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Minister's Message
It is my pleasure to present the Departmental Performance Report for Natural Resources Canada (NRCan) for the period ending March 31, 2009.
During the reporting period, the global economic downturn affected all sectors of the Canadian economy, including its natural resource sectors. The prevailing consensus, however, is that Canada's commodities and energy resources will be central to the country's economic recovery and global competitiveness. The question is not "whether" but "when".
Building on successes, the Government of Canada's Economic Action Plan is assisting Canadians in weathering the immediate storm while at the same time bolstering the country's longer-term strength and competitiveness. Commenting on this strategy, the International Monetary Fund has registered its support for the Government's "large, timely, and well-targeted fiscal stimulus in Budget 2009."
NRCan's achievements are playing a leading role in advancing the Government's Economic Action Plan. The department's aim is to reinforce Canada's conditions for economic success, sound environmental leadership and security.
The department has achieved substantial progress in the delivery of its priorities. For example, NRCan is providing substantial leadership in addressing climate change and air quality through science, technology and adaptation. Its ecoENERGY initiatives are helping Canadians become more efficient consumers of energy in their homes, businesses and vehicles.
Another departmental priority is to enhance Canada's forest sector competitiveness. The department has worked closely with the forest industry and related stakeholders to foster new opportunities and innovation in the forest sector. It has helped expand offshore market opportunities and promote Canada's forest products through the Canada Wood Export Program and other initiatives. Closer to home, it is helping to diversify market opportunities by promoting the use of wood in the North American non-residential sector. The Government of Canada's Community Adjustment Fund is providing $1 billion over two years to address the short-term economic needs of Canadian communities affected by the global recession.
Greater opportunities for social and economic development are emerging in the North. Through its mapping and geomatics activities, NRCan is contributing to northern sustainability and supporting Canada's Arctic sovereignty by providing information for a successful submission under the United Nations Convention on the Law of the Sea.
NRCan is also helping to improve Canada's regulatory system, in particular as it pertains to major natural resources projects. Only a year after its introduction, the Major Projects Management Office is managing federal regulatory requirements for 41 natural resources projects, representing more than $100 billion in potential new capital investment.
By pursuing these and many other initiatives, NRCan is demonstrating its commitment to delivering results on issues that are of great importance to Canadians. Increasing the competitiveness of Canada's industry, making advances in innovation, tackling climate change and developing science and technology means working closely with the provinces and others with the goal of ensuring a prosperous, sustainable and secure resource future for Canadians.
The Honourable Lisa Raitt, P.C.,
M.P.
Minister of Natural Resources
Section I – Overview
Raison d'être
NRCan's vision it to improve the quality of life of Canadians by creating a sustainable resource advantage. The department works to improve the competitiveness of Canada's natural resource sectors, which provide jobs and income for Canadian families across the country. It strives to ensure that resource development takes place sustainably and advances Canada's leadership on the environment. As a science-based department, NRCan also supports some of the most basic safety and security obligations a country has to its citizens through its knowledge and expertise on Canada's vast and diverse landmass.
Responsibilities
The Minister of NRCan is responsible for, or has responsibilities under more than 30 Acts of Parliament. The core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act, and the Forestry Act. The remaining Acts set out the terms for the management of Crown lands and of Canada's natural resource policies, including energy and nuclear policy. In carrying out these responsibilities, NRCan works closely with other federal departments with resource-related responsibilities and supports the federal role in regional development and Aboriginal affairs in matters related to the resource sectors. NRCan also works in areas of shared responsibility with the provinces.
The department strives to promote economic competitiveness, improve environmental responsibility, and strengthen safety and security. By working towards these strategic outcomes, NRCan is helping to create a future where Canada's resources are produced and used in innovative and environmentally responsible ways, and where value is maximized at every stage of development. It is a future where more high-quality jobs are created and kept at home, and the idea of being a clean resource power is turned into reality sooner. This is about ensuring Canada is a place where economic competitiveness includes leadership on the environment.
In 2008-09, NRCan pursued an integrated approach towards achieving these goals. Its unique strengths in science and technology were used to help the Government meet the increasing demand for evidence-based public policy. NRCan sought to implement its priorities and find solutions as a way of maximizing the benefits from all of Canada's assets – the natural resource base, people and ideas, and systems (e.g., regulations, infrastructure). More specifically, the department focused its efforts on five priority areas.
