:
Good afternoon, Mr. Chair and committee members.
First, thank you for inviting us to appear before you today on behalf of the Federal Economic Development Agency for Southern Ontario, more commonly known as FedDev Ontario.
My name is Nancy Horsman; I am the president of the agency. I am accompanied by my colleagues Alain Beaudoin, vice-president of Policy, Performance and Partnership Management, and Frank Lofranco, vice-president of Business, Innovation and Community Development.
[English]
FedDev Ontario was created in 2009 with a five-year mandate to respond to the effects of the global economic downturn in southern Ontario. In budget 2013 the agency was renewed for a further five-year mandate, which ends at the end of March 2019. FedDev Ontario is headquartered in Waterloo, with offices across the region in Ottawa, Toronto, and Peterborough, and it employs approximately 230 full-time equivalent staff.
Southern Ontario is a unique region and a key contributor to the Canadian economy. The region is home to approximately a third of Canada's population and accounts for more than a third of national employment, gross domestic product, and exports. Southern Ontario is also home to key clusters, including automotive, finance, information, and communications technology, and life sciences, and many of these are supported by incubators and accelerators.
Ontario is Canada’s research and development engine. Nearly half of all Canadian private sector R and D is performed in Ontario. Ontario also has the highest rate of university education attainment in the country and the largest number of colleges and universities.
[Translation]
Nevertheless, the region has not been immune to the pressures of the changing global economy. Similar to other advanced economies, the region is undergoing a shift towards a growing service-oriented and knowledge-based economy. Many of the region’s traditionally strong industries, such as manufacturing and automotive sectors, are in transition.
And while economic conditions in the region have improved in recent years, ongoing challenges remain.
[English]
FedDev Ontario’s programs and services are meant to leverage the region’s competitive advantages to address these challenges. Our core mandate is to strengthen southern Ontario’s economic capacity for innovation, entrepreneurship, and collaboration, and to promote the development of a strong and diversified southern Ontario economy.
[Translation]
Our programs and services are well positioned to support the Government of Canada's priorities, including Canada’s innovation agenda, and to support communities in transition. FedDev Ontario is working to help partners in the region to drive economic growth; support firms’ ability to adapt, become more productive and access new markets; and invest in projects that create good, well-paying jobs.
[English]
In delivering on its mandate, FedDev Ontario plays a number of key roles. We fund targeted projects, along with other partners, to stimulate the Ontario economy. We deliver national programs in our region. We provide business-related services to firms and other stakeholders. We bring together key stakeholders to improve the performance of the Ontario economy, playing a convenor role. Finally, we act as a champion for the region of southern Ontario.
We were provided a budget of $920 million over our current five-year mandate to carry out these roles. The agency's core programs are the southern Ontario prosperity initiatives, the advanced manufacturing fund, and the eastern Ontario development program, each of which I will explain briefly.
The southern Ontario prosperity initiatives include four initiatives that cover a range of business needs in the region.
Through the investing in business innovation initiative, the agency supports early-stage companies in areas such as access to capital, mentorship, and work with incubators. Through the investing in business growth and productivity initiative, the agency helps small and medium-sized enterprises scale up capacity, access export markets, and adopt technology to become more productive.
Through the investing in commercialization partnerships initiative, the agency invests in projects that strengthen clusters and/or create innovation, always with the goal of commercializing new technologies or processes. Through the investing in regional diversification initiative, the agency supports communities to leverage their unique assets, diversify their economies, improve competitiveness, and attract investment and jobs.
[Translation]
The advanced manufacturing fund helps manufacturers adopt cutting-edge technologies which strengthen their position in global supply chains.
To serve the ongoing economic challenges of youth exodus and the transition of traditional sectors in eastern Ontario, the agency has a program called the eastern Ontario development program. This program promotes business development, community innovation and strategic collaboration and is delivered through the region’s Community Futures Development Corporations.
[English]
FedDev Ontario, like other regional development agencies, plays an important role as a federal delivery agent for national programs, specifically, the community futures program, the economic development initiative, and the Canada 150 community infrastructure program.
