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Section I – Overview

Minister's Message

It is my pleasure to present Natural Resources Canada's 2008-09 Report on Plans and Priorities (RPP), the department's road map to program delivery.

Canada's great wealth of natural resources remains a vital part of our economy. In 2006, the resource sectors directly contributed to 13 percent of the gross domestic product, 6.5 percent of the labour force and 47.4 percent of domestic exports which contributed $91.4 billion to Canada's trade surplus. The sectors are expected to continue this outstanding performance and to provide Canadians across the country, including those in Aboriginal and northern communities, with unprecedented opportunities for jobs and growth.

The department will continue to lead and support the natural resources sectors into the modern knowledge-based global economy. In this environment, fostering innovation, skills, science and technology are paramount in creating a Canadian competitive advantage. The department will also promote Canada abroad as a safe, secure, reliable and sustainable source of natural resources.

The new Major Projects Management Office (MPMO) has been created to support increased development in the resource sectors. This Office will greatly improve the federal regulatory system by enhancing regulatory efficiency, accountability and predictability. The results will be substantial: greater certainty, increased transparency and, ultimately, more timely regulatory reviews - all contributing to more effective governance.

With regard to energy, NRCan will continue to implement our Government's ecoENERGY initiatives. In addition, ongoing investments in science and technology are expected to widen the use of clean energy as well as to reduce the environmental impacts associated with energy production and use.

Canada's forest sector remains a strong contributor to the present and future economy despite a number of challenges, including the mountain pine beetle infestation in British Columbia. NRCan is continuing its efforts to enhance the competitiveness of this vital sector and to support forest communities through creativity, innovation and technology.

Looking to the North, the protection of Canada's sovereignty will be supported by NRCan's extensive experience and expertise in the Arctic, where the department has been providing research support for fifty years. By mapping the area and its great resources, and by conducting related science activities dealing with security and climate change adaptation, we will continue to play a vital role in fulfilling the Government of Canada's strong Arctic vision.

Beyond our borders, the Government has signalled its intention to strengthen Canada's trade investments in South America and elsewhere. Many opportunities in the energy and mining sectors are expected to result as we build stronger ties within the Americas.

Moreover, the department will conduct a full review of the structure of Atomic Energy of Canada Limited to determine if the existing structure is appropriate in a changing marketplace. The review will determine what changes, if any, are required and will be conducted by a dedicated team that will include outside experts.

Through these approaches, NRCan is actively supporting the priorities of the Government of Canada by contributing to a more prosperous future for Canada, a healthy environment for Canadians, the protection of Canada's Arctic sovereignty, enhanced safety and security, and effective governance.

Together, by focusing on clear goals and real results, we are building a stronger Canada and making life better for Canadians and their families.

Gary Lunn
Minister of Natural Resources

Management Representation Statement

I submit for tabling in Parliament, the 2008-09 Report on Plans and Priorities (RPP) for NRCan.

This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2008-09 Estimates: Report on Plans and Priorities and Departmental Performance Report.

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat (TBS) guidance.
  • It is based on the Department's approved Strategic Outcome and Program Activity Architecture that were approved by the Treasury Board.
  • It presents consistent, comprehensive, balanced and reliable information.
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it.
  • It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.
Cassie J. Doyle
Deputy Minister

Organisational Information

NRCan Organisational Chart

Accountabilities:

  1. Assistant Deputy Minister, Major Projects Management Office
  2. Assistant Deputy Minister, Earth Sciences Sector
  3. Assistant Deputy Minister, Energy Technology & Programs Sector
  4. Assistant Deputy Minister, Energy Sector
  5. Assistant Deputy Minister, Canadian Forest Service
  6. Assistant Deputy Minister, Minerals and Metals Sector
  7. Assistant Deputy Minister, Corporate Management and Services Sector
  8. Assistant Deputy Minister, Science and Policy Integration
    Associate Assistant Deputy Minister/Chief Scientist, Science and Policy Integration
  9. Director General, Audit and Evaluation Branch
    Director General, Communications Branch
    General Counsel, Legal Services

Our Programs

NRCan manages its program delivery through three strategic outcomes and seven program activities. Most program activities are divided into smaller groups of sub-activities and sub-sub-activities that are designed to achieve the expected results that collectively contribute to the realization of the strategic outcomes.

