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Section 2: Analysis of Program Activities by Strategic Outcome

Strategic Outcome: A Fair, Efficient and Competitive Marketplace

 

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A fair, efficient and competitive marketplace helps create a business environment that encourages business competition and growth, thereby supporting overall economic growth and a higher standard of living for Canadians. Open and competitive markets also benefit consumers by encouraging improved choice and quality and lower prices for goods and services. In order to promote consumer confidence and more competitive and innovative businesses, Industry Canada will continue to provide the policies, regulations and administration to respond to the evolving marketplace.

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Meeting Our Commitments:

In an effort to contribute to a fair, efficient and competitive marketplace, 13 federal departments and agencies, including and led by Industry Canada, worked together to achieve the 20% reduction in the paperwork burden by streamlining regulations, eliminating duplicate requirements, getting rid of overlapping obligations and reducing how often documents need to be filed.

Benefits to Canadians:

• Created a dedicated response team and launched an interdepartmental policy development process in response to the Competition Policy Review Panel’s Compete to Win report from June 2008. This initiative will expand opportunities for Canadian firms, safeguard national security and enhance Canada’s competitive environment
• Protected consumers and promoted their interests by encouraging lower prices, better choices, and new products and services through amendments to the Competition Act and the Investment Canada Act. These amendments will also help Canada become more competitive globally by making Canada more attractive to foreign investments. This helps to create jobs and opportunities for Canadians and to improve productivity and innovation. They will also ensure that foreign investments do not jeopardize national security
• Along with many other technical standards put in place to enable new wireless technologies and services for Canadians, the Department enabled the introduction of digital television across Canada through the Digital TV Post-Transition Allotment Plan and the Post-transition Agreement on DTV between Canada and U.S.A.
• Provided access to essential telecommunications services to facilitate the communication between emergency responders, and continued to ensure that telecommunications services are available to Canadians during times of emergency
• Accelerated Canada’s economic development by encouraging inventors and innovators to maximize the value of their intellectual property (IP), based on their use of the intellectual property system and exploitation of IP information

Performance Analysis:

Through the following program activities, Industry Canada continued to build a fair, efficient and competitive marketplace.

Strategic Policy Sector — Marketplace

Expected Result: Development and coordination of economic policy frameworks that support a fair, efficient and competitive marketplace
Performance Indicator	Results	Trend
Number of policy initiatives, including legislative and regulatory amendments tabled and approved, aimed at supporting a fair, efficient and competitive marketplace in Canada (e.g. corporate, insolvency, intellectual property, investment, international trade and competition policy)	5 bills tabled: C-61: An Act to amend the Copyright Act C-62: An Act respecting not-for-profit corporations and certain other corporations (Canada Not-for-Profit Corporations Act) C-4: An Act respecting not-for-profit corporations and certain other corporations C-10: An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009, and related fiscal measures (Budget Implementation Act, 2009) C-4: Canada Not-for-Profit Corporations Act 1 set of regulatory amendments was published Regulatory amendments were implemented to the Industrial Design Regulations 2 internal trade protocols amending the Agreement on Internal Trade were adopted	Not Applicable*

^* Trends in performance indicators are not useful to measure due to the nature of the work of this program activity, where actual results vary from year to year, depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the program activity, Public Policy Services has been moved under Internal Services in the 2009–10 PAA.

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
12.6	18.2	18.1*		113	117	4

^* The variance can be explained by the transfer of funds for new responsibilities.

Meeting Our Commitments:

In support of a fair, efficient and competitive marketplace, and in response to the Competition Policy Review Panel’s recommendations, Industry Canada amended the Competition Act and the Investment Canada Act contained in the Budget Implementation Act, 2009, Bill C-10, which received Royal Assent on March 12, 2009. As set out in its report, Compete to Win, these amendments respond to the Panel’s core recommendations for modernizing Canada’s competition and foreign investment laws and policies, and better protecting consumers and promoting their interests by encouraging lower prices, better choices, and new products and services. Bill C-10 will also make Canada more competitive globally by creating jobs and opportunities for Canadians, attracting investment, improving productivity and innovation, and safeguarding Canada’s national security interests.