The community futures program helps the small businesses that are the cornerstone of our rural communities to seize opportunity and expand through access to loans, training, and networks.
The economic development initiative focuses on strengthening innovation, entrepreneurship, partnerships, and diversification of economic activities in official language minority communities. In southern Ontario, the EDI program is designed to meet the needs of Ontario's francophone communities.
The Canada 150 community infrastructure program is being delivered by regional development agencies across the country to celebrate the 150th anniversary of Canada's Confederation in 2017. This national program supports the rehabilitation or improvement of existing community infrastructure. This includes projects that support indigenous communities and that promote a clean growth economy. FedDev Ontario is delivering $88.8 million of CIP 150 funding in southern Ontario.
FedDev Ontario also delivers business-related services through industrial and technological benefits activities and Canada Business Ontario, or CBO, which is part of the Canada Business Network.
FedDev Ontario provides support to the southern Ontario aerospace and defence sector and facilitates participation in Canadian defence and security procurement by leveraging opportunities under the industrial and technological benefits policy.
Canada Business Ontario provides information through its online, contact centre, and outreach activities to people across Ontario on how to start, manage, and grow a business.
[Translation]
FedDev Ontario's contribution to achieving positive economic outcomes is realized not only through co-investing in projects and delivering services, but also through acting as a convenor and champion for the region.
The agency convenes key regional players to seek a common vision and encourage the development of coordinated plans. We actively promote the assets in the region. The agency also provides regional intelligence by playing a role as the bridge to and from Ottawa.
[English]
Since its creation in August 2009, FedDev Ontario has committed more than $1.6 billion, which is estimated to have resulted in more than $2.4 billion in additional leveraged funds. This includes more than 325 projects with small and medium-sized enterprises, more than 50 projects with incubators and accelerators, and more than 200 projects with manufacturers. Those are just our direct investments. We also do investments through third-party delivery with the Canadian Manufacturers and Exporters and the Yves Landry Foundation.
This fiscal year, FedDev Ontario is on track to fully spend its allocated program funding of $227.7 million, using $25.7 million of operating funding. For the remainder of our mandate, the agency will continue to assess proposals, deliver programs, and monitor and measure performance of its portfolio of investments. We will continue to provide business-related services and act as a convenor and champion while planning for the renewal of our mandate.
[Translation]
In closing, I want to thank you for the opportunity to appear before you today.
My colleagues and I welcome any questions you may have.
:
Thank you, Mr. Chairman. It's a pleasure to be here today.
Good afternoon. My name is Doug Zolinsky. I am the acting assistant deputy minister for Western Economic Diversification's regional office in Saskatchewan. My colleague James Meddings is our ADM of policy and strategic direction. Rhonda Laing is our director for policy, planning and external relations for the Saskatchewan region.
I will speak to the economic conditions in Saskatchewan, but I should first note that Western Economic Diversification Canada, or WED, has a strong presence in Saskatchewan and close ties with provincial counterparts, Saskatchewan's business community, indigenous organizations, and other stakeholders. This supports the department's role in providing regional intelligence and strategic advice, convening regional stakeholders, and supporting regionally sensitive economic development.
Let me tell you a bit about Saskatchewan. Saskatchewan has a total population of 1.14 million. The population is young, and it has been growing since 2007, reversing a decade-long decline and breaking away from relatively flat population growth since the 1930s. Saskatchewan has a large indigenous community. As of the last census count in 2011, 15.6% of Saskatchewan's population was indigenous, and first nations children aged 14 and under represent one-fifth of all children in the province.
Saskatchewan has a diverse range of natural resource endowments, including oil and gas, potash, and uranium, and Saskatchewan is also Canada's largest agrifood producer. Natural resources are key economic drivers. The province's largest industry is the oil and gas sector, which accounts for roughly 15% of Saskatchewan's GDP. Collectively, primary resource production accounts for roughly 27% of the province's real GDP, which totalled $58.5 billion in 2015.
Saskatchewan has undergone significant changes in the past decade. Until recently, Saskatchewan was enjoying particularly strong economic growth due to a commodity boom starting around 2002. This was related to rapid industrialization in China and other developing countries, which increased demand for raw materials and Saskatchewan's resources. A number of factors, including slowing growth in China and other emerging economies and strong global supply, have since put downward pressure on the price of a number of key commodities for Saskatchewan, including oil and potash.
