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Ministers’ Message

The Honourable Edward Fast The Honourable John Baird

We are pleased to present the Departmental Performance Report 2010-11 for Foreign Affairs and International Trade Canada (DFAIT). It chronicles the department’s wide range of achievements in the foreign policy and international trade portfolio over the past year.

Sustaining Canada’s economic recovery from the recession of 2008-09 remains the government’s top priority. Through implementation of the Global Commerce Strategy, DFAIT continued to promote Canadian business interests in priority markets and attract foreign investment to Canada.

To lay the foundations for Canada’s future prosperity, trade liberalization was pursued with a range of countries in Europe, the Americas and Asia, including ongoing negotiations with the European Union and the launch of free trade talks with India. Canada was the first G-7 country to recover employment lost during the economic crisis—helped in large part by a solid rebound in exports of goods and services.

Canada hosted the G-8 and G-20 summits, which focussed on the economic recovery and generated $7.3 billion in support for the Muskoka Initiative on Maternal, Newborn and Child Health.

In Afghanistan, the department continued to contribute to Canada’s multifaceted mission, while refocusing efforts for the 2011-14 period. DFAIT also helped frame Canada’s response to the opportunities and risks posed by the emergence of democratic movements in the Middle East and North Africa.

Closer to home, DFAIT reinforced the Canada-U.S. relationship through its support for new initiatives such as regulatory reform to reduce trade barriers and efforts to address competitiveness and security issues at the border through the Shared Vision for Perimeter Security and Economic Competitiveness. Canada’s engagement in the Americas was deepened through six visits by DFAIT ministers and 23 visits by ministers of partner departments within the region.

Canada's Arctic Foreign Policy Statement in August 2010 advanced the four pillars of Canada's Northern Strategy: exercising sovereignty, promoting economic and social development, protecting the environment, and providing Northerners with more control over their economic and political destiny.

Operationally, DFAIT coordinated Canada’s contributions to reconstruction efforts in Haiti after the January 2010 earthquake, humanitarian relief in Pakistan following the summer floods of 2010, as well as emergency assistance for Japan after the 2011 earthquake and tsunami. It also provided consular assistance to Canadians in the face of emergency situations in Pakistan, the Middle East and North Africa.

To find out more about the department and its achievements, we invite you to visit the DFAIT website.

Section I: Departmental Overview

Raison d’être

DFAIT is responsible for the conduct of Canada’s international affairs, including international trade and commerce. It advances Canada’s interests internationally, shapes Canada’s responses to international issues and events, manages bilateral and multilateral relationships and delivers programs worldwide. It provides commercial, consular and passport services to Canadians at home and abroad and manages Canada’s global network of missions in 106 countries, which serves as the Government of Canada’s international platform.


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

  • conduct all official diplomatic communications and negotiations between the Government of Canada and other countries and international organizations;
  • coordinate Canada’s economic relations and promote Canadian international trade and commerce; and
  • manage Canada’s diplomatic and consular missions and services abroad, including the administration of the Canadian Foreign Service.

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

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

Strategic Outcome(s) and Program Activity Architecture (PAA)

Program Activity Architecture Diagram

[text version]

Organizational Priorities: Results for 2010-11

Priority Type Link to Strategic Outcomes
Greater economic opportunity for Canada, with a focus on growing/emerging markets Ongoing
  • SO 1: Canada’s International Agenda;
  • SO 2: International Services for Canadians
Status1: Met all

DFAIT contributed to Canada’s economic recovery and enhanced international opportunities for Canadian business through continued implementation of its Global Commerce Strategy, with a particular focus on growing and emerging markets.

DFAIT facilitated 145 foreign direct investments (initial investments and expansion of existing investments) into Canada in 2010-11, a 35-percent increase over the previous year. Overall, the number of clients served by the Trade Commissioner Service increased slightly from 2009-10, with 13,449 clients served, and the number of services delivered increased by 14%. Within North America, trade commissioners delivered over 9,000 services (an increase of 40 percent from 2009-10).