RNCan Programs

Program Activity Architecture (PAA) Crosswalk

NRCan received Treasury Board approval to modify its PAA for 2008-09. The table below provides a crosswalk for NRCan's 2007-08 planned spending to the new PAA.


  2007-08 Strategic Outcome and Program Activities  
  S.O. 1 – Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards  
2008-09 Strategic Outcomes and
Program Activities
Earth Sciences Energy Sustainable Forest Minerals & Metals Total
2007-08
S.O. 1 – Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians          
Economic Opportunities for Natural Resources 96.9 2,388.3 72.6 7.7 2,565.6
Natural Resource-based Communities 0.0 0.0 16.2 2.0 18.2
S.O. 2 – Canada is a world leader on environmental responsibility in the development and use of natural resources          
Clean Energy 0.0 354.6 0.0 36.0 390.6
Ecosystems Risk Management 15.0 141.5 23.4 0.9 180.8
S.O. 3 – Natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada          
Adapting to a Changing Climate and Hazard Risk Management 43.7 0.0 115.6 7.5 166.8
Natural Resource and Landmass Knowledge for Canadians 80.3 0.0 26.0 3.6 109.9
Geomatics Canada Revolving Fund          
     Operational expenditures 3.6 0.0 0.0 0.0 3.6
     Respendable revenue (3.6) (0.0) (0.0) (0.0) (3.6)
Total 2007-08 Planned Spending ($M) 235.9 2,884.4 253.9 57.7 3,431.9

Voted and Statutory Items Listed in Main Estimates

($ millions)


Vote or Statutory Item   Main Estimates
2008-09
Main Estimates
2007-08
  1 Operating expenditures * 762.9 709.3
  - Capital expenditures ** 0.0 2.7
  5 Grants and contributions *** 437.9 328.1
  (S) Minister of Natural Resources - Salary and Motor Car Allowance 0.1 0.1
  (S) Contributions to Employee Benefit Plans 54.6 54.4
  (S) Canada-Nova Scotia Development Fund 0.5 1.9
  (S) Canada-Newfoundland Offshore Petroleum Board 6.0 5.0
  (S) Canada-Nova Scotia Offshore Petroleum Board 2.9 2.9
  (S) Payments to the Nova Scotia Offshore Revenue Account 407.3 450.0
  (S) Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund 670.6 590.7
  (S) Geomatics Canada Revolving Fund
  - Operational expenditures 1.9 3.6
  - Respendable revenue (1.9) (3.6)
  Total NRCan 2,342.8 2,145.1

* Increased funding in 2008-09 is primarily due to the Clean Energy Agenda.

** A notable change in 2008-09 is the elimination of NRCan's Capital Vote and the renumbering of the grants and contribution Vote to 5 (formerly Vote 10) since a department's votes must be sequential. As a result, the capital expenditures are now included under Vote 1.

*** Increased funding in 2008-09 is primarily due to the new ecoENERGY for Biofuels contribution program.

Planned Spending and Full Time Equivalents


Budgetary ($ millions) Forecast Spending
2007-08
Planned Spending
2008-09
Planned Spending
2009-10
Planned Spending
2010-11
Economic Opportunities for Natural Resources * 1,270.7 1,280.3 1,164.3 1,113.8
Natural Resource-based Communities 16.4 30.0 19.5 19.5
Clean Energy 404.9 571.7 655.6 763.8
Ecosystem Risk Management 184.3 227.4 204.9 213.9
Adapting to a Changing Climate and Hazard Risk Management 183.2 117.1 71.9 69.7
Natural Resource and Landmass Knowledge for Canadians 109.1 140.9 122.1 106.3
Geomatics Canada Revolving Fund 3.6 1.9 1.9 1.9
Budgetary Main Estimates (Gross) 2,172.2 2,369.3 2,240.2 2,288.9
Less: Respendable Revenue (27.1) (26.5) (25.6) (25.6)
Total Main Estimates 2,145.1 2,342.8 2,214.6 2,263.3
Adjustments:
2007-08 Supplementary Estimates (A) **

(1.7)

