July 11, 2005
Summerside , Prince Edward Island
The Honourable Joseph McGuire, Minister of the Atlantic
Canada Opportunities Agency (ACOA), today launched the
Atlantic Investment Partnership ─ The Second Wave, a new
five-year $708-million initiative to support economic
development throughout Atlantic Canada.These new and renewed resources will allow ACOA to build on
the success of the first phase of the Atlantic Investment
Partnership (AIP) in critical areas such as innovation,
community development, training and improving the climate
for business growth. Minister McGuire announced program
details at an event in Slemon Park near Summerside, Prince
Edward Island and emphasized the made-in-Atlantic Canada
approach that led to the announcement.Five years ago, we started down a bold new road with the
Atlantic Investment Partnership, a forward-looking strategy
designed by Atlantic Canadians to help us compete in the
global, knowledge-based economy, said Minister
McGuire. Thanks to the first AIP, we have more research
and development, more opportunities in rural areas, more
exports and foreign investment, and more skilled
entrepreneurs working in Atlantic Canada. With the launch
of the Atlantic Investment Partnership ─ The Second Wave,
we build on that success and set an even more ambitious
course for our region.
As a government, we stand ready with Atlantic Canadians to
help them tackle their key economic challenges and
opportunities: expanding their export markets, attracting
investment and tourism dollars, strengthening the economies
of rural communities, enhancing the skills of people who
live here, attracting new skilled workers, and promoting
more innovation and R&D.Funding for The Second Wave, based on the report entitled
The Rising Tide: Our Continuing Commitment to Atlantic
Canada, was provided for in the Government's 2005 Budget.
It includes replenished funding for existing programs and
enhanced measures to address new economic challenges in the
region under four broad components:1. Investing in InnovationThe flagship Atlantic Innovation Fund (AIF) has been
allocated an additional $300 million over five years. The
fund is designed to increase the region's capacity to carry
out leading-edge research and development and commercialize
more of the technologies developed in Atlantic Canada.
Approximately 100 projects were supported under Rounds I
and II of the AIF.Today, the ACOA Minister announced that, effective
immediately, proposals are being accepted under Round III
of the renewed AIF. The deadline for submitting a
mandatory letter of intent is August 31, 2005, and the
deadline for submitting a complete project proposal is
October 12, 2005. Both a letter of intent and a project
proposal must be submitted for a proposal to be considered.A package containing guidelines for proposal development is
available through ACOA offices in the region or on the
Agency's web site at www.acoa-apeca.gc.ca.In addition, ACOA's Business Development Program will be
enhanced to stimulate investments in innovation by small
and medium-sized enterprises (SMEs) in Atlantic Canada.The National Research Council (NRC) will use the $110
million provided through Budget 2005 for the second phase
of its initiative to develop technology-based clusters in
Atlantic Canada. The NRC's efforts will increasingly focus
on identifying and meeting the innovation needs of local
businesses in sectors such as information and
communications technologies, life sciences and ocean
technologies.2. Investing in CommunitiesWith a budget of $175 million over five years, the
Innovative Communities Fund (ICF) will strengthen and
diversify the economies of communities across the region,
with a primary focus on rural areas. Building on the
foundation laid by the Strategic Community Investment Fund
(SCIF) which ended in 2005, the new ICF will continue to
build economic development capacity in communities, but is
also designed to stimulate transformative change in
communities where the opportunity exists. In addition,
$8.4 million has been allocated to the Community Futures
program, managed by ACOA, which helps local communities
provide services that encourage business growth, such as
access to capital and business information.3. Investing in PeopleThe third component under The Second Wave is
Entrepreneurship and Skills Development, which will be
funded with a total of $50 million over five years.
Targeted measures such as the Women in Business Initiative
and the Youth Entrepreneur Development Initiative,
fostering entrepreneurship and business expansion by women
and youth entrepreneurs, will continue to be a priority.
