LEGAL, Alta. – Don’t get Joe St. Denis started on the topic of how the
federal development agency Western Economic Diversification can help
small businesses like his.
“They haven’t done zero for us – squat,” fumed the president of
Mountain Meadows Food Processing Ltd., creator of a pea butter product
for people with allergies to peanuts.
“If we needed a consultant or somebody to tell us what to do or a good
talker…,” he said.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
“What we needed was cash to get us up and running. They gave us
nothing. Don’t get me started.”
Instead, start up cash for St. Denis’ venture came from family, friends
and some strangers who read about the pea butter venture in The Western
Producer.
“We got started,” said St. Denis. “But what is something called western
diversification there for, if not to help companies like mine?”
St. Denis’ problem was largely a question of timing. He needed start-up
capital, which the program no longer offers.
Western Diversification was started 15 years ago and in its early
years, it had capital to lend start up entrepreneurs like St. Denis. It
encouraged business dreamers to get in touch.
Since 1995, the focus has changed to helping industry groups and
coalitions. WD now offers soft support services such as co-ordination
and “facilitating” rather than the immediate boost of hard cash.
Nonetheless, there are hundreds of companies, associations and dreamers
across the West who swear by WD, rather than at it, because of the help
it gives even under the new rules.
Veteran University of Saskatchewan animal sciences professor C.M.
Williams has nothing but praise for the way WD has helped his group,
Saskatchewan Agrivision, in its search for ways to expand the
provincial farm economy.
“I would say one thing about WD that is not true of other agencies is
its turnaround time, which is invaluable to us,” said Williams, a
veteran of decades of bureaucratic wars and Liberal politics.
“We don’t have years to wait and they seem sensitive to that.”
Across the Prairies, there are scores of companies and projects that
credit WD help for their success, including a crucial early investment
in Prairie agriculture biotechnology research.
There are also some projects that never got off the ground, like a
proposed bison processing plant in Saskatchewan and an antler velvet
processing plant in Lloydminster.
Economists and political critics remain skeptical about the WD’s new
mandate and its emphasis on soft support. Critics see little planning
and a lack of strategy.
But WD minister Stephen Owen insists the federal government is
committed to the program and is convinced it is working because it
allows local communities and industries to set the tone and decide the
priorities.
Direct grants can lead to the political need for a fast payback, he
said.
“In my home province of British Columbia, central control of
(provincial) projects has led them to be centralized, standardized,
politicized and then marginalized. I think our approach is more
effective.”
Meanwhile, St. Denis proved he could launch without federal help.
Production of the new product began this year, domestic and
international market interest is growing and he employs more than 10
people in the plant north of Edmonton.
