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As Canada’s economy shows continued signs of growth following the global recession, the Harper government has a clear vision for Canada. We remain focused on creating jobs and economic growth in all regions of Canada. We remain committed to fighting protectionism, the number one impediment to global economic recovery. And we remain dedicated to supporting science, technology and innovation to improve the quality of life of Canadians.
In the coming year, Industry Canada and its Portfolio partners will seize the opportunities stemming from the evolving global economy. We will set the conditions for industrial success by improving policies we put in place, making strategic investments, and supporting business-focused programs and services. We are working to remove impediments to competition and to create the best climate for international investment. Industry Canada will lead efforts to develop major policy initiatives in support of Canada’s digital economy and to shape a whole-of-government strategy for federal tourism activities. The Department will also improve the cost-effectiveness and efficiency of its own operations and will work with recovering industries and sectors to help ensure a solid and prosperous future.
And, as always, I will work with my colleagues, the private sector and other governments to create the fundamentals for a strong and competitive economy.
It is my pleasure to present this year’s Report on Plans and Priorities for Industry Canada and its Portfolio partners.
Christian Paradis
Minister of Industry and Minister of State (Agriculture)
Industry Canada’s mission is to foster a growing, competitive, knowledge-based Canadian economy.
The Department works with Canadians throughout the economy, and in all parts of the country, to improve conditions for investment, improve Canada’s innovation performance, increase Canada’s share of global trade and build an efficient and competitive marketplace.
Industry Canada’s mandate is to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians.
The many and varied activities Industry Canada carries out to deliver on its mandate are organized around three interdependent and mutually reinforcing strategic outcomes. Each outcome is linked to a separate key strategy, as outlined below. The key strategies are shown the figure below.
Advancing the marketplace
Industry Canada fosters competitiveness by developing and administering economic framework policies that promote competition and innovation; support investment and entrepreneurial activity; and instill consumer, investor and business confidence.
Fostering the knowledge-based economy
Industry Canada invests in science and technology to generate knowledge and equip Canadians with the skills and training they need to compete and prosper in the global knowledge-based economy. These investments help ensure that discoveries and breakthroughs happen here in Canada and that Canadians can realize the social and economic benefits.
Supporting business
Industry Canada encourages business innovation and productivity because businesses are the organizations that generate jobs and wealth creation. Promoting economic development in communities encourages the development of skills, ideas and opportunities across the country.
Under its founding legislation, the Department of Industry Act, Industry Canada is mandated not only to foster a growing, competitive, knowledge-based Canadian economy but also to promote sustainable development.
Industry Canada works on a broad range of matters related to industry and technology, trade and commerce, science, consumer affairs, corporations and corporate securities, competition, trade measurement, bankruptcy and insolvency, intellectual property, investment, small business, and tourism. Industry Canada is the Government of Canada’s centre of microeconomic policy expertise. The Department is composed of many organizational entities that have distinct mandates and diverse program activities, which are highly dependent on partnerships.
Industry Canada is a participant in the Federal Sustainable Development Strategy (FSDS). The FSDS, with its inclusion of environmental sustainability and strategic environmental assessment as an integral part of government decision-making processes, represents a major step forward for the Government of Canada. Industry Canada’s contributions to the FSDS are presented in sections 2, 3 and 4 of this report.
Complete details on Industry Canada’s sustainable development activities are available on the Environment and Sustainability subsite of the departmental website. Industry Canada’s Greening Government Operations table, one of the supplementary information tables itemized in Section 3 of this report, is available on the Treasury Board of Canada Secretariat website. For complete details on the FSDS, please see the Environment Canada website.
The following icons, which correspond to the four environmental sustainability themes of the FSDS, will be used throughout this report to identify the departmental activities that support the FSDS.
Theme I: Addressing Climate Change and Air Quality
Theme II: Maintaining Water Quality and Availability
Theme III: Protecting Nature
Theme IV: Shrinking the Environmental Footprint – Beginning with Government
This Report on Plans and Priorities is aligned with Industry Canada’s Management, Resources and Results Structure (MRRS). The MRRS provides a standard basis for reporting to parliamentarians and Canadians on the alignment of resources, program activities and results.
Industry Canada’s Program Activity Architecture (PAA) is an inventory of all of its programs. The programs are depicted in a logical and hierarchical relationship to each other and to the strategic outcome to which they contribute. The PAA also provides a framework through which to clearly link financial and non-financial resources to each program activity.
