2025 Committee of the Whole - Background for Minister
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Section 1: Overview
Section 2: Question Period cards
2025-2026 Main estimates - PacifiCan
Issue/question
What funding is PacifiCan seeking through the 2025–26 Main Estimates?
Suggested response
- PacifiCan is the dedicated federal economic development agency for British Columbians.
- Its mandate is to support the growth and diversification of British Columbia’s economy and advance the interests of the region in national economic policy, program and projects.
- The total funding sought by PacifiCan in the 2025-26 Main Estimates is $140.3 million.
Reactive: If asked for changes in funding sought from 2024-25
- The amount ($140.3 million) represents a net increase of $19.5 million from the 2024-25 Main Estimates. This is due to increases in funding for temporary programs of $20.3 million, and a decrease in operating costs of $0.8 million.
Background
- Main Estimates are established through the Annual Reference Level Update exercise. This provides the department with cash requirements for the fiscal year.
- Total funding sought ($140.3 million) includes:
- o Vote 1 – Operating: $27.6 million.
- o Vote 5 – Grants and Contributions: $109.6 million (detailed breakdown below).
- o Statutory payment for Employee Benefits Plans that does not require parliamentary approval: $3.1 million.
The total Grants and Contributions ($109.6 million) consist of:
- $81.6 million for core economic development programs:
- The Community Economic Development and Diversification program, which supports projects that build on local assets, knowledge and economic opportunities to create prosperous and resilient communities.
- The Regional Economic Growth through Innovation programs, which support innovation ecosystems and businesses to innovate, scale up and export. (This is the ongoing funding as distinct from the one-time top up in temporary funding).
- The Pacific Business Services Network program, which funds a network of organizations (e.g., Community Futures offices, Women’s Enterprises Society of BC, Société de développement économique de la C.-B.) that support local entrepreneurship across the province or in specific demographics.
- $28 million for temporary economic development programs:
- A one-time top-up to the Regional Economic Growth Through Innovation programs.
- The Regional Artificial Intelligence Initiative in British Columbia, which helps businesses commercialize and adopt AI technologies. The program was announced in fall 2024, PacifiCan is delivering $30.7 million over five years.
- The Tourism Growth Program in British Columbia, which helps small and medium-sized businesses, not-for-profit organizations, and communities, including Indigenous communities, develop local tourism attractions and experiences. The program was announced in fall 2023. Pacifican is delivering $13.4 million over three years.
- The Regional Homebuilding Innovation Initiative, which supports local innovative housing solutions across British Columbia. The initiative was announced in fall 2024, PacifiCan is delivering $6.9 million over two years.
- The Lytton Homeowner Resilient Rebuild Program and the Lytton Business Restart Program, which support the rebuilding of the Town of Lytton that was destroyed by wildfire in summer of 2021. The programs were announced in 2023, PacifiCan is delivering $12.6 million in total funding.
- The Regional Quantum Initiative, which supports businesses and not-for-profit organizations to commercialize quantum products and solutions for domestic and global markets. The initiative was announced in 2021, PacifiCan received $13.9 million.
- The Black Entrepreneurship Program, which helps to strengthen the Black entrepreneurship ecosystem in the province by supporting Black-led not-for-profit organizations to provide mentorship, financial planning, and business training to Black entrepreneurs and business owners. PacifiCan received $3.9 million over five years beginning in 2025 for the program.
Lytton
Issue/question
Status of programming to rebuild Lytton, B.C. after 2021 fires
Suggested response
- Rebuilding Lytton is a collaborative process. The Province of B.C., local government, Indigenous communities, various federal departments, and many others all have roles to play.
- PacifiCan is committed to supporting the community’s recovery by working with partners to help businesses return, and to help homeowners rebuild fire-resilient and net zero homes.
- The recovery process takes times. PacifiCan has worked closely with the community to understand their needs and listen to their concerns. As a result, program timelines were adjusted, and eligibility was expanded, so more homeowners and businesses could access funding.
- The recovery and reestablishment of critical businesses, as defined by the community, have been prioritized for funding. Funding is available for both returning and new businesses to support the rebuild of a vibrant, community-oriented economy in Lytton.
