FedNor gets Ottawa funding boost as it becomes independent in helping northern Ontario economy

FedNor the organization created by Ottawa to boost economic development in northern Ontario will become a standalone agency, a move the federal government had for years said wasn't necessary.

The government said in the recently announced budget that it's working onFedNor'sstandalone status.

Economic Development MinisterMelanie Jolysaid thatduring the pandemic, it became clear FedNor's workis essential.

"What we decided to do was to empower FedNor to invest in protecting jobs in northern Ontario and, because of that new work FedNor was able to do, 5,000 people in northern Ontario were able to keep their jobs," she told Morning North CBC host Markus Schwabe.

The change will allow FedNor to make independent decisions withoutrelying on Ottawa for approval.

In 2016, NDP MP Charlie Angus put forward a private member's bill pushing forFedNorto becomea standalone agency, sayingthe change would mean more transparency and accountability.

As more people get vaccinated against COVID-19, Joly said,FedNor will be able to work to create jobs and boost the economy.

"We will be looking at a new plan of building back better and restarting the economy, and we will be creating jobs," she said.

"That's exactly where FedNor becomes extremely relevant because FedNor is nimble and flexible, and knows the entrepreneurs."

FedNor's funding will also increase as a result of the change. Joly saidthe agency usually receivesabout $60 millionannually, but that will go to roughly $100 million.

Listen to the whole interview here