2010–11 and 2011–12 PAA crosswalk
Over the past year, Industry Canada has made changes to its PAA to ensure that it remains a complete and accurate inventory of Industry Canada programs.
Industry Canada’s strategic outcomes are long-term, enduring benefits to the lives of Canadians; reflect the Department’s mandate and vision; and are linked to Government of Canada priorities and intended results. Two of Industry Canada’s strategic outcomes have been updated in 2011–12: The strategic outcome “Science and technology, knowledge, and innovation are effective drivers of a strong Canadian economy” has been changed to “Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy” and the strategic outcome “Competitive businesses are drivers of sustainable wealth creation” has been changed to “Canadian businesses and communities are competitive.” These changes were made to improve both measurability of the strategic outcomes and compliance with the MRRS instructions.
The Security and Prosperity Partnership of North America — Canadian Secretariat program activity has been removed because its funding expires on March 31, 2011, and will not be renewed.
A number of programs that were previously administered by Industry Canada have been transferred to FedDev Ontario. These include the Eastern Ontario Development Program, the Canada–Ontario Municipal Rural Infrastructure Program, the Ontario Municipal Rural Infrastructure Top-Up Program, the Ontario Potable Water Program, the Brantford Greenwich–Mohawk Remediation Project, the Canada Strategic Infrastructure Program and the Building Canada Program.
The structure of the PAA has been significantly streamlined in an effort to ensure its program activities and program subactivities appropriately reflect the programs and not the activities performed as part of a program. A result of this streamlining is that the 2011–12 PAA no longer contains any program sub-subactivities, thereby reducing the amount of overlap between the outcomes at different levels of the PAA. It also tells a more concise and clear performance story and reduces the repetition of performance data contained in the Performance Measurement Framework.
A number of programs were renamed and a number of program descriptions modified to reflect program changes or improve compliance with the MRRS instructions.
Legend:
Theme I: Theme I: Addressing Climate Change and Air Quality
Theme IV: Shrinking the Environmental Footprint – Beginning with Government
The following two tables present Industry Canada’s financial resources and human resources, expressed as full-time equivalents (FTE), for the next three fiscal years.
2011–12 | 2012–13 | 2013–14 |
---|---|---|
1,407.5** | 1,425.7 | 1,147.1*** |
* Minor differences are due to rounding.
2011–12** | 2012–13** | 2013–14 |
---|---|---|
5,649 | 5,622 | 5,633> |
Performance Indicators | Targets |
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Program Activity | Forecast Spending 2010–11 |
Planned Spending ($ millions)* |
Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2011–12 | 2012–13 | 2013–14 | |||
Marketplace Frameworks and Regulations | 68.0 | 58.3 | 56.3 | 62.0 | Economic Affairs: A Fair and Secure Marketplace |
Spectrum,Telecommunications and the Online Economy | 90.8 | 87.7 | 86.3 | 86.2 | Economic Affairs: A Fair and Secure Marketplace |
Consumer Affairs | 4.7 | 4.6 | 4.6 | 4.6 | Economic Affairs: A Fair and Secure Marketplace |
Competition Law Enforcement | 46.9 | 47.7 | 48.8 | 48.8 | Economic Affairs: A Fair and Secure Marketplace |
Total Planned Spending | 198.3 | 196.0 | 201.7 |
* Minor differences are due to rounding.
Performance Indicators | Targets |
---|---|
|
|
|
|
|
|
Program Activity | Forecast Spending 2010–11 |
Planned Spending ($ millions)* |
Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2011–12 | 2012–13 | 2013–14 | |||
Science, Technology and Innovation Capacity1 | 1,309.4 | 265.7 | 326.4 | 200.8 | Economic Affairs: An Innovative and Knowledge-based Economy |
Information and Communication Technologies Research and Innovation | 43.6 | 38.2 | 37.5 | 37.5 | Economic Affairs: An Innovative and Knowledge-based Economy |
Research and Development Financing2 | 358.6 | 431.9 | 462.6 | 323.3 | Economic Affairs: An Innovative and Knowledge-based Economy |
Total Planned Spending | 735.8 | 826.4 | 561.6 |
* Minor differences are due to rounding.
