Corporate Plan Summary 2009-2010 to 2013-2014

Table of Contents 

Executive Summary                                         

1.0  Overview of ECBC                                      

2.0  Strategic Planning Overview                           

3.0  ECBC’s Planning Environment                        

4.0  ECBC’s Economic Development Strategy         

       Policy and Advocacy                                      

     Community Economic Development               

Commercial Development                          

Property Development and Management         

Internal Services                                    

Regional Service Delivery                              

5.0  Key Performance Indices  

EXECUTIVE SUMMARY

Enterprise Cape Breton Corporation (ECBC) is a federal Crown corporation that promotes and coordinates economic development throughout Cape Breton Island and a portion of mainland Nova Scotia in and around the town of Mulgrave. In addition to its own programs, ECBC is also responsible for the delivery of programs of the Atlantic Canada Opportunity Agency (ACOA) on Cape Breton Island. 

ECBC has a history of working in partnership with various departments of the federal and provincial governments, regional development authorities, community development corporations, municipalities, businesses, and non-profit organizations to address a number of economic development initiatives.   

Over the past year, the Corporation embarked on an extensive strategic planning process with staff, senior management and the Board of Directors, that has resulted in a fundamental culture shift.  As a result of this process, a renewed emphasis has been given to organizational proactivity. In all aspects of the Corporation's work, employees, with the support of the Board of Directors, are encouraged to be proactive in the development of projects for clients and for the Cape Breton economy in general.  Employees will be empowered to make decisions, and have access to the appropriate training and support necessary to be effective professionals. Of equal importance is leadership. ECBC’s senior management will provide executive leadership to ensure that community and business initiatives are advanced. ECBC is also committed to partnerships, and will bring the appropriate stakeholders together to plan and execute activities for the betterment of the community. 

An environmental scan of Cape Breton Island and Mulgrave reveals that one of the biggest challenges facing the area is population decline. This decline has resulted in significant demographic shifts, particularly as they relate to the labour force. In 2009 ECBC will undertake an analysis of demographic trends on Cape Breton in an effort to understand the present and future implications for the Cape Breton economy. 

Over the planning period, ECBC will concentrate its efforts on six areas of business/services. The goal of each is to ensure that the Corporation is positioned to effectively meet the needs of businesses and communities in Cape Breton, helping them realize sustainable economic growth. The Corporation places a priority on ensuring that its resources are used effectively and efficiently to support the strategies outlined in this plan.  

The strategic direction over the next five years will focus on the following:

·         Policy and Advocacy

·         Community Economic Development

·         Commercial Development

·         Property Development and Management

·         Internal Services

·         Regional Service Delivery 

1.0       OVERVIEW – Enterprise Cape Breton Corporation

PUBLIC POLICY PURPOSE

ECBC is a Crown corporation, established in 1987 by the Government Organization Act, Atlantic Canada, (also known as the Enterprise Cape Breton Corporation Act).

The Corporation's fundamental public policy purpose is to develop and broaden the base of the Cape Breton economy.

ECBC’s enabling legislation provides the Corporation with a broad range of powers that include the authority to:

•           lend money either with or without security or interest;

•           fund grants;

•           purchase shares or securities;

•           guarantee repayment;

•           purchase, lease or otherwise acquire or sell land;

•           hold mortgages; and

•           do all other things the Corporation deems incidental or conducive to the attainment of its objectives.

As a Crown corporation, ECBC is a unique delivery model for economic programming. Its small geographic focus, local Board of Directors, and flexible mandate enable the Corporation to devise initiatives that are very specific to local needs and priorities.

CORPORATE PROFILE

As a parent Crown corporation, ECBC is a distinct entity that reports to Parliament through the minister designated for the purposes of the Atlantic Canada Opportunities Agency Act. In addition to its own programs, ECBC is responsible for the delivery of ACOA's programs on Cape Breton Island. Pursuant to a memorandum of understanding (MOU) with ACOA, ECBC is able to complement its economic development programs with those offered by ACOA. 

ORGANIZATIONAL STRUCTURE

ECBC is governed by a Board of Directors comprising the chairperson, the chief executive officer and five outside directors appointed by the Governor in Council. As per the ECBC Act, the president of ACOA is de facto the chairperson of the ECBC Board of Directors.  

There are two sub-committees of the ECBC board: Audit and Human Resources. The primary function of the Audit Committee is to oversee the Corporation's financial performance and to ensure the integrity, effectiveness and accuracy of ECBC's financial reporting, control systems, risk management process and internal audit functions. The primary function of the Human Resource Committee is to assist the board in fulfilling its oversight responsibilities with respect to the application of sound human resource policies and practices that support ECBC's mission and mandate. 

