ACOA waiting to spend millions
Published Saturday January 3rd, 2009
There are hundreds of millions of dollars worth of projects sitting on the desk of Atlantic Canada Opportunities Agency Minister Keith Ashfield just waiting to boost the economy of this region.
That includes the new southside sports complex in Fredericton, a project at the local YMCA, a new water tower in New Maryland and other water projects in Oromocto, Minto and Chipman, Ashfield said in an interview Friday.
There are also projects at the University of New Brunswick through the Atlantic Innovation Fund, he said
"Right now on the books with ACOA, we probably have $150 million to $200 million worth of projects that have gone through the due-diligence process that we could see up and acted on very quickly," he said.
"That would help all of Atlantic Canada, rural and urban alike."
Ashfield became the minister of ACOA after winning the Fredericton riding in the fall federal election.
At almost the same time, the Canadian economy began to reel under the weight of a major economic downturn in the United States.
"There are some challenges, obviously, in the economy in the last two or three months (that) probably impacted us more severely than anyone would have dreamt," said Ashfield.
He said the impact of the economic slowdown in the United States started to affect New Brunswick's forestry sector back in 2006, when he was the provincial minister of natural resources in the former Tory government.
Ashfield said ACOA's role doesn't change depending on whether the economy is good or bad.
"We have our files that we deal with," he said. "We have our different programs.
"Due diligence is done on all those files."
He said that due diligence doesn't get more strict in an economic downturn.
"What we are looking at right now actually is an infusion hopefully of cash to spur on the economy, to accelerate our infrastructure programs and accelerate projects in Atlantic Canada to (boost) employment," he said.
But Charles Cirtwill, executive vice-president of the Atlantic Institute for Market Studies, said Ashfield should be looking at applications more closely in this economic climate.
"I think my advice for the ACOA minister would the same advice I give for each and every minister," he said. "Just because a project is ready to go doesn't mean the government should fund it."
Cirtwill said ACOA always says there has to be a business case for every project.
"That should be his mantra," he said. "He should have that printed in eight-inch block letter and put on his wall."
It would be a big mistake to throw away the rule book just to get the stimulus money flowing faster in an economic downturn, said Cirtwill.
Ashfield said he isn't seeing any big changes in proposals coming to ACOA in the few months he has been at the helm.
"Although I expect we will see a lot more proposals in the coming months," he said.
He said New Brunswick is busier than the other Atlantic provinces when it comes to ACOA applications.
"We are seeing some declines in a couple of the other provinces," said Ashfield. "But for the most part, people are fairly optimistic in Atlantic Canada, which is a bit surprising."
"We are not affected too much by the boom and bust mentality that we see in the west and the auto sector in Ontario."
He said he couldn't say how much of the $150 million to $200 million in ACOA projects are bound for New Brunswick or Fredericton.
"There are no shortages of projects, I can tell you that," he said. "It is just a matter of time and how we get involved in them all."
Ashfield also couldn't talk much about the $30 billion in economic stimulus funding that is expected the federal budget later this month.
The rule of thumb is that for every $1 billion in federal spending about $25 million comes to New Brunswick. That would put this province in line to receive $750 million.
Ashfield said a lot of that money could flow through ACOA.
He also said that Prime Minister Stephen Harper has already pledged to replace the $30 million a year in cuts that were made to ACOA in the 1990s.
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There is an abundance of existing infrastructures that need repairing....water and sewer lines, bridges etc. Alternative and green energy projects which help sustain environmental quality and reduce the use of petroleum, should also be in the forefront from Federal Gov't stimulus programs.
With most, mention of Infrastructure spending, usually means new Highway Building projects. I do not think N.B. needs more new roads ( which also return " favours " to the highway lobby ), we can't maintain what we currently have. Railways are the most environmental / fuel efficient means to transport goods. They pay fuel, property, sales taxes etc. yet receive little in return from gov't to enhance their infrastructure...that needs to change.
The Moncton Zoo has been in the news lately with the death of their beloved tiger TOMAR, last year thru old age, not yet replaced, and the loss of two baboons by accident. There is an opportunity to make the Moncton Zoo the number one attraction in this province and create economic recovery, giving jobs to many.
What is needed is the political will at all levels of governance.
Joseph Bonnevie Moncton NB joeb@nb.sympatico.ca
It seems that there are a lot of misses when it comes to companies that receive these grants,some closing shortly after receiving the money,others being sold, or merging with other companies to form different corporations. One in particular, HOSTOPIA, was given a multi million $$$ grant in June 07. Then it was sold at in June 08. What happens to the grant $$, & commitment to provide jobs? Is this forgiven or returned if the facility closes? In the sale announcement, no mention of ACOA help was mentioned,& nothing was mentioned about jobs staying in Miramichi. Often when a company is sold, unprofitable facilities are closed. Will this happen here? Will the grany $$ be returned?
It looks like some companies are taking advantage of this program for their own reasons.Before ACOA is allowed to throw away more $$ on wasteful ideas, steps to make sure they are solid & aboveboard, not a way to scam taxpayers, should be published.