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Section 5: Information Available Online

5.1.1 Summary Table of Priorities by Strategic Outcome

Departmental Priority	Supported by Program Activity	Indicator	Performance Status
A Fair, Efficient and Competitive Marketplace
Continuing to modernize marketplace frameworks in support of a highly competitive and innovative economy for the benefit of all Canadians	Policy Sector – Marketplace Operations Sector – Marketplace Spectrum, Information Technologies and Telecommunications (SITT) Sector – Marketplace Office of Consumer Affairs – Marketplace Competition Bureau – Marketplace Canadian Intellectual Property Office – Marketplace	Barriers to competition	In 2003, Canada tied for sixth place among Organisation for Economic Co-operation and Development (OECD) member countries in terms of having the least restrictive barriers to competition. Note: Industry Canada recognizes that data sources for this indicator are no longer relevant. Revised indicators and associated data sources are being developed.
		Regulatory and administrative capacity	In 2003, Canada ranked second among OECD countries in terms of having the least restrictive regulatory and administrative capacity. Note: Industry Canada recognizes that data sources for this indicator are no longer relevant. Revised indicators and associated data sources are under development.
An Innovative Economy
Ensuring the strategic allocation of resources Supporting the generation and commercialization of knowledge	Policy Sector – Science and Technology (S&T) and Innovation Industry Sector – S&T and Innovation SITT Sector – S&T and Innovation Communications Research Centre Canada – S&T and Innovation Technology Partnerships Canada – S&T and Innovation	Government expenditure on research and development (R&D)	In 2006-07, the federal government's expenditure on R&D totalled $5.7 billion. In 2006, about 18 percent of Canada's R&D was funded by the federal government.
		Gross domestic expenditure on R&D (GERD) as a percentage of gross domestic product (GDP)	In 2006, GERD accounted for about 1.96 percent of the GDP.
		University-industry collaboration in R&D	In 2006, the business enterprise funded about $899 million of the R&D performed by the higher-education sector, which is about 8.26 percent of the total R&D performed by universities.
		Investment in venture capital	$1.94 billion invested in 397 Canadian companies
Competitive Industry and Sustainable Communities
Implementing strategic frameworks for priority industrial sectors that have an important impact on the Canadian economy Working with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development	Policy Sector – Economic Development Operations Sector – Economic Development Industry Sector – Economic Development SITT Sector – Economic Development	Investment in machinery and equipment as a proportion of GDP	Statistics Canada data show that investment in machinery and equipment in Canada increased by about 8 percent in 2005 to $101.3 million (effective date for actual value 2005).
		Use of information and communications technologies (ICTs)	Canada is 10th among OECD countries in the level of investment in ICTs and third among G-7 countries behind the U.S. and the U.K. (effective date for actual value 2005).

5.1.2 Additional Information on User Fees (Table B)

Information on Additional Information on User Fees can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.3 Progress Against the Department's Regulatory Plan

Spectrum Management

Regulations	Expected Results	Performance Measurement Criteria	Results Achieved
Industry Canada's Fees for Services Related to Telecommunications and Radio Equipment Fees – Introduction of new fees and revocation of existing fees for services offered by Industry Canada's Certification and Engineering Bureau.	The new fees will address the needs of the telecommunications market, as the existing fees have not been changed in more than 10 years and have become inappropriate.	Approval of proposal for new fees and revocation of existing fees	A proposal was tabled by the Minister of Industry Canada before the House of Commons (September 18, 2006) and the Senate (September 26, 2006). The proposal was deemed approved as of October 27, 2006, as recommended by the Senate Standing Committee on Transport and Communications. Industry Canada is proceeding with the remainder of the regulatory process to implement proposed fee changes.
Amendments to the Patented Medicines (Notice of Compliance) Regulations under the Patent Act	The amendments make it easier for generic drug companies to predict when they may enter the market with a lower-cost version of an innovative, patented drug.	Approval of the regulatory change by Cabinet	Cabinet approval of the regulatory change
Regulatory amendment to Schedule I of the Patent Act	The amendment added a triple-dose combination HIV-AIDS drug to the list of patented pharmaceutical products that are eligible to be exported to developing countries under Canada's Access to Medicines Regime.	Approval of the regulatory change by Cabinet	Cabinet approval of the regulatory change

5.1.4 Details on Project Spending

Information on Details on Project Spending can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.5 Details on Transfer Payments Programs

Information on Transfer Payments Programs can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.6 Conditional Grants (Foundations)

Information on Conditional Grants (Foundations) can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.7 Horizontal Initiatives

Information on Horizontal Initiatives can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.8 Financial Statements of the Canadian Intellectual Property Office Revolving Fund

Enlarge image

Management Report

We have prepared the accompanying financial statements of the Canadian Intellectual Property Office Revolving Fund (the "Fund") as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared by the management of the Fund in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year.

Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgement with due consideration given to materiality. To fulfil its accounting and reporting responsibilities, the Fund maintains a set of accounts, which provides a centralized record of the Fund's financial transactions. Financial information contained in the ministerial statements and elsewhere in the Public Accounts of Canada is consistent with that in these financial statements, unless indicated otherwise.

The Fund's directorate of financial services develops and disseminates financial management and accounting policies and issues specific directives, which maintain standards of accounting and financial management. The Fund maintains systems of financial management and internal control which gives due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of Government funds and safeguard the assets under the Fund's administration. The Fund also seeks to assure the objectivity and integrity of data in its financial statements by the careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility and by communication programs aimed at ensuring that its regulations, policies, standards and managerial authorities are understood throughout the organization.

At the request of the Fund, these financial statements have been examined by external auditors, their role being to express an opinion as to whether the financial statements present fairly the financial position as at March 31, 2007 and the results of operations and cash flow for the year then ended in accordance with the accounting principles for revolving funds of the Government of Canada as described in Note 2 to the financial statements.

Approved by:

Graham Frost
Director Planning, Finance & Administration

André Rousseau CGA
Manager, Finance and Administration

June 19, 2007
Date

Canadian Intellectual Property Office Revolving Fund
Statement of Authority Provided (Used) (Unaudited) for the year ended March 31

(in thousands of dollars)		2007		2006
		Estimates	Actual	Estimates	Actual
Net results		$ 110	$ 14,986	$ 80	$ 13,294
Add: items not requiring the use of funds		8,719	5,517	11,003	7,843
Operating source (use) of funds		8,829	20,503	11,083	21,137
Less: items requiring use of funds
	Net capital acquisitions	6,000	4,515	8,500	7,571
	Net other assets and liabilities	(4,890)	(12,494)	(13,039)	(14,032)
	Other items	-	-	-	-
Authority provided (used)		$ 7,719	$ 28,482	$ 15,622	$ 27,598

 

Canadian Intellectual Property Office Revolving Fund
Reconciliation of Unused Authority (Unaudited) as at March 31

(in thousands of dollars)	2007	2006
Credit (debit) balance in the accumulated net charge against the Fund's authority	$ (110,844)	$ (131,695)
Transfer from Treasury Board Vote 5	(264)	-
Supplementary Estimates	(390)	-
	$ (111,498)	$ (131,695)
Add: PAYE charges against the appropriation account after March 31	3,889	4,306
Less: amounts credited to the appropriation account after March 31	1,565	1,393
Other items	3,020	6,018
Net authority provided, end of year	(112,194)	(134,800)
Authority limit	5,000	5,000
Unused authority carry forward	$ 117,194	$ 139,800

 

Canadian Intellectual Property Office Revolving Fund
Statement of Financial Position as at March 31

(in thousands of dollars)			2007	2006
Assets
Current
	Petty cash		2	2
	Accounts receivable
		Government of Canada	861	1,742
		Outside parties	1,565	1,395
	Unbilled revenues		7,259	6,071
	Prepaid expenses		234	222
			9,921	9,432
Capital assets (Note 3)			17,461	26,368
Unbilled revenues			998	2,172
			$ 28,380	$ 37,972
Liabilities
Current
	Deposit accounts		1,884	1,889
	Accounts payable
		Government of Canada	1,841	2,797
		Outside parties	6,997	6,692
	Deferred revenues		37,160	29,498
			47,882	40,876
Employee termination benefits and vacation pay			8,464	7,035
Deferred revenues			46,891	44,370
			55,355	51,405
Deferred capital assistance (Note 4)			1,595	7,980
Commitments (Note 6)
Contingencies (Note 10)
Net Assets / Liabilities (note 5)			(76,452)	(62,289)
			$ 28,380	$ 37,972

 

Canadian Intellectual Property Office Revolving Fund
Statements of Operations and Net Assets (Liabilities) for the year ended March 31

(in thousands of dollars)			2007	2006
Revenues			$ 138,258	$ 124,722
Expenses
	Salaries and employee benefits		81,486	75,058
	Professional services		20,751	15,149
	Amortization of capital assets		13,369	14,777
	Accommodation		7,625	6,952
	Materials and supplies		1,921	1,780
	Information		308	260
	Communications		879	824
	Travel		657	603
	Freight and postage		383	309
	Repairs and maintenance		1,140	1,234
	Training		910	662
	Rentals		175	205
	Loss on disposal of capital assets		53	-
			129,657	117,813
Net results before amortization of deferred capital assistance			8,601	6,909
Amortization of deferred capital assistance			6,385	6,385
Net results			14,986	13,294
Net assets (liabilities), beginning of year			(62,289)	(45,368)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority account, during the year			20,851	(30,215)
Transfer of part of the accumulated surplus to the accumulated net charge against the Fund's authority (Note 1)			(50,000)	-
Net assets (liabilities), end of year			$ (76,452)	$ (62,289)

 

Canadian Intellectual Property Office Revolving Fund
Statement of Cash Flow for the year ended March 31

(in thousands of dollars)			2007	2006
Operating activities
	Net results		$ 14,986	$ 13,294
	Add: Amortization of capital assets		13,369	14,777
	Add: Loss on disposal of capital assets		53	-
	Less: Amortization of deferred capital assistance		6,385	6,385
			22,023	21,686
	Changes in working capital (Note 7)		6,517	9,819
	Changes in other assets and liabilities
		Unbilled revenues	1,174	(992)
		Employee termination benefits and vacation pay	1,429	837
		Deferred revenues	2,521	6,436
			5,124	6,281
Net financial resources provided by operating activities			33,664	37,786
Investing activities
	Capital assets acquired		(4,515)	(7,571)
Financing activities
	Transfer of part of the accumulated surplus to the accumulated net charge against the Fund's authority (Note 1)		(50,000)	-
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year			(20,851)	30,215
Accumulated net charge against the Fund's authority account, beginning of year			131,695	101,480
Accumulated net charge against the Fund's authority account, end of year (Note 5)			$ 110,844	$ 131,695

 

Notes to Financial Statements

1. Purpose and authority
   
   The Canadian Intellectual Property Office Revolving Fund (the "Fund") grants or registers exclusive ownership of intellectual property in Canada. In exchange, the Fund acquires intellectual property information and state-of-the-art technology which it disseminates to Canadian firms, industries and individuals to improve economic performance, competitiveness and to stimulate further invention and innovation.
   
   The Fund was established on April 1, 1994. The authority to make expenditures out of the Consolidated Revenue Fund, was granted on February 22, 1994 and has an authorized limit of $15 million. During the fiscal year ended March 31 2002, the Fund's authorized limit was reduced from $15 million to $5 million. The Fund has continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, capital acquisitions and temporary financing of accumulated operating deficits. The Fund may retain surpluses to continue to automate operations.
   
   Pursuant to Treasury Board decision # 833200 (Budget 2006 Spending Restraint), dated November 30, 2006 and effective in 2006-07, the Fund tranferred $50 million of its accumulated surplus to the accumulated net charge against the Fund's authority ("ANCAFA").
   
   
2. Significant accounting policies
   
   Basis of accounting
   
   The financial statements have been prepared in accordance with the reporting requirements for revolving funds described by the Receiver General for Canada. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles because: services received without charge from other government departments are not reported as expenses; the expenses and liability for termination benefits excludes the portion not funded by the Fund; and contingent liabilities are disclosed rather than recorded. The significant accounting policies are as follows:
   
   Revenue recognition
   
   Revenue derived from processing patent, trademark and industrial design applications is recognized using the percentage of completion method as work progresses. Fees received in advance of work being completed are recorded as deferred revenues. When work is completed prior to the receipt of the fee, the amount is recorded as unbilled revenue. Maintenance fees and other revenue are recognized upon receipt. Fees are prescribed by various Orders in Council.
   
   Capital assets and amortization
   
   Capital assets are recorded at cost. Capital assets are amortized on a straight-line basis over their estimated useful lives, beginning in the month after acquisition, as follows:
   
   

   Software	3 years
   Hardware	3-5 years
   Furniture	10 years
   Equipment	10 years
   Leasehold Improvements	5 years
   Systems	Estimated useful life, beginning in the year of deployment

   Deferred capital assistance
   
   The Fund received $63,848,000 from the Crown for the development of the Techsource automation project, which was implemented in 1997-1998. The deferred capital assistance is amortized on a straight-line basis over the estimated useful life of the Techsource system.
   
   Employee termination benefits
   
   Employees of the Fund are entitled to specified termination benefits, calculated based on salary levels in effect at the time of termination as provided for under collective agreements and conditions of employment. Employee termination benefits earned prior to an employee joining the Revolving Fund are a liability of the Treasury Board and accordingly have not been recorded in the accounts. As at March 31, 2007, the Treasury Board liability for the Fund's employees is $4.8 million (2006 – $4.8 million). The liability for benefits earned after an employee joins the Revolving Fund is recorded in the accounts as the benefits accrue to employees.
   
   The Treasury Board will only fund this portion of the past services up to and including the fifteenth year of the revolving fund's operation. In 2009-2010, the long-term liability account for termination benefits will be adjusted accordingly with an offset against the revolving fund's accumulated surplus.
   
   Pension Plan
   
   Employees of the Fund are covered by the Public Service Superannuation Plan administered by the Government of Canada. Under present legislation, contributions made by the Fund to the Plan are limited to an amount equal to the employee's contributions on account of current service. These contributions represent the total pension obligations of the Fund and are charged to operations on a current basis. The Fund is not required under present legislation to make contributions with respect to actuarial deficiencies of the Public Service Superannuation Account and/or with respect to charges to the Consolidated Revenue Fund for the indexation of payments under the Supplementary Retirement Benefits Act.
   