The ECBC Board of Directors contributes to the fulfillment of the Corporation's legislated mandate by overseeing the management and operations of the Corporation. The board supports the leadership and management of the Corporation in the achievement of its strategic and operating objectives through good corporate governance, the provision of advice and counsel and through input to the planning process, as well as the review and approval of the strategic business plan and annual report. 

The Corporation operates from its main office in Sydney, Nova Scotia, with a satellite office in Port Hawkesbury, Nova Scotia. Internally, ECBC is organized into a number of business lines and services, including commercial economic development, community development, property development and management, policy and advocacy, and supporting and enabling services.

Federal Identity Program

In complying with Treasury Board decisions to strengthen the federal presence and visibility of the Government of Canada through the Federal Identity Program, ECBC has incorporated the Canada wordmark throughout its corporate and promotional materials. The Corporation also works diligently to ensure acknowledgement of the contributions made by the Government of Canada, where appropriate, through its funding agreements and media relations. 

ECBC'S PURPOSE

As the principal federal organization for economic development on Cape Breton Island, ECBC focuses on the major issues affecting the economy of the area. In partnership with all levels of government, the private sector, and other community stakeholders, ECBC will promote and assist the financing and development of communities and industry with a view to creating sustainable wealth on Cape Breton Island*.

*The definition of Cape Breton Island includes the Mulgrave area. 

CORPORATE VALUES

The Corporation has adopted a set of values that drives ECBC's corporate culture and behaviour. These core values serve to guide staff in their daily interactions both internally and externally. Putting an emphasis on corporate values strengthens the organization by promoting behaviours that consistently demonstrate a focus on quality service and integrity. ECBC’s corporate values represent a commitment to the following: 

Ethically-based decisions and behaviour

ECBC is committed to maintaining the highest level of integrity and honesty throughout all aspects of daily business activities. 

Proactive approach in attracting business and identifying community solutions

Rather than be reactive, ECBC will work to proactively identify and address the key opportunities and challenges impacting the Corporation and the Cape Breton economy.

Effective stewardship of taxpayers’ dollars

The Corporation will work to entrench a culture of sound fiscal management in the delivery of programs that achieve results for Canadian taxpayers and maximize value for money. 

Service First Culture 

A philosophy that places the client first is the foundation of ECBC's corporate culture, and serves to guide the Corporation's daily business activity.   

Empowerment 

Allowing employees to realize their true potential and to be effective professionals in their respective areas of responsibility. 

Providing executive leadership within the Corporation and community 

For the Corporation to be truly effective in carrying out its mandate, its organizational culture must encourage executive leadership in identifying and addressing the economic development needs of the community and ensuring that projects proceed effectively. 

2.0       Strategic Planning Overview

Strategic planning is the process of determining an organization's long-term goals and identifying the best approach for achieving them. For ECBC, strategic planning contributes to the development of a road map to guide the Corporation in fulfilling its mandate over the next five years.  Broadening the base of the local economy is a complex, multi-faceted challenge that is impacted by global, national and regional economics beyond ECBC's control. The ECBC mandate is shared by all communities and enterprises on the island. Local residents view economic development in their individual communities as critical to their future. As such, strategic planning for ECBC should reflect and align with the economic development goals of the community at large.    

While the ECBC mandate is broad, encompassing the economic development of Cape Breton Island, the Corporation has been granted broad powers that include lending money, funding grants, guaranteeing repayment, purchasing and leasing real property, holding mortgages and "all other things the Corporation deems incidental or conducive to the attainment of its objects." Clearly the mandate and accompanying powers underscore the need for the Corporation to work strategically with the community and to assume an executive leadership role.   

To successfully execute its mandate, ECBC must look beyond its corporate confines to engage and leverage the resources of the community and other levels of government. In an effort to enhance the strategic approach for the Corporation and the island as a whole, ECBC will continue to develop and refine the strategic direction established during the current corporate planning process. In conjunction with stakeholders and communities, it will commence and lead a planning process to develop a strategic business framework that will outline a common vision for the island and a long-term business and community economic development plan. 

A key objective for the Corporation over the planning period is to pursue the priorities outlined in the current corporate plan with a view to engaging the Cape Breton community at large in the development of a strategic business framework that will serve as a roadmap for all stakeholders. As this framework unfolds, ECBC will review and revise its course to ensure that its strategic direction remains relevant to the local community and to the Corporation's shareholder, the Government of Canada. 

3.0       ECBC’s Planning Environment

At time of writing, the global economic environment remains turbulent. Volatility in financial markets has tightened credit conditions for consumers and businesses as the United States economy continues a downward spiral.  In this environment, Canada's economic growth prospects through 2009 are considered to be limited. Economists are forecasting that Canada will post little or no growth over the next year as world growth slows and the U.S. battles recession.[1] The Bank of Canada expects that weaker growth in the U.S. and other significant trading partners will increase the drag on the Canadian economy coming from net exports.[2]  The prolonged housing slump in the U.S. has affected Canadian exports of lumber and other building materials, and falling U.S. motor vehicle sales have adversely impacted the Canadian auto sector. 

