Ministry of Economic Development and Trade Results-Based Plan Briefing Book 2006-07

• Results-based Plan Briefing Book 2006-07 - PDF

This publication is available in PDF format and can be read by Adobe Acrobat®. If you do not have a copy of Adobe Acrobat®, you may download a copy from the Adobe website.

---

PART I: Published Results-based Plan 2006/07

MINISTRY OVERVIEW

Ministry Overview Statement

With its vision of Prosperity for all Ontarians, the goal of the Ministry of Economic Development and Trade (MEDT) is straightforward: to promote Ontario's economic growth and competitiveness.

The ministry will achieve this by providing leadership in supporting the development of a culture of innovation, promoting investment and expanding exports to world markets.

MEDT is pursuing four strategies to promote economic growth in Ontario:

• Industry and Cluster
• Automotive Investment
• Investment and Trade
• Small and Medium Enterprise (SMEs) & Cluster Growth Firms.

The Industry and Cluster Strategy supports strong job growth, skills training in key clusters and sectors, the removal of barriers to investment by business and infrastructure improvements. The five-year $500-million Advanced Manufacturing Investment Strategy (AMIS) Program is a critical initiative that helps advanced manufacturers make large-scale investments in their operations and create, adopt and manage new processes and develop innovative products so they can be the first to introduce to the world.

A key sector of importance to Ontario is the automotive industry and the Automotive Investment Strategy focuses on ensuring Ontario remains a leader in North American auto production by attracting significant investments with innovation, strategic skills training and public infrastructure components.

The Investment and Trade Strategy encourages increased investment and trade by marketing Ontario worldwide as a preferred business location, attracting more foreign direct investment and skilled jobs; and promoting trade and diversifying our export markets.

The Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy champions the small business community and supports the growth of SME businesses, key business clusters and sectors.

In 2006/07, MEDT will continue to make the kinds of investments through initiatives such as the Automotive Investment Strategy and the Advanced Manufacturing Investment Strategy, that ensure Ontario's economy is highly innovative, technologically advanced and that our companies stay ahead of the curve in this new knowledge-based, value-added global marketplace.

For 2006/07, MEDT will also expand investment and trade activities in Europe, the United States, China and India, continue to support the growth of SMEs, and work closely with the new Ministry of Research and Innovation (MRI) on the government's innovation agenda.

The ministry will focus its efforts on creating a competitive business climate and attracting jobs and investment. The ministry's strategies and programs will support the government's Economic Plan Priority 'Strong People, Strong Economy' and key results:

• a skilled workforce
• a competitive business environment
• modern, efficient public services.

In pursuing the ministry's strategies and to achieve efficiencies, MEDT also works with and levers the efforts of other levels of government, other Ontario ministries, industry organizations and the private sector. Examples include the ministry's work with the Ministry of Northern Development and Mines on the GO North and Mineral Cluster Strategies to promote investment and trade with northern Ontario. The ministry also partners with the Canadian Automotive Partnership Council (CAPC), the Automotive Parts Manufacturers Association (APMA), the Ontario Chamber of Commerce (OCC), the Ontario Aerospace Council (OAC), the Canadian Steel Partnership (CSPC) and other organizations on issues related to industrial policy and the promotion of investment and trade.

LEGISLATION FOR WHICH THE MINISTRY IS RESPONSIBLE

Development Corporations Act
IDEA Corporation Act, 1981 (1)
Ministry of Industry, Trade and Technology Act (2)
Research Foundation Act

(1) The government proposes to repeal this Act in Bill 190 (Good Government Act, 2005), currently
before the Legislature.
(2) The government also proposes to rename this Act to the Ministry of Economic Development and
Trade Act in Bill 190.

AGENCIES REPORTING TO THE MINISTRY

Advisory Agencies

Small Business Agency of Ontario

The Small Business Agency of Ontario reviews regulatory proposals, promotes regulatory best practices, streamlines paperwork and ensures that small business interests are part of the government's decision-making process. Through regular regional outreach and special projects on issues of interest to small and medium-size enterprises (SMEs), the agency will work with Ontario ministries and agencies, small business owner-operators and other SME stakeholders in all sectors and regions of the province to identify and ease costly and time-consuming regulatory and bureaucratic requirements.

