Supporting information on the 2022-23 Deparmental Plan
Publication author : Canada Economic Development for Quebec Regions
Publish date : March 3, 2022
Summary :
This publication provides financial and non-financial information to support the information included in the 2022—23 Departmental Plan.
Table of Contents
Operating Context
Prior to the onset of COVID-19, the Quebec economy was in full swing: GDP growth was higher than in the rest of Canada; the unemployment rate was the lowest it had been in several decades; and wage growth surpassed the Canadian average.
Hard hit since the beginning of COVID-19, the Quebec economy experienced a marked rebound in 2021. GDP, which fell by 5.5% in 2020, is expected to grow by 6.1% in 2021. According to recent forecasts, more modest growth of close to 2.6% is anticipated for 2022, which should also be a good year. Most of the indicators (e.g., GDP, jobs, investment, exports and consumer spending) have made up the lost ground. The recovery is being observed in the vast majority of sectors, with the exception of a few that were more severely affected during the crisis, notably international tourism; accommodation and food services; transportation; and arts, entertainment, and recreation. Nevertheless, these positive developments remain fragile. Growth could still be slowed by the ongoing impact of the pandemic (multiple health restrictions and variants), the disruption of supply chains, high inflation, and geopolitical tensions.
Beyond the immediate impacts of the pandemic, brought on by the situation, the Quebec economy is also facing some structural issues. Drawing on its on-the-ground intelligence and its ties with economic development players, CED has identified six key issues:
- Productivity gap: Quebec persistently lags behind in terms of productivity (9th in Canada), which jeopardizes the competitiveness of its businesses and also its prosperity. Quebec businesses are slow to make the necessary investments in innovation and the adoption of digital technologies.
- Labour shortage: The labour shortage continues to put pressure on SMEs. In 2021, the vacancy rate reached unprecedented levels. Many SMEs are having to postpone projects or refuse contracts because of a lack of employees. Beyond the immediate recovery, the transition of businesses to digital will increase demand for skilled labour, as was seen during the pandemic.
- Commercialization shortcomings: Quebec is experiencing shortcomings in terms of the commercialization of innovations. Fewer Quebec businesses and organizations are converting their R&D work into patents: the rate of patenting of innovations is about half that reported in Ontario.
- Decline in entrepreneurial intensity and sluggish business growth: Quebec is dealing with a lack of new workers to fill the gap created by the departure of entrepreneurs whose succession is often poorly or under prepared.
- Community adjustment challenges: A number of Quebec communities, often those in rural areas, lack the infrastructure needed to deal with technological, economic and climatic changes in order to ensure their prosperity. The pandemic has highlighted the need for digital infrastructure in all regions. In addition, some are dependent on industrial activities that are in decline or at risk of becoming so.
- Climate change adaptation and environmental performance: Although Quebec produces most of its electricity using low-emission hydro-electric sources, its environmental performance with respect to other environmental indicators, such as the adoption of clean technologies by businesses, waste generation, PM10 emissions, and energy intensity, is weak. Quebec’s economy is also less circular than the global economy (3.5% vs. 8.6%, according to Recyc-Québec).
Supplementary information tables
Departmental Sustainable Development Strategy
Departmental Sustainable Development Strategy – 2020 to 2023
Details on transfer payment programs
Regional Economic Growth through Innovation (REGI)
Start date
October 18, 2018
End date
REGI – Permanent program
Type of transfer payment
Grants and contributions
Type of appropriation
Appropriated annually through Estimates
Fiscal year for terms and conditions
2020-2021
Link to departmental result(s)
The REGI program targets the two following departmental results:
- Quebec businesses are innovative and growing
- Businesses invest in the development and commercialization of innovative technologies in Quebec
Link to the department’s Program Inventory
The REGI program falls under the Regional Innovation and Temporary or Targeted Support programs.
Purpose and objectives of transfer payment program
The REGI is a national program that supports the economic growth of businesses through innovation. In Quebec, it is delivered by CED, taking into account the needs of Quebec’s businesses and regions. The REGI program has two streams:
- Business scale-up and productivity: CED fosters the development of businesses by helping them scale-up, improve their productivity and grow through innovation (adoption or adaptation of advanced technologies; demonstration; and commercialization and market development).
- Regional innovation ecosystems: CED also contributes to the creation of an entrepreneurial environment conducive to innovation by supporting the development of regional innovation ecosystems that meet the needs of businesses and foster their growth and competitiveness.