Nova Scotia's energy sector is helping to boost the province’s economic prospects. The RBC Financial Group economics branch is forecasting overall growth for Nova Scotia in 2009. This is based on the assumption that spending will get under way for two megaprojects, the Keltic Petrochemical plant and the Maple LNG terminal in Goldboro, estimated to cost between $5.5 billion and $6 billion. An anticipated depreciation of the Canadian dollar is expected to relieve pressure on non-energy exports. These projects however, will have little direct impact on the Cape Breton Island economy. 

The economy of Cape Breton has been slowly restructuring as it moves from an industrial-based to a more product and service-oriented foundation. Although progress has been made, some key challenges remain, including out-migration, an aging labour force, distance from markets, a small export base, and employment seasonality in some industries. 

One of the most significant issues facing the Cape Breton economy at this time is population decline. Between the 1996 and 2006 census periods, Cape Breton lost 10% of its people. Population decline in Cape Breton mirrors a number of regions in Nova Scotia. However, the scale of the decline is significantly higher than any other region in Nova Scotia over this ten-year period. 

Cape Breton's labour force has been undergoing some fundamental changes as a result of the demographic shifts, particularly the trend toward an older work force influenced by the aging baby boomers. In the Cape Breton region this trend is considerably more pronounced, as it has been coupled with a long period of economic adjustment and decline resulting in a large out-migration of the population. Between 1987 and 2007 the percentage of the employed workforce in the 45 to 64 age group increased from 26% to 46% in Cape Breton. During the same period, the percentage of the employed workforce between the ages of 25 to 44 decreased from 54% to 39%.  

Net Migration - Cape Breton Island

From 2001 to 2007, Cape Breton Island experienced a net out-migration of 6,320 individuals. Over 95% or 6,007 of these people were under 45 years of age, and 68% were under 25. Statistics Canada small area data shows that in 2006-2007, 54% of the out-migration was to Alberta. 

Employment Cape Breton

Labour force indicators for 2008 (January-September) show improvement for Cape Breton, with strong employment growth compared to the previous year. The majority of the growth took place in full-time employment.  Although the long-term decline in the working- aged population continued, the region's labour force increased during this time period. The unemployment rate shows decline when year-over-year comparisons are made as the labour force increased and the number of unemployed decreased. Year-over-year comparisons also point toward a higher participation rate, as more people entered the labour force encouraged by the rise in employment.

Statistics Canada: Labour Force Survey

There are a number of large-scale projects currently underway or anticipated that could provide significant areas of economic activity for certain sectors on the island. 

Multimillion-dollar remediation projects for the Sydney Tar Ponds and the former mine sites owned and operated by the Cape Breton Development Corporation are currently underway. The remediation will create up to 150 construction jobs, providing opportunities for local, national and international companies. The tendering process for the cleanup includes set-asides for local economic benefits.   

A decision to proceed with the $300-million Donkin coal mine project is still pending. Xstrata PLC, a Swiss multi-national mining firm, was selected to revive the abandoned mine. A feasibility study is nearing completion. If the company chooses to proceed with the project, it will be two to three years before the mine is operational, employing up to 300 people.  

Laurentian Energy has announced a partnership with Galaxy SARL to design and construct a proposed multimillion-dollar container terminal at the Port of Sydney. The project is conditional on various factors including the dredging of the harbour, as well as approval from various federal and provincial regulatory authorities. Should the project proceed, construction of the container terminal could commence in 2010. 

All of the above said, Cape Breton is not immune to the slowing of the Canadian, US and international economies and marketplace, and it is not reasonable to believe that the Island economy will not come under pressure. What is not known is what the actual impact will be. 

OPERATIONAL IMPACTS 

In 2006-2007 a mandate review of ECBC was requested by the Treasury Board of Canada. The review is now complete and a final report has been accepted and finalized by the Mandate Review Steering Committee. A recommendation has been presented to the minister responsible for ECBC, who will proceed to Cabinet with options to reconfirm or amend the mandate of the Corporation. 

Request for Exemption from the Drawdown Policy on Crown Corporation Funding

The Cape Breton Growth Fund Corporation (CBGF) was incorporated on August 25, 2000, as a subsidiary of ECBC, with a mandate for economic development on Cape Breton Island and the Mulgrave area. The CBGF was set up specifically to administer an economic adjustment fund established by the Government of Canada and the Province of Nova Scotia in the wake of the federal government's decision to discontinue the coal mining operations of the Cape Breton Development Corporation.  