   Use of Estimates
   
   The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Capital assets, revenues and human resource related accrued liabilities are the most significant items for which estimates are used. Actual results could differ from these estimates. These estimates are reviewed annually and as adjustments become necessary, they are recorded in the financial statements in the period in which they become known.
   
   

3. Capital assets and accumulated amortization
   

(in thousands of dollars)

		Cost March 31, 2006	Additions	Disposals	Cost March 31, 2007	Accumulated amortization	Net carrying value
Leasehold improvements		20,604	1,577		22,188	16,790	5,391
Software		7,906	1,631		9,537	7,035	2,502
Hardware		2,602	90		2,692	2,450	242
Equipment		-	-		-		-
Furniture		-	-		-		-
Systems
	Intrepid	3,735	249		3,984	3,793	191
	TechSource	85,535	2,705		88,240	83,550	4,690
	Other	11,164			11,164	9,973	1,191
Systems under development		5,044	(1,737)	53	3,254		3,254
Total		136,590	4,515	53	141,052	123,591	17,461

4. Deferred capital assistance

(in thousands of dollars)	2007	2006
Deferred capital assistance contribution	$ 63,848	$ 63,848
Less: accumulated amortization	62,253	55,868
Net book value	$ 1,595	$ 7,980

5. Net assets / liabilities

Accumulated net charge against the Fund's authority ("ANCAFA")

The accumulated net charge against the Fund's authority is the cash position of the Revolving Fund, held by the Government on behalf of the Revolving Fund.

Accumulated surplus

The accumulated surplus is an accumulation of each year's surpluses including the absorption of the opening deficit of $9,448,000 upon establishment of the Revolving Fund.

(in thousands of dollars)	2007	2006
Accumulated surplus, beginning of year	$ 69,406	$ 56,112
Net results	$ 14,986	$ 13,294
Transfer of part of the accumulated surplus to the ANCAFA (Note 1)	$ (50,000)	$ -
Accumulated surplus, end of year	$ 34,392	$ 69,406
ANCAFA, end of year	$ (110,844)	$ (131,695)
Net assets / liabilities	$ (76,452)	$ (62,289)

6. Commitments
(in thousands of dollars)

The Fund has commitments for:

Maintenance services for the TechSource System:

Operating leases for its office premises:



Applications development and maintenance support within the framework of the Continued Systems Improvements Program (CSIP):



Access to online databases:

7. Changes in working capital

Components of the changes in current assets and liabilities include:

(in thousands of dollars)	2007	2006
Accounts receivable (net of bad debt)	$ 711	$ (90)
Unbilled revenues (short term)	(1,188)	1,437
Prepaid expenses	(12)	(138)
Deposit accounts	(5)	378
Accounts payable	(651)	2,088
Deferred revenues (short term)	7,662	6,144
	$ 6,517	$ 9,819

8. Related party transactions

Through common ownership, the Fund is related to all Government of Canada created departments, agencies and Crown corporations. Payments for accommodation, translation, legal services, compensation and benefits services, mail services, security services and mainframe and computing services are made to related parties in the normal course of business.

9. Insurance

The Fund does not carry insurance on its property. This is in accordance with the Government of Canada policy of self-insurance.

10. Contingencies

Sick Leave

Employees are permitted to accumulate unused sick leave. However, such leave entitlements do not vest and can be used only in the event of illness. The amount of accumulated sick leave entitlements which will become payable in future years cannot reasonably be determined and accordingly have not been recorded in the accompanying financial statements. Payments of sick leave benefits are included in current operations as incurred.

11. Income taxes

The Fund is not subject to income taxes.

5.1.9 Financial Statements of the Department of Industry

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in this report rests with departmental management. These statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

Management is supported by the Departmental Audit and Evaluation Committee (DAEC). This Committee approves the departmental audit and evaluation plan and oversees the internal audit and evaluation activities in the Department. It also reviews the results of audits and evaluations as well as management responses and action plans developed to address audit or evaluation recommendations.

The financial statements of the department have not been audited.

Deputy Head Ottawa, Canada

Chief Financial Officer Date

 

Industry Canada
Statement of Operations (Unaudited)
For the period ended March 31

(in thousands of dollars)			2007				2006
			Marketplace	Science, technology & innovation	Economic development	Total	Total
Expenses
	Transfer payments
		Industry	-	219,303	12,001	231,304	268,359
		Other	8,139	270,000	218,650	496,789	392,494
		Total Transfer Payments	8,139	489,303	230,651	728,093	660,853
	Operating expenses
		Salaries and employee benefits	267,278	108,838	139,079	515,195	517,821
		Professional and special services	43,298	19,684	28,249	91,231	104,313
		Accommodation	13,328	20,792	19,192	53,312	52,027
		Travel	11,740	2,546	5,794	20,080	23,179
		Amortization	10,708	5,325	2,211	18,244	17,126
		Communication	7,887	4,333	5,996	18,216	18,189
		Furniture and equipment	8,544	4,856	3,898	17,298	12,783
		Equipment repair and maintenance	5,817	4,317	2,644	12,778	20,729
		Rentals	9,268	448	1,258	10,974	10,185
		Utilities, materials and supplies	3,548	3,750	2,496	9,794	10,923
		Postage	1,270	1,241	376	2,887	1,986
		Loss on disposal of capital assets	55	12	12	79	161
		Other operating expenses	10,989	(5,044)	(7,794)	(1,849)	22,741
		Total operating expense	393,730	171,098	203,411	768,239	812,163
	Transferred operations
		Office of the Registrar of Lobbyists	-	-	-	-	958
Total expenses			401,869	660,401	434,062	1,496,332	1,473,974
Revenues
	Sales of services		591,037	10,041	63,546	664,624	640,004
	Dividends		5,212	8,130	7,505	20,847	16,786
	Revenue from fines		6,857	-	-	6,857	8,064
	Amortization of discounts		254	395	3,823	4,472	4,473
	Other revenue		623	702	1,923	3,248	4,234
	Gains on disposal of assets		170	16	27	213	203
			604,153	19,284	76,824	700,261	673,764
	Transferred operations
		Office of the Registrar of Lobbyists	-	-	-	-	2
Total revenues			604,153	19,284	76,824	700,261	673,766
Net cost of operations			(202,284)	641,117	357,238	796,071	800,028

The accompanying notes form an integral part of these financial statements.

Industry Canada
Statement of Financial Position (Unaudited)
At March 31

(in thousands of dollars)		2007	2006
Assets
Financial assets
	Accounts receivables and advances (Note 4)	215,227	193,915
	Loans (Note 5)	280,303	266,053
	Investments (Note 6)	1,066,400	1,066,400
	Total financial assets	1,561,930	1,526,368
Non-financial assets
	Prepayments	234	222
	Tangible capital assets (Note 7)	107,674	97,464
	Total non-financial assets	107,908	97,686
Total		1,669,838	1,624,054
Liabilities
	Accounts payable and accrued liabilities (Note 8)	627,073	495,229
	Vacation and compensatory leave	24,149	25,872
	Deferred revenue (Note 9)	1,125,237	1,285,782
	Allowance for loan guarantee (Note 12)	409,828	432,444
	Allowance for employee severance benefits (Note 11)	83,557	79,341
	Other liabilities (Note 10)	25,163	19,537
		2,295,007	2,338,205
Equity of Canada (Note 13)		(625,169)	(714,151)
Total		1,669,838	1,624,054

Contingent liabilities (Note 12)
Contractual obligations (Note 14)

The accompanying notes form an integral part of these financial statements.

Industry Canada
Statement of Equity of Canada (Unaudited)
At March 31

(in thousands of dollars)	2007	2006
Equity of Canada, beginning of year	(714,151)	(1,091,473)
Net cost of operations	(796,071)	(800,208)
Current year appropriations used (Note 3)	1,189,667	1,617,037
Revenue not available for spending	(502,866)	(491,458)
Change in net position in the Consolidated Revenue Fund (Note 3)	116,783	(27,806)
Services provided without charge by other government departments (Note 15)	84,829	79,757
Equity adjustment (Note 13)	(3,360)	-
Equity of Canada, end of year	(625,169)	(714,151)

The accompanying notes form an integral part of these financial statements.

Industry Canada
Statement of Cash Flow (Unaudited)
For the year ended March 31

(in thousands of dollars)		2007	2006
Operating activities
Net cost of operations		796,071	800,208
Non-cash items:
	Amortization of tangible capital assets	(18,244)	(18,189)
	Gain on disposal and write-down of tangible capital assets	59	43
	Loss on writeoffs of tangible capital assets	-	(2,795)
	Adjustment to tangible capital assets	(421)	189
	Services provided without charge (Note 15)	(84,829)	(79,757)
Variations in Statement of Financial Position:
	Decrease in liabilities	43,198	265,902
	Increase in financial assets	35,562	108,214
	Increase in prepaid expenses	12	138
	Change in equity (Note 13)	3,346	-
Cash used by operating activities		774,754	1,073,953
Capital investment activities
	Acquisitions of tangible capital assets	29,090	24,051
	Proceeds from disposal of tangible capital assets	(260)	(231)
Cash used by capital investment activities		28,830	23,820
Net cash provided by Government of Canada		803,584	1,097,773

The accompanying notes form an integral part of these financial statements.

Industry Canada
Notes to the Financial Statements (Unaudited)

1. Authority and Objectives
   
   The authorities for the programs for which Industry Canada is responsible, are derived from the Department of Industry Act. Many other acts are under the responsibility of the Minister of Industry, and Treasury Board also defines other specific Industry authorities.
   
   Industry Canada aims to help Canadians contribute to the knowledge economy and improve productivity and innovation performance through its three strategic outcomes, which are mutually reinforcing. Sound marketplace frameworks help establish a business environment that supports innovation, investment and entrepreneurial activity. Fostering innovation in science and technology helps ensure that discoveries and breakthroughs happen here in Canada, and that the social and economic benefits of these innovations contribute to improving Canadians' standard of living and quality of life. Encouraging investment in technology will help Canadian businesses to compete in the global marketplace and increase opportunities for trade. Successful businesses combined with a sound environment form the sustainable communities that attract investment. Taken together, the Department's strategic outcomes support growth in employment, income and productivity, and promote sustainable development in Canada.
   
   Industry Canada's activities are delivered at its headquarters in Ottawa as well as in the regions. There are six regional offices with service points located across Canada.
   
   Industry Canada has a number of transfer payment programs through which it provides grants and contributions to recipients in targeted groups and sectors. Each transfer payment program has specific objectives and expected results that support the achievement of Industry Canada's strategic objectives.
   
   
2. Summary of Significant Accounting Policies
   
   The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.
   
   Significant accounting policies are as follows:
   1. Parliamentary appropriations
      Industry Canada is financed through Parliamentary appropriations. Appropriations provided to the department do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
      
      
   2. Consolidation
      The financial statements include the accounts of Industry Canada including the revolving fund Canadian Intellectual Property Office (CIPO) and special operating agencies Measurement Canada, Superintendent of Bankruptcy and Technology Partnerships Canada. The accounts of these sub-entities have been consolidated with those of the department and all inter-organizational balances and transactions have been eliminated. The department's investment in the Business Development Bank of Canada (BDBC) is recorded at cost. The net results of the BDBC are not consolidated in these financial statements as the department is not deemed to control the Crown corporation.
      
      
   3. Net cash provided by government
      Industry Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by Industry Canada is deposited to the CRF and all cash disbursements made by the department are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
      
      
   4. Change in net position in the Consolidated Revenue Fund
      This is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
      
      
   5. Revenue
      • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
      • Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
      • Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
      • Revenues that have been received but not yet earned are recorded as deferred revenues.
        
        
   6. Expense
      The following expenses are recorded on the accrual basis:
      • Grants are recognized in the year in which the conditions for payment are met. In the case of grants which do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements;
      • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement;
      • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
      • Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and worker's compensation costs and legal services are recorded as operating expenses at their estimated cost.
        
        
   7. Employee future benefits
      1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer plan administered by the Government of Canada. The department's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the department to make contributions for any actuarial deficiencies of the Plan.
      2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
         
         
   8. Receivables
      Receivables are stated as amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
      
      
   9. Allowances for loan guarantees
      An allowance for loan guarantees is recorded for potential losses on loan guarantees when it is likely that a payment will be made in the future to honour a guarantee and when the amount of the loss can be reasonably estimated.
      
      The allowance for losses on outstanding loan guarantees is based upon forecasting models developed by program areas.
      
      
   10. Repayable contributions
       Repayable contributions are contributions the recipient is expected to repay. Depending on their nature, they are classified as either unconditionally repayable or conditionally repayable and are accounted for differently.
       1. Unconditionally repayable contributions are contributions that must be repaid without qualification. Normally, these contributions are provided with a low or no interest clause. They are recorded on the Statement of Financial Position as loans at their estimated present value, if they contain significant concessionary terms (defined to be when the grant portion is greater than 25% of the contribution). Otherwise, they are recorded at the face value of the loan. A portion of the unamortized discount is brought into income each year to reflect the change in the present value of the contributions outstanding. Appropriate allowances for uncollectible amounts are also established based on an individual appraisal of accounts.
       2. Conditionally repayable contributions are contributions that, all or a part of become repayable, if conditions specified in the contribution agreement come into effect. Accordingly, they are not recorded on the Statement of Financial Position until such time as the conditions specified in the agreement are satisfied, at which time they are then recorded as a receivable and a corresponding reduction in transfer payment expense.
          
          
   11. Prepaid expenses
       Includes prepaid expenses, deferred charges, and payments where, pursuant to a contract or contribution agreement, a payment is made before the completion of the work, delivery of the goods or rendering of the service.
       
       
   12. Contingent liabilities
       Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
       
       
   13. Environmental liabilities
       Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.
       
       
   14. Foreign currency transactions
       Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on September 30^th.
       
       
   15. Tangible capital assets
       All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value; assets located on Indian Reserves and museum collections.
       
       Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:
       
       

       Asset class	Amortization period
       Buildings	15 to 30 years
       Works and infrastructure	30 years
       Machinery and equipment	3 to 10 years
       Vehicles	5 to 10 years
       Assets under construction	Once in service, in accordance with asset type
       Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

       
       
       

   16. Measurement uncertainty
       The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
       
       

3. Parliamentary appropriations
   
   Industry Canada receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Department has different net results of operations for the year on a government-funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

   (a) Reconciliation of net cost of operations to current year appropriations used:

   (in thousands of dollars)		2007	2006
   Net cost of operations		796,071	800,208
   Adjustments for items affecting net cost of operations but not affecting appropriations:
   Add (Less):
   	Revenue not available for spending	502,866	491,458
   	Repayment of conditionally repayable contributions	127,356	110,382
   	Services provided without charge	(84,829)	(79,757)
   	Allowance for loan guarantees	58,709	(42,157)
   	Bad debts/writeoffs/writedowns	3,261	(24,063)
   	Amortization of tangible capital assets	(18,244)	(18,189)
   	Employee severance benefits	(4,216)	(9,829)
   	Payables at year-end	8,455	9,512
   	Refund of previous year expenses	9,343	9,419
   	Justice Canada fees	(5,425)	(5,313)
   	Allowance for accrued liabilities	288	602
   	Vacation pay and compensatory leave	1,387	(368)
   	(Loss) on disposal and writedown of tangible capital assets	(154)	(161)
   	Year-end accrual of transfer payments	(246,000)	-
   	Other	561	(1,614)
   		1,149,429	1,240,130
   Adjustments for items not affecting net cost of operations but affecting appropriations:
   Add (Less):
   	Payment of transfer payments to foundations	-	225,000
   	Loans, Investments, and Advances	21,776	140,941
   	Deferred revenue	(10,964)	(13,347)
   	Acquisitions of tangible capital assets	29,090	24,051
   	Allowance for Vacation Pay	336	262
   		40,238	376,907
   Current Year Appropriation Used		1,189,667	1,617,037

    
   
   

   (b) Appropriations provided and used

   (in thousands of dollars)		2007	2006
   Vote 1 – Operating expenditures		436,697	484,902
   Vote 5 – Capital expenditures		32,265	19,865
   Vote 10 – Grants and contributions		682,194	830,476
   Statutory amounts		235,115	489,430
   		1,386,271	1,824,673
   Less:
   Appropriations available for future years		(117,434)	(140,031)
   Lapsed appropriations: Operating		(79,170)	(67,605)
   Current year appropriations used		1,189,667	1,617,037

    
   
   

   (c) Reconciliation of net cash provided by Government to current year appropriations used

   (in thousands of dollars)			2007	2006
   Net cash provided by Government of Canada			803,584	1,097,773
   Revenue not available for spending			502,866	491,458
   			1,306,450	1,589,231
   Change in net position in the Consolidated Revenue Fund
   	Variation in financial assets		(35,562)	(108,214)
   	Variation in liabilities		(43,198)	(265,902)
   	Variation in prepaid expenses		(12)	(138)
   	Other:
   		Year-end accrual of transfer payments	(246,000)	-
   		Repayment of conditionally repayable contributions	127,356	110,382
   		Allowance for loan guarantees	58,709	(42,157)
   		Loans, investments and advances	21,776	140,941
   		Payment of transfer payments to foundations	-	225,000
   		Miscellaneous	148	(32,106)
   Change in net position in the Consolidated Revenue Fund			(116,783)	27,806
   Current year appropriation used			1,189,667	1,617,037

4. Accounts receivables and advances

   (in thousands of dollars)		2007	2006
   External
   	Accounts receivable – other revenue	66,788	115,471
   	Allowance for doubtful accounts	(31,442)	(108,422)
   	Accrued receivables	21,720	20,963
   	Employee advances	115	121
   	Other	735	102
   Total external		57,916	28,235
   Receivables from other Federal Government departments and agencies		157,311	165,680
   Total accounts receivable and advances		215,227	193,915

5. Loans

   (in thousands of dollars)		2007	2006
   Atlantic Development Board for Water Projects		-	39
   Atlantic Provinces Power Development Act		1,783	2,862
   Enterprise Development Loans		110,000	110,000
   Unamortized discount loans		(34,583)	(38,041)
   		75,417	71,959
   Unconditionally repayable contributions		209,568	200,067
   	Less: Unamortized discount	(6,275)	(7,289)
   	Less: Allowance for doubtful loans and advances	(190)	(1,585)
   Net unconditionally repayable contributions		203,103	191,193
   Loans and advances on expired loan guarantees		84,454	117,372
   	Less: Allowance for doubtful loans	(84,454)	(117,372)
   Net loans on expired loan guarantees		-	-
   Total loans		280,303	266,053

   1. Atlantic Development Board for Water Projects
      Loans have been made to finance certain water projects that were carried over from the Atlantic Development Board. Final instalments were made in April 2006.
      
      
   2. Atlantic Provinces Power Development Act
      Loans have been made to Atlantic Provinces, to assist in the generation of electrical energy by steam-driven generators in the provinces, and in the control and transmission of electric energy. The loans bear interest at rates from 4.5% to 8.5% per annum, and are repayable in annual instalments over the next 7 years, with final instalments due March 31, 2014.
      
      
   3. Enterprise development loans
      These loans are made to industries engaged in manufacturing, processing or service industries in Canada in order to promote the establishment, improvement, growth, efficiency or international competitiveness of such industries, or to assist them in their financial restructuring. There is one interest-free loan outstanding which is repayable at maturity on April 1, 2017.
      
      
   4. Unconditionally repayable contributions
      The unamortized discount on unconditionally repayable contributions is calculated by applying the 25% rule on an individual loan basis.
      
      
   5. Loans on expired loan guarantees
      The Department guarantees loans to small business enterprises under the Small Business Loans Act, the Canada Small Business Financing Act, the Capital Leasing Pilot Project and other loan guarantee payments net of recoveries.
      
      
6. Investments

   (in thousands of dollars)	2007	2006
   Business Development Bank of Canada	1,066,400	1,066,400
   Total investments	1,066,400	1,066,400

   1. Business Development Bank of Canada
      The Corporation is an agent of Her Majesty, reports through the Minister of Industry, and is listed in Part I of Schedule III of the Financial Administration Act. Included in the account are:
      • Common Shares – The Government's investment in the common shares of the Corporation represents a book value of $808.4 million.
      • Preferred Shares – The outstanding book value of preferred shares purchased pursuant to Section 23 of the Business Development Bank of Canada Act as at March 31, 2004 is $230 million.
      • Contributed Capital – Contributed capital in the amount of $28 million was issued in 1999-2000 in counterpart of the transfer of the Cultural Industries Development Fund to the Corporation.
        
        
      For the period ending March 31, 2007, the department received $20,847,118 in dividend revenue from the BDBC ($16,786,492 in 2006).
      
      
7. Tangible capital assets

   (in thousands of dollars)

   Cost

   Tangible capital asset class	Opening balance April 1	Acquisitions during the year	Disposals/ writeoffs, during the year	Closing balance March 31
   Land	1,450	-	-	1,450
   Buildings	35,112	440	-	35,552
   Works and infrastructure	6,165	13	-	6,178
   Machinery and equipment	127,783	14,616	1,711	140,688
   Vehicles	12,427	1,074	1,134	12,367
   Assets under construction	20,278	10,322	125	30,475
   Leasehold improvements	17,985	2,625	-	20,610
   Total	221,200	29,090	2,970	247,320

   
   
    

   Accumulated amortization

   Tangible capital asset class	Opening balance April 1	Amortization	Disposals/ writeoffs, during the year	Closing balance March 31	Current year net book value	Previous year net book value
   Land	-	-	-	-	1,450	1,450
   Buildings	17,508	1,260	-	18,768	16,784	17,604
   Works and infrastructure	3,647	209	-	3,856	2,322	2,518
   Machinery and equipment	88,604	12,806	1,260	100,150	40,538	39,179
   Vehicles	8,378	1,341	1,074	8,645	3,722	4,049
   Assets under construction	-	-	-	-	30,475	20,278
   Leasehold improvements	5,599	2,628	-	8,227	12,383	12,386
   Total	123,736	18,244	2,334	139,646	107,674	97,464

   Amortization expense for the year ended March 31, 2007 is $18,244,139 (2006 – $18,189,357).

8. Accounts payable and accrued liabilities

   (in thousands of dollars)		2007	2006
   External
   	Accounts payable	362,025	471,244
   	Accrued salaries and wages	10,158	10,699
   	Accrued liabilities	332	620
   	Transfer payments	246,000	-
   	Other external payables	91	463
   	Total external	618,606	483,026
   Other government departments		8,467	12,203
   Total accounts payable and accrued liabilities		627,073	495,229

9. Deferred revenue
   

   The majority of the department's deferred revenues result from the auction of radio licence frequencies. These revenues are recognized over a ten-year period. Another main source of deferred revenues comes from examination requests of intellectual property. These fees are charged in advance and recognized as revenue once the exam is completed.

   Prime Minister's Awards were established to record amounts deposited by external parties to be used in support of the Prime Minister's Awards for Teaching Excellence.

   (in thousands of dollars)	2007	2006
   Opening balance	1,285,782	1,429,041
   Licence fees received	203,159	201,715
   Licence fees earned	(373,750)	(358,742)
   	(170,591)	(157,027)
   Fees for trademarks, patents and copyrights received	31,722	30,913
   Fees for trademarks, patents and copyrights earned	(21,540)	(18,333)
   	10,182	12,580
   Other services of regulatory nature received	763	1,400
   Other services of regulatory nature earned	(767)	(453)
   	(4)	947
   Prime Minister awards received	-	50
   Prime Minister awards disbursed	(125)	(190)
   	(125)	(140)
   Customer deposits received	55,593	51,676
   Customer deposits disbursed	(55,600)	(51,295)
   	(7)	381
   Deferred revenue, closing balance	1,125,237	1,285,782

10. Other Liabilities
    

    Other liabilities represent funds received from third parties to be disbursed for a specified purpose. Activity during the year in these accounts is as follows:

    (in thousands of dollars)		Opening balance	Receipts	Payments	Closing balance
    Cost sharing projects		536	682	308	910
    Securities in trust, Bankruptcy and Insolvency Act		83	-	-	83
    	Contra – Securities in trust, Bankruptcy and Insolvency Act	(31)	-	-	(31)
    Unclaimed dividends and undistributed assets		13,359	2,995	1,245	15,109
    Petro Canada enterprises unclaimed shares		963	-	2	961
    Canada Business Corporations Act		3,999	3,403	96	7,306
    Winding-up Act		530	197	-	727
    Canada/provinces business service centre		98	400	400	98
    Total other liabilities		19,537	7,677	2,051	25,163

    Cost sharing projects – Industry Canada partners with other governments and external organizations to deliver programs and services that contribute to an innovative economy. The account was established to record amounts deposited by these partners.

    Securities in trust and income from securities in trust, Bankruptcy and Insolvency Act – was established to record dividends paid on shares held by a bankrupt stockbroker on behalf of clients. As the shares were not registered in clients' names, dividends are paid to the last registered owner, in this case, the stockbroker. These dividends are forwarded to the Superintendent of Bankruptcy until such time as rightful owners are identified.

    Unclaimed dividends and undistributed assets, Bankruptcy and Insolvency Act – This account represents amounts credited to the Receiver General in accordance with the provisions of the Act, pending distribution to creditors.

    Petro-Canada Enterprises Inc. – unclaimed shares – was established to record the liability to shareholders who have not presented their shares for payment in accordance with Section 227 of the Canada Business Corporations Act.

    Unclaimed dividends and undistributed assets, Canada Business Corporations Act – was established for the purpose of recording liabilities to creditors and shareholders who have not been located. The account is charged when funds are paid to them.

    Winding-up Act – records deposits credited to the Receiver General as a result of the final winding-up of the operations of a company, in accordance with sections 138 and 139 of the Winding-up Act, pending distribution to the persons entitled thereto.

    Canada/Provinces Business Service Centre – was established to record monies received from other provinces under cost-sharing agreements for the Canada-Ontario Business Service Centre.

11. Employee benefits
    
    
    1. Pension benefits
       Industry Canada's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.
       
       Both the employees and the department contribute to the cost of the Plan. The 2006-07 expense amounts to $51,811,249 ($56,994,775 in 2005-06), which represents approximately 2.2 times (2.6 in 2005-06) the contributions by employees.
       
       The department's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
       
       
    2. Severance benefits
       The department provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
       

    (in thousands of dollars)	2007	2006
    Accrued benefit obligation beginning of year	79,341	69,512
    Expense for the year	13,297	17,137
    Benefits paid during the year	(9,081)	(7,308)
    Accrued benefit obligation end of year	83,557	79,341

12. Contingent liabilities
    
    1. Contaminated sites
       Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the department is obligated or likely to be obligated to incur such costs. The department has identified 2 sites where such action is possible and for which a liability of $132,281 has been recorded. The department's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the department in the year in which they become known.
       
       
    2. Claims and litigation
       Claims have been made against the department in the normal course of operations. Legal proceedings for claims totalling approximately $200,000 were still pending at March 31, 2007. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.
       
       
    3. Loan guarantees
       
       The department has guaranteed the following debts:
       

    (in thousands of dollars)	Authorized Limit	Loan Guarantee Outstanding Balance
    Enterprise Development Program	1,200,000	212
    Small Business Loans Act Loan Guarantee Program	1,798,828	74,874
    Canada Small Business Financing Act Loan Guarantee Program	1,194,756	770,278
    Capital Leasing Pilot Project	15,083	11,921
    Air Carrier Loan Guarantee	931,350	176,962
    Regional Aircraft Credit Facility	1,500,000	211,135

    An allowance of $409,828,101 has been recorded for estimated losses on outstanding loan guarantees ($432,443,624 in 2006). The expenses related to loan guarantees are reported under other transfer payments in the Statement of Operations.

