Councillors support cutting funding to the city's economic development agencies but have not yet decided by how much.

Last week's meeting of the corporate services and economic development committee ended with a vote favouring significant funding cuts to the three agencies.

Unless councillors decide otherwise by March 24, the Ottawa Centre for Research and Innovation (OCRI) will see a 53-per-cent decrease in funding, while the Ottawa Life Sciences Council (OLSC) will have to deal with a 47-per-cent reduction.

The most drastic cut will be to the Ottawa Tourism and Convention Authority, which will likely shut down if a proposed 89-per-cent cut in funding goes through, its president said.

"The city does have a role to play and a responsibility in nurturing the economy and fostering the right atmosphere," said Innes Ward Councillor Rainer Bloess.

"Part of that is having agencies in place that bridge the gap between what the city does here and what's happening out there and, obviously, it takes dollars to do that.

"Now, what the right amount is, I haven't determined quite clearly what (that) is."

Goulbourn Ward Councillor Janet Stavinga said she is prepared to support the economic development agencies, but not with full funding.

"I'm willing to see some money flow to those agencies because I know there's value for taxpayers' dollars in terms of the amount that they can leverage and the sort of venture capital they can bring to the city.

"But I (am) not prepared to support 100-per-cent reinstatement.

"Between now and then, I'm going to be having quite a number of discussions to find out what level I can support."

With his constituents divided over the issue of a tax increase, Orleans Ward Councillor Herb Kreling said the possibility of restoring funding to the economic agencies still exists.

"This whole budget discussion has become extremely divisive in our communities and my hope, at the end of the day, is we will find continued partnerships with our economic partners and with our cultural and social service partners."

Kreling said he would not make a final decision until he has listened to community members and standing committees present their cases.

Some councillors on the corporate services committee said they think OCRI and the life sciences council should continue to receive their current funding, but the tourism authority could sustain cuts more easily because it has the best chance of finding alternate revenue.

"I see a great deal of merit in continuing to fund the Ottawa Life Sciences Council and OCRI and less merit in funding the OTCA ... believing that a hotel tax would be of benefit," said Cumberland Ward Councillor Rob Jellett.

Baseline Ward Councillor Rick Chiarelli agreed, saying he does not want to see any reductions in funding to OCRI or the life sciences council. However, he is "up in the air" concerning support for funding cuts to the tourism authority, saying the volunteer "destination marketing fee" hoteliers are hoping to implement in the next few months should not be used solely for advertising Ottawa, but also to help fund the tourism authority.

"It's got to be used for both elements."

In a column written for the Ottawa Business Journal two weeks ago, tourism authority president Jacques Burelle explained the city's funding is used solely for core operations, while the hotel levy would support only marketing initiatives.

"When we speak of hotel tax revenue, we are speaking of new advertising and promotional dollars. Ottawa Tourism would not be able to use any of these funds for its core operations. 'Core funding' is an investment the City of Ottawa makes that enables the OTCA to promote the city."

Bloess believes council is leaning toward a tax increase and the amount of that increase will largely determine how councillors vote on the fate of the economic development agencies.

"For me, what's proposed is too severe and, in some cases, we know it will either kill the agency off or it will limit their activities to such a degree that their usefulness becomes questionable and that's what we have to avoid," said Bloess. "I am acknowledging we have a role to play, it's to what degree do the dollars flow in to support that."