With the majority of the $91 million fund committed, the balance of the assets and liabilities (including project commitments) was transferred to ECBC on April 1, 2008, when the CBGF Corporation was dissolved. 

At March 31, 2008, the CBGF had an undisbursed balance of $21,156,000. The March 31, 2009, undisbursed balance is estimated at $10.6 million. This amount exceeds ECBC's operational requirements for several drawdown periods, and the current exemption expires on March 31, 2009. Consequently ECBC will be unable to drawdown its appropriation unless exempted. 

ECBC continues to disburse project funds to satisfy CBGF contractual commitments and to incur CBGF related administrative costs. It is anticipated that $10.7 million will be disbursed in 2008-2009. The balance of funds will be disbursed over the next two fiscal years, approximately $8 million in 2009-2010 and $2.4 million in 2010-2011. 

PLANNING PROCESS

To ensure consistency with the Government of Canada's priorities, ECBC's planning process takes into consideration the Government of Canada's plans and priorities, as outlined in documents such as Advantage Canada and the Speech from the Throne. The planning process for the 2009-2014 corporate plan consisted of:

•           an environmental scan carried out by the ECBC policy unit;

•           a review of ECBC's quarterly performance reports;

•           strategic planning sessions organized with ECBC staff;

•           strategic planning sessions carried out by ECBC senior management;

•           strategic planning review with ECBC's Board of Directors; and

•           a review of research carried out by the Corporation.

Government, business and community stakeholders are consulted on a regular basis in order to keep their concerns at the forefront of planning and economic decisions that regularly face ECBC.

In keeping with the Management, Resources, and Results Structure Policy of the Government of Canada, in 2007-2008 the Corporation initiated a process to develop a Management, Resources, and Results Structure for the Corporation. Over the coming year, the Corporation will work in consultation with the Treasury Board Secretariat to implement the new framework.

4.0       ECBC’s Economic Development Strategy

Every year, ECBC carries out a review of its strategy to ensure that it is well-positioned to effectively deliver on its mandate. As part of this process, the Corporation seeks to ensure that resources are utilized in the most effective and efficient manner.

The economic development strategy outlined in this plan is comprised of six areas of activity. They include Policy and Advocacy; Community Economic Development; Commercial Development; Property Development and Management; Internal Services; and Regional Service Delivery. Each is described below. 

POLICY AND ADVOCACY

ECBC's policy and advocacy function focuses on a range of activities designed to build a strong economy for Cape Breton. These activities result in policies and strategies that address the economic development needs of the Island. The unit collaborates with stakeholders and all levels of government to address barriers to long-term sustainable growth.

In developing the advocacy agenda for Cape Breton, ECBC works to ensure that national and provincial priorities are aware of the needs of the region, and that Cape Breton interests, priorities and concerns are considered when policy is developed.

Research and analysis are required to understand the economic challenges and opportunities facing Cape Breton and to guide the advocacy and policy-making activities of the Corporation.

In addition to these activities, the policy and advocacy function oversees all planning and reporting activities for the Corporation.

Several critical business initiatives have been identified to guide the unit in achieving its outcomes. However, there will be additional general and ongoing liaison as new issues unfold.

CRITICAL BUSINESS INITIATIVES: 

POLICY AND ADVOCACY

ECBC has identified four critical business initiatives which will be the focus of the policy and advocacy function over the planning period.

CRITICAL BUSINESS INITIATIVE #1

Heighten the profile of ECBC with a goal of creating awareness and understanding of the Corporation and programs offered.

During this planning period, the Policy and Advocacy unit will work to inform communities and other stakeholders of the various programs offered by the Corporation. This will be carried out through a number of community meetings, presentations, as well as one-on-one meetings. 

As part of its policy and advocacy role, the Corporation will also work with other levels of government to create an awareness of the Corporation's public policy purpose and overall strategic direction.

CRITICAL BUSINESS INITIATIVE #2

Create awareness among other government departments of local economic development initiatives, in an effort to advance specific projects by accessing funding or helping them advance through the regulatory process.

Over the course of the planning period the Policy and Advocacy unit will focus on three key priorities: transportation; environment; and tourism.  At the same time it will continue to respond to new and emerging priorities as they arise.

Transportation

The policy and advocacy function will continue to advance Cape Breton's interests in policy and program development with regard to Atlantic Gateway, in order to ensure that government initiatives are responsive to the needs of Cape Breton. It will also continue to work with the Port of Sydney and the Port of Melford to successfully implement port master plans.

Environment

Cape Breton has a significant opportunity to develop expertise and commercial opportunities in the environmental sector as a direct result of the environmental remediation work required through the Cape Breton Development Corporation and the Sydney Tar Ponds Agency.

