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The original version was signed by
The Honourable Chuck Strahl, P.C., M.P.
Minister of Indian Affairs and Northern Development, Federal Interlocutor for Métis and Non-Status Indians and Minister of the Canadian Northern Economic Development Agency
Section II – Analysis of Program Activities by Strategic Outcome
Section III – Supplementary Information
August 18, 2009, marked a historic date for Northerners and all Canadians. The Prime Minister announced in Iqaluit, Nunavut, the creation of the Canadian Northern Economic Development Agency (CanNor). As Minister responsible for this new agency, it gives me great pleasure to present CanNor's first Report on Plans and Priorities.
The creation of CanNor is an important element of Canada's Northern Strategy in furthering the development of a strong and diversified economy for the benefit of those who live, work and support their families in the North, and indeed, for all Canadians. Its creation is a further demonstration of the Government's strategic commitment to an integrated approach in promoting economic development in the North. Among other important initiatives, a key commitment under Budget 2009 was to strengthen support for economic activity in the North. With the funding for the creation of CanNor, this commitment has been fulfilled; however, the work in fully realizing the economic opportunity and potential this engenders has only just begun.
As a distinct federal agency, CanNor is headquartered in Iqaluit. I would highlight and am proud to say that CanNor is the only federal organization with a head office in the North with regional offices in each of the three territories and Ottawa. The Northern Project Management Office, with its executive office in Yellowknife, was specifically created to facilitate and coordinate projects in the North.
CanNor will work with territorial governments, First Nations, Métis, Inuit and all stakeholders to harness the vision, strength and fortitude of Northerners.
The creation of CanNor is a major step toward unleashing the North's vast and true potential not only for the benefit of Northerners but also for the benefit of all Canadians.
The Honourable Chuck Strahl, P.C., M.P.
Minister of Indian Affairs and Northern Development,
Federal Interlocutor for Métis and Non-Status Indian and
Minister of the Canadian Northern Economic Development Agency
The Canadian Northern Economic Development Agency (CanNor) was launched by the Prime Minister of Canada on August 18, 2009, in Iqaluit, Nunavut. The 2008 Speech from the Throne committed to establishing a new stand-alone agency focused on northern economic development, a key component under the government's integrated Northern Strategy. Canada's Economic Action Plan followed with a financial commitment of $50 million over five years, leading to the creation of the Agency.
CanNor's mandate is to promote economic development in Canada's three territories: the Northwest Territories, Nunavut and Yukon. It will deliver regional economic development programs in the territories, co-ordinate and serve as the regional delivery agent for certain national economic initiatives, develop related policy, conduct research, administer federal responsibilities in the North (such as official language minority communities and the Regional Federal Councils), and play an advocacy role to support effective program delivery and leverage federal involvement for the long-term prosperity of Northerners. In delivering its mandate, CanNor will help to open up business opportunities and create jobs while meeting specific development needs of the North.
Led by a President, who is also the Agency's Deputy Minister, CanNor operates as an independent federal department under Schedule I.1 of the Financial Administration Act. The Agency's interests and concerns are represented in Cabinet by the Minister of Indian Affairs and Northern Development. The Agency's work will be guided by evidence-based policy development and results-driven accountability.
CanNor will fulfil the same role as other economic development agencies, including co-ordination and delivery of federal economic development activities at the regional level, as well as policy, research and advocacy. Specifically, the Agency will be responsible for:
CanNor is headquartered in Iqaluit, Nunavut, and has a strong presence throughout the North with regional offices in the three territories, as well as a liaison office in Ottawa. The executive office for the Northern Project Management Office, a new initiative under the responsibility of CanNor, is located in Yellowknife, with an on-the-ground presence in Yukon and Nunavut. While the Iqaluit headquarters are being established, some of the functions are currently operating out of the Ottawa liaison office. These will be transferred to Iqaluit as staff is hired in the North and office space and staff accommodations become available.
As CanNor was only established in August 2009, the President and Agency staff will continue to build the foundational components for designing the organization, work that began in earnest in 2009–2010 and will continue in 2010–2011, although with a greater focus on implementation. Fiscal year 2010–2011 will mark a significant year for the Agency.