    Enterprise Development Program – Loans are made to Canadian manufacturers and members of the service industry for the purpose of promoting the establishment, growth, efficiency and international competitiveness of Canadian industry. These loans also foster the expansion of Canadian industry and of Canadian trade to a person engaged or about to engage in manufacturing, processing or other commercial activity.

    Small Business Loans Act (SBLA) Loan Guarantee Program and Canada Small Business Financing Act (CSBFA) Loan Guarantee Program – Loans are made directly by approved lenders to small business enterprises, providing for sharing of each individual loan loss, if any, on the basis of 85% government, 15% lender, to an aggregate, per lending institution not exceeding the Minister's contingent liability, as stated in Section 5 of the SBLA and Section 6(2) of the CSBFA.

    The authorized limit represents the Crown's maximum liability incurred on the aggregate amount of loans made by the lender starting in April 1985 (SBLA) and April 1999 (CSBFA).

    The outstanding guarantee for loans made starting in April 1985 (SBLA) and April 1999 (CSBFA) is the lesser of the Crown's net liability (authorized limit less claims paid by the Crown) or the outstanding loan amounts of the lenders.

    Capital Leasing Pilot Project (CLPP) – Capital leases are entered directly by approved lenders to small business enterprises, providing for sharing of each individual lease loss, if any, on the basis of 85% government, 15% lessor to an aggregate, per leasing institution, not exceeding the Minister's contingent liability based upon the aggregate amount of leases registered per leasing institution, as stated in section 7 of the CLPP.

    The authorized limit represents the Crown's maximum liability incurred on the aggregate amount of the capital leases having been entered or transferred since the period starting in April 2002.

    The outstanding guarantee for capital leases entered into in April 2002, is the lesser of the Crown's net liability or the outstanding capital lease amount of the lessors.

    Air Carrier Loan Guarantees – To provide for insurance of the financial obligations incurred by the purchaser resulting in an arrangement with a vendor, lessor or lender for the purchase of a deHavilland DHC-7 and DHC-8 aircraft.

    Regional Aircraft Credit Facility – The department has extended loan guarantees on several Air Canada regional jets. Provisioning from the Canada Account Loss Provisioning Pool has been set aside by Finance Canada, manager of the funds. The loan guarantees began in the summer of 2005 and have a life of 15 years.

13. Equity Adjustment

    (in thousands of dollars)	2007	2006
    Aboriginal Business Canada / First Nations SchoolNet	3,346	-
    Office of the Registrar of Lobbyists	14	-
    Total equity adjustment	3,360	-

    Aboriginal Business Canada / First Nations SchoolNet – Pursuant to the Order in Council P.C. 2006-1351, an equity adjustment in the amount of $3,345,741 was processed to transfer out Aboriginal Business Canada and First Nations SchoolNet. The Order in Council transferred the control and supervision of Aboriginal Business Canada and First Nations SchoolNet from the Department of Industry to the Department of Indian Affairs and Northern Development (DIAND) effective December 1, 2006. The result was a mid-year transfer occurring the same date as the Order in Council, which included accounts receivable, capital assets and loan balances.

    Office of the Registrar of Lobbyists – An equity adjustment for $14,335 related to Order in Council P.C. 2006-49, which transferred the control and supervision of the Office of the Registrar of Lobbyists from the Minister of Industry to the President of the Treasury Board effective February 6, 2006. As of April 1, 2006, Office of the Registrar of Lobbyists was reported separately. The adjustment pertained to the transfer of a capital asset that is reported on the Office of the Registrar of Lobbyists's financial statements.

14. Contractual obligations
    
    The nature of the department's activity results in some large multi-year contracts and obligations whereby the department will be committed to make future payments when the services/goods are rendered. Major commitments that can be reasonably estimated are as follows:
    

    (in thousands of dollars)	2008	2009	2010	2011	Thereafter	Total
    Transfer payments	478,016	360,212	229,920	114,769	97,400	1,280,317
    Other goods and services	43,193	12,272	1,143	335	3,639	60,582
    Other	7,596	100	-	-	-	7,696
    Total	528,805	372,584	231,063	115,104	101,039	1,348,595

15. Related party transactions
    
    Industry Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. Industry Canada enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the department received services, which were obtained without charge from other Government departments.
    
    Services provided without charge:
    During the year the department received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the department's Statement of Operations as follows:
    

    (in thousands of dollars)	2007	2006
    Accommodation provided by Public Works and Government Services Canada (PWGSC)	53,312	52,027
    Contributions covering employees' share of insurance premiums and expenditures paid by Treasury Board Secretariat	25,594	22,799
    Workman's compensation coverage provided by Human Resources Skills Development Canada	627	449
    Salary and associated expenditures of legal services provided by Justice Canada	5,296	4,482
    Total services provided without charge	84,829	79,757

    The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included as an expense in the department's Statement of Operations.

16. Comparative information
    
    Comparative figures have been reclassified to conform to the current year's presentation.

5.1.10 Procurement and Contracting

Information on Procurement and Contracting can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.11 Client-Centred Service

Information on Client-Centred Service can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.12 Travel Policies

Information on Travel Policies can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.1.13 Storage Tanks

Information on Additional Information on User Fees can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

5.2 Results Information for Sub-Program and Sub-Sub-Program Activities by Strategic Outcome

1. 5.2.1 A Fair, Efficient and Competitive Marketplace
2. 5.2.2 An Innovative Economy
3. 5.2.3 Competitive Industry and Sustainable Communities

5.2.1 A Fair, Efficient and Competitive Marketplace

This section provides information on each of the sub-program and sub-sub-program activities identified in Industry Canada's Program Activity Architecture. Activities are listed by the program activity and strategic outcome to which they contribute. Information on these program activities and the departmental strategic outcomes is provided in sections 1 and 2 of this document. By working to achieve the expected results for these activities, Industry Canada makes progress toward achieving results at the program activity and strategic outcome levels, and therefore toward fulfilling its mandate.

Strategic Outcome
A fair, efficient and competitive marketplace
Program Activity: Policy Sector – Marketplace
Sub-Program Activity: Marketplace Framework Policy Branch
Development of legislative and/or regulatory policies pertaining to corporate insolvency and intellectual property to ensure that the marketplace framework laws are responsive to market needs
Expected Result: Development of policy to support legislative and regulatory initiatives
Performance Indicator	Results
Reports and consultation papers published	Consultations regarding the Canadian position with respect to a possible World Intellectual Property Organization Broadcasting Treaty. Consultations on pre-publication in the Canada Gazette to amend the Patented Medicines (Notice of Compliance) Regulations under the Patent Act. Consultation paper on Canada's Access to Medicines Regime. The purpose of this paper was to solicit comments on how the regime can better deliver on Canada's commitment to improve access to less expensive medicines that are urgently needed to treat HIV/AIDS, malaria, tuberculosis and other epidemics in developing and least-developed countries while remaining compliant with World Trade Organization (WTO) rules.

Sub-Program Activity: Strategic Policy Branch
Development of strategic frameworks for the marketplace
Expected Result: Integration of departmental and governmental objectives into the development of marketplace policies
Performance Indicator	Results
Number of unique marketplace items reviewed by the Director General Policy Committee (DGPC)	25 items The DGPC met throughout 2006-07 and reviewed 25 marketplace items

Sub-Program Activity: Micro-Economic Policy Analysis Branch
Micro-economic analysis in support of marketplace policy development
Expected Result: High-quality micro-economic research and analysis of significant policy issues as input to policy development
Performance Indicators	Results
Number of:
papers presented at conferences, seminars and round tables	9 papers presented at conferences, workshops and round tables
conferences, round tables and seminars organized (and number of attendees)	2 workshops and 4 seminars organized with 236 attendees in total
research publications	2 research publications; 2 reports prepared for internal use
current analysis publications	None
hits and downloads for Micro-Economic Policy Analysis Branch on Strategis	Total hits (views) on Economic Analysis and Statistics page on Strategis site: 269,303 (note that this total is not disaggregated by strategic outcome)

Sub-Program Activity: Small Business Policy Branch
Research, analysis and action on regulatory compliance issues affecting SMEs
Expected Result: Immediate: Established benchmark for tracking progress in paperwork burden reduction Identification of practical solutions for implementation to reduce paperwork burden for small business
Performance Indicators	Results
Immediate:
Established measure for the dollar cost of paperwork burden for SMEs by employment size of firm	Survey Briefing No. 1 with final cost estimates released by StatsCan (December 2006); total estimated costs: $1.53 billion Report to be released by fall 2007
Dedicated resources to implement identified paperwork burden reduction solutions	Survey Briefing No. 1 with final cost estimates released by StatsCan (December 2006); total estimated costs: $1.53 billion Report to be released by fall 2007
Expected Result: Long-term: Reductions in the cost of regulatory compliance facing small businesses
Performance Indicator	Results
Long-term:
Dollar cost of paperwork burden for small and medium-sized businesses and the number of businesses affected by implemented paperwork burden reduction solutions	Survey Briefing No. 1 with final cost estimates released by StatsCan (December 2006); total estimated costs: $1.53 billion Report to be released by fall 2007

Sub-Program Activity: Small Business Policy Branch
Research, analysis and action on regulatory compliance issues affecting SMEs
Expected Result: Measurable reductions in the cost of regulatory compliance borne by Canadian small businesses
Performance Indicator	Result
Cost ($) of regulatory compliance by size of firm	Survey data with final cost estimates released by StatsCan (December 2006); total estimated costs for sampled businesses: $1.53 billion. Results are from first survey ever administered and will be used as a benchmark to measure progress in future years.

Sub-Program Activity: International and Intergovernmental Affairs
Intergovernmental negotiation to reduce or eliminate barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market
Expected Result: Engaging with the provinces/territories to remove internal trade barriers
Performance Indicator	Result
Results of annual ministerial meeting and number of meetings of federal/provincial/territorial officials	Agreement on improved labour mobility within Canada. The Committee of Federal-Provincial-Territorial Ministers responsible for Internal Trade agreed, in September 2006, to implement a strategy to improve labour mobility so that by April 1, 2009, Canadians will be able to work and have their occupational qualifications recognized anywhere in Canada.

Program Activity: Operations Sector – Marketplace

Sub-Program Activity: Regional Operations – Spectrum
Compliance with spectrum regulations through licensing and enforcement
Expected Result: Timely and effective assignment of radio frequency spectrum
Performance Indicators	Results
Meet national licensing service standards	Atlantic: 98 percent Quebec: 91 percent Ontario: 98 percent Prairie and Northern Region: 99 percent Pacific: 95 percent National: 97 percent
Client satisfaction	The last survey (2004) revealed that 79 percent of clients were satisfied with our services. Client surveys are conducted every 3 to 5 years; the next is planned for 2008-09.
Expected Result: Compliance with legislation, regulation and conditions of licence
Performance Indicator	Result
Percentage of stations operating in compliance with their authorized parameters	70 percent of stations operating in compliance with their authorized parameters

Sub-Program Activity: Measurement Canada
Integrity and accuracy of measurement in Canada
Expected Result: Integrity and accuracy of measurement in Canada
Performance Indicators	Results
Year-over-year growth in number of service providers authorized by Measurement Canada	A 57-percent increase in the number of authorized service providers
Year-over-year growth in the proportion of measurement system inspections performed by authorized service providers	A 15-percent growth in the proportion of inspections performed by authorized service providers

Sub-Program Activity: Office of the Superintendent of Bankruptcy Canada
Integrity of the insolvency system through supervision of the administration of all estates to which the Bankruptcy and Insolvency Act applies
Expected Result: The integrity of the bankruptcy and insolvency system is protected
Performance Indicator	Results
Level of trustee compliance	92.3 percent summary estates not older than 3 years 60.2 percent ordinary estates not older than 3 years
Expected Result: Efficiency of the insolvency process
Performance Indicators	Results
Percentage of consumer bankruptcies and proposals filed electronically	98.9 percent of consumer bankruptcies filed electronically 97.2 percent of proposals filed electronically
Percentage of trustees using the e-filing system	94.0 percent of trustees using the e-filing system

Sub-Program Activity: Corporations Canada
Administration of corporate laws and related acts, and duties of the Office of the Registrar General of Canada
Expected Result: Improved compliance with corporate laws and regulations
Performance Indicator	Result
Percentage of corporations that comply with statutory requirements	79.5 percent corporation compliance for annual return filings
Expected Result: Improved ease of use and timeliness of access to incorporation services and information
Performance Indicator	Result
Level of Corporations Canada's service standards achieved	Service standards met 94.6 percent of the time
Expected Result: High level of key services delivered electronically
Performance Indicator	Results
Percentage of transactions completed online for key services	84 percent of new incorporations completed online 75 percent of annual returns received online
Expected Result: Improved and faster turnaround time for name search reports to business community and federal and provincial/territorial partners and stakeholders
Performance Indicator	Result
Service standards are met	100 percent

Program Activity: Spectrum, Information Technologies and Telecommunications Sector – Marketplace

Sub-Program Activity: Spectrum/Telecom Program
Facilitation of the development and use of world-class information and telecommunications technologies and services while maintaining and promoting a fair, efficient and competitive communications marketplace
Expected Result: Canadian interests and requirements pertaining to radiocommunications and telecommunications are reflected in international agreements and standards
Performance Indicator	Results
Degree of client satisfaction with the way Canadian interests and requirements are reflected in international agreements and standards	APEC TEL working group meeting held in Calgary Canadian objectives, developed in consultation with Canadian industry, achieved at International Telecommunication Union Plenipotentiary Conference Following World Radiocommunication Conference 2003, client feedback indicated a high degree of satisfaction on the part of our clients. Through ongoing contact in the last year, clients (e.g., Canadian Association of Fire Chiefs, Tantalus Systems Corp., Spectrocan, etc.) continue to provide positive feedback on our results.
Expected Result: Policies, regulations, standards and procedures are in place to enable the introduction of new radiocommunications/telecommunications technologies and services in the Canadian marketplace
Performance Indicator	Results
Degree of client satisfaction in the manner in which new radiocommunications/telecommunications technologies and services are introduced in the Canadian marketplace	Advances made on making new frequency bands available for our clients; e.g., advanced wireless services, 4.9 GHz for public safety, 700 MHz for rural and remote broadband services, and 3,650 MHz for wireless broadband services At the request of Canadian stakeholders, an extensive consultation was completed regarding the need for additional satellite capacity for Canada. Following this, Industry Canada launched a licensing initiative to authorize the development of Canadian satellites. (The last feedback exercise took place in 2004-05 through a client satisfaction survey. Through clientele contact in the last year, we have no indication that the client satisfaction level has changed since the 2004-05 survey.) The government made a decision to change Telecom Decision CRTC 2005-28 in order to accelerate deregulation of certain Voice over Internet Protocol (VoIP) services provided by former monopoly telephone companies.
Expected Result: Canadians have access to a reliable ICT infrastructure during times of emergency
Performance Indicators	Results
Percentage of mitigation communications systems in place and operational (wireless priority service / priority access dialing)	90 percent wireless priority service; 90 percent priority access dialing
Percentage of population covered by Public Alerting System	10.3 percent of population covered

