Description

Support Atlantic Canada’s economic growth, wealth creation and economic prosperity through inclusive clean growth and by building on competitive regional strengths. Help small and medium-sized enterprise (SME) growth through direct financial assistance and indirectly through business support organizations. SMEs become more innovative by adopting new technologies and processes and by pursuing new avenues for expansion and market diversification to compete and succeed in a global market.

Quality of life impacts

This core responsibility most closely relates to the “Prosperity” domain of the Quality of Life Framework for Canada and the indicators of gross domestic product (GDP) per capita, productivity, investment in in-house research and development, firm growth and employment. This core responsibility will also support the “Environment” domain.

Results and targets

The following tables show, for each departmental result related to Economic Development in Atlantic Canada, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved in 2024-25.

Plans to achieve results

In 2024-25, ACOA will be the main sponsor of place-based investments in Atlantic Canada to build a stronger and more resilient economy that works for everyone. This will help firms scale up, develop new markets and adopt new technologies and processes to be more productive and sustainable. Activities will also help Indigenous, rural and urban communities advance and diversify their economies in an inclusive way.

Through its promotion of Atlantic issues and suite of programming, ACOA’s investments will help lay the foundation for Atlantic Canadians to seize economic opportunities provided by the global transition to net-zero and to thrive in good-paying jobs. ACOA will help its funding recipients navigate labour shortages, uneven supply of goods and services, and the region’s ability to attract world-class investments. ACOA will also champion strategic priorities and economic opportunities in Atlantic Canada with advocacy and pathfinding in national policies and programs.

The Agency will maximize the potential of its suite of programming, including the Regional Economic Growth through Innovation (REGI) Program, one of the Government of Canada’s four flagship platforms for economic development. It will also enhance competitiveness and growth through technology development, commercialization, adoption and adaptation, productivity improvements, and market expansion. Broad-based support under REGI will be complemented by more targeted recovery measures using initiatives such as:

• the Black Entrepreneurship Program National Ecosystem Fund to strengthen capacity among Black-led non-profit business support organizations;
• the Canada Coal Transition Initiative – Infrastructure Fund to support a just and sustainable transition away from coal-powered plants in affected rural communities in Nova Scotia and New Brunswick;
• the Tourism Growth Program to help diversify regional economies by investing in tourism products and experiences that will encourage visitation to and within Canada.

ACOA’s key priorities and its Minister’s mandate letter commitments are guiding principles in the achievement of its core responsibilities through the three departmental results below:

Departmental result 1: Businesses are innovative and growing in Atlantic Canada.

The Agency will work with SMEs to capitalize on sector strengths and capacities, develop and diversify markets, and scale their businesses by:

• helping businesses at various stages of development – from start-up to high growth – to adapt and green their operations, accelerate their growth, scale up, enhance their productivity, optimize their supply chains, and be competitive in domestic and global markets. This includes leveraging company-oriented growth plans under the Accelerated Growth Service, led by ACOA in Atlantic Canada and involving other federal and provincial organizations, by building a pipeline of clients with strong potential for growth and providing them with focused sales and export support;
• accelerating digitization and the use of transformative technologies in Atlantic Canada. This will ensure businesses have the capacity to implement advanced manufacturing solutions to be more innovative, agile and resilient in response to changing market conditions. This includes increasing the use of e-commerce to facilitate business transactions, better meet consumer demand, generate added sales and increase efficiency;
• enabling and diversifying growth through exports in key industry sectors, ensuring a greater presence for Atlantic Canadian companies in key markets either in person or through e-commerce and virtual trade, and promoting foreign direct investment with the Atlantic Trade and Investment Growth Strategy;
• delivering the new three-year Tourism Growth Program in Atlantic Canada to support the tourism industry and contributing to the Federal Tourism Growth Strategy that charts a course for long-term growth, investment and stability. ACOA will also collaborate with federal, provincial and industry partners to implement the renewed Atlantic Canada Agreement on Tourism, renewed on October 1, 2023;
• advocating and partnering to foster the participation of Atlantic Canadian companies in emerging clean technologies such as offshore wind, energy storage and small modular reactors, and supporting Atlantic Canadian companies in traditional energy industries as they transition to a low-carbon future;
• positioning Atlantic Canadian firms to leverage major Canadian Coast Guard and defence procurement through Canada’s Industrial and Technological Benefits Policy through networking between regional stakeholders and global aerospace and defence firms.