Performance Indicators | Targets |
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Program Activity | Forecast Spending 2010–11 |
Planned Spending ($ millions)* |
Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2011–12 | 2012–13 | 2013–14 | |||
Small Business Research, Advocacy and Services | 140.0 | 128.6 | 127.4 | 124.4 | Economic Affairs: Strong Economic Growth |
Industrial Competitiveness and Capacity1 | 89.6 | 47.1 | 56.1 | 51.1 | Economic Affairs: Strong Economic Growth |
Community Economic Development2 | 212.8 | 154.0 | 92.7 | 83.7 | Economic Affairs: Strong Economic Growth |
Security and Prosperity Partnership of North America — Canadian Secretariat3 | 2.2 | — | — | — | |
Total Planned Spending | 329.8 | 276.2 | 259.2 |
* Minor differences are due to rounding.
Program Activity | Forecast Spending 2010–11 |
Planned Spending ($ millions)* | ||
---|---|---|---|---|
2011–12 | 2012–13 | 2013–14 | ||
Internal Services1 | 169.3 | 143.6 | 127.1 | 124.6 |
* Minor differences are due to rounding.
Operational Priority: Ensure marketplace policies help promote competition and instill consumer and investor confidence |
Type:1 Ongoing |
Strategic Outcome: The Canadian marketplace is efficient and competitive |
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Why this is a priority
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||
Plans for meeting the priority
|
Operational Priority: Foster business innovation |
Type: Ongoing |
Strategic Outcome: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy |
---|---|---|
Why this is a priority
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||
Plans for meeting the priority
|
Operational Priority: Invest in science and technology (S&T) to enhance the generation and commercialization of knowledge |
Type: Ongoing |
Strategic Outcome: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy |
---|---|---|
Why this is a priority
|
||
Plans for meeting the priority
|
Operational Priority: Foster internationally competitive businesses and industries |
Type: Ongoing |
Strategic Outcome: Canadian businesses and communities are competitive |
---|---|---|
Why this is a priority
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Plans for meeting the priority
|
Operational Priority: Promote business growth, entrepreneurship and community development |
Type: Ongoing |
Strategic Outcome: Canadian businesses and communities are competitive |
---|---|---|
Why this is a priority
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Plans for meeting the priority
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Management Priority: People management |
Type:* Ongoing |
Strategic Outcome: All strategic outcomes |
---|---|---|
Why this is a priority
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Plans for meeting the priority
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Management Priority: Financial management |
Type: Ongoing |
Strategic Outcome: All strategic outcomes |
---|---|---|
Why this is a priority
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||
Plans for meeting the priority
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Management Priority: Internal audit |
Type: Ongoing |
Strategic Outcome: All strategic outcomes |
---|---|---|
Why this is a priority
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Plans for meeting the priority
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Management Priority: Management of business communication tools |
Type: New |
Strategic Outcome: All strategic outcomes |
---|---|---|
Why this is a priority
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||
Plans for meeting the priority
|
Management Priority: Asset and materiel management |
Type: New |
Strategic Outcome: All strategic outcomes |
---|---|---|
Why this is a priority
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Plans for meeting the priority
|
Over the past year, Canada has recovered rapidly from the recession. Close to 400,000 jobs have been created since July 2009 — the strongest job growth in the G7 — and the economy has grown for five straight quarters. The unemployment rate has been declining, as economic growth and job creation are being buoyed by strong commodity prices, more sustained private sector demand, rising exports, increased business investment, and timely and strategic investments under Canada's Economic Action Plan. While Canada's medium-term growth prospects are healthy, there remains some uncertainty about the trajectory of the broader global economic recovery, which may lead to a moderation in Canada's growth outlook.
Rising commodity prices are supporting several resource-based industries, while the improved U.S. economic outlook is benefitting various export sectors. Private business investment is growing rapidly as firms take advantage of the strong dollar to import more productivity-enhancing machinery and equipment.
The Canadian economy faces several risks. The strong Canadian dollar and high household debt could constrain the growth of non-resource-related industries and private consumption, respectively. Global risks include weak domestic demand in most advanced economies, inflation in emerging economies, global trade imbalances and uncertainty in European sovereign debt markets. Risks related to global trade barriers and to government currency manipulation persist, despite progress by some countries in reducing investment restrictions and advancing trade negotiations.
Over the medium to long term, the Canadian economy will face pressures from an aging population and the changing global economic environment unless productivity improvements can make up for Canada's slowing labour force growth.
In addition, Canadian industries will be challenged to respond to intensifying global competition, the demand for new goods and services, and environmental and sustainability considerations. Industries will face pressure to expand their global reach, integrate into global supply chains and adopt cutting-edge new technologies.
Overall, Industry Canada is well positioned to continue supporting Canadian businesses and industries by helping them understand and exploit the changing global economic landscape; by promoting skills development and sector-specific knowledge growth; and by fostering business innovation, competitiveness and productivity.