During this planning period, ECBC will continue to work with a coalition of local, provincial and national institutions supporting the establishment of a leading research and learning facility in the area of environmental excellence and sustainability. 

Tourism

Recognizing the continued growth potential of this industry, particularly related to the convention and events markets, the Corporation will work with the industry and other stakeholders to implement an island-wide events strategy. In addition, the Corporation will work with industry, municipal and provincial levels of government to implement an island-wide tourism levy that will support future marketing and business development efforts.

CRITICAL BUSINESS INITIATIVE #3

Coordinate and develop the strategic direction of the Corporation in consultation with senior management, the Board of Directors, ECBC staff and other stakeholders.

The policy and advocacy function will lead a structured corporate planning process to review the Corporation's strategic direction for the next planning period.

Strategic Framework

Initiation of a structured consultation process to develop an island-wide strategic business plan. 

To be competitive in the global economic environment, it is imperative that Cape Breton communities develop a common vision for the island with a long-term economic plan. Over this planning period, the Policy and Advocacy unit will work with the office of the CEO to commence a process that will engage the community in the development of a strategic framework for Cape Breton Island. 

CRITICAL BUSINESS INITIATIVE #4

Provide timely and accurate reporting on the Corporation's goals and outcomes for the purposes of management planning, public reporting and accountability.

In 2007-2008, ECBC contracted the services of a performance management consulting firm to work with the Corporation in the development of a management, resources and results structure. Over this planning period, the Policy and Advocacy unit will work with the Treasury Board of Canada to implement this new structure.

Through the annual report process and quarterly performance reports, the Policy and Advocacy unit will provide analysis of the Corporation's performance against its overall objectives/critical business initiatives in an effort to verify that the Corporation is achieving its mandate.

COMMUNITY ECONOMIC DEVELOPMENT

For ECBC, community economic development is about engaging and empowering communities to take control of their destiny by pursuing opportunities leading to sustainable economic development.

Investments in communities are required to strengthen and enhance their economic foundation, to ensure they are an attractive place to live and invest. In order to achieve this, community initiatives must encourage and support the attraction of leveraged investment, the creation of sustainable wealth, the development of a competitive advantage, and the enhancement of quality of life.

CRITICAL BUSINESS INITIATIVES: 

COMMUNITY ECONOMIC DEVELOPMENT

ECBC has identified two critical business initiatives which will be the focus of the CED unit over the planning period.

CRITICAL BUSINESS INITIATIVE #1

Community Infrastructure

Work with economic development stakeholders, community leaders and organizations to identify and develop key infrastructure initiatives that strengthen and enhance the economic foundations of communities so that they are an attractive place to live and invest. 

Investments in infrastructure capitalize on the capacity, strength and opportunity present in the community, as identified in community economic development plans and strategies.

Community infrastructure initiatives will focus on community-led projects that link to strategic plans/sector priorities. Such projects must demonstrate sustainability; leverage community assets and opportunities; involve partnerships between government, communities and other stakeholders; and have measurable performance indicators.

CRITICAL BUSINESS INITIATIVE #2

Community Capacity Building

Work with economic development stakeholders, community leaders and organizations to increase the capacity in the community's decision-making, planning, and implementation of CED initiatives.

The Corporation will continue to strengthen community planning and development by working with communities and their development authorities to develop and implement practical strategic plans, and to ensure that communities have the tools necessary to implement those plans.

Tourism

The CED unit will work with the tourism industry on a number of island-wide initiatives throughout this planning period. They include a marketing strategy, a golf marketing strategy, as well as festival and events initiatives.

COMMERCIAL DEVELOPMENT

SMEs are one of the key economic drivers on Cape Breton Island.  Almost 90% of companies in Cape Breton have fewer than 20 employees. ECBC recognizes the contribution that SMEs make to the economy. The Corporation pursues a broad range of strategies to enhance their competitiveness and ultimately increase wealth in the region. 

CRITICAL BUSINESS INITIATIVES: 

COMMERCIAL DEVELOPMENT

ECBC has identified three critical business initiatives that will be the focus of the Commercial Development unit over the planning period.

CRITICAL BUSINESS INITIATIVE #1

Access to Capital

Provide access to capital to businesses on Cape Breton Island in areas where there are identified financing gaps, in an effort to create wealth and diversify the economy.

Due to the size and make-up of the Cape Breton economy and its distance from major markets, access to capital remains one of the greatest challenges for businesses. The ability to access capital from traditional lenders, venture capitalists and other levels of government is limited. Recognizing the challenges faced by SMEs, ECBC will work with potential and existing entrepreneurs on the island to assess and to provide as appropriate, access to capital.

