The Investissement Québec (IQ) reform, adopted in 2019, is producing results, according to its senior executives. Direct investments from abroad and from other provinces doubled over three years to reach $ 4.6 billion for the 2021-2022 fiscal year.
If it is difficult to measure the exact contribution of the government’s financial arms to achieve the strong impact of attraction, the President and CEO of Investissement Québec, Guy LeBlanc, argued at a press conference, Friday in Montreal, that IQ’s performance in promoting Quebec around the world is remarkable and has his organization the goal is straightforward.
A total of 121 projects were announced in 2021-2022. 85% of these investments come from subsidiaries of foreign companies already present in the province.
Last summer, for example, Danish LM Wind Power, a subsidiary of General Electric, announced a $ 160 million expansion project for its wind turbine blade factory in Gaspé. Of the 54 million government assistance, 29 million came from an interest -free and partially forgivable loan from IQ.
Since the financial year ended on March 31, hundreds of millions of investments in the battery industry in Bécancour (General Motors and POSCO Chemicals, as well as BASF) and for the establishment of the Moderna plant in Greater Montreal have not been included in data disclosed. However, these amounts will make it possible to reach the goal of $ 5.6 billion in foreign investment in 2022-2023.
” The pandemic hit. Despite the difficult months that followed, we adapted our habits, strengthened our teams and added expertise in under -exploited markets and new markets with high potential. “
Increasing sales outside Quebec
After the adoption of the reform led by the Minister of Economy and Innovation, Pierre Fitzgibbon, 70 people from Export Québec joined Investissement Québec International. The business unit now includes approximately 140 people out of a total of 1,090 employees.
More than 3,200 supports for companies seeking to internationalize and market their products and services were recorded during the last financial year. Sales worth $ 1.95 billion would have been made to international buyers, nearly double compared to 2018-2019.
The Crown corporation considers other Canadian provinces as foreign countries in terms of exports, which currently represent 46% of Quebec’s total domestic product. We need to increase our exports by 15 to 20 billion dollars to reach the 50% goal, explained the president of the international unit, Hubert Bolduc. In the battery industry, we should reach this figure.
What is the return on investment?
We do not know, in financial terms, the return on investment of financial aid or support provided by IQ.
Historically, approximately 60% of company sales made by companies have been the logical result of financial support, however, Mr. Bolduc underlined. In 2021, only 27% of the company’s sales will depend on a financial program, so 73% will be the result of support from our people.
Minister Fitzgibbon added that if there is a options menu offered to businesses (loans, loan guarantees, tax credits, share capital), financial support is not always required. There are projects that we give almost nothing, he said. A company can only be attracted to Quebec for low electricity rates.
An average return of “over 9%”
In 2020-21, IQ had a remarkable return of 25.1%, after a decline of 4.9% last year.
CEO Guy LeBlanc said financial performance in 2021-22 will be known in June, but says the average return over the past three years will remain always more than 9%.
Source: Radio-Canada