Ontario Investment and Trade Advisory Council

The council is being established to provide strategic advice and support to the government on marketing Ontario to the world as a preferred location for investment, and helping Ontario firms to begin exporting to new markets or to expand their exports to existing markets.

Operational Enterprise Agencies

Ontario Immigrant Investor Corporation (OIIC)

The OIIC was established to act as a receiving vehicle for immigrant investor funds, as required by the federal government under the federal Immigrant Investor Program (IIP).

The Development Corporations

The corporations are currently responsible for managing the wind-down of their financial portfolios in a prudent and fiscally responsible manner. Public servant appointees are responsible for managing the final stages of the corporations' administrative wind-down.

ORTECH Corporation

The assets of ORTECH Corporation were sold off and the corporation is no longer operational. Public servant appointees are responsible for managing the final stages of the corporation's administrative wind-down.

PUBLISHED RESULTS-BASED PLAN 2006/07

The Ministry of Economic Development and Trade (MEDT) provides leadership in fostering a competitive business climate that will attract jobs and investment to Ontario. The ministry supports the government's Economic Plan Priority 'Strong People, Strong Economy.'

The ministry will focus on four strategies to achieve economic growth:

• Industry and Cluster
• Automotive Investment
• SMEs and Cluster Growth Firms
• Investment and Trade.

Through the Industry and Cluster Strategy, the Ministry will contribute to a positive business climate that supports economic growth and job creation by:

• The continued implementation of the Advanced Manufacturing Investment Strategy (AMIS), a new $500-million loan program, a critical initiative that supports investment and job creation in leading-edge technologies and processes.
• Attracting key sector/key signature investments in projects involving skills training, innovation, development of public infrastructure, new environmental technologies and energy efficiencies.
• Overcoming obstacles to new investment. MEDT will partner with business, academic, research and civic leaders to address and resolve key issues affecting the business climate.
• Providing strategic economic advice and analysis to government on industrial restructuring issues.
• Working closely with the Ministry of Northern Development and Mines on the GO North Strategy and Mineral Cluster Strategy and the Ministry of Culture on the Entertainment/Creative Cluster Strategy.

Through the Automotive Investment Strategy, MEDT will support the attraction of investments in the automotive industry by:

• Providing financial assistance to support significant investments by industry in research and innovation, skills training, environmental and energy technologies and infrastructure. This includes the Ontario Automotive Investment Strategy, and Strategic Manufacturing Investments such as Toyota, and the Large Scale Strategic Investments.
• Working collaboratively with automotive companies, labour and academic institutions to strengthen the future competitiveness of the automotive sector.

Through the Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy, the ministry will champion the development of SME firms along a continuum of growth to long-term economic prosperity, from the start-up entrepreneur to the innovative, growth-oriented company by:

• Continuing to support the Small Business Agency of Ontario to reduce the paper burden and compliance requirements affecting SMEs. Key projects include the Regulatory Registry, which provides information on regulatory proposals affecting businesses in Ontario.
• Through a network of 44 Small Business Enterprise Centres and senior business advisors in the regional offices, supporting the formation of new and early growth stage businesses by providing critical information, access to technology, awareness of resources, workshops and seminars, networking events and one-on-one consultations with business consultants.
• Providing targeted assistance to SME businesses to help them to address challenges and grow. This includes, for example, energy seminars and workshops delivered in partnership with Natural Resources Canada (NRCan) and Independent Electricity System Operator (IESO) to help firms remain competitive.
• Increasing the number of student companies to more than 300 and continuing to develop partnerships that will assist youth in rural or remote areas, as well as distinct groups that are traditionally underserved including ethnic, language and other groups, and at risk youth.
• Continuing to support the Ontario Small Brewers Association and the Wine Council of Ontario for marketing and tourism promotion initiatives, as well as export development.