Potential and Existing Entrepreneurs

The Corporation provides a continuum of funding programs for potential entrepreneurs.  Assistance will be directed at development and refinement of business proposals, marketing initiatives, e-commerce initiatives, innovation, human resource initiatives, and capital assistance.

For existing entrepreneurs, funding will be directed at business expansions or modernizations, the search for new markets, improved efficiency, innovation, and human resource initiatives.

CRITICAL BUSINESS INITIATIVE #2

Trade and Investment/Prospecting

To attract new business investment to Cape Breton and to work with local companies to encourage them to explore export opportunities and to assist them in becoming export-ready.

Foreign direct investment plays a major role in the Canadian economy by creating jobs, advancing productivity, and fuelling innovation and technology. In an effort to attract more investment to Cape Breton, ECBC will work in partnership with other government organizations to identify key off-island firms positioned to expand to Cape Breton as part of an investment promotion focus.

A need exists to work with local companies to encourage them to explore export opportunities and to assist them in becoming export-ready. To that end, over this planning period the Corporation will work with companies that have export potential by offering export readiness training, promoting marketing programs to encourage entry into new markets, and helping to prepare them for the international marketplace. 

ECBC will actively participate in provincial and other Government of Canada trade missions, and shows of relevance to local businesses.  

The Corporation will explore the potential to host incoming trade missions to Cape Breton in an effort to educate and expose potential markets to island products and services.

CRITICAL BUSINESS INITIATIVE #3

Sector Development

Focus efforts on those sectors deemed to be most critical to the local economy and with the greatest potential to generate sustained wealth, consistent with the report: Detailed Sector Profiles of the Cape Breton Economy.

In 2008-2009, ECBC contracted the services of an economic consulting firm to carry out a situational analysis of a number of sectors in the Cape Breton economy.  One of the objectives of the study was to identify those sectors with the greatest potential to generate sustained wealth. As a result of this exercise, opportunities for economic growth were identified in a range of sectors, which will serve to focus the Corporation's efforts over the coming years.

Energy

Over the planning period, the Corporation will explore the wide range of alternative energy opportunities that exists in Cape Breton today.  Opportunities include geothermal energy stored in mine water reserves; methane gas potential of the island's coal beds; green extraction of existing coal energy; biofuel crop production; and wind energy.

Tourism

Over this planning period, the Corporation will provide support for accommodation upgrades that address market deficiencies and meet customer expectations; packaging; efficiency improvements;
e-commerce initiatives; green products; experiential tourism products; and niche markets. 

Technology and Innovation

Because of its leading-edge, niche-market nature, the technology and innovation sector has significant growth potential. Cape Breton is well positioned to take advantage of the ever-increasing demand for web-based computer technologies and services. Technology and innovation also enhance the manufacturing and marketing of various high-quality niche products produced locally. This holds promise for existing firms and potential new entrepreneurs.

ECBC will work with InNOVAcorp and industry associations and networks such as TecSocial to promote and build capacity in this sector.

Transportation

Fundamental to the success of many of Cape Breton's economic sectors is the state of development and efficiency of the island's ports and gateway infrastructure. Access to timely and cost-effective shipping and the ability to move product, business people and tourists onto and around the Island is of critical importance.

The Atlantic Gateway presents a significant opportunity for the transportation sector on Cape Breton, offering the potential to increase economic development in the region through supporting and enabling businesses and services.

ECBC will continue to work in support of a coordinated effort with industry, stakeholders and all levels of government to ensure that transportation issues remain at the forefront in an effort to take advantage of economic opportunities presented, particularly through the Atlantic Gateway initiative.

PROPERTY DEVELOPMENT AND MANAGEMENT

The Enterprise Cape Breton Corporation Act provides the Corporation specific powers related to property management.

The Corporation has the ability to purchase, lease, and sell land, and to hold mortgages. These activities serve to support the Corporation’s mandate. Property can be used as a development tool to complement funding programs. In addition, proceeds of sales can be reinvested in other development activities. 

Property management has become a significant part of the activities carried out by the Corporation, as a result of the numerous properties transferred to ECBC from the Cape Breton Development Corporation. In addition, capital budgets have increased as the Corporation actively pursues real property, acquisition opportunities that complement economic development activities.

Surplus revenues from real property leases and from land sales go directly into economic development projects within ECBC's mandate area.

In addition, as part of the land transfer/disposal process, the Corporation makes land available to businesses and organizations in an effort to foster economic development opportunities. Both activities serve to support the economic development mandate of the Corporation.

In addition to land holdings, other real property assets include the Corporation's head office in Sydney, N.S., the Point Edward Resource Centre (agricultural property), the Port Hawkesbury Business facility (office space), and the Northside Manufacturing Facility. 