Small Business and Marketplace Services and Regional Operations Sector — Marketplace

Expected Result: Marketplace fairness, integrity and efficiency are protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management
Performance Indicator	Results	Trend
Number of rules and requirements that are updated or reviewed to ensure relevance and responsiveness to marketplace needs	In support of the administration of the Weights and Measures Act and the Electricity and Gas Inspection Act, 3 regulatory amendment packages were introduced and 25 policy bulletins and technical specifications were developed or revised All Bankruptcy and Insolvency Act (BIA) regulatory instruments reviewed, many instruments amended, and 6 new rules and 7 new forms were created 19 new regulations and 4 new forms created under the Companies’ Creditors Arrangement Act 1,035 rules and requirements dealing with federal incorporation were updated or reviewed	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
95.6	116.6	107.3		1,098	1,044	-54

Meeting Our Commitments:

In 2008–09, Industry Canada conducted in-depth consultations in the chemical products, food and beverage manufacturing, livestock and poultry, and fruit and vegetable sectors to obtain stakeholder views and recommendations on how measurement accuracy should be achieved and monitored in these marketplace sectors. Through the establishment of sector-specific marketplace approaches to achieving and monitoring measurement accuracy, stakeholder needs and expectations were addressed and a suitable level of government intervention was afforded, contributing to a fair, efficient and competitive marketplace. Other consultations were also held to improve incorporation service across the country through interjurisdictional partnership, witnessed through the active participation of partners, including provinces and territories, in developing and formulating the new NUANS® governance structure.

To ensure marketplace fairness and efficiency in spectrum management, the new Radiocommunication and Broadcasting Antenna Systems procedures were published in January 2008. They came into effect in July 2008, after a six-month transition period, to allow the thousands of stakeholders across Canada, industry, government and the public, time to adapt to the updated process. The key changes include one process for all antenna structure usages, clearer processes for public notification and consultation, and added community involvement.

Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Expected Result: Canada’s radiocommunications and telecommunications infrastructure and online economy are governed by a modern and appropriate policy framework
Performance Indicator	Results	Trend
Percentage of policies, legislation and regulations developed, updated or reviewed as identified in annual branch business plans / strategic plans	90% of planned initiatives were undertaken including: The production of policies and standards for many bands that will enable new technologies and services in Canada The drafting of anti-spam legislation and exploring legislative options to update the Personal Information Protection and Electronic Documents Act (PIPEDA) legislation The release of the revised policy paper entitled Licensing Framework to Auction Spectrum in the Bands 849—851 MHz and 894—896 MHz for Air-Ground Services 3 CRTC decisions reviewed by the Governor-in-Council	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
58.9	68.2	65.0*		357	337	-20

^* The variance between Planned Spending and Actual Spending relates to the increased salary costs from collective agreements and retroactive pays, as well as internal funding reallocations towards program legislative and regulatory priorities relating to spectrum / telecom management.

Meeting Our Commitments:

Industry Canada has made significant progress in advancing Canada’s radiocommunications and telecommunications frameworks, which includes infrastructure, spectrum management and policy. In addition to raising $226.6 million annually in spectrum and radio licences, the Department held the Advanced Wireless Services (AWS) spectrum auction in 2008, which concluded successfully and raised over $4 billion. This spectrum is to be used for advanced wireless services such as high-speed Internet and mobile devices.

The Department also completed the Digital TV Post-Transition Allotment Plan, which reserves a part of the current television spectrum for digital television use and allows other services to use the remainder. The Allotment Plan provides a channel for each television station. This plan has been coordinated with the U.S. plan. The transition to digital television is set to be completed by August 31, 2011.

Industry Canada ensured that spectrum and telecommunications are available for public safety and emergency purposes. This includes readiness exercises for the Vancouver 2010 Winter Games, maintaining partnerships with stakeholders in both the private and public sectors, and completing the initial phase of a study on the resilience of the Canadian wireless infrastructure. In addition, various operational drills were executed to ensure equipment and government-related procedures were understood and effective in responding to a crisis.

Office of Consumer Affairs

Expected Result: Consumer interests are protected and promoted throughout Canada
Performance Indicator	Results	Trend
Number of major challenges being addressed and/or documented that affect the consumer interest in Canada	4 consumer challenges (consumer debt, consumer literacy, use of alternative forms of credit and the risk of identity theft) were continually addressed through research, advocacy and outreach	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
5.1	6.4	6.3*		23	22	-1

^* The variance can be explained by the fact that the Office of Consumer Affairs received further funding through supplementary estimates A and B.

