When people in Powell River are asked what is the most important issue facing the city, the number one answer is jobs and economic development. But is the city being served well by those who have been given the responsibility to attract or support new businesses?
Community Futures Powell River (CFPR) is an agency with a mandate to help entrepreneurs through training, loans, workshops and more. It is funded by Western Economic Diversification Canada (WEDC), a federal government agency.
There are 34 Community Futures offices in BC and, while their broad mandates are the same, there is vast difference in how these are carried out.
Each office has independence and is run by an executive director responsible to a local board of directors. There is apparently very little oversight by WEDC or Community Futures Development Association of BC.
If you look at Community Futures Sunshine Coast in Sechelt, the difference between programs offered there and here in Powell River is striking. Sechelt features the highly acclaimed Local Entrepreneur Accelerator Program, provided by Simon Fraser University, and a Work Hub, a “shared work space for students, professionals and entrepreneurs.” Our local Community Futures has neither of these programs.
Community Futures offices are given a mandate to provide specific programming for women, youth, first nations and people with disabilities. Pam Krompocker, CFPR’s executive director for almost 20 years, stated in an email that her office was active in all these areas, but provided little evidence that these mandates are being met in Powell River.
In terms of loans, each Community Futures office is required by WEDC to have 75 per cent of its investment fund maintained in active loans. According to Krompocker, the office is in compliance. That may be technically accurate, but in 2014-15, when CFPR made just five local loans, only 34 per cent of its total investment fund assets was in loans receivable.
In 2015-16, that figure was about 42 per cent of total investment fund assets. This suggests underperformance in terms of the number of loans that could be helping Powell River businesses.
Community Futures Powell River’s newsletter highlights many local businesses that have benefitted, but $2.7 million in cash-on-hand suggests that many more could be benefitting.
A major problem at CFPR is the high turnover in a key staff position, the loans officer/business analyst. The current holder of that job is the fifth in four years. This may help explain the office’s underperformance, as it takes time for a loans officer to get to know the community.
The previous loans officer was fired on December 1 last year after less than a month on the job and the day after the CFPR business investment committee had unanimously approved a $150,000 loan. It was only the second time that year the committee, made up of local businesspeople and CFPR staff, had met.
Many Community Futures branches post detailed rules and protocols and previous years’ financial statements on their websites.
North Cariboo Community Futures has 11 pages of governance and accountability policies online. As of press time, no such document is featured on CFPR’s website. Financial reports were also absent.
City of Powell River councillor Karen Skadsheim, former city liaison on the CFPR board, stepped down this past spring. According to Skadsheim, the local office falls short on transparency, engagement and accountability. She said it does the minimum required and it is up to the CFPR board to change that.
I couldn’t agree more.
Murray Dobbin is a Powell River freelance writer and social commentator.
