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2001 Annual Report To Parliament - Crown Corporations and Other Corporate Interests of Canada
Transport
Atlantic Pilotage Authority
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. ChairpersonAnne Soucie Chief Executive OfficerR. Anthony McGuinness Head OfficePurdy's Wharf |
AuditorAuditor General of Canada Incorporation and Status1972 pursuant to the Pilotage Act (R.S.C. 1985, c. P-14); Schedule III, Part I of the Financial Administration Act; not an agent of Her Majesty. MandateTo establish, operate, maintain and administer a safe and efficient pilotage service within designated waters in and around the Atlantic provinces. These objectives are to be achieved by establishing a fair and reasonable tariff. |
Corporate Profile
In addition to providing pilotage services, the Atlantic Pilotage Authority (the Authority) with the approval of the Governor in Council makes regulations that prescribe the compulsory pilotage areas; the ships or classes of ships that are subject to compulsory pilotage; when compulsory pilotage may be waived; the tariff rates for pilotage; and the classes of licences and classes of pilotage certificates that may be issued.
Of the 33 pilotage areas in the Atlantic region, 16 are compulsory pilotage areas. The criteria for determining which ports should become compulsory are: the degree of difficulty and hazard in the approaches and within the port itself; the amount of vessel movement and the manoeuvrability of those vessels; the design of wharves and slips; the nature of the cargo; and environmental concerns and the preservation of the ecosystem.
Performance Information
The Authority's 2000 to 2004 Corporate Plan Summary included, among others, the following major objectives:
- Provide a safe, economical, reliable and effective marine pilotage service within the Atlantic Region, in a manner that must reflect change;
- Actively participate with the objectives of the pilotage recommendations as presented by the Minister;
- Respond to the needs of port users and work effectively with them while complying fully with the Pilotage Act and the Authority's legislated mandate to ensure financial self-sufficiency;
- Continue with the implementation of a centralized dispatch system within the Atlantic Region; and
- Continue with the staged development of pilot boat replacement.
The Corporate Plan Summary also noted the Authority's commitment to maintaining its course of financial self-sufficiency, and its overall goal of individual port self-sufficiency and a 10 per cent rate of return each year.
The Authority's 2000 Annual Report stated that:
- The Authority continued to follow through on the recommendations proposed by the Canadian Transportation Agency (CTA) in its Ministerial Review of Outstanding Pilotage Issues, and to meet the proposed deadlines for these initiatives;
- The centralized dispatch of pilots had been implemented; and
- All but three of the compulsory and non-compulsory areas had a positive operating return during 2000. Tariff increases have been proposed for 2001 to address those areas that did not have positive returns.
Selected performance indicators are shown in the table below.
| 2000 Forecast | 2000 Actual | 1999 Actual | |
| Net income ($ thousand) | 1,109 | 742.8 | 963.6 |
| Number of assignments | 10,535 | 11,499 | 11,091 |
| Number of incidents* | 12 | 10 | 12 |
| Incident-free assignments (%) | 99.9 | 99.9 | 99.9 |
_________________
* Compilation of all maritime incident reports with or without damage.
Canada Ports Corporation
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. ChairpersonKenneth R. Nurse (until October 31, 2000) Acting President and Chief Executive OfficerGraham Pettifer (until October 31, 2000) Head OfficePlace de Ville, Tower C |
AuditorRaymond Chabot Grant Thornton Incorporation and Status1983 by the National Harbours Board Act (R.S.C. 1970, N-8, s.3); reconstituted by the Canada Ports Corporation Act (R.S.C. 1985, c. C-9); Schedule III, Part II of the Financial Administration Act; an agent of Her Majesty; dissolved by the Canada Marine Act effective November 1, 2000. MandateTo administer, manage and control Canadian harbours and any other harbour, work or property of Canada transferred by the Governor in Council. |
Corporate Profile
Until early in 1999, the Canada Ports Corporation (CPC) had co-ordinated the national port activities of seven autonomous local port corporations and also had direct responsibility for operating a number of non-corporate divisional ports.
During 1999, CPC assisted in implementing certain provisions of the Canada Marine Act, which had received Royal Assent on June 11, 1998. This Act provided for the creation of new organizational structures for ports as Canada port authorities (CPAs), the dissolution of CPC, reorganization of Ridley Terminals Inc. from a wholly owned subsidiary of CPC to a parent Crown corporation, and the transfer of all remaining assets and liabilities of CPC to the Minister of Transport.