Through the Investment and Trade Strategy, the ministry will promote Ontario's economic growth and competitiveness by:

• Introducing a new advertising campaign and marketing strategy to market the province as a premier investment location to key investment decision makers.
• Increasing our international presence to raise Ontario's profile and increase investment and trade. Presently, there are centres in Munich, New York City, Shanghai, London, Tokyo, New Delhi and Los Angeles.
• Improving and diversifying the province's export performance by helping Ontario based manufacturers, particularly high-performing small and medium-sized enterprises and suppliers of professional services export worldwide, especially to China and India.
• Launching the Ontario Investment and Trade Advisory Council (OITAC) of business leaders with global, diverse experiences to boost our efforts to promote international investment and trade and take advantage of Ontario's cultural and economic diversity.
• Continuing to leverage partnerships with private sector organizations, such as the Ontario Chamber of Commerce, and levering their expertise/networks of contacts to identify investment and trade opportunities.
• Working closely with the Ministry of Research and Innovation (MRI) to develop and implement a coordinated, strategic approach to driving innovation and investment in Ontario's economy in key sectors such as life sciences.

Performance Measures

The ministry continues to track progress on these strategies through the following performance measures:

• Through support from the Advanced Manufacturing Investment Strategy (AMIS) loan program, the ministry will lever a $500-million investment by the province to attract $3.5 billion in investment in leading-edge technologies/processes by 2012.
• Through the Automotive Investment Strategy, the ministry target is to attract an additional $1.44 billion of investment, bringing the cumulative total to $6.8 billion in investment in the automotive industry by the end of 2006/07.
• Through the Investment and Trade Strategy in 2006/07, the ministry will:
  • Refocus its activities on new markets and programming. The target is to assist 850 exporters access new markets.
  • Focus on investment promotion activities that will support the attraction of $200 million in new investment.
• Through the Small and Medium Enterprise and Cluster Growth Strategy, the ministry will focus on assisting 18,500 entrepreneurs and leading growth firms.

In summary, the ministry's strategies and programs support the government's priority of a 'Strong People - Strong Economy' by:

• Promoting the growth of an innovative, competitive economy
• Increasing skills and quality of jobs
• Attracting investment and selling Ontario abroad
• Providing a continuum of services to support the growth of business at every stage, from start-ups to mature companies.

Table 1: Ministry Planned Expenditures 2006/07

Ministry Planned Expenditures ($M)

Operating (Excludes Net Consolidation Adjustment of $7.2M for the Ontario Immigrant Investor Corporation) - 343.5
Operating Assets - 68.9
Capital - 0.2

Table 2: Ministry Planned Expenditures by Strategy 2006/07

Ministry Planned Expenditures ($M)

Operating Expense:

Industry and Cluster Strategy - 28.1
Automotive Investment Strategy - 214.9
Small and Medium Enterprise and Cluster - 22.6
Growth Firms Strategy - Investment and Trade Strategy - 61.0
Corporate Administration - 16.9

Total Operating Expense: 343.5

Operating Assets:

Industry and Cluster Strategy - 51.4
Automotive Investment Strategy - 17.5

Capital Expense:

Small and Medium Enterprise and Cluster Growth Firms Strategy - 0.2

APPENDIX I:

PUBLISHED RESULTS-BASED PLAN 2005/06 AND ANNUAL REPORT 2004/05

2005/06 Published Results-based Plan

The Ministry of Economic Development and Trade pursues five strategies to support the government's vision for a 'Strong People, Strong Economy.'

• Research and Commercialization
• Industry and Cluster
• Automotive Investment
• Investment and Trade
• Small and Medium Enterprise (SMEs) and Cluster Growth Firms.

Through the Research and Commercialization Strategy, the Ministry provides leadership and co-ordination of science and technology programs and activities across government. The ministry also develops strategies to help foster a culture of innovation in Ontario. These programs/functions were transferred to the new Ministry of Research and Innovation in mid-2005. Initiatives include:

• Launching the Research Council of Ontario to advise the government on research priorities, help co-ordinate public research and raise Ontario's profile as an international research centre.
• Launching a number of key innovation initiatives, including the Ontario Research Fund, the Ontario Research Commercialization Program, the Ontario Cancer Research Program, the Ontario Research Innovation Networks and a number of new programs at MaRS Discovery District, including the Commercialization Program and the Gateway to Ontario Program.
• Establishing a Centre of Excellence for Alternative Energy to implement new research and commercialization programs for innovative energy-related technologies.