Free trade negotiations were launched with India in fall 2010 following a joint study that indicated that freer trade with India could boost Canada’s economy by $6 billion and increase bilateral trade by 50 percent.

Canada and China signed several economic cooperation agreements in June 2010, including an agreement to reopen the Chinese market to Canadian beef and an agreement on travel and tourism.

Through the Asia-Pacific Gateway and Corridor Initiative, the department increased awareness overseas of the advantages of Canada’s transportation network, which included leading about 50 percent of targeted users to initiate or expand their use of Canadian ports.

Substantial progress was made in negotiations with the European Union on a comprehensive economic and trade agreement.

DFAIT signed a free trade agreement with Panama and launched new free trade negotiations with Morocco, Honduras and Ukraine.

Negotiations and ratification procedures for foreign investment promotion and protection agreements continued with 12 countries, and new or expanded air services agreements were concluded with seven states.

The International Science and Technology Partnerships Program promoted collaborative research, development and commercialization activities with India, China, Brazil and Israel. Two new collaborative science and technology agreements were reached with the European Union and Japan.

DFAIT worked bilaterally and multilaterally to resist protectionism. Within the G-20 and Asia-Pacific Economic Cooperation forum, the department advocated measures to strengthen the international financial system, promote sustainable growth, cooperate on structural reform and refrain from imposing new export restrictions.

To increase Canada’s commercial presence abroad, DFAIT opened a new trade-focussed mission in Istanbul (Turkey). In addition, the department moved its mission in Kazakhstan from Almaty to Astana to better serve clients, and established additional trade-focused representatives in six new offices of the Canadian Commercial Corporation that were opened in China.

Priority Type Link to Strategic Outcomes
United States and the Americas Ongoing
  • SO 1: Canada’s International Agenda
Status: Mostly met

Focused engagement with the United States on a range of trade, security, energy and environmental issues remained a priority for DFAIT over the past year.

In February 2011, Canada and the United States launched Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness, establishing a new bilateral framework to address security issues while supporting job creation and economic prosperity.

Advocacy on behalf of Canadian interests resulted in the enactment of the February 2010 Canada-U.S. Government Procurement Agreement, which enabled Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery and Reinvestment Act.

A Canada-U.S. Regulatory Cooperation Council was established in February 2011 to increase regulatory transparency and further reduce barriers to bilateral trade.

A number of Canada-U.S. transboundary water issues were addressed, including the resolution of the Flathead River Basin issue.

Mexican President Felipe Calderón’s visit to Canada in May 2010 launched several bilateral initiatives on air transport, youth and anti-crime capacity building.

Canada hosted the North American Foreign Ministers Meeting in December 2010, enhancing trilateral cooperation on issues such as Central American security, support to Haiti, competitiveness, and energy and the environment.

The department continued to deepen Canada’s whole-of-government engagement with the Americas, supporting six visits by DFAIT ministers and 23 visits by ministers of other federal departments.

Support was provided to democracy initiatives and capacity-building projects focused on the rule of law and enhancing security in Mexico and Central America.

DFAIT worked to reinforce the Organization of American States (OAS) as a forum through which Canada promotes its hemispheric interests by supporting OAS efforts to consolidate democracy, the rule of law and regional security.

Canada promoted corporate social responsibility at the OAS in support of enhanced practices of Canadian industry and responsible development in the Americas by the private sector.

The Anti-Crime Capacity Building Program provided over $13 million to enhance the capacity of key governments and international organizations to prevent and respond to threats posed by transnational criminal activity in the Americas, with a focus on security sector reform and crime prevention.

The Canada-Brazil Framework Agreement for Cooperation on Science, Technology and Innovation entered into force in April 2010.

Canada hosted the annual meeting of the Inter-American Development Bank in March 2011, using the occasion to inform Canadian business about opportunities in the region and build Canada’s profile as a dynamic investment partner.

