2024–25 Departmental Plan

On this page

• From the Minister
• Plans to deliver on core responsibilities and internal services
  • Economic development in southern Ontario
  • Internal services
• Planned spending and human resources
  • Spending
  • Funding
  • Future-oriented condensed statement of operations
  • Human resources
• Corporate information
• Supplementary information tables
• Federal tax expenditures
• Definitions

From the Minister

I am pleased to present the 2024–25 Departmental Plan for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

The Government of Canada, through FedDev Ontario, is committed to investing in projects that create opportunities that help people reach their potential across southern Ontario. FedDev Ontario is committed to making strategic investments. The Agency will continue to advance the adoption of clean and innovative technologies, and support businesses as they create jobs and contribute to a growing, resilient and sustainable economic future for Canadians.

In 2024–25, FedDev Ontario will continue to prioritize building a diverse and inclusive economic ecosystem that focuses on sustainable job creation, long-term investments in clean growth projects, global competitiveness and increased productivity in southern Ontario. The Agency will achieve its mandate by delivering regionally-tailored programs, advisory services and strategic collaboration to support the growth of key industry sectors, businesses and not-for-profits across the region. FedDev Ontario will ensure sound stewardship of its resources with operations that are efficient, effective and directed towards supporting southern Ontario's economic growth. The Agency remains focused on helping businesses grow, advancing the adoption of clean and innovative technologies, and promoting economic development in southern Ontario.

By investing in and empowering underrepresented groups, members of official language minority communities (OLMCs), and small and rural communities, FedDev Ontario maintains its commitment to creating a diverse and inclusive economy that benefits the quality of life for all Canadians. FedDev Ontario will continue to prioritize the inclusion and participation of women, Indigenous peoples, racialized communities and persons with disabilities; we will support them as they achieve their full potential and create new opportunities for a stronger future for everyone.

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services

• Economic development in southern Ontario
• Internal services

Economic development in southern Ontario

Description

FedDev Ontario promotes an innovative and inclusive southern Ontario economy through investments in regional growth, commercialization and adoption of technologies, as well as community diversification.

Quality of life impacts

The Agency's core responsibility (Economic development in southern Ontario) contributes to the "Prosperity" domain of the Quality of Life Framework for Canada. Specifically, the core responsibility addresses the "Income and growth" and "Employment and job quality" components within that domain through productivity improvements, gross domestic product (GDP) per capita, firm growth and employment. In addition, the Agency makes contributions to the "Environment" domain of the Framework and the cross-cutting lenses of "Fairness and inclusion" and "Sustainability and resilience" through investments in clean economic and inclusive growth.

Results and targets

The following tables show, for each departmental result related to economic development in southern Ontario, the indicators, the results from the three most recently reported fiscal years, and the targets and target dates approved for 2024–25. In general, actual results are based on the latest available data from Statistics Canada.

The financial, human resources and performance information for FedDev Ontario's program inventory is available on GC InfoBase.

Plans to achieve results

In 2024–25, FedDev Ontario will continue to build upon the key achievements and strategic relationships it has developed over the past 14 years, with the goal of productive economic development outcomes in southern Ontario.

Southern Ontario's wide array of distinct communities, regional advantages and diverse population provide significant opportunities for growth and development through ongoing regional programming. Strategic collaboration with regional businesses and organizations with a demonstrated capacity to develop and grow will further the objective of increased economic diversity, particularly in rural communities.

Through the Community Futures Program (CFP), FedDev Ontario will continue to support the network of Community Futures Development Corporations in their effort to enhance the investment base and growth potential of small and rural communities.

Projects funded through the Economic Development Initiative (EDI) support official language minority communities (OLMCs) in southern Ontario. This is achieved through activities focused on economic development and diversification, and partnerships where the potential for long-term sustainability and growth exists.

In support of the Government of Canada's Federal Tourism Growth Strategy, FedDev Ontario will continue to deliver the Tourism Growth Program (TGP) in southern Ontario in 2024–25. This program will help businesses and organizations in the tourism sector grow and, by extension, enhance the tourism offerings in communities throughout the region. In line with the Federal Tourism Growth Strategy, the TGP will target approximately 15% of its allocation to projects with impacts on the Indigenous tourism industry.

