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Ministers' Message

We are proud to present the 2011-2012 Report on Plans and Priorities for the Department of Foreign Affairs and International Trade (DFAIT). This report provides a concise overview of Canada’s foreign affairs and international trade agenda for the coming year and identifies five operational priorities within this broad and diverse agenda.

First, given the economic challenges facing Canada and the world, we will seek to improve opportunities for Canadian companies abroad and increase foreign investment into Canada. We will focus our efforts on emerging markets such as China, India and Brazil, and work to conclude a Comprehensive Economic and Trade Agreement with the European Union as a priority within our trade negotiations agenda.

Second, DFAIT will reinforce an already strong Canada-United States relationship through cooperation on border management, trade and investment, energy and the environment.

Third, we will work with international partners to improve security in the Americas and support stability and reconstruction in Haiti.

Fourth, we will continue to make focused contributions to global security and governance, including to international efforts in Afghanistan led by the UN and NATO to strengthen security, stability and human rights.

Fifth, the department will implement the government’s 2010 Arctic Foreign Policy, including initiatives to resolve Arctic boundary issues and reinforce the capabilities of the Arctic Council.

In addition to achieving progress on these priorities, ongoing work will include initiatives to continue improving consular and passport services for Canadians traveling and working abroad.

For more details on the government’s international agenda and the department’s work we invite all Canadians to visit the DFAIT website.

Executive Summary

DFAIT developed its plans for fiscal year 2011-2012 in an environment of ongoing uncertainty in the global economy, combined with a complex set of international security and global governance issues. To address these challenges, the department has established more tightly focused priorities for the year ahead. In addition to delivering on these priorities, DFAIT will continue to play its role of ensuring overall integration of Canada's foreign and trade policy and coherence in Canada's diverse international engagements, a role that becomes both more important and more challenging in an increasingly complex international environment.

Contributing to Canadian Prosperity

Continued trade liberalization and improved market access are fundamental to Canada’s prosperity. DFAIT will continue to implement the Global Commerce Strategy with a priority focus on expanding Canada’s economic relationships with emerging markets such as China, India and Brazil. Progress will be made in the negotiation of bilateral free trade and investment agreements with these partners, including a Canada-India Comprehensive Economic Partnership Agreement and foreign investment promotion and protection agreements with both India and China. A strategic partnership dialogue will be launched with Brazil, and a high-level Canada-Brazil business council established.

The department will prioritize the conclusion of a Comprehensive Economic and Trade Agreement with the European Union, Canada’s second-largest trading partner. Bilateral and regional trade negotiations, including free trade agreements, foreign investment promotion and protection agreements and air services agreements will be pursued, and Canada’s multilateral trade interests represented under the Doha Development Agenda of the World Trade Organization.

DFAIT will enhance commercial opportunities for Canadian business and will continue to implement a sector-based approach to improve the alignment of the Trade Commissioner Service with the priorities and capabilities of Canadian business. It will strengthen science and technology partnerships, promote foreign direct investment and innovation in Canada, facilitate Canadian direct investment abroad and enhance the services it provides to Canadian business, including advice on global value chains and corporate social responsibility.

Supporting Global Governance and Security

Priority will continue to be given to contributing to international efforts, led by the UN and NATO, to leave Afghans a country that is better governed, more stable and secure, and no longer a safe haven for terrorists.

Promoting Canada’s interests in global governance, evolving summitry and renewed efforts to reform global institutions will remain a priority, including efforts to reform the United Nations Security Council and Human Rights Council.

A new priority will be to take steps, in follow-up to the G-8 Muskoka Declaration, to address emerging security challenges such as linkages between drug trafficking and terrorism. Contributions will also be made to support the stability of fragile and vulnerable states, in particular through capacity building. 

Regional and International Cooperation

DFAIT will reinforce Canada’s relationship with the United States, our most important economic and security partner, through support for a joint vision for perimeter security and initiatives to maintain market access for Canadian companies and attract U.S. direct investment into Canada. The department will work to conclude the negotiation of a modernized Great Lakes Water Quality Agreement with the United States.