While significant progress was achieved against this priority, some initiatives such as enhanced Canadian engagement with the Americas are ongoing and not completed, contributing to an overall assessment of mostly met for this priority.

Priority Type Link to Strategic Outcomes
Afghanistan, including in the context of neighbouring countries Ongoing
  • SO 1: Canada’s International Agenda;
  • SO 2: International Services for Canadians;
  • SO 3: Canada’s International Platform
Status: Met all

DFAIT made significant progress in supporting the Afghan mission over the past year, as the mission met and completed, on schedule, training and infrastructure projects in the policing, justice and corrections sector.

National and provincial Afghan government initiatives to encourage political reconciliation were actively supported by the department.

Canada facilitated the Afghanistan-Pakistan Cooperation Process (formerly the Dubai Process), which yielded a cross-border dialogue and management agreement to coordinate infrastructure plans at key crossings and conduct reciprocal visits and joint training in order to share best practices and build relationships.

In preparation for the transition of Canada’s mission in Afghanistan in 2011, DFAIT helped develop an integrated strategy for Canada’s priorities over the next three years, which will focus on four key themes:

  • investing in the future of Afghan children and youth through development programming in education and health, and improving the lives of Afghans, especially women and children;
  • advancing security, the rule of law and human rights, including the provision of up to 950 military trainers, their support personnel and approximately 45 Canadian civilian police to support and train Afghan National Security Forces;
  • promoting regional diplomacy; and
  • supporting the delivery of humanitarian assistance.

Through NATO civil administration initiatives, DFAIT contributed to the development of a strategy for the transition of responsibility for security in Afghanistan to Afghan control by 2014.

Priority Type Link to Strategic Outcomes
Asserting Canadian leadership in emerging global governance New
  • SO 1: Canada’s International Agenda;
  • SO 2: International Services for Canadians
Status: Mostly met

DFAIT worked to make Canada a leader in global governance through a number of significant initiatives to reform and modernize the operations of key multilateral organizations.

Canada advocated in favour of United Nations Security Council (UNSC) effectiveness and greater representation of the UN membership by calling for the expansion of the non-permanent, elected membership of the UNSC and by arguing against an expansion of the UNSC’s permanent membership.

Within the G-8, the successful launch of the Muskoka Initiative on Maternal, Newborn and Child Health generated $7.3 billion to improve the lives of women and children in the developing world. Canada also launched the G-8 accountability report, which set a new standard for accountability among multilateral bodies by reporting on G-8 performance in implementing development-related commitments.

As chair of the Toronto G-20 Summit, Canada maintained the G-20 focus on reducing global economic imbalances and promoting growth, while spearheading efforts to address troubling developments in the finances of key countries in the world economy.

To promote democracy abroad, support was provided through Rights & Democracy for an initiative to train over one hundred political bloggers and journalists from Egypt and the region—a project that would come to have a significant impact given the role of social media in the “Arab Revolts.”

Canada advocated for improvements in the human rights situations in Burma, Iran, North Korea, China, Sri Lanka, Pakistan and Vietnam, and championed a UN resolution on human rights in Iran that was passed in the UN General Assembly by the largest margin since Canada assumed leadership of this initiative in 2003.

While Canada ran a principled campaign that received the support of a significant number of countries, it was not successful in its bid for a non-permanent seat on the United Nations Security Council for 2011-12, contributing to the mostly met assessment for this priority.

Timely and effective humanitarian response to the January 2010 Haiti earthquake continued through efforts that began last year under DFAIT’s Stabilization and Reconstruction Task Force.

Canada’s Arctic Foreign Policy Statement was released in August 2010, outlining how Canada will exercise sovereignty, promote economic and social development, protect the environment, and provide Northerners with more control over the economic and political future of this key region.