Lower commodity prices pose a real challenge for Saskatchewan. In 2015 Saskatchewan's real GDP declined by 1.4%, largely as a result of low oil prices. From 2014 to 2015, capital expenditures fell 17.3%, with the largest decreases occurring in the mining and oil and gas sectors. Compared to two years ago, there are fewer than half as many drilling rigs active in the province, with 27 now compared to 68 in 2014, and strong supply has resulted in hundreds of layoffs in the mining sector, where prices are down from pre-recession highs.
Saskatchewan's unemployment rate is currently 6.3%, compared to 7% for Canada as a whole. While Saskatchewan's unemployment rate remains relatively low, it has increased substantially over the course of 2015 and 2016 from just 3.8% in 2014, largely as a result of low crude oil prices. As of August, there were 42,000 unemployed individuals in the province, compared to 31,000 at the same time two years ago.
Due to continued low oil prices, growth is expected to be constrained in 2016. However, Saskatchewan's diverse resource portfolio has helped to limit somewhat the impact of oil prices on the province's economy, and Saskatchewan is expected to experience the shortest and least severe recession among the oil-producing provinces.
Saskatchewan is heavily reliant on exports, and access to markets is critical to Saskatchewan's well-being. In 2015 Saskatchewan's merchandise exports totalled $32.6 billion. On a per capita basis, Saskatchewan has the highest exports among all the provinces, with nearly $29,000 in exports for every Saskatchewan resident in 2015.
The United States accounts for the majority of Saskatchewan's merchandise exports, but exports to developing markets, including China and India, are growing in importance. Between 2005 and 2015, China's and India's share of Saskatchewan's exports more than doubled. Collectively, these two countries received 16% of Saskatchewan's exported goods in 2015.
Reflecting the importance of natural resources, Saskatchewan's exports are dominated by commodities. The province's top export products are: crude petroleum oils, potash, canola seeds, lentils, wheat, peas, and uranium. Together, these accounted for roughly three-quarters of total merchandise exports in 2015.
Saskatchewan's exports have been supported by advancements in Saskatchewan's traditional sectors, such as the adoption of advanced farming techniques and the development of new crop varieties. For example, Saskatchewan is now a key producer of pulse crops, which have become important exports and cash crops. In 2015 lentils and dry peas accounted for 23.9% of all crop cash receipts in the province.
Saskatchewan is also a leader in innovative sectors related to its traditional resource strengths. The province is home to a vibrant agriculture biotechnology cluster with expertise in crop development, vaccines, and the development of new bioproducts. This cluster helps to position Saskatchewan producers to address growing global demand for food and other products such as bioenergy. Saskatchewan also boasts a highly innovative energy cluster and is a leader in enhanced oil recovery and carbon capture and storage, helping to increase production and lower costs for producers.
In the agricultural sector, Saskatchewan has translated its traditional strengths and expertise into value-added manufacturing, including food processing and agricultural equipment manufacturing. Saskatchewan is also establishing leadership in other emerging sectors such as nuclear science, creating conditions for the province to capture more of the uranium value chain and to capitalize on opportunities related to medicine and power generation.
Saskatchewan faces a number of economic challenges.
Saskatchewan's economic reliance on natural resource development exposes the province to economic downturns and commodity price volatility, or boom and bust cycles. Saskatchewan exporters are highly dependent on the U.S. market despite growth in developing markets. Saskatchewan innovators face challenges in accessing the capital they need to get their ideas to market, and Saskatchewan has low levels of research and development compared to competing jurisdictions.
Saskatchewan's indigenous population is highly entrepreneurial. Private investment in indigenous economic growth in Saskatchewan is increasing. However, there are significant socio-economic gaps between Saskatchewan's indigenous and non-indigenous residents. Closing these gaps is critical, both to the well-being of Saskatchewan's indigenous residents and to the province's overall future economic prosperity.