Sub-Program Activity: Electronic Commerce Branch
Development of regulations and policies to promote e-business development and growth in Canada and strategies to encourage e-business adoption and use among Canadian businesses through analysis and measurement
Expected Result: Increased awareness and use of e-commerce and e-business tools by Canadian industry
Performance Indicator	Results
Assessment of Canada's e-business and e-commerce performance through surveys and formal economic analysis and reports	According to recent Statistics Canada data (Survey of Electronic Commerce in Canada, 2006), e-commerce in Canada continued its average annual growth rate of 50 percent in 2005-06 The value of the Canadian online market in 2006 was approximately $50 billion ($49.9 billion according to the Survey of Electronic Commerce and Technology [SECT] released April 2007)
Expected Result: Up-to-date policies, legislation and regulations, enabling the development and growth of Canadian industries in e-business/e-economy, both domestically and abroad
Performance Indicator	Results
New or updated legislation, policies, regulations shaping the Canadian e-economy and supporting the development of international frameworks consistent with Canadian interests	Made representations to parliamentary committee reviewing Personal Information Protection and Electronic Documents Act (PIPEDA) Led development of "StopSpamAlliance," an association of international organizations developing policies and enforcement cooperation and tabled proposal at OECD to further develop the Alliance into implementation phase

Program Activity: Office of Consumer Affairs (OCA)

Sub-Program Activity: Consumer Policy
Policy development, intergovernmental collaboration and the development of non-regulatory instruments for consumer protection
Expected Result: Strengthened consumer research
Performance Indicator	Result
Consumer policy research projects developed with the active engagement of the Office of Consumer Affairs (OCA)	13 research projects
Expected Result: Strengthened intergovernmental collaboration
Performance Indicator	Result
Intergovernmental collaborative projects developed with the active engagement of the OCA	7 collaborative projects
Expected Result: Developed or strengthened non-regulatory instruments
Performance Indicators	Results
Codes, guides, guidelines, standards and other non-regulatory instruments	3 key initiatives
Indications of usage of such non-regulatory instruments (where available)	All above initiatives recent but International Organization for Standardization (ISO) officials note brisk sales in customer satisfaction standards

Sub-Program Activity: Consumer Information and Coordination
Dissemination of consumer information products and services, and strengthened capacity building for the consumer voluntary sector
Expected Result: Improved access to consumer information provided by government
Performance Indicators	Results
Take-up of OCA online consumer information products and services	67-percent increase in number of visitors to the Canadian Consumer Information Gateway from previous fiscal year; over 800,000 unique visitors to the Canadian OCA, the Canadian Consumer Information Gateway and Communications Research Centre sites
Client satisfaction	Due to budgetary restraints, annual web validator client feedback survey not undertaken in 2006-07
Expected Result: Improved capacity of consumer groups
Performance Indicators	Results
Research project proposals funded under the Contributions Program for Non-Profit Consumer and Voluntary Organizations, and project report distribution (where available)	30 research project proposals funded
Number of development project proposals funded under the Contributions Program for Non-Profit Consumer and Voluntary Organizations, and project follow-up (where available)	4 development project proposals funded

Program Activity: Competition Bureau – Marketplace

Sub-Program Activity: Enforcement With Respect to Competition
Expected Result: Marketplace awareness of the enforcement activities of the Competition Bureau
Performance Indicator	Result
Extent to which target groups adjust behaviours based on their awareness and understanding of the enforcement activities of the Bureau	Results to be reported every 2 years. Results were reported in 2005-06.
Expected Result: Companies cease their anti-competitive conduct following enforcement interventions
Performance Indicator	Results
Extent to which companies cease their anti-competitive conduct	15 alternate case resolutions negotiated by the Bureau. (Note: Alternative Case Resolutions seek to achieve compliance with the law without contested enforcement measures. It is a means of achieving conformity by providing guidance on certain aspects of the law.)

Sub-Program Activity: Framework Policy and Advocacy With Respect to Competition
Expected Result: Awareness of competition principles by government policy-makers and stakeholders
Performance Indicator	Result
Extent to which target groups are aware of, understand and consider competition principles when proposing changes to regulation and legislation	Competition principles taken into consideration during the debate of five major issues in Parliament: telecommunications, gasoline, agriculture, transportation and financial services.
Expected Result: A modern policy framework
Performance Indicator	Result
Extent to which framework policy responds to evolving technology and business arrangements, regulatory reform, increasing globalization and changing economic and social conditions	Based in part on the Bureau's submissions, the Telecommunications Policy Review Panel recommended that Canada modernize its telecommunications policy framework to allow market forces and competition to guide the growth of the industry. Subsequently, the Minister of Industry adopted the recommendation of the Panel in this regard and directed the CRTC to take a more market-based approach to implementing the Telecommunications Act and regulating only when necessary.

Sub-Program Activity: Services With Respect to Competition
Expected Result: Provide businesses and consumers with quality, timely and efficient services
Performance Indicator	Result
Extent to which service standards for Competition Bureau services are respected	94 percent of all Merger Review filings (non-complex, complex and very complex requests) completed within the service standards time frame.

Program Activity: Canadian Intellectual Property Office – Revolving Fund
No sub-program activities or sub-sub-program activities have been identified. Therefore, the lowest reporting level is the program activity level.

5.2.2 An Innovative Economy

Strategic Outcome
An innovative economy
Program Activity: Policy Sector – S&T and Innovation
Sub-Program Activity: Advisory Council on Science and Technology Secretariat
Provision of secretariat services to the Advisory Council on Science and Technology (ACST)
Expected Result: Provide the government's Advisory Council on Science and Technology with quality research and support services
Performance Indicators	Results
Number of recommendations made to the Minister of Industry and to the Prime Minister on issues related to science, technology, innovation and commercialization policies	Between April 1 and September 16, 2006, the ACST delivered the following sets of recommendations and backgrounders, as requested by the Minister of Industry: "Building Canada's Wealth and Well-Being Through Focussed Investments for Innovative Performance"; "Examining Investment Prioritization Approaches and Principles in S&T Investments"; and "Working Towards an Effective National S&T Strategy: Synergizing Regional and National Pathways and Directions." Between April 1 and September 16, 2006, the ACST held 3 meetings and 2 round tables, as well as over 8 teleconference meetings with provincial officials and regional advisory bodies. Between April 1 and July 31, 2006, the ACST received over 410 requests for its publications and reports.
Number of ACST meetings and consultation events (round tables, meetings, focus groups)
Number of web-based requests for reports and background papers

Sub-Program Activity: Strategic Policy Branch
Development of strategic policy frameworks to improve Canada's science and technology, and commercialization environment
Expected Result: Integration of departmental and governmental objectives into the development of innovation policies
Performance Indicator	Results
Number of unique innovation items reviewed by the DGPC	9 items The DGPC met through 2006-07 and reviewed 9 innovation items

Sub-Program Activity: Micro-Economic Policy Analysis Branch
Micro-economic analysis in support of science and technology policy development
Expected Result: High-quality micro-economic research and analysis on significant policy issues as input to policy development
Performance Indicators	Results
Number of:
papers presented at conferences, seminars and round tables	36 papers presented at conferences, workshops and round tables
conferences, round tables and seminars organized (and number of attendees)	2 workshops, 1 round table and 8 seminars organized, with 462 attendees in total
research publications	49 research publications; 3 reports prepared for internal use
current analysis publications	2 current analysis reports prepared for internal use
hits and downloads for micro-economic policy analysis on Strategis	Total hits (views) on economic analysis and statistics page on Strategis site: 269,303 (note that this total is not disaggregated by strategic outcome)

Sub-Program Activity: Innovation Policy Branch
Development of science, technology and innovation policies that enhance Canada's innovation capacity through promotion of investments in R&D infrastructure and skills development, and by ensuring the technology adoption capacity of the marketplace
Expected Result: Promotion of investment in R&D infrastructure and skills development, and promotion of the development of policies and programs supporting R&D, innovation and commercialization in the private sector
Performance Indicator	Results
Reports and consultation papers published, and Memoranda to Cabinet, policy documents, statistical reports, consultation papers and Treasury Board submissions	Undertook a major review of NSERC and SSHRC, which along with the Canadian Institute for Advanced Research international policy review, met the Budget 2006 commitment to undertake a value for money and accountability review of the granting councils Policy documents prepared that formed the basis of announcements in Budget 2007 on such topics as: Centres of Excellence in Commercialization and Research Business-led Networks of Centres of Excellence College programs Industrial R&D Internship program, granting council funding for priority research Indirect costs of Research Program – Canadian Foundation for Innovation; Genome Canada; scholarships; and the Canadian Institute for Advanced Research
Sub-Sub-Program Activity: Canadian Institute for Advanced Research (CIAR)
To bring together world-class researchers to tackle significant issues confronting Canadian society and challenging our understanding of the natural world
Expected Result: Multidisciplinary teams of researchers are able to collaborate to push forward the frontiers of knowledge
Performance Indicator	Results
Amount of national and international recognition and number of awards provided to those researchers involved with the Canadian Institute for Advanced Research (CIAR)	43.4 percent of CIAR's researchers ranked among the top 1 percent of researchers in their field worldwide CIAR program members received 38 major awards and honours
Sub-Sub-Program Activity: Pierre Elliott Trudeau Foundation
To support research and the dissemination of research findings in the following fields of study in the humanities and human sciences: Canadian studies, history, international relations, journalism, law, peace and conflict studies, philosophy, political economy, political science, sociology, and urban and community studies
Expected Result: Expanded knowledge base in the social sciences and humanities and in public policy
Performance Indicator	Results
Volume of research performed by awards recipients	Funded research activities: 5 fellows added in 2006, for a total of 19 research programs conducted by fellows since 2003 15 doctoral scholars added in 2006, for a total of 54 doctoral programs funded since 2003 18 knowledge transfer activities organized/funded in 2006, for a total of 39 since 2003
Sub-Sub-Program Activity: Canada Foundation for Innovation
Funds targeted to strengthen the capability of Canadian universities, colleges, research hospitals and other not-for-profit institutions to carry out world-class research and technology development
Expected Result: The strengthening of research capability at Canadian research institutions
Performance Indicator	Result
Percentage of Innovation Fund recipients that rate the quality of their new infrastructure as near world-class or better, as a result of Canada Foundation for Innovation (CFI) awards	Of those project leaders reporting on Innovation Fund and with infrastructure sufficiently developed to permit comparison, 56.7 percent reported that their infrastructure was comparable to the best in the world.
Expected Result: Attracting and retaining researchers at Canadian research institutions
Performance Indicator	Results
Percentage of New Opportunities Fund (NOF) and Canada Research Chairs fund recipients whose recruitment to Canada and/or retention in Canada was influenced by CFI awards	62.1 percent (332 of 535) of NOF and Canada Research Chairs Infrastructure Funding (CRCIF) recipients, with awards finalized in 2005-06 confirm that the availability of the infrastructure was an important factor in recruitment and retention at the institution(s). 20.9 percent (112 of 535) indicated that more than 1 researcher was attracted and/or retained.
Sub-Sub-Program Activity: Canada-Israel Industrial Research and Development Foundation (CIIRDF)
Co-funding of a private sector foundation (50 percent contribution from Canada, 50 percent from Israel), which supports research and development collaboration between Canadian and Israeli firms
Expected Result: Strengthened Canadian business through global R&D cooperation
Performance Indicator	Result
Increase of employment at firms that have CIIRDF-funded projects	This program is no longer the responsibility of the Investment Partnerships Branch, therefore, no results information is available (currently managed by Foreign Affairs and International Trade Canada).
Sub-Sub-Program Activity: Council of Canadian Academies
Expected Result: More informed public debate and government decision making on public policy issues that have scientific and/or technological underpinnings
Performance Indicator	Results
References to Council of Canadian Academies (CCA) assessments in public policy discussions and Memoranda to Cabinet	The CCA released its first report, The State of Science and Technology in Canada, in September 2006, which helped inform the development of the federal S&T strategy, in particular the four priority areas for S&T. The study received media-engendered attention, with substantial stakeholder dialogue around S&T and innovation in Canada. The CCA launched 3 new assessments (on groundwater, gas hydrates and nanotechnology).

