Question Period Note: Taux de perte globale de Développement économique Canada pour les régions du Québec

Overall loss rate for Canada Economic Development for Quebec Regions

• Canada Economic Development for Quebec Regions manages public funds prudently and rigorously, in accordance with its standards, policies and procedures.
• The media recently reported an estimated loss of 22.3%. This is in fact an accounting provision presented in the Public Accounts of Canada for 2022-2023.
• Historically, Canada Economic Development for Quebec Regions has recorded an overall loss rate of around 10% on funding granted under its regular programs.
• Canada Economic Development for Quebec Regions continues to work with Quebec SMEs to support the Quebec economy.

As a precaution, a provision for doubtful accounts of 22.3% appears in the public accounts not as a result, but rather as a forecast based on accounting standards. In this way, uncollectible receivables are not underestimated by the individual reading the financial statements. It in no way indicates the Agency's loss rate, which has historically been around 10% for all grants and contributions programs under the responsibility of Canada Economic Development for Quebec Regions.

• The pandemic has hit Quebec's economy hard. Canada Economic Development for Quebec Regions mobilized to help Quebec businesses cope with the economic repercussions. This support included the Regional Recovery and Assistance Fund, under which Canada Economic Development for Quebec Regions provided emergency support to small and medium-sized enterprises to help them stay operational.
• Canada Economic Development for Quebec Regions provides support and follow-up to all companies whose agreements are still active. In addition, a series of flexible repayment terms have been introduced for 2023 to ease the financial burden of the hardest-hit companies.
• Canada Economic Development for the regions of Quebec objective is to remain attentive to the needs of Quebec SMEs in order to ensure their long-term survival in an economic context that remains uncertain.

An article from the Journal de Montréal published on January 15, 2024 mentions the provision rate for doubtful accounts of 22.3% established in the Public Accounts of Canada for 2022-2023 for Canada Economic Development for Quebec regions in 2022-2023. This percentage could imply that Canada Economic Development for Quebec Regions expects to lose 22.3% of the amounts granted, which is not the case, as historically, the loss rate is around 10%.