Notes for an address by

The Honourable Lynne Yelich
Minister of State for Western Economic Diversification

Check Against Delivery

I welcome the opportunity to appear before this committee and to highlight how our Government, through my department of Western Economic Diversification Canada, is contributing to a stronger economic future for the West, and for all of Canada.

Since 1987, WD has worked “to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program and project development and implementation”. There have been a lot of changes over the 23 years that have passed since that mandate was created – This mandate is just as relevant today. The West remains a distinct region within Canada … one with its own, unique challenges and opportunities that need to be reflected in federal initiatives aimed at strengthening our country’s performance in the knowledge-based economy.

The challenges facing Western Canada currently have evolved from those we faced 23 years ago. While we have accomplished much, it is even more important today than it was in 1987 that Western Canada expand its economy into new areas:  whether that is adding new elements to our world-leading natural resource capabilities or becoming dominant players in sectors of the economy that no one could have dreamed of 25 years ago.

The list of Western Canada’s competitors on a global basis has changed significantly in virtually all sectors. Competitors who were sometimes small in scale and who lacked market presence have in many cases made significant gains in markets that were easily won by western Canadian businesses. These competitors have set extraordinarily high standards in innovation and productivity that western Canadian businesses need not only match but beat if they are to continue to enjoy the successes of the past.

By working to create a more diversified western Canadian economy that has strong, competitive and innovative businesses, WD is building a solid – and more diverse – foundation that will support the West’s economic success over the long term. And, while we are planning for the long term, this past year we also recognized and addressed the immediate challenges posed by global financial circumstances. 

Through the delivery of Canada’s Economic Action Plan, our Government and Western Economic Diversification Canada is responding to short-term economic challenges by creating jobs and growth in Western Canada today that allow people to keep their businesses, find work and remain in their communities during difficult economic times.  

WD is delivering two key components of the Economic Action Plan in the western provinces … the Recreational Infrastructure Canada (RInC) initiative and the Community Adjustment Fund (CAF). The severity of the global economic downturn required a swift and decisive response, and – like the Government as a whole – WD rose to the challenge.

By January 29, 2010, WD had committed 100% of its RinC funding – the almost $153 million provided to the West.  In the short time from program announcement to full commitment of funding, the department defined the terms and conditions, made a call for proposals, analyzed and selected projects, and entered into contribution agreements.

More than 700 projects – recreation centres, arenas, swimming pools, sports fields, parks, rinks, and community centres – have been approved.  Many of them are already being implemented and being completed. These projects are not only building a substantial legacy of recreational infrastructure in western Canadian communities, they have created or maintained more than the equivalent of more than 8,000 person months of employment across the four western provinces to date … and there will be many more in the months ahead.

The results have been similar for the CAF program, which is providing $306 million over two years to support western communities that have experienced significant job losses and lack alternative employment opportunities. All of the funding has now been committed to projects that have already created or maintained more than 17,000 person months of employment in Western Canada’s most vulnerable communities – to date. The 290 approved projects are as diverse as the very communities themselves … from a wood pellet plant in Merritt, to a technology commercialization centre in Lethbridge, to a trades training centre in Saskatoon, and an industrial park business incubator in Morden.
 
Canada’s Economic Action Plan is working and will benefit Western Canada for years to come. But, as important as it is to respond to the needs of today, we must also continue to build the jobs and industries for the future. That is why we were pleased to see Budget 2010 acknowledge the major role that Canada’s regional development agencies – including WD – play in building that future by supporting jobs, growth and innovation within a context that is unique in each of Canada’s diverse regions.

The impact of Budget 2010 was considerable for my department.  Ever since its creation, a significant component of WD’s funding had to be renewed every few years making it difficult to plan for the medium and long term and causing hardship for our external stakeholders and partners. Budget 2010 removed this uncertainty by making this component of WD funding pemanent… allowing us to continue to focus our support on initiatives that will drive the West’s long term success by:

• expanding the West’s knowledge-based economy by investing in innovation and technology commercialization … the foundation for economic diversification

• creating trade and investment opportunities that help western Canadian businesses expand into international markets and attract foreign investment … driving the region’s future prosperity,

• and enhancing the productivity and competitiveness of western small- and medium-sized businesses … key components of long term economic growth and an increased standard of living for Canadians.

Budget 2010 also maintains ongoing funding for Community Futures organizations across the country.  The 90 CFs in Western Canada – members of WD’s Business Service Network – have a history of working with WD and other partners to enhance business and community economic development outside the West’s major urban areas. 

WD is grateful for the strong support our Government has shown for our role in enhancing the West’s contribution to our nation’s success, and we are determined to take that contribution to the next level.

WD’s Report on Plans and Priorities for 2010-2011 brings the department’s efforts together under a single strategic outcome – the western Canadian economy is developed and diversified. Underlying that strategic outcome are program activities that encourage business development, innovation and community economic development … supported by the department's leadership and coordination role in furthering western interests and responding to western challenges.

WD recognizes that households across the country have adjusted their budgets in response to the new economic realities, and so must we. We are redoubling our efforts to improve the department’s efficiency, ensuring that the investment of taxpayers’ dollars results in maximum benefits for the people and the western Canadian economy.

WD is proud of the way it is creating and maintaining jobs today, while building a stronger western economy that will continue to create new jobs in the future. We’re looking forward to completing the work begun last year on Canada’s Economic Action Plan, and to working closely with the western provinces, industry associations, businesses and other stakeholders to leverage the opportunities that will see Western Canada reach new levels of success in the global economy.

By working together with our partners to create more innovative and more successful business and communities, we are building a stronger West for a stronger Canada.

I welcome your comments and questions.

Thank you.