The Agency will continue to work closely with northern partners and stakeholder groups to ensure a meaningful and consistent program/service delivery approach that takes into account lessons learned and best practices, as well as the unique economic development needs of each territory.
In addition, the Agency will begin developing the capacity to play a strategic role in the alignment of all federal government economic development activity in the North as a means of facilitating and enabling development in the North.
The Program Activity Architecture (PAA) diagram below illustrates CanNor's framework of program activities and program sub-activities. This structure was proposed as part of CanNor's initial Management, Resources and Results Structure (MRRS) in pursuit of its mandate and to contribute to its strategic outcome of developed and diversified territorial economies that support prosperity for all Northerners. It is largely based on the structures of existing regional economic development agencies. It is expected that CanNor's MRRS and PAA will evolve in the coming years to better reflect the Agency's unique operating environment and special role in advocating for Northerners within the federal family.
Strategic Outcome | Program Activities | Program Sub-activities |
---|---|---|
1.0 Developed and diversified territorial economies that support prosperity for all Northerners |
1.1 Business Development | 1.1.1 Innovation and Knowledge |
1.1.2 Entrepreneurship | ||
1.1.3 Sectoral Development |
||
1.2 Community Development | 1.2.1 Aboriginal Economic Development |
|
1.2.2 Community Adjustment |
||
1.2.3 Capacity and Skills Development |
||
1.2.4 Infrastructure | ||
1.3 Policy, Advocacy and Co-ordination |
1.3.1 Policy | |
1.3.2 Advocacy | ||
1.3.3 Co-ordination | ||
1.4 Internal Services | 1.4.1 Governance and Support Management |
|
1.4.2 Resource Management Services |
||
1.4.3 Asset Management Services |
2010–2011 | 2011–2012 | 2012–2013 |
---|---|---|
60,875 | 44,363 | 44,363 |
The financial resources table above provides a summary of the total planned spending for the Agency for the next three fiscal years.
2010–2011 | 2011–2012 | 2012–2013 |
---|---|---|
115 | 115 | 115 |
The human resources table above provides a summary of the total planned human resources for the Agency for the next three fiscal years. It is important to note that these figures may change with requirements that arise as the Agency establishes itself and its operations.
CanNor is in the process of developing its Performance Measurement Framework and identifying expected results, performance indicators and the targets it aims to achieve in pursuing its strategic outcome. |
Program Activity | Forecast Spending 2009–2010 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2010–2011 | 2011–2012 | 2012–2013 | |||
Business Development |
$6,205,514 | $6,156,483 | $6,156,483 | $6,156,483 | Strong economic growth Innovative and knowledge-based economy |
Community Development |
$38,164,456 | $47,494,784 | $30,983,628 | $30,983,628 | |
Policy, Advocacy and Co-ordination | $5,556,591 | $5,472,676 | $5,472,676 | $5,472,676 | |
Internal Services | $1,774,961 | $1,750,665 | $1,750,666 | $1,750,666 | |
Total Planned Spending | $60,874,608 | $44,363,453 | $44,363,453 |
Operational Priorities | Type* | Links to Strategic Outcome** | Description |
---|---|---|---|
Excellence in program delivery | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Building a strong agency | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Building relationships with Northerners and federal government partners to promote a strategic approach to northern development | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Establish the Northern Project Management Office (NPMO) | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Management Priorities | Type* | Links to Strategic Outcome** | Description |
---|---|---|---|
Excellent internal management | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Excellent human resources management | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Performance measurement | New | SO1 | Why is this a priority?
Plans for meeting the priority?
|
Although the North has great economic potential, there are challenges to realizing northern economic development opportunities. The territories are far from markets and their physical infrastructure is underdeveloped. Existing resource knowledge and the tools for investment and management decisions are relatively limited when compared with southern jurisdictions. Northern organizations, businesses and workers face capacity challenges that hinder their ability to fully participate in, and benefit from, economic development. The economy is mainly concentrated in the mining and the oil and gas sectors. Volatile commodity prices and the global economy can significantly affect non-renewable resource development. It is important for the North to diversify and foster growth in other economic sectors such as tourism, small businesses and cultural industries. Strong, ongoing federal investments in building infrastructure, knowledge and capacity are essential if the territories are to be able to continue their emergence as an area of dynamic economic activity.
