Federal budget 'very positive' for Waterloo tech sector

The latest federal budget was described as "very positive"for Waterloo Region's tech sector, but officials caution that the spending proposals lack sufficient detail and could threaten to widen the field of communities competing with the region for federal funding.

Federal Finance Minister Bill Morneau tabled his budget Wednesday, one he said is aimed at getting Canadians ready for a changing labour market by making a broad $1.18 billion investmentin innovation and training, including job skills.

"It's a very positive budget,"CommunitechspokespersonChrisPlunketttoldThe Morning Editionhost Craig Norris Thursday.

"There's a real strong focus on skills. A lot of our companies are growing incredibly fast andfinding the right employees for jobs can be challenging. There's a lot of unfilled jobs in the region right now," he said.

Venture capital

Among the initiative included in Wednesday'sfinancial blueprint was the Global Skills Strategy, a program announced prior to the budget by the federal Liberals, aimed at fulfilling tech companies labourneeds by easing border restrictions on highly skilled workers from abroad whose retinue of talents can't be found at home.

"Another big tranche is venture capital," Plunkett said. "There's $400 million going to a venture capital fund and I think a lot of that will flow to local companies."

Plunkett also praised efforts to include startups in more federal government contracts, setting aside $50 million in this latest budget to allow the government to procure from fledgling companies.

"It's really hard for a lot of our smaller companies to sell into the government," he said.

Details needed

The Communitech spokesman said innovators and entrepreneurs are still waiting to see the final featuresof many of the programs unveiled by Bill Morneau on Wednesday.

"We still need to see some of the details," Plunkett said. "I think it's all going in the right direction, but we're going to see how much of a difference it can make. We're really optimistic."

That optimism is also followed by a healthy dose of caution: with more federal money for innovation and entrepreneurship, there also comes increased competition, with the federal government looking to repeat Waterloo Region's success in other places.

The budget creates Innovation Canada, with $950 million over five years to support innovators and build hubs for innovation known as "super-clusters," modeled on the success of tech focused communitiessuch as Waterloo Region.

The funding is meant for innovative industries and is not limited to just startups:advanced manufacturing, bio science, agri-food and clean resources are just a few of the areas mentioned.

Victim of success

While many might see the government's efforts to replicate Waterloo Region's accomplishments in other communities as confirmation of success, Regional Chair Ken Seilingsays it doesn't heraldthe region becoming a victim of thatsuccess.

"They cite us as an example of a successful tech cluster," he told The Morning Edition host Craig Norris Thursday.

"I hope that doesn't mean that funding doesn't flow elsewhere and it doesn't dry up our support here because we still remain one of the major ones," he said.

"Hopefullythere will be more money to support what goes on in theToronto-Waterloo Region corridor and hopefully itwon't shift money away from us to build them up,"Seilingsaid.

"It's a concern. We'll have to wait and see."