Question Period Note: Extension of three recovery initiatives from budget 2021

Extension of three recovery initiatives from budget 2021

• The Canada Community Revitalization Fund, the Tourism relief Fund and the Major Festivals and Events Support Initiative were launched in 2021 to stimulate local economies and help communities, in Quebec and elsewhere in Canada, recover from the effects of the pandemic.
• Canada Economic Development for Quebec Regions is aware that many businesses and organizations are facing challenges in completing their projects by the March 31, 2023 deadline given the current climate of uncertainty.
• Canada Economic Development for Quebec Regions is sensitive to the impact of the pandemic and is currently examining various possibilities.
• CED continues to provide the best possible support to its clients while the Government of Canada examines possible solutions.
• CED will inform its clients promptly if there are any changes to these initiatives regarding their end date.

• The 2021 budget provided nearly $2.2 billion in funding over three years (2021-2022 through 2023-2024) to RDAs to implement five initiatives in their respective jurisdictions to support post-COVID-19 recovery, namely the CCRF, TRF, MFESI, Aerospace Regional Recovery Initiative (ARRI), and the Jobs and Growth Fund (JGF). These initiatives were launched in late June and early July 2021.
• However, the disruptions affecting the Quebec, Canadian and global economies (inflation, dislocation of global supply chains, labour shortages, high demand in construction, changing health context, etc.) are causing an uncertain and difficult business climate, which is delaying investment decisions by companies and communities as well as the completion of projects.
• This is causing delays in the delivery of the CCRF, the TRF and the MFESI, which are normally due to end on March 31, 2023. In fact, several clients (companies and organizations) have informed CED that they will not be able to complete their projects within this time frame. They are therefore reluctant to incur additional expenses (clients with approved projects) or to submit a new funding application (potential clients) if they cannot meet the requirements.

The current economic environment is delaying the delivery of some of the recovery initiatives announced in the 2021 budget and implemented by the regional development agencies (RDAs), including CED in Quebec. This affects the Canada Community Revitalization Fund (CCRF), the Tourism Relief Fund (TRF) and the Major Festivals and Events Support Initiative (MFESI), which are scheduled to end on March 31, 2023. Given the current environment, many clients are concerned that they will not be able to complete their projects on time.