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Section II — Analysis of Program Activities by Strategic Outcome

2.1 Analysis by Program Activity

Agency Strategic Outcome Performance Indicators

Strategic Outcome: Transparent, fair and timely dispute resolution and economic regulation of the national transportation system.

Performance Indicator	Target	Date to Achieve Target
Feedback from users of, service providers within, and others affected by the national transportation system on perceived transparency, fairness, and efficiency of the decision-making process.	Conduct benchmark surveys and set targets. Conduct subsequent survey.	2009–2010 2010–2011
Percentage of discretionary rulings overturned by the Federal Court of Appeal on basis of procedural fairness.	0%	Ongoing
Percentage of cases resolved within prescribed time limits.	Disputes resolved formally: 65% resolved within 120 days. Determinations: 95% issued within 120 days. Licences: 85% issued within 14 days. Charter permits: 92% issued within 30 days. Mediation: 100% completed within 30 days (when no extension is requested).	April 2011 Ongoing

2.1.1 Program Activity 1: Economic Regulation

Description

This program activity is responsible for the economic regulation of the national transportation system. It is responsible for a wide range of matters involving air, rail and marine modes of transportation under the legislative authority of Parliament, and, for certain accessibility matters, extra-provincial bus transportation. The program derives its authority from the Canada Transportation Act, as well as other laws and regulations that it is mandated to administer.

Its role can be best depicted along a continuum, in which the transportation policies emanating from the legislative and executive branches of the Government of Canada are implemented in an impartial and sound manner by the Agency as a quasi-judicial body and supported by its staff.

Body Responsible	Parliament, Government, Minister	Agency	Agency	Agency
Instrument	Laws, directives, policies, regulations	Regulations, codes of practice, guidelines	Decisions, orders, rules	Warnings, administrative penalties
Function	Policy-making	Regulation	Determinations	Enforcement

The program has two main functions:

• industry determinations: to make determinations or to provide authorities on specific cases or applications as per the applicable legislative/regulatory requirements; and
• industry regulation: to develop and implement regulations, guidance documents, and codes of practice to implement transportation policies and clarify the Agency's expectations to industry participants, and  provide a sound procedural foundation for rendering specific decisions.

Industry determination is the core operational function and is highly dependent on the foundation set by industry regulation. The Economic Regulation program also includes an enforcement division that ensures that the legislation and regulations administered by the Agency and the decisions it renders are respected by industry participants.

The scope of responsibilities of the Economic Regulation program is broad and varied. Within the context of a pro-competitive transportation policy framework, responsibilities extend to targeted aspects of the national transportation system, as follows:

Market Entry – ensures that entrants into the Canadian transportation marketplace meet basic public policy requirements by:

• licensing Canadian and foreign air carriers and providing them with special authorities and exemptions (wet leases, extra bilateral authorities, etc.);
• supporting the negotiation of international air service agreements to provide  expanded market opportunities for air carriers and stimulate improved air services;
• issuing certificates of fitness for federal railways to ensure that they have adequate third-party insurance liability; and
• determining if Canadian ships are available and suitable to operate commercial services proposed to be provided by foreign ships in Canadian waters.

Market Behaviour – protects the interests of shippers, travellers, persons with disabilities, and other parties by:

• determining the maximum amount of revenues that Canadian National and Canadian Pacific railway companies can earn for the movement of Western grain;
• establishing the frameworks in the national transportation system that support the mobility of persons with disabilities without undue obstacles, including the promulgation of regulations, codes of practice and other standards, education and outreach and monitoring and assessing industry compliance;
• setting the rules of accounting, depreciation rates and rates of return on capital for certain federally regulated railways to assist the Agency in providing certain pro-competitive remedies to shippers and public transportation service providers;
• determining whether the terms and conditions of carriage by air are clear, just and reasonable; and
• approving the adequacy of the protection of the advance payments made to air carriers to protect the users of air charters.

Market Exit – determines conditions under which carriers can or must exit certain markets by:

• suspending and cancelling air licences when basic public policy requirements are no longer being met (including insurance and air operator certificate);
• approving air carrier termination of service notices; and
• establishing the net salvage value of railway lines to facilitate their orderly transfer for railway or non-railway uses.