0.0

0.0

0.0
2007-08 Supplementary Estimates (B) *** 1,288.5 0.0 0.0 0.0
Other Adjustments (B) **** 0.0 7.2 20.9 24.2
Total Adjustments 1,286.8 7.2 20.9 24.2
Total Planned Spending 3,431.9 2,350.0 2,235.5 2,287.5
Less: Non-respendable revenue (1,041.6) (1,084.2) (1,025.1) (982.6)
Plus: Cost of services received without charge 36.6 41.9 41.8 42.0
Net Cost of Program 2,426.9 1,307.7 1,252.2 1,346.9
Full Time Equivalents (FTEs) 4,289 4,470 4,432 4,412

* Planned spending includes statutory programs - Atlantic offshore: $1,087.4M in 2008-09; $1,026M in 2009-10; and $984.1M in 2010-11.

** Major items included in the 2007-08 Supplementary Estimates (A): $3.6M to improve the performance of the regulatory system for major natural resource projects; $1.6M for the relocation and renewal of the CANMET Materials Technology Laboratory; ($1M) to support the restoration of Stanley Park, a National Historic Site in Vancouver, British Columbia; and ($0.5M) to support the ecological restoration of Point Pleasant Park in Halifax, Nova Scotia.

*** Major items included in the Supplementary Estimates (B): $1,150M for Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund; $188.6M for Newfoundland Fiscal Equalization Offset Payments; $5.5M in support of the Forest Industry Long-Term Competitiveness Strategy; $2.8M for real property health and safety projects; and ($52.8M) for Payments to the Nova Scotia Offshore Revenue Account.

**** In 2008-09, this includes: $2.8M for real property health and safety projects; $2M for biotechnology; $1.4M for international actions in support of the Clean Air Agenda, and $1M for an Atomic Energy of Canada Limited special project team. In 2009-10: $14.7M for the relocation of the Materials Technology Laboratory to Hamilton, Ontario; $2.8M for real property and safety projects; $2M for biotechnology; and $1.4M for international actions in support of the Clean Air Agenda. In 2010-11: $20.9M for the relocation of the Materials Technology Laboratory to Hamilton, Ontario; $2M for biotechnology; and $1.3M for international actions in support of the Clean Air Agenda.

Summary Information

NRCan develops, implements and delivers integrated policies, programs, and science and technology (S&T) for the sustainable development and responsible use of Canada's mineral, energy and forestry resources. The department uses its expertise in earth sciences to collect and disseminate information used to better understand Canada's landmass. It also maintains key roles related to the safety and security of people and natural resources, including security of natural resource infrastructure and supply.

NRCan's Minister is responsible for, or has responsibilities under, more than 30 Acts of Parliament. The core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act, and the Forestry Act. The remaining Acts set out the terms for the management of Crown lands and of Canada's natural resource policies, including energy and nuclear policy.

The department's work is concentrated in areas of core federal jurisdiction that fall within its legislated roles and responsibilities, which includes:

  • national objectives related to economic development, environmental protection, supply security and resource-related health and safety;
  • natural resource management on Crown lands, the North and offshore areas;
  • uranium and nuclear power; and
  • international and inter-provincial trade.

NRCan works towards achieving the following three strategic outcomes which are supported by its Program Activity Architecture (PAA):

  • natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians;
  • Canada is a world leader on environmental responsibility in the development and use of natural resources; and
  • natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada.

Financial Resources (M$)


2008-09 2009-10 2010-11
2,350.0 2,235.5 2,287.5

Human Resources


2008-09 2009-10 2010-11
4,470 4,432 4,412

Departmental Priorities

NRCan has identified the program priorities that are critical to the realization of its strategic outcomes over the planning period. These priorities stem from related issues of importance to Canadians, and shape our policies, programs and science and technology.


Priorities Type*
1. Addressing climate change and air quality through science, technology and adaptation previously committed
2. Enhancing Canada's forest sector competitiveness previously committed
3. Supporting Canada's Arctic sovereignty through geoscience and mapping activities ongoing
4. Improving regulatory performance for major natural resource projects previously committed
5. Advancing Canada's resource interests and sustainability efforts in the Americas and globally ongoing

* An ongoing priority has no end date; a previously committed priority has an estimated end date and was committed to in prior budgets or main estimates documents.