- Address climate change and air quality through science technology, and adaptation.
- Enhance forest sector competitiveness by investing in innovation and market diversification.
- Support Canada's Arctic sovereignty through geoscience and mapping activities.
- Improve regulatory performance for major natural resource projects.
- Advance Canada's resource interests and sustainability efforts in the Americas and globally.
The department implemented these priorities during a year of significant change. Canada's economic context underwent a dramatic transformation - moving from an extended period of resource-driven growth into a major downturn and recession. As these circumstances began to impact the natural resource sectors and the livelihood of Canadians, NRCan played its part in contributing to the government's response.
Operating Context
The first half of 2008 was a continuation of a period of sustained economic growth and prosperity for Canadians. Canada's economy continued to benefit from high commodity prices and the resulting increase in demand for labour and capital investment due in part to an expanding energy sector and healthy mining industry.
In late 2008, Canada's economy began to deteriorate as a result of the global financial crisis and the ensuing recession. As with other major economies, Canada entered a phase of negative growth characterized by a drop in exports, postponed investments and job layoffs across the country.
These changing economic conditions had serious consequences for the natural resource sectors. Throughout 2008-09, Canada's forest industry continued to restructure as it worked to address increased global competition, old capital stock and high costs of production. The global recession, and in particular the collapse of the US housing markets, further hurt demand, contributing to more mill closures and a new wave of job losses within the sector.
Commodity prices began to fall substantially as a result of slower economic growth. Price weakness in most minerals and metals resulted in reduced expenditures in exploration, lowered output, the deferral of capital investment as well as site closures. The demand for manufactured goods comprised of minerals and metals also decreased significantly.
The strong Canadian energy industry was not immune to the economic slowdown. Due to lower global demand and price volatility, the oil and gas industry postponed several major projects. These pressures came at a time when the industry was facing increasing challenges related to the renewal and expansion of infrastructure, as well as the need for improved environmental performance. Greenhouse gas emissions, climate change, and water use remain significant challenges.
This dramatic about-face only sharpened the need for NRCan to work to improve the competitiveness and environmental leadership of Canada's natural resource sectors. It necessitated quick reaction on the part of NRCan in contributing to Canada's Economic Action Plan and a redoubling of efforts to deliver on departmental priorities.
Strategic Outcomes and Program Activity Architecture (2008-09)
NRCan manages its program delivery through three strategic outcomes which have seven program activities. The program activities are divided into smaller groups of sub-activities and sub-sub-activities that are designed to achieve the expected results that collectively contribute to the realization of strategic outcomes. The Program Activity Architecture is complemented by a dynamic performance measurement framework that provides Canadians with an evidence-based set of qualitative and quantitative performance indicators aimed at assessing the department's progress in achieving its strategic outcomes.
Contribution of Priorities to Strategic Outcomes
NRCan identified five priorities that were critical to the realization of its strategic outcomes (SO) and expected results over the reporting period. These priorities shaped our integrated effort in the development of our policies, pursuit of our science and technology initiatives, and delivery of our programs towards the strengthening of the three key assets of Canada's sustainable resource advantage: the resource base, people and ideas, and systems.
| Operational Priorities | Type* | Status | Linkages to Strategic Outcomes |
|---|---|---|---|
| 1. Addressing climate change and air quality through science, technology and adaptation – Strengthen the sustainability of Canadian energy production and consumption, and provide the knowledge and the tools to better understand and adapt to a changing climate. | Previously committed | Met | SO 2 & 3 |
| 2. Enhancing Canada's forest sector competitiveness – Support sustainable and transformative change of Canada's forest sector to improve the long-term economic competitiveness and sustainable management of Canada's forests. | Previously committed | Mostly met | SO 1, 2 & 3 |
| 3. Supporting Canada's Arctic sovereignty through geoscience and mapping activities – Support the evolution of strong and dynamic northern regions. | Ongoing | Met | SO 3 |
| 4. Improving regulatory performance for major natural resource projects – Ensure that Canada's sustainable resource advantage is enhanced by a stable, timely, well-coordinated and evidence-based regulatory process. | Previously committed | Mostly met | SO 1, 2 & 3 |
| 5. Advancing Canada's resource interests and sustainability efforts in the Americas and globally – Leverage Canada's sustainable resource advantage for domestic and international economic growth. | Ongoing | Mostly met | SO 1, 2 & 3 |
*An ongoing priority has no end date; a previously committed priority has an estimated end date and was committed to in prior budgets or main estimates documents.
