Speaking about the topic at Monday’s Municipality of Pictou County financial services committee meeting, Warden Robert Parker said currently only 30 of 51 municipalities in the province are involved in a REN, and that the province is hoping to get more of them on board.
“They want everybody in a REN, and they’re not getting it” with the formula that was in place, he said.
Regional Enterprise Networks provide regional economic leadership and help develop regional economic strategies, while supporting small, local businesses. They were introduced in 2013 after the federal government cut funding to the 12 regional development agencies in the province.
Coun. Larry Turner said five RENs are operating in the province now, with two – in Colchester and Cumberland – operating informally. He said in order to form a REN, two things have to happen. “All the municipalities have to be willing to participate in a REN… and second, we have to be patient, it could take a year, year and a half.”
At a recent meeting with members of the councils of the county and the towns of New Glasgow, Stellarton, Trenton, Pictou and Westville and representatives from the provincial Department of Municipal Affairs, Turner said they were advised that an inter-municipal agreement would have to be developed between the six municipalities.
“One good thing came out of meeting, the representatives there are in agreement that a REN is a doable thing,” said Turner.
He said if the REN isn’t created, no organization exists to promote Pictou County and help attract and retain business.
Parker said the members of the economic working group established by the municipalities want to stimulate the economy, and the group requested that the province allow a REN to proceed with the six Pictou County municipalities.
“The people who have been involved for a while really saw this as a way to move ahead. They want to cause something to happen, otherwise we’re just spinning our wheels.”
Parker said it’s estimated that the REN would cost between $300,000 and $350,000 to operate annually, with the six municipalities and the province each contributing half. He said the province agreed to pay $166,000.
Based on a 50-50 funding formula that involves half of the $166,000 being split evenly between the six municipalities and the remaining half based on population, he said the county’s portion would be slightly more than $50,000. He noted that this is considerably less than what his municipality was paying toward the Pictou Regional Development Agency, which was $114,000.
“The good message that came out is that the six municipalities in it wanted this to happen enough that they’re willing to give and take on the funding formula,” said Parker.
The idea is to have a board of directors made up of private sector business people, with oversight by a committee of elected officials. “The message from the Ivany report is to let business look after business,” said Turner, noting that politicians would not be directly involved with the direction of the REN.
Turner also said metrics would be put in place to measure its effectiveness.
The local municipalities had been trying to develop an inter-municipal agreement with East Hants, Truro, Cumberland and Amherst to form a REN, but in 2015 several councils decided not to participate due to the large geographical area, administration concerns and costs.
Earlier this year, the six Pictou County municipalities discussed trying to join the Eastern Strait REN (Antigonish and Guysborough counties). Parker said that didn’t work out because those municipalities were already too far along in the process.
Parker made a motion to proceed with the REN in Pictou County with the 50-50 funding model, and the PRDA money to be used as seed money. Approximately $217,000 is available from the former PRDA. The motion allows for further negotiations to take place and for a structure for the REN to be developed.
Despite some reservations from several councillors – including municipalities dropping out after the REN is formed, member voting structure, and if it should occur, how to pay for exceeding the budget – the motion was passed unanimously by county council.
In order to form the REN, Parker said each council will have to approve it.
