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Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Barriers to competition (OECD assessment of accessibility to Canadian market) |
Maintain or improve 6th-place ranking* Status: Mostly met |
Based on the 2008 measure of the OECD PMR indicators, Canada is ranked 5th on the list of most inaccessible markets among OECD countries. In the 2003 PMR report, Canada ranked 11th. 11 The Barriers to Competition ranking is based on legal barriers, antitrust exemptions, barrier to entry in network sectors and barrier to entry in services. | Declining (raw score in 1998: 1.85; in 2003: 2.00; and in 2008: 2.09. The decline is in 3 out of 4 areas of Barriers to Competition: legal barriers, barrier to entry in network sectors and barrier to entry in services.) |
Number of days taken to register a new company |
3 days Status: Somewhat met |
The process of registering a new company in Canada takes 5 days. The number of days taken increased from 3 (2004–08) to 5 (2009–10).12 | Declining (due to change in procedures related to business registration) |
Canada's Economic Action Plan Highlight |
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As part of the EAP, two changes to existing acts were passed. Changes to the Investment Canada Act will encourage new foreign investment, increase transparency and predictability, and allow for national security reviews of foreign investments in Canada. Changes to the Competition Act will protect consumers and businesses from anti-competitive behaviour, improve Canada’s business climate, and deter misleading advertising and mass-marketing fraud. |
With the rapidly evolving global business environment, adjustments are needed to address the modernization of marketplace framework policies that are fundamental to the functioning of a market economy. In support of an efficient and competitive marketplace, Industry Canada fosters competitiveness by developing and administering economic framework policies that promote competition and innovation; support investment and entrepreneurial activity; and instill consumer, investor and business confidence.
In an effort to ensure the Canadian marketplace is efficient and competitive, Industry Canada developed a guide to help assess how consumers may be affected by proposed policies. This will provide another market assessment tool and will result in improved impact analysis statements. The Office of the Superintendent of Bankruptcy has refined its framework and initiated a review of its compliance framework to identify potential gaps and risks.
Lessons Learned |
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The May 2008 Report of the Auditor General of Canada recommended that Industry Canada establish a formal system and practices to periodically review its spectrum and radio licence fees. In response, in 2009–10, Industry Canada began a review of specific licence fees as part of a 10-year review cycle of all fees. This will ensure that Spectrum Management approaches evolve with development in the industry. |
Industry Canada continued to build a Canadian marketplace that is efficient and competitive through the following program activities:
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
---|---|---|---|
Percentage of cases for which regulatory timelines and/or service standards are met |
80% Status: Exceeded |
86.8% |
New indicator |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
46.9 | 209.2* | 43.2 |
Planned | Actual | Difference |
---|---|---|
1,791 | 1,911 | 120 |
* CIPO accounts for $152 million accumulated surplus from previous years and deferred revenues.
In keeping our commitments to protect the fairness, integrity, efficiency and competitiveness of the Canadian marketplace through regulation and promotion, Industry Canada progressed its work on the development of proposed amendments to the Weights and Measures Act and the Electricity and Gas Inspection Act and associated necessary changes to their regulations. Due to the legislative timetable, the bill to amend the acts was not tabled until April 15, 2010.
On September 18, 2009, sections 36 and 47 of the Statutes of Canada came into force. This reform is intended to modernize the insolvency framework to improve the treatment of workers in the event that an employer becomes bankrupt or insolvent, to return assets to productive use, and to promote restructuring instead of liquidation. This encompasses the Bankruptcy and Insolvency (BIA) General Rules, the Companies’ Creditors Arrangement Act (CCAA) Regulations, Superintendent of Bankruptcy’s Directives, and BIA Forms.
In 2009–10, Corporations Canada launched a new online system that improved the processing of amendments and allowed our clients to benefit from new “fast-fill” options and to attach and upload documents. Other new features include “Intermediary Keys,” which offer intermediaries access to several benefits and special services — at no charge — and “Corporations Keys,” an important new security feature that will affect the way in which all federally incorporated companies will fulfill their corporate legal responsibilities in the future.
To modernize the intellectual property (IP) regime, an Enterprise Solutions Branch was established to consolidate information technology-related expertise with Enterprise Business Renewal (EBR) efforts. An online fee payment form was also introduced to streamline the routing of paper requests and the processing of payments while increasing the security of financial information for clients. EBR will improve the quality and consistency of IP rights, and simplify operational and administrative processes, the Department’s ability to keep up with application volumes, and the services that benefit staff and optimize client self-sufficiency.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
---|---|---|---|
Percentage of policies, legislation and regulations developed, updated or reviewed and consultations conducted as identified in annual branch business plans/strategic plans/operational plans |
80% of identified initiatives Status: Exceeded |
92% Proposed ECPA introduced in the House of Commons on April 24, 2009. Consultations completed and proposed legislative amendments to the PIPEDA prepared. |
Improving Target was met at 92% compared with last year’s (which was at 90%). |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
87.2 | 115.4 | 110.4* |
Planned | Actual | Difference |
---|---|---|
751 | 636 | 115** |
** The variance in FTEs can be attributed to an internal reorganization.
Industry Canada has made significant progress in the area of radiocommunications and telecommunications infrastructure and the online economy. The Department has concluded two sealed-bid auction processes. The first process was conducted in May 2009 for spectrum to provide enhanced air-ground services, such as Internet onboard aircraft. Two spectrum licences were issued to a single licensee for $2.1 million. The second process took place in June 2009 for 10 spectrum licences in the 2.3 and 3.5 GHz bands. All 10 licences were issued to five licensees for a total of $124,000.
