FedNor — the organization created by Ottawa to boost economic development in northern Ontario — will become a standalone agency, a move the federal government had for years said wasn't necessary.

The government said in the recently announced budget that it's working on&nbsp;FedNor's&nbsp;standalone status.

Economic Development Minister&nbsp;Melanie Joly&nbsp;said that&nbsp;during the pandemic, it became clear FedNor's work&nbsp;is essential.

"What we decided to do was to empower FedNor to invest in protecting jobs in northern Ontario and, because of that new work FedNor was able to do, 5,000 people in northern Ontario were able to keep their jobs," she 

told Morning North CBC host Markus Schwabe.

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Perry Bellegarde, National Chief of the Assembly of First Nations, and Marc Miller, Minister of Indigenous Services, take part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020, to sign a protocol agreement to advance First Nations' exercise of jurisdiction over child and family services.

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Perry Bellegarde, National Chief of the Assembly of First Nations, and Marc Miller, Minister of Indigenous Services, take part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. Bellegarde said the federal government needs to commit to sustained funding over the next five to 15 years to bring infrastructure in Indigenous communities up to the same level as the rest of Canada. 

The change will allow FedNor to make independent decisions without&nbsp;relying on Ottawa for approval.

In 2016, NDP MP Charlie Angus put forward a private member's bill pushing for&nbsp;FedNor&nbsp;to become&nbsp;a standalone agency, saying&nbsp;the change would mean more transparency and accountability.

As more people get vaccinated against COVID-19, Joly said,&nbsp;FedNor will be able to work to create jobs and boost the economy.

"We will be looking at a new plan of building back better and restarting the economy, and we will be creating jobs," she said.

"That's exactly where FedNor becomes extremely relevant because FedNor is nimble and flexible, and knows the entrepreneurs."

FedNor's funding will also increase as a result of the change. Joly said&nbsp;the agency usually receives&nbsp;about $60 million&nbsp;annually, but that will go to roughly $100 million.

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Finance Minister Chrystia Freeland responds to questions from MPs after she delivered the federal budget in the House of Commons in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

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Economic Development and Official Languages Minister Melanie Joly says the move to make FedNor a standalone agency stems from the pandemic and how the agency has been essential in helping entrepreneurs in northern Ontario.

FedNor gets Ottawa funding boost as it becomes independent in helping northern Ontario economy

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