The applications handled by the program vary greatly in complexity and volume levels, from the routine and voluminous air charter flight notifications to the very complex and significant, but small number of, decisions associated with the Grain Revenue Cap. Unlike the Adjudication and Alternative Dispute Resolution program, the vast majority of applications handled by this program involve only one party, which is seeking an authorization or determination from the Agency.

The Agency's Strategic Plan provides the foundation and sets the context for the action plan for the Economic Regulation program, which makes direct and concrete contributions to advance some of the more focussed operational objectives including:

• issuing regulatory authorizations requested by transportation service providers on a timely basis;
• monitoring the compliance with codes of practice and regulations concerning accessibility;
• documenting, reviewing and harmonizing processes across the Agency;
• committing to on-going process improvements; and
• advancing the Agency-wide priorities.

Expected Results

The demands on the program are driven by legislative and regulatory requirements, which must be administered in the context of an evolving industry. The resource requirements of the program, which are expected to be relatively stable over the next three years, will be deployed so that the program can meet its responsibilities and deliver the following expected results.

Program Activity: Economic Regulation

Human Resources (FTEs) and Planned Spending ($000s)
2009–2010		2010–2011		2011–2012
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
119	11,902	119	11,942	119	11,942

Expected Results	Performance Indicators	Targets	Target Date
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of charter permits issued within 30 days.	92%	Ongoing
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of licences issued within 14 days.	85%	April 2011
Compliance with the Canada Transportation Act and its attendant regulations.	Percentage of compliance with the requirements to hold a valid licence, insurance and Air Operator Certificate, as determined by inspections.	100%	Ongoing
Compliance with the Canada Transportation Act and its attendant regulations.	Percentage of compliance with requirements of the Act and regulations other than licence, insurance and Air Operator Certificate requirements, as determined by inspections.	85%	Ongoing
Enhanced monitoring of and compliance with accessibility regulations and codes of practice	Level of compliance with accessibility provisions	Development of new monitoring and compliance methodology and tools Conduct monitoring and set targets Conduct assessments and report on compliance	April 2009 April 2010 April 2011
The Agency efficiently protects the interests of operators of Canadian registered ships while allowing access to foreign ships when suitable Canadian registered ships are not available.	Percentage of applications processed prior to the specified deadline.	95% prior to the commencement date when no offers are made 80% issued within 90 days when offer is made	Ongoing April 2011
Environmental, economic and social impacts of railway construction projects, railway lines and yards are mitigated.	Percentage compliance with prescribed mitigation conditions as determined on follow-up.	100%	Ongoing
Regulatory authorities required in railway operations are issued on a timely basis upon meeting the regulatory requirements.	Percentage of determinations issued prior to specified timeline of 120 days.	95%	April 2011

Goals and Action Plan

For the Agency to continue in its role as a leading tribunal of the Government of Canada, this program activity must excel in making determinations and administering regulations. This calls for focussed attention on the following two goals:

• Managing caseload in a sound, responsive, timely and efficient manner; and
• Maintaining up-to-date, relevant and clear Agency regulatory frameworks.

Proposed actions to further these two goals are explained below.

Managing caseload in a sound, responsive, timely and efficient manner

The Agency is an expert tribunal rendering impartial, sound and timely decisions in an efficient manner consistent with the federal transportation policies, regulation and legislation. Sound decision-making is the primary consideration in all of the proceedings that it manages and remains an ongoing focus by:

• assessing the relevant factors for consideration;
• determining best courses for addressing both procedural and substantive matters;
• rendering impartial decisions that are clearly laid out, particularly when decisions are potentially controversial or set new precedents; and
• respecting procedural fairness and natural justice at all times.

Timely and efficient decision-making is also a key focus of the Agency. Most of the Agency's decisions are subject to statutory deadlines. Therefore, vigilance and attention by all parties is required to ensure that decisions are timely and meet the needs of users.