Program Activity: Industry Sector – S&T and Innovation

Sub-Program Activity: Manufacturing Industries Branch
Development of initiatives that stimulate R&D to accelerate the commercialization of emerging technologies in priority manufacturing sectors
Expected Result: Sustainable manufacturing practices
Performance Indicators	Results
Number of lean manufacturing workshops and workshops related to sustainable manufacturing	7 workshops
Number of business success stories developed	8 business success stories developed
Number of visits to the website on sustainable manufacturing	34,500 visits (an average of 2,873 per month)

Sub-Program Activity: Energy and Environmental Industries Branch
Development of initiatives to stimulate research, development and commercialization of emerging technologies in priority energy sectors and environmental industries
Expected Result: Development of emerging technologies in energy and environmental industry sectors
Performance Indicators	Results
Revenues	Total: $2.04 billion
Total employment	Total: 8,496
Number of patents in the hydrogen and fuel cells sectors	64 patents
Expected Result: Improved appreciation of issues and policies related to climate change
Performance Indicators	Results
Number of policies and programs contributed to through interdepartmental policy consultations	2 policies and programs were contributed to through interdepartmental policy consultations
Number of consultations with and/or requests answered from clients (e.g., other government departments, partners within Industry Canada)	Attended numerous consultations led by Environment Canada – 15 consultations with industry and several others with provinces and NGOs
Sub-Sub-Program Activity: Hydrogen Economy
Acceleration of the development of a hydrogen economy through investments in R&D, demonstration and deployment of hydrogen and fuel cell technologies
Expected Result: Expanded knowledge base for climate change mitigation related to a hydrogen economy
Performance Indicator	Result
Number of research projects, scientific and technological studies, strategic plans	Completed over five significant initiatives related to planning, coordination, policy and analysis, and development
Expected Result: Increased collaboration between partners and improved activity coordination
Performance Indicator	Result
Number of integrated working models, interdepartmental programs and partnerships	Hydrogen and Fuel Cell Committee (H2FCC) and subcommittees (national strategy and communications working groups) and 7 other working groups and partnerships

Sub-Program Activity: Service Industries Branch
Development of initiatives that stimulate R&D to accelerate the commercialization of priority technologies in the service industries
Expected Result: Improved awareness of international business opportunities by Canadian companies in the service industries sector
Performance Indicator	Result
Number of website hits by Canadian firms	71,087 website hits by Canadian firms

Sub-Program Activity: Aerospace, Defence and Marine Branch
Development of initiatives that stimulate R&D to accelerate the commercialization of emerging technologies in priority aerospace, defence and marine sectors
Expected Result: Development of Canadian technologies and innovations in the aerospace, space and defence industries
Performance Indicators	Results
Number of collaborative projects with partners in industry, government and academia	36 projects
Number of policies and programs developed and approved in support of S&T	3 policies and programs
Number of patents	At least 909 aerospace, at least 1,050 defence
Number of consultations with and/or requests from clients (e.g., sector advisory councils, laboratories, institutes, other government departments and other sector stakeholders)	149 consultations with and/or requests from clients
Value (in dollars) of foreign direct investment and domestic investments and reinvestments in aerospace, space and defence industries	Data not available; only national aggregate data on investment are available from Statistics Canada, so industry-specific figures cannot be reported for aerospace, space and defence
Expected Result: Increased awareness and knowledge of the ocean technology sector
Performance Indicators	Results
Number of hits on website	Total number of website hits: 25,658 Total number of hits to home pages: 2,505
Number of information packages and brochures distributed	43 information packages distributed 300 brochures distributed
Number of Canadian companies attending key trade shows and conferences	Attendance by 234 companies

Sub-Program Activity: Life Sciences Branch
Development of initiatives that stimulate R&D and commercialization in the priority life sciences sectors
Expected Result: Increased commercialization performance in Canada's life sciences (biotechnology and health) industries
Performance Indicators	Results
Number of public companies with less than two years of financing	Of the 80 public biopharmaceutical companies, 55 have less than 2 years of financing
Number and value of venture capital investments	Venture capital funds raised – investments for 2006 for the Life Sciences sector totalled $493 million (214 deals)
Number of products in biopharmaceutical pipeline	486 products
Sub-Sub-Program Activity: Genome Canada
The primary funding and information resource relating to genomics and proteomics in Canada, to enable Canada to become a world leader in key areas such as agriculture, environment, fisheries, forestry, health and new technology development, as well as ethical, environmental, economic, legal and social issues related to genomics (GE3LS)
Expected Result: Effective management of the government's funding agreement with Genome Canada
Performance Indicators	Results
Submissions for funding appropriations	Treasury Board submission for $100 million
Negotiations with TBS and the Department of Finance	Proposal for Budget 2007 developed
Renewal of Genome Canada's mandate and funding	Development of the Budget 2007 proposal resulted in increased funding of $100 million for Genome Canada to continue its work

Sub-Program Activity: Industrial Analysis and Sector Services Branch
Support for the development of policies, programs and initiatives for priority sectors through policy analysis and research on issues related to the commercialization of emerging technologies
Expected Result: Increased profile of industrial issues and policies involved in making the Canadian economy more innovative
Performance Indicators	Results
Sectoral reports and Memoranda to Cabinet	Industrial Intelligence Profiles (i.e., sectoral reports) developed for 12 sectors No Memoranda to Cabinet were developed
Number of policy recommendations made to senior officials of Industry Canada	None

Sub-Program Activity: Automotive and Industrial Materials Branch
Development of initiatives that stimulate R&D to accelerate the commercialization of emerging technologies in priority aerospace, defence and automotive sectors
Expected Result: Development of Canadian technologies and innovations in the automotive and industrial materials industries
Performance Indicators	Results
Number of industrial policy recommendations developed and adopted in support of Canadian technologies and innovations in the automotive and industrial materials industries (e.g., number of Memoranda to Cabinet, policy papers)	Automotive: Trade policy – participated in South Korea Free Trade Agreement negotiations, provided input into Foreign Affairs and International Trade Canada Memoranda to Cabinet, and negotiating mandate Automotive: Provided input into government response to the House of Commons Standing Committee on Industry, Science and Technology (INDU) recommendations Automotive: Provided input into the development of government's approach to regulating fuel consumption – Memorandum to Cabinet developed by Transport Canada and Environment Canada on environmental issues related to the auto industry
Development and approval of new S&T policy and program initiatives (e.g., Technology Roadmaps)	Automotive: Input to Natural Resources Canada Memorandum to Cabinet on technology support programs
Value (in dollars) of foreign direct investment and domestic investments and reinvestments in automotive and industrial materials industries	Automotive: $3.6 billion
Number of responses given by branch in support of technology/R&D development by other federal departments and agencies (e.g., Technology Partnerships Canada)	Automotive: 8 responses to Technology Partnerships Canada ($450 million to $500 million to leverage close to $7.5 billion in company investments)

Sub-Program Activity: Canadian Biotechnology Secretariat
Horizontal policy advice and program management in support of Canadian Biotechnology Strategy partner departments and agencies, and secretariat services to the Canadian Biotechnology Advisory Committee
Expected Result: Coordination of the development of the Government of Canada's biotechnology agenda
Performance Indicator	Results
Secretariat support to interdepartmental collaboration on biotechnology policy issues and implementation	Coordinated development of a Memorandum to Cabinet on the federal biotechnology policy agenda Coordinated allocation of CBS funds for 2006-07 and tracked outputs from 2005-06 Launched BioNetwork, an online knowledge management tool; BioNetwork is a Government Technology Exhibition and Conference (GTEC) award recipient Supported transparent accountability of federal government investments in the CBS Fund (annual reports, horizontal DPRs and RPPs)
Expected Result: Support to the Canadian Biotechnology Advisory Committee
Performance Indicators	Results
Stakeholder consultations held and reports released	Organized series of expert round tables and extended citizen focus groups, and released report on the renewal of the Canadian Biotechnology Strategy
Research commissioned and reports released	Released a major report BioPromise? Biotechnology, Sustainable Development and Canada's Future Economy Released CBAC's fifth annual report (2005)
Advice provided to the Government of Canada	Prepared an advisory memorandum on biotechnology, sustainable development and Canada's future economy, and published Biotech Watch – CBAC's newsletter – which examines a range of biotechnology policy issues Completed Wave 14 of public opinion research and released a report on public's views on emerging technologies
Expected Result: Communication of the Government of Canada's biotechnology initiative
Performance Indicator	Result
Expanded content of the BioPortal	Launched BioGov, a fully searchable section of the BioPortal on global biotechnology strategies, policies and regulations from governments and governing bodies around the globe

Program Activity: Spectrum, Information Technologies and Telecommunications Sector – S&T and Innovation

Sub-Program Activity: Information and Communications Technologies Branch
Strengthening of Canada's S&T capacity by addressing human resource requirements, international linkages and commercialization issues; delivery of CANARIE and Precarn on behalf of the Government of Canada
Expected Result: Ongoing investment in the R&D infrastructure
Performance Indicator	Result
Investment in research organizations	Links 200 institutions and funds 21 projects
Sub-Sub-Program Activity: CANARIE
Collaborate with stakeholders to develop and use advanced networks, networking technologies and applications in order to deliver a range of benefits to Canadians and researchers
Expected Result: An advanced research network across Canada
Performance Indicators	Results
Number of institutions connected	Total number of institutions connected: 80 universities, 50 colleges, 40 research centres, 70 hospitals, 50 government laboratories, 10 cultural institutions
Amount of money invested annually	$66.3 million invested as part of a 5-year conditional grant, not in equal amounts (as per 2002's 5-year conditional grant)
Sub-Sub-Program Activity: Precarn
Support collaborative research for the development of the Canadian intelligent systems industry and encourage the diffusion and commercial exploitation of new technologies
Expected Result: Increased development and use of intelligent systems technologies
Performance Indicator	Results
Number of projects funded and amount of funding involved	7 national small company projects: $2.9 million 4 regional alliance projects: $955,000 10 technology GAP projects: $582,000

Program Activity: Communications Research Centre Canada (CRC)

Sub-Program Activity: CRC – Wireless and Photonics Research
Conducting R&D on innovative concepts, systems and enabling technologies for the convergence of telecommunications systems and to improve the security, interoperability and reliability of communications networks in Canada
Expected Result: The Communications Research Centre Canada (CRC) is well positioned to provide strategic advice, as well as direct assistance, for the development of policy, regulations and standards, as well as for economic development in the telecommunications sector, as new technical developments and challenges arise.
Performance Indicators	Results
CRC participation on Industry Canada, national and international standards, policy and regulatory committees as technical experts	Value of directed research carried out for the Industry Canada SITT sector: $1.84 million CRC participated in ITU working groups as co-chair or technical members (radio and broadcasting). CRC continues as co-chair of the Institute of Electrical and Electronics Engineers (IEEE) 802.22 working group and is also participating in 802.16 (Wi-MAX co-existence). CRC contributed to technical analysis and planning of the next generation of search and rescue satellite systems.
CRC participation in Industry Canada and other government industrial support programs as technical experts	CRC provided a comprehensive response to the CRTC Notice on the Future of Broadcasting and also contributed to organizations responsible for public safety communications.

Sub-Program Activity: CRC – Defence R&D
Provision of scientific knowledge and expertise in wireless communications to National Defence in order to improve decision making and operation capability of the Canadian Forces
Expected Result: National Defence can make better and more informed decisions on new technologies related to future military communications systems
Performance Indicator	Results
Technologies are adopted that enhance or provide new capabilities for Canadian Forces operations	Directed research projects valued at $5.32 million (including recovered salaries) were carried out for National Defence. CRC conducted a major demonstration of an experimental tactical communications network that highlighted new military capabilities possible with the use of advanced wireless and network technologies.

Sub-Program Activity: CRC – Research Support
To provide business development, technology transfer, and information networks and systems support of CRC R&D efforts, liaison and collaboration with the international science and technology community; and to increase opportunities for the commercialization of technologies
Expected Result: Canadian telecommunications industry has knowledge of and efficient access to CRC's intellectual property portfolio
Performance Indicator	Results
Industrial partnerships and revenue resulting from CRC's intellectual property portfolio, as well as communications regarding its technical capabilities	CRC manages a Technology Transfer Office as a primary point of contact for intellectual property and other contractual agreements. Total external revenue for 2006-07 was $2.31 million.

Program Activity: Technology Partnerships Canada (TPC)

Sub-Program Activity: TPC – R&D Support Program
Strategic investments in industrial research, pre-competitive development and related studies
Expected Result: Leverage of private sector R&D investment
Performance Indicators	Results
Weighted average (by value) TPC sharing ratio	28-percent sharing ratio
Dollars of total innovation spending leveraged per dollar of TPC investment	$4.67 in innovation spending leveraged per $1.00 of TPC investment
Expected Result: Increased skills, knowledge and competencies of Canadian companies
Performance Indicator	Result
Actual number of new jobs created and/or maintained	5,279 new jobs created and/or maintained
Expected Result: Repayments recycled into program funds
Performance Indicator	Result
Repayment amount relative to TPC business plan target	$65.8 million repaid

Sub-Program Activity: TPC – h2 Early Adopters Program
Investments in new hydrogen technology demonstration projects that will bring Canada into the hydrogen economy
Expected Result: Accelerate the market adoption of hydrogen and hydrogen-compatible technologies
Performance Indicator	Result
Number of participants involved in demonstration projects	None
Expected Result: Leverage of private sector R&D investment
Performance Indicators	Results
Weighted average (by value) TPC sharing ratio	None
Dollars of total innovation spending expected, leveraged per dollar of TPC investment	None

5.2.3 Competitive Industry and Sustainable Communities

Strategic Outcome
Competitive industry and sustainable communities
Program Activity: Policy Sector – Economic Development
Sub-Program Activity: International and Intergovernmental Affairs – Economic Development
Impact of international trade, investment and services negotiations on industry interests identified and assessed
Expected Result: Alignment of federal and provincial/territorial innovation, industrial development and competitiveness policy
Performance Indicator	Results
Extent to which provinces and territories are engaged or consulted in the development of policies and programs	The following federal-provincial-territorial (FPT) meetings were convened to discuss horizontal departmental-wide issues: two ministerial meetings (both with the Government of Ontario); three deputy ministerial meetings (one with each of the governments of Ontario, New Brunswick and Alberta); and one deputy ministerial conference call (all provinces/territories were invited to participate).
Expected Result: Integration of departmental interests into the government's international policy positions
Performance Indicator	Results
Number of trade-related Memoranda to Cabinet approved by Cabinet committees; number of international trips and missions coordinated for the Minister; number of Cabinet briefings on international issues	7 Cabinet briefings35 meetings 4 foreign trips and 14 foreign delegations received (Due to a reorganization within Industry Canada, the IIA Directorate retains responsibility only for the 2nd Expected Result.)
Expected Result: Timely processing of notifications and applications for review filed by foreign investors under the Investment Canada Act
Performance Indicator	Results
Time required to process notifications and applications	Average time required to process notifications was 11 days. Average time required to process applications was 47 days.