Meeting Our Commitments:

Industry Canada, through the Office of Consumer Affairs (OCA), completed submissions concerning federal designation orders under the Criminal Code payday lending exemption for the province of Manitoba (order proposed in May 2008 and made official in June 2008) and for the province of Nova Scotia (order proposed in March 2009). In 2008–09, the OCA led the development of a joint federal-provincial-territorial discussion paper on services to help consumers recover from identity (ID) theft. To promote consumer confidence and address major consumer challenges, the Department also undertook research focusing on consumer vulnerability, the electronic marketplace and sustainable consumption. Evidence-based submissions were made to internal, interdepartmental and intergovernmental forums in support of modern frameworks for electronic payments, consumer credit reporting, financial literacy and telecommunications. Consumers were provided with a new information product on digital television, and an information series of five topics including debt and identity theft was completed for Canadians with low literacy skills. The OCA also released the 2008–09 version of The Canadian Consumer Handbook.

Competition Bureau

Expected Result: The Canadian economy is efficient and adaptable due to the competitiveness of prices and choices available to consumers
Performance Indicator	Results	Trend
Dollar savings to consumers from Bureau actions that stop anti-competitive activity	Estimated savings of $254 million (criminal enforcement only)*	New Indicator

^* Estimated overcharge to consumers (or economic harm) for the duration of the infraction, prior to Bureau actions concluded in fiscal year 2008–09. This is a conservative estimate based on similar methodologies used by antitrust agencies in other countries.

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
49.8	62.2	59.1		452	438	-14

Meeting Our Commitments:

Combatting domestic cartels and illegal bid-rigging agreements was a priority for the Competition Bureau in fiscal year 2008–09, and key to ensuring that the Canadian marketplace is fair and competitive. Industry Canada, through the Competition Bureau, uncovered a conspiracy to fix the price of gasoline at the pump in the province of Quebec. As a result of that investigation, 13 individuals and 11 companies were charged. As of March 2009, 6 companies and 8 individuals had pled guilty, fines totalled over $2.6 million and imprisonment terms totalled 44 months.

Charges were laid against 14 individuals and 7 companies accused of rigging bids in order to obtain Government of Canada IT services contracts worth approximately $67 million. In addition, the Bureau continued to support prevention and detection by educating buyers and sellers to identify and report potential bid-rigging schemes. It conducted 51 bid-rigging presentations for approximately 2,020 people representing businesses across the country and all levels of government. Fifteen organizations that had participated in the presentations informed the Bureau that they had implemented changes to their tendering process.

The Bureau continued to advocate for the introduction of greater competition in the regulated health sector. With the release of its 2008 study, Benefiting from Generic Competition in Canada: The Way Forward, the Bureau offered tangible recommendations on where potential government and consumer savings of up to $800 million were being lost. One province, Manitoba, has amended its public drug plan policies on the basis of the Bureau’s recommendations and the Bureau continues to consult with other provinces and territories on potential reforms.

Canadian Intellectual Property Office — Revolving Fund

Expected Result: The delivery of and quality of CIPO’s services respond to client needs and expectations
Indicator	Results	Trend
Percentage overall satisfaction of clients with CIPO’s services	74% of clients were satisfied or very satisfied with CIPO’s services, down from 79% in 2005	Declining
Expected Result: Increase awareness and use of intellectual property
Indicator	Results	Trend
Percentage of SMEs that are aware of / familiar with IP	Baseline of 36% established in 2006–07 (next survey: 2010–11)	Not applicable

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
4.9	139.5	12.9*		1,030	944	-86

^* Although CIPO and its clients have been operating in tenuous economic conditions, a positive variance in net operating income was incurred. This variance is primarily due to the prudent management of expenditures, lower investment in capital and changes under various balance sheet accounts such as deferred revenue and accounts payable. We anticipate utilizing the positive variance in future years to maintain current operating levels and to fulfill CIPO’s strategic objectives.

Meeting Our Commitments:

The Canadian Intellectual Property Office (CIPO) continues to focus on becoming more efficient, accessible and responsible to its clients to help them strengthen their competitive advantage, both domestically and globally. To that end, CIPO is improving client access to quality intellectual property (IP) rights in a timely fashion. CIPO is modernizing its e-services platform through the Enterprise Business Renewal Initiative, enhancing the bilingual search capabilities of its databases, and creating a more user-friendly website. Moreover, to improve awareness of intellectual property, CIPO undertook projects in the education and SME sectors to increase understanding by students, creators and innovators of the effective use of IP. These projects included piloting educational tools for university students in science and engineering faculties, prototyping IP data research tools for SMEs, and developing and delivering IP training for intermediaries to leverage their reach to multiple sectors. The Office also formed a new working group with Australia and the United Kingdom (called the Vancouver Group) to explore collaborative initiatives, share best practices and research findings, and compare performance trends.