To help meet the growing demand for access to radiocommunications and telecommunications, the Department also played a vital role during the Vancouver 2010 Olympic and Paralympic Winter Games. Industry Canada fully met spectrum management commitments to the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC). Before the Games, Industry Canada authorized more than 2,800 frequencies. During the Games, Industry Canada investigated 155 cases of radio interference and unauthorized radio use and was able to resolve, well within service standards, any interference or unauthorized radio use that might have disrupted public safety, competitions and related events, such as the opening ceremonies and ongoing Games operations.
Industry Canada also focused on finalizing new Broadcast Procedures and Rules (BPR) on digital television (DTV). The Department released Canada Gazette BPR-10: Application Procedures and Rules for Digital Television (DTV) Undertakings to allow the submission of DTV applications for the DTV transition and undertook extensive processing of U.S. DTV coordination requests to meet the U.S. digital TV transition deadline of June 12, 2009. The Department also processed Canadian DTV applications and other radio applications in a timely manner and provided engineering advice on policy, licensing and consumer issues.
In accordance with the OECD’s Seoul Declaration for the Future of the Internet Economy, Industry Canada continued to strengthen the infrastructure and policy and regulatory environments required to support the digital economy through implementation of the Broadband Canada: Connecting Rural Canadians initiative, advancement of PIPEDA amendments, the proposed ECPA legislation and the development of a digital economy strategy.
The Department also delivered standards and technical regulations to enable the licensing of new cognitive radio in 3650–3700 MHz and developed a comprehensive market surveillance procedure in consultation with the manufacturers that was approved by the Department’s senior management. An overview of the telecommunications equipment regulatory process was documented and posted publicly on the Industry Canada website. Industry Canada also completed a study on transborder data flows and a trilateral consultative process in order to advance work related to the implementation of the Statement on the Free Flow of Information and Trade in North America.
Industry Canada also continued to be engaged in promoting Canada’s interests through participation in the International Telecommunication Union (ITU). The outcomes of the ITU World Radiocommunication Conference (WRC) 2007 and the ITU Plenipotentiary Conference 2006 have been tabled in Parliament and will be ratified in 2010–11. Industry Canada also participated in ITU-R Study Groups on mobile, fixed, space science, satellite and broadcasting matters to advance Canadian interests and to prepare for WRC 2012. The Department also advanced a results-based accountability framework within the ITU, in addition to linking the ITU strategic and financial plans to enhance the Union’s transparency and accountability.
The 2009 Final Evaluation of Industry Canada’s Involvement in the International Telecommunication Union — Recommendations concluded that there is a continued need for Industry Canada’s involvement in the ITU, that Industry Canada has been largely successful in achieving most of its intended outcomes in relation to its ITU activities, and that the Department’s involvement in the ITU provides good value to Canada.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Number of new outreach initiatives to assist consumers in accessing information and tools that will help them make informed purchasing decisions |
1 Status: met all |
An outreach campaign consisting of 9 articles on basic buying tips and elements to consider before and after a purchase is made was distributed electronically to over 4,200 news and web editors across Canada. |
Declining |
Number of government policies and/or legislation developed, updated or reviewed by the Office of Consumer Affairs |
2 Status: Exceeded |
Facilitated 3 Order-in-Council processes to assist provinces (Alberta, British Columbia and Ontario) in adopting provincial payday lending regulations. |
New indicator |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
4.5 | 5.2 | 5.1 |
Planned | Actual | Difference |
---|---|---|
23 | 23 | 0 |
In order to ensure that consumers’ interests are taken into consideration when developing government policies and to maintain consumer confidence and trust in the marketplace, Industry Canada, through the Office of Consumer Affairs (OCA), completed a strategy and prepared an implementation plan to mitigate the challenges faced by the most vulnerable consumers. The strategy included potential initiatives designed to raise awareness of consumer vulnerability within the federal and provincial government regulatory community and within the standards community. The OCA, with the Department of Justice Canada and provincial governments, facilitated the Order-in-Council process to assist three provinces (Alberta, British Columbia and Ontario) in adopting provincial regulations that control the maximum cost of borrowing and create fair contract terms to protect consumers in the payday lending market. The Department has also contracted with the Canadian Standards Association to provide secretariat services for a committee that is developing an International Organization for Standardization standard on business-to-consumer electronic commerce transactions.
The OCA collaborated with the Consumer Measures Committee (CMC), made up of federal, provincial and territorial consumer protection authorities and others, to create new consumer information products. Based on usability results and strategic planning exercises, proposals for the redesign of consumerinformation.ca and the Complaint Courier, an online resource to help consumers complain effectively, were submitted to Industry Canada’s Chief Information Office for consideration and options analysis, and the CMC website was redesigned to update its look and bring it into compliance with Common Look and Feel for the Internet 2.0 (CLF 2.0) guidelines. The implementation of these guidelines ensures the consistent and predictable presentation of government services and content to all Canadians. In addition, a series of articles on the transition to digital television broadcasting were distributed to community news editors in March 2009 for publication in April 2009.
