The agencies that provide economic development to Nova Scotia’s municipalities are scrambling to redo their budgets after the province cut some of their funding and changed their payment model.

Provincial funding for regional enterprise networks has been reduced by 20 per cent, and instead of a lump sum for operations, the networks have to apply for each economic development project and convince the government its activities have measurable results.

Tyler Mattheis, CEO of the Cape Breton Partnership, which runs a regional enterprise network for CBRM and one for the rest of the municipalities on the Island, said the networks all used to work together.

“It’s now competitive and less collaborative, and certainly collaboration — not just in Cape Breton but across the province — has been part of our success,” he said.

While some CBRM officials have expressed concerns that the provincial funding cut might mean layoffs at the network, Mattheis said that’s not in the plan.

At least, not yet.

Winners and losers

“We now are currently in the midst of retooling our business plans,” he said. “As this [application] process delays our certainty, the impact is yet to be completely determined.”

Mattheis said the Cape Breton and CBRM regional enterprise networks have applied for project funding based on existing economic development plans, but the province won’t provide an answer until this summer.

He said competition for funding is not necessarily a bad thing, but it will mean there are winners and losers.

“The fact of the matter is there’s less dollars to go around,” Matthies said. “If we are 100 per cent successful, there’s no doubt that other regions will have a fairly severe budget shortfall.”

The networks provide labour market and other economic statistics to prospective companies looking to start or expand in the region, as well as training for municipal staff.

They also promote immigration to help companies find employees, and promote green energy initiatives and the creative economy in Cape Breton.

Mattheis said the networks are also now working to attract the defence industry to Sydney harbour and the Strait of Canso after the announcement earlier this year that the coast guard is considering Sydney for an icebreaker maintenance facility.

Last year, the provincial government spent $1,866,000 supporting regional enterprise networks, an amount that’s been reduced by $373,000 this year.

In an email, the Department of Growth and Development said the new approach to funding focuses on business navigation and pathfinding, retention and expansion, and regional co-ordination.

It said collaboration is one of the evaluation criteria for funding applications.

The regional enterprise network for CBRM costs the municipality $300,000 annually, which until now has been matched by the province.

Mattheis said the network generated $21.5 million in direct economic impact last year through support for immigration, film and television production, and export development.

He said that bodes well for the future, regardless of how the work is funded.

“I’m confident that we will be successful,” he said. “The degree to which we are is a little bit outside of our control.

“We have a strong track record of achieving the goals the province has set for us, but in this provincial budget, large line items have been reduced.”

CBRM Coun. Steve Parsons, who works in economic development for Eskasoni First Nation and sits on the oversight committee for the Cape Breton network, said despite the overall cut in funding, approving projects on merit is better than just giving money to the networks.

“I think if you have the right plan and you execute that plan, then hopefully at the end of the day you’re more successful,” he said.

“You don’t want to look at something at the end of the year and realize you spent $300,000 and you didn’t get a big bang for your money.”

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