CanNor's operating environment is shaped by unique demographic and geographic challenges. Aboriginal populations are young and increasing twice as fast as the Canadian population overall. With higher unemployment rates than other Canadians, this is an ideal time to be focusing on economic development opportunities, skills and capacity building, and job creation in the territories. Innovative programs and services will need to be developed to meet the unique and specific needs of Northerners and Aboriginal people.
Approximately 100,000 Northerners live in the three territories; many are in the capitals with the rest spread out in small, often remote, communities. More than 40% of Northerners are under 25 years old, compared with 30% in the rest of Canada. More than half of Northerners are Aboriginal, with strong ancestral ties to the land; each territory, however, has a distinct distribution of Aboriginal and non-Aboriginal residents. Each territory is also unique in terms of geography, natural resources potential and governance structure.
A snapshot of each territory provides further understanding of the Agency's operating environment.
In 2010–2011, CanNor will develop a comprehensive corporate risk profile as part of its risk management system to help strengthen the decision-making process within the Agency and inform the focus of control mechanisms, such as the internal audit and program evaluation functions.
In the short term though, creating an agency while simultaneously implementing its mandate and effectively delivering on programs in place is very challenging and involves some risks.
First, setting up the headquarters in Iqaluit is not without risk. The headquarters offices need to be fully operational as soon as possible. However, there is currently not enough office space to accommodate the organization nor is there sufficient available housing for staff coming from other regions of the country. CanNor officials are working closely with Public Works and Government Services Canada to ensure that new office and housing accommodations are built as soon as possible. In the interim, employees are working out of INAC offices. The target is to move into a permanent location by the end of 2010–2011. Transportation and construction challenges could push the date back. To mitigate this risk in the short term, agency functions will be transferred to Iqaluit as staff and office space become available.
A second challenge while the Agency is being established will be ensuring that program funding is spent effectively to create the greatest benefits for the people, communities and businesses in the North. This challenge will include reviewing the appropriateness of key components of program design in a specifically northern context. This review will be done in consultation with partners and stakeholders and focus on evidence-based policy development as to what is needed and “what works” in meeting such needs. Program design will also address evidence with respect to potential risk areas involved and developing risk-mitigation responses. In parallel, as part of the operational implementation of programs, risks will be critically assessed and addressed at the individual project proposal stage. Program implementation will also proceed in the context of fostering strong ongoing working relationships with partners and stakeholders, and through developing a robust, timely performance measurement system focused on results-driven accountability.
Third will be CanNor's ability to attract and retain qualified staff. The Agency was created to deliver economic programs and services in the three territories. Given that the mandate is completely focused on the North, it is essential to fill as many positions as possible with Northerners and comply with employment requirements included in land claims agreements. As the majority of positions will eventually be in the territorial capitals, it will be challenging to attract and retain qualified staff for two reasons. First, one of the biggest challenges facing current employers in the North is recruitment. Territorial governments and other federal departments are all competing for the same limited qualified labour force. The second challenge is to attract people from other regions of the country to relocate to the territories when positions cannot be filled locally. To respond to these challenges, CanNor will develop innovative human resources strategies that:
A fourth risk that has been identified for the reporting period is meeting stakeholder expectations. Although it is expected that existing programs will be delivered effectively and in a timely manner, the Agency's ability to modify and enhance those programs, to develop new program proposals and to potentially take on additional responsibilities will depend on its ability to build internal capacity and the availability of human and financial resources.
For example, expectations are high that the new Northern Project Management Office (NPMO) will be able to significantly improve the effectiveness of the regulatory system in the North immediately on opening its doors. The NPMO will benefit from the experience of and lessons learned from Natural Resources Canada's Major Project Management Office, which provides a similar function for major natural resources projects in the provinces. The NPMO will also build on the advice arising from regulatory improvement initiatives. CanNor will manage expectations by ensuring ongoing open dialogue with stakeholders, strong collaboration between federal departments and agencies, and clarification and differentiation of CanNor's role from the role of Indian and Northern Affairs Canada.