The Americas remains a foreign policy priority for Canada. DFAIT will work closely with the United States, the European Union, Mexico and other Latin American partners to enhance security and build security-sector capacity in Mexico and Central America. It will continue to coordinate Canada’s whole-of-government engagement in Haiti and cooperate with international partners to address Haiti’s governance, security, stabilization and reconstruction.

Canada’s network of missions in Europe will undertake targeted diplomacy and advocacy to advance Canada’s Arctic Foreign Policy and increase support in key EU states for the conclusion of the Canada-EU Comprehensive Economic and Trade Agreement. An engagement strategy with Africa will be developed and implemented to reinforce relations with key states, as well as continental partners, such as the African Union.

In Asia, bilateral and multilateral engagement, and leveraging of regional partnerships such as the Association of Southeast Asian Nations (ASEAN), will be used to disrupt and deter human smuggling, to support democracy, human rights, and good governance, and to advance Canadian commercial interests.

The Middle East Peace Process will be supported by a fair-minded Canadian approach to Middle East peace issues, which respects Israel’s right to security and full participation in the multilateral system while providing political advocacy for a two-state solution.

The Arctic is fundamental to Canada’s national identity and represents tremendous potential for Canada’s future. Priority will be given to implementing Canada’s 2010 Arctic Foreign Policy, including efforts to resolve boundary issues, secure recognition for the full extent of Canada’s extended continental shelf, and strengthen the operations and policy role of the Arctic Council.

Consular and Passport Services for Canadians

The department will improve its ability to prepare Canadians for international travel through the provision of more up-to-date travel information and an enhanced consular website. It will increase its capacity to respond to events that generate large-scale demands for consular services with the completion of the new Emergency Watch and Response Centre in Ottawa and the establishment of a Regional Emergency Management Office in Asia. Passport Canada will continue to improve the high quality of service it provides Canadians. It will strengthen the integrity of passports, and it remains on track to launch the new e-passport in 2012-2013.

Canada’s International Platform

DFAIT will continue efforts to improve the efficiency and effectiveness of Canada’s international platform. Providing more than 300 points of service to Canadians, including 173 missions in 105 countries abroad and 18 regional offices in Canada, this network supports DFAIT and the international work of 31 federal departments and agencies, Crown corporations and provincial governments.

Resources and Management Priorities

To implement these plans, DFAIT will spend $3,040.4 million and draw upon human resources amounting to 13,453 full-time equivalents. This is down from $3,221.1 million in 2010-2011 due to a number of one-time spending initiatives in that year (see section 1.10 for details). A key priority for DFAIT management will be to address short-term financial sustainability challenges and strengthen corporate financial management systems. The department will also enhance the effectiveness of its business planning, including the alignment of resources to priorities and improved risk management practices.

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Section 1: Departmental Overview

1.1 Raison d’être and Responsibilities

DFAIT is responsible for the conduct of Canada's international affairs, including international trade and commerce. It advances Canada’s interests internationally, shapes Canada's responses to international issues and events, manages bilateral and multilateral relationships and delivers programs worldwide. It provides commercial, consular and passport services to Canadians at home and abroad and manages Canada’s global network of missions in 105 countries, which serves as the Government of Canada’s international platform.

The department's mandate is set out in the Department of Foreign Affairs and International Trade Act and can be summarized as follows:

• conduct all official diplomatic communications and negotiations between the Government of Canada and other countries and international organizations;

• coordinate Canada’s economic relations and promote Canadian international trade and commerce; and

• manage Canada’s diplomatic and consular missions and services abroad, including the administration of the Canadian Foreign Service.

To protect Canadians and advance Canada’s priorities, interests and leadership abroad, the department delivers programs in support of peace and security, democracy, human rights and the rule of law, and provides whole-of-government coordination and leadership in the case of international crises and natural disasters abroad.

DFAIT generates international opportunities for Canadian business by negotiating agreements to open and expand markets, facilitating two-way trade and investment, and encouraging innovation through international science and technology partnerships.

1.2 Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) integrates environmental sustainability and strategic environmental assessments into public policy decision making. DFAIT contributes to Theme 1 of the FSDS (Addressing Climate Change and Air Quality) by managing the government’s participation in international negotiations on climate change and coordinating related financial obligations.