Departmental result 2: Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada.

The Agency will help businesses invest in new technologies to improve their efficiency, productivity, competitiveness and growth, notably by:

• supporting the greening of the region’s economy through industrial decarbonization with new clean technologies and products. Activities will leverage the region’s significant potential for renewable energy, electrification and energy efficiency while also enhancing their competitiveness in the global marketplace;
• fostering investments in R&D among Atlantic Canadian firms to enhance their productivity and capacity to innovate to help create industry-advancing solutions for some of the biggest sectoral challenges, and to grow trade through partnerships between innovators;
• creating, growing and nurturing inclusive regional ecosystems that support business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness by convening innovation ecosystem stakeholders. This includes supporting collaboration between SMEs and the region’s business incubators and accelerators, research organizations and post-secondary institutions;
• helping advance energy innovation, including supporting interprovincial transmission lines to connect surplus clean power to regions transitioning away from coal to help transform how Atlantic Canada’s economy and communities are powered.

Departmental result 3: Communities are economically diversified in Atlantic Canada.

The Agency will invest in inclusive growth, support the launch and growth of SMEs, and invest in community capacity to plan, attract, hire and retain skilled talent to support a clean and sustainable economy. ACOA will:

• promote diversity and inclusion to enhance SME competitiveness, by delivering support for under-represented entrepreneurs and addressing gaps in the ecosystem to help them grow their businesses and pursue new opportunities;
• support local and regional economic diversification in communities affected by the transition to a net-zero economy;
• reach a larger number of Indigenous businesses by supporting efforts that target capacity building, pathfinding to national programs to leverage support, and increasing knowledge and awareness by convening federal and provincial governments, stakeholders and community partners through joint participation in key committees, initiatives and communities of interest;
• help non-profit, third-party organizations such as Community Business Development Corporations support SMEs in small, rural and remote communities;
• help communities address labour shortages by acting as a pathfinder, notably supporting federal and provincial partners with better labour market matches, accelerated transitions and the support of immigration and settlement services. This includes working with provincial and federal partners to support the inclusive workforce of the future by improving school-to-work transitions, helping to build new skills in growing sectors, increasing digital skills and leveraging initiatives such as the Atlantic Immigration Program.

Key risks

ACOA has identified two main risks to fulfill its mandate. The first is a risk that the Agency’s economic development programming may be affected by external factors that contribute to uncertainties for economic growth in Atlantic Canada. The second is a risk that the capacity of ACOA’s stakeholders – other governments, partners, communities and clients – for the identification, development and successful implementation of strategic projects may not be sufficient to support the optimal achievement of ACOA’s program objectives.

ACOA will continue to capitalize on the flexibility of its programs, including emergency funding, on its advocacy role, and on its integrated planning to mitigate potential risks associated with an evolving economy and the depth of regional stakeholders’ capacity. The Agency will also conduct analyses on regional economic issues and collaborate with stakeholders to foster client and community capacity to help achieve targets under key federal priorities.

Related government priorities

Program inventory

Economic Development in Atlantic Canada is supported by the following programs:

• Inclusive Communities
• Diversified Communities
• Research and Development, and Commercialization
• Innovation Ecosystems
• Business Growth
• Trade and Investment
• Policy Research and Engagement

Supporting information on planned expenditures, human resources, and results related to ACOA’s program inventory is available on GC Infobase.

Description

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Outside of these services, ACOA created the Office of Inclusion, Equity and Anti-Racism. This office is a neutral entity that provides leadership, strategic direction, policy advice, professional development, and expertise with respect to inclusion, equity and anti-racism within the Agency. It will engage external stakeholders in supporting corporate inclusion initiatives to remove systemic barriers.