- Funding is also available for the Village to rebuild core community infrastructure. Housing, Infrastructure and Communities Canada is working closely with officials on the ground to prioritize critical infrastructure and community building needs through the Green and Inclusive Community Buildings program, with one project already underway.
Background
- On June 20, 2021, devastating wildfires tore through the Village of Lytton, causing tragic loss of life and catastrophic damage to the community’s homes, businesses, and infrastructure.
- On June 14, 2022, the federal government announced $77.2 million in new funding to help rebuild the community:
- $64 million in infrastructure funding under the Green and Inclusive Community Buildings program for the construction of net-zero and fire-resistant public buildings.
- $13.2 million was set aside for small- and medium-sized businesses and insured homeowners to rebuild houses that are fire-resistant.
- Housing, Infrastructure and Communities Canada (HICC) is working with the Province and the Village, along with neighbouring First Nations, to identify and support critical infrastructure and community buildings needs and priorities.
- On February 19, 2025, HICC announced a $25.9 million investment in a Community Hub project led by the Village. The Hub will serve as an inclusive and accessible gathering space for the Village and surrounding areas, and will be fire-resilient and built to net-zero standards.
- [REDACTED]
- PacifiCan is working directly with eligible homeowners and businesses to deliver two programs to support the rebuild and recovery in Lytton, totalling $13.2 million:
- Lytton Homeowner Resilient Rebuild Program – $4.9 million in grants for eligible homeowners in Lytton (or within 15 kms of the village) to help them meet the extra costs to rebuild a fire‑resilient and/or Net Zero home.
- Lytton Business Restart Program – $6.0 million in funding for eligible businesses in (or within 15 kms) of Lytton for restart costs (e.g., equipment, supplies, construction, commercial space fit‑up, etc.). It includes support for Indigenous businesses and those operated by women, youth, and other underrepresented groups.
- PacifiCan’s programs opened in 2023 and remain open for applications. PacifiCan staff are regularly in the community to answer any questions and help applicants through the application process.
- The Government of Canada has committed over $77 million in funding to help Lytton rebuild, while also becoming a leading example of resilient, Net Zero design to better protect against wildfires in the future.
- The Government of Canada is one partner supporting Lytton’s recovery, alongside the Province of British Columbia, the Village of Lytton, the Thompson-Nicola Regional District, Indigenous communities, and leadership in the region.
Responsive only
Why is it taking so long to rebuild? / Why hasn’t Pacifican spent more funds?
- The impact to the community of Lytton as a result of the 2021 wildfire was unprecedented, and the recovery process takes time.
- The decision to rebuild is personal for each resident and business owner. As momentum and optimism continues to grow, PacifiCan’s programs remain open to support this community-driven recovery process.
Closure of Small Business BC
Issue/question
Closure of Small Business BC
Suggested response
- Small Business BC supported small businesses across the province and was a recipient of PacifiCan funding. The insolvency of Small Business BC put it in default of its agreements with PacifiCan.
- PacifiCan is committed to ensuring sound stewardship of federal funding and has been working with the appointed trustee, MNP Ltd., on the bankruptcy proceeding.
- PacifiCan is working with the B.C. government to ensure that key services to small businesses are maintained in the province.
- This includes continuing the Export Navigator services through a different partner to ensure critical services continue, supporting exporters through tariff-related challenges.
Background
- Funded by the Province of B.C. and PacifiCan, Small Business BC (SBBC) was established in 2002 to provide business support to entrepreneurs and small- and medium-sized enterprises across B.C.
- SBBC ran into financial difficulty in late fall 2024. On November 28, 2024, PacifiCan notified SBBC that its insolvency would mean SBBC would be in default of its agreements with PacifiCan.
- On December 4, 2024, SBBC filed bankruptcy documents with insolvency trustee MNP Ltd. SBBC ceased operations effective December 5, 2024.
- PacifiCan had three contribution agreements with SBBC:
- $2.7 million through a 30-month agreement to support general small business services for B.C. entrepreneurs and businesses (to have ended March 31, 2027).
- $3.6 million through a three‑year agreement (to have ended March 31,2026) to support the SBBC Export Navigator Program, which offers free export advice to B.C.-based businesses.