DFAIT also contributes to Theme 4 of the FSDS (Shrinking the Environmental Footprint—Beginning with Government). See Section III, Table 3: Green Procurement. The department's Program Activity Architecture (PAA) has been appropriately tagged to represent DFAIT’s contribution to the FSDS.

For additional information on DFAIT’s activities in support of sustainable development please see the departmental website.

For complete details on FSDS goals, targets and implementation strategies, see the Environment Canada Federal Sustainable Development Strategy.

1.3 Strategic Outcomes and Program Activity Architecture (2011-2012)

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1.4 Program Activity Architecture Crosswalk

The following table illustrates adjustments that have been made this year to DFAIT's Program Activity Architecture (PAA) and presents planned spending for 2011-2012 against the previous as well as the new PAA.

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The following summarizes organizational and program-level changes, including:

SO 1: Canada’s International Agenda—The allocations within this SO were affected by the transfer of Foreign Service Directives (FSD) costs from this SO to PA 7 as part of their consolidation under revised PA 7.

SO 2: International Services for Canadians—The allocations within this SO were also affected due to the transfer of FSD costs to PA 7. Planned spending for Export Development Canada (Canada Account) was removed from PA 3. Program Activity 4 was renamed and two new sub-sub activities, Emergency Preparedness and Emergency Response, were added following the integration of emergency management and coordination into consular services.

SO 3: Canada’s International Platform—PA 6 and PA 7were deleted and their resources allocated to a new PA 6: Governance, Strategic Direction and Common Service Delivery; and PA 7: Government of Canada Benefits. Funds for Foreign Service Directives costs were consolidated under the new PA 7. PA 7 now includes two new sub-activities: Foreign Service Directives Payments and Employer Contributions to Locally Engaged Staff, reflecting the transfer of responsibilities for these payments from Treasury Board Secretariat (TBS) to DFAIT for fiscal year (FY) 2011-2012.

Internal Services: The variance in planned spending reflects movement of human resource costs from SO 3 into Internal Services in FY 2011-2012.

1.5 Planning Summary

The following tables provide a summary of the department’s financial and human resources and a breakdown of planned spending by program activity.

1.6 Total Financial and Human Resources Table

Financial Resources ($ millions)

2011–12	2012–13	2013–14
3,040.4	3,049.1	2,801.2

 

Human Resources (FTEs)

2011–12	2012–13	2013–14
13,453	13,098	13,168

Full-time equivalents (FTEs) are different from the number of staff the department has. One FTE is equivalent to one full-time worker, and an FTE of 0.5 is equivalent to one half-time worker.

1.7 Planning Summary Table

Strategic Outcome 1: Canada’s International Agenda

Performance Indicator	Targets
Percentage of international partners and institutions that recognize and support key Canadian positions	75%

Program Activity	Forecast Spending 2010–11	Planned Spending			Alignment to Government of Canada Outcomes
		2011–12	2012–13	2013–14
International Policy Advice and Integration	232.4	133.7	122.5	122.5	A Safe and Secure World
Diplomacy and Advocacy	1,413.9	1,193.8	1,190.1	1,054.9	A Safe and Secure World
Total SO 1	1,646.3	1,327.5	1,312.6	1,177.4

Strategic Outcome 2: International Services for Canadians

Performance Indicator	Targets
Percentage of clients who were satisfied with consular, passport and commerce services provided by the department	70%

Program Activity	Forecast Spending 2010–11	Planned Spending			Alignment to Government of Canada Outcomes
		2011–12	2012–13	2013–14
International Commerce	209.2	162.7	162.8		A Prosperous Canada
Consular Services and Emergency Management	70.2*	60.6	56.3	56.3	A Safe and Secure World
Passport Canada	315.1	329.1	382.6	294.5	A Safe and Secure World
Total SO 2	594.5	552.4	601.7	512.9

Strategic Outcome 3: Canada’s International Platform

Performance Indicator	Targets
Percentage of Government of Canada clients who responded favourably to the common services they received	75%
Percentage of maintenance work and modifications made to the mission network to meet the schedule prepared in accordance with Government of Canada interests	100%