Industry Canada provided consumer information on the Canadian Warranty Commitment Program, a federal initiative designed to ensure that consumer warranties would be honoured on new vehicles purchased from General Motors of Canada and Chrysler Canada, in the event that either of these companies failed during their restructuring from April to September of 2009.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Dollar savings to consumers from Bureau actions that stop anti-competitive activity |
Increase over current dollar savings (estimated target at $330 million) Status: Mostly met |
$281 million Estimated overcharges to consumers (or economic harm) for the duration of the infraction, prior to Bureau actions concluded in 2009–10. This is a conservative estimate based on similar methodologies used by antitrust agencies in other countries. |
Improving In 2008–09, dollar savings to consumers were estimated at $254 million. |
Percentage of economy subject to market forces |
Increase or maintain current percentage (approximately 82% of GDP) Status: Met all |
Approximately 82% of the Canadian GDP is subject to market forces. According to a study conducted by the Competition Bureau in 2005, the proportion of economic activity covered by the Competition Act has increased by 10% since its enactment in 1986. |
No change In 2008–09, approximately 82% of GDP was subject to market forces. |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
42.6 | 49.6 | 47.7* |
Planned | Actual | Difference |
---|---|---|
452 | 436 | 16 |
Industry Canada, through the Competition Bureau, committed to developing the most effective, transparent and efficient ways to implement the amendments to the Competition Act (the “Act”) in 2009–10. Changes to the conspiracy provision of the Act will allow the Bureau to enforce Canada’s anti-cartel law more effectively against serious offenders: those who agree to fix prices, allocate markets or restrict output. The Competitor Collaboration guidelines are intended to assist firms in assessing the likelihood that a competitor collaboration will raise concerns under the criminal or civil provisions of the Act and, if so, whether the Commissioner would commence an inquiry in respect of the collaboration.
Combatting international and domestic cartels remained an important enforcement priority for the Bureau in 2009–10. The Bureau is actively pursuing international cartels and engaged with its international counterparts on 19 files. In June 2009, the Bureau uncovered a conspiracy to fix the prices of air cargo surcharges for shipments on certain routes from Canada. The Bureau estimates that the air carriers imposed approximately $31.5 million in air cargo surcharges during the period of the conspiracy. Over $14.6 million in fines were levied on international air carriers for their participation in this cartel. The Bureau continued to address domestic bid-rigging, securing two convictions for rigging bids for federal government information technology service contracts. The Bureau has also conducted 52 outreach presentations for approximately 1,772 people, aimed at deterring bid-rigging activity, particularly in the Canadian public sector.
In 2009–10, the Bureau targeted the increasing number of misleading and fraudulent performance claims affecting Canadians in the areas of health and the environment. It partnered with Health Canada in releasing a consumer warning on unauthorized products to treat or prevent the H1N1 flu virus, including those with fraudulent claims, in November 2009. The Bureau registered nine consent agreements with the Competition Tribunal concerning Canadian hot tub retailers who were alleged to have made unsupported claims that their Dynasty Spas products were associated with the ENERGY STAR Program. As a result of the Bureau’s actions, the hot tub and spa retailers agreed to stop making the representations and to correct the misinformation in the marketplace.
The Bureau continued to review mergers and acquisitions and challenge the few that resulted in a substantial lessening or prevention of competition. In July 2009, the Bureau reached a consent agreement with Suncor Energy Inc. and Petro-Canada, addressing the Bureau’s concerns that the merger would substantially lessen competition, which could have led to increased gasoline prices. The merger review was one of the most complex undertaken by the Bureau and was completed in under four months. In 2009–10, the Bureau received 206 merger filings; the Mergers Branch has consistently met service standards in the vast majority of cases, continuing to meet our strong record of clearing over 90% of merger filings within the prescribed service standards of each complexity level.
In February 2010, the Competition Bureau filed a challenge with the Competition Tribunal against the anti-competitive rules imposed by the Canadian Real Estate Association that limit consumer choice and prevent innovation in the market for residential real estate services. The Bureau is challenging rules that require sellers who want to have their property listed on the Multiple Listing Service system to purchase, and pay for, services that they may not want. As part of the Bureau’s continuing efforts to ensure transparency and predictability in its enforcement policies, the Enforcement Guidelines on “Product of Canada” and “Made in Canada” Claims were published in December 2009 following public consultation in July 2009. As part of its commitment to developing the most effective and efficient ways to implement the amendments to the Competition Act, the Bureau held technical round tables to discuss the merger and competitor collaboration guidelines in advance of releasing its draft Merger Review Process and the draft Competitor Collaboration Guidelines for public comment. The Bureau also held general consultations and outreach to multiple constituencies to give businesses and consumers an opportunity to develop a better understanding of how the amendments to the Act will affect them. In September 2009, the Bureau published its finalized Merger Review Process Guidelines, which provide detailed guidance on the Bureau’s general approach to administering the new, two-stage merger review process.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Innovation Index (measure of the adoption of new technology, and the interaction between the business and science sectors) |
Maintain or improve 12th-place ranking Status: Met all |
Canada has maintained its 12th-place ranking in innovation out of 133 countries.13 The Innovation Index includes capacity for innovation; quality of scientific research institutions; company spending on R&D; university–industry collaboration in R&D; government procurement of advanced technology products; availability of scientists and engineers; and utility patents. |
No change |
International ranking of Canada in university–industry collaboration in R&D |
Maintain 2nd-place ranking14 Status: Mostly met |
Canada ranks 3rd out of 10 comparator countries in university–industry collaboration in R&D.15 |
No change (Canada ranked 2nd from 2003 to 2006. Since 2007 Canada has ranked 3rd.) |
Number of people working in R&D of total employment numbers |
8 per 1,000 Status: Exceeded |
The latest results show that in 2005, Canada had 8.3 researchers per 1,000 of the population. This is up from 8.1/1,000 in 2004.*16 |
Improving |
Canada's Economic Action Plan Highlight |
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The KIP was provided $2 billion over two years to support deferred maintenance, repair and expansion projects at post-secondary institutions across Canada, leveraging approximately $3 billion in provincial and institutional support. Over 200 institutions and over 500 projects are being supported through KIP. For example, a University of Windsor project will build upon the region’s strengths in industrial engineering and manufacturing through the construction of a Centre for Engineering Innovation. The Centre will include classroom space and research laboratories to accommodate an additional 400 students annually, as well as an additional 25 faculty and staff. It will also house a dedicated industrial centre, equipped with offices and meeting rooms for industry, government organizations and other partners to facilitate collaborative work. The University’s vision is to align education, research and the economy for commercialization of new knowledge and promote the business acumen of researchers and students in this building. The building is expected to be the largest Leadership in Energy and Environmental Design (LEED) Gold-certified building in the region. |
Science, technology and innovation policies and programs improve Canada’s R&D capacity through the support and application of research and research infrastructure and the attraction, development and retention of highly qualified people. The Department invests in S&T to generate knowledge and ensure that Canadians are well equipped with the appropriate skill sets required to compete in the global, knowledge-based economy. These investments enable discoveries and breakthroughs to occur within Canada and allow Canadians to realize the social and economic benefits, higher standard of living and better quality of life that flow from them.