- $50,000 through a two-year agreement to support SBBC’s annual awards event (project complete).
- For each of these projects, PacifiCan followed established procedures and agreements, including reimbursement for eligible expenses until the time of default. PacifiCan has only reimbursed for claims that were fully substantiated.
- The agency will continue to monitor the bankruptcy process, which could take one to three years to conclude. The bankruptcy process is expected provide insight on the factors contributing to the insolvency.
- Innovation, Science and Economic Development Canada (ISED) provided $18.6 million over four years to SBBC to administer the Canada Digital Adoption Program (CDAP). This funding started in 2022 and was slated to complete March 31, 2025. PacifiCan and ISED are sharing information on the impact of bankruptcy procedures on existing federal programs and related funding.
- Historically, PacifiCan/Western Economic Diversification had an employee on the SBBC Board or Directors; however, this practice had concluded prior to any knowledge of financial pressures.
- PacifiCan and the Province of B.C. are working together with other partners to ensure key services to small businesses are maintained. This includes continuing the Export Navigator Program through a different partner, to ensure export supports remain available to small business at this critical time.
RRRF Repayable Contributions
Issue/question
Defaults on repayable contributions to business under the Regional Relief and Recovery Fund
Suggested response
- The COVID-19 pandemic had significant impacts on businesses across the country. It was important to take quick action to support hard-working Canadians.
- Through the Regional Relief and Recovery Fund (RRRF), the Government of Canada provided over $2 billion to help keep businesses running and Canadians employed.
- PacifiCan delivered almost $150 million in RRRF funding in the form of interest-free loans to over 1,500 B.C. businesses.
- Businesses that received financial assistance agreed to repay the funds according to a defined schedule. Businesses that are unable to repay on schedule are considered in default of their agreement. Before placing a file in default, PacifiCan works with businesses to ensure they understand and comply with their funding agreements, and helps them to resolve repayment issues, if possible.
- The RRRF loans were considered higher risk because the program was intended to be an emergency “program of last resort” for companies that struggled during unprecedented economic times. As a result, defaults are expected. When a loan is in default, PacifiCan takes all reasonable action to recover it, including working with the company to ensure as much of the loan is repaid as is possible.
Background
- The Regional Relief and Recovery Fund (RRRF) was lunched during the COVID‑19 pandemic and delivered by Regional Development Agencies (RDAs). It had two streams:
- Stream 1 provided interest-free loans of up to $60,000 to businesses.
- These loans included a forgivable portion of up to $20,000 if the rest of the loan (the mandatory amount) was repaid by a specific deadline. This is called partial forgiveness.
- Stream 2 provided up to $1 million in interest-free loans with no forgivable portion. Repayments began in January 2023 and will end in December 2025.
- Stream 1 provided interest-free loans of up to $60,000 to businesses.
- Changes announced in fall 2023 provided maximum flexibility for businesses to repay. The Government of Canada heard the concerns shared by small businesses and extended the deadline for partial forgiveness from December 31, 2023, to March 28, 2024, for Stream 1.
- This meant that those businesses that repaid the mandatory amount by March 28, 2024, did not have to repay the forgivable amount of up to $20,000.
- Businesses that were not able to repay the mandatory amount by March 28, 2024, still have to repay the full loan amount but have an extra year (to December 31, 2026) to repay their entire loan.
- This increased the repayment window from two years to three years and reduced monthly payments.
- The House of Commons Standing Committee on Public Accounts (PACP) examined this program, issuing a report in June 2022 (Report of PACP on RRRF). In the Government Response, RDAs committed to providing PACP with a joint report on defaults under RRRF in May 2023, June 2024, December 2024, June 2025, and December 2025. There is no longer a requirement for the June and December 2025 reports as all outstanding committee business ended when Parliament was dissolved.
- These reports cover Streams 1 and 2 of RRRF. For PacifiCan, the total number of RRRF loans was 1,824:
- 1,613 of these were in Stream 1 and 211 were in Stream 2.
- The report shows that PacifiCan issued a total of $146.9 million in direct contributions under RRRF.
- For PacifiCan, as of October 31, 2024, there were 312 defaults:
- 288 are Stream 1 and 24 are Stream 2.