Program Activity	Forecast Spending 2010–11	Planned Spending			Alignment to Government of Canada Outcomes
		2011–12	2012–13	2013–14
Governance, Strategic Direction and Common Service Delivery	303.2*	823.1	803.8	784.7	A Safe and Secure World
Government of Canada Benefits	545.5*	150.0	148.4	143.5	A Safe and Secure World
Total SO 3	848.7	973.1	952.2	928.2

Internal Services

Internal Service	Forecast Spending 2010–11	Planned Spending
		2011–12	2012–13	2013–14
	131.6	187.4	182.6	182.7

Total DFAIT Spending

Forecast Spending 2010–11	Planned Spending
	2011–12	2012–13	2013–14
3,221.1	3,040.4	3,049.1	2,801.2

Explanation of Changes in Spending from 2010-2011 Forecast Spending to 2011-2012 Planned Spending

International Policy Advice and Integration: Reductions largely due to the conclusion of G-8/ G-20 Summit operations ($85.2 million) and the consolidation of Foreign Service Directives costs under the new PA 7 ($9.5 million).

Diplomacy and Advocacy: Reductions mainly due to one-time funding in 2010-2011, including the AbitibiBowater NAFTA settlement ($130.7 million) and the Haiti earthquake ($17.2 million); sunsetting programs ($45 million); reductions in contributions to memberships in international organizations ($25.8 million); and consolidation of Foreign Service Directives costs in the new PA 7 ($15.4 million).

International Commerce: Reductions mostly due to the reallocation of the common services delivery funding portion of the Global Commerce Strategy funding to PA 6 ($26.4 million), the movement of the Investment Cooperation Program to PA 2 ($23 million) and the consolidation of Foreign Service Directives costs in the new PA 7 ($9.5 million).

Consular Services and Emergency Management: Reductions reflect the one-time funding in 2010-2011 for the response to the Haiti earthquake ($2.7 million) and the Emergency Watch and Response Centre ($2.6 million), as well as consolidation of Foreign Service Directives costs in PA 7 ($3.2 million).

Passport Canada: Changes mainly due to increased costs related to the implementation of the e-passport in 2011-2012 ($6.3 million) and increased operating costs ($7.7 million).

SO 3—Canada’s International Platform: Variance mainly due to an increase of $187.8 million in funding for FY 2011-2012 for the following: improved security at missions abroad ($39.6 million), the consolidation of Foreign Services Directives costs in the new PA 7 ($35.2 million), reallocation of the Global Commerce Strategy funding ($26.4) from PA 3, compensation for inflation abroad ($11.5 million), capital carry-forward ($18.8 million), changes in the Moscow chancery project ($19.1 million), the long-term accommodation strategy ($11.6 million), strengthening of Canada’s representation abroad ($11.9 million), funding for staff quarters in Kabul ($2.3 million), internal reallocations related to DFAIT's new business model ($9.4 million), and an increase in net voted authorities ($2.0 million). These increases were offset by a reduction ($63.3 million) related to the reallocation of human resource services costs to Internal Services ($31 million), one-time funding for the response to Haiti’s earthquake ($14.8 million) in 2010-2011 and the remaining variance relates to currency and other minor adjustments.

Internal Services: Changes mainly due to the reallocation of human resource services costs from SO 3 to Internal Services ($31 million) and transfers from the Geographic group ($4.2 million), Afghanistan Task Force ($2.3 million) and Corporate Secretariat ($2.2 million). Moreover, FY 2010-2011 costs were reduced by $12 million that was subsequently reallocated in 2011-2012 as reductions to other program activities.

1.8 Contribution of Priorities to Strategic Outcomes

This section lists the department’s priorities, shows how they link to strategic outcomes and identifies the most significant plans aligned with each priority.

Operational Priorities 2011-2012

1. Implement the Global Commerce Strategy with a particular focus on expanding Canada’s economic relationships with emerging markets and concluding negotiations with the European Union. Type: Ongoing. Aligned to SO 1 and 2.

