ARCHIVED - Registry of the Competition Tribunal - Report

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2010-11
Departmental Performance Report

The Registry of the Competition Tribunal

The original version was signed by
The Honourable Christian Paradis
Minister of Industry and Minister of State (Agriculture)

Table of Contents

Minister's Message

Section I: Organizational Overview

• Raison d’être
• Responsibilities
• Strategic Outcome(s) and Program Activity Architecture (PAA)
• Organizational Priorities
• Risk Analysis
• Summary of Performance
• Expenditure Profile
• Voted and Statutory Items

Section II: Analysis of Program Activities by Strategic Outcome

• Strategic Outcome
  • Program Activity: Process Cases
    • Program Activity Descriptions
    • Performance Summary and Analysis of Program Activity
    • Lessons Learned
  Strategic Outcome
  • Program Activity: Internal Services
    • Program Activity Descriptions
    • Performance Summary and Analysis of Program Activity
    • Lessons Learned

Section III: Supplementary Information

• Financial Highlights
• Financial Highlights Charts/Graphs
• Financial Statements

Section IV: Other Items of Interest

• Organizational Contact Information

Minister's Message

Last year, Industry Canada and its Portfolio partners played a key role in advancing the government's agenda in Year 2 of Canada's Economic Action Plan.

Specific stimulus measures taken by the Industry Portfolio under Canada's Economic Action Plan were aimed at boosting economic development, supporting small and medium sized enterprises, improving Canada's research and development capacity and strengthening communities. The Portfolio's stimulus measures targeted communities through the Marquee Tourism Events Program and Broadband Canada: Connecting Rural Canadians program. Further investments in the Industrial Research and Assistance Program, the Industrial Research and Development Internship program, the Canada Graduate Scholarships Program and the Knowledge Infrastructure Program expanded Canada's research and development capacity. Investing in the Canadian space industry maintained Canadian expertise and leadership in space robotics. Through these and other stimulus initiatives, we helped create jobs, build communities and nurture the roots of economic recovery.

In 2010-11, the Competition Tribunal continued in its judicial role of hearing cases dealing with matters related to the Competition Act such as mergers, misleading advertising and restrictive trade practices. As in previous years, the Tribunal acted on matters involving potential effects on competition. The outcomes of the Competition Tribunal's cases influence both merchants and Canadian consumers.

Cultivating an environment for job creation, growth and competitiveness, both domestically and internationally, remains a priority for Industry Portfolio. We will work to improve cost-effectiveness and efficiency and will contribute to the Government of Canada's priority to balancing the budget and achieving real results for all Canadians.

It is my pleasure to present the Registry of the Competition Tribunal's Departmental Performance Report for 2010-11.

Section I: Departmental Overview

Raison d’être

Responsibilities

The Registry of the Competition Tribunal is designated a department under the Financial Administration Act. It supports all aspects of the Tribunal's work and ensures the Tribunal can hold hearings anywhere in Canada, as necessary. Registry headquarters are located in the National Capital Region. Parties to Tribunal cases file applications and documents with the Registry, which also issues documents and orders for all cases brought before the Tribunal. This Departmental Performance Report pertains to the activities of the Registry in support of the Tribunal and its deliberations, and not to Tribunal cases themselves.

Since its creation in 1986, the Tribunal has heard cases relating to mergers, abuse of dominant position, deceptive marketing and various trade practices that have involved key players in several industries. Cases have involved a number of business areas, including pharmacies; furniture stores; importers of cast iron pipes; airline computer reservation systems; oil refining and gasoline retailing; community newspapers; aspartame; waste disposal; car parts; marketing research services; green handling services; weight-loss products; fuel-saving devices; fireplace maintenance products; banking services; poultry supply; and career management services.

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

[text version]

Process Cases

The Registry of the Competition Tribunal's main program activity is to process cases by providing the public with efficient access to case documents and decisions, as well as with efficient hearing support services.

The Tribunal hears cases and the Registry manages the material for the cases heard by the Tribunal under Part VII.1 (deceptive marketing practices) and Part VIII (restrictive trade practices) of the Competition Act.

Internal Services

Internal Services is an umbrella term for activities under the Registry's administration that meet program needs and other corporate obligations. These activities are: management and oversight services; communications services; legal services; human resources management services; financial management services; information management services; information technology services; real property services; material services; acquisition services; and travel and other administrative services.

Organizational Priorities

Performance/Priority Status Legend

Risk Analysis

The Registry of the Competition Tribunal has a major planning challenge in that the Tribunal can only react to external demands. Its sole function is hearing references and applications and issuing orders. The number of applications brought before the Tribunal depends on the enforcement policy adopted by the Commissioner of Competition and the number of applications filed by individuals or companies under the private access provisions of the Act.

The demand for services from the Registry has remained relatively stable even with the increase in the Tribunal's jurisdiction which includes the introduction of a new civil provision to address price dual-track approach to deal with agreements between competitors. Training members on this expanded jurisdiction was key in ensuring their readiness to hearing those types of cases.

An increase in the volume of work is still expected due to the new jurisdiction therefore more emphasis was placed on the enhancement of our electronic filing system in anticipation of the introduction of a directive to the parties to proceed electronically with all cases. The parties will benefit from shorter hearings resulting from maximizing the use of hearing room technologies.