As well, a new Productivity and Business Skills Initiative
will be introduced to boost SME investment in skills
development.In partnership with other stakeholders and federal
departments, ACOA will also develop an Atlantic Population
Strategy to address the challenges of immigration, and the
attraction and retention of skilled Atlantic Canadians.The Productivity and Business Skills Initiative and the
development of an Atlantic Population Strategy create
partnerships to advance the objectives of the
Internationally Trained Workers Initiative. This initiative
is one of the key elements of the Government of Canada's
goal to create a workforce for the 21st century. ACOA was
present at the Internationally Trained Workers Roundtables
held in the Atlantic Provinces during the spring, and
understands well the challenges of recruitment and
retention of foreign- trained workers which these provinces
face.4. Investing in the Business ClimateThe new AIP ─ The Second Wave will focus on initiatives to
bolster the region's trade, investment and tourism, as well
as access to investment capital for small and medium-sized
businesses. These initiatives include Team Canada Atlantic
trade missions to the United States and Europe, Atlantic
Trade and Investment Partnership export strategies and
continued support for trade education and skills
development for potential exporters. They also include
sustained funding for ACOA's Investment Strategy to market
Atlantic Canada as a prime location for investment.The Atlantic Canada Tourism Partnership will be renewed and
modified to reflect new market trends while staying focused
on its core mission to promote Atlantic Canada as a
premiere tourism destination in international markets.These programs under the Business Climate component will
see a total injection of $65 million over five years.The Second Wave is consistent with the Government of
Canada's five-point strategy for economic development
announced in the Speech from the Throne, October 2004:- Investing in People;
- Investing in New Ideas and Enabling Technologies;
- Commitment to Regional and Sectoral Development;
- Providing a More Effective Regulatory System for
Business; and
- Promotion of Trade and Investment.- 30 -
FOR FURTHER INFORMATION, CONTACT:
Valérie Poulin
Director of Communications
Office of the Honourable Joseph McGuire
Minister of the Atlantic Canada Opportunities Agency
(613) 941-7241
Deborah Corey
ACOA Communications
(506) 851-2133
dcorey@acoa-apeca.gc.ca
MEDIA BACKGROUNDERAtlantic Investment Partnership ─ The Second WaveOverview: A Renewed Development Strategy for Atlantic
CanadaIn its 2005 Budget, the Government of Canada reaffirmed its
commitment to building strong regional economies. As a
direct result, the Atlantic Canada Opportunities
Agency (ACOA) is implementing the Atlantic Investment
Partnership ─ The Second Wave, a new five-year $708-million
initiative to support economic development throughout
Atlantic Canada. This initiative builds on the success of
the original Atlantic Investment Partnership which was
announced by the Government in 2000.The four principal elements of Atlantic Investment
Partnership ─ The Second Wave are:
-- Investing in Innovation
-- Investing in Communities
-- Investing in People
-- Investing in the Business Climate1. Investing in InnovationThe Investing in Innovation component is designed to
accelerate Atlantic Canada's transition to the knowledge-
based economy. The component includes an infusion of $300
million over five years through the renewed Atlantic
Innovation Fund (AIF).AIF is designed to increase research and development (R&D)
capacity across Atlantic Canada and to encourage the
commercialization of the technologies developed in the
region.Though the program itself will not change, the application
process has been modified to include:-- Multiple rounds per year - to be phased in over the
next couple of years. The original AIF included two funding
rounds and the renewed AIF will include three funding
rounds. The official Request for Letters of Intent and
Project Proposals for Round III projects was announced on
July 11, 2005. The deadline for submitting a letter of
intent is August 31, 2005, and the deadline for submitting
a complete project proposal is October 12, 2005. Both a
letter of intent and a project proposal must be submitted
for a proposal to be considered.It is expected that Round III of the renewed AIF will
conclude in February 2006 with the announcement of selected
projects, and coincide with the launch of Round IV, which
is expected to conclude in September 2006.Round V is expected to be launched in September 2006 and to
conclude in April 2007. In the event that these timelines
change due to unforseen circumstances, updates would be
posted on ACOA's web site under the Atlantic Innovation
Fund at www.acoa-apeca.gc.ca.-- of proposals - only proposals
deemed ready foEnhanced preparationr consideration' (e.g. fully developed R&D
proposals, realistic financial package and partnership
proposals, intellectual property issues resolved, etc.)
will receive a full evaluation in a round. Proposals
needing more work will not be considered.ACOA's Business Development Program (BDP) has been enhanced
to stimulate investment in innovation by small and medium-
sized enterprises in Atlantic Canada. The ceiling for
conditionally repayable assistance under the BDP's
Innovation element has been increased to $1 million.