Recipients that are small or medium-sized businesses (SMEs) are awarded repayable contributions. Recipients that are non-profit organizations (NPOs) receive non‑repayable contributions or grants.
CED is committed to helping to build a strong and inclusive economy; for example, CED is responsible for the implementation, in Quebec, of the Ecosystem Fund, part of the Black Entrepreneurship Program. The goal of the Fund is to enable not-for-profit organizations led by Black communities to develop new services or expand existing ones, such as mentoring, networking, financial planning and business training for Black entrepreneurs and business owners.
This program is also used to implement the Regional infrastructure development initiative in Quebec and the Women Entrepreneurship Strategy Ecosystem Fund.
Furthermore, it supports economic recovery in a post-COVID context via the Jobs and Growth Fund and the Aerospace Regional Recovery Initiative.
Expected results
The REGI program targets the two following departmental results:
- Quebec businesses are innovative and growing
- Businesses invest in the development and commercialization of innovative technologies in Quebec
A set of six indicators is used to measure CED’s progress with respect to the achievement of these results. These indicators are primarily based on economic statistics (e.g., value of Quebec goods’ exports) and data from projects that received funding (e.g., revenue growth rate of businesses supported by CED programs). CED plans to reveal the most recent metrics for these indicators during the annual presentation of its Departmental Results Report.
Fluctuations in these indicators can be attributed to a number of factors, primarily the economic environment. Since the economic environment was hard hit by the pandemic—and this includes the period needed to recover from the impact the pandemic has had on businesses and the regions—CED expects variations in its results, even though, in the long term, progression should be positive.
Fiscal year of last completed evaluation
N/A, given that the program was implemented in October 2018.
Decision following the results of last evaluation
N/A
Fiscal year of next planned evaluation
2023-2024
General targeted recipient groups
The main recipients of REGI funding are:
- businesses
- groups of businesses
- organizations that support and provide services for businesses at various stages of their development to help them boost their growth, facilitate or improve their scale-up and develop their markets
- college centres for technology transfer (CCTTs)
- NPOs that provide services or generate benefits for businesses
- business incubators and accelerators
- municipalities and regional county municipalities (RCMs)
- groups and associations that may include NPOs, businesses, post-secondary institutions or consortiums
- Indigenous organizations
Initiatives to engage applicants and recipients
CED’s 12 business offices continuously engage with key community players so as to remain abreast of the issues and challenges facing each of the regions of Quebec and to ensure that projects brought forward by communities and businesses receive all the government support they need to be successful. CED places a particular emphasis on the development of regional innovation ecosystems to ensure that their various areas of expertise help foster business growth.
In addition, all CED clients are systematically asked to fill in a satisfaction questionnaire upon completion of their project. This tool provides feedback from recipients of CED funding, notably about whether the Agency’s programs meet their needs.
| Type of transfer payment | 2021–22 forecast spending |
2022–23 planned spending |
2023–24 planned spending |
2024-25 planned spending |
|---|---|---|---|---|
| Total grants | 4,618,000 | 3,716,000 | 1,018,500 | 0 |
| Total contributions | 296,416,440 | 256,033,055 | 189,125,489 | 119,216,935 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 |
| Total program | 301,034,440 | 259,749,055 | 190,143,989 | 119,216,935 |
Community Futures Program (CFP)
Start date
May 18, 1995
End date
Permanent program
Type of transfer payment
Contributions
Type of appropriation
Appropriated annually through Estimates
Fiscal year for terms and conditions
2020-2021
Link to departmental result(s)
The CFP will continue to target the following departmental result: Communities are economically diversified in Quebec.
Link to the department’s Program Inventory
The CFP falls under the Community Vitality program
Purpose and objectives of transfer payment program
The CFP supports local economic development and strengthens the capacity of communities to develop to their full potential in a sustainable manner.
The program’s main objectives are:
- stability, economic growth and job creation
- diversified and competitive local economies in rural areas
- sustainable communities
CFP recipients are awarded non-repayable contributions.
Expected results
The CFP will continue to target the following departmental result: Communities are economically diversified in Quebec.
A set of three indicators is used to measure CED’s progress with respect to the achievement of this departmental result. These indicators are primarily based on economic statistics (e.g., percentage of SMEs in Quebec that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities) and data from projects that received funding (e.g., amount leveraged per dollar invested in community projects). CED plans to reveal the most recent metrics for these indicators at the annual presentation of its Departmental Results Report.