WED's programs and activities are well aligned with challenges and opportunities facing Saskatchewan. Through the western diversification program and the western innovation initiative, WED makes strategic investments to grow and diversify Saskatchewan's economy. Through its support for the Western Canada Business Service Network, WED also provides access to services and capital, which helps small and medium-sized enterprises to innovate, grow, and create jobs.
It is important that Saskatchewan's firms are able to compete internationally and that they continue to increase their penetration of global markets. Through its investments, WED helps western Canadian small and medium-sized enterprises build their capacity to engage in international business opportunities and in emerging markets. WED also raises awareness of Saskatchewan and western Canada's key strengths and sectors in international markets to promote trade and attract foreign investment to the region.
Improving access to capital and increasing investment in research and development can help to support innovation and increase value-added production in the province. WED's investments support the development and commercialization of key innovative products and processes, and the department has helped to grow key emerging sectors in Saskatchewan, including biotechnology and value-added food processing.
Improving economic outcomes for Saskatchewan's indigenous population can help to improve economic output and provide broader community and societal benefits in the province. WED's support for indigenous skills and training and economic growth can help to increase indigenous labour market participation and improve living standards in Saskatchewan.
We are proud of our role in Saskatchewan and will continue to work with key partners in the province to help Saskatchewan seize economic opportunities and increase prosperity in the province.
Thank you.
:
Thank you, Mr. Chairman.
Mr. Zolinsky, Mr. Meddings, and Ms. Laing, thank you for coming here today. We've had and continue to have very interesting presentations from regional development agencies across the country.
As I'm sure you were informed, we're in a pre-budget process, and I think it's no secret that one of the things we're trying to get a handle on is how people see growth and innovation emerging from all of the regions of Canada, and how we best leverage our strengths and, in fact, create new strengths across the country.
Your presentation gave us a very interesting overview of the Saskatchewan economy. Certainly, I think it's fair to say Saskatchewan has been on a bit of a run over the past decade or so, largely driven by high commodity prices. However, not unlike Alberta and some other energy-producing provinces, such as Newfoundland and Labrador, it's not immune to these kinds of shocks. I know that potash prices have been lagging somewhat, based on competitor activity around the world, among other things, and food is one of those very volatile and obviously also cyclical things.
To start, where do you see diversification coming into the Saskatchewan economy? Where do you intend to place your emphasis in terms of programming dollars and in terms of your planning and strategy? How do we squeeze more growth out of an economy that, by your own description, is highly exposed to the vagaries of commodity pricing?
:
Thank you for that question.
First off, I'll note that Saskatchewan does see itself diversifying its economy, based on traditional strengths that already exist in the natural resource base.
First, I would note agriculture. There are significant chunks of infrastructure now in place in Saskatchewan, particularly around the University of Saskatchewan. We have Canada's largest investment in a science instrument with the Canadian Light Source.
As well, we have VIDO, the Vaccine Infectious Disease Organization, and VIDO-InterVac.
We also have the Global Institute for Food Security. That institute itself is also propped up by $35 million, I believe, or $25 million, from PotashCorp of Saskatchewan, to invest in companies, really, to do things in the ag-bio sector. We have organizations like Ag-West Bio present, promoting the biotech sector across the world globally, and WED has been supportive of Ag-West Bio.
The province has also recognized agriculture as a key sector that it's going to be supportive of. In fact, they refer to their food, fuel, and fertilizer trifecta as to where they're going to play. Certainly that's one area.
Also, in resource extraction there is beginning to be a recognition that there is value in the development of extraction of resources to enhance oil recovery methods in reducing costs. Water reclamation around drilling and mining sites is key. Recently, WED supported a mine recovery facility whereby they're testing how to reclaim old mine sites. That is another cost savings piece for the mining industry itself.
There are a number of initiatives like that. We could probably provide a pretty strong list, but certainly there are things that are occurring in recognition that the commodity cycle needs to be broken.
[Translation]
Good afternoon, ladies and gentlemen.
[English]
My name is France Guimond, and I am the acting assistant deputy minister for the Manitoba region. With me today are James Meddings, whom you have met, our ADM for policy and strategic direction, and Ryan Dunford, acting director general for policy and strategic direction.