Program Activities by Strategic Outcomes


Program Activity Expected Results Planned Spending ($M) Contributes to the following priority*
2008-09 2009-10 2010-11
Strategic Outcome 1 – Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians 2, 4 and 5
Economic Opportunities for Natural Resources ** Competitive national and international markets, stable economic opportunity and investment in natural resources 1,280.8 1,163.8 1,112.8  
Natural Resource-based Communities Increased knowledge, skills and capacity to benefit from the evolving natural resource economy within resource-based communities (both Aboriginal and non-Aboriginal) 29.6 33.9 39.9  
Strategic Outcome 2 – Canada is a world leader on environmental responsibility in the development and use of natural resources 1, 2 and 4
Clean Energy Increased energy efficiency, increased production of low-emission energy, and reduced environmental impacts associated with energy production and use 562.0 646.7 753.8  
Ecosystem Risk Management Canada understands and mitigates risks to natural resource ecosystems and human health 226.6 204.0 212.7  
Strategic Outcome 3 – Natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada 1, 2 and 4
Adapting to a Changing Climate and Hazard Risk Management Canada adapts to a changing climate and has the knowledge and tools to manage risks associated with natural hazards and hazards arising from human activities 111.9 66.7 64.2  
Natural Resource and Landmass Knowledge for Canadians Government has the necessary natural resource and landmass knowledge and systems required to both govern the country and position Canada to play a leadership role in federal-provincial-territorial and international fora 139.1 120.4 104.1  
Geomatics Canada Revolving Fund The demands by NRCan, other government departments and industrial clients for revolving fund products and services are met through full cost recovery 1.9
(1.9)
1.9
(1.9)
1.9
(1.9)
 
Total NRCan 2,350.0 2,235.5 2,287.5  

* Priority 1 (Addressing climate change and air quality through S&T and adaptation; 2 (Enhancing Canada's forest sector competitiveness); 3 (Supporting Canada's Arctic sovereignty through geoscience and mapping activities; 4 (Improving regulatory performance for major natural resources project; 5 (Advancing Canada's resource interests and sustainability efforts in the Americas and globally).

** Planned spending includes statutory programs - Atlantic offshore: $1,087.4M in 2008-09; $1,026M in 2009-10; and $984.1M in 2010-11.

Operating Context

Natural resources have been an economic cornerstone in Canada throughout its history. They have contributed to the development of Canada as a modern industrial society generating wealth and a higher quality of life for generations of Canadians particularly in the hundreds of communities in every region located near resource deposits.

The predominant position of the Canadian natural resource sectors is compelling. In 2006, the sectors directly contributed to 13% of the Gross Domestic Product (GDP), 6.5% of the labour force and 47.4% of domestic exports which contributed $91.4 billion to Canada's trade surplus. These numbers are a result of Canada being a world leader in the safe, secure and reliable production of many important natural resource commodities. Canada is the world's largest uranium and potash producer, the second in nickel production and the third in natural gas, aluminium and diamond production. Our forestry endowment is the second largest on a per capita basis but we are first in forest product exports. Canada is second only to Saudi Arabia in proven oil reserves and may move from seventh to fourth place in oil production by 2015. Rising global demand and prices for some resource commodities combined with the fact that Canada's landmass contains significant undiscovered or undeveloped natural resources creates incredible future growth potential in the 21st century for our natural resource sectors.

While Canada's natural resource sectors hold a prominent global position and an optimistic future, merely possessing a rich resource endowment will not ensure economic success, a higher quality of life and a healthy environment for Canadians. Given that Canada's mineral and energy resources are declining, the way we harness and manage that endowment matters now more than ever. In the modern knowledge-based economy, the development of new innovative ideas, skills and technologies through science and technology investments holds the utmost importance across the value chain from exploration and extraction to end use. Our geoscience plays a central role in identifying and evaluating new energy and mineral resource deposits. Furthermore, the natural resource sectors and NRCan face many challenges including an increasingly competitive global market, impact of natural resources' activities on the environment and our Arctic sovereignty and various corporate challenges. NRCan is well placed to turn these challenges into opportunities along with the leadership and engagement of key stakeholders including private industry, provincial and territorial governments, the research and development sector, and Aboriginal and other local communities near resource projects.