Management Priorities
Over the past year, NRCan continued to work towards becoming a more integrated, knowledge-based and results-oriented organization by advancing a number of management priorities. The first priority was the continued implementation of the departmental strategic framework which provides a foundation for the department to work together in a more collective and integrated manner. To that end, the department developed a science and technology strategy. It also created horizontal task teams that brought together expertise from across the department to conduct research and develop policy in five areas of primary interest: carbon capture and storage; international strategy; water; renewable resources/bio-energy; and impacts and adaptation to climate change.
Knowledge management and collaborative technologies play a large role in NRCan becoming a world class centre of integrated knowledge and expertise. These initiatives are key to the implementation of the strategic framework and to the integration of science and policy through enabling evidence-based policy making. As one of the federal government leaders in the use of collaboration tools such as wikis, blogs and discussion forums at a departmental level, NRCan continues to be recognized for its innovative and collective leadership approach to knowledge management. Employees are embracing these tools not only to enable collaboration and integration of information across organizational and regional boundaries, but to support culture change and renewal in the workplace.
On the human resources (HR) side, NRCan continued to make progress by implementing the first-ever departmental HR plan, based on the work of the department's Human Resources Renewal Committee. Accomplishments for 2008-09 include: hiring 113 post-secondary graduates into indeterminate positions; implementing a Term Employee Management Strategy to enable term employees to compete for indeterminate positions; creating a Core Competency Task Team to develop a set of core competencies linked to the talent management of all employees; and launching the Visible Minority Talent Management Program. These efforts improved the recruitment, development and advancement of NRCan's workforce, gained recognition as a best practice on HR planning within the federal family, and were highlighted in the Report of the Expert Panel on Integrated Business and HR Planning.
NRCan also worked towards addressing the significant real property challenges it faces. This required close attention as the average age of departmental assets is 45 years. A large majority of these assets have never received a full renovation treatment typically undertaken when a building exceeds 25 years of age. NRCan is addressing these challenges by: advancing a long term capital plan; working through the departmental real property management framework; and coordinating with the Real Property Strategy for the National Capital Region.
Another key management priority was the creation of a formal administrative structure to better integrate and manage the coordination of the natural resources portfolio. To that end, the department established the Portfolio and Consultation Management Branch and created the DM-chaired inter-portfolio Heads of Agency group that was tasked with discussing key issues and areas of concern. These actions enhanced portfolio coordination within the department by fostering coherent policy implementation, good governance, effective communication, information sharing and accountability.
Risk Analysis
As the primary federal department responsible for natural resources, NRCan managed several significant risk factors that had the potential to impact priorities and on-going activities. These, and other risks pertaining to the delivery of NRCan's entire suite of activities, were closely monitored, examined and managed at the executive level over the course of the fiscal year.
Economic Downturn – Over the year, the primary risks for Canada, the natural resource sectors and the department were related to the global recession. Improving economic performance and advancing environmental responsibility was made more challenging as resource companies delayed major investments, suspended production and laid-off workers. These conditions have affected national economic indicators, as well as the livelihood of communities across the country.
To address the conditions created by the recession, NRCan acted by developing and obtaining the policy and spending authorities required to implement key measures within Canada's Economic Action Plan. The design and eventual implementation of the measures outlined in Canada's Economic Action Plan will work to position the country and the natural resource sectors for recovery. For example, in order to provide immediate economic stimulus, NRCan worked to design an expansion of the ecoENERGY Retrofits for Homes Program. When fully implemented, this expanded program will stimulate consumer spending, improve energy efficiency as well as maintain and create jobs. In addition, the department worked collaboratively to design the parameters and received policy authority for the Community Adjustment Fund, which will be delivered by the Regional Development Agencies, Industry Canada (IC) and Indian and Northern Affairs Canada (INAC). This fund will address the impacts and risks of the downturn by fostering economic development at the community level.
The department also worked to maintain key jobs and improve the long-term competitiveness of the natural resource sectors. To address the challenges facing the struggling forestry sector, NRCan developed multiple initiatives to encourage innovation, develop new and emerging technologies, and diversify markets for Canadian products. In order to help the Canadian energy sector address the risks related to environmental performance and competitiveness, NRCan developed a Clean Energy Fund. This fund will support greater use of technology that reduces greenhouse gas emissions from energy production (e.g., large-scale carbon capture and storage projects) and will enable research on emerging clean energy technologies. This is a critical area of work that will support green jobs, maintain market access in the US, and help to meet climate change objectives.