DFAIT worked to strengthen the capabilities of the Arctic Council. In October 2010, the five Arctic coastal states, under Canadian leadership, established the Arctic Regional Hydrographic Commission to improve understanding of the Arctic Ocean and its coastal areas.

Priority Type Link to Strategic Outcomes
Transforming the department Ongoing
  • SO 1: Canada’s International Agenda;
  • SO 2: International Services for Canadians;
  • SO 3: Canada’s International Platform
Status: Mostly met

DFAIT is bringing to conclusion an ambitious Transformation Agenda, initiated in 2008, designed to improve DFAIT operations through enhanced policy capacities, a reinforced network of missions abroad, improved financial management and accountability, and renewed human resources.

Approximately 83 percent of 58 Transformation and New Business Model initiatives have been concluded or are progressing well toward completion, supporting the mostly met assessment for this priority. Work continues on the remainder of these projects. Additional initiatives to further improve the efficiency and effectiveness of departmental operations will be undertaken through the Deficit Reduction Action Plan.

Improvements in DFAIT’s policy capacities were evident in the numerous position papers and intensive policy dialogues with diplomatic partners and stakeholders undertaken to prepare for the G-8 and G-20 summits. The enhanced policy capacities of DFAIT missions were demonstrated through the development of Canada’s post-2011 Afghanistan strategy and through DFAIT’s contribution to the government’s response to the emergence of democratic movements in the Middle East and North Africa, including through the development of a new regional strategy that helped frame Canada’s response to the “Arab Revolts.”

The department continued to reinforce its platform of missions abroad and regional offices in Canada through the addition of 116 new positions in 2010-11, for a total of 243 new positions since 2009-10. The regional and horizontal policy collaboration capacities of DFAIT missions were reinforced through operations of the new Canadian International Centre for the Arctic Region in Oslo and the Andean Unit for Democratic Governance in Peru.

Financial management and accountability were improved over the past year. Business planning was more results-based with greater attention to risk management and the alignment of resources with DFAIT’s core business. Accountability for results was enhanced through better alignment of business plans with the performance agreements of senior managers.

Financial controls in the department were strengthened through the implementation of a new Financial Management Adviser structure and introduction of a new salary forecasting tool.

Human resources renewal initiatives included expanded professional development opportunities for the management and consular officer cadre and a move to manage a greater percentage of DFAIT’s workforce through pool management and collective staffing processes, with the aim of enhancing the flexibility of the workforce and improving capabilities to respond to work surges or shifts in departmental priorities.

Risk Analysis

Operating in an uncertain and complex international environment, DFAIT worked to actively manage its exposure to a number of significant risks over the past year. These risks and related mitigation measures were identified in DFAIT’s 2010-11 Corporate Risk Profile and summarized in its 2010-11 Report on Plans and Priorities. The following section provides an overview of these risk management strategies.

Highly volatile economic and political conditions at home and abroad

As the year began, there was a risk that the fragile international recovery from the 2009 global financial crisis might falter due to increased protectionism and rising levels of unemployment in key economies, with negative impacts upon Canada’s economy. To mitigate this risk, DFAIT worked to counter protectionism and promote free trade, including during the G-8 and G-20 summits hosted by Canada in June 2010.

In keeping with the Global Commerce Strategy, Canada continued its ambitious agenda of negotiations for free trade agreements and other bilateral trade instruments, including negotiations with the European Union for a comprehensive economic and trade agreement and the launch of negotiations with India on a comprehensive economic partnership agreement. DFAIT also worked to enhance regulatory cooperation and expand trade with the United States.

The department continued to implement its Global Commerce Strategy, with a focus on emerging markets and supporting small and medium-sized Canadian businesses. It reinforced its international trade commissioner network through the addition of 40 new positions, and expanded its regional presence in key markets.

Examples of the volatile political risks facing Canada were the uprisings in the Middle East and North Africa, during which DFAIT provided intelligence and policy advice on developments in the region and used the regional mission network to deliver its political and consular responses.