Strategic Outcome: An Innovative Economy

Performance Indicator	Results	Trend
Business Expenditures on Research and Development (BERD) as a percentage of gross domestic product (GDP)	In 2008, BERD accounted for $16.31 billion, or 1.02% of the GDP, down 0.15 percentage points from 2003 BERD / GDP10	Declining
Higher-Education Research and Development Expenditure (HERD) as a percentage of GDP	In 2008, HERD accounted for $4.53 billion, or 0.28% of the GDP, down 0.2 percentage points from 2003 HERD / GDP11	Declining
Number of people in science and technology occupations as a share of total employment	1.2 million in 2008, or 7% of total employment, an increase of 0.41 percentage points from 200412	Improving

 

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Scientific discoveries and new technologies provide solutions to many of the issues most important to Canadians, giving us the knowledge and the means to preserve the quality of the environment, protect endangered species, improve health, enhance public safety and security, and manage natural and energy resources. Scientific and technological innovations enable modern economies to improve competitiveness and productivity, providing the means to achieve an even higher standard of living and better quality of life.

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Meeting Our Commitments:

In an effort to foster a knowledge-based economy, Industry Canada implemented all commitments stated in the Science and Technology Strategy. Significant progress has also been made to create value for Canadians and lay the foundation for benefits from science and technology in the future. The Department also supported the generation and commercialization of knowledge by supporting innovation in aerospace and defence and supplementing access to information and communications technologies.

In January 2009, the Communications Research Centre (CRC) received an Emmy Award for its contribution to the standardization of the Advanced Television Systems Committee (ATSC) digital television (DTV) standard at the Academy of Television Arts & Sciences annual Technology & Engineering Awards. CRC's contributions to the ATSC standard helped define the way high-definition television (HDTV) is broadcast to homes in the United States and Canada. Its Advanced Television Evaluation Laboratory (ATEL) conducted two rounds of extensive subjective tests and produced results that were critical in the adoption of the ATSC standard in North America.

The Department completed Technology Roadmaps, bringing together representatives from industry, its supply chain, academia, research groups and government to identify and prioritize the technologies needed to create new products to meet future market demands.

The Automotive Innovation Fund (AIF) was established to provide automotive firms with access to $250 million over five years in support of strategic, large-scale R&D projects to build innovative, greener, more fuel-efficient vehicles.

Benefits to Canadians:

• Through its commitments to S&T, invested in a stronger economy, future opportunities for jobs and an improved quality of life for Canadians, which will contribute to a sustainable national competitive advantage
• Through CANARIE, which provides a high-speed research network, provided Canadians with the opportunity for international collaboration on projects in areas such as health care, the environment and weather monitoring
• Through SADI, recipient companies contributed to Canada’s knowledge-based economy, increased collaboration with research institutes, universities, colleges and non-profit organizations
• Technology Partnerships Canada (TPC) and Program for Strategic Industrial Projects (PSIP) recipients developed and improved innovative technologies, stimulated private sector involvement, and provided opportunities for economic growth
• The Science, Technology and Innovation Council (STIC) provided advice on the design of the developed Canada Excellence Research Chairs Program and the Vanier Canada Graduate Scholarships Program and drafted STIC’s first State of the Nation Report on Canada’s Science, Technology and Innovation System

Performance Analysis:

Through the following program activities, Industry Canada continued to build an innovative economy.

Science and Innovation Sector — Science and Technology (S&T) and Innovation

Expected Result: Development and coordination of policy frameworks in support of an innovative economy
Performance Indicator	Results	Trend
Policy proposals that are brought forward to reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector	Policy proposals were brought forward aimed at advancing an innovative economy and were championed for inclusion in the budget. Budget 2009, tabled on January 27, 2009, included initiatives that will result in cumulative S&T funding of over $5 billion, of which $3.8 billion will be spent by next fiscal year	Improving

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
101.1	100.0	99.7		74	70	-4

Meeting Our Commitments:

To foster innovation, Industry Canada supported granting councils by providing funding for research in priority areas and by enhancing their accountability and responsiveness. The Department bolstered the Canada Graduate Scholarships Program to offer an additional 1,000 scholarships, as announced in Budget 2007. These awards provided incremental federal support for top Canadian graduate students pursuing advanced training and research at Canadian universities. Opened to students from all disciplines, the Industrial R&D Internship Program (IRDI), coordinated through NSERC, provided interns with the opportunity to apply their research skills to real-world challenges while connecting firms with intellectual capital and potential future employees. The program placed 468 graduate student and post-doctoral interns in firms across Canada last year.

