OCRI's Jeff Dale

Ottawa's economic development agencies will make their case at city hall for a return to previous funding levels, despite another budget crunch looming for 2005.

"We didn't hope to be back into this debate so soon," said Jeffrey Dale, president of the Ottawa Centre for Research and Innovation. "It seems like we just got over it."

OCRI will begin consulting with the city immediately to stress the needs of the business community and how OCRI can continue to foster development.

"We want more money for economic development," said Mr. Dale, who wants to see an eventual return to funding levels of $2 million, last seen in 2001. This year, OCRI's funding was reduced 17 per cent to $1.5 million.

The Ottawa Life Sciences Council president and CEO Ken Lawless also plans to stress the accomplishments of his organization and the need for more funds to provide better opportunities for the city's life sciences industry.

His biggest challenge after this year's funding cuts is his weakened ability to respond to new opportunities, he said.

"There comes a point in time when, if the investment is not sufficient enough, you're not able to do the job properly. Then you don't get those benefits. That's the issue that has to be addressed and we're hoping that we'll be able to make a positive case to the city."

Mr. Lawless lost $66,000 from his core budget in 2004, forcing him to lay off three of seven staff, which significantly hindered his operation, he said. The council's funding was reduced 23 per cent to $220,000.

Jacques Burelle, president of the Ottawa Tourism and Convention Authority, is in a different position.

City council hopes funds from the volunteer destination marketing fee, implemented by the Ottawa Gatineau Hotel Association in June, will pay for core tourism authority operations. The hotel association has said it will ante up $1 million toward the tourism authority from the fee, but that leaves Mr. Burelle with an operating deficit of $673,000, he said.

"I'm waiting for confirmation of (how much) money both groups will flow to us," said Mr. Burelle. If the hotel association provides $1 million, Mr. Burelle thinks getting $673,000 from the city should not be difficult. The city provided a $1-million reprieve to the tourism authority last year.

Money not going to the tourism authority could flow to OCRI and the life sciences council, Mr. Lawless said.

"It may mean that the city will then have some dollars to make some reinvestments and so that is a possibility. We're not going to pre-judge this, but what we are going to do is sit down and work with the city and our stakeholders," said Mr. Lawless.

Mr. Dale and Mr. Lawless agree it has been challenging to provide the type of service they would like when all three levels of government are making cuts to programs.

"We have not been able to provide the services we've wanted to," said Mr. Dale. There is no denying the economic agencies provide value to the city, he said.

City council is focusing too much on expenses and Mr. Dale thinks it needs to implement strategies developed in the Smart Growth plan, such as the broadband initiative. Investing in economic development initiatives would bring increased tax revenues from more businesses, Mr. Dale said.

"I believe (councillors) understand we have to make some investment."

Mr. Dale will begin planning his budget this month. His priority for 2005 will be to implement the broadband strategy, support technology clusters, support opportunities for technology workers through talent initiatives, develop Ottawa as a place for investment and encourage entrepreneurial programs through the Entrepreneurship Centre.

Mr. Lawless will review his organization's activity from this year to determine an appropriate amount of funding.

"For (our) financial year, which was the end of June, we lost somewhere in the neighbourhood of about $37,000 and so we have to make that up. We've been able, through the course of the year, to increase project funding by 50 per cent and that's with reduced overhead and we can't sustain that, it's not possible."

Sustainable funding is the theme that will be stressed by all three economic development agencies.

"If we don't have sustained core funding, it's very difficult then to manage and do those projects, which means, in the end, the city loses our ability to attract investment from not just the industry, but the federal government and the provincial government," said Mr. Lawless.