CRITICAL BUSINESS INITIATIVES: 
PROPERTY DEVELOPMENT AND MANAGEMENT

ECBC has identified four critical business initiatives that will be the focus of the Property Development and Management unit over the planning period.

CRITICAL BUSINESS INITIATIVE #1

Facilitate real property transfers to provide incentives for investment to create wealth and reinvest resources into program initiatives.

Real property will be managed in a manner that will preserve the maximum long-term benefits to Cape Breton and the Mulgrave area. ECBC’s property inventory will be made available to the public to promote investment or acquisition opportunities. To complement this process, ECBC will actively promote land and other property holdings on its website, through a request for proposal process and advertising.

The development of a new MOU with the Cape Breton Development Corporation is in progress. Meetings between the respective CEOs have occurred, and ECBC anticipates that a new MOU will be signed. The Cape Breton Development Corporation has indicated that they are developing a formal strategic plan for land divestiture, and when this is approved by their Board of Directors, they will address the MOU.

In June of 2006, the Cape Breton Development Corporation transferred 96 properties totaling 4,412 acres of land, which represents a significant property portfolio to be managed by ECBC. In the absence of an MOU, ECBC and the Cape Breton Development Corporation have continued to work together to identify properties with economic development potential, and have redeployed additional properties for commercial and community development purposes.

CRITICAL BUSINESS INITIATIVE #2

Ensure a fully operational property management information system that is essential to make informed investment decisions regarding real property. In addition, a web presence will be developed that will allow full access to all real property listings.

Data will be transferred from the Cape Breton Development Corporation, internal records, and the Nova Scotia Property Online website to the  Property Records System of DARR (Cape Breton) Limited, ECBC’s real estate subsidiary.

This information will be accessible to the public through the real estate holdings link on the ECBC website and the Directory of Federal Real Property listings.

To complement this process, ECBC will actively promote land and other property holdings on its website, through a request for proposal process, as well as through general advertising.

CRITICAL BUSINESS INITIATIVE #3

Provide effective property management services for all real property assets held by ECBC. This includes managing lease and rental agreements; preparing requests for proposals and specifications for repairs and maintenance; and tendering and managing the general maintenance of the land and buildings.

During this planning period, as part of ECBC property management activities, the Corporation will monitor building infrastructure and day-to-day operations to ensure proper function, and that tenant workplace concerns are appropriately addressed in a timely fashion.

CRITICAL BUSINESS INITIATIVE #4

Ensure adherence to the Canadian Environmental Assessment Act, which sets out the responsibilities and procedures for carrying out the environmental assessments of projects which involve federal government decision-making.

The Property unit is accountable for evaluation and mitigation measures for ECBC project requirements under the Canadian Environmental Assessment Act. This function supports ECBC’s core program delivery by fulfilling its obligations under the act.

INTERNAL SERVICES  

The primary function of Internal Services is to ensure that resources are used effectively and efficiently, and that administrative systems and services are in place to enhance management decision-making, managerial accountability and operational control.

Internal Services includes a wide array of administrative activities that support ECBC programs and management. It includes finance and administration, human resources, communications, access to information, internal audit, legal and information technology.

CRITICAL BUSINESS INITIATIVES: 

INTERNAL SERVICES

ECBC has identified six critical business initiatives that will be the focus of Internal Services over the planning period.

CRITICAL BUSINESS INITIATIVE #1

Communications

Increase public awareness of the Corporation's focus - (i.e. its critical business initiatives, its sectors of interest, and its culture and values).

In this planning period, Communication Services will focus on increasing public awareness of the Corporation and its programs and services, through improved public relations activities including news releases, public events, speeches, paid advertisements and a revamped website.

In the interests of transparency and good governance, ECBC will be holding an annual meeting in 2009-2010, to inform the public of its strategic direction and receive feedback from the community.

CRITICAL BUSINESS INITIATIVE #2

Access to Information and Privacy

Respond in a timely manner to requests for information under the Access to Information Act and the Privacy Act.

In keeping with ECBC obligations under the Access to Information and Privacy Acts, the Corporation will continue to provide staff training so that it can respond to applications and manage its responsibilities under the acts.

CRITICAL BUSINESS INITIATIVE #3

Finance and Administration

Provide the Corporation with efficient and effective accounting and reporting that are consistent with generally accepted accounting principles (GAAP) and also provide timely information as necessary to stakeholders and fulfill the needs of employees, suppliers and clients. 

Key activities to be undertaken by the unit in this planning period are the implementation of new financial instrument disclosure requirements of the Canadian Institute of Chartered Accountants.

In addition, International Financial Reporting Standards (IFRS) will become mandatory accounting standards for all Canadian "publicly accountable enterprises" including Crown corporations, for fiscal years beginning on or after January 1, 2011.