Lessons Learned |
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The recent global recession affected many Canadian aerospace and defence (A&D) companies, causing an increase in layoffs and reductions in production. Global economic recovery is underway, but the A&D industry remains fragile. As the Industrial Technologies Office (ITO) strives to optimize its operational processes and management frameworks, the organization developed the following three new service standards. Application Processing Time
Claims Processing Time
Application Assistance Response Time
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In an effort to ensure that S&T, knowledge and innovation are effective drivers of a strong Canadian economy, Industry Canada supported the government’s Northern Strategy and Arctic agenda, led by Indian and Northern Affairs Canada.
Industry Canada continued to ensure that S&T, knowledge and innovation are effective drivers of a strong Canadian economy through the following program activities:
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Number of ST&I outreach activities with other government departments, agencies and external stakeholders |
20 Status: Exceeded |
Industry Canada led or participated in 21 key outreach activities involving other science-based departments and agencies, provincial and territorial counterparts, and stakeholders at home and abroad to advance Canada’s S&T agenda and provide the government with a strong foundation for policy development. |
New indicator |
Planned Spending | Total Authorities | Actual Spending |
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264.3 | 1,272.4 | 1,271.1* |
Planned | Actual | Difference |
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59 | 75 | 16** |
To foster innovation and to ensure that Canadians benefit from scientific discoveries, Industry Canada coordinated and advanced the S&T Strategy, Mobilizing Science and Technology to Canada’s Advantage, across government. As lead department on S&T, Industry Canada worked with provincial and territorial governments, the academic community, and domestic and international stakeholders to advance the S&T agenda. The Progress Report on Canada’s Science and Technology (S&T) Strategy outlined key achievements to date on the commitments made in the Strategy, such as strengthening partnerships to advance the commercialization of technologies, products and services.
Industry Canada worked with the federal granting councils to enhance private sector engagement in their programs, such as the Industrial Research and Development Internships Program. To attract and keep world-class researchers in Canada, the Canada Excellence Research Chairs Program and the Vanier Canada Graduate Scholarships Program were successfully introduced in 2009–10. Industry Canada also worked with the Department of Finance in 2009–10 to add $135 million in funding for the Technology Clusters Program, which builds partnerships in targeted technologies, and $222 million for the TRIUMF program that purses subatomic science.
The Department also shared and learned best practices for S&T policies through participation in multilateral forums, including the OECD and G8 Carnegie Group. The Department’s work with Foreign Affairs and International Trade Canada benefited Canada’s S&T agenda internationally. As part of the International S&T Partnership Program Steering Committee, the Department participated in discussions on S&T programs in other jurisdictions (including China, India, Brazil, Israel and the U.S. (California)). The Department also partnered with the TBS to respond to the 2009 Spring Report of the Auditor General of Canada, Chapter 2, “Intellectual Property” before the Parliamentary Standing Committee on Public Accounts in November 2009. The report looked at how intellectual property is managed at National Research Council Canada and other science-based federal organizations, as well as the roles of Industry Canada and TBS in monitoring and evaluating intellectual property policies (e.g., intellectual property arising under Crown procurement contracts). As part of the action plan, Industry Canada will be undertaking an evaluation of the TBS policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.
Industry Canada also manages funding agreements with a total of 17 independent research organizations, including a $5-million funding agreement with the Ivey Centre for Health Innovation and Leadership to help establish this new Centre. This initiative provides valuable support to research and development and infrastructure projects, which help Canada to attract and retain world-class researchers.
In addition, the Government of Canada’s Science, Technology and Innovation Council (STIC), which reports to the Minister of Industry, provided the government with policy advice on S&T and innovation issues and launched its inaugural state-of-the-nation report, which benchmarked Canada’s S&T performance against international standards of excellence.
Canada’s EAP provided $4.9 billion in S&T investments through Budget 2009 and another $1.4 billion through Budget 2010. Among initiatives included in the EAP were KIP ($2 billion over two years) and the CFI ($750 million). With regard to KIP, Industry Canada worked quickly and efficiently with provinces and territories and post-secondary institutions to assess KIP project proposals and secure the signing of contribution agreements. This resulted in full allocation of program funding to 536 projects by October 2009. In addition, a detailed Internet site was set up to provide details on all KIP projects.