The Halifax, Montreal and Vancouver port corporations became port authorities on March 1, 1999. The Port of Quebec Corporation, and the Prince Rupert, Saint John and St. John's port corporations, and CPC's Saguenay, Sept-Îles and Trois-Rivières divisional ports became port authorities effective May 1, 1999. These new entities are non-share-capital, shared-governance corporations with the associated municipalities and provinces each appointing a member to the board of directors, and the federal government appointing the majority.
On October 1, 1999, CPC's Port Colborne port facilities and property were officially transferred to the City of Port Colborne, and the CPC port at Baie des Ha! Ha! was deproclaimed as a federal harbour on December 16, 1999. On March 29, 2000, the Port of Belledune, which was a CPC divisional port but not one of the original 18 ports designated to become a CPA, was granted CPA status. Effective October 12, 2000, CPC's last remaining divisional port - the Port of Prescott - was transferred to the Corporation of the Township of Edwardsburgh.
Pursuant to the Canada Marine Act, CPC was dissolved effective November 1, 2000 and its wholly owned subsidiary, Ridley Terminals Inc., became a parent Crown corporation.
Performance Information
During 2000, CPC's primary objective was to reduce its responsibilities and wind up the affairs of the Corporation; therefore, a Corporate Plan Summary was not prepared.
By October 31, 2000 CPC had closed all of its accounts and transferred its remaining assets and obligations to the Minister of Transport.
Federal Bridge Corporation Limited, The
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. President and Chief Executive OfficerMichel Fournier Head OfficeSuite 1210 |
AuditorAuditor General of Canada Incorporation and Status1998 under the Canada Business Corporations Act; Schedule III, Part I of the Financial Administration Act; an agent of Her Majesty. MandateTo provide users with safe and effective infrastructures at its two wholly owned subsidiaries, Jacques Cartier and Champlain Bridges Incorporated and The Seaway International Bridge Corporation Ltd., as well as at the Canadian facilities of the Thousand Islands Bridge. |
Corporate Profile
The Federal Bridge Corporation Limited (FBCL) was established on October 2, 1998, following the passage of the Canada Marine Act. Its original mandate was to replace the St. Lawrence Seaway Authority (SLSA) as the corporate body responsible for managing certain non-navigational assets. The civil structures transferred to the Federal Bridge Corporation Limited from SLSA are those of its former subsidiaries - the Jacques Cartier and Champlain Bridges Incorporated (JCCB) and the Seaway International Bridge Corporation, Ltd. - and include the Jacques-Cartier Bridge, the Champlain Bridge, the Seaway International Bridge and a section of the Bonaventure Autoroute.
The Southern Extension of the Mercier Bridge and the Melocheville Tunnel had been transferred from SLSA to JCCB in 1998. In 1999, the Champlain Bridge Ice Control Structure was transferred from Fisheries and Oceans Canada to JCCB.
Performance Information
Since the Federal Bridge Corporation Limited's 2000-01 to 2004-05 Corporate Plan Summary and the 2000-01 Annual Report had not been tabled in Parliament as of the closing date for its inclusion in the database for the President of the Treasury Board's 2001 annual report, the Corporation's activities and performance results for 2000-01 have not been reflected in this report.
Great Lakes Pilotage Authority
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. ChairpersonBrian C. Ducharme Chief Executive OfficerRobert F. Lemire Head Office2nd Floor |
AuditorAuditor General of Canada Incorporation and Status1972 by the Pilotage Act (R.S.C. 1985, c. P-14); incorporated under the Canada Corporations Act in May 1972 as a subsidiary of The St. Lawrence Seaway Authority; deemed to be a parent corporation within the meaning of the Financial Administration Act and listed in Schedule III, Part I of that Act; became a parent corporation on October 1, 1998 pursuant to the Canada Marine Act; not an agent of Her Majesty. MandateTo establish, maintain and administer a safe and efficient pilotage service in all Canadian waters in Ontario and Manitoba, as well as in Quebec south of the northern entrance to the St. Lambert Lock. |
Corporate Profile
In addition to providing pilotage services, the Great Lakes Pilotage Authority, with the approval of the Governor in Council, makes regulations that prescribe the compulsory pilotage areas; the ships or classes of ships that are subject to compulsory pilotage; when compulsory pilotage may be waived; the tariff rates for pilotage; and the classes of licences and classes of pilotage certificates that may be issued.
The Authority co-ordinates its operations with a number of other organizations such as the St. Lawrence Seaway Management Corporation and the United States Seaway Development Corporation which operate the lock facilities and maintain a traffic control system within the region. Other organizations involved are the Canadian Coast Guard, which provides aids to navigation, and the United States Coast Guard, which is responsible for United States pilotage matters in international waters.
