The Media Room

2009/28(a)

BACKGROUNDER

Community Adjustment Fund

The global recession is causing painful adjustments for many communities across Canada. Plummeting global demand and declining prices for forest, mineral and energy commodities and products have resulted in significant production cutbacks and extensive job losses.

Following extensive national pre-budget consultations, the Government of Canada is taking steps to stimulate the economies of communities hard hit by the economic downturn. Canada’s Economic Action Plan provides $1 billion over two years for the Community Adjustment Fund, which will help create jobs and maintain employment in communities impacted by the current economic downturn.

The Economic Development Agency of Canada for Quebec Regions will receive $211 million from the Community Adjustment Fund. The forest sector has been identified as one of the priority areas and will benefit substantially from this funding.

Five federal departments and regional development agencies across Canada will administer the Fund in close collaboration — Atlantic Canada Opportunities Agency, Economic Development Agency of Canada for the Regions of Québec, Industry Canada, Western Economic Diversification, and Indian and Northern Affairs. INAC and Industry Canada are delivering the Fund on a transitional basis, until the Northern Development Agency and Southern Ontario Development Agency are operational.

The objective of the Community Adjustment Fund is to support activities such as science and technology initiatives, community transition plans that foster economic development and other measures to promote economic diversification in communities such as resource-based and manufacturing-communities.

A community will be eligible under this program if its population is 250,000 or lower and it meets the following criteria:

  • It has experienced major layoffs resulting in significant job losses as a percentage of total employment within the community; and
  • There is a lack of alternative employment opportunities within the community to offset job losses.

OR

  • The year-over-year change in Employment Insurance beneficiaries is equal to or greater than 20 percent.

Priority in the selection of projects in eligible communities will be given to rural, single-industry communities.

Details regarding the application process and timelines to access funding will be provided by the federal departments and regional development agencies administering the Community Adjustment Fund within the coming weeks.

For further information, please contact:

Jasmine MacDonnell

Director of Communications

Office of the Minister

Natural Resources Canada

Ottawa

613-996-2007

Or

Media Relations

Natural Resources Canada

Ottawa

613-992-4447

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.