Businesses seeking funding for innovation projects of $1
million or less will be considered through the BDP instead
of the AIF.The National Research Council (NRC) will use new funding of
$110 million to continue developing technology-based
clusters in Atlantic Canada. The NRC will focus on
innovation in sectors such as information and
communications technologies, life sciences and ocean
technologies.2. Investing in CommunitiesThe Investing in Communities component is designed to
diversify and enhance the economies of communities in
Atlantic Canada. It will see a total injection of $175
million over five years, delivered through the Innovative
Communities Fund (ICF).ICF is designed to respond to the unique and varying
economic development needs of communities in Atlantic
Canada. The initiative will focus on those projects which
demonstrate the potential for sustainable economic impact
on Atlantic Canada's rural communities. Urban projects
will be considered where they are strategic to the economic
development of rural areas.ICF will support projects from non-commercial/not-for-
profit organizations which capitalize on their community's
strengths and opportunities to build community economic
development capacity and/or stimulate transformative change
in communities where the opportunity exists. ICF will
consider projects that, for example:-- support community economic development
infrastructure;
-- strengthen / expand new economy, resources,
manufacturing and tourism sectors;
-- create a climate conducive to economic growth and
entrepreneurship;
-- realize sustainable economic opportunities; and
-- reflect local natural or cultural resources in an
innovative way.An additional $8.4 million has also been provided for the
Community Futures Program in Atlantic Canada, which is
managed by ACOA, to continue the important work of the
region's 41 Community Business Development Corporations.
These locally based organizations provide valuable services
to encourage business growth in mainly small and rural
communities.3. Investing in PeopleThe Investing in People component will see a total
injection of $50 million over five years in four primary
areas:
-- Women in Business Initiative
-- Young Entrepreneur Development Initiative
-- Productivity and Business Skills Initiative
-- Atlantic Population Strategy The Women in Business Initiative will improve the growth
and competitiveness of women-owned businesses and increase
their representation in Atlantic Canada's emerging growth
sectors.The Young Entrepreneur Development Initiative will help
raise awareness of entrepreneurship among young Atlantic
Canadians and expose them to the process of starting up a
business. It will also help young people who are already
in business to improve their capacity to succeed and grow.The Productivity and Business Skills Initiative will
combine and enhance programs that stimulate small and
medium-sized businesses to invest in skills development in
such areas as:
-- technical skills (includes R&D, production and
quality assurance),
-- commercialization skills (includes trade, marketing
and distribution); and
-- management skills (includes project management,
environmental management, human resource management and
financial management skills).In partnership with other stakeholders and federal
departments, ACOA will develop an Atlantic Population
Strategy to address the challenges of immigration and the
attraction and retention of skilled Atlantic Canadians.4. Investing in the Business ClimateThe new AIP ─ The Second Wave focuses on initiatives to
bolster the region's trade, investment and tourism, as well
as access to investment capital for small and medium-sized
businesses. This component will see a total injection of
$65 million over five years, invested in:-- Atlantic Trade and Investment Partnership
-- Atlantic Canada Tourism Partnership
The Atlantic Trade and Investment Partnership includes:-- Team Canada Atlantic Includes two trade missions
per year to selected U.S. and European markets with the
participation of approximately 40 Atlantic companies per
mission.-- Sector Export Strategies Develops and funds
sector export strategies, and assists and implements
international initiatives as identified within the
strategies.-- Trade Education and Skills Development Provides
trade training and awareness sessions for potential and
existing exporters, including specific trade training for
youth, women and Aboriginals.-- Export Internship for Trade Graduates Offers
employment opportunities for university / college graduates
as well as in-house expertise to Atlantic Canadian
businesses wanting to capitalize on international markets.-- Investment Strives to attract and develop foreign
direct investment within the region through investment
research, investment intelligence dissemination, awareness
and promotion activities, lead identification and
development, and joint investment attraction projects with
the Atlantic provincial governments and other federal
partners.Atlantic Canada Tourism PartnershipThe Atlantic Canada Tourism Partnership is a nine-member
pan-Atlantic partnership comprised of ACOA, the four
Atlantic Canada Tourism Industry Associations, and the four
Provincial Departments responsible for tourism in New
Brunswick, Newfoundland and Labrador, Nova Scotia and
Prince Edward Island. It is dedicated to promoting
Atlantic Canada as a tourism destination of choice in key
American and international markets.Through AIP ─ The Second Wave, ACOA will work with its
partners to build on this success through continued
international marketing, joint planning with other Atlantic
tourism product organizations, and by encouraging greater
adoption of technology by tourism businesses.