Recently, several stakeholders expressed concerns to the Public Sector Accounting Board (PSAB) regarding applicability of IFRS for government business enterprises and government business-type organizations.  As a result, the PSAB is developing an invitation to comment, seeking additional input from all its stakeholders. The outcome of this exercise is presently unknown. Therefore, ECBC will continue with a diagnostic assessment for conversion to IFRS in order to meet the present requirements.

CRITICAL BUSINESS INITIATIVE #4

Human Resources

Ensure that ECBC's labour relations function operates effectively and efficiently by maintaining a fair and consistent relationship with bargaining unit staff and excluded management personnel, by addressing human resource issues, always mindful of the Corporation’s responsibility to provide quality service to its clients.

Human resource planning over the coming years will include the development of a new executive performance review process, a review of the Corporation’s succession planning, as well as a review of the balance of human resource policies. ECBC is in the process of negotiating its first collective bargaining agreement in a manner that is reflective of its obligations to all stakeholders and clients of the Corporation. The process is ongoing, and it is anticipated that the implications of the ratified collective bargaining agreement may affect costs and workload.

CRITICAL BUSINESS INITIATIVE #5

Information Technology

Provide cost-effective information technology services that are reflective of a modern government information technology environment, and that meet the needs of ECBC staff.

In 2004-2005, ECBC entered into an MOU with ACOA for the provision of information management and technology services. Under this agreement, ACOA assumes the responsibility for the management of the information management and technology services for ECBC.

Over the planning period, the Information Technology unit will continue to implement services in accordance with the current MOU with ACOA, as well as maintain ECBC's own specific information systems, not covered by the MOU. The unit will also assist with enhancement of the ECBC website. Management will also commence a process of renewing the MOU with ACOA that will articulate in greater detail the fee-for-service arrangement. 

CRITICAL BUSINESS INITIATIVE #6

Internal Audit

Provide internal audit function in accordance with the needs of the Corporation and consistent with the Financial Administration Act (s. 131(3)).

ECBC's Internal Audit unit works in conjunction with the Office of the Auditor General of Canada, which is the official auditor for the Corporation. The main objectives of the unit are to assist senior management in achieving and maintaining efficiency and effectiveness in operations with due regard to economy; to report the degree of compliance with established policies, plans and procedures, applicable laws and regulations; and to review control over assets and expenditures.

REGIONAL SERVICE DELIVERY

Deliver  programs and services, on behalf of the Government of Canada, in an effort to increase the opportunity for a coordinated approach to economic development on Cape Breton Island and, specifically, to enhance the growth of both earned incomes and sustainable employment in the region.

In addition to its own programs, ECBC is responsible for the delivery of ACOA's programs on Cape Breton Island. In 1995, ECBC and ACOA entered into an MOU under which ECBC delivers ACOA's programming on Cape Breton Island and in the Mulgrave area. The MOU was renegotiated twice, each time for additional five-year terms. The latest MOU remains in effect until April 1, 2010. ECBC will engage in a process to renew the MOU on a fee-for-service basis.

The following programs and services are delivered by ECBC on behalf of ACOA.

•           Business Development Program (BDP)

•           Consultant Advisory Services (CAS)

•           Community Futures Program

•           Atlantic Investment Partnership (AIP) - Second Wave

As a delivery agent for ACOA on Cape Breton Island, ECBC supports ACOA's structure of program activities. A more detailed account of ACOA's activities can be found in the Atlantic Canada Opportunities Agency Estimates: Report on Plans and Priorities, which is available at www.acoa-apeca.gc.ca/  

5.0       Key Performance Indices

In the advancement of the Management, Resources and Results Structure (MRRS) for ECBC, the Corporation developed a set of performance indicators that will serve to measure its overall progress in achieving its business strategy and progress in carrying out its mandate.

While a number of indicators have been changed since the 2008/2009 Corporate Plan, comparisons can continue to be made to previous years. The Corporation will continue to track leveraged investment for both commercial and community economic development activities. The amount of information for both these areas will be enhanced to give a clearer picture of the impact of the Corporation's assistance. By way of case studies, the Corporation will look at actual results realized for individual businesses as a result of ECBC assistance, including incremental export sales, new export markets, and number of new employees.  In addition, performance indicators have been added to track the Corporation's trade development and sector development activities.  Through a number of case studies, ECBC will also report on the outcomes of community infrastructure and community capacity building projects and demonstrate their impact on communities around the island.

Advocacy will continue to link actual advocacy priorities and interventions to economic development outcomes.  The level and scope of research undertaken by the Corporation will continue to be reported through the Policy and Advocacy function. This information will now be enhanced to demonstrate its impact on the Corporation's strategic direction.

Performance indices are now included for Property Development and Management, Regional Service Delivery and Internal Services.   
 

Enterprise Cape Breton Corporation