Plans to achieve results

In 2024-25, ACOA’s Internal Services will continue to support sustainable change in a post-pandemic public service. This includes being more inclusive, equitable and accessible, and aiming to be free of racism, harassment and discrimination. Ultimately, these efforts will support the Agency’s standard of excellence for Atlantic Canadians through effective programs and services. To do so, ACOA will:

• implement the second year of its new 2023 – 2028 Employment Equity and Anti-Racism Action Plan to promote and support a diverse and inclusive workplace;
• continue to implement the Government of Canada’s Direction on the Prescribed Presence in the Workplace (PPW) to ensure a safe, healthy and flexible hybrid work environment for Agency staff, with a particular emphasis on change management to support psychological health and safety. Risks will be analyzed and mitigated, and the necessary protocols, directives, equipment and support will be provided;
• prioritize mental health and wellness by supporting activities and initiatives aligned with the Clerk’s Call to Action and other government-wide strategies such as the “Nothing Without Us” accessibility strategy, the Federal Public Service Workplace Mental Health Strategy, and the Workplace Harassment and Violence Prevention Program;
• develop employee leadership at all levels with the implementation of a new leadership initiative with specific considerations for employees from equity-seeking groups, including those who identify as Indigenous peoples, visible minorities, and/or persons with disabilities;
• continue to act on ACOA’s Official Languages Action Plan, which aims to position ACOA as a leader in respecting the Official Languages Act and its obligations as well as supporting the advancement of the Official Languages Minority Communities in Atlantic Canada;
• oversee the implementation of the remaining features of the Agency’s Grants and Contributions Program Management business system and the associated client web portal;
• support the Government of Canada’s latest update of its Digital Ambition, notably by:
  • deploying modern tools and devices to further improve collaboration in a hybrid work model;
  • continuing efforts to transition legacy tools to cloud;
  • implementing new tool capabilities to modernize information management practice in an increasingly digital environment; and,
  • continuing to explore and adopt new capabilities to facilitate information sharing and collaboration with other federal departments.

Related government priorities

Table 5: Actual spending summary for core responsibilities and internal services ($ dollars)

The following table shows information on spending for each of ACOA’s core responsibilities and for its internal services for the previous three fiscal years. Amounts for the current fiscal year are forecasted based on spending to date.

Table 6: Budgetary planning summary for core responsibilities and internal services (dollars)

The following table shows information on spending for each of ACOA’s core responsibilities and for its internal services for the upcoming three fiscal years.

Funding

The following graph presents planned spending (voted and statutory expenditures) over time.

[Access the bar graph template on GCPedia]

Graph: Actual and planned spending

2024-25 Departmental Plan Actual and Planned spending

This trend graph illustrates ACOA’s actual spending for 2021-2022 and 2022-2023, and planned spending for 2023-2024 through 2026-2027, indicating voted and statutory expenditures.

In 2021-2022, voted spending was $434 million and statutory spending was $9 million. Total $443 million.

In 2022-2023, voted spending was $424 million and statutory spending was $9 million. Total $433 million.

In 2023-2024, voted spending will be $472 million and statutory spending will be $9 million. Total $481 million.

In 2024-2025, voted spending will be $377 million and statutory spending will be $9 million. Total $386 million.

In 2025-2026, voted spending will be $333 million and statutory spending will be $9 million. Total $342 million.

In 2026-2027, voted spending will be $241 million and statutory spending will be $9 million. Total $250 million.

Fiscal year	Total	Voted	Statutory
2021-22	443	9	434
2022-23	433	9	424
2023-24	481	9	472
2024-25	386	9	377
2025-26	342	9	333
2026-27	250	9	241

Explanation of figure 1

Actual spending: 2021-22, 2022-23. Planned spending: 2023-24, 2024-25, 2025-26 and 2026-27.

Planned spending for 2024-25, 2025-26 and 2026-27 does not include amounts stemming from Budget 2024 as well as the replacement of the current recycling mechanism expected in 2026-27 and ongoing through Budget 2026.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides an overview of ACOA’s operations for 2023-24 to 2024-25.

The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations with the requested authorities, are available on ACOA’s website.

Human resources