Through the Industry and Cluster Strategy, the ministry supports economic growth and job creation/retention in Ontario. Initiatives include:

• Developing and launching the Advanced Manufacturing Investment Strategy (AMIS) program in December 2005. This $500-million loan program supports innovation and job creation for advanced manufacturers.
• Supporting industrial restructuring projects in Hamilton and Cornwall.
• Endowing a research chair in productivity and competitiveness at the University of Toronto in recognition of the importance of such research to better understand the key factors in improving Ontario's long-term prosperity.
• Building stronger relationships with the Ontario Aerospace Council, the Canadian Steel Partnership, the Canadian Manufacturers and Exporters Association, the Canadian Plastics Industry Association, the Canadian Chemical Producers Association and other industry stakeholders.
• Through the Automotive Investment Strategy, the ministry is moving aggressively to support innovative automotive sector investment in Ontario. The government is levering financial assistance by the Province to attract new auto investments by supporting skills training, innovation and public infrastructure.

Through the Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy, the ministry champions the development of SME firms and leading growth firms. Initiatives include:

• Launching the Small Business Agency of Ontario to ease small business regulatory and bureaucratic burdens and improve small business experience and interactions with government.
• Providing targeted services to small and medium businesses to help them access the assistance to grow in Ontario and internationally.
• Providing support for high performing SMEs through the Wisdom Exchange, a networking and knowledge-sharing forum for CEOs and presidents of leading growth firms that assists business leaders in meeting the special challenges facing these high performing companies.
• Promoting youth entrepreneurship as a viable career option through a range of programs for either a student on a full-time basis or a youth once out of school. These programs include: the Summer Company program, the Ontario Secondary School Business Plan Competition and Future Entrepreneurs.
• Initiating the first call for proposals and awards of Youth Entrepreneurship grants designed to encourage an enterprising culture among Ontario youth.

Through the Investment and Trade Strategy, the Ministry markets Ontario as a premier investment location and assists Ontario exporters to compete in world markets. Initiatives include:

• Attracting a target of 25 investments in the following sectors: information communication technologies, business services and consumer products.
• Attracting at least two major investments in northern Ontario in the forestry/machinery and business services sectors under the GO North program.
• Increasing Ontario's profile in a key emerging market by organizing an investment and trade mission to China, led by the Premier and Minister. The mission to include at least 100 participants from Ontario.
• Raising Ontario's international profile by opening International Marketing Centres (IMCs) in New Delhi, London, Tokyo and Los Angeles.

Performance Measures

The ministry's 2005/06 performance measures are as follows:

• Through the Automotive Investment Strategy, to attract $1.76 billion in additional investment, for a cumulative total to $5.36 billion in investment in the automotive industry since 2004.
• Through the Small and Medium Enterprise and Cluster Growth Firms Strategy, to assist 18,000 entrepreneurs and leading growth firms.
• Through the Investment and Trade Strategy:
  • to support the attraction of $200 million in new investment.
  • to assist 800 exporters to access new markets.

By concentrating its resources on five priority strategies, the ministry supports the government priority 'Strong People, Strong Economy.' The ministry plays an important role in helping the government's economic plan succeed by:

• Launching new programs to support investment in innovation and commercialization in Ontario
• Providing strategic economic advice to ensure that the fundamentals of the business climate are right
• Attracting new investment and skilled jobs to Ontario
• Focusing assistance on small business and innovative leading growth firms.

