14 May 2009
Miramichi, New Brunswick
Atlantic Canada to receive $100.4 million in support through the new Community Adjustment Fund.
Canadian workers, families and businesses in communities that are hardest hit by the global recession will be able to pursue new economic opportunities in their communities thanks to Community Adjustment Fund, a major job creating investment contained in the Harper Government’s Economic Action Plan.
The Community Adjustment Fund will deliver a total of $1 billion over the two years to local economies throughout Canada. While in Miramichi, New Brunswick, the Honourable Keith Ashfield, Minister of State for the Atlantic Canada Opportunities Agency (ACOA), today officially launched the CAF program in Atlantic Canada. Atlantic Canada’s share of this funding will be worth $100.4 million.
“Resource and manufacturing industries remain the backbone of the local economy for many communities across Atlantic Canada. These communities need to know we will stand with them through these difficult times. That’s why we are responding with unprecedented urgency to ensure funding from this Community Adjustment Fund starts flowing as quickly as possible,” said Minister Ashfield.
Projects to be funded could include reforestation activities, property redevelopment, and innovative programs to help communities take advantage of new business opportunities.
The Community Adjustment Fund will also build on the ongoing work of existing federal programs and initiatives such as the $1-billion Community Development Trust, the $170-million fund for forest products market diversification and innovation, and programs delivered by Canada’s regional economic development agencies, including ACOA.
Minister Ashfield also announced the first project for New Brunswick under the Community Adjustment Fund, developed in consultation with the New Brunswick provincial government and the industry. The federal government will provide up to $7 million over the next two years to a silviculture initiative designed to create jobs and short- term stimulus in forestry-dependent communities. A total of $3.5 million will be invested in Crown land activities with the other $3.5 million to be allocated to private land activities.
This investment will have immediate impact in the 2009 growing season, supporting such activities as tree planting, thinning and site preparation. It will also increase forest carbon storage capacity and protect the ecological and economic sustainability of the province’s forests.
“Forestry is critically important to the Atlantic economy, employing almost 28,000 people in mostly rural areas. The industry accounts for 4.5 per cent of Atlantic Canada’s GDP and is the second largest source of export earnings. New Brunswick’s forest industry alone accounts for 63 per cent of the region’s forestry industry output and nearly 13,000 jobs,” Minister Ashfield said.
Minister Ashfield also noted that the CAF is one of the tools the government has at its disposal to address challenges in other hard-hit industries in the region such as the lobster fishery, and that the federal government is working with Atlantic provincial governments and the industry to develop measures in response to the downturn in the lobster fishery.
The total CAF allocation for Atlantic Canada is $100.4 million over two years and will be delivered in the region by ACOA. In keeping with the national program, each Atlantic province will receive a base amount of $10 million, with the balance of funding allocated on a per capita basis. The provincial allocations are: $28.7 million for New Brunswick; $33.6 million for Nova Scotia, $22.7 million for Newfoundland and Labrador and $13.3 million for Prince Edward Island.
Non-profit organizations; post-secondary institutions; individuals; co-operatives; small-and-medium sized commercial, duly incorporated, for-profit enterprise; First Nations governments; and provincial and municipal governments that have eligible projects that can be completed before March 31, 2011 are invited to submit proposals.
Individuals interested in learning more about how to apply for funding under the Community Adjustment Fund are encouraged to contact their local ACOA office. For more information regarding the application process, community criteria, and timelines to access funding from the Community Adjustment Fund will be available on ACOA’s website at www.acoa-apeca.gc.ca.
FOR BROADCAST USE:
The Government of Canada is providing immediate economic stimulus to communities hit hardest by the global recession with the new $1 billion Community Adjustment Fund, including $100.4 million for Atlantic Canada. The fund, part of the federal government’s Economic Action Plan, will help create jobs and maintain employment in communities across Canada.