Through the implementation of a tailored integrated risk management approach, Industry Canada has taken steps to proactively address some of the key risks that may impede the Department’s overall ability to deliver on its mandate. This approach meets the Department’s needs for sound risk management and allows it to monitor the mitigation strategies and action plans for its corporate risks. In 2011–12, Industry Canada will also continue to implement strong governance, oversight and risk management practices. The following table presents Industry Canada’s corporate risks and associated challenges and their alignment to departmental priorities. Highlights of program-specific risks and mitigation actions are presented in Section 2 of this report.
Corporate Risks and Challenges* | Highlights of Alignment to Departmental Priorities** |
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Fully advancing a regulatory and policy framework that will ensure the continued evolution of telecommunications and wireless infrastructure | This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; and investing in science and technology to enhance the generation and commercialization of knowledge. |
Managing expectations and maintaining Industry Canada’s reputation among stakeholder groups, the public and the media | This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; investing in science and technology to enhance the generation and commercialization of knowledge; fostering internationally competitive businesses and industries; and promoting business growth, entrepreneurship and community development. |
Meeting the shifting and emerging priorities and demands of the recovering economy may affect Industry Canada’s ability to support program delivery and meet departmental and government priorities | This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; investing in science and technology to enhance the generation and commercialization of knowledge; fostering internationally competitive businesses and industries; and promoting business growth, entrepreneurship and community development. |
Responding to the current global economic environment and its shifting economic drivers may affect Industry Canada’s ability to appropriately support key stakeholders in their investment and innovation capacity and their ability to leverage leading-edge research and S&T discoveries | This aligns with Industry Canada’s operational priorities related to fostering business innovation and investing in science and technology to enhance entrepreneurship, community development, and the generation and commercialization of knowledge. |
Industry Canada will continue to update its Corporate Risk Profile as well as identify, monitor and mitigate corporate risks that may affect the Department’s ability to achieve its expected results and deliver its mandate.
Industry Canada underwent a strategic review in 2010–11. The strategic review process requires departments and agencies to review 100 percent of their programs with a view to better focusing programs and services, streamlining internal operations and transforming the way they do business, and achieving better results for Canadians. Through this process, organizations identify opportunities to redirect funding to other programs that meet the priorities of the government and Canadians. Results of the strategic review were unavailable at the time this report was produced; however, an overview of the results is included in Budget 2011. Industry Canada’s 2010–11 Departmental Performance Report will elaborate on the results of the strategic review.
In Budget 2009: Canada’s Economic Action Plan, the Government of Canada announced a set of initiatives aimed at providing a quick recovery from the economic downturn and ensuring long-term economic growth and prosperity for Canadian businesses and individuals. These initiatives were to be implemented over a two-year time frame ending on March 31, 2011. This resulted in a temporary increase in Industry Canada’s spending for 2009–10 and 2010–11.
On December 2, 2010, the Government of Canada announced that the deadline for completing infrastructure projects under Canada’s Economic Action Plan would be extended from March 31, 2011, to October 31, 2011. The Knowledge Infrastructure Program is the only Industry Canada program affected by this announcement.
Industry Canada’s total planned spending for 2011–12 is $1.41 billion. The majority of planned spending is directed at Industry Canada’s three strategic outcomes, with a cost-effective 10 percent being allocated to Internal Services.
Industry Canada will continue to implement strategies to ensure efficient use of its operating budget to better deliver benefits to Canadians.
Breakdown of 2011–12 Planned Spending by Strategic Outcome ($ millions)
A focus on efficient, high-performing programs will allow Industry Canada to continue to effectively deliver its mandate, with a reduced operating budget, in the coming years and adapt to evolving government priorities. More than ever, the results of audits, evaluations and strategic reviews will be critical to planning, setting priorities and allocating resources.
The figure below illustrates Industry Canada’s spending trend from 2007–08 to 2013–14.
Spending Trend ($ millions)
The increase in spending in 2009–10 and 2010–11 was primarily related to Canada’s Economic Action Plan. The decrease in spending in 2013–14 is mainly related to the Automotive Innovation Fund, which is scheduled to end in 2012–13, as well as decreases in funding to the Bombardier CSeries program, the Strategic Aerospace and Defence Initiative and the Canada Foundation for Innovation.
For information on Industry Canada’s votes and statuatory expenditures, please see the 2011–12 Main Estimates on the Treasury Board of Canada Secretariat website.