The Agency recognizes that its decisions have an immediate and direct impact on the transportation sector. Industry is more responsive when it knows what it can and cannot do, and the Agency can assist industry by adopting more stringent service standards. To achieve this, procedures will be reviewed to ensure optimal turnaround times, and performance measures will be monitored to ensure service target deadlines are respected.

Action Plan:

To properly manage the program's caseload in a sound, responsive, timely and efficient manner, the following actions will be pursued:

• review and streamline process for quasi-judicial decisions that are of a more administrative or routine nature by 2009–2010, where possible;
• establish a three-year plan for documenting and streamlining the approach/procedures for managing caseload in each of the main lines of business, including the documentation necessary to effectively support decision-making, and make measurable progress in priority areas;
• automate the production of routine and procedural documents using the Agency's internal case management application tool (ie. AppInfo); and
• continue to monitor performance measures and improve performance management tools by addressing gaps in performance and adjusting targets accordingly.

Maintaining an up-to-date, relevant and clear Agency regulatory framework

Regulations are a key instrument of public policy – they express the will of government and reflect the public interest. The regulations administered by this activity provide the foundation upon which determinations are made that impact on the Agency's work and the behaviour of industry. Outdated regulations can have a negative influence both on the Agency and the industry it regulates.

Guidelines and codes of practice are other instruments that can be used to implement policies. Good guidance documents and codes of practice facilitate a more timely, consistent and transparent treatment of applications by informing industry participants and stakeholders what is expected of them.

Action Plan:

The Agency plans to review and update, where appropriate, existing regulations, codes of practice and guidelines over the next few years to ensure they are up to date, relevant and clear. Immediate attention will be placed on the following initiatives:

• Regulations
  • update the Air Transportation Regulations to bring them in line with the existing legislative framework and charter policies, and begin to consider future enhancements;
  • initiate review of the Railway Costing Regulations to bring them up to date;
  • implement Phase 2 of the Uniform Classification of Accounts (UCA) project with the goal to migrate industry to the International Financial Reporting Standard (IFRS); and
  • readjust priorities in light of any government-identified priorities for regulatory development.

• Codes of Practice
  • develop and implement new monitoring and compliance methodology and tools for the accessibility regulations and codes of practice that will provide the foundation for monitoring activities, establishing targets, conducting assessments and reporting compliance.

• Guidance Documents
  • develop guidance material for service providers to comply with provisions  pertaining to tactile row markers and space for service animals in the code of practice for aircraft accessibility;
  • finalize the development and start implementing a plain language guidance document for air carrier tariffs to contribute to clear and simple tariffs that meet the needs of air carriers, transportation users and the regulator;
  • update air licensing and charter guidance documents;
  • update the guidance document on Net Salvage Value Determination; and
  • issue clarifications/amendments to the Coasting Trade Guidelines.

2.1.2 Program Activity 2: Adjudication and Alternative Dispute Resolution

Description

The Agency has the jurisdiction to resolve transportation issues affecting air, rail and marine modes of transportation under the legislative authority of Parliament, as well as matters relating to the accessibility of the system to persons with disabilities.

Applicants seeking the Agency's assistance range from affected users such as passengers and shippers, to transportation service providers,  municipalities, road authorities, landowners and other affected parties. Applications cover a wide variety of matters. Some matters can be relatively simple and dealt with quickly while others can be very complex and take many months, even years to resolve. The Agency is guided by various Acts and regulations. In all cases, the Agency strives to issue balanced and fair decisions that are consistent with Agency precedents and that respect the decision of superior courts.

Issues addressed by the Agency include:

Air transportation

• complaints related to air carriers' application of tariff provisions (particularly the terms and conditions of carriage) and to prices applied by carriers to non-competitive routes within Canada to ensure that air carriers licensed to operate in Canada meet the legislative requirements in place to protect Canadians; and
• appeals of new or revised air navigational charges imposed by NAV CANADA to ensure that principles used to establish them are in compliance with the legislation.