Performance Information
The Authority's 2000-2004 Corporate Plan Summary identified a number of objectives for the year 2000.
The Authority's performance against selected objectives as outlined in its 2000 Annual Report is presented in the table below.
| Performance Objective | Activities to Achieve Objective |
| Provide safe, economic and reliable pilotage service |
|
| Ensure effective utilization of the Authority's assets |
|
| Maintain self-sufficiency in its operations |
|
Selected performance indicators are shown in the table below.
| 2000 Forecast | 2000 Actual | 1999 Actual | |
| Net income ($ thousand) | 40 | (1,093) | (353.1) |
| Number of assignments | 7,300 | 8,605 | 8,108 |
| Accident-free assignments (%) | 99.5 | 99.8 | 99.7 |
| Average cost of performing an assignment ($) | 1,854* | 1,933 | 1,871 |
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* Source: Great Lakes Pilotage Authority, 1999 Annual Report.
Laurentian Pilotage Authority
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. Chairperson and Chief Executive OfficerJean-Claude Michaud Head Office6th Floor |
AuditorAuditor General of Canada Incorporation and Status1972 by the Pilotage Act (R.S.C. 1985, c. P-14); Schedule III, Part I of the Financial Administration Act; not an agent of Her Majesty. MandateTo operate, maintain and administer a safe and efficient pilotage service in the St. Lawrence River between Les Escoumins and the north end of the St. Lambert Lock, in the Saguenay River and in Chaleur Bay north of Cap d'Espoir. |
Corporate Profile
The Laurentian Pilotage Authority serves three mandatory pilotage districts: one for the Port of Montreal, another for the navigable waters between Montreal and Quebec City, and a third for the navigable waters between Quebec City and Les Escoumins including the Saguenay River. The Authority owns and operates a pilot station at Les Escoumins with pilot boats capable of carrying pilots year round. The pilot boat services at Quebec City, Trois-Rivières, Sorel, Lanoraie and Montreal are served by private companies under contract to the Authority.
In addition to providing pilotage services, the Authority with the approval of the Governor in Council makes regulations that prescribe the compulsory pilotage areas; the ships or classes of ships that are subject to compulsory pilotage; when compulsory pilotage may be waived; the tariff rates for pilotage; and the classes of licences and classes of pilotage certificates that may be issued.
Performance Information
The main components of the strategic direction of the Authority, as noted in its Summary of the Corporate Plan for 2000 to 2004, were financial self-sufficiency; the optimization of the effectiveness of the pilotage system; modernizing the existing process for issuing pilotage certificates; periodically reviewing existing compulsory pilotage areas and the mechanism for designating areas; following the recommendations of the Canadian Transportation Agency with respect to the review of certain aspects of pilotage; and maintaining ISO 9002 certification.
In its 2000 Annual Report, the Authority reported on its accomplishments in the following areas: For example, with regard to financial self-sufficiency, the Authority reported that its debt-servicing costs have decreased as the loans have been paid down. It also noted that the ISO 9002 certification for the Montreal Region received for its quality system for pilot assignments and billing service was renewed in 2000.
To maximize the effectiveness of the pilotage system, the Authority also noted that it has maintained continuing education programs for its pilots as well as continuing to review and renew the assignment and billing computer systems.
With regard to the present system for issuing pilotage certificates, the Authority filed amendments for updating its regulations on pilotage licences and certificates, and continued its work to update the program of study, as well as serving on the committee revising the pilotage program and implementing recommendations in the study commissioned by Transport Canada and the Canadian Shipowners Association.
Selected performance indicators are shown in the table below.
| 2000 Forecast | 2000 Actual | 1999 Actual | |
| Net Income ($ thousand) | (250) | (370) | 475.7 |
| Number of assignments | 22,301 | 20,713 | 21,654 |
| Number of incidents* | 26 | 22 | |
| Incident-free assignments (%) | 99.87 | 99.9 |
_________________
* Compilation of all maritime incident reports with or without damage.
Marine Atlantic Inc.
