Harper Unveils Community Development Trust Fund

“The Government of Canada will assist vulnerable communities and laid-off workers by investing $1 billion in the Community Development Trust,” Prime Minister Harper said. “This is a major new national initiative under which our Government will support provincial and territorial efforts to build a stronger, better future for communities and workers who have been hurt by international economic volatility.” The Prime Minister and the Premier made the announcement at the Marwood lumber mill, just outside Fredericton. New Brunswick’s forest industry has been particularly hard hit by exchange rate fluctuations and turmoil in the U.S. housing sector. ... http://www.pm.gc.ca/eng/media.asp?category=1&id=1959 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. http://pm.gc.ca/eng/media.asp?id=1960

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