$348.9 Million for Ontario in Support Through New Community Adjustment Fund

Fascinating news from the Harper government as they act to support of nonprofits and municipalities in the hardest hit communities. Still have some major concerns about the lack of vision for how these communities are going to transform their economies and the continued neglect of our cities. This is a 'stop the bleeding' strategy... hopefully only the start of a conversation.

Harper Government Launches $1-Billion Fund to Help Communities at Risk Across Canada — Ontario to Receive $348.9 Million in Support Through New Community Adjustment Fund

OTTAWA, May 14, 2009 — Today, the Honourable Tony Clement, Minister of Industry, announced the launch of the Community Adjustment Fund in Ontario. Communities in Ontario experiencing the effects of the current global recession can find relief in the Community Adjustment Fund, an economic diversification program that is part of Canada's Economic Action Plan (see attached Backgrounder).

In Ontario, the Community Adjustment Fund will provide $348.9 million over two years to support adjustment measures in communities affected by the global economic downturn. In 2009–10, this funding for Ontario will total up to $174.2 million.

Today, the government announced the first allocation under the program, for projects submitted by municipalities and not-for-profit organizations:

*       $100 million for Southern Ontario projects through an intake process, with projects to be completed by March 31, 2010; and
*       $15.7 million for Northern Ontario projects through an intake process, with projects to be completed by March 31, 2011.

The allocation of remaining funds will be announced in the coming weeks.

“The Government of Canada is committed to supporting Ontario communities hard hit by this global recession and helping them return to prosperity,” said Minister Clement. “We are helping our communities diversify their economies, allowing them to build for a strong and sustainable future.”

The Honourable Lisa Raitt, Minister of Natural Resources, earlier announced that the Government of Canada will invest $1 billion over two years on a priority basis to communities severely affected by the economic downturn, such as those that depend on forestry, mining and the manufacturing industry.

“The global recession has severely affected many individuals and families, especially in communities that depend on single industries,” said Minister Raitt. “The Community Adjustment Fund will inject new money as quickly as possible into communities across Canada in order to create jobs and support economic renewal in the communities that are hardest hit.”

Projects in communities with a population of less than 250 000 will be eligible for support and will be given higher priority if the community:

*       is rural and supported by a single industry;
*       has experienced an increase in Employment Insurance beneficiaries equal to or greater than 20 percent over a one-year period; and
*       has experienced major layoffs resulting in significant job losses.

Projects to be funded could include reforestation activities, investments in machinery or equipment, demonstration of new mining technologies, and initiatives to improve market access for products.

The Government of Canada is investing in projects that will have an immediate and significant effect on communities. The Community Adjustment Fund will help boost the economy and provide a solid footing for the economic recovery efforts.

The Community Adjustment Fund is just one in a series of initiatives introduced in the Government of Canada's Economic Action Plan designed to address the short-term effects of the global economic downturn on communities across Canada, while preparing our communities for long-term growth.