In support of an innovative economy, Industry Canada, with its partners, the Business Development Bank of Canada (BDC), National Research Council Canada (NRC), and the Natural Sciences and Engineering Research Council (NSERC), took immediate actions aligned with the federal S&T strategy to collaborate more closely and to share resources and expertise with the intent of accelerating the commercialization of publicly funded research that capitalizes on the individual strengths of these organizations. A steering committee was established to track the project’s progress, accelerate critical initiatives and identify fresh opportunities to work together effectively.

Industry Canada monitored progress in five priority areas and ensured that it was reported to ministers at the North American Leaders’ Summit in Montebello, Quebec, in August 2007. The five areas are Enhancing the Global Competitiveness of North America, Safe Food and Products, Sustainable Energy and Environment, Smart and Secure Borders, and Emergency Management and Preparedness.

Industry Sector — S&T and Innovation

Expected Result: Innovative Canadian Industries
Performance Indicator	Results	Trend
Increase year-over-year in industrial R&D13 expenditures	2007P: $16.2 billion 2008P: $16.3 billion14 Change: 0.97% P: Preliminary estimate	No change

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
9.5	101.0	90.4*		83	79	-4

^* The variance is a result of additional authorities approved in 2008–09.

Meeting Our Commitments:

To support innovation in targeted Canadian industries, Industry Canada announced two funding programs: the Automotive Innovation Fund AIF and the CSeries Program. Under the AIF, Industry Canada signed one contribution agreement for up to $80 million to support strategic, large-scale R&D projects for the development of innovative, greener and more fuel-efficient vehicles. In addition, through the CSeries Program, the Department announced its intention to make a repayable investment of up to $350 million for the research and development of new aerospace technologies that will lead to more fuel-efficient and safer commercial aircraft.

Furthermore, Industry Canada facilitated the completion of 10 industry-led Technology Roadmaps (TRM) enabling industries — from hydrogen fuel cells to textiles to health management — to focus more effectively on R&D investments. Industry Canada also supported the creation of the Green Aviation Research and Development Network (GARDN), a business-led centre of excellence for the aerospace industry.

Spectrum, Information Technologies and Telecommunications Sector — S&T and Innovation

Expected Result: Improved science and research capacity and commercialization of information and communications technologies
Performance Indicator	Results	Trend
Percentage of the top 50 Canadian R&D universities that utilize CANARIE’s Advanced Network	98% of the top 50 Canadian R&D universities are now connected to the CANARIE Network	New indicator
Number of new technologies and applications developed in the areas of intelligent systems and advanced robotics through Precarn’s collaborative model	Precarn developed 30 new technologies and applications	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
18.4	30.2	29.5*		4	4	0

^* This includes the $28-million payment is the third instalment of the $120-million conditional grant for CANARIE’s Advanced Network. The amount paid is based on CANARIE’s cash flow requirements, reported annually to the Minister before an instalment is issued.

Meeting Our Commitments:

Network operations continue to be extended and optimized to deliver high-quality service to Canada’s research and education community. As a result, more than 50 organizations now have access to, and use of, the CANARIE Network through the Infrastructure Extension Program. Additionally, and in support of an innovative economy, CANARIE encouraged the definition and implementation of collaborative projects that will accelerate the development of, and participation in, national and international cyber-infrastructure and e-research platforms.

Communications Research Centre Canada

Expected Result: Communications sector clients receive the required technical input to develop telecommunications policies, regulations, programs and standards
Performance Indicator	Results	Trend
Extent of client satisfaction (related to content, timeliness and usefulness) with Communications Research Centre technical inputs and assessments used to develop telecommunications policies, regulations, programs and standards	No formal client satisfaction survey was undertaken during the year. However, client feedback indicated that CRC contributes positively to policy, regulations and standards initiatives	Not applicable

Expected Result: Canadian companies use CRC-developed technology to enhance their product lines and competitiveness
Performance Indicator	Results	Trend
Sales revenue of Canadian communications companies with a technology link to Communications Research Centre	A study of CRC’s economic impact is undertaken every 5 years, with the next study due in 2010. The last study (2005–06) by an external consultant pointed to $1.6 billion in annual sales revenues from CRC spinoff companies, and cumulative industry sales resulting from CRC IP licences to the year 2005 of $520 million	Not applicable

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
43.1	60.3	57.4*		400	374	-26

^* The variance is a result of increased salary costs from collective agreements, recapitalization of scientific equipment, increased respendable revenues from collaborative research agreements and campus operation activities, and spectrum monitoring support for the Vancouver 2010 Winter Games.