Table 1: Ministry Planned Expenditures 2005/06

Ministry Planned Expenditures ($M)

Operating (Excludes Net Consolidation Adjustment of $5.1M for the Ontario Immigrant Investor Corporation) - 442.6
Operating Assets - 88.4
Capital - 2.2

Table 2: Ministry Planned Expenditures by Strategy 2005/06

Ministry Planned Expenditures ($M)

Operating Expense:

Industry and Cluster Strategy - 21.7
Automotive Investment Strategy - 321.4
Small and Medium Enterprise and Cluster Growth Firms Strategy- 23.1
Investment and Trade Strategy - 59.8
Corporate Administration - 16.6

Total Operating Expense: 442.6

Operating Assets:

Industry and Cluster Strategy - 1.4
Automotive Investment Strategy - 87.0

Capital Expense:

Small and Medium Enterprise and Cluster Growth Firms Strategy - 2.2

2004/05 Annual Report

The 2004/05 Plan focused on realigning the Ministry to support the government priority of 'Strong People, Strong Economy.' At that time, the ministry's strategies included:

• The Research and Commercialization Strategy and those programs/functions now transferred to the Ministry of Research and Innovation
• The agency relationships with the Liquor Control Board of Ontario and the Ontario Lottery and Gaming Corporation and those functions now transferred to the Ministry of Public Infrastructure Renewal.

Some of MEDT's achievements in 2004/05 included:

Research and Commercialization Strategy

• Developing a new Science and Technology Strategy to position Ontario's future research and commercialization initiatives.
• Policy development and program design for a number of new research and commercialization programs emanating from the Science and Technology Strategy, including the new Ontario Research Fund, the Ontario Research Commercialization Program, the Ontario Cancer Research Program and the Centre of Excellence for Alternative Energy.
• Launching the Ontario Fuel Cells Innovation Program to support fuel cells technologies demonstration projects and outreach/networking/ information exchange programs.
• Refocusing the Science and Technology Connections and Partnerships Program to help connect scientists with youth and facilitate international collaborations between Ontario and international researchers.
• Refocusing the Research Talent Development Program to support early career researchers with recognized potential.

Industry and Cluster Strategy

• Realigning resources and strengthening the ministry's focus on supporting cluster development and growth in the Ontario economy. Key clusters included automotive, life sciences/biotechnology, information and communications technologies, and alternative energy/fuel cells.
• Working with the Task Force on Competitiveness, Productivity and Economic Progress, supporting research on strategies for promoting increased commercialization activities in Ontario.
• Working with the Ministry of Finance to strengthen the steel industry and providing support to the industrial restructuring projects.
• Taking the lead in working with industry and other governments to create the Canadian Steel Partnership Council to develop a national competitive strategy in Canada.
• Leading and co-ordinating the development of gaming policy in Ontario, including the provincial gaming strategy announced in January 2005, to promote gaming in a socially responsible manner that both recognized community standards and protected the public's interest.
• Investing $5 million to help small brewers to be more competitive and innovative in the global marketplace.
• Continuing implementation of the Ontario Wine Strategy (launched in 2004), a 5-year, $10-million strategy that provides marketing, promotion and training support to Ontario's wine industry.

Automotive Investment Strategy

• Implementing the Automotive Investment Strategy to assist Ontario in maintaining and attracting an increasing share of new automotive investment to the province.
• Working with two major automakers to finalize the following investment decisions:
  • Ford announced a new automotive plant investment in October 2004 with $1.1 billion investment
  • General Motors announced the Beacon Project in March 2005 with $2.5 billion investment.

Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy

• Promoting entrepreneurship and partnering in the network of 44 Small Business Enterprise Centres (SBECs) across the province and providing assistance to start-up and early growth stage firms. The SBECs handled over 243,364 general inquiries, 24,562 consultations and seminar attendance of 20,022.
• Facilitating the creation and expansion of leading growth firms and providing business advisory services to over 1,800 growth oriented firms through 12 offices across southern Ontario.
• Delivering the annual Wisdom Exchange to provide networking and strategic partnering assistance to leading growth firms. The theme of the 2004/05 event was 'Return on Creativity: Leveraging the Power of Ideas' and over 225 CEOs attended.
• Raising awareness among youth of entrepreneurship as a viable career option through programs such as Summer Company, the Ontario Secondary School Business Plan Competition and Future Entrepreneurs. Over 25,000 young people were exposed to youth entrepreneurship through direct outreach activities. A total of 280 youth participated in Summer Company, 372 students submitted business plans to the Ontario Secondary School Business Plan Competition.
• Managing the Ontario Immigrant Investor Corporation (OIIC), established to act as a receiving vehicle for immigrant funds invested under the federal Immigrant Investor Program. Interest on the funds invested will be used to support economic development initiatives in Ontario.