Rail transportation

• disputes between shippers and rail carriers on various matters, to ensure that shippers have competitive access to more than one rail carrier, adequate level of service and reasonable rates;
• disputes between railway companies and municipalities, road authorities, landowners and others regarding rail crossings and rail infrastructure issues to ensure a balance between parties; and to ensure that noise and vibration caused by railways are reasonable;
• assessments of the environmental, operational, social and other impacts of proposed railway construction projects, and orders of corrective measures as required to ensure the requirements of the Canadian Environmental Assessment Act and the interests of localities affected by the proposed lines are taken into account; and
• complaints by public passenger rail service providers concerning disputes with railway companies affecting the use of a railway, its land, equipment, facilities or services to determine the appropriate amounts to be paid.

Marine transportation

• objections to proposed pilotage charges to determine whether the pilotage authority has based its fees to continue operations on a self-sustaining financial basis, and whether the proposed user charges are fair, reasonable and in the public interest;
• complaints regarding user fees charged by Canadian port authorities and the St. Lawrence Seaway Management Corporation, and determine if they are unjustly discriminatory; and
• complaints pertaining to shipping conference agreements, or actions by a member of a cartel of shipping lines, that substantially reduce competition and result in an unreasonable increase in price or a reduction in service.

Accessible transportation

• complaints regarding the accessibility of all modes of transportation in the national transportation system to ensure that undue obstacles to the mobility of persons with disabilities are removed.

Disputes are resolved in a variety of methods: through informal facilitation by Agency staff, through Agency appointed mediators, through an arbitration process administered by the Agency, or through the Agency's formal adjudicative process.

Program Activity: Dispute Resolution

Human Resources (FTEs) and Planned Spending ($000s)
2009–2010		2010–2011		2011–2012
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
62	6,584	62	6,564	62	6,564

Expected Results	Performance Indicators	Targets	Target Date
The Agency efficiently resolves complaints on air services, weighing the evidence submitted by the parties.	Percentage of disputes resolved formally within 120 days.	70%	April 2011
The Agency efficiently resolves complaints about obstacles to the mobility of persons with disabilities, weighing the interests of persons with disabilities with those of the industry in assessing whether the obstacle is undue.	Percentage of disputes resolved formally within 120 days	50%	April 2011
The Agency efficiently resolves disputes by determining whether pilotage charges are in the public interest and whether port fees and seaway tolls are not unjustly discriminatory.	Percentage of disputes resolved formally within 120 days.	70%	Ongoing
The Agency efficiently resolves disputes between shippers, farmers, landowners, road authorities, utility companies, all levels of government, and railway companies.	Percentage of disputes resolved formally within 120 days.	75%	April 2011

Expected results

Resolving disputes in a fair, transparent and timely manner helps achieve a competitive, efficient and accessible transportation system and helps meet the needs of users, service providers and other affected parties. The Agency encourages parties to work together to either avoid disputes or resolve issues in a collaborative fashion. Voluntary and informal processes are generally faster, more effective and less costly than formal adjudication, and as such the Agency will continue its efforts to resolve disputes using these alternative dispute resolution methods. It will also focus on improving the timeliness of resolving formal disputes through adjudication.

It is difficult to predict the nature and number of complaints that will be brought to the Agency, but it is expected that, with the Agency's additional responsibilities, such as new provisions in the Act which provide shippers with greater recourse to obtain adequate and competitive service, as well as the mandate to hear complaints concerning rail noise and vibration, the number of disputes filed will increase. In addition, those cases that cannot be resolved successfully through informal and voluntary processes tend to be more litigious and complex, and often the parties introduce legal procedural issues, which can significantly add to the processing time. These cases may also raise broad systemic issues, which might result in a public hearing. As well, it is expected that certain new legislative responsibilities will be tested by the parties, resulting in precedents that must be carefully considered.

Goals and Action Plan

The Agency will work to meet the performance goals it has set out by continuing to:

• promote the use of informal resolution processes;
• review its informal and formal processes and procedures;
• reallocate resources as caseload changes among transportation modes;
• monitor performance through its case tracking system; and
• make the necessary modifications and adjustments.

