News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Prime Minister announces additional funding for Eastern Ontario projects

August 3, 2006
Cornwall, Ontario

Prime Minister Stephen Harper today announced additional funding for projects in Eastern Ontario as part of the Eastern Ontario Development Program. This money will go toward business development, skills enhancement and finding new and better ways of using technological advances. Underlining the importance of this money, he said, “Funding these community-based initiatives will greatly benefit Eastern Ontario cities, including Cornwall.”

Speaking on the first day of the Conservative caucus retreat, the Prime Minister also emphasized the importance of the City of Cornwall to the Canadian economy – given its strategic location on a major transportation link to the United States. And he praised the work of Team Cornwall in promoting the City and what it has to offer businesses and investors.

“Cornwall is a great city enriched by the peaceful co-existence of English and French for hundreds of years and of great economic and strategic importance to Canada because of the Seaway International Bridge. The members of Team Cornwall should be commended for their work as goodwill ambassadors for this great city.”

The Prime Minister also outlined some of the accomplishments of his Government to date, and indicated some of the issues he would like Parliament to tackle in the upcoming session. For example, he cited the Government’s success in cutting taxes, noting, “Today, Ottawa is taxing less and that means more for you, your businesses and families.”

In closing, the Prime Minister emphasized the bright future he sees for both Canada and the region. And he extended his best wishes to Team Cornwall members as they seek to make their community better known across Canada, adding, “You’ve got a great story to tell, and I wish you the best of luck.”

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BACKGROUNDER

EASTERN ONTARIO DEVELOPMENT PROGRAM

ISSUE

The Eastern Ontario Development Program (EODP) is a $10-million, short-term contribution to a program aimed at addressing socio-economic challenges in rural Eastern Ontario. The EODP provides resources to Community Futures Development Corporations (CFDCs) which invest in a variety of initiatives focused on community economic development, small business growth, and job creation. Funding is for the period ending March 31, 2007.

ACTION

WHAT: The EODP takes an innovative, grassroots approach to economic development – one that encourages local stakeholders to work together to create a competitive and diversified regional economy. It supports community-based initiatives in five strategic areas:

• Business and Community Development;
• Skills Development;
• Attracting and retaining youth;
• Improving access to Capital; and
• Enhancing the use of technology.

The EODP is managed by FedNor, the regional economic development organization responsible for the Community Futures Program in rural Ontario. It is being delivered by the 15 CFDCs located throughout rural Eastern Ontario. And it seeks to foster business growth, job creation, and economic stability in rural Eastern Ontario.

The EODP is based on the Eastern Ontario Development Fund, introduced in October 2004 as a $10 million initiative supporting economic renewal in rural Eastern Ontario. A further $8.2 million in funding was subsequently provided, for total funding of $18.2 million over 17 months. The Eastern Ontario Development Fund sunsetted on March 31, 2006.

WHY: Rural Eastern Ontario needs this funding. A review of the development needs of rural Southern Ontario as a whole (including rural Eastern Ontario) identified significant socio-economic challenges which undermine the potential of much of the region. Compared to Southern Ontario in its entirety, rural Southern Ontario (including the EODP region) has lower population growth, lower participation rates and higher unemployment. Compared to urban Ontario, rural Southern Ontario suffers from a lack of economic diversification, resulting in a higher reliance on primary industries and offering less opportunity for employment in knowledge-based occupations.

The manufacturing sector in areas of rural Eastern Ontario has experienced significant lay-offs since 2005. For example, the Stormont, Dundas & Glengarry region suffered the loss of more than 3000 manufacturing jobs. Domtar, the largest and highest-paid employer in Cornwall, closed its pulp and paper mill on March 31, 2006. A series of lay-offs at this facility, beginning in spring 2004, has resulted in a total loss of 1128 jobs.

Rural Eastern Ontario communities do not have the benefit of Regional Development programming, which, in all other provinces, is available to support economic and business development not only in rural communities, but also in urban centres such as Montreal, Calgary and Vancouver. There is some limited provincial funding available for projects through funding programs of key Ontario provincial ministries, such as Agriculture, Food and Rural Affairs and the Ontario Trillium Foundation. The EODP funding allows rural Eastern Ontario communities to be successful in levering the available provincial funds.

RESULTS

An independent formative evaluation of the Eastern Ontario Development Fund received in November 2005 was positive and concluded that the Program is:

• Relevant to the economic development needs of the communities in Eastern Ontario and uses an appropriate service delivery model is appropriate;
• Highly incremental and cost-effective and does not overlap or duplicate other government programs; and
• Successful in achieving its intended outcomes.

This funding is important since it will allow rural Eastern Ontario communities to continue aggressively pursuing economic opportunities so they can take charge of their own economic future.

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The Prime Minister’s Office - Communications
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