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 carrying out their projects due to the exceptional circumstances currently affecting our economy.

• In order to allow its clients to complete their project, Canada Economic Development for Quebec Regions is extending these three initiatives until March 31, 2024.

• CED quickly informed its clients of the one-year extension of these three initiatives.

• CED works closely with the Government of Quebec to facilitate the process of obtaining the required provincial approvals for organizations that are subject to them.

• CED listens to organizations, businesses and communities that continue to be affected by the repercussions of the pandemic.  

• 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.

• In response to the government's decisions to extend these initiatives, the Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec has extended the CCRF, the TRF and the MFESI by one year, i.e. until March 31, 2024.

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 Canada Economic Development for Quebec Regions (CED). This affects the Canada Community Revitalization Fund (CCRF), the Tourism Relief Fund (TRF) and the Major Festivals and Events Support Initiative (MFESI), which were 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. The government has allowed RDAs to extend these initiatives for one year, until March 31, 2024. In Quebec, organizations subject to Executive Council Act (M-30) must obtain approval from the Quebec government before accepting CED's offer of an extension.