Challenges in providing services to Canadian citizens abroad and protection of Government of Canada personnel, interests and assets

Conflicts and natural disasters during 2010-11 underscored the risks related to the protection of Canadians working and travelling abroad. DFAIT supported the evacuation of Canadians during the uprisings in the Middle East and North Africa and played a key role in providing assistance to those affected by the earthquakes in Japan and New Zealand as well as the flooding in Pakistan.

International developments also highlighted the importance of improving the security of the mission network. A framework on mission security management structure and responsibilities was developed, and a dedicated threat assessment unit was created in Ottawa to enhance capabilities to assess risks at missions. Additional designated security managers were also trained and deployed to higher-risk missions.

To improve the department’s capabilities to manage emergencies, work began on a new Emergency Watch and Response Centre at DFAIT headquarters, and a new regional emergency support office was opened in Panama. Additional employees were trained to enhance DFAIT’s crisis management surge capacity.

Erosion of human and knowledge capital

As a knowledge-based organization, DFAIT actively manages risks related to attracting and retaining a specialized workforce that includes rotational, non-rotational and locally engaged staff. DFAIT’s Integrated Human Resources Plan for 2009-12 set clear recruitment and promotion objectives for the rotational workforce, which resulted in almost all rotational positions being filled. This plan also launched a community management approach for non-rotational commerce, and economics and social science services employees at headquarters to provide them with greater mobility as a retention incentive.

However, challenges remain with the recruitment and retention of skilled employees in key occupational groups such as trade policy, finance, and human resource management. Through its locally engaged staff (LES) governance structure, DFAIT continued to develop a comprehensive LES compensation strategy and standardized human resources processes.

Challenges with human resources, and with financial and information management systems for decision making and reporting

The risks to the maintenance of high-quality information management and corporate memory were actively managed throughout 2010-11. A five-year information management strategy was developed to improve access to and preservation of corporate memory in light of dramatic growth in stored data. A corporate information management/information technology (IM/IT) investment committee was created to enhance the integrated management of all IM/IT systems.

Through its 2009 Financial Resources Management Action Plan, the department continued to improve internal controls over financial reporting. Financial processes and controls were standardized to ensure consistent budget management, enhanced salary forecasting, and improved financial resource planning practices and reporting. DFAIT’s business planning processes were improved to support more effective resource allocation decisions.

Competition for resources to support departmental priorities and change management

DFAIT has been managing the risks associated with competition for resources to address departmental priorities while also supporting an aggressive change management agenda. The majority of Transformation and New Business Model initiatives are now fully implemented and have generated new savings and efficiencies.

The ability of the department to manage the financial pressures associated with these changes was improved through a number of measures, including the streamlining of DFAIT’s governance structure to improve senior management oversight of planning and resource allocation.

Challenges related to external and internal communications

Maintaining coherent external and internal communications remained a challenge for the department due to the dispersed nature of the organization and its role in coordinating international responses with multiple partners. Through an outreach strategy for partners and allies, the department ensured that it coordinated messaging before making public statements.

The department also provided communications support to ministers and senior officials during international events such as the G-8 and G-20 summits. The implementation of the Transformation Communications and Engagement Strategy continued, ensuring that coherent and consistent information was provided to all employees regarding change management in the department.

Summary of Performance

2010-11 Financial Resources ($ millions)

  Planned Spending2 Total Authorities Actual Spending
Foreign Affairs and International Trade Canada 3,044.8 3,122.4 2,705.1
Export Development Canada (Canada Account)3 167.0 13,154.5 -1,451.5
Total 3,211.8 16,276.9 1,253.6

2010-11 Human Resources (FTEs)

  Planned Actual Difference
Foreign Affairs and International Trade Canada 13,257 13,556 299
Export Development Canada (Canada Account)
Total 13,257 13,556 2994