Investment and Trade Strategy

• Conducting international marketing campaigns, including print/broadcast advertising and media relations campaigns in key international markets (U.S., U.K., Germany, Japan and France).
• Generating investment leads and providing investment services in key markets and sectors through contracted in-market business development consultants.
• Working with Ontario companies to develop new exporting opportunities and assisting foreign buyers to find Ontario suppliers for their purchasing requirements. The ministry accomplished this through a series of programs, including 60 international trade missions and shows, 47 seminars on 'How to Export and Market Opportunities,' nine 'New Exporters to the Border States' missions and by providing hundreds of one-on-one export consultations.
• Supporting the launch of the GO North Investor program to attract anchor investments to northern towns and cities in December 2004. The ministry worked with the ministries of Northern Development and Mines and Finance to develop international marketing/media relations materials and conduct familiarization tours for potential investors.
• Delivering the Ontario Global Traders' Awards Program, to recognize Ontario's export successes and encourage more Ontario companies to increase their exports. Approximately 1,000 people attended events held in Toronto, Windsor, Cornwall, Ajax and Thunder Bay.
• Operating the Ontario Investment and Trade Service, a multi-media presentation centre which assists in marketing Ontario and providing detailed investment information to visitors. In 2004/05, 7,392 visitors were hosted and received presentations on Ontario.

Performance Measures

The ministry's results were as follows:

• Through the Automotive Investment Strategy, the ministry attracted $3.6 billion in investment in the automotive industry.
• Through the Small and Medium Enterprise and Cluster Growth Firms Strategy, the ministry focus was on assisting 17,700 entrepreneurs and leading growth firms.
• Through the Investment and Trade Strategy, the ministry:
  • supported the attraction of $149 million in new investment.
  • assisted 880 exporters access new markets.

By concentrating its resources on five priority strategies, the ministry supported the growth of a prosperous, competitive and innovative economy.

Table 3: Ministry Expenditures

Ministry Expenditures ($M) 2004/05

Operating (Excludes Net Consolidation Adjustment of $2.7M for the Ontario Immigrant Investor Corporation) - 76.4
Operating Assets - 1.6
Capital - 5.0
Staff Strength - (as of March 31, 2005) - 356.8

GLOSSARY

AMIS Advanced Manufacturing Investment Strategy
APMA Automotive Parts Manufacturers Association
BCDC Business Climate Deputies Committee
CAPC Canadian Automotive Partnership Council
CIBMS Customer Information and Business Management System
CVMA Canadian Vehicle Manufacturers Association
CEO Chief Executive Officer
CFI Canada Foundation for Innovation
CME Canadian Manufacturers and Exporters
CORPAY Corporate Payroll System
DRS Democratic Renewal Secretariat
eCRM electronic Client Relationship Management
eDA electronic Delegation of Authority System
ESD Electronic Service Delivery
HR Human Resources
IESO Independent Electricity System Operator
IM/IT Information Management and Information Technology
IT Information Technology
IFIS Integrated Financial Information System
IMCs International Marketing Centres
MaRS Medical and Related Sciences
MBC Management Board of Cabinet
MBS Management Board Secretariat
MEDT Ministry of Economic Development and Trade
MIA Ministry of Intergovernmental Affairs
MOF Ministry of Finance
MNDM Ministry of Northern Development and Mines
MRI Ministry of Research and Innovation
NRCan Natural Resources Canada
OCC Ontario Chamber of Commerce
OITAC Ontario Investment and Trade Advisory Council
OIIC Ontario Immigrant Investor Corporation
OPS Ontario Public Service
ODOE Other Direct Operating Expenditures
OSS Ontario Shared Services
SMEs Small and Medium-Sized Enterprises
WIN Workforce Information Network

ISSN 1718-6420  (Online)