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Six million dollars a year goes a long way to building and supporting the operation of telecommunication infrastructure across northern Ontario.

From http://www.timminspress.com/webapp/sitepages/content.asp?contentID=162447&catname=Local+News

FedNor funds get slashed - Michael Peeling, August 22, 2006

An economic program key to Northern Ontario's future has sustained a major budget cut of more than $6 million this year by the federal government, prompting concern from local business and politicians.

Funding for the Federal Economic Development Initiative for Northern Ontario (FedNor) has been reduced from $51.9 million to $45.5 million in its annual budget, which was announced by Minister of FedNor and Health Tony Clement (MP - Parry Sound-Muskoka) recently in Bracebridge.

FedNor's aim is to increase business opportunities, bolster economic development and ensure the sustainability of Northern and rural Ontario communities.

Although Clement has renewed the Northern Ontario Development Program, FedNor's chief source of funding, for five years, MP Charlie Angus (NDP - Timmins James Bay) isn't impressed.

"FedNor has always been the poor cousin of regional economic development structures," said Angus, pointing out that it's the only Canadian organization of its kind that isn't a standalone corporation, but an adjunct to Industry Canada.

Angus says that arrangement makes keeping track of the federal money spent on Northern Ontario even more difficult than it already is, which he believes allows cover for the party in power to play "shell games" with the money.

Timmins Chamber of Commerce president Tom Laughren can see far-reaching effects of the budget cut on the city's businesses.

"I think it will have a huge effect," Laughren said. "When we look at economic development locally, FedNor is always one of the key partners. A cut-back in money will effect business all over Timmins."

Laughren says the North has a big enough problem keeping young people in the region without a major cutback in money that often goes toward internship programs for students.

FedNor money was instrumental in the effort to keep the Monteith Correctional Facility open according to Laughren.

"FedNor was set up to level the playing field for Northern Ontario," Angus said. "We're a resource-dependent region. We send out royalties on resources and we do not get the same level of support back, so FedNor was set up to address that inequity in Ontario."

The other problem now, according to Angus, is that starting under Jean Chretien's Liberal government, a lot of FedNor's resources, including staff, have been put into projects in southern and eastern Ontario.

"It makes us question the Conservatives' commitment to the North. This leaves FedNor open to the kind of cuts that Clement is playing with right now."

Angus said that if the diversion of resources is a sign that a new provincewide economic development organization will spring up soon, he is fine with that, but believes that Northern Ontario always gets short-changed when provincewide funding initiatives are announced.

"We have to say 'no' to funding cuts like the one to FedNor, stand up and push back," Angus said. "We need to get revenues back from the non-renewable resources we send out."

Laughren said that he can't speak for other areas, but in Timmins FedNor grants are very important because businesses apply for them all the time.