January 14, 2008 ~ THUNDER BAY The Honourable Joe Comuzzi, Member of Parliament for Thunder Bay-Superior North, was joined today by Mayor Richard Harvey of Nipigon and other community leaders to outline the potential of the new National Community Development Trust for northwestern Ontario.
“This is an important initiative for northwestern Ontario and provides significant opportunity for the creation of thousands of jobs and a strong diversified economy in our region,” said Joe Comuzzi. “It is time that people stop playing politics and start looking after what is important, the worker and their family.” added Comuzzi.
“This is the type of initiative that our communities in Northwestern Ontario have been looking for,” said Mayor Harvey of Nipigon. “This initiative shows the Government of Canada’s commitment to workers, their families and our communities as we transition to a new and vibrant economy. This is a significant achievement that finds its origins in northwestern Ontario and through the hard work and cooperation of area leaders and Mr. Comuzzi.” added Mayor Harvey.
The Community Development Trust is a $1 billion program by the federal government to assist vulnerable communities and laid-off workers and their families. The Trust will have a three-year lifespan starting as soon as Parliament approves the required budgetary funding. The Community Development Trust is a flexible program that provides not only retraining, but also the support required for community transition, job creation and infrastructure development that stimulates economic diversification.
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Community Development Trust - Backgrounder
10 January 2008 Ottawa, Ontario
Purpose
Canada’s economic fundamentals have been strong and the national economy is well-positioned for long-term growth and prosperity. But as an open-trading economy in a world facing increasing economic uncertainty, there will be difficult challenges in the year ahead. Some communities are vulnerable because of their dependence on a single employer or a sector under pressure due to exchange rate fluctuations, declining demand notably in the U.S., or other factors.
For this reason, the Government is establishing a Community Development Trust to help vulnerable communities adjust to these circumstances. Within mutually agreed-upon parameters, funding will be administered by the provinces and territories as they are best placed to identify the unique difficulties facing these communities across Canada.
Expected uses of the Community Development Trust Areas of investment include:
• job training funds and skills development to meet identified local or regional gaps;
• measures to assist workers in unique circumstances facing adjustment challenges;
• funding to develop community transition plans in support of economic development and diversification;
• infrastructure initiatives that support the diversification of local economies; and
• other economic development and diversification initiatives aimed at helping communities manage transition and adjustment, such as public utilities projects, industrial park development, science and technology development, access to broadband technology, downtown revitalization, and communication and transportation services.
Funding is intended to supplement existing and proposed investments by provincial and territorial governments to support community enhancement and development. All projects funded through the Community Development Trust will need to respect Canada’s obligations under the North American Free Trade Agreement and the World Trade Organization.
Funding
The Community Development Trust will be established using part of the 2007-08 budgetary surplus. Resources for the Trust will consist of $1 billion in new funding on a national basis. A base amount of $10 million will be provided to each province and $3 million to each territory, with the balance of the funding allocated on a per capita basis. This allocation will give all provinces and territories the capacity to respond to adjustment challenges. Provinces and territories will have the flexibility to draw down funds as required over the three-year lifespan of the Trust. This new funding will be in the upcoming budget and will be available as soon as Parliament approves the required legislation.
Accountability and Reporting to Canadians
All governments acknowledge the importance of reporting to Canadians about how public funds are used. Provincial and Territorial governments are encouraged to report directly to their constituents on the expenditures financed and outcomes achieved with the funding provided through the Community Development Trust.
The Government of Canada will continue to work with provinces and territories to identify and announce measures to be funded through this Trust that best respond to community adjustment needs.