Meeting Our Commitments:

Industry Canada, through the CRC, provided technical input and expertise to its various partners and clients on multiple occasions. The CRC is participating in a multi-partner CANARIE project called Health Services Virtual Organization (HSVO) to create a sustainable platform for the experimental development of shared information and communications technology (ICT)-based health services. As its contribution, the CRC provided infrastructure support as well as specialized software. The CRC also provided support to the Department’s telecommunications policy-making and spectrum regulation through a number of projects and studies, including interference studies from new technologies, such as white space and unlicensed devices on DTV reception; review of orbital licence allocation proposals; cognitive radio simulations and analysis to support technical inputs to IEEE 802.16 standards; and development of new techniques for detecting and identifying malicious attacks on networks, as part of a Canadian and global effort to improve security for business and other transactions.

The Department also contributed to the International Telecommunications Union (ITV) in the areas of HDTV and 3D-TV quality assessment, audio loudness measurement and Software Defined Radio (SDR).

Industrial Technologies Office — Special Operating Agency

Expected Result: Leading-edge research and development in Canadian firms
Performance Indicator	Results	Trend
Dollar of private sector investment leveraged per dollar of Agency investment in ITO projects	$2	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
311.8	333.5	294.6		96	85	-11*

^* The variance is due to a high staff turnover.

Meeting Our Commitments:

Industry Canada successfully wound down the h2 Early Adopters (h2EA) Program for the March 31, 2008, closing date. The 2008 h2EA final evaluation indicated that government and industry representatives saw the program as being in line with industry needs when established in 2003. The approved projects represented over 50 companies, including technology providers, funding partners and suppliers. Most companies experienced technical learning and general improvements in their capabilities in hydrogen technology.

The Department also invested in nine new SADI projects valued at $395.4 million, which leveraged upwards of $723 million in additional R&D investment commitments, thereby enhancing competiveness in the aerospace and defence industry.

In addition, the Department disbursed $238 million to the legacy Technology Partnerships Canada (TPC) and Program for Strategic Industrial Projects (PSIP) programs.

Strategic Outcome: Competitive Industry and Sustainable Communities

Performance Indicator	Results	Trend
Investment in machinery and equipment as a proportion of GDP	Canada invested 7.17% of GDP in machinery and equipment in 2008, a decrease of 0.3 percentage points from 200715	Declining
International ranking of Canada in the use of information and communications technologies	Canada ranks 19th out of 154 countries in terms of level of advancement in the use of information and communications technology (ICT), down from 9th in 200216	Declining

 

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Competitive industry and sustainable communities help to ensure good jobs, economic growth, and a high standard of living and quality of life for all Canadians. Canadian businesses compete in a constantly changing modern marketplace with ever-increasing competition for skilled workers and customers. A better understanding of the many challenges and opportunities that our businesses face will help our companies to compete and prosper in the global, knowledge-based economy.

 

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Meeting Our Commitments:

In 2008–09, the Department, in meeting its commitment to foster competitiveness, focused on the automotive sector. Working with the U.S. Treasury, a coordinated strategy was implemented to assist automotive companies in their restructuring efforts, laying the foundation for a more globally competitive automotive sector.

Benefits to Canadians:

• Strengthened tourism through policy integration and advocacy
• Helped small and medium-sized businesses and entrepreneurs to grow and prosper
• Administered the Ontario Potable Water Program, and delivered infrastructure programs such as the Canada–Ontario Municipal Rural Infrastructure Fund, which enable increased community capacity to respond to economic development opportunities and challenges
• Delivered refurbished computers through the Computers for Schools program to ensure that more Canadians have access to the tools necessary to live and work successfully in the knowledge economy

Performance Analysis:

Through the following program activities, Industry Canada continued to build competitive industries and sustainable communities.