Plans for meeting the priority:

1. Increase commercial engagement with China, India and Brazil.

2. Seek to conclude the Comprehensive Economic and Trade Agreement with the European Union in 2011.

Why this is a priority: Continued trade liberalization and improved access to new and traditional markets are fundamental to protecting and advancing Canada’s prosperity, competitiveness and innovation. A major component of the Global Commerce Strategy is to enhance Canada’s economic relationships with emerging economies, among which China, India and Brazil are key, given their size and dynamism. Concluding the Comprehensive Economic and Trade Agreement with the European Union will generate new economic opportunities with Canada’s second-largest trading partner, while also setting a key benchmark for high-quality trade agreements.

2. Reinforce the Canada-U.S. relationship through effective advocacy and collaboration in the areas of the border management, trade and investment and energy/environment. Type: Ongoing. Aligned to SO 1 and 2.

Plans for meeting the priority:

1. Support the implementation of the Canada-U.S. Shared Vision for Perimeter Security & Economic Competitiveness and the Canada-U.S. Regulatory Cooperation Council.

2. Implement a targeted program in the U.S. for the attraction of foreign direct investment in Canada, and defend against protectionist measures, including “Buy American” provisions, through enhanced advocacy initiatives and market access negotiations.

3. Execute a comprehensive oil sands advocacy strategy in the U.S. and conclude negotiations of a Great Lakes Water Quality Agreement.

Why this is a priority: The United States is Canada’s most important economic and security partner (see Canada-U.S. Relations). Canada’s security and prosperity are inextricably linked to effective management of the relationship with the United States on a range of bilateral, regional and global economic issues. In particular, DFAIT will continue to contribute to careful management of the shared border to ensure security in the face of new and emerging threats, without diminishing the competitiveness of integrated Canadian and U.S. businesses. DFAIT will also pursue activities under the Canada-U.S. Regulatory Cooperation Council to promote economic growth through increased regulatory transparency and coordination.

3. Contribute to effective global governance and international security and stability. Type: Ongoing. Aligned to SO 1.

Plans for meeting the priority:

1. Contribute to the ongoing international effort, led by the UN and NATO, to strengthen Afghanistan’s security, rule of law, human rights and regional stability.

2. Promote Canada’s interests in evolving summitry and renewed efforts to reform global institutions.

3. Contribute to addressing emerging security challenges such as linkages between drug trafficking and terrorism, in follow-up to the G-8 Muskoka Declaration.

Why this is a priority: Canada’s engagement in Afghanistan, following the end of Canada’s combat mission in 2011, remains a key Canadian contribution to global security and stability, in cooperation with the UN, NATO, G-8 and other international partners. DFAIT will also place priority on Canada’s commitment as part of the G-8 to address emerging security challenges. Canada will continue to advance its interests through contributions to the evolution of global governance.

4. Advance cooperation on security in the Americas, in particular with Mexico, Central America and Haiti. Type: New. Aligned to SO 1.

Plans for meeting the priority:

1. Coordinate the whole-of-government effort in Central America and Mexico to address security threats and institutional deficiencies using capacity-building expertise to support government and non-government institutions.

2. Collaborate with the U.S., the EU, Mexico and Latin American partners to enhance security and build capacity in Central America.

3. Coordinate a whole-of-government engagement in Haiti to strengthen governance, security, stability and reconstruction.

Why this is a priority: The Americas remain a foreign policy priority for Canada. Canada’s Americas Strategy focuses on three objectives: democratic governance, prosperity and security. Important progress has been made on the prosperity pillar of the strategy through trade liberalization. Security threats in the region, ranging from crime, violence and drugs to health epidemics and natural disasters, as well as emerging issues such as the links between international crime and terrorism, are leading to an enhanced focus on the security pillar of the strategy.

5. Implement Canada's foreign policy to exercise sovereignty in the Arctic. Type: New. Aligned to SO 1.

Plans for meeting the priority:

1. Seek to resolve boundary issues and secure international recognition for the full extent of Canada’s extended continental shelf.

2. Strengthen the operations and policy role of the Arctic Council, including negotiating a binding search and rescue agreement.

Why this is a priority: The Arctic is fundamental to Canada’s national identity, and represents tremendous potential for Canada’s future. Canada’s Arctic Foreign Policy, the international component of the government’s Northern Strategy, is founded on Canada’s vision of the Arctic as a stable, rules-based region with clearly defined boundaries, dynamic economic growth and trade, vibrant Northern communities, and healthy and productive ecosystems.