Strategic Outcome 1: Canada’s International Agenda
Performance Indicators Targets 2010-11 Performance
Percentage of international partners and institutions that recognize and support key Canadian positions on political and trade relations. 75% The target was surpassed, based on achievements in multilateral forums and agreements with international partners. Key accomplishments are outlined in Section 2.1.
Program Activity 2009-10
($ millions)
2010-11 ($ millions) Alignment to Government of Canada Outcomes
International Policy Advice and Integration 156.8 212.0 215.4 281.8 226.6 A Safe and Secure World Through International Cooperation
Diplomacy and Advocacy 1,076.2 1,141.6 1,214.9 1,413.3 1,271.5 A Safe and Secure World Through International Cooperation
Total 1,233.0 1,353.6 1,430.3 1,695.1 1,498.1  

Strategic Outcome 2: International Services for Canadians
Performance Indicators Targets 2010-11 Performance
Percentage of clients who were satisfied with consular, passport and commerce services provided by the department. 70%
  • 78% of Trade Commissioner Service client survey respondents were satisfied with services provided.
  • 95% of Canadians who completed the Consular Client Feedback form indicated they were satisfied with assistance provided abroad.
  • 96% of clients reported they were satisfied with Passport Canada’s services in a 2008 survey, the last year public opinion research was undertaken.
  • Key accomplishments are outlined in Section 2.2.
Program Activity 2009-10
($ millions)
2010-11 ($ millions) Alignment to Government of Canada Outcomes
International Commerce
DFAIT component 232.3 235.3 248.5 180.4 178.35 A Prosperous Canada Through Global Commerce
Export Development Canada (Canada Account) component 11,078.0 -552.0 167.0 13,154.5 -1,451.56 A Prosperous Canada Through Global Commerce
International Commerce 11,310.3 -316.7 415.5 13,334.9 -1,273.2  
Consular Affairs 55.4 56.3 69.6 63.4 54.8 A Safe and Secure World Through International Cooperation
Passport Canada 14.2 321.0 132.9 16.87 A Safe and Secure World Through International Cooperation
Total 11,379.9 -260.4 806.1 13,531.2 -1,201.6  

Strategic Outcome 3: Canada’s International Platform
Performance Indicators Targets 2010-11 Performance
Percentage of clients who responded favourably to common services they received. 75% A 90% client satisfaction rating was achieved in relation to common services delivered in DFAIT missions. Key accomplishments are outlined in Section 2.3.
Program Activity 2009-10
($ millions)
2010-11 ($ millions) Alignment to Government of Canada Outcomes
Canada’s International Platform: Support at Headquarters 370.0 322.5 356.1 343.6 309.9 A Safe and Secure World Through International Cooperation
Canada’s International Platform: Support at Missions Abroad 518.5 517.5 531.9 551.5 494.6 A Safe and Secure World Through International Cooperation
Total 888.5 840.0 888.0 895.1 804.5  

Program Activity 2009-10
($ millions)
2010-11 ($ millions)
Internal Services 93.5 82.1 87.4 155.4 152.68

Expenditure Profile

The graph below presents trend information on DFAIT’s actual spending, planned spending and total spending authority for the fiscal years 2007-08 to 2010-11. This expenditure profile includes Passport Canada figures but excludes Export Development Canada (EDC), Canada Account.9

DFAIT Spending and Authority (Excluding EDC)

Departmental Spending Trend Graph

[text version]

The total 2010-11 actual spending of $2,705.1 million was fully within the total authorities granted by Parliament. Variances between planned spending and authorities were due to changes in the departmental plan, after Treasury Board approval, and for new initiatives that arose as the fiscal year unfolded. Specifically, the difference of $77.6 million observed between the planned spending ($3,044.8 million) and the total authority ($3,122.4 million) comprised $265.6 million of new funding for DFAIT, offset by a variance of $188.1 million in Passport Canada’s gross planned spending of $321.0 million and its net unused authority of $132.9 million.

