The Distribution of Dree Sponsored Manufacturing Investments in Atlantic Canada 1972-75

The formation in 1969 of the Department of Regional Economic Expansion (DREE) was widely welcomed in Atlantic Canada; this federal initiative represented the intent to provide a more coordinated and comprehensive institutional framework within which to administer an enlarged system of financial support for programmes of regional economic development with funding priorities assigned to Eastern Canada. However, even though DREE has been extremely active and visible in the region in providing assistance for infrastructure provision, manufacturing expansions and a variety of other activities, it has, since its inception, faced a mounting tide of criticism. This paper constitutes a further analysis of the RDIA programme for the 1972-75 period during which time the scheme became firmly entrenched, widely known to entrepreneurs both inside and outside the region, and the policy of (decision-making) decentralization completed. The scope of the study is an examination of the allocation of RDIA grants awarded to manufacturing firms in the four Atlantic Provinces. In particular an attempt is made to assess the extent to which the distribution of RDIA awards has been consistent with the long run strategy for development advocated by DREE for Atlantic Canada. The next two sections outline more fully the objectives of the paper and the nature of this strategy.