- This totals $19.0 million, or 12.93% of the value of the loans.
- In the previous report that was provided in June 2024, PacifiCan had 222 defaults on RRRF Stream 1 and Stream 2, at a total value of $11.7 million, representing 7.96% of the total value of PacifiCan’s RRRF loans. That report included data as of April 30, 2024.
- These reports cover Streams 1 and 2 of RRRF. For PacifiCan, the total number of RRRF loans was 1,824:
- PacifiCan’s RRRF default rate of 12.93% is consistent with the overall RDA default rate of 12.89%.
Salmon aquaculture
Issue/question
The Government of Canada-announced ban on open net-pen salmon aquaculture in B.C.
Suggested response
- In September 2024, the Government of Canada published a draft Salmon Aquaculture Transition Plan. This plan serves as the basis for consultations and engagement, including on supports for those impacted by the transition.
- Since then, the government has held over 100 engagements with First Nations and stakeholders.
- The government is committed to continuing to work with First Nations, the province of British Columbia, affected communities, and other stakeholders to ensure a responsible transition that will encourage the adoption of innovative and clean aquaculture technologies.
- PacifiCan is part of the whole-of-government approach to supporting those affected.
Background
- The Cohen Commission (2009) looked at factors contributing to the Fraser River sockeye salmon decline and noted multiple contributors. DFO studies found salmon farms caused minimal impact on the wild salmon population. However, various scientific reports continue to emerge on both sides of the issue. While some link the farms directly to lice and pathogen transfers, other suggest there is very little evidence to support this. This is a divisive issue in B.C.
- In June 2024, the Government of Canada (GoC) released a policy statement announcing a ban on open net-pen salmon aquaculture in British Columbia by June 30, 2029, and allowing only closed containment farming systems moving forward. A Draft Salmon Aquaculture Transition Plan (Draft Plan) was released in September 2024.
- ISED leads the Interdepartmental Task Force (ISED, DFO, PacifiCan) to support consultation and engagement on the Draft Plan. The Task force held more than 100 engagements with First Nations, local governments, supply chain businesses, ENGOs, scientists, academics and other stakeholders through roundtables and bilateral meetings virtually, in Ottawa and at multiple sites on Vancouver Island. In addition, PacifiCan held focused, bilateral engagements with impacted supply chain companies to better understand the impact of the policy decision.
- [REDACTED]
- [REDACTED]
- PacifiCan is currently developing advice regarding programming needs related to helping impacted supply chain companies and coastal communities pivot to new economic development opportunities.
Section 3: Additional information
Speaking notes – Overview of PacifiCan’s role in the B.C. economy
- This is a critical time for Canada to bolster our economy…
- BC already has a robust and diversified economy:
- Abundant natural resources;
- Fastest shipping times to Asia-Pacific;
- Ecosystem of innovative businesses, especially in the tech, clean energy, and life sciences sectors;
- Most importantly, ambitious and resourceful people.
- Now is the time to strengthen our investment in Canadians, our communities, and our future…and that is where PacifiCan comes in.
- PacifiCan is bringing more to BC…more investments…more service.
- Communities across the province have already seen the impact of PacifiCan’s support.
- Since its launch in August 2021…PacifiCan has supported 645 projects…assisted more than 6,800 businesses…invested over $500 million into the BC economy.
- Investments like these have generated over $1 billion in export sales growth.
- We have also supported economic opportunities for Indigenous peoples and other underrepresented groups. PacifiCan works with partners across British Columbia to bring together local ideas, connections, resources, and goals to grow a strong economy.
Spring announcements
Web Summit Vancouver
Business Scale-up and Productivity / Jobs and Growth Fund
Tourism Growth Program
PacifiCan Business Acceleration Pilot / Community Economic Development and Diversification
Project examples
Clarius Mobile Health Corp.
Investment: $5.8 million over two Business Scale-up and Productivity program investments (First project: $2.4 million, second project $3.4 million)
Date: First project: December 4, 2020, second project: November 22, 2023
Location: Vancouver
Type of organization: Business
- Clarius Mobile Health Corp. creates cost-effective and portable ultrasound scanners.