The most significant initiatives for which DFAIT received new funding in 2010-11 were:

  • $130.7 million for the settlement of Abitibi-Bowater Inc.’s NAFTA Chapter 11 claim regarding the expropriation of assets in Newfoundland and Labrador;
  • $68.0 million for the organization of the 2010 G-8 and G-20 summits;
  • $50.3 million to support partner department employees abroad; and
  • $14.0 million to strengthen security at missions abroad.

Factors contributing to variances between the total authority and the actual spending were:

  • a $106.4-million surplus in contributions related to the reduction of Canada’s share of assessed contributions to international organizations and the related foreign exchange gain;
  • a $50.6-million surplus related to the organization of the G-8 and G-20 summits;
  • a $43.7 million surplus for the reprofiling of the relocation of the Moscow chancellery, and surpluses due to delays in the implementation of other capital projects;
  • a $40.9 million surplus in currency gains in foreign exchange operations at missions abroad;
  • a $20.4-million surplus related to other government department funding for staff abroad and delays in the timing of creating positions abroad;
  • a $14.8-million surplus in relation to softwood lumber litigation costs; and
  • a $116.1-million balance was carried over into next fiscal year through Passport Canada’s revolving fund—the agency’s 2010-11 financial authorities ($132.9 million) less the actual net cost of the program ($16.8 million).

A trend analysis reveals that the levels of spending in 2008-09 and 2009-10 were generally similar. However, in 2010-11, an increase of $188.2 million over the previous year occurred. This increase is largely explained by new spending initiatives such as the settlement of litigation under NAFTA Chapter 11 ($130.7 million), spending for employees abroad of other government departments ($37.3 million), spending to address the need to strengthen security at missions abroad ($9.2 million), and spending to assist Pakistan after the 2010 floods ($6.2 million).

Expenditures are broken down by program activity in section 1.6, Summary of Performance.

Canada's Economic Action Plan—Canada Account

In the context of Canada’s Economic Action Plan, a total of $14.5 billion was committed by the governments of Canada and Ontario in support of the restructuring and renewal of the automotive industry in Canada.

As reported in 2009-10, a total of $13.7 billion was disbursed ($2.9 billion in support of Chrysler Canada and $10.8 billion in support of General Motors of Canada). One third of this support was provided by Ontario and two thirds by Canada, via the Canada Account.

Of the $2.9 billion provided to Chrysler through loans and notes by the governments of Canada and Ontario in April 2009, $1.6 billion was disbursed to Chrysler Canada and $1.3 billion was disbursed to Old Carco (Old Chrysler), which entered into bankruptcy protection. Chrysler Group LLC emerged from bankruptcy protection on June 10, 2009. On May 24, 2011, Chrysler Canada fully repaid the balance of its outstanding debt, including interest and fees. In recognition of the financial support provided, Canada and Ontario received an equity stake in Chrysler, which is currently 1.5 percent on a fully diluted basis and is held by the Canada Development Investment Corporation, a Crown corporation under the responsibility of the Minister of Finance.

All of the $10.8 billion committed to General Motors by Canada and Ontario has been disbursed. General Motors emerged from bankruptcy protection on July 10, 2009. Canada and Ontario received a combined 11.7‑percent ownership stake in the restructured General Motors, as well as US$403 million in preferred shares. By April 20, 2010, General Motors had completed, ahead of schedule, the repayment of its entire $1.5‑billion interim loan from Canada and Ontario. The Government of Canada has begun to reduce its ownership in General Motors. In the initial public offering by General Motors in November 2010, Canada sold over 35 million shares at US$33 per share, which resulted in gross proceeds of US$1.15 billion. This sale reduced Canada’s ownership stake in General Motors to 9.34 percent.

Estimates by Vote

For information on the department’s organizational Votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada (Volume II). An electronic version of the Public Accounts is available at Public Works and Government Services Canada’s Web page, Public Accounts of Canada 2010.