You have just heard from my Saskatchewan colleagues. I recognize that we have some similarities in our social and economic structure, and consequently there may be some overlap in our discussions. I will, however, focus on the unique aspects of the Manitoba economy.
[Translation]
I will focus on the unique aspects of the Manitoba economy.
[English]
Manitoba is home to 1.3 million people. It has a balanced economy across industries, a growing population, a vibrant indigenous community, and the largest francophone community west of Quebec.
As diverse as the economy is with respect to industries, Manitoba is unique in that almost two-thirds of the population and economic activity are concentrated in one city, and that's Winnipeg.
In terms of our current economic conditions, Manitoba is recognized as the western province with the greatest diversity of industrial sectors. No single industry holds more than a 12% share of the approximately $54.8-billion provincial GDP. This diversity is credited with providing the basis for slow and steady growth in good economic times. In addition, it has enabled Manitoba to ride out economic recessions. Manitoba is the least resource-dependent province in western Canada, and its private sector is dominated by small and medium-sized firms.
At the same time, Manitoba has a small number of large firms with well-developed supply chains, in industries such as aerospace, bus manufacturing, food processing, financial and insurance services, agriculture, and transportation.
With commodity prices expected to remain volatile, forecasters are predicting that Manitoba will continue to experience GDP growth above the Canadian average for the next couple of years.
[Translation]
Manitoba's economic growth of 2.3% last year can be attributed to various factors: large capital infrastructure investments made by Manitoba Hydro, several commercial projects in downtown Winnipeg, and a recovering economy in the United States boosting demand in our manufacturing sector.
[English]
Exports are critical to Manitoba's economic success. Outside of Winnipeg, the closest communities with significant consumer markets are in the Midwestern United States. Minneapolis, Omaha, and Kansas City are all closer than Calgary or cities in southern Ontario.
Last year, Manitoba's international exports were valued at $13.8 billion, up 2.2% from the previous year. Manitoba's key export markets include the United States, China, and Japan, but the province is equally reliant on interprovincial trade, with most of the goods produced heading to Alberta or Ontario.
Manitoba had the best employment growth in the country last year, at 1.5%, and one of the lowest unemployment rates, at 5.6%. This is the first time in decades that Manitoba has seen employment growth that led the country.
With respect to the current socio-economic challenges in Manitoba, while Manitoba is seeing a short- to medium-term surge in economic output and employment growth, the province faces many socio-economic challenges. For example, a number of recent events in northern Manitoba—OmniTRAX and Tolko—have heightened concerns in a region where there are high rates of unemployment, numerous social issues, isolation, and a lack of alternative employment opportunities.
For decades, Manitoba has seen a steady stream of interprovincial outward migration to other provinces. Families and highly skilled individuals are moving to provinces such as B.C., Alberta, and Ontario to take advantage of the higher wages and diverse employment opportunities, so in Manitoba we constantly hear of labour shortages in both skilled and unskilled occupations.
[Translation]
A surge in new immigrants, primarily through the provincial nominee program, has helped reduce some of the labour shortages.
[English]
At the same time, Manitoba has an underutilized young indigenous population. The median age for the provincial population is 38.4 years, while it's only 24.4 for the indigenous population. By 2026 it is projected that one in five Manitoba workers will be indigenous; therefore, the integration of Manitoba's indigenous community into the workforce is key to the long-term prosperity of the province.
Manitoba innovators also face challenges when accessing capital. Investments required to grow beyond the medium size are difficult to attract. The result is that companies remain small and often lack the resources to improve productivity, deepen their expertise, or expand their markets beyond the United States.
I'll now tell you a bit about the scope of WD operations.
Our core activity is to promote and advocate for the interests of western Canada. We achieve this partly through the western diversification program. We strategically operate under four priorities: innovation, trade and investment, indigenous economic growth, and federal defence procurement.
Through our western innovation initiative we are making a small but significant contribution to helping small and medium enterprises commercialize to get their ideas to market.
[Translation]
We support rural economic development and entrepreneurs, including women, indigenous peoples, francophones and persons with disabilities, through the Western Canada Business Service Network.