Management Priorities 2011-2012

1. Improve DFAIT’s planning, reporting and financial management. Type: New. Aligned to SO 1,2,3.

Plans for meeting the priority:

1. Continue to address the department's immediate financial sustainability issues and strengthen the overall financial management regime.

2. Enhance the effectiveness of business planning, including alignment of resources to priorities and improved risk management.

3. Prepare the department for future resource reviews in support of Government of Canada priorities.

Why this is a priority: Sound financial and human resources information and systems are critical to DFAIT’s ability to deliver its programs and services and achieve its strategic outcomes. Effective business planning and risk management are essential to delivering on the department’s priorities while ensuring sound stewardship of public resources.

1.9 Risk Analysis

As a federal department operating in a complex and rapidly changing world, DFAIT is exposed to a broad range of risks at home and abroad. Effective risk management is, therefore, critical to the department’s ability to deliver results for Canadians, and DFAIT has put in place mechanisms to systematically identify and manage its corporate risks. Risk management is also integrated into programs and projects on an ongoing basis. For FY 2011-2012, six strategic risks and related mitigation plans have been identified.

Challenges Related to Human Resources, Financial and Information Management

DFAIT will enhance its financial and human resource information and management systems to strengthen financial management. DFAIT will address challenges to the maintenance of corporate memory and the efficient management of its highly skilled workforce.

The department will also address the challenges posed by the rapid pace of technological change and the emergence of cyber threats. It will improve information management systems and work to ensure the reliability and security of government communications and information.

Capacity to Provide Services to Canadian Citizens and Protect Government Personnel and Assets in the Face of Emergencies

DFAIT continues to face challenges in providing services and support in the face of large-scale or multiple emergencies such as natural disasters or conflicts. Failure to promptly resume departmental operations following a crisis, or to provide services during an emergency, could compromise the security and safety of Canadian citizens, as well as government personnel and assets.

To address these risks, new security standards have been established and investments made to strengthen the security of missions abroad. Support to missions during emergencies will be improved by the creation of an Emergency Watch and Response Centre in Ottawa, as well as the establishment of a Regional Emergency Management Office in Asia. A rapid response roster will improve the department’s ability to deploy personnel to respond to crises. Additional resources will be devoted to emergency management training and business continuity planning.

Volatile Global Economic Conditions

Ongoing global economic risks could reduce DFAIT’s ability to facilitate trade opportunities for Canadian companies and promote foreign investment in Canada. Trade and financial protectionism abroad could also lead to trade disputes.

To mitigate these risks, the department will continue to implement the Global Commerce Strategy to expand Canada’s economic relationships, particularly in emerging markets. The department will maintain a strong advocacy campaign in the United States aimed at the resolution of trade barriers and collaboration on border management, trade and investment issues. It will also sustain Canadian engagement in the G-8, G-20, World Trade Organization, Organisation for Economic Co-operation and Development and Asia-Pacific Economic Cooperation forum on international economic, development and trade policy issues, including efforts to counter protectionism.

Erosion of Human and Knowledge Capital

Competition for skilled personnel, as well as changing demographics, will continue to present risks to DFAIT’s efforts to recruit and retain a qualified workforce. Gaps in the department’s human and knowledge capital could impede the achievement of DFAIT’s objectives and lead to a loss in reputation and credibility with key partners, clients and the Canadian public.

DFAIT is implementing an Integrated Human Resource Plan to manage these risks. This plan focuses on strengthening mission capacities through regular recruitment and promotion exercises and expanding career development opportunities to enhance human resource flexibility.

Risks Associated with Change

The department faces a number of risks associated with major change initiatives. Short time frames for implementation of changes, and gaps in training and systems, give rise to risks in the transition period that the mandate may not be delivered at expected levels of quality. 

In response to these challenges, a unit responsible for change management supports the implementation of change initiatives.

Challenges Related to External and Internal Communications

DFAIT’s communications environment is complex, given the department’s decentralized network of over 191 offices and missions at home and abroad. DFAIT’s audience is equally diverse, including foreign governments, international and non-governmental organizations, business and the Canadian public. The complexity of this environment could impede the consistency, timeliness and completeness of departmental communications.