In 2009, Industry Canada put in place a funding agreement between the Government and the CFI on the $150 million in new funding (which resulted in an additional 28 project awards by CFI under its 2009 Leading Edge and New Initiatives Funds competition), and worked closely with the CFI in the development of priorities for the remaining $600 million announced in Budget 2009. In addition, Industry Canada put in place a funding agreement with the Institute for Quantum Computing that provides $50 million in federal funding to support the establishment of this new world-class research facility, including the construction of a new building with state-of-the-art equipment that will attract faculty and students to the field of quantum computing.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Client satisfaction survey (on content, timeliness and usefulness) related to CRC technical inputs and advice used to develop telecommunications policies, regulations, programs and standards |
80% or higher Status: Not applicable |
No formal client satisfaction survey was undertaken during the year. The CRC provided over 40 contributions to Industry Canada and international standards organizations (such as the Institute of Electrical and Electronics Engineers and the ITU) in the form of technical briefs and work group participation. |
Not applicable |
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
---|---|---|---|
Increase in total sales revenues every 5 years of Canadian communications companies with a link to CRC, compared to market averages |
20% Status: Not applicable |
A study of CRC’s economic impact is undertaken every 5 years, with the next study due in 2010–11. The last study, by an external consultant (2005–06), pointed to $1.6 million in annual sales revenues from CRC spinoff companies, and cumulative industry sales of $520 million resulting from CRC IP licences. |
Not applicable |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
35.4 | 49.3 | 48.7* |
Planned | Actual | Difference |
---|---|---|
398 | 383 | 15 |
Industry Canada is committed to a competitive Canadian ICT sector. Through the CRC, the Department collaborated with the Canadian Radio-television and Telecommunications Commission (CRTC) to assess the overall broadband wireless coverage throughout Canada as part of the Broadband Canada: Connecting Rural Canadians program. The Department also provided scientific advice to the Natural Sciences and Engineering Research Council (NSERC) on the evaluation of numerous grants and programs, and hosted 19 graduate students and 49 undergraduate students from many Canadian universities to foster knowledge and technology exchange.
The CRC also provided assistance during the Vancouver 2010 Olympic and Paralympic Winter Games and provided a total of 9 spectrum monitoring (including 5 fixed, 3 mobile and 1 transportable) units to the Pacific region in support of the wireless monitoring and surveillance requirements. In addition, CRC staff was on standby 24/7 to provide immediate assistance.
Through the CRC, the Department provided ground segment technical expertise to the Canadian Space Agency (CSA) for the Ka-band Anik F2 satellite. In addition, on behalf of the CSA, the CRC managed a capacity credit of $50 million for the use of the Ka-band capacity by government and institutional users located in the northern regions of Canada for a 10-year period that began in 2005.
The CRC contributed, through studies and demonstrations, to many military programs, including the evaluation of wireless applications at various frequency bands and different operating environments (e.g., radio coverage analysis on small unmanned aerial vehicle flying at 300 meters in altitude).
Budget 2009 funding for Modernizing Federal Laboratories included the necessary maintenance, repair and upgrade of the CRC’s Shirley’s Bay government research campus, which hosts 6 different government laboratories and over 150 buildings. This investment will help protect the capital assets, as the investments made will reduce future repair costs and the risk of larger ad hoc repairs in response to failures. The investment reduces the possibilities of closures and equipment failures at the CRC labs and in turn increases the output of the R&D at the laboratories. It will also reduce the risk of a health and safety or environment incident, as well as the Industry Canada liability associated with such an event. All construction work scheduled for fiscal year 2009–10 was completed as planned.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
---|---|---|---|
Percentage of completed initiatives* designed to increase knowledge and innovation in targeted Canadian industries, as a proportion of initiatives identified in the sector’s business plan |
80% Status: Exceeded |
100% All initiatives designed to increase knowledge and innovation in targeted Canadian industries were completed as planned. |
New indicator |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
131.0 | 137.0 | 58.9* |
Planned | Actual | Difference |
---|---|---|
127 | 113 | 14 |
Industry Canada participated in the development of six TRMs to enhance the innovation capacity in targeted industries: Electric Vehicle, Wind Energy, Digital Media, Sustainable Housing, Aerospace Environmental, and Canadian Aerospace Protective Coatings, in 2009–10. An additional TRM, Textiles, was planned for 2009–10 but was completed ahead of schedule in late 2008–09. The Department also began work on the Soldier Systems TRM in collaboration with National Defence and Defence Research and Development Canada. This Roadmap is an innovative collaboration aimed at engaging industry, academia and other research organizations at the front end of Canada’s soldier modernization efforts. Four technical workshops were held in the development stage of the Soldier Systems TRM in 2009–10, with over 850 participants (70% from industry) collaborating in the knowledge exchange. The development stage of the TRM is to be completed in 2010–11. To further ongoing collaboration and cooperation on the Soldier System TRM, the Innovation Collaboration and Exchange Environment (ICEE) Wiki has been developed and implemented at Industry Canada.
Industry Canada has also played an active role in the Asia-Pacific Partnership on Clean Development and Climate (APP) on five task forces: Aluminum, Cement, Cleaner Fossil Energy, Renewable Energy and Distributed Generation, and Steel. The APP is an international forum, composed of seven countries, with the objective of reducing greenhouse gas emissions, either through new technology development or through technology transfer from developed to developing countries. Over the course of fiscal year 2009–10, 10 projects (6 for Renewable Energy, 3 for Cement and 1 for Aluminum) received financial support from the Government of Canada.
The Department also helped accelerate the commercialization of hydrogen and fuel cell technologies through domestic and international policy forums. On behalf of the Government of Canada, Industry Canada chaired two meetings of the International Partnership for the Hydrogen Economy, in Australia in May 2009 and in Washington in December 2009. This resulted in a communiqué approved by all member countries that recommends actions by the public and private sectors to further capitalize on the energy security and emissions-reductions benefits offered by the widespread adoption of hydrogen and fuel cell technologies.