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. Chairperson and Acting Chief Executive OfficerSidney J. Hynes Head OfficeBaine Johnston Building |
AuditorAuditor General of Canada Incorporation and Status1979 by the Canada Business Corporations Act; status and ownership changed as of December 31, 1986, pursuant to the Marine Atlantic Inc. Acquisition Authorization Act (S.C. 1986, c. 36); Schedule III, Part I of the Financial Administration Act; not an agent of Her Majesty. MandateTo provide a safe, environmentally sound and quality ferry service between Newfoundland and the mainland of Canada on behalf of the federal government. |
Corporate Profile
Marine Atlantic Inc. has provided continuous ferry services between Newfoundland and Nova Scotia for over 100 years. In addition to the constitutionally guaranteed ferry link between North Sydney, Nova Scotia and Port aux Basques, Newfoundland, Marine Atlantic continues to operate a seasonal alternative service between Argentia, Newfoundland and North Sydney.
The federal government through operating contracts with Transport Canada financially supports the Corporation's operations.
Marine Atlantic Inc. continues to have a strong economic presence in the region; it is a carrier of Atlantic Canada's commerce and plays an important role in Newfoundland's tourism industry.
Performance Information
In its 2000-2004 Corporate Plan Summary, Marine Atlantic Inc. stated the following objectives for the Corporation: to maintain the effectiveness and safety of its operations, to respond effectively to ongoing capacity requirements, while attaining an acceptable subsidy level and with an acceptable customer service level.
Marine Atlantic Inc.'s 2000 Annual Report documented the following:
- The Corporation experienced its third consecutive record-traffic year in 2000, surpassing the half-million-passenger level for the first time. The overall increase in volume generated additional revenues. However, total operating expenses increased as a result of adding a fourth vessel to the fleet for the summer season. Also, the Corporation faced a 44-per cent increase in fuel costs during the year.
- The Argentia service was extended for a trial basis for an additional four weeks to October 9, 2000 in order for the Corporation to assess demand. The Corporation has decided to provide the same service in 2001.
- Customers appreciated the improvements the Corporation had made during the year. The Corporation's employees received a particularly high rating.
- An Accessibility Advisory Committee comprised of company and community representatives was formed to ensure that the Corporation received input and guidance from persons with disabilities.
Selected performance indicators are shown in the table below.
| Gulf Service Traffic | 2000 Forecast | 2000 Actual | 1999 Actual |
| Revenue ($ thousand) | 56,285 | 59,974 | 52,337 |
| Operating expenses ($ thousand) | 79,148 | 91,593 | 69,585 |
| Government funding for operations ($ thousand) | 32,618 | 30,811 | 23,308 |
| Passengers | - | 508,970 | 477,761 |
| Passenger vehicles | - | 159,759 | 149,732 |
| Commercial vehicles and 40-foot-equivalent containers | - | 77,289 | 76,905 |
Pacific Pilotage Authority
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. ChairpersonMaurice Fellis Chief Executive OfficerDennis B. McLennan Head Office1000-1130 West Pender Street |
AuditorAuditor General of Canada Incorporation and Status1972 pursuant to the Pilotage Act (R.S.C. 1985, c. P-14); Schedule III, Part I of the Financial Administration Act; not an agent of Her Majesty. MandateTo establish, operate, maintain and administer a safe, reliable and efficient pilotage service in the coastal waters of British Columbia including the Fraser River. |
Corporate Profile
The Pacific Pilotage Authority provides pilotage services within a commercially oriented framework directed towards maintaining financial self-sufficiency through tariffs. Coastal pilotage services are provided by the British Columbia Coast Pilots Ltd., under an agreement for services. Pilot services on the Fraser River are provided by employee pilots.
In addition to providing pilotage services, the Authority with the approval of the Governor in Council makes regulations that prescribe the compulsory pilotage areas; the ships or classes of ships that are subject to compulsory pilotage; when compulsory pilotage may be waived; the tariff rates for pilotage; and the classes of licences and classes of pilotage certificates that may be issued.
Performance Information
The Authority's corporate objectives, as stated in its Summary of the Corporate Plan for 2000 to 2004, were as follows:
- to provide safe, reliable and efficient marine pilotage and related services in the coastal waters of British Columbia including the Fraser River;
- to provide the services within a commercially oriented framework directed toward maintaining financial self-sufficiency through tariffs which are fair and reasonable;
- to promote the effective utilization of the Authority's facilities, equipment and expertise through the productive application of these resources in the interest of safe navigation; and
- to be responsive to the government's environmental, social and economic policies.
In its 2000 Annual Report, the Authority noted its commitment to follow through and implement initiatives contained in the Canadian Transportation Agency's review of outstanding pilotage issues. As a result of a significant increase in the volume of business, due to a strong cruise industry and the introduction of new direct container lines, the Authority was able to achieve a financial surplus of $385,000 in 1998 and $325,000 in 1999. This surplus was used to cover the deficit of $418,000 that the Authority incurred in 2000.