- This technology, which is now available in several international markets, is providing real-time imaging at clinicians’ fingertips, thus improving patient care while reducing healthcare costs.
- PacifiCan’s first investment in Clarius helped the company gain access to South American and Middle Eastern markets. In fact, they were able to access 10 new international markets and secured $18M in new sales.
- Our second investment with Clarius is just getting started. It will help the company strengthen its access to the U.S. and Asian markets.
- Clarius’s success also resulted in the company becoming one of eight Canadian companies to be accepted into the federal Global Hypergrowth Program. This program helps mid-size companies grow to become Canadian anchor firms. The program is administered by ISED, along with a number of federal partners. It helps companies pursue international expansion, while creating jobs and anchoring business ecosystems here in Canada.
The Export Navigator Program
Investment: $1.2 million through the Regional Innovation Ecosystems program
Date: March 7, 2025
Location: Mission, BC (province-wide delivery)
Type of organization: non-profit
- This is an example of how PacifiCan works to ensure companies can access the services they need.
- PacifiCan co-funds this program with the Province of British Columbia. It is delivered bythe Community Futures Development Association of B.C. (CFBC), which provides targeted and tailored support to companies -- support that is complementary to but at an earlier stage than the work of the Trade Commissioner Service.
- The program connects participating small businesses with locally-based expert advisors (the navigators) who help them prepare to export.
- One of the companies Export Navigator helped is Okanagan Crush Pad. Through the advice they received from their navigator, they were able to expand their reach and sell their wine into the United Kingdom and Scandinavia.
The Integrated Marketplace Initiative
Investment: $11.7 million through two projects (Regional Innovation Ecosystems=$9.9 million, Regional Artificial Intelligence Initiative=$1.8 million)
Date: Regional Innovation Ecosystems – March 23, 2023; Regional Artificial Intelligence Initiatives – February 18, 2025
Location: Vancouver, with testbeds at YVR, Port of Prince Rupert, Port of Vancouver and Provincial Health Services Authority.
Type of organization: Innovate BC (Provincial Crown Corporation, as delivery agent, with small businesses benefitting as their technologies are tested and proven)
- With significant investment from PacifiCan and the Province of BC, and the participation of partners such as YVR, and the Ports of Prince Rupert and Vancouver, the Integrated Marketplace (IM) initiative works to de-risk the adoption of domestic innovations.
- By linking talented local companies with institutional customers:
- Successful companies gain a reference customer in BC, which can help them achieve sales in key markets abroad; and,
- Institutional partners (functioning as testbeds) accelerate their adoption of innovation, making them more competitive.
The Alacrity Foundation of B.C. (operating as Alacrity Canada)
Investment: $2.5 million through the PacifiCan Business Acceleration Pilot (BizAP)
Date: February 18, 2025
Location: Victoria, B.C. with support services also delivered from their Vancouver-based office
Type of organization: Not-for-profit corporation
- PacifiCan invested in Alacrity Canada to expand its programming for small- and medium-sized businesses ready for rapid growth.
- With a track record of supporting 24,000 B.C. entrepreneurs, Alacrity’s Advanced Pathways for Export Program (APEX), prepares companies for diversified trade opportunities and provides personalized mentorship from industry experts and connections with global investors.
- This investment will help businesses with high growth potential achieve their scale-up ambitions and bolster B.C.’s position as a leader in key sectors such as clean technology and manufacturing.
The Vancouver Board of Trade (operating as The Greater Vancouver Board of Trade)
Investment: $0.5 million through the Regional Innovation Ecosystems program
Date: February 28, 2025
Location: Vancouver with workshops delivered province-wide
Type of organization: not-for-profit association
- PacifiCan is supporting the Greater Vancouver Board of Trade (GVBOT) to help more businesses diversify their sales to new export markets through its Trade Accelerator Program (TAP). TAP was originally developed by the Toronto Board of Trade; GVBOT is delivering the B.C. iteration.
- With this funding, the GVBOT is delivering the TAP across multiple regions of B.C., helping five cohorts of 15 local businesses each access Canada’s top export advisors, resources, and contacts. This will help companies grow at home as they expand their sales in international markets.