The CFP is a national program delivered in Quebec by CED, and so has national indicators (e.g., expressed as a percentage point, the extent to which the growth in sales of CFP-assisted clients exceeds that of comparable unassisted firms).
Fiscal year of last completed evaluation
2019–2020
Decision following the results of last evaluation
The program was extended, and an action plan was put in place. The evaluation and the action plan are available on the CED website.
Fiscal year of next planned evaluation
2024-2025
General targeted recipient groups
The CFP provides funding for Community Futures Development Corporations (CFDCs), Business Development Centres (BDCs) and the Network of CFDCs and BDCs.
Initiatives to engage applicants and recipients
In 2016, CED undertook an exercise to modernize the delivery of this program in Quebec. Carried out in conjunction with the organizations that receive funding under the program, this exercise culminated, in 2019, in the renewal of the agreements for a five-year period, which allowed for a review of area coverage, the funding model and the services provided by the organizations. CED continues to work closely with these organizations as concerns the measurement of results and the monitoring of the implementation of the agreements. To this end, various joint working groups have been set up.
| Type of transfer payment | 2021–22 forecast spending |
2022–23 planned spending |
2023–24 planned spending |
2024-25 planned spending |
|---|---|---|---|---|
| Total grants | 0 | 0 | 0 | 0 |
| Total contributions | 42,427,164 | 33,427,175 | 33,427,175 | 33,427,175 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 |
| Total program | 42,427,164 | 33,427,175 | 33,427,175 | 33,427,175 |
Quebec Economic Development Program (QEDP)
Start date
April 1, 2012
End date
Permanent program
Type of transfer payment
Grants and contributions
Type of appropriation
Appropriated annually through Estimates
Fiscal year for terms and conditions
2020-2021
Link to departmental result(s)
The QEDP targets the following departmental result:
- Communities are economically diversified in Quebec
Link to the department’s Program Inventory
The QEDP falls under the Community Vitality and Temporary or Targeted Support programs.
Purpose and objectives of transfer payment program
The QEDP supports regional economic development and diversification and helps the regions pursue economic development opportunities that hold promise going forward.
This program is also used to implement the Lac-Mégantic Economic Recovery Initiative, the Official Languages Initiative and the Regional infrastructure development initiative in Quebec.
Recipients that are small or medium-sized businesses (SMEs) are awarded repayable contributions. Recipients that are non-profit organizations (NPOs) receive non‑repayable contributions or grants.
This program is also used to support economic recovery in a post-COVID context with the Tourism Relief Fund, the Canada Community Revitalization Fund and the Major Festivals and Events Support Initiative.
Expected results
The QEDP targets the following departmental result:
Communities are economically diversified in Quebec.
A set of three indicators is used to measure CED’s progress with respect to the achievement of this result. These indicators are primarily based on economic statistics and data from projects that received funding (e.g., amount leveraged per dollar invested by CED in community projects).
Fluctuations in these indicators can be attributed to a number of factors, primarily the economic environment. Since the economic environment has been hard hit by the pandemic—and this includes the period needed to recover from the impact the pandemic has had on businesses and the regions—CED expects variations in its results, even though, in the long term, progression should be positive.
Fiscal year of last completed evaluation
2018–2019
Decision following the results of last evaluation
The program was extended, and an action plan was put in place. The evaluation and the action plan are available on the CED website.
Fiscal year of next planned evaluation
2021-2022
General targeted recipient groups
The main recipients of QEDP funding are:
- non-profit organizations
- economic development organizations
- municipalities and regional county municipalities (RCMs)
- organizations tasked with attracting international organizations and foreign investment
- businesses with a local and regional reach
- groups of businesses
Initiatives to engage applicants and recipients
CED’s 12 business offices continuously engage with key community players so as to remain abreast of the issues and challenges facing each of the regions of Quebec and to ensure that projects brought forward by communities and businesses receive all the government support they need to be successful. This allows for the adjustment of policies and programs, as was the case in 2018 when the parameters of our programs targeting Indigenous communities were eased so that these communities could benefit more fully from CED funding. CED places particular emphasis on this ongoing dialogue in communities experiencing slower economic growth.