Management of the medical isotope supply chain – Atomic Energy of Canada Limited's (AECL) Chalk River Laboratories produce more than a third of all medical isotopes used worldwide, yet the facility is aging rapidly and is in need of repair. At risk is the safe and secure supply of these isotopes. NRCan, Health Canada and AECL have been collaborating closely to ensure the effective management of the isotope supply chain, now and for the future. This ongoing and priority effort has included: full implementation of the recommendations from the Talisman Report commissioned by the Canadian Nuclear Safety Commission and AECL; investing in isotope production-related studies at McMaster University (Hamilton, Ontario); funding a University of British Columbia TRIUMF workshop on accelerator-based photo fission; and the creation of an effective Protocol for Notification and Information Sharing Concerning Shortages of Medical Isotopes.
Timely delivery of Canada's submission to the United Nations Convention on the Law of the Sea (UNCLOS) – Due in large part to the difficult working conditions in the Arctic, there is an ongoing risk that the department would be unable to meet the timelines required by the UNCLOS. A continued diligent approach to the delineation of the continental shelf is required as data collection is expected to be completed by 2012 and case presentation to the U.N. is expected by 2013. A number of actions were taken in 2008-09 to be responsive to changed circumstances and opportunities and to improve monitoring and planning as a way of ensuring the success of this initiative. The ADM steering committee received weekly updates and met twice during the year and the Federal Advisory Committee met three times during the same period. Efforts were also taken to enhance collaboration with Defence Research and Development Canada, Department of Foreign Affairs and International Trade, and the Department of Fisheries and Oceans to continue to advance the project. To date progress has been good and NRCan anticipates that the deadline will be successfully met.
Relocation of the CANMET Materials Technology Laboratory (MTL) – There were also risks related to the relocation of the CANMET-MTL to McMaster Innovation Park. Potential delays in the relocation could have resulted in cost overruns and slowdowns in the delivery of research programs. NRCan took a number of measures to ensure the timely transition of the laboratory including conducting general monitoring and assessments, as well as collaboration with both academia and industry. An extensive risk management plan was developed and risk management controls for the construction project include the development of detailed construction planning documents, tight project management as outlined in the Project Charter and the Project Management Procedures document, and strong coordination through a Project Management Working Group. Construction on the project started on December 8, 2008 and employees are expected to move to the new facilities in Hamilton in late-2010.
Summary of Performance
Financial Resources ($M)
| Main Estimates | Total Authorities | Actual Spending | |
|---|---|---|---|
| Program Spending | 1,255.4 | 1,392.9 | 1,184.9 |
| Statutory Programs – Atlantic Offshore | 1,087.4 | 3,494.0 | 3,492.6 |
| Total | 2,342.8 | 4,886.9 | 4,677.5 |
Human Resources (Full-time Equivalents)
| Planned | Actual | Difference |
|---|---|---|
| 4,470 | 4,372 | (98) |
Performance Summary
| Strategic Outcome 1: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians | ||||||
|---|---|---|---|---|---|---|
Performance Indicator: Contribution
of natural resource sectors to the annual GDP (annual) |
Performance: In 2008, Canada's natural resource sectors accounted for 12 percent of the gross domestic product and employed roughly 850,000 people. As well, they accounted for 27 percent of all private sector investment and over 50 percent of Canada's exports. As the global recession took hold in late 2008, Canada's natural resources sectors experienced production slow-downs, lay-offs and postponed investments. NRCan made a substantive contribution to Canada's Economic Action Plan, developing initiatives which will stimulate economic activity in these sectors and support resource-dependent communities in transition. |
|||||
| Program Activity (Main Estimates) |
2007-08 Actual Spending |
2008-09 ($M) | Alignment to
GoC Outcomes (or statutory obligations) |