Registry staff turnover has been minimal during the fiscal year. The Registry continued to provide training to some employees identified as back-ups to key positions to ensure they have the knowledge and abilities required to fulfill additional responsibilities if and when required. A partnership that had been established with the Registry of the Public Servants Disclosure Protection Tribunal was extended and two additional agreements were developed with other organizations, one with Health Canada and the other with the Courts Administration Services. These agreements maximized the use of resources and provided developmental opportunities to staff in an effort to retain them in key positions.

Summary of Performance

2010-11 Financial Resources ($ thousands)

2010-11 Human Resources (FTEs)

The variance between the planned versus utilized financial and human resources was created by the lower than expected number of cases filed at the Tribunal. The Registry can only react to the number of applications brought before the Tribunal by the Competition Bureau or by individuals and companies under the private access provisions of the Act. A few large cases were filed in 2010-11 but their actual hearings have been scheduled for 2011-12 and 2012-13. This results in a deferral of expenses and not necessarily a savings because significant expenses will be incurred when these larger cases are going to be heard by the Tribunal.

The variance in Internal Services stems from expenses incurred to finalize our enhancements to the electronic filing system and to complete the implementation of the mandatory new security standards to our Information Technology infrastructure.

Expenditure Profile

Canada's Economic Action Plan (CEAP)

In view of the mandate of the Competition Tribunal, the Registry was not involved in the delivery of initiatives that were part of Canada's Economic Action Plan.

Departmental Spending Trend

($ thousands)

[text version]

The lower than expected utilization of financial resources in 2010-11 resulted from the change in jurisdiction of the Tribunal that became effective in March 2010. There is usually a lag between the time a new legislation is implemented and the impact it has on the work of the Tribunal. The impact of the new jurisdiction should be felt in 2011-12 and future years.

Estimates by Vote

For information on our organizational votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada (Volume II) publication.

Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome - Open, fair, transparent and expeditious hearings related to the Tribunal's jurisdiction.

Performance/Priority Status Legend

Program Activity 1: Process Cases

Program Activity Descriptions

The Registry of the Competition Tribunal provides all administrative support required for the proper conduct of the Competition Tribunal's business and for the Tribunal to hold hearings anywhere in Canada.

Performance Summary and Analysis of Program Activity

The Registry of the Competition Tribunal does not have control over the number of proceedings filed. It can only react to the number of applications filed by the parties. There was a decrease in the number of filings in 2010-11 compared with 2009-10. This is mainly due to the lower number of consent agreements filed at the Tribunal. Three proceedings were ongoing at the end of this fiscal year; scheduling orders were issued for them in the early part of 2011-12.

Lessons Learned

The number of documents filed through the Registry's website e-filing system was not increasing. The parties preferred to communicate with the Registry by regular email when security and size of documents limitations permit. The email system is preferred as it is simpler to use and they are more at ease with it. Based on these observations we developed an enhanced e-filing system to operate very much like an email system. The parties have very few information to enter and the new technology is compatible with all recent operating systems. The new system will also provide the functionality to Registry staff to send documents to the parties through the government of Canada secure channel. This will provide a more efficient way to serve documents to the parties and will motivate the parties to use the Registry's e-filing system versus their email system. Strategic Outcome

Strategic Outcome - Open, fair, transparent and expeditious hearings related to the Tribunal's jurisdiction.

Program Activity 2: Internal Services

Program Activity Descriptions

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; Communications Services; Legal Services; Human Resources Management; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Material Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services included only those activities and resource that apply across an organization and not to those provided specifically to a program.

Performance Summary and Analysis of Program Activity

Employee turnover was lower than last year, providing better continuity and enabling the organization to update some of its policies and procedures, as well as allowing the allocation of more resources toward employee development. Learning plans were developed for every employee and financial resources were committed to support the developmental objectives of all staff.

The electronic filing system had to be enhanced to reflect the changes to the secure channel's infrastructure implemented by Public Works and Government Services Canada. The Registry took this opportunity to enhance the functionalities of its electronic filing system with a view to making the system more user friendly while meeting the requirements of Treasury Board's directive on the Management of Information Technology Systems.

Lessons Learned

Making technology available and reliable does not mean all users are going to embrace it. Further training of internal users is required to integrate the benefits of technology in the day to day provision of services to Tribunal members and parties.

The sharing of resources between organizations provides developmental opportunities and increased possibilities of advancement to the staff. Some employees fully support the initiative while others are more attached to their home organization and have difficulty appreciating how this can benefit them. More emphasis on the medium and long term advantages of such assignments will have to be communicated to obtain stronger buy-in from all participants.

Section III: Supplementary Information

Financial Highlights

The amount reported under assets increased due to an investment in some information technology components required to support the Tribunal's e-filing and e-hearing activities. Total expenses are marginally higher than last year but they are in line with the level of complexity of the new proceedings filed this year compared with last year.

Financial Highlights Charts/Graphs

Actual Spending

($ thousands)

[text version]

Over the last four years, actual expenses have been maintained within our spending authority. The lower volume of cases can explain part of the variance. The sharing of resources between organizations has also generated some savings for the Registry. This positive variance is likely very temporary as the Registry does not have control over the number of cases filed and the additional jurisdiction given to the Tribunal is expected to generate more cases in the future.

Financial Statements

The Registry of the Competition Tribunal's financial statements can be found on the Tribunal's website: http://www.ct-tc.gc.ca

Section IV: Other Items of Interest

Organizational Contact Information

Registry of the Competition Tribunal

600-90 Sparks Street

Ottawa, ON K1P 5B4

Deputy Head and Registrar: 613-957-7851

Facsimile: 613-957-3170