A critical component of the Agency's success has always been a diversified and inclusive portfolio of projects with businesses and organizations across southern Ontario. Through its dedicated Indigenous outreach activities, FedDev Ontario will continue to work with Indigenous partners to find pathways and identify opportunities to invest in and advance the interests of these communities.

The Agency will maintain a focus on the accessibility of funding opportunities for underrepresented groups in southern Ontario, including women, racialized communities, persons with disabilities and members of OLMCs.

Through its ongoing delivery of the Black Entrepreneurship Program (BEP) and EDI in 2024–25, FedDev Ontario will work with project proponents to deliver on planned activities and achieve results that will help to further cultivate a more inclusive economic ecosystem.

Advancing the southern Ontario innovation ecosystem through ongoing regional programming remains a focus for FedDev Ontario in 2024–25. The Agency collaborates with not-for-profit stakeholders, such as post-secondary institutions and business accelerators, that have a shared interest in catalyzing the growth of businesses in strategic sectors and strengthening southern Ontario's competitiveness and capacity for clean, innovative and inclusive economic growth. FedDev Ontario will continue to explore investment opportunities with not-for-profits that aim to provide platforms for small- and medium-sized enterprises to access key resources, including expertise and seed funding needed to drive growth and expansion and create well-paying jobs. The growth of existing and emerging strategic clusters are examples of key outcomes that the Agency will look to support, including burgeoning industries like the zero-emission vehicles sector. Through its convenor role, the Agency will look at how it can proactively collaborate with regional organizations and stakeholders to leverage their combined expertise and wide-ranging networks to support and promote economic growth in southern Ontario.

Providing strategic supports to businesses in southern Ontario will remain a critical component of FedDev Ontario's core business in 2024–25. The Agency will maintain its momentum by continuing to prioritize investments that have the potential to increase productivity, create sustainable jobs and make regional businesses more competitive in the global market while supporting the industrial transition and adoption of clean growth opportunities. Through its ongoing regional programming, FedDev Ontario will support businesses to invest in and adopt processes and measures to help them scale-up activities and grow their operations. The Agency will endeavour to leverage its streamlined program intake process to target key themes for funding, including the identification of strategic priorities. Through its continued delivery of the Regional Quantum Initiative (RQI) in 2024–25, supported projects will contribute to the ongoing evolution of the quantum computing sector in southern Ontario and the increased adoption and implementation of quantum technologies.

In addition to its direct program delivery role, FedDev Ontario will continue to engage with stakeholders to find solutions, identify opportunities and pathways and advocate on behalf of the region and its potential to support long-term investment and growth. FedDev Ontario will continue to provide support and advisory services to businesses and organizations to help them find programming that best fits with their needs. The Agency will maintain its collaboration with other federal departments and agencies to offer tailored supports and services through whole-of-government initiatives, such as Accelerated Growth Services, the Global Hypergrowth Program and the Global Skills Strategy.

Through its Small Business Services team, the Agency will provide information and support for new entrepreneurs and small businesses, including through the FedDev Ontario contact centre and website. The Agency will also share information through its ongoing engagement activities, and continue to target outreach with a diverse range of stakeholders, small businesses and underrepresented groups in the southern Ontario economy.

The Agency will continue defence-related regional economic development in support of the Government of Canada's Industrial and Technological Benefits (ITB) Policy. By way of this policy, FedDev Ontario helps southern Ontario companies, universities, colleges and organizations understand how to do business in Canada's defence sector, and how to promote their industrial and innovative capabilities to contractors bidding on large Canadian defence procurements.

Key risks

FedDev Ontario has identified two key risks for 2024–25.

First, macroeconomic risks could have significant implications for Canada and southern Ontario. Such risks include geopolitical challenges around the world and the lingering possibility of a global economic downturn in 2024. Such economic uncertainty could negatively impact southern Ontario's economy, mainly via a moderation of exports. Domestically, the current high interest rate environment (in an effort to tame inflation) has dampened consumer spending and business investment in the region. Higher interest rates result in costlier borrowing and higher debt payments for firms and consumers, leaving less available capital for spending, investment and overall growth. The moderation in consumption and investment, coupled with a softening labour market, is further stoking macroeconomic risks. An economic slowdown or a small downturn would, in turn, impact many firms' capacity to access the Agency's project-based programming as their resources would be focused on sustaining business operations rather than on development and expansion.