|||
| Main Estimates | Planned Spending | Total Authorities | Actual Spending | |||
| 1.1 Economic opportunities for natural resources1 | 198.1 | 189.9 | 193.4 | 247.5 | 231.6 | Strong Economic Growth |
| 1.2 Natural resource-based communities | 18.5 | 29.5 | 29.6 | 25.4 | 19.0 | Strong Economic Growth |
| Strategic Outcome 2: Canada is a world leader in environmental responsibility in the development and use of natural resources |
||||||
Performance Indicator: Extent
of NRCan knowledge in natural resources management and
land-use decisions (annual) Percent rate of Canada's environmental performance compared to other countries (over five years) |
Performance: Performance information shows that NRCan knowledge in natural resource management and land-use decisions is being used by other government departments and stakeholders more than ever, and that the demand for our knowledge is projected to rise steadily over the next decade. Canada continued to steadily reduce its greenhouse gas (GHG) emissions intensity decreasing 12.4 percent from 2000 to 2006 (kg of CO2 / $U.S. using 2000 prices and exchange rates) while the average OECD country GHG emissions intensity decreased 10.2 percent during the same period (source: International Energy Agency (Organization for Economic Cooperation and Development – Carbon Dioxide Emissions from Fuel Combustion 2008 Statistics). |
|||||
| Program Activity (Main Estimates) |
2007-08 Actual Spending |
2008-09 ($M) | Alignment to
GoC Outcomes (or statutory obligations) |
|||
| Main Estimates | Planned Spending | Total Authorities | Actual Spending | |||
| 2.1 Clean energy2 | 319.9 | 559.6 | 562.0 | 611.5 | 536.6 | A Clean and Healthy Environment |
| 2.2 Ecosystem risk management3 | 159.5 | 226.2 | 226.6 | 229.3 | 164.5 | A Clean and Healthy Environment |
| Strategic Outcome 3: Natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada | ||||||
Performance Indicator: Extent
to which the Minister's obligations are met for the safety, security and effective governance of Canada
(annual) Rate in uptake of NRCan's information by users (annual) |
Performance: Canada's leadership demonstrates a strong commitment to ensure the safety and security for all Canadians. Evidence shows that geoscience knowledge and tools were an important source of information for stakeholders, which, in turn, enabled advances in the area of climate change impacts and adaptation, mining infrastructure and Canada's sovereignty. Environmental challenges continue to be of concern for all Canadians. There was an increase in the uptake of NRCan-produced landmass knowledge by natural resource stakeholders to mitigate and adapt to natural and man-made hazards. |
|||||
| Program Activity (Main Estimates) |
2007-08 Actual Spending |
2008-09 ($M) | Alignment to
GoC Outcomes (or statutory obligations) |
|||
| Main Estimates | Planned Spending | Total Authorities | Actual Spending | |||
| 3.1 Adapting to a changing climate and hazard risk management | 117.5 | 111.6 | 111.9 | 118.1 | 102.6 | An Innovative and Knowledge-based Economy |
| 3.2 Natural resources and landmass knowledge for Canadians | 136.4 | 138.6 | 139.1 | 152.5 | 129.6 | An Innovative and Knowledge-based Economy |
| 3.3 Geomatics Canada Revolving Fund | 3.0 | 1.9 (1.9) |
1.9 (1.9) |
8.6 | 1.0 | An Innovative and Knowledge-based Economy |
| Sub-Total | 952.9 | 1,255.4 | 1,262.6 | 1,392.9 | 1,184.9 | |
| Statutory Programs | ||||||
| 1.1 Economic opportunities for natural resources4 | 2,388.2 | 1,087.4 | 1,087.4 | 3,494.0 | 3,492.6 | Statutory Obligations |
| Total NRCan | 3,341.1 | 2,342.8 | 2,350.0 | 4,886.9 | 4,677.5 | |
[1] Actual spending under activity 1.1 was higher than planned due to new approvals ($22.8 million) received via the Supplementary Estimates including funding to provide the public geoscience information needed to encourage investment in natural resource development in northern Canada and funding to promote Canada's forestry sector internationally as a model for environmental innovation and sustainability. In addition, NRCan received the following supplemental allocations: $3.8 million for collective bargaining; $5.7 million carried over from the previous fiscal year; and $2.2 million from TB Vote 23 (severance pay, maternity leave, etc). Partially offsetting these increases was funding reprofiled to future years ($11.1 million) and miscellaneous surpluses including those resulting from the economic slowdown.
