Question Period Note: CED support for regions with slow economic growth

CED support for regions with slow economic growth

• Canada Economic Development for Quebec Regions is committed to the development of all regions of Quebec, particularly those with slower economic growth.
• Canada Economic Development for Quebec Regions adapts to the reality of these communities and actively works with local economic stakeholders in order to support structuring projects.
• Since April 2020, Canada Economic Development for Quebec Regions has authorized assistance totaling more than 700 million dollars in slow-growth regions, thus contributing to the diversification of these areas.

Canada Economic Development for Quebec Regions is sensitive to the economic reality of regions with slow growth and pays great attention to projects from these communities, especially by allowing a certain flexibility in its programming.

CED is granting Quebec's most economically vulnerable RCMs new flexibilities in program conditions to help them develop their economic assets and thus contribute to more inclusive economic growth that benefits all Quebec communities.

• CED adapts its interventions to the economic reality of regions of Quebec.
• To achieve this, CED adopted a tool, the Economic Development Index (EDI), which allows it to rank the 104 regional county municipalities (RCMs) of Quebec according to their economic growth potential. Also, for RCMs with slower economic growth potential, CED applies more flexible intervention parameters.
• The factors influencing the economic growth potential of each region are thus taken into account, including the workforce, access to markets, the entrepreneurial pool, industrial diversification, demographic growth, investments and the education of the population.
• Since April 1, 2023, following a revision of its economic development index, CED now assesses at 75 the number of RCMs with slow economic growth potential.
• Here are a few examples demonstrating CED's flexibility in terms of programming when a project is carried out in one of the 75 RCMs with slow economic growth potential:
Aid rate:
- Usually, the maximum CED assistance rate is 50% for SME projects aimed at purchasing equipment, expanding existing buildings or hiring specialized resources. In the 75 RCMs with slow growth potential, it can rise to 75% for costs related to fixed assets, when justified, and up to 90% for costs related to the hiring of specialized resources.
Eligible project or costs in the 75 RCMs with slow potential, only:
- Construction of a new building (including the expansion or enlargement of existing buildings), for manufacturing SMEs;
- Projects in tourist accommodation targeting establishments with less than three stars or targeting glamping or ready-to-camp units;
- Primary transformation projects in the agri-food and fisheries sectors under certain conditions.
• On August 6, 2024, CED announced the deployment of a new funding approach in Quebec's eight most economically vulnerable RCMs.
These eight RCMs are :
1. Kativik Regional Administration
2. Avignon RCM
3. La Haute-Gaspésie RCM
4. La Tuque RCM
5. La Vallée-de-la-Gatineau RCM
6. Golfe-du-Saint-Laurent RCM
7. Rocher-Percé RCM
8. MRC Pontiac

These eight RCMs now benefit from additional flexibilities in CED's program conditions, enabling us to broaden the types of support offered to SMEs and NPOs, while tailoring our support to the specific economic challenges of each RCM. This temporary three-year initiative (2024/2027) will help these RCMs to bring to fruition promising business and organizational projects that will create local economic benefits and enhance their long-term economic development potential. Since April 1, 2024, Canada Economic Development has approved 49 projects representing a total of $12.5 million in assistance in these RCMs.

The measures target business development, community vitality, tourism, agri-food, fisheries, forestry and mining.

Canada Economic Development for Quebec Regions (CED) pays special attention to communities facing economic and structural challenges, in accordance with its founding legislation. Through its programming, CED has given itself the flexibility it needs to support regions experiencing slow economic growth more effectively, with particular attention to the most vulnerable regions. Backed by its presence throughout Quebec and in-depth knowledge of the regions, CED tailors its interventions to their specific needs, building on their strengths and assets, and supporting their efforts to diversify their economies so that they can develop their full potential.