[English]
As a regional development agency we are called upon to deliver a number of programs and initiatives outside of our core funding. For example, in Manitoba we're currently delivering on a number of federal budget commitments, such as the Canada 150 infrastructure program.
One of our strengths is our ability to convene and partner with key stakeholders on a number of issues. I have an example.
[Translation]
We worked in partnership with provincial and local governments, as well as the private sector, to tackle our distances to markets with the establishment of an inland port, CentrePort Canada in Winnipeg, which offers truck, rail and air access and connections to the Pacific Gateway, the east via Thunder Bay, the United States and Mexico via the mid-continent corridor.
[English]
Our cold weather is now a competitive business advantage. We have worked with key aerospace companies to establish two cold weather testing facilities, one in Thompson and the other in Winnipeg. This has led to an expansion of test capabilities in the creation of an aerospace engine redesign facility. GE Aviation, StandardAero, Rolls-Royce, and Pratt & Whitney have made significant investments in the province and, along with our post-secondary education, research, and local business partners, have developed expertise here that's unique in North America.
Labour shortages are being addressed in partnership with industry and our indigenous training providers. The Neeginan aerospace training centre works closely with local industry to determine labour and skills needs. Training is tailored and developed to meet those needs. On average, about 80 indigenous students graduate from Neeginan each year, and 85% secure employment with participating employers.
In innovation and manufacturing, the abundance of agricultural biomass is being transformed from a waste material to wealth. This serves as a foundation for the biocomposites industry, which supplies biofibre materials to fabricate stronger and lighter vehicles, including a sustainable supply for Manitoba's vehicle manufacturing and aerospace sector. WD's investments in the Composites Innovation Centre supported innovation in advanced composite research. There are opportunities in Manitoba.
One of WD's greatest strengths is its flexibility to respond to the vastly different economic realities, business opportunities, and economic barriers in each of the four western provinces. We maintain strong, responsive relationships and engage local leaders and decision-makers in creating projects and building partnerships collectively. We call this our “convening and pathfinding” role. Our success is underpinned by our ability to bring the difference-makers in our community together to strengthen key sectors, ensuring they remain competitive internationally.
We will continue to take advantage of opportunities and address Manitoba's challenges by continuing to develop value-added to our natural resources; to invest in our labour market and in initiatives that address the needs of employers and increase participation in our vibrant and young indigenous population; to support economic development in northern and rural communities; to support initiatives that improve business productivity and innovation; to support Manitoba's small and medium enterprises in their efforts to diversify and deepen their export markets; and, to advocate on behalf of western Canadians.
[Translation]
We have accomplished a great deal and we have more to do.
[English]
WD Manitoba will continue to work with partners moving forward to provide a prosperous future for Manitobans.
Thank you.
:
I'll start with your first point regarding the critical situation in northern Manitoba at the moment.
Certainly the north has a lot of advantages, but it has a lot of challenges, as I mentioned in my opening remarks: isolation, unemployment, lack of alternative employment, and social issues. Through the years, WD has been doing significant work on the ground. I'll mention some of the examples, from The Pas to Churchill to Thompson, where we've helped, always in collaboration with partners.
For example, there's the environmental aerospace testing facility in Thompson, which has helped put aerospace on the map. We've done work in establishing the Northern Manitoba Sector Council so we can do projects, again, for skills development and in the mining industry. We also work with the University College of the North. All of those things are being done. Of course, I go back to our Community Futures Corporation and all the great work that the five communities are doing in the northern region to help address these issues.
I will speak to the point on Churchill. It is a critical time at the moment. Our department has been very active. My deputy minister has been up in Churchill. He has been chairing the weekly calls with the northern delegation, which is a consortium of industry leaders, mayors, and indigenous communities. They took the call to action, the first step, wanting to save the shipping season, but are now turning to what we can do immediately to help the community. Our immediate focus has been on the community, on what we can do for the people who have been unemployed, or are unemployed because of the situation, in a kind of a whole-of-government approach in the sense of supply of food and making sure they have—
:
Mr. Chairman, committee members, good evening.
[Translation]
Thank you for the opportunity to speak today.