[2] Actual spending under activity 2.1 was less than planned because $55.4 million in spending was deferred to future years. Miscellaneous surpluses including those resulting from the economic slowdown were also a contributing factor to lower than expected spending. NRCan received new approvals through the Supplementary Estimates ($32.5 million) including funding to implement adaptation initiatives in support of Canada's Clean Air Agenda and funding in support of Sustainable Development Technology Canada. NRCan also received the following supplemental allocations: $5.8 million for collective bargaining; $8.7 million carried over from the previous fiscal year; and $3.4 million from TB Vote 23 (severance pay, maternity leave, etc.).
[3] Actual spending under activity 2.2 was less than planned because $57.4 million in spending was deferred to future years. Miscellaneous surpluses including those resulting from the economic slowdown were also a contributing factor to lower than planned spending. NRCan also received the following supplemental allocations during the fiscal year: $5.2 million for collective bargaining; $7.8 million carried over from the previous fiscal year; and $3.1 million from TB Vote 23 (severance pay, maternity leave, etc).
[4] Actual spending includes the following statutory payments: Nova Scotia Offshore Revenue Account $577.4 million; Newfoundland Offshore Petroleum Resource Revenue Fund $2,351.0 million; and Newfoundland Fiscal Equalization Offset Payments $556.7 million. Pursuant to the Atlantic Offshore Accords, NRCan receives the federal royalty revenues related to the offshore – which were greater than planned due to significant increases in oil and gas production levels – and subsequently makes payments to the provinces equivalent to the royalty revenues received.
Expenditure Profile
NRCan's actual spending for 2008-09 was $4,677.5 million. Of this amount, $3,492.6 million was in support of the Atlantic Offshore Statutory Accords, and the remaining $1,184.9 million was in support of departmental initiatives. The actual spending trend for NRCan departmental initiatives continued to increase by 20 percent or $202.2 million from 2006-07, and 24 percent or $232.0 million from 2007-08. Increased spending can be attributed to funding received for ecoENERGY for Biofuels ($120 million), Adaptation Initiatives in Support of Canada's Clean Air Agenda ($87 million), Implementing Geo-mapping for Energy and Minerals ($12 million), the Leadership for Environmental Advantage in Forestry ($5 million) and funding for various other initiatives. These increases are offset by reductions in other initiatives.
The spending trend for the Atlantic Offshore Statutory Accords has increased dramatically since 2006-07 due to significant increases in oil prices and production. There has been an increase of $2,789.6 million (396 percent) from 2006-07, and $1,104.4 million (46 percent) 2007-08. These expenditures were almost entirely offset by oil and gas royalty revenues. Pursuant to the Atlantic Offshore Accords, NRCan receives the federal royalty revenues related to the offshore and subsequently makes payments to the provinces equivalent to the royalty revenues received.
The graph below shows the department and the Atlantic Offshore Statutory Accord spending over a six-year period (three-year actual spending and three-year planned spending).
Planned spending of $1,467 million in 2009-10 represents an increase of $282 million from 2008-09. This increase is attributed to the ecoENERGY for Biofuels initiative and Budget 2009 announcements for ecoENERGY Retrofit Program, and Forestry Market Diversification and Innovation. The planned spending increases for fiscal year 2010-11 are attributed to the Clean Energy Agenda, the ecoENERGY for Biofuels initiatives, the Sustainable Development Technology Canada initiatives, and Budget 2009 announcements for the ecoENERGY Retrofit Program, and Forestry Market Diversification and Innovation. The decreased planned spending in 2011-12 is the result of sunsetting and reduced funding for initiatives including Clear Air Regulatory Agenda, Clean Energy Agenda, Nuclear Legacy Liabilities and ecoENERGY for Biofuels. Planned spending for the Atlantic Offshore Statutory Accords was forecasted to return to near 2006-07 levels; however, this is dependent on oil pricing and production.