Challenges

The ability to remain competitive will determine Canada's place in the global natural resources marketplace. Because of their rapidly growing populations and economies, countries like China and India are fuelling the rising global demand for natural resources and increasing commodity prices. As a net exporter of resources, this provides considerable opportunities for Canada. However, other resource rich countries who are major natural resource exporters - like Australia, Brazil, Russia and Sweden -- are challenging Canada's share in existing and new markets because of their increased technological capacity, modern infrastructure, lower labour costs, economies of scale, and lower regulatory burdens. In order to remain globally competitive in this environment, Canada's natural resource sectors must raise their level of productivity that, although above the national average domestically, does not compare favourably to international competitors. Meeting these challenges will require promoting Canada's international reputation as a safe, secure and reliable supply of natural resources and associated science and technology while encouraging better international standards, good governance and establishing new trading relationships.

Balancing economic growth, social needs and maintaining a healthy environment is the challenge of sustainable natural resource development and use. Growth in the natural resource sectors can generate wealth for Canadians but we must do so with the environmental footprint in mind.

A variety of environmental concerns related to resource development have become prominent in public discourse, particularly those related to climate change caused by the generation of greenhouse gas emissions. Canadians are also concerned about environmental changes in the North, air pollution, water quality and water use issues and the ensuing adverse effects on human health and quality of life. Natural disturbances such as pest infestations have severely impacted Canada's forests, and other unpredictable natural hazards, such as earth quakes, floods, forest fires, and landslides can cause significant damage. Due to its expertise in the earth sciences, NRCan is well-positioned to help Canadians develop the tools and knowledge needed to adapt to climate change and other environmental challenges.

While the challenges facing the natural resource sectors are complex and varied, the opportunities for growth and development are exciting. Sustainable development - at the heart of NRCan's mandate – presents opportunities to address these challenges through innovative public policy that emphasizes and integrates economic development, social responsibility and environmental leadership.

Departmental Response

Our Program Priorities

  1. Addressing climate change and air quality through science, technology and adaptationNRCan will contribute to the Government of Canada's ecoACTION plan1 through the development of improved energy technologies that contribute to a cleaner, healthier environment by reducing greenhouse gas emissions and air pollutants. The department will help position Canada as a world leader on environmental responsibility in the development and use of natural resources through science, technology, programs, services, incentives and regulation aimed at increasing energy efficiency, the production of cleaner low emission energy and reducing the environmental impacts associated with energy use and production.