Strategic Policy Sector — Economic Development

Expected Result: Development and coordination of policy frameworks in support of competitive industry and sustainable communities
Performance Indicator	Results	Trend
Development and coordination of economic policy frameworks that support the competitiveness of Canadian industries and help ensure the sustainability of communities across the country	IC continued to implement the 26 action items in the Sustainable Development Strategy (2006–09) IC participated in an interdepartmental working group with the Department of Foreign Affairs and International Trade (DFAIT), Environment Canada and Natural Resources Canada on the development of a national and North American region 10-year framework of programs to make progress towards sustainable consumption and production period. IC also participated in a Canada–U.S. stakeholder consultation on the issue of these programs IC officials participated in international trade negotiations (within the World Trade Organization and with Korea, Panama, Jordan and Central America, for example) and in Foreign Investment Promotion and Protection Agreement negotiations (with Vietnam, Indonesia, China, Madagascar and Kuwait, among others)	Not applicable*

^* Trends in performance indicators are not useful to measure due to the nature of the work of this program activity, where actual results vary from year to year, depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the program activity, Public Policy Services has been moved under Internal Services in the 2009–10 PAA.

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
6.6	15.5	15.4*		38	37	-1

^* The variance can be explained by the transfer of funds to new responsibilities.

Meeting Our Commitments:

The development of Industry Canada’s 5th Sustainable Development Strategy (SDS V) has been delayed until fiscal year 2010–11, due to the passage of a new Federal Sustainable Development Act (FSDA) in June 2008. The Act requires that departments table their next SDS in June 2011, and that it be closely aligned, where appropriate, with the federal SDS, which will be tabled in June 2010.

In order to build the appropriate policy frameworks supporting competitive industries, Industry Canada officials provided trade policy advice to DFAIT and other departments throughout 2008–09 on issues related to telecommunications, investment, competition, intellectual property and industrial policies related to key sectors including autos, shipbuilding, aerospace, apparel and textiles. Departmental officials advised and participated in negotiations with the Andean communities. Free Trade Agreement (FTA) negotiations with Colombia and Peru were successfully completed and signed. FTA negotiations with the Caribbean community and the Dominican Republic were put on hold due to domestic issues within those countries. Investment negotiations with Jordan were successfully completed and an agreement is targeted for signature in 2009. For further information, see Negotiations and Agreements.

Small Business and Marketplace Services and Regional Operations Sector — Economic Development

Expected Result: A business environment that supports entrepreneurship, sustainable communities, growth and competitiveness across Canada, and recognizes regional perspectives
Performance Indicator	Results	Trend
Number of new or improved departmental programs, services and information products that target SMEs	1 information database was improved: the Canadian Company Capabilities (CCC) database of 60,000 Canadian companies used by the private and public sectors to source Canadian products and services 3 new services were provided by the Canada–Ontario Business Service Centre, including provision of telephone services in Spanish; provision of online information in Polish, Russian and Urdu; and service partnerships with Service Canada and Service Ontario	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
235.6	315.4	272.3		523	507	-16

Meeting Our Commitments:

In 2008–09, Industry Canada worked with its partners to increase the number of locations offering the BizPaL service by 146% (167 additional municipalities and 3 additional provinces and territories began to offer the BizPaL service). These achievements enabled more Canadians to have access to BizPaL, which provides Canadian businesses with one-stop access to permit and licence information for all levels of government. This translates into savings in the time required to research and find required permits and licences quickly and efficiently in order to comply with government regulations. It also provides entrepreneurs and Canadian businesses with more time to focus on starting or growing their businesses, which, in turn, helps support the Canadian economy.

The Department also completed a program renewal exercise to serve ongoing funding for the Canadian Business Network (CBN), an information service for small business delivered in partnership with the Atlantic Canada Opportunities Agency, Western Economic Diversification Canada and the Economic Development Agency for the Regions of Quebec.

FedNor continued to provide support for regional development in Ontario through the Northern Ontario Development Program, the Eastern Ontario Development Program and the Community Futures Program. Notably, FedNor continued to deliver its $14.7-million commitment to help establish the Molecular Medicine Research Centre in Thunder Bay. This will help support leading-edge research that has commercial potential and will foster strategic alliances among research and postsecondary educational institutions, the private sector, communities and the government.

Industry Sector — Economic Development

Expected Result: Competitive and sustainable Canadian industries
Performance Indicator	Results	Trend
Increase in year-over-year Industry Sector’s GDP	2007: $524.7 billion 2008: $519.4 billion17 Change: -1.0%	Declining

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
66.8	81.4	77.9*		235	226	-9

^* The variance is a result of additional authorities approved in 2008–09.