Selected performance indicators are shown in the table below.
| 2000 Forecast | 2000 Actual | 1999 Actual | |
| Net income ($ thousand) | (160) | (418) | 325 |
| Number of coastal assignments | 12,200 | 13,256 | 12,590 |
| Number of Fraser River assignments | 950 | 1,329 | 1,186 |
| Incident-free assignments (%) | n/a* | 99.897 | 99.891 |
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* The Pacific Pilotage Authority does not forecast incidents.
Ridley Terminals Inc.
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. Chairperson and Chief Executive OfficerKenneth R. Nurse President and Chief Operating OfficerGregory A. Slocombe Head OfficeP.O. Bag 8000 |
AuditorRaymond Chabot Grant Thornton Incorporation and Status1981 under the Canada Business Corporations Act; became a wholly owned subsidiary of the Canada Ports Corporation in 1991; on November 1, 2000 pursuant to section 177 of the Canada Marine Act (R.S.C. 1998, c.10), Ridley Terminals Inc. became a parent Crown corporation; Schedule III, Part I, Financial Administration Act; not an agent of Her Majesty. MandateAs a marine terminal, to provide continuous, high quality and high performance rail car unloading, product storage and loading services. |
Corporate Profile
Ridley Terminals Inc. (RTI) was incorporated under the Canada Business Corporations Act on December 18, 1981. At that time the Canada Ports Corporation (CPC) owned 50 per cent of the company and the remaining 50 per cent was owned by another party. On July 31, 1991 CPC purchased the remaining 50 per cent ownership of the company, and RTI became a wholly owned subsidiary of CPC.
On November 1, 2000 with the wind-up of CPC, RTI became a parent Crown corporation reporting to the Minister of Transport.
RTI owns and operates train unloading and ship loading infrastructure and equipment located on land leased from the Prince Rupert Port Authority. The facility was built to provide an alternative terminal for coal exports to Japan and other Asian countries, and in particular to support the development of the coal industry in Northeastern British Columbia.
Performance Information
As RTI's new status came into effect near to its fiscal year end of December 31, 2000, no separate Corporate Plan was approved. RTI, however, continued to operate under the provisions of the last approved plan of the Canada Ports Corporation.
RTI's 2000 Annual Report noted a number of challenges facing the Corporation. During 2000 RTI underwent significant restructuring, reducing its operating hours from 24 hours per day to 12 hours per day, 7 days a week. The workforce was reduced by 30 per cent in the same year.
RTI also noted that the government had previously stated its intention to divest of its investments. The mine closures in 2000, and the resulting decrease in cash flow and profitability have deferred plans for the divestiture.
VIA Rail Canada Inc.
Appropriate MinisterThe Honourable David Collenette, P.C., M.P. ChairpersonJean Pelletier President and Chief Executive OfficerMarc LeFrançois Head Office6th Floor |
AuditorRaymond Chabot Grant Thornton Incorporation and Status1977 under the Canada Business Corporations Act; Schedule III, Part I of the Financial Administration Act; not an agent of Her Majesty. MandateTo manage and provide a safe and efficient passenger rail service. |
Corporate Profile
VIA Rail Canada Inc. (VIA Rail) is Canada's national passenger rail company. Since its creation in 1977, the Corporation has operated passenger trains on a cross-Canada network stretching from the Atlantic Ocean to the Pacific Ocean and from the Great Lakes to Hudson Bay. VIA Rail operates more than 460 trains weekly on 14, 000 kilometres of track, connecting over 450 communities across the country.
VIA Rail's network is made up of four main products groups:
- The Quebec City-Windsor Corridor, which accounts for approximately 85% of the Corporation's ridership and 70% of its income;
- Western services, between Toronto and Vancouver;
- Eastern services linking the Atlantic regions with central Canada via the Montreal-Halifax and Montreal-Gaspé routes; and
- Northern services, in Quebec, Ontario, Saskatchewan and British Columbia.
VIA Rail also operates services mandated by the government in rural and remote areas to meet regional transportation needs. It has three maintenance centres located in Montreal, Winnipeg and Vancouver.
Performance Information
In its 2000-2004 Corporate Plan Summary VIA Rail noted that since 1996 the Corporation has promoted the "Service for Success" strategic plan throughout the organization. The strategic plan incorporates five goals - each with specific strategies and performance targets: safety; customer service; growth; financial performance and people.