ACOA Minister Keith Ashfield today announced that the CAF program is now open for business in Atlantic Canada and will seek to get funds to communities as quickly as possible.
Those eligible to apply include: non-profit organizations; post-secondary institutions; individuals; co-operatives; small-and-medium sized commercial enterprises; First Nations governments; and provincial and municipal governments. Projects must be completed before March 31, 2011. Interested applicants are asked to contact their nearest ACOA office.
Erin Filliter
Office of the Minister of State (ACOA)
613-941-7241
Richard Gauthier
Coordinator, Parliamentary Affairs and Media Relations
ACOA
506-851-6773
Community Adjustment Fund - Atlantic Canada
The global recession is causing painful adjustments for many communities across Canada. Plummeting global demand and declining prices for forest, mineral and energy commodities and products have resulted in significant production cutbacks and job losses.
Following extensive national pre-budget consultations, the Government of Canada is taking steps to help stimulate the economies of communities hard hit by the economic downturn. Canada’s Economic Action Plan provides $1 billion over two years for the Community Adjustment Fund (CAF), which will help create jobs and maintain employment in affected communities.
Program Design
The Community Adjustment Fund is being delivered across Canada by the Government of Canada’s regional economic development agencies through new initiatives, existing programs and bilateral agreements with the provinces and territories.
Five federal departments and regional economic development agencies will administer the fund:
- Atlantic Canada Opportunities Agency (ACOA);
- Economic Development Agency of Canada for the Regions of Québec (CED-Q);
- Industry Canada (IC);
- Western Economic Diversification (WD); and,
- Indian and Northern Affairs (INAC).
Industry Canada and INAC are delivering the Fund on a transitional basis until the new Southern Ontario Development Agency and Northern Development Agency are operational.
A base amount of funding support is being provided to each province and territory. The balance of the funding is allocated regionally on a per capita basis.
Regional Allocation — $1-Billion Community Adjustment Fund
- Atlantic Canada $100.4M (ACOA)
- Quebec Region $211.6M (CED-Q)
- Central Canada $348.9M (IC)
- Western Canada $306.3M (WD)
- Northern Canada $32.8M (INAC)
In order to be eligible for funding under this initiative, projects will have to meet the following criteria:
- They can start quickly;
- They can be completed within the two-year timeframe of the Community Adjustment Fund with no obligation for continued spending; and
- They are incremental.
Priority will be given to projects that:
- Generate immediate employment;
- Create the most near-term employment per dollar of federal investment;
- Leverage funds from provinces, territories and other funding partners;
- Build on partnership arrangements already in place and existing programs; an
- Provide a legacy of longer-term ecological and/or economic benefits.
A community will be eligible under this initiative if its population is 250,000 or lower and it meets the following other criteria:
- It has experienced major layoffs resulting in significant job losses as a percentage of total employment within the community; and
- There is a lack of alternative employment opportunities within the community to offset job losses.
OR
- The year-over-year increase in Employment Insurance beneficiaries is equal to or greater than 20 percent.
Priority in the selection of projects in eligible communities will be given to rural, single-industry communities.
Program Eligibility in Atlantic Canada
In Atlantic Canada, CAF funding will be delivered through existing ACOA programs. Eligible applicants can include, for example:
- - Non-profit organizations;
- - Post-secondary institutions;
- - Individuals, for purposes of undertaking research, or those engaged in operating a business;
- - Co-operatives;
- - Small-and-medium sized commercial, duly incorporated, for-profit enterprises;
- - First Nations governments;
- - Provincial government departments, agencies and Crown corporations; and,
- - Municipal Governments and organizations created by them.
The Government of Canada, through ACOA, will provide contributions of up to 80% of eligible costs for non- commercial projects and, for commercial projects, up to 50% of eligible costs for capital costs, as well as 75% of eligible costs for non-capital projects.
Application Process in Atlantic Canada
Eligible applicants must communicate with the ACOA office nearest them prior to submitting an application form.