    NRCan will also provide knowledge and tools for Canadians to better understand and adapt to a changing climate. More information on this priority can be found under program activities 2.1 and 3.1.
  2. Enhancing Canada's forest sector competitiveness – Canada's forest sector is undergoing a major transformation as it faces a number of challenges and an increasingly competitive global market. The combined effects of the U.S. housing crisis, a strong Canadian dollar, global industry restructuring and the destructive mountain pine beetle infestation have created a very difficult business environment for the sector. In the context of this period of transition, NRCan is investing in the research and development of innovative technologies that will expand opportunities beyond the traditional product lines creating new international market opportunities. Central to this effort is the NRCan-led Forest Industry Long-Term Competitiveness Strategy. NRCan will also continue investing in forest communities to assist them to adjust and seize new opportunities from forest sector transition and will work with stakeholders to mitigate the effects of forest disturbances such as pest infestations and wildland fire. More information on this priority can be found under program activities 1.1, 1.2, 2.2, 3.1 and 3.2.
  3. Supporting Canada's Arctic sovereignty through geoscience and mapping activities – Opportunities for social and economic development are emerging across the Arctic owing to increased access, high commodity prices and substantial land-based and offshore energy and resource potential. NRCan will continue its mapping activities in the North. Enhancing scientific research in the North, such as more comprehensive geoscience and related seabed mapping, will support Canada's sovereign Arctic rights and provide the necessary information to make a successful submission under the United Nations Convention on the Law of the Sea (UNCLOS) demonstrating Canada's rights over the extended continental shelf in the Arctic and Atlantic Canada and the natural resources it contains. This research will enable sustainable resource development in the North that will generate economic and social benefits, particularly for northern Canadians. Through these geoscience and mapping activities, NRCan will be making a significant contribution to the Government of Canada's northern strategy and efforts to assert Canadian Arctic sovereignty that were highlighted in the 2007 Speech from the Throne. More information on this priority can be found under program activities 1.1 and 3.2.
  4. Improving regulatory performance for major natural resource projects – Given the high commodity prices and demand for many natural resources, the number of major resource projects has grown exponentially in recent years imposing strains on the regulatory system. In response, NRCan will be leading the Major Projects Management Office (MPMO) that will provide a single point of entry into the federal regulatory process for all stakeholders. More specifically, the MPMO will establish comprehensive project agreements for each project, clearly articulating the roles and responsibilities of each department and timeline-based performance targets. A monitoring and tracking system for major resource projects will allow stakeholders to transparently monitor the progress of individual projects through the regulatory process. Included in Budget 2007 and highlighted in the 2007 Speech from the Throne, the MPMO is an important step towards improving the management and performance of the federal regulatory system for major natural resource projects while better protecting the health and safety of Canadians and strengthening our system of environmental assessments. More information on this priority can be found under program activities 1.1, 2.1, and 2.2.
  5. Advancing Canada's resource interests and sustainability efforts in the Americas and globally – To remain competitive and secure access to global resource markets, Canada's natural resource sectors must be prepared to respond and adapt to changing conditions in the global marketplace and international policies. This year, NRCan and the Government of Canada are strategically pursuing its natural resource policy objectives abroad by fostering global, regional and bilateral engagement. These efforts will receive particular focus in the Americas, a region where the Speech from the Throne called for Canada to take a pro-active role. Through bilateral and multilateral engagement, NRCan and its federal partners and non-government organizations, will pursue a number of trade and investment agreements, the transfer and export of Canadian science and technology, bilateral technical assistance, development of sustainable international standards and governance practices and the advancement of corporate social responsibility. These efforts will build and promote Canada as a safe, secure, and reliable source of natural resources as well as a preferred partner in providing or developing innovative science and technology solutions for sustainable resource development and use. More information on this priority can be found under program activities 1.1, 2.1 and 3.2.


1 Environment Canada is the lead department for this horizontal initiative.

Our Management Priorities

In the context of the challenges and opportunities facing the natural resources sectors and modern public sector management, NRCan is working to become a more integrated, knowledge-based and results-oriented organization. To this end, the department will begin implementing a natural resources policy framework that will allow it to shift from a sectoral approach to a more integrated model where the economic, environmental, and social needs of Canadians are paramount. The framework will encourage collective leadership, innovative collaboration and information sharing across the department and with stakeholders in pursuit of common goals. NRCan is also strengthening its planning processes through the implementation of an integrated "one department planning approach".

In recognition of the renewed importance of science and technology in a knowledge-based economy, NRCan is developing a science and technology strategy that, aligned with the Government of Canada's Advantage Canada strategy, aims to create a competitive Canadian advantage in entrepreneurship, knowledge and skilled people through science and technology. An integrated natural resources policy framework and other management priorities will enable the department to make optimal use of all of its skills and tools to address the priorities of Canadians.

NRCan and the public service as a whole are facing unprecedented human resources and talent management challenges arising from an aging workforce, a competitive labour market, and critical skill shortages. In response to these challenges, NRCan has created a Human Resources Renewal Committee that will set the department's strategic direction for talent management. The department is already beginning to implement strategies for corporate-wide talent management; fostering a learning environment; a quicker and more collective approach to staffing across the department; and enhanced recruitment of younger professionals and other highly-skilled personnel to fill mission-critical and other specialized positions.

NRCan will be faced with very significant real property challenges over the next five years. By objective standards, the inventory is considered to be very tired; the average age of assets is 45 years. A large majority of these assets have never received a full renovation treatment typically undertaken when a building exceeds 25 years of age. With challenges come opportunities, and the management of real property within NRCan is an area where we are well-positioned to continue taking advantage of our current strengths such as: a long term capital plan; a well-developed real property management framework; strong leadership; a Real Property Strategy for the National Capital Region; abundant use of available tools for supply and demand planning; and supportive processes.

Another management priority is to create formal administrative structures to better integrate and manage the coordination of the natural resources portfolio. The structures will be tailored to specific portfolio roles and responsibilities as well as requirements. They will enhance portfolio coordination by fostering coherent policy implementation, good governance, communication, information sharing and accountability.