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FedDev Ontario: SODA is Finally Out of the Bottle |
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Written by Heather Hall
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Friday, 21 August 2009 09:08 |
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 Last week the federal government finally provided details on the new Southern Ontario Development Agency. SODA was announced last January as part of the Conservative Government’s Action Plan for Canada. Over the last several months, rumours and speculation passed through economic development circles across Ontario.
We at Creative Communities questioned what this ‘new’ agency would mean for Eastern Ontario. Although that answer yet remains unclear, some information on FedDev Ontario, the official name of SODA, has emerged (this information was obtained from the Federal Action Plan website):
- The Southern Ontario Development Program will be a core program under the new agency, and will deliver close to $100 million in funding in 2009-10 to promote economic development, economic diversification and job creation;
- The Community Adjustment Fund (CAF), a short-term economic stimulus for communities impacted by the global recession, will contribute $350M throughout Ontario;
- Southern Ontario’s Community Futures Development Corporations (CFDC), which provide important services to businesses, entrepreneurs and social enterprises, will receive $30M from the Community Adjustment Fund in 2009-2010;
- The Business Development Bank of Canada (BDC) will invest a total of $50M in Southern Ontario through venture capital firms and the BDC’s own programs;
- The National Research Council’s Industrial Research Assistance Program (NRC-IRAP), which stimulates wealth creation through technological innovation, had a $67.3M grants and contributions envelope for Ontario in 2009-2010. It will receive an additional $27.5M to foster innovation among Southern Ontario’s small and medium-sized enterprises, and supporting organizations.
The agency will be based in Kitchener, which is located in one of Ontario’s fastest growing regions (see Ontario in the Creative Age). This location is definitely not my first choice for an agency that historically was designed to assist economically disadvantaged regions. According to sources, the government wanted a central location other than the GTA (see CBC, August 13th); however, it doesn’t take a geographer to see that Kitchener is far from central for Eastern Ontario.
We would love to hear from you again about what this new agency will mean for Eastern Ontario. Also, be sure to check back over the next few weeks as we will be discussing the history of federal development agencies in Canada and the challenges and opportunities FedDev might present for other regions in the Province.
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