The increasing global competition for talent and broader skills shortages in the economy are also mounting concerns for the region's prospects for success. The acceleration of remote work, especially in high-productivity fields and occupations, has created an opportunity for top talent to work beyond their home area, resulting in an increasingly borderless world. As such, regional firms are facing a growing challenge to attract and retain high-end talent, which, in turn, impacts their ability to attract investment and create and retain the intellectual property critical for their growth. More broadly, as sectors like automotive and medical device manufacturing, life sciences, and financial services undergo innovation-led changes over the medium-term, southern Ontario's labour force will also need to adapt and targeted efforts will be needed to secure the skills of the future. Losing talent to other jurisdictions may inhibit regional and sectoral growth and productivity, and may affect the ability of projects funded by the Agency to fully realize their expected outcomes.

To help mitigate these risks, FedDev Ontario will make careful and deliberate investment decisions to respond to the needs and opportunities that will help better position the southern Ontario economy. Opportunities to invest in sectors with high-growth potential, such as the circular economy, zero-emission vehicle supply chain, manufacturing and innovative technologies, have the capability to position southern Ontario as a global competitor in these emerging areas. Similarly, investments that demonstrate broader economic impacts, such as the retention of key employers or industries in smaller or rural areas, may be critical for the resiliency of communities and the long-term prosperity of the region as a whole. The Agency will continue to provide support for firms, communities and innovation ecosystems to foster an inclusive economy that promotes underrepresented groups, including meaningful participation of Indigenous organizations and entrepreneurs. Key to these efforts will be active outreach and promotional activities to increase the visibility of the Agency's funding opportunities to diverse businesses across the region.

Throughout the year, FedDev Ontario will continue to engage with stakeholders and observe the regional economic landscape to inform its investment decisions. The Agency will continue to conduct rigorous due diligence, monitor the projects it supports and perform timely research and analysis. This work will help support programming and investment decisions to ensure the Agency remains responsive to the evolving economic environment and reflective of forward-looking trends and government priorities.

Related government priorities

Gender-based analysis plus

To create conditions for inclusive regional economic development, and to support its commitment to delivering public policies and programs informed and developed through an intersectional lens, FedDev Ontario will continue to work toward establishing more robust Gender-based analysis plus (GBA Plus) practices and to invest in projects that advance the economic participation of underrepresented groups.

In 2024–25, FedDev Ontario will continue to refine its approach to collecting inclusivity data and will build on existing tools and practices to enhance GBA Plus. A voluntary self-identification section is included in program application forms, enabling applicants to identify as part of an underrepresented group. This self-identification helps to highlight existing gaps regarding program reach and supports the Agency in prioritizing projects led, or majority-led, by underrepresented groups.

Additionally, FedDev Ontario will continue to require eligible recipients to sign contribution agreements that incorporate diversity, equity and inclusion considerations. The Agency will strengthen the presence of government-wide initiatives in its internal policies, programs and tools, including GBA Plus, the 50-30 Challenge and anti-racism assessment. Further to these efforts, FedDev Ontario will continue targeted outreach with a diverse range of stakeholders and work with other regional development agencies (RDAs) to explore new approaches to further increasing participation of underrepresented groups in programming.

The Agency appointed a new Diversity, Equity and Inclusion (DEI) Advisor that will help support and coordinate efforts across the Agency to achieve measurable outcomes under its DEI Action Plan. The DEI Advisor will collaborate with the Agency's GBA Plus leads and work with staff to reduce barriers to entry for underrepresented groups, contribute to a respectful and inclusive workplace and promote programs, policies, practices and services that reflect GBA Plus priorities.

United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals

FedDev Ontario shares the vision in the United Nations' (UN) 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals (SDGs) to advance peace and prosperity and supports Canada's Federal Implementation Plan and Federal Sustainable Development Strategy. On October 27, 2023, FedDev Ontario published its first Departmental Sustainable Development Strategy (DSDS) for the years 2023 to 2027. In line with the DSDS, the Agency commits to progress on SDG 8 (Decent Work and Economic Growth) by supporting workers, businesses and communities in their transition to a greener and more inclusive economy. This will be accomplished through economic development and diversification, skills and training investments and project development and growth assistance. This includes a $35 million annual target, by fiscal year 2024–25, to invest in clean growth projects that introduce practices to reduce carbon footprint or waste, support the adoption and commercialization of clean technologies, help greening of communities and support circular economy initiatives, zero-emissions vehicles and supply chain localization.

