment. The authorized repayable assistance is $2,900,000.
• CCRF: The $118,192 non-refundable grant will allow the City of Pohénégamook to build an outdoor reception area and install electric charging stations and street furniture.
• TRF: The project aims to develop the tourism offer of Parc nature Éco-Odyssée, which targets adventure tourism and offers tourist accommodation. The $100,000 non-refundable grant will allow the company to adapt its product to the current context and adopt environmentally responsible practices.
• MFESI: The project aims to adapt and enhance the Festival Western de Saint-Tite's product and experience offering. The non-repayable contribution of $3,934,620 will allow for the introduction of virtual programming, the implementation of a new digital marketing strategy and the annualization of certain activities.

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.