In addition, all CED clients are systematically asked to fill in a satisfaction questionnaire upon completion of their project. This tool provides feedback from recipients of CED funding, notably about whether the Agency’s programs meet their needs.
| Type of transfer payment | 2021–22 forecast spending |
2022–23 planned spending |
2023–24 planned spending |
2024-25 planned spending |
|---|---|---|---|---|
| Total grants | 4,609,220 | 4,040,768 | 1,500,000 | 1,500,000 |
| Total contributions | 147,407,887 | 237,661,115 | 33,843,317 | 34,668,016 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 |
| Total program | 152,017,107 | 241,701,883 | 35,343,317 | 36,168,016 |
Gender-based analysis plus
General information
Institutional GBA Plus Capacity
In line with the Agency-wide GBA+ Framework and Statement of Intent adopted in 2018, CED strives to ensure that the principles of diversity and gender-equality are applied across the organization, including in research and policy-making, program design, evaluation, internal practices and client services.
In 2022–2023, the following activities will contribute to the advancement of internal GBA+ capacity and practices:
- GBA+ coordination: Continue to facilitate, plan, monitor and report on CED’s internal GBA+ practices and improve CED’s GBA+ readiness through CED’s GBA+ Coordination Centre directed by a Director General Champion and supported by two GBA+ Focal Points.
- Staff awareness and training: Continue to raise GBA+ awareness as it pertains to CED’s mandate by means of tailored communication products and by holding discussions and activities, primarily organized as part of GBA+ Awareness Week.
- Results of program evaluations: Apply recommendations and lessons learned pertaining to GBA+, based on CED program evaluations.
- Sex and gender information practices: Continue to promote inclusive communication in response to the implementation of the government-wide Policy Direction to Modernize the Government of Canada’s Sex and Gender Information Practices.
- Other CED diversity and inclusion initiatives: In response to the Clerk of the Privy Council’s Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service, Agency-wide efforts are planned to enhance and foster a culture of inclusion that values diversity and fights racism and systemic barriers. To this end, CED has hired a new employee in the People, Culture and Workplace Branch to oversee work in this regard.
CED will continue to integrate gender-based analysis plus into its analyses of all new initiatives. The Agency will support the inclusive shift of SMEs and organizations and the integration of tools developed to optimize appropriate support in terms of information, referencing, awareness raising and demystification as they relate to diversity and inclusion issues. In addition, the Agency will actively promote and encourage participation in the Government of Canada’s 50-30 Challenge to increase the representation and inclusion of diverse groups in the workplace.
Highlights of GBA Plus Results Reporting Capacity by Program
Regional Innovation
a. Does this program collect sufficient data to enable it to monitor and/or report program impacts by gender and diversity (GBA+)?
Yes. The data collected under this priority allows CED to better understand the impact of these programs and initiatives for evaluation and continuous improvement purposes, and helps in the identification of potential gaps in accessibility and the communication needs of various target groups in the regions of Quebec.
b. If yes, please describe (if applicable) any notable initiatives aimed at increasing the program’s capacity to report on impacts in terms of gender and diversity going forward.
A number of improvements have already been made in terms of data collection, such as the inclusion of definitions of under-represented groups on self-declaration forms. CED will continue to explore various means of increasing the validity and use of GBA+ data to improve the delivery of its policies and programs, in line with the government’s priority relating to inclusive growth.
Vitality of Communities
a. Does this program collect sufficient data to enable it to monitor and/or report program impacts by gender and diversity (GBA+)?
Yes. As with the regional innovation priority, CED continues to come up with ways of improving the granularity and use of data collected on gender and diversity. The data collected allows CED to better understand the impact on these programs and initiatives for evaluation and continuous improvement purposes, and helps in the identification of potential gaps in accessibility and the communication needs of various under-represented groups in the regions of Quebec.
b. If yes, please describe (if applicable) any notable initiatives aimed at increasing the program’s capacity to report on impacts in terms of gender and diversity going forward.
With a view to continuous improvement, CED strives to increase the granularity of data collected on gender and diversity. Furthermore, the five-year review of the Quebec Economic Development Program in 2021–2022 includes a GBA+ component. The results of this evaluation, expected in 2022–2023, will allow CED to identify potential gaps in data collection and opportunities for improvement.
Targeted or temporary support
a. Does this program collect sufficient data to enable it to monitor and/or report program impacts by gender and diversity (GBA+)?
Yes. CED continues to come up with ways of improving the granularity and use of data collected on gender and diversity. The data collected allows CED to better understand the impact on these programs and initiatives for evaluation and continuous improvement purposes, and helps in the identification of potential gaps in accessibility and the communication needs of various under-represented groups in the regions of Quebec.
b. If yes, please describe (if applicable) any notable initiatives aimed at increasing the program’s capacity to report on impacts in terms of gender and diversity going forward.