Action Plan:

There will also be a focus on the following initiatives:

• the Agency will establish a Technical Advisory Committee to provide expertise and advice on best practices of general application related to noise and vibration issues. It is expected that this committee along with the Guidelines for the Resolution of Complaints Concerning Railway Noise and Vibration, which the Agency released in late 2008, will greatly assist the Agency in the exercise of its new mandate.
• the Agency currently has a number of cases before it pertaining to allergies. The Agency intends to release decisions on whether the applicants are persons with disabilities for the purpose of Part V of the Canada Transportation Act and if they encountered obstacles to their mobility and, if so, whether the obstacles are undue.
• the Agency will develop further communication material explaining its process in handling accessibility complaints, which should assist parties in these types of transportation disputes.

During the next few years, the Agency may also receive complaints from public passenger service providers that are unsuccessful in negotiating agreements with railway companies about railway property usage. The Agency may fix the amount to be paid to the railway for the use of any of its railway, land, equipment, facilities or services. This is a new mandate for the Agency and there are numerous considerations the Agency must take into consideration when determining the amount to be paid. These types of cases will be complex, resource intensive and have significant implications for both railways and public passenger service providers.

2.1.3 Program Activity 3: Internal Services

Program Activity: Internal Services

Human Resources (FTEs) and Planned Spending ($000s)
2009–2010		2010–2011		2011–2012
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
71	7,666	71	7,645	71	7,645

Description

Internal Services support the needs of programs and other corporate obligations of the Agency. They apply across the Agency and support the delivery of the Agency's plans and priorities and are not specific to a program. This includes: management and oversight services; communications services; legal services; human resources management services; financial management services; information management services; information technology services; real property services; materiel services; acquisition services; and travel and other administrative services.

Goals and Action Plan

The Agency's Strategic Plan has identified “people” as one of its key priorities for which it has the following objectives:

• attract and retain a diverse workforce of highly skilled and motivated people;
• ensure that corporate knowledge and expertise are preserved in the Agency;
• foster a dynamic, creative working environment; and
• enhance employee development.

In addition, the Agency has implemented a comprehensive, integrated human resource planning framework that focuses on corporate human resources management priorities and reflects a philosophy of strategic staffing and recruitment. As part of this framework, a three-year strategic human resources plan, including a succession plan, is being implemented.

The Human Resources Directorate is a key partner in the Agency's achievement of its objectives related to the “people” priority. To ensure that it carries out its role effectively, the Human Resources Directorate has identified the following initiatives for implementation by 2011, specifically:

• continue the implementation of the activities outlined in the strategic human resources plan, and conduct annual reviews and updates to ensure that the plan continues to meet the Agency's strategic human resources needs;
• develop and implement a knowledge management and knowledge transfer framework for the Agency to enhance employee development and to ensure that corporate knowledge and expertise are preserved;
• update Agency competency profiles to create staffing, learning and career development tools for managers and employees to support the implementation of the succession plan, to attract and retain a diverse workforce and to enhance employee development;
• analyse the results of the 2008 Public Service Employee Survey to identify and recommend actions to attract and retain a diverse workforce and to foster a dynamic, creative working environment;
• simplify and improve human resource operational processes, particularly in staffing to support the implementation of the human resources and succession plan; and
• review and improve the Agency's capacity to extract and analyse demographic information from human resource information systems to ensure the most accurate human resources and succession plans.

To enhance the Agency's ability to provide effective, efficient and equitable levels of service to other parts of the Agency, the Information Technology and Information Management Directorate will:

• continue enhancing the Application Information System to add new and revised functions necessary to address client and central agency needs;
• reduce the number of information technology software tools and adopt one standardized and integrated set of tools to deliver Agency services to simplify the training and support required by users;
• implement new, standardized and operational practices that will ensure clarity and predictability for the provision of services to program areas;
• maintain hardware infrastructure to reflect “greening” policies that promote the effective use and life-cycle management of IT, while reducing the potential negative environmental impacts associated with hardware use; and
• continue to adopt and use shared applications and services to produce more effective, efficient and economical delivery of common services within and across government departments and agencies.

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