[English]
I am joined by Mr. Chuck Maillet, the director general of regional operations.
As you heard from my colleagues yesterday, ACOA is the regional development agency responsible for building and promoting Atlantic Canada's economy. The agency provides programs and services that support innovation, productivity, and diversification. Through its proactive engagement, ACOA is able to respond swiftly to economic changes and emerging opportunities.
The region does, however, face a number of challenges, and ACOA is addressing them. Key among these are shifting demographics, labour force participation, the attraction and retention of immigrants, productivity and the commercialization of research, and also growing the base of exporters. There are no easy fixes, but sustained effort based on sound policy analysis is helping to make inroads.
I'd now like to turn to Nova Scotia specifically. At just under a million people, the province has the largest population in Atlantic Canada. With more universities per capita than any jurisdiction in the country, it is recognized internationally as a centre for higher learning. For example, Cape Breton University in Sydney welcomes about a thousand students per year—about 30% of its student body—from over 40 countries. There are similar situations at the other Nova Scotia post-secondary institutions.
The province is also becoming known more and more as a start-up hub. One thing I want to point out is that there's a direct link between high-quality education and a skilled workforce in information and communications technology, life sciences, and clean technology. Graduates are developing innovative solutions to real-world problems and driving growth.
This start-up ecosystem is connected to a national network, attracting funds and venture capital. In fact, Startup Canada just recently presented the agency with its Atlantic entrepreneur support award. It recognizes the work ACOA does with organizations such as Volta. Volta is a Halifax-based start-up house that helps develop businesses with high growth potential.
There's also a growing global awareness of the importance of our oceans. In the 1920s, Nova Scotia's Alistair J. Campbell coined a phrase concerning the province: “Canada's ocean playground”. It's had a very strong brand recognition ever since. But of course the ocean is much more. With one of the highest concentrations of oceans-related Ph.D.s in the world, this sector presents significant opportunities. Already the sector employs about 35,000 in Nova Scotia, and accounts for $4.5 billion, or about 12%, of the provincial GDP.
Recently the Ocean Frontier Institute received $94 million from the federal government, providing strong momentum to this sector. I might add that in addition to Dalhousie, Memorial University of Newfoundland and the University of P.E.I. are also key partners. This investment will help accelerate scientific understanding and the commercialization of new products and services.
Increasing the number of Nova Scotian export-ready businesses is critical. Opportunities exist across a broad spectrum, including such traditional sectors as fisheries and agrifood, where the focus really is on productivity improvements and value-added product lines.
There are, of course, some new sectors, such as clean tech, building an international presence and capturing market share. One example is CarbonCure, based out of Nova Scotia, which is in the process of signing deals with industry leaders. They're essentially a technology firm. They retrofit concrete plants with a technology that recycles carbon dioxide waste to make stronger, affordable, greener products.
Membertou First Nation has created a strong business foundation that is paying significant social and economic dividends for the community in Cape Breton and beyond. In fact, later this month Membertou is hosting the Nova Scotia Mi’kmaq Energy and Innovation Summit. Here businesses will be able to speak directly with representatives from all 13 of Nova Scotia's Mi'kmaq communities.
In the tourism sector, a new dynamic is emerging that resonates with travellers seeking authentic cultural experiences. Visitors with discerning palates can experience locally produced foods prepared by acclaimed chefs and paired with award-winning Nova Scotia wines. This culinary tourism, while relatively new, is showing great promise.
Through direct financial assistance, advocacy, and the ability to leverage knowledge and resources, ACOA is making a difference.
For instance, with the agency's recent contributions to L'Arche, both in Cape Breton and in Wolfville, those two projects are strengthening inclusive social enterprises. With community support, adults with developmental disabilities are participating more fully in the economy.
With the recent introduction of the Atlantic growth strategy back in July, the region is ready for concerted action. Its five pillars—skilled workforce and immigration, innovation, clean growth and climate change, trade and investment, and infrastructure—will support the agency's activities and engagements going forward.
The agency will continue to build on its strong relationships with communities, businesses, and provincial and municipal governments to develop the province's competitive advantages and make a real difference to the economic landscape.
Thank you.