As with the regional innovation priority, CED strives to come up with ways of improving the granularity and use of data collected on gender and diversity. CED encourages the practice whereby all program reviews include a GBA+ component that will identify potential gaps in data collection and opportunities for improvement. A review has not been planned for 2022–2023 under this program.
Internal Services
a. Does this program collect sufficient data to enable it to monitor and/or report program impacts by gender and diversity (GBA+)?
Yes. GBA+ continues to impact staffing within CED through good employment equity practices already in place. The requirement to consider employment equity groups applies to all appointments and selection processes, and managers are required to justify this by specifying that employment equity groups have been considered for all appointments. In addition, all job offer letters note CED’s commitment to a diverse and representative workforce.
b. If yes, please describe (if applicable) any notable initiatives aimed at increasing the program’s capacity to report on impacts in terms of gender and diversity going forward.
CED regularly encourages employees to complete the employment equity self-declaration form, and will continue to do so in 2022‑2023.
CED will also be conducting an integrated human resource planning exercise in 2022–2023 that will take equity, diversity and inclusion into account. In addition, a departmental equity, diversity and inclusion plan will be drafted, the goal of which, among other things, will be to improve the representation of employment equity groups, one of which is women, particularly in executive positions.
United Nations 2030 Agenda and the Sustainable Development Goals
| UN Sustainable Development Goals (SDGs) | Planned initiatives | Global or national targets or global or national indicators |
|---|---|---|
| SDG 5: Achieve gender equality and empower all women and girls |
Women Entrepreneurship Strategy (WES) – implemented via the Regional Economic Growth through Innovation (REGI) program – aims to help women entrepreneurs grow their businesses by facilitating access to funding, talent, networks and expertise. These activities have a positive impact on the proportion of women who own businesses or who hold management positions in Quebec. |
This strategy helps: Global Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. Canadian Indicator Framework (CIF) National Objective 5: Achieve gender equality and empower all women and girls. Ambition: Canadians are well represented at all levels of decision-making. |
| SDG 8: Foster sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all |
Quebec Economic Development Program (QEDP), including the following ad hoc initiative: Regional Economic Growth through Innovation (REGI), including the following ad hoc initiatives: The programs listed above aim to promote continued and sustainable economic growth by fostering business development and the economic vitality of communities, including within the context of a post-pandemic economic recovery. They have a positive impact on businesses, their growth rate, job creation and even per capita GDP growth. |
These programs help: Global Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries. Global Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors. Global Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro, small and medium-sized enterprises, including through access to financial services. Global Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. Global Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. Canadian Indicator Framework (CIF) National Objective 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Ambitions: Canadians have access to quality jobs; and, Canadians contribute to and benefit from sustainable economic growth. |
| SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation |
Regional Economic Growth through Innovation (REGI) Quebec Economic Development Program (QEDP), including the following ad hoc initiative: Through the REGI program and the QEDP, CED makes a significant contribution to the promotion of sustainable industrialization that benefits everyone through rational resource use and greater adoption of clean and environmentally sound infrastructure, technologies and industrial processes. |
These programs help: Global Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. Canadian Indicator Framework (CIF) National Objective 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. Ambitions: Canada fosters sustainable research and innovation; and, Canadians have access to modern and sustainable infrastructure. |
| SDG 10: Reduce inequality within and among countries |
Black Entrepreneurship Program (BEP) – implemented through the Regional Economic Growth through Innovation (REGI) program – aims to support efforts to reduce inequalities based on ethnicity, and to foster inclusive economic integration by helping Black business owners and entrepreneurs grow their businesses. Tourism Relief Fund (TRF), implemented through the Quebec Economic Development Program (QEDP) Quebec tourism businesses employ and attract members of diverse communities, including under-represented groups such as youth and women. By strengthening this sector, which has experienced significant difficulties during the pandemic, CED is helping to reduce inequality and disparity in terms of economic opportunities in the regions of Quebec. |
These programs help: Global Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. Canadian Indicator Framework (CIF) National Objective 10: Reduce inequality within and among countries. Ambition: Canadians live free of discrimination and inequalities are reduced. |
| SDG 11: Make cities and human settlements inclusive, safe, resilient and sustainable |
Canada Community Revitalization Fund – Quebec, implemented through the Quebec Economic Development Program (QEDP). By assisting Quebec communities in carrying out and improving community infrastructure projects to help them recover from the economic downturn caused by the pandemic, this program aims to attract diverse Canadians to safe and inclusive community spaces, which will help revitalize communities. |
This initiative helps: Global Target 11.7: By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities. |