In 2008 Industry Canada launched the Automotive Innovation Fund (AIF) and the Bombardier CSeries Program to support innovation in the automotive and aerospace industries. In 2009–10, a contribution agreement was signed for up to $54.8 million under the AIF to support the development and commercialization of a wide range of more durable, lighter and higher quality powertrain components and modules. In 2009, direct private sector employment for the Bombardier CSeries Program increased by 425 jobs, from 436 in December 2008 to 861 on December 31, 2009.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Dollar of private sector investment leveraged per dollar of agency investment in ITO projects |
$2.00 Status: Mostly met |
100% ITO leveraged $1.95 during 2009–10. |
Declining (from last year’s result, which was $2.00) |
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
221.4 | 346.3 | 218.8 |
Planned | Actual | Difference |
---|---|---|
99 | 75 | 24* |
To foster innovation in the A&D sector, the Industrial Technologies Office (ITO) provided repayable contributions through SADI to eight companies in the Canadian A&D industry for R&D of new products and/or services that are expected to enhance the industry’s competitiveness in years to come. These companies are collaborating with a variety of universities and an extensive supply chain of SMEs across Canada.
As ITO strives to be a first-class organization recognized for excellence in program delivery and the administration of publicly funded investments, the organization embarked on a transformation: an ambitious but achievable plan to re-engineer its core processes to further increase its effectiveness and efficiency. To further improve these processes, client service standards were introduced that include processing claims and releasing payments within 45 calendar days.
The Audit and Evaluation Branch completed an evaluation of the Program for Strategic Industrial Projects in June 2009. The evaluation found that the program succeeded in reaching its intended beneficiaries (i.e., communities, industry and workers) with positive economic and technological impacts.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
---|---|---|---|
Percentage of GDP contributed by small and medium-sized businesses |
Maintain or improve current percentage (26%) Status: Exceeded |
Canadian small businesses accounted for 29% of GDP for 2008–09.*17 This is up from 26% in 2007–08.18 In Canada, 97.8% of all business establishments are small businesses.**19 |
Improving |
Ratio of small and medium-sized businesses in rural vs. urban areas (defined by census subdivisions) |
1:3 Status: Somewhat met |
The ratio of rural to urban SMEs in Canada is 1:5.6. Rural SMEs account for 15.2% of total SME business activity, compared with the 84.8% contribution by urban SMEs.20 |
Declining |
Canada's Economic Action Plan Highlight |
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The Community Adjustment Fund (CAF) is an economic stimulus initiative to create employment opportunities and support adjustment measures in communities impacted by the economic downturn. The EAP identified $1 billion nationally over two years for CAF. FedNor is responsible for delivering CAF in Northern Ontario: 55 projects were announced in August 2009 with a federal investment of up to $31.4 million over two years. The City of Dryden, for example, received $1.47 million to expand Norwill Industrial Park. Dryden has been heavily affected by the decline in the forestry sector, losing more than 1,000 direct forest sector jobs since 2003. While this investment is targeted to create 41 person-months of employment during the construction phase, the project will also enable the city to increase its economic growth and job creation opportunities by becoming a more attractive place for investments in commercial and industrial development. |
Industry Canada’s mandate is to help make Canadian industry more productive and competitive in the global economy. The Department provides a wide range of programs and services to support Canadian industries and ensures that business views are taken into account in the development of broader economic and social policies. Industry Canada is committed to supporting Canadian companies in a variety of ways, including support for the automotive and aerospace manufacturing industries, among others. The Department also promotes economic development in communities to encourage the development of skills, ideas and opportunities across the country.
In an effort to ensure that Industry Canada contributes to sustainable wealth creation by ensuring that businesses are competitive, the Department undertook in-depth analysis and maintained expert knowledge of key industry drivers, players, and industrial and R&D trends. As the automotive crisis developed, Industry Canada fully engaged the automotive industry to develop a comprehensive understanding of the extent of the crisis and to assess the merit of government support. Industry Canada analyzed the restructuring plans submitted by Chrysler and GM to support the Government of Canada’s negotiations with the companies and the provincial counterparts. As restructuring assistance was being developed, Industry Canada analyzed the GM and Chrysler agreements and commitments, providing analysis for decision makers to ensure the longer-term competitiveness and sustainability of the companies and the automotive industry in general. The Department also worked with the Business Development Bank of Canada and Export Development Canada to commit funds and develop programs for the broader automotive industry that complemented the support provided to Chrysler and GM.
Lessons Learned |
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Industry Canada is modernizing the way it provides information on government programs, services and regulations to SMEs. Upon its renewal in 2009, Canada Business Network (CBN) launched a new strategy to modernize its service offerings to meet future client needs while ensuring program efficiency and effectiveness. During 2009–10, CBN streamlined its web offerings, moving from 14 federal/provincial/territorial websites to 1 integrated website. The new CBN website was launched on October 19, 2009. Management of a single website allowed the Department to reduce content duplication and redundancy, reduce maintenance costs, and introduce rigorous quality assurance mechanisms while improving the client experience. |
Industry Canada contributed to sustainable wealth creation by ensuring that businesses are competitive through the following program activities:
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Increase in number of clients using the CBN website over the previous year |
10% Status: Not met |
In previous years, CBN web traffic did not filter out non-user traffic (such as search tools). A new methodology was introduced in 2009. If this methodology had been applied to last year's results, total volume would have been 3,077,921 in 2008 and 2,660,588 in 2009, a decline of 13.6%. In addition, a new CBN website was launched in October 2009, reducing the number of websites from 14 to 1. This resulted in a reduction in referrals to the website by external search engines, which is typical, but temporary, following major changes to a site. | Declining Decrease of 13.6% in number of clients using the site in 2008–09 over the previous year |
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Percentage of clients who indicate satisfaction with the services provided |
80% Status: Not applicable |
Due to public opinion research restrictions, BizPaL was unable to complete a client satisfaction survey for 2009–10 and is unable to report results for this indicator. |
Not applicable |
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Number of references of small business issues in research, policy and program documents (e.g., Memoranda to Cabinet (MCs), Treasury Board (TB) submissions, research conference reports, consultation reports) |
30 Status: Exceeded |
34, which is an increase of 47% from the previous year’s result of 18 |
Improving |
Planned Spending | Total Authorities | Actual Spending |
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95.7 | 146.8 | 140.9* |
Planned | Actual | Difference |
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142 | 136 | 6 |
To contribute to the competitiveness of businesses and to help create sustainable wealth, the BizPaL partnership continued to roll out the BizPaLservice to local governments and surpassed expectations by offering BizPaL to 428 communities. This represents a 65% increase from last year’s 278 communities. As a result of these efforts, partners have been able to extend the service to 54.2% of the Canadian population.