In it's DSDS, the Agency will also support SDGs 10, 12 and 13, including new commitments related to the Greening Government Strategy, and the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act.

More information on FedDev Ontario's contributions to Canada's Federal Implementation Plan and the Federal Sustainable Development Strategy for integrating the 2030 Agenda can be found in the Agency's DSDS.

Program inventory

Economic development in southern Ontario is supported by the following programs in the program inventory:

• Business Scale-up and Productivity
• Regional Innovation Ecosystem
• Community Economic Development and Diversification

Supporting information on planned expenditures, human resources and results related to FedDev Ontario's program inventory is available on GC Infobase.

Internal services

Description

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Plans to achieve results

In 2024–25, FedDev Ontario will continue to work toward excellence in all areas of internal services through ongoing collaboration, innovation, modernization and engagement. The Agency will continue to build and diversify its workforce to reflect the population it serves. Through initiatives that encourage respect, diversity, inclusivity and accessibility, FedDev Ontario will expand on past efforts to promote a safe, healthy and rewarding work environment and support mental health and wellness in the workplace. The Agency remains committed to being an accessible and barrier-free work environment by continuing to undertake action items in its published Accessibility Plan and by the internal promotion of digital accessibility tools. FedDev Ontario will continue to engage employees in shaping a workplace of choice together. In addition, the Agency will continue to embody the future of work in offering a hybrid work model to sustain a modern way of doing business.

Effective internal operations will remain a focus in 2024–25, particularly as it relates to internal governance, stewardship of financial resources, adherence to legislation and client service excellence. To support effective and efficient internal operations, FedDev Ontario will continue to build on the Agency's corporate governance structure for decision-making processes that are evidence-based and timely. The adoption of new digital tools to promote organizational and program innovation, as well as strong information management practices to guard data integrity, will continue to support the Agency's efforts to safeguard information and efficiently manage financial resources. The Agency will continue to explore and implement technologies, systems and tools to modernize and manage requests related to Access to Information and Privacy, effectively manage Grants and Contributions and support a dynamic hybrid workplace. FedDev Ontario will support government priorities, as well as promote accessibility, diversity, inclusion, employee wellness and innovation in the workplace. To maintain an environment of ongoing learning for staff, the Agency will build on the success of its talent conversation tool and talent management program to support employees through professional development opportunities. Combined, these initiatives allow employees to view their work through multiple lenses with a broader perspective that reflects the spirit of diversity, equity, accessibility and inclusion.

FedDev Ontario will ensure that clients and stakeholders are well-informed on accessing programs and funding streams. The Agency will achieve this through clear and accessible communications, well-organized events, social media and marketing and promotion of its impact and reach in southern Ontario. FedDev Ontario will also provide communications tools to stakeholders and clients as they continue to promote the Agency's support and services to their networks.

To maintain its commitment to excellence as an organization, FedDev Ontario's human resources management will remain an integral part of the Agency's operations. Targeted and collaborative employee recruitment and retention strategies will maintain business continuity and contribute to a diverse and inclusive workforce in 2024–25, emphasizing equity and sustainability while focusing on the needs of the Agency in achieving its mandate.

The Agency will continue to lead the work of the Ontario Federal Council (OFC), an interdepartmental leadership network chaired by the President of FedDev Ontario. The OFC will maintain focus on coordinating government-wide issues across its federal, provincial and municipal networks in the Ontario Region, outside of the National Capital Region. The OFC Secretariat plans to advance important government initiatives of public service renewal, values and ethics and advance diversity and inclusion throughout 2024–2025. The OFC will continue to lead discussions on the priorities of empowering a workplace of choice, strengthening a strategic and integrated workforce and modernizing and transforming how we support Canadians in the work we do. As a member organization in the OFC, FedDev Ontario will continue to engage with colleagues in the region and serve as a conduit between central agencies.

Related government priorities

Planning for contracts awarded to Indigenous businesses

In 2024–25, FedDev Ontario will continue to actively promote Indigenous businesses for its internal procurement of goods and services, such as office furniture, computer and office equipment and supplies, training and translations services and temporary staffing needs. FedDev Ontario will continue to encourage all of its acquisition card holders to use Indigenous suppliers for the purchase of office supplies. The Agency will leverage the Indigenous Business Directory (Indigenous Services Canada) to proactively identify future procurement opportunities.