Sub-Program Activity: Strategic Policy Branch – Economic Development
Development of strategic policy frameworks for economic and sustainable development
Expected Result: Integration of departmental and governmental objectives into the development of economic and sustainable development policies
Performance Indicator	Results
Number of unique economic development and sustainable development items reviewed by the DGPC	17 items The DGPC met throughout 2006-07 and reviewed 17 economic development and sustainable development items
Sub-Sub-Program Activity: Sustainable Development Strategy
Development and implementation of the Department's Sustainable Development Strategy
Expected Result: Increased commercialization and adoption of eco-efficient tools and technologies by Canadian companies
Performance Indicators	Results
Number of Canadian companies that have:
adopted ISO 14001	Number of companies that have adopted ISO 14001: total as of March 31, 2007, was 2,578 – an increase of 1,086 over 2006
produced sustainability reports	New information on the number of Canadian companies that have produced sustainability reports will not be available until next year because the study will not be completed until then.
Expected Result: Increased use by industry, institutions and communities of corporate responsibility and sustainability practices
Performance Indicators	Results
Number of Canadian companies that have:
adopted ISO 14001	Number of companies that have adopted ISO 14001: total as of March 31, 2007, was 2,578 – an increase of 1,086 over 2006
produced sustainability reports	New information on the number of Canadian companies that have produced sustainability reports will not be available until next year because the study will not be completed until then.

Sub-Program Activity: Micro-Economic Policy Analysis Branch
Micro-economic analysis in support of economic policy development
Expected Result: High-quality micro-economic research and analysis on significant policy issues as input to policy development
Performance Indicators	Results
Number of:
papers presented at conferences, seminars and round tables	17 papers presented at conferences
conferences, round tables and seminars organized (and number of attendees)	1 conference, 1 round table and 2 seminars organized, with 262 attendees in total
research publications	None
current analysis publications	1 current analysis publication; 7 reports prepared for internal use
hits and downloads for micro-economic policy analysis on Strategis	Total hits (views) on Economic Analysis and Statistics page on Strategis site: 269,303 (note that this total is not disaggregated by strategic outcome)

Sub-Program Activity: Small Business Policy Branch
High-quality research and analysis on small business issues as input to policy development
Expected Result: Increased awareness and use of information relating to small business issues by policy-makers and other small business stakeholders
Performance Indicator	Results
Number of quality (i.e., accuracy, timeliness, responsiveness and clarity) references to small business issues in policy and program instruments (e.g., Memoranda to Cabinet, aide-mémoire, Treasury Board submissions).	33 references (research reports, analysis, briefing documents, consultations and outreach) related to small business policy and programs Provided accurate and timely responses to numerous requests for information (online and telephone inquiry)

Program Activity: Operations Sector – Economic Development

Sub-Program Activity: Canada Small Business Financing (CSBF) Program
Administration of the Canada Small Business Financing Act and the Small Business Loans Act
Expected Result: Access to debt financing for SMEs
Performance Indicators	Results
Number of loans registered	9,621 loans registered
Value of loans registered	$1.0 billion
Level of incrementality	76.5 percent of CSBF borrowers surveyed obtained some degree of financial incrementality the incrementality survey was conducted by Equinox Management Consultants Limited in 2004
Expected Result: Awareness of and satisfaction with the CSBF program on the part of participating lenders
Performance Indicator	Result
Levels of awareness and satisfaction with the program and its parameters on the part of participating lenders	A Lender Awareness and Satisfaction Survey conducted by Circum Network Inc. in 2004 indicated 87 percent satisfied, and 85 percent are aware of the program, and its parameters

Sub-Program Activity: FedNor
Economic stability, growth, diversification, job creation and sustainable communities in Northern and rural Ontario
Expected Result: Improved community capacity and long-term sustainable economic development in Northern and rural Ontario
Performance Indicator	Result
Assessment of individual program results	Community capacity and long-term sustainable economic development advanced in rural and Northern Ontario through results noted below for Community Futures Program, Northern Ontario Development Program and Eastern Ontario Development Program
Sub-Sub-Program Activity: Community Futures Program
Community economic development in rural Ontario
Expected Result: Community economic development plans implemented
Performance Indicator	Result
Number of community economic development plans implemented	24 community economic development plans implemented (all 61 CFDCs are engaged in community economic development planning but at different stages of implementation)
Expected Result: Businesses created and strengthened
Performance Indicator	Result
Number of SMEs created or strengthened	3,652 SMEs created or strengthened
Sub-Sub-Program Activity: Northern Ontario Development Program
Regional and community development in Northern Ontario
Expected Result: Improved retention and development of youth in Northern Ontario through improved skills and networking
Performance Indicator	Result
Percentage of interns finding long-term employment upon conclusion of internship	68.2 percent of interns found long-term employment
Expected Result: Increased investment through the development of strategic partnerships
Performance Indicator	Result
Leveraged funds from FedNor program investments	$143.6 million from FedNor program investments
Sub-Sub-Program Activity: Eastern Ontario Development Program
Community economic development in Eastern Ontario
Expected Result: Increased investment through the development of strategic partnerships
Performance Indicator	Result
Funds leveraged from Eastern Ontario Development Program (EODP) investments	$118.7 million leveraged from EODP investments
Expected Result: Businesses created
Performance Indicator	Result
Number of SMEs created	43 SMEs created

Sub-Program Activity: Sectoral Strategies and Services Branch / Canada-Ontario Infrastructure Program (COIP)
Improved community infrastructure through investments in rural and municipal infrastructure in Ontario, with an emphasis on green municipal infrastructure such as water and wastewater systems
Expected Result: Improved community infrastructure in Ontario
Performance Indicator	Result
Percentage of Ontario population that has benefited from investments made under COIP	83 percent of Ontario's population have benefited from COIP investments

Sub-Program Activity: Aboriginal Business Canada
Creation and expansion of viable businesses in Canada that are owned and controlled by Aboriginal peoples
Expected Result: Maximizing the participation of Aboriginal people in the economy through support for the creation and expansion of viable businesses in Canada that are owned and controlled by Aboriginal people
Performance Indicators	Result
Number of businesses established	This program was transferred to Indian and Northern Affairs Canada in December 2006; therefore, no results information is available
Number of businesses expanded
Average annual growth of the Aboriginal self-employed population between census years
Funds leveraged with ABC funding
Survival rate of businesses supported by ABC
Yield on Aboriginal Capital Corporation loans

Sub-Program Activity: Regional Delivery
Delivery of programs and services across Canada
Expected Result: Increased awareness and access to government business-related information, programs and services, and facilitated compliance for business
Performance Indicator	Results
Service usage	Canada Business Service Centres: Ontario: 42,054 clients served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), an increase of 8.8 percent over 2005-06; 949,868 Internet visits to Canada Business Network websites Yukon Territory: 1,256 clients served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), an increase of 6.2 percent over 2005-06; 145,807 Internet visits to Canada Business Network websites Northwest Territories: 631 clients served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), a decrease of 5.0 percent from 2005-06; 42,381 Internet visits to Canada Business Network websites Nunavut: 199 clients served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), a decrease of 7.8 percent from 2005-06; 24,798 Internet visits to Canada Business Network websites
Expected Result: Increased use of self-service channels
Performance Indicator	Results
Channel usage trends	Ontario: 949,868 Internet visits to Canada Business Network websites Yukon Territory: 145,807 Internet visits to Canada Business Network websites Northwest Territories: 42,381 Internet visits to Canada Business Network websites Nunavut: 24,798 Internet visits to Canada Business Network websites
Expected Result: Improved departmental understanding of regional socio-economic environment, issues, and implications for policy, programs, implementation and other initiatives
Performance Indicator	Results
Feedback on regional support, advice and intelligence from the Minister's Office and senior management	Feedback from senior management specifically on the course of action taken to enhance regional strategic intelligence, as well as the gathering and dissemination on information and data itself, was both positive and constructive. Senior management sees value in strategic regional intelligence and has seen continued improvement in the conciseness and consistency of the intelligence and the relevance of the emerging intelligence provided to them. Accurate and timely regional advice contributed to over 105 formal requests for information from senior management. Over 95 regional events and announcements were conducted by Industry Canada senior management, the Minister, the Secretary of State, and federal ministers for the period covered. When feedback was given, the Minister's Office, the Privy Council Office and senior management indicated a high degree of satisfaction regarding the information, advice and intelligence prepared and provided by the regional offices for these events and announcements.

Sub-Program Activity: Section 41, Official Languages Act
Improved participation by official-language minority communities (OLMCs) in existing federal economic development programs and services
Expected Result: Encourage participation of OLMCs in Industry Canada's programs
Performance Indicators	Results
The level of funding that OLMCs have received from Industry Canada	4 national organizations, representing more than 80 organizations, are aware of and informed about Industry Canada's programs. Industry Canada's total investments, excluding initiatives under the Federal Action Plan for Official Languages: $17.2 million.
The level of funding leveraged from Industry Canada partners	Francommunautés virtuelles program: $2.3-million investment from Industry Canada leveraged more than $2.9 million Canada-Ontario Infrastructure Program: $110.2-million investment from Industry Canada leveraged more than $220 million

Sub-Program Activity: Service to Business: Strategy and Innovation
Advancement of the service-to-business vision and improve client-centred government services to business
Expected Result: Improved availability of multi-jurisdictional permit and licence information accessible to business
Performance Indicator	Result
Level of client satisfaction	5 provinces/territories and over 25 municipalities now using BizPaL services, increasing client access

Sub-Program Activity: Canada Business – National Secretariat
Increased awareness and access to government business-related information, programs and services and facilitated compliance with regulations for businesses
Expected Result: Increased awareness and access to government business-related information, programs and services and facilitated compliance for businesses
Performance Indicator	Results
Service usage	237,915 clients served using assisted channels (i.e., telephone calls, in-person visits, email, mail and fax), an increase of 1.1 percent over 2005-06 5.5 million Internet visits to Canada Business Network websites (not including British Columbia)
Expected Result: Increased use of self-service channels
Performance Indicator	Result
Channel usage trends	5.5 million Internet visits to Canada Business Network websites
Expected Result: Reduced complexity in accessing programs and services and compliance requirements for SMEs
Performance Indicator	Results
Level of client satisfaction	In 2006-07, Canada Business conducted a client satisfaction survey of its 13 service centres: 83 percent expressed satisfaction with the overall quality of service 81 percent expressed satisfaction with service delivery 91 percent experienced no problems with services
Expected Result: Improved SME business planning and market research
Performance Indicators	Results
Level of client satisfaction Use of business support resources	In 2006-07, Canada Business conducted a client satisfaction survey of its 13 service centres: 83 percent expressed satisfaction with the overall quality of service 81 percent expressed satisfaction with service delivery 91 percent experienced no problems with services 41,996 new business plans created

Sub-Program Activity: Student Connections
Increased knowledge and use of Internet and e-commerce by Canadian SMEs and seniors, and increased youth knowledge, skills and marketability for employment
Expected Result: Increased knowledge and skills related to the Internet and e-commerce applications and technologies on the part of SMEs and seniors
Performance Indicator	Result
Client perceptions of increased knowledge and skills	78 percent reported that they received practical instruction that improved their use of information technology.
Expected Result: Practical, short-term work experience for students in post-secondary IT-related studies
Performance Indicator	Result
Number of youth hired	399 youth hired

 

Program Activity: Industry Sector – Economic Development

Sub-Program Activity: Manufacturing Industries Branch
Development of initiatives to support global competitiveness and sustainable economic growth in priority manufacturing sectors
Expected Result: Enhance international competitiveness and production of established industries (e.g., apparel and textiles, softwood lumber, plastics and chemicals)
Performance Indicators	Results
Number of market opportunities pursued for Canadian companies	600 market opportunities pursued 4 key trade events in the European Union and 2 in the United States to promote Canadian wood products and capabilities
Number of initiatives launched into key export markets	12 initiatives launched in key export markets Promotion of 45 chemical and plastics companies at 3 trade events
Sub-Sub-Program Activity: Canadian Apparel and Textile Industries Program
Expected Result: Increased competitiveness of Canadian apparel and textile firms
Performance Indicator	Result
Dollar value of contribution agreements	$7,353 million

Sub-Program Activity: Energy and Environmental Industries Branch
Development of initiatives to support global competitiveness and sustainable economic growth in priority energy sectors and environmental industries
Expected Result: Competitiveness and growth in mature energy and environmental industries
Performance Indicator	Results
Sales by Canadian firms as a percentage share of world markets: equipment and services in electric power, oil and gas, and environmental industries	Environmental product share is stable at $4.1 billion – fifth in United States market Total exports: Electrical equipment: $2,803 million Mining and oil and gas machinery manufacturing: $1,404 million Nuclear equipment: $37.65 million
Expected Result: Capabilities of Canadian companies promoted to international markets
Performance Indicator	Result
Number of market development opportunities pursued by Canadian firms	Number of development opportunities pursued by Canadian firms in the area of the environment: 2 missions and 25 companies, with a program in each city, including information and networking sessions, and bilateral meetings
Sub-Sub-Program Activity: Border Air Quality Strategy
The Border Air Quality Strategy is a bilateral initiative to improve coordinated air quality management in Canada and the United States, and to advance Canada's 10-year Clean Air Agenda. Industry Canada and Natural Resources Canada are partners in the Canada-United States Emissions Cap and Trading Feasibility Study for a nitrogen oxides and sulphur dioxide cap and trade system, headed by Environment Canada and the U.S. Environmental Protection Agency.
Expected Result: Evaluation of program elements necessary in a joint Canada-United States nitrogen oxides and sulphur dioxide cap and trade program
Performance Indicator	Result
Evaluation study	Canada-U.S. Emissions Cap and Trading Feasibility Study published
Expected Result: Contribution to research on the economic and technical feasibility of an emissions trading system
Performance Indicator	Result
Availability of research	No research undertaken