BizPaL information is categorized according to the North American Industry Classification System (NAICS),21 which includes 928 business sectors, such as retail, manufacturing and natural resources. To date, 795 of those 928 sectors are now available in BizPaL, an increase of 132 sectors or 19.9% from April 2009. As a result, more business clients in the provinces, territories and municipalities can now find their industry sector when using the BizPaL service.
Further to an announcement in Budget 2009 and effective April 1, 2009, the maximum eligible loan amount under the Canada Small Business Financing Program (CSBF) was raised from $250,000 to a maximum of $500,000, of which no more than $350,000 can be used for purchasing leasehold improvements or equipment. Financial institutions with a portfolio of eligible loans above $500,000 can now claim reimbursement on losses up to 12%, up from 10%, of the value of their portfolio. In addition, some regulatory amendments were implemented to help ease the administrative burden of the CSBF Program.
The enhanced Canada Business Network website was officially launched on October 19, 2009. Service improvements continue to be introduced to modernize offerings on the website. A new marketing and outreach strategy to increase use of the CBN web presence was launched.
As well, the Canadian Youth Business Foundation (CYBF) has exceeded its target set in the 2009–10 RPP. It has provided 494 loans to young entrepreneurs using the Budget 2009 contribution of $10 million. The CYBF has also matched every loan recipient to a mentor.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Percentage of completed initiatives* designed to increase the competitiveness of Canadian industries in globalized markets, as a proportion of initiatives identified in the sector’s business plan |
80% Status: Exceeded |
100% All initiatives designed to increase the competitiveness of Canadian industries, such as intelligence products, analysis, networking, client services, and program and policy development, were completed as planned. For example, led responses to the Standing Committee on Industry, Science and Technology reports on automotive and on certain sectors in crisis; implemented changes to the Industrial and Regional Benefits (IRB) Policy; and created and implemented a customer relationship management program focused on developing relationships with companies in the pharmaceutical/ biopharmaceutical, medical devices and bio-industrial industries. |
New indicator |
Planned Spending | Total Authorities | Actual Spending |
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61.4 | 126.4 | 108.1* |
Planned | Actual | Difference |
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307 | 258 | 49** |
As at March 31, 2010, commitments by prime contractors to invest in Canada as a result of the Industrial and Regional Benefits (IRB) policy exceeded $20 billion. In September 2009, Minister Clement announced the introduction of seven enhancements to the IRB policy to attract substantive investments, global product mandates and world-leading research and development activities to Canada. The first 2 of these enhancements were introduced in 2009, with the balance scheduled for 2010.
In order to encourage partnerships with firms operating globally, Industry Canada organized sessions focused on matchmaking and increasing investment opportunities between venture capitalists and firms. The Department also co-sponsored an OECD workshop in Montréal on assessing the environmental and economic sustainability of bio-based products. Additionally, Industry Canada participated actively in OECD committees (Steel, Biotechnology and Nanotechnology) and on the North American Steel Trade Committee.
Through a series of 5 reports and seminars, Industry Canada provided industry leaders and firms with unique insights on productivity and competitiveness issues in core business services (design, logistics and green supply chain management). This intelligence seeks to encourage the adoption and use of value-added services as a business strategy to increase the competitiveness of companies by identifying best-in-class practices, key performance indicators and emerging trends affecting manufacturers and related service providers.
A final evaluation of the Canadian Apparel and Textile Industries Program was completed in 2009–10 and found that CATIP was well aligned with departmental and federal government priorities. The Program was implemented in a cost-effective manner and helped identify new markets, promote the capabilities of Canadian industry abroad, improve cost efficiencies, promote best practices and develop mechanisms to mitigate the effects of trade liberalization on the sector.
As part of the federal government’s support of a healthier and more competitive auto industry, financial restructuring assistance was provided to both Chrysler and GM. The governments of Canada and Ontario provided up to C$3.77 billion in assistance to Chrysler and US$9.5 billion in assistance to GM, and Industry Canada provided analysis and support throughout the restructuring process as well as continued monitoring of the restructuring agreements. The initiatives were very successful, because the restructuring support assisted in preventing the collapse of the companies, which would have had potentially negative effects across the auto sector.
In addition to the assistance provided to Chrysler and GM, the Government also increased protection for auto parts suppliers by adding $700 million to Export Development Canada’s Accounts Receivable Insurance program, which is available to auto parts suppliers. Additionally, Industry Canada provided consumer information on the Canadian Warranty Commitment Program, a federal initiative designed to ensure that consumer warranties would be honoured on new vehicles purchased from GM Canada and Chrysler Canada in the event these companies failed during their restructuring from April to September of 2009.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Average leverage ratio of program funds |
1:2 Status: Mostly met |
For every dollar spent through FedNor programs, $1.90 was leveraged from other sources. |
No change |
Average number of contribution agreements and grants approved |
35 Status: Exceeded |
Average number of contribution agreements approved in 2009–10 was 104. Note: When this target was set, it only represented 1 program. This now encompasses 5 programs.* |
Not applicable |
Planned Spending | Total Authorities | Actual Spending |
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138.5 | 585.4 | 335.7* |
Planned | Actual | Difference |
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221 | 173 | 47** |
Industry Canada adapted its programs to help create jobs in the regions affected by the global economic downturn. FedNor delivered the Community Adjustment Fund in Northern Ontario to provide economic stimulus to mitigate the short-term effects of the downturn by creating needed employment opportunities and addressing transitional and adjustment challenges in restructuring industries or communities.