Meeting Our Commitments:

In an effort to support the competitiveness and sustainability of Canadian industries, Industry Canada requested that two automotive firms improve their cost structures outlined in their respective restructuring plans. As the companies each made sacrifices to help ensure a sustainable, competitive company going forward, the government supported their efforts to restructure.

To further support other Canadian industries, the Department also approved 32 projects through the Canadian Apparel and Textile Industries Program (CATIP), with total funding of $2.4 million. Additionally, six contribution agreements, representing over $80 million of value in sales to Canadian shipyards, were signed through the Structured Financing Facility (SFF). Moreover, as of March 31, 2009, the Industrial and Regional Benefits (IRB) policy has resulted in over $15 billion in commitments to invest in Canada. With the government’s unveiling of the Canada First Defence Strategy, planned future procurements could exceed $40 billion in new IRB opportunities over the next 10 years. Industry Canada also undertook activities to better inform trade negotiations and policy development, including improving market access to Japan for Canadian wood building products.

Spectrum, Information Technologies and Telecommunications Sector — Economic Development

Expected Result: Aid Canadian ICT companies in positioning themselves for industrial opportunities and growth in the global marketplace
Performance Indicator	Results	Trend
Number of requests by Canadian ICT companies for business development services (e.g. investment)	There were 567 requests by ICT companies for business services to address major challenges along common themes such as scientific research and experimental development and funding options, as well as company support available for various global events and business opportunities*	New indicator

^* Including CommunicAsia, BroadcastAsia, Expo Comm China, FutureCom and Mobile World Congress (MWC)

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
26.1	43.7	43.6		49	80	31*

^* The variance arises from the fact that no resources were reported in the RPP for the Community Access Program and the Computers for Schools program, as the program authorities were still pending at the time.

Meeting Our Commitments:

Industry analysis and support resulted in common issues being identified and validated in order to provide suggestions to improve policy, programs and services to the ICT sector. The Department engaged stakeholders in all regions and sub-sectors of the ICT industry across Canada to encourage sharing of information such as business factors that affect productivity, sustainability and growth of the sector. The intelligence gathered was shared with the Trade Commissioner Service to assist in matching Canadian capabilities to foreign needs in order to enable companies to be better positioned to compete in global markets.

Mackenzie Gas Project

Expected Result: Development of Mackenzie gas resources supports sustainable communities
Performance Indicator	Results	Trend
Provide up to $2 million to Northwest Territorial Aboriginal communities living along the proposed pipeline route to facilitate development of regional investment plans	Provided $1.8 million to 5 Aboriginal communities to assist them in continuing and/or finalizing the development of regional investment plans	New indicator

Financial Resources* ($ millions) 2008–09				Human Resources* (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
-	7.9	5.0		N/A	N/A	N/A

^* Data are not available due to the fact that the Mackenzie Gas Project was transferred to Industry Canada from Indian and Northern Affairs Canada late in 2007–08 and then was transferred to Environment Canada late in 2008–09.

Meeting Our Commitments:

The Mackenzie Gas Project (MGP) is a proposed 1,220-kilometre natural gas pipeline system through the Mackenzie Valley in the Northwest Territories that will connect northern onshore gas fields with North American markets. It has the potential to make key contributions to promoting economic development in the Northwest Territories. The Mackenzie Gas Project Office will continue to coordinate federal government efforts to support the MGP.

 

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⁴ Indicators of Product Market Regulation. OECD, 2008

⁵ Economic Policy Reforms: Going for Growth. OECD, 2009

⁶ World Competitiveness Yearbook. International Institute for Management Development (IMD), 2008

⁷ World Competitiveness Yearbook. IMD, 2008

⁸ Indicators of Product Market Regulation. OECD, 2008

⁹ World Competitiveness Yearbook. IMD, 2008

¹⁰ Business Expenditures on R&D Compared to GERD and GDP. Table 3. Statistics Canada, 2009

¹¹ GERD - By Performing Sector and Funding Sector. Table 1-2. Statistics Canada, 2009

¹² Employment by Industry. Statistics Canada, 2009

¹³ Intramural expenditures: expenditures for R&D work performed within the reporting company, including work financed by others

¹⁴ Total Intramural Research and Development Expenditures - By Industry. Table 1-1. Statistics Canada, 2009

¹⁵ Real Gross Domestic Product, Expenditure Based. Statistics Canada, 2009

¹⁶ Measuring the Information Society: The ICT Development Index. International Telecommunications Union, 2009, p.32

¹⁷ National Economic Account – CANSIM Table. Statistics Canada, 2009

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