VIA Rail indicated in its 2000 Annual Report that the government had approved its five-year plan in principle, and encouraged the Corporation to proceed with the implementation of the first year of the plan which included purchasing new and better trains, safer, more efficient tracks and signalling, improving station facilities and implementing better environmental practices.
Achievements noted included an increase of $20.03 million in revenue over the previous year. VIA Rail also reported that it:
- Introduced new and additional services in the Quebec City-Windsor Corridor;
- Created a new type of services for business travellers; introduced a seasonal touring train in Maritime Canada;
- Launched VIAPAQ CourrierTM which offers same-day and next-day intercity emergency courier service in the Quebec City-Windsor Corridor;
- Developed VIA eScheduleTM, an application which provides electronic travel schedules for hand-held, laptop and desktop computers; and
- Renewed multimillion-dollar service and maintenance contracts with both West Coast express in British Columbia, and Montreal's Agence métropolitaine de transport.
Selected performance indicators are shown in the table below.
| Key Operating Statistics | 2000 Actual | 1999 Actual | 1998 Actual |
| Total passengers carried (thousands) | 3,957 | 3,757 | 3,646 |
| Total passenger miles (millions) | 942 | 931 | 856 |
| Average passenger load factor (%) | 58 | 59 | 56 |
| On-time performance (%) | 83 | 84 | 81 |
| Government operating funding per passenger mile (cents) | 18.1 | 18.3 | 20.8 |
| Revenue/cash operating expenses ratio (%) | 59.5 | 56.7 | 52.3 |
Treasury Board
Public Sector Pension Investment Board
Appropriate MinisterThe Honourable Lucienne Robillard, P.C., M.P. ChairpersonWilliam R. C. Blundell Chief Executive OfficerAdel Sarwat Head OfficeSuite 200 Montreal OfficeWeb site: www.investpsp.ca |
AuditorDeloitte & Touche LLP Incorporation and Status1999 pursuant to the Public Sector Pension Investment Board Act (S.C. 1999, c. 34); exempt from Part X of the Financial Administration Act; not an agent of Her Majesty. MandateTo manage the amounts that are transferred to the Investment Board pursuant to sections of the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act in the best interests of the contributors and beneficiaries under those Acts. |
Corporate Profile
The Public Sector Pension Investment Board (the Investment Board) was established pursuant to the Public Sector Pension Investment Board Act to invest in financial markets the funds transferred to it, after April 1, 2000, by the Government of Canada for the Canadian Forces, federal Public Service and Royal Canadian Mounted Police pension plans.
The amounts are to be invested with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the funding, policies and requirements of the pension plans established under the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act, and the ability of those plans to meet their financial obligations.
Performance Information
The Investment Board is exempt from Divisions I to IV of Part X of the Financial Administration Act (FAA), and, as a result, a Corporate Plan Summary is not tabled in Parliament. However, the Investment Board's governing legislation requires that an annual report be tabled in Parliament. The Investment Board is required to publish in the annual report its success in reaching the prior year's investment objectives and the objectives for the next year and the foreseeable future.
In its first Annual Report, 2000-01, the Investment Board reported that:
- The pension plan received $2.7 billion in net contributions from the Public Service, Canadian Forces and RCMP pension plans.
- On a consolidated basis, on March 31, 2001, approximately 39 per cent of the assets were in Canadian bonds and cash equivalents, 34 per cent in Canadian equities, and 27 per cent in foreign equities.
- The market value of assets invested at March 31, 2001 totalled $2.5 billion.
- The board approved a long-term asset mix policy and investment policy that was recommended by the President and Chief Executive Officer.
Investment performance and benchmark returns for the consolidated pension accounts are as follows:
| Rates of Return on Consolidated Pension Accounts (For fiscal year 2001) | |||
| Portfolio Return (%) |
Benchmark Return (%) |
||
| Canadian equities | (12.0) | (12.2) | TSE 300 |
| Foreign equities | (13.2) | (13.0) | S&P 500, EAFE* |
| Canadian fixed income | 8.3 | 8.3 | SC Bond Universe |
| Consolidated accounts | (4.1) | (4.0) | Policy Benchmark** |
These are time-weighted rates of return, before fees and expenses, for the three consolidated pension accounts and cover the period from April 17, 2000 (the first day funds were invested) to March 31, 2001. They are calculated according to AIMR*** standards and audited as such.
* Morgan Stanley Capital International Europe, Australasia and Far East Index in Canadian dollars, weighted 50/50.
** Based on weights in the investment policy.
*** Association for Investment Management and Research.