FedNor implemented a Community Futures Development Corporation Stimulus Action Plan in Northern Ontario that responded to the increase in loan requests from Northern Ontario businesses normally serviced by conventional lenders, and implemented a more targeted approach in the Northern Ontario Development Program to address specific opportunities and challenges in the economic climate. FedNor also delivered the first year of the Economic Development Initiative, which encouraged the development of new business expertise through innovation, partnerships, the diversification of economic activities and increased support for small businesses.
As a result of the creation of FedDev Ontario, the majority of infrastructure programs for communities and Industry Canada’s responsibilities for rural Eastern and Southern Ontario were transferred to the new agency. To ensure seamless program delivery to clients, Industry Canada provided a variety of resources and services to FedDev Ontario, such as financial and human resources, payment and monitoring services for project files, and information technology services.
The Community Adjustment Fund (CAF) is an economic stimulus initiative to create employment opportunities and support adjustment measures in communities affected by the economic downturn. Budget 2009 identified $1 billion nationally over two years for the Fund. In Ontario, the CAF will provide $348.9 million over two years to support adjustment measures in communities affected by the global economic downturn. In 2009–10, $10.7 million was delivered in Northern Ontario.
The Broadband Canada: Connecting Rural Canadians Initiative was developed to extend broadband access to as many unserved and underserved Canadian households as possible. A call for applications generated a very high response rate, and the application assessment phase took longer than anticipated, but the Broadband Canada program has now completed its assessment of applications and the Department will select the successful applicants in 2010.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Degree of progress in advancing Canada’s strategic interests in the context of North America priorities |
Medium* Status: Met all |
Canada’s strategic interests have been pursued in the context of North American priorities. This was achieved through dialogue between the 3 North American countries and results of the 5th annual North American Leaders’ Summit, held in August 2009, which are outlined in the Leaders’ Statement. Summit discussions focused on 4 priority areas: the economy and North American competitiveness; environment and energy; security; and global and regional issues. |
New indicator |
* Degree of progress defined by:
Planned Spending | Total Authorities | Actual Spending |
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2.2 | 1.6 | 1.1* |
Planned | Actual | Difference |
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8 | 6 | 2** |
** The variance in Full-time Equivalents is due to employee turnover and unexpected departures.
Industry Canada provided guidance on the prosperity component of the partnership in the lead-up to the North American Leaders’ Summit held in Guadalajara, Mexico, from August 9 to 10, 2009. The Summit resulted in the Leaders’ joint statement, which reflected Canadian interests on economic cooperation, trade and borders. Canada’s interests were also reflected in the Leaders’ Declaration on Climate Change and Clean Energy. In further support of North American cooperation, the Secretariat has provided over 20 briefings to the Minister and/or senior management on issues relating to North American affairs, including preparations for bilateral and trilateral ministerial meetings.
The Secretariat is responsible for coordinating the Research Fund on North American Borders, Security, and Prosperity, which has funded over 15 projects to date, focused on gaining a better understanding of the effects of border measures on Canadian competitiveness. Findings from the first round of proposals were presented at a one-day workshop in Ottawa in October 2009 attended by 45 participants from government and the private sector; other departments will provide web links to completed studies. A key example of a research project managed by Industry Canada is the Canada–United States Border Survey. Conducted by Statistics Canada, the survey collected data on Canada–U.S. border issues, effects and mitigation strategies from the 10 most export-intensive industries in Canada.
Planned Spending | Total Authorities | Actual Spending |
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82.9 | 179.0* | 177.8 |
Planned | Actual | Difference |
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895** | 1,457 | 562*** |
Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization.
These groups are management and oversight services, audit and evaluation, public policy services, communications services, legal services, human resources management services, financial management services, information management services, information technology services, real property services, materiel services, acquisition services, and travel and other administrative services.
Internal Services include only those activities and resources that apply across the Department and not to those provided specifically to a program.
Performance Indicators | Target and Performance Status | Results and Performance Summary | Trend |
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Decrease in unemployment rate in Southern Ontario |
10% Status: Mostly met |
The seasonally adjusted unemployment rate fell from 9.3% in August 2009 to 8.8% in March 2010.22 | Declining (decrease of 5% over 7 months) |
GDP growth rate for Southern Ontario |
3% Status: Exceeded |
Provincial accounts show GDP annualized growth of 4.1% over the last 2 quarters of 2009.23 | Improving (GDP growth continued into Q1 2010) |
Planned Spending | Total Authorities | Actual Spending |
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51.1 | 460.7 | 222.8** |
Planned | Actual | Difference |
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112 | 117 | 5 |
* As a result of the EAP, Fed Dev Ontario was created on August 13, 2009.
FedDev Ontario was announced in Budget 2009 and was officially established in August 2009. Since its inception, FedDev Ontario created new jobs and opportunities throughout Southern Ontario by encouraging innovative ideas and the commercialization of research and investments in advanced manufacturing. This was achieved through the delivery of the following programs:
Through the Southern Ontario Development Program and programs that form part of Canada’s EAP, FedDev Ontario contributed to the stabilization of the Southern Ontario economy while establishing the foundation for a more prosperous future. The Community Adjustment Fund for Southern Ontario provided over $4 million to expand the Wright Business Park in Stratford, Ontario. This project will create development-ready industrial land by transforming 93 acres into a business subdivision containing roads, serviced lots and a stormwater management facility. It is expected that this project will create 20 immediate full-time construction jobs and 425 future ongoing jobs.