Responding to these risks, DFAIT communications staff will ensure that clear parameters are provided for corporate communications. Greater emphasis will be placed on outreach to stakeholder communities, as well as proactive media monitoring and responses, to ensure that DFAIT’s audiences have timely and correct information on DFAIT policies and operations. Internally, efforts will be taken to ensure that employees have an accurate understanding of government and departmental priorities.

1.10 Expenditure Profile

Actual Spending ($ millions)			Forecast Spending ($ millions)	Planned Spending ($ millions)
2007-2008	2008-2009	2009-2010	2010-2011	2011-2012	2012-2013	2013-2014
2,210.6	2,499.6	2,516.9	3,221.1	3,040.4	3,049.1	2,801.2
Full-time equivalents (FTEs) are different from the number of staff the department has. One FTE is equivalent to one full-time worker, and an FTE of 0.5 is equivalent to one half-time worker.

The graph below shows the department's spending trend from FY 2007-2008 to FY 2013-2014. In FY 2011-2012, DFAIT is planning to spend $3,040.4 million. This includes the FY 2011-2012 budgetary appropriation of $2,569.6 million requested in the Main Estimates,¹ plus $92.7 million in new planned spending, $48.9 million of net voted revenue and $329.1 million for Passport Canada.² The amount for Passport Canada includes planned expenditures of $45.4 million and $283.7 million of net voted revenue. Starting in FY 2011-2012, Export Development Canada (Canada Account) will not be reported under DFAIT, but separately in the Main Estimates. Therefore, amounts in this report have been restated to remove EDC.

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The actual spending amounts for previous years include all parliamentary appropriations and revenue sources (i.e. Main Estimates, Supplementary Estimates, funding from TBS for collective bargaining and horizontal initiatives, and revenues from passport fees). For FY 2011-2012 to FY 2013-2014, DFAIT’s total planned spending corresponds to existing reference levels, plus funding for items approved by TBS after finalization of DFAIT’s 2011-2012 Main Estimates submission.

Given DFAIT’s international operations, its annual expenditures are influenced by fluctuations in foreign currencies, varying rates of foreign inflation and changes in assessed contributions related to memberships in international organizations. Since FY 2007-2008, DFAIT’s reference levels have been increased as a result of incremental funding for significant new initiatives, such as: implementation of the Canada-U.S. Softwood Lumber Agreement and the Counter-Terrorism Capacity Building Program; creation of the Consular Services and Emergency Management Branch; transfer of the Investment Cooperation program to DFAIT from the Canadian International Development Agency (CIDA); measures to strengthen DFAIT’s network abroad and security at its missions; establishment of the Anti-Crime Capacity Building Program; and expansion and opening of new missions in key emerging markets.

In 2007, DFAIT reviewed the performance of all its programs and spending, and the results of that review are reflected in its forecast spending amounts for the current three-year planning period. DFAIT has also contributed significantly to a number of government restraint exercises and has had its reference levels reduced by $203 million in FY 2010-2011, by $214 million in FY 2011-2012, and by $222 million in FY 2012-2013.

Although FY 2011-2012 planned spending has been adjusted to reflect funding for new initiatives or adjustment to existing programs, the total planned spending in FY 2011-2012 is less than FY 2010-2011 forecast spending by $181 million. This is due to several significant one-time initiatives in FY 2010-2011, including funds for the settlement of AbitibiBowater Inc.'s NAFTA Chapter 11 Claim regarding the expropriation of assets in Newfoundland and Labrador ($130 million) and funding for the G-8 and G-20 Summits ($85.2 million), as well as sunsetting programs and changes in assessed contributions related to Canada's memberships in international organizations ($70.8 million). DFAIT is planning to receive a total of $92.7 million in new funding in 2011-2012, most significantly due to reimbursement of eligible paylist expenditures ($23 million); the Canada Fund for Local Initiatives ($18.3 million); and the Long-Term Accommodation Strategy ($11 million).

1.11 Estimates by Vote

For information on DFAIT’s organizational votes and/or statutory expenditures, please see the 2011-2012 Main Estimates publication.

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