Sub-Program Activity: Service Industries Branch
Development of initiatives that support global competitiveness and sustainable economic growth in priority service industries and service-related emerging technologies
Expected Result: Competitiveness and growth in service industries (e.g., retail, logistics, professional services, language industries)
Performance Indicators	Results
Number of market development and trade opportunities for Canadian firms	Three market development and trade opportunities
Service industries strategy developed and validated with key stakeholders	Strategy developed and consulted on relevant sections with key stakeholders
Expected Result: Increased collaboration on tourism industry issues among federal, provincial and territorial governments
Performance Indicator	Result
Tourism strategy developed and validated with key stakeholders	National Tourism Strategy Framework approved by federal/provincial/territorial tourism ministers
Expected Result: Increased awareness by stakeholders of policies that affect the growth of the tourism industry
Performance Indicators	Results
Number of meetings and conferences with federal/provincial/territorial stakeholders	3 meetings and conferences with federal/provincial/territorial stakeholders
Number of contacts developed within the federal government	20 departmental contacts
Expected Result: Increased awareness of opportunities for Canadian firms in domestic and global marketplaces via SourceCAN
Performance Indicators	Results
Number of business opportunities sent to Canadian companies	949,895 business opportunities
Number of partners providing bidding opportunities	48 partners
Number of successful Canadian company bids	72,128 registered SourceCAN clients
Sub-Sub-Program Activity: Language Industry Initiative (LII)
Fostering of cooperation with the private sector to build a strong, competitive industry; support for firms wishing to undertake marketing and branding activities
Expected Result: Steering Committee / LII Operations Group – clear strategic direction
Performance Indicators	Results
Directions and conditions are clear and well understood	The Steering Committee met to identify and clarify industry directions
Strategic direction document reviewed and validated with key stakeholders (consensus)	The strategic direction document was reviewed and validated with key stakeholders
Expected Result: Marketing strategies – identifying national and international market opportunities
Performance Indicator	Results
Complete national and international language industries macro-economics information, including number of jobs, number of firms, firm revenues, level of international business (dollar amount); level of competition	Published two market studies on language training Economic Assessment of the Canadian Language Industry study
Expected Result: Increased awareness by language industries of national and international market opportunities
Performance Indicators	Results
Level of use of government programs for language industries (demands, number of projects)	Approved 53 industry awareness-building activities – a total commitment of approximately $450,000
Number and description of requests for participation in national and international trade promotion events (fairs, shows, missions, etc.)	12 requests for national and international conferences and trade shows
Comparative number of participation (baseline versus language industry program)	Number of projects approved decreased by 30 percent; total funds committed decreased by 23 percent from previous year
Expected Result: Increased awareness of language industries by target audiences
Performance Indicators	Results
Level of knowledge of language industries by students and potential customers	Partnered with the Canadian Manufacturers & Exporters to conduct a survey on business benefits of using the language industry
Level of awareness of language industries promotional information on the part of students and potential customers	Partnered in three educational fairs Established a language portal
Expected Result: Increased awareness (knowledge) of Canadian language industries by Canadian representatives abroad
Performance Indicator	Result
Level of awareness (knowledge) of Canadian language industries on the part of Canadian representatives abroad	Language training market studies in Germany, Switzerland and Czech Republic

Sub-Program Activity: Aerospace, Defence and Marine Branch
Development of initiatives that support global competitiveness and sustainable economic growth in aerospace, defence and marine sectors and aerospace and marine-related emerging technologies
Expected Result: Competitiveness and growth of the aerospace, defence and space industries
Performance Indicators	Results
Number of companies receiving benefits from government procurements	450 companies with benefits
Dollar value of opportunities pursued on major platforms and programs	$2.13 billion in opportunities
Dollar value of transactions that improved the Canadian industrial base capabilities	$425 million in transactions
Dollar value of specific product investment in Canada through Inshore Rescue Boat Program	Data not available. Industry Canada's Aerospace, Defence and Marine Branch was not involved in the activities of the Inshore Rescue Boat Program. Therefore, results were not tracked, since it was determined that they are not at all attributable to the work of the Department.
Expected Result: Capabilities of Canadian companies promoted to international markets
Performance Indicators	Results
Number of Canadian companies attending trade shows	110 companies attended Farnborough 16 companies attended Eurosatory 12 companies attended Maintenance, Repair and Overhaul
Number of companies registered in Canadian Company Capabilities database	Aerospace: 648; defence: 601; space: 269; marine: 552 (86 shipbuilding, 466 ocean technology)
Number and dollar value of contracts under the Joint Strike Fighter program	Over $200 million in contracts to more than 60 companies under the Joint Strike Fighter program
Expected Result: Competitiveness and growth in mature marine industries
Performance Indicators	Results
Number of contacts between Canadian suppliers and foreign buyers initiated by Industry Canada (as reported through follow-up inquiries)	200 contacts
Amount of Shipbuilding and Industrial Marine Advisory Committee (SIMAC) stakeholder involvement in policy development (number of committee and sub-committee meetings, number of discussion papers and presentations developed by SIMAC)	None
Sub-Sub-Program Activity: Structured Financing Facility (SFF)
Stimulate economic activities in the Canadian shipbuilding and industrial marine industry by providing financial assistance to buyers/lessees of Canadian-built ships
Expected Result: Increased awareness and knowledge of SFF benefits
Performance Indicators	Results
Hits on website	29,224 total hits
Number of information packages, pamphlets or brochures used	300 brochures distributed 43 information packages distributed
Expected Result: Increased use of SFF by Canadian and foreign buyers or lessees
Performance Indicators	Results
Statistics/trends of SFF (Internal Revenue Service, Citizenship and Immigration Canada, and Canadian Industry Statistic) usage	5 projects approved
SFF usage trends by Canadian and foreign buyers or lessees	No lessees; 86 percent of projects in foreign shipyards (56 percent SFF)
Actual SFF disbursements for contracts completed in current year, and resulting sales and employment in Canadian shipyards	7 projects: $9.7 million of disbursements; $75 million of shipyard sales; 550 person-years of employment
Expected SFF disbursements for projects contracted in current year, and expected sales and employment that will result for Canadian shipyards	4 projects: 2 complete; $1 million disbursements; $7.4 million shipyard sales; 100 person-years of employment

Sub-Program Activity: Life Sciences Branch – Economic Development
Analysis and advice that supports global competitiveness and sustainable economic growth in the life sciences sector
Expected Result: Promotion of life sciences industry to international trade and investment targets in the United States, Europe and Asia
Performance Indicators	Results
Number of life-science-related events with Canadian presence supported by Life Sciences Branch	17 life-science-related events
Number of Canadian life-science-related missions supported by Life Sciences Branch	6 Canadian life-science-related missions
Number of Canadian life-science-related promotional documents published by Life Sciences Branch and distributed internationally	6 investment and trade documents produced 5,900 documents distributed globally
Level of awareness among international business clients of Canada's capabilities in the life sciences sector	Canadian life sciences briefs translated into 3 languages, distributed to 35 posts and redistributed by post BIO 2006: 70 percent surveyed viewed the Canadian Pavilion as attractive and visible; 68 percent stated it was recognizably Canadian; and 39 percent anticipated beginning new business relationships with a Canadian firm or organization.
Number of visitors on Life Sciences Branch's life sciences promotional websites	58,033 visitors
Expected Result: Increased exports in Canada's life sciences sector
Performance Indicator	Results
Export levels in life sciences industries	Canadian life sciences total exports: $8.2 billion (2006) Canadian pharmaceutical exports: $5 billion (2006) Canadian medical devices exports: $2.5 billion (2006) Canadian biotechnology exports: $770 million (2005)
Expected Result: Increased international investment in Canada's life sciences industries
Performance Indicator	Results
Foreign direct investment in life sciences industries	Sanofi Pasteur, the pharmaceutical company, invested C$30 million in the expansion of its manufacturing site in Toronto, Ontario. Gilead Sciences purchased, for €115 million, the Degussa operation in Edmonton for the manufacture of the active ingredients in the world's most popular HIV/AIDS drug. On August 15, 2006, Boehringer Ingelheim (Canada) invested $36 million in the expansion of its R&D centre in Laval, Quebec. Forty new jobs will be created.

Sub-Program Activity: Industrial Analysis and Sector Services Branch – Economic Development
Support for the development of policies, programs and initiatives for priority sectors and emerging technologies, by undertaking policy analysis and research on trade, investment and regulatory issues
Expected Result: Increased profile of industrial issues and policies involved in making Canadian industries more competitive and Canadian communities more sustainable
Performance Indicators	Results
Sectoral reports and Memoranda to Cabinet	Sectoral reports: Industrial Intelligence Profiles developed for 12 sectors 2 Memoranda to Cabinet
Number of policy recommendations made to senior officials of Industry Canada	3 issues of INSIGHT Survey of Manufacturing issues 52 issues of 20/20 21 other policy recommendations

Sub-Program Activity: Automotive and Industrial Materials Branch – Economic Development
Development of initiatives that support global competitiveness and sustainable economic growth in aerospace, defence and automotive sectors and aerospace and automotive-related emerging technologies
Expected Result: Competitiveness and growth of the automotive and industrial materials industries
Performance Indicators	Results
Number of industrial policy recommendations developed and adopted in support of the competitiveness and growth of the automotive and industrial materials industries (e.g., number of Memoranda to Cabinet, policy papers)	Automotive Trade Policy – participated in South Korea Free Trade Agreement negotiations, provided input into Foreign Affairs and International Trade Canada Memoranda to Cabinet and negotiating mandate Automotive: Provided input into government response to the House of Commons Standing Committee on Industry, Science and Technology (INDU) recommendations Automotive: Provided input into the development of the government's approach to regulating fuel consumption – Memoranda to Cabinet developed by Transport Canada and Environment Canada on environmental issues related to the auto industry Automotive: Input to Natural Resources Canada Memoranda to Cabinet on technology support programs
Number of trade and investment strategies developed and implemented	Automotive: Developed a trade and investment strategy and sub-strategies related to missions; out-calls and partnering events to increase supply opportunities for Canadian manufacturers and secure Canadian access to international markets; retain existing manufacturing investments and renew product mandates in Canada; attract new capital investment; and promote automotive R&D, technological innovation and partnerships.
Dollar value of exports and related outcomes resulting from missions, company visits, trade fairs and investment promotion events	Data not available
Dollar value of foreign direct investment and domestic investments and reinvestments in automotive and industrial materials industries	$3.6 billion
Number of responses given by branch in support of technology development / R&D by other federal government departments and agencies (e.g., TPC)	8 responses to Technology Partnerships Canada $450 million to $500 million to leverage close to $7.5 billion in company investments

Program Activity: Spectrum, Information Technologies and Telecommunications Sector – Economic Development

Sub-Program Activity: Information and Communications Technologies Branch
Improvement in the competitiveness and fostering of growth of the Canadian ICT industry
Expected Result: Broad understanding of developments that affect sector growth in order to identify issues, gaps and opportunities for the ICT sector, to support directions for business development and policy activities
Performance Indicator	Results
Assessments/studies of ICT sector and sub-sector growth	A suite of 6 ICT statistical reports A report on telecom wireless equipment industry Vertical market profiles e-health, e-security and e-gaming More than 30 firm-level profiles Global ICT Market Opportunity market reports
Expected Result: Informed advocacy for ICT stakeholder issues to influence government decisions on issues affecting the ICT industry
Performance Indicator	Result
Number of issues addressed in policy forums and meetings with industry stakeholders	14 core issues, 109 meetings, forums, wide cross-section of sector reports. Over 12 months: renewal of CANARIE (Memoranda to Cabinet), input into S&T, research and commercialization, microsystems, Precarn
Expected Result: Increased business opportunities for the Canadian ICT sector
Performance Indicators	Results
Number of corporate calls on investment targets	42 aftercare/prospecting corporate calls and 31 investment calls
Client satisfaction rates at business development events	90 percent client satisfaction
Number of sales leads for Canadian companies	Over 533 sales leads generated

Sub-Program Activity: Information Highway Applications Branch
Acceleration of the participation of Canadians and their communities in the digital economy by fostering community networks and improving both access to, and use of, ICTs for lifelong learning and economic development
Expected Result: Assisting Canadian individuals and communities in overcoming barriers to access and use of ICTs
Performance Indicators	Results
Number of Canadians and communities accessing and using ICTs via broadband	3,578 (55 percent) of a total of 6,470 Canadian communities (as defined by the Broadband office) were served with high-speed access.
Level of Internet use by francophones	The Centre francophone d'informatisation des organisations reports that 72 percent of the Quebec population regularly uses the Internet. Data on use by the minority francophone communities will be available from Statistics Canada beginning in December 2007.
Sub-Sub-Program Activity: Broadband for Rural and Northern Development Pilot Program
Ensures Canadian communities and businesses have access to reliable, modern ICT infrastructure by bringing broadband, or high-capacity, Internet to rural, remote Northern and First Nations communities
Expected Result: Access by Canadian communities and businesses to reliable, modern ICT infrastructure by bringing broadband, or high-capacity, Internet to rural, remote, Northern and First Nations communities
Performance Indicator	Result
Number of communities served by broadband in Canada as a result of the program	The Broadband Pilot Program will be responsible for connecting 875 communities over the life of the program (14 percent of all communities), of which 540 communities were connected during 2006-07.
Sub-Sub-Program Activity: Francommunautés virtuelles
Aims to promote the active participation of Canada's French-speaking communities in ICTs to stimulate connectivity, access to the Internet, and the development of content and new media in French
Expected Result: Improved access to French-language web applications, content and services on the part of Canada's Francophone and Acadian populations
Performance Indicator	Result
Level of Internet use among francophone population	The Centre francophone d'informatisation des organisations reports that 72 percent of the Quebec population regularly uses the Internet. Data on use by the minority francophone communities will be available from Statistics Canada beginning in December 2007.
Sub-Sub-Program Activity: National Satellite Initiative (NSI)
Ensures Canadian communities and businesses have access to reliable, modern ICT infrastructure by bringing high-capacity Internet to communities in the Far North and Mid-North, and in isolated or remote areas of Canada, where satellite is the only reasonable means of connecting public institutions, residents and businesses
Expected Result: Access by Canadian communities and businesses to reliable, modern ICT infrastructure by bringing high-capacity Internet to communities in the Far North and Mid-North, and in isolated or remote areas of Canada, via satellite
Performance Indicator	Result
Number of communities able to access high-capacity Internet as a result of the National Satellite Initiative	Since the initiative's launch, 91 communities have obtained some level of broadband service with assistance from NSI. Of these, 51 were connected during 2006-07.

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