Voted and Statutory Items ($M)
| Voted and Statutory Items | Truncated Vote or Statutory Wording | Actual Spending 2006-07 |
Actual Spending 2007-08 |
Main Estimates 2008-09 |
Actual Spending 2008-09 |
|---|---|---|---|---|---|
| 1 | Operating Expenditures | 643.95 | 678.6 | 762.8 | 719.26 |
| 5 | Grants and Contributions | 273.8 | 211.4 | 437.9 | 382.07 |
| (S) | Minister of Natural Resources – Salary and Motor Car Allowance | 0.1 | 0.1 | 0.1 | 0.1 |
| (S) | Contributions to Employee Benefit Plans | 56.8 | 57.9 | 54.6 | 58.3 |
| (S) | Infrastructure costs relating to the exploration, development, production or transportation of oil and gas in the offshore area of Nova Scotia | 0.0 | 0.6 | 0.5 | 0.6 |
| (S) | Canada-Newfoundland Offshore Petroleum Board | 2.0 | 2.2 | 6.0 | 4.1 |
| (S) | Canada-Nova Scotia Offshore Petroleum Board | 2.4 | 2.6 | 2.9 | 2.8 |
| (S) | Payments to the Nova Scotia Offshore Revenue Account | 275.4 | 493.2 | 407.3 | 577.48 |
| (S) | Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund | 313.4 | 1,701.0 | 670.7 | 2,351.09 |
| (S) | Grant to the Canada Foundation for Sustainable Development | 0.0 | 1.6 | 0.0 | 19.010 |
| (S) | Newfoundland Fiscal Equalization Offset Payments | 109.8 | 188.6 | 0.0 | 556.711 |
| (S) | Grants in Support of Energy Costs Assistance Measures | 7.1 | 0.0 | 0.0 | 0.0 |
| (S) | Spending of proceeds from the disposal of Crown Assets | 0.2 | 0.3 | 0.0 | 0.4 |
| (S) | Refund of amounts credited to revenues in previous years | 1.3 | 0.0 | 0.0 | 0.0 |
| (S) | Grant to the University of Calgary, Institute for Sustainable Energy, Environment, and Economy | 0.0 | 0.0 | 0.0 | 5.012 |
| (S) | Geomatics Canada Revolving Fund
|
(0.5) | 3.0 | 0.0 | 0.9 |
| Total | 1,685.7 | 3,341.1 | 2,342.8 | 4,677.5 | |
[5] Vote 5 Capital from fiscal year 2006-07 is included in Vote 1 Operating Expenditures.
[6] Under Vote 1, NRCan received additional approvals during the fiscal year through the Supplementary Estimates totalling $26.5 million including funding to implement adaptation initiatives in support of Canada's Clean Air Agenda and funding to provide the public geoscience information needed to encourage investment in natural resource development in northern Canada. NRCan also received the following supplemental allocations during the fiscal year: $20.0 million for collective bargaining; $30.0 million carried over from the previous fiscal year; and $11.8 million from TB Vote 23 (severance pay, maternity leave, etc.). Actual spending under Vote 1 was less than planned because $89.2 million in spending was deferred to future years. Miscellaneous surpluses including those resulting from the economic slowdown were also a contributing factor to lower than planned spending
[7] Under Vote 5, NRCan received additional approvals during the fiscal year through the Supplementary Estimates totalling $12.0 million including funding to promote Canada's forestry sector internationally as a model for environmental innovation and sustainability and funding to implement adaptation initiatives in support of Canada's Clean Air Agenda. Actual spending under Vote 5 was less than planned because $66.9 million in spending was deferred to future years.
[8] The original 2008-09 Main Estimates forecast was based on royalty forecasts from the province. The 2008-09 actual expenditures reflect an increase in payments to the province resulting from an increase in gas prices.
[9] The original 2008-09 Main Estimates forecast was based on royalty forecasts from the province. These forecasts were significantly understated when compared to 2008-09 actual expenditures due to increases in both oil prices and production levels.
[10] The statutory component of the Grant to the Canada Foundation for Sustainable Development, announced in 2007, was not reflected in the 2008-2009 Main Estimates and resulted in $19.0 million of expenditures higher than planned spending.
[11] Regulations under the provisions of the Fiscal Equalization Offset Payments in the Canada-Newfoundland Atlantic Accord Implementation Act allow Newfoundland and Labrador to be compensated for losses to equalization payments due to increases in offshore oil and gas revenues. The province has an option of using the formula in accordance with the Act or can use the generic calculation under the equalization rules. If the latter is chosen, the Newfoundland Fiscal Equalization Offset payment is zero. The increase reflects the province's decision to use the Accord Act formula and the $556.7 million represents the equalization offset payment for 2008-09. The equalization offset payment is calculated by Finance Canada and NRCan is notified in April.
[12] Appropriation for the $5.0 million statutory grant to the University of Calgary, Institute for Sustainable Energy, Environment, and Economy was provided via the Budget Implementation Act 2008, which occurred after the establishment of the 2008-09 Main Estimates.