Planned spending and human resources

This section provides an overview of FedDev Ontario's planned spending and human resources for the next three fiscal years and compares planned spending for 2024–25 with actual spending from previous years.

Spending

FedDev Ontario's financial resources for 2024–25 total $228.7 million, of which $190.0 million is allocated to grants and contributions to support economic development in southern Ontario. A further $38.7 million is allocated to support the operating costs of delivering programming and to provide internal services. Planned spending in 2024–25 has decreased by $237.1 million compared to forecast spending in 2023–24. This primarily reflects the winding down of relief and recovery initiatives.

Funding

Figure 1: Departmental spending 2021–22 to 2026–27

The following graph presents planned spending (voted and statutory expenditures) over time.

Departmental spending 2021–22 to 2026–27

Departmental spending 2021–22 to 2026–27

Fiscal year	Total	Voted	Statutory
2021–22	400,115,480	395,513,531	4,601,949
2022–23	599,186,696	594,231,512	4,955,184
2023–24	465,759,029	460,862,973	4,896,056
2024–25	228,681,532	224,949,821	3,731,711
2025–26	220,784,094	217,107,222	3,676,872
2026–27	203,958,365	200,384,677	3,573,688

FedDev Ontario's voted authorities temporarily increased in 2021–22 to 2023–24 to support national relief and recovery programs delivered across southern Ontario following the pandemic. Authorities normalize in 2024–25 as the Agency returns to its ongoing regional program authorities.

Estimates by vote

Information on FedDev Ontario's organizational appropriations is available in the 2024–25 Main Estimates.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides an overview of the Federal Economic Development Agency for Southern Ontario's (FedDev Ontario) operations for 2023–24 to 2024–25.

The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations with the requested authorities, are available on FedDev Ontario's website.

The $168.7 million variance in total expenses between 2023-24 and 2024-25 is primarily driven by a decrease in forecasted non-repayable contributions. Overall grants and contributions authorities are declining by $229.2 million due to the sunsetting of the Budget 2021 recovery initiatives at the end of 2023-24.

Human resources

FedDev Ontario increased its FTEs in 2021–22 and 2022–23 to support the delivery of economic recovery programming across southern Ontario. Reductions in FTE numbers in 2023–24 reflect the sunsetting of economic relief and recovery programs.

From 2024–25 to 2026–27, FTEs at FedDev Ontario align with the reduction in authorities related to the completion of economic recovery programming.

Corporate information

Organizational profile

Appropriate minister(s): The Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario

Institutional head: Nancy Gardiner

Ministerial portfolio: Federal Economic Development Agency for Southern Ontario

Enabling instrument(s):

Order in Council P.C. 2009-1410 dated August 13, 2009, amending Schedule I.1 of the Financial Administration Act to include the Federal Economic Development Agency for Southern Ontario as a department.

Order in Council P.C. 2009-1411 dated August 13, 2009, whereby the Department of Industry transferred to the Federal Economic Development Agency for Southern Ontario the control and supervision of the portion of the federal administration in the Department of Industry known as the Southern Ontario Regional Economic Branch.

Year of incorporation / commencement: 2009

Organizational contact information

Mailing address

Federal Economic Development Agency for Southern Ontario
101-139 Northfield Drive West
Waterloo, Ontario N2L 5A6
Canada

Telephone: 1-866-593-5505

TTY: Call 7-1-1 and ask the operator to connect the call to 1-866-593-5505.

Fax: 1-519-725-4976

Email: info@feddevontario.gc.ca

Website(s): http://www.feddevontario.gc.ca

Supplementary information tables

The following supplementary information tables are available on FedDev Ontario's website:

• Details on transfer payment programs
• Gender-based analysis plus

Information on FedDev Ontario's departmental sustainable development strategy can be found on FedDev Ontario's website.

Federal tax expenditures

FedDev Ontario's Departmental Plan does not include information on tax expenditures.

Tax expenditures are the responsibility of the Minister of Finance. The Department of Finance Canada publishes cost estimates and projections for government wide tax expenditures each year in the Report on Federal Tax Expenditures.

This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis plus.

Definitions