The logistics of operating in the North while maintaining a presence in Ottawa to promote northern economic issues within the federal family will also be challenging.
For 2010–2011, CanNor plans to spend $61 million to meet the expected results of its program activities and contribute to its strategic outcome.
The figure below illustrates CanNor's spending trend from 2009–2010 to 2012–2013. Because CanNor was created in 2009–2010, no historical spending data exists for the Agency. Spending allocated from Canada's Economic Action Plan (CEAP) is reflected in the total spending but also shown separately.
As part of its overall expenditure profile, CanNor is responsible for the delivery of three federal funding initiatives in the territories under Canada's Economic Action Plan:
Strategic Investments in Northern Economic Development (SINED), which was renewed for five years as part of Canada's Economic Action Plan, is a suite of contribution programs for projects across the North. Investment decisions are guided by five-year territorial investment plans, which are developed through engagement with northern stakeholders and territorial governments and approved by the Minister of Indian Affairs and Northern Development. The suite of programs was renewed as part of Canada's Economic Action Plan at $90 million over five years, split equally among the three territories, from 2009–2010 to 2013–2014.
To ensure maximum value for money, an evaluation focusing on progress to date in achieving concrete impacts under SINED will be undertaken, along with an assessment of the future potential for progress and the time requirements involved. As part of this, the evaluation will proceed based on an assessment of the progress and experience of other countries with territories bordering on the North in addressing the developmental problems involved.
Expected Result | Key Performance Indicators |
---|---|
Increase uptake of economic opportunities in existing, expanding and emerging sectors |
|
Recreational Infrastructure Canada (RInC) is a two-year national infrastructure funding program, ending on March 31, 2011, that supports the rehabilitation and repair of recreational infrastructure. Announced as part of Canada's Economic Action Plan, RInC provides $567,000 in funding specifically for the three territories. Some projects in the territories are also being funded under the $325 million set aside to be distributed according to the merit of applications received from across Canada.
Expected Result | Key Performance Indicators |
---|---|
Improved recreational infrastructure in northern communities |
|
The Community Adjustment Fund (CAF) is a new two-year program announced in Canada's Economic Action Plan, ending on March 31, 2011. It is designed to provide economic stimulus to create employment opportunities and to address transitional and adjustment challenges in restructuring communities. It provides $32.8 million in funding for the territories.
Expected Result | Key Performance Indicators |
---|---|
Improved economic conditions in communities |
|
Vote # or Statutory Item (S) | Truncated Vote or Statutory Wording | 2009–2010 Main Estimates |
2010–2011 Main Estimates |
---|---|---|---|
37 | Operating expenditures | 13,689 | 13,679 |
39 | Contributions | 21,054 | 45,812 |
(S) | Contributions to employee benefit plans | 1,383 | 1,383 |
(S) | Community Adjustment Fund | 15,575 | 0 |
Total | 51,702 | 60,875 |
CanNor has one strategic outcome:
developed and diversified territorial economies that support prosperity for all Northerners
This strategic outcome reflects CanNor's important role in encouraging investment, innovation and diversification of the territorial economies.
CanNor is developing its Performance Measurement Framework as part of its Management, Resources and Results Structure and identifying the performance indicators and targets for each program activity. This exercise is extremely important as it will give CanNor a way to measure and communicate its performance results. Preliminary expected results are provided for each program activity to indicate what the Agency expects to achieve in the pursuit of its mandate with its allocated resources.
Expected Results |
---|
|
Human Resources (FTEs) and Planned Spending ($ thousands) | |||||
---|---|---|---|---|---|
2010–2011 | 2011–2012 | 2012–2013 | |||
FTEs | Planned Spending | FTEs | Planned Spending | FTEs | Planned Spending |
14 | 6,156 | 14 | 6,156 | 14 | 6,156 |
Through this program activity, CanNor will support the growth and expansion of northern businesses, including small and medium-sized enterprises, through training, advisory services, and grants and contributions. The program activity's objective is the encouragement of a competitive, diverse northern business sector with a strengthened capacity for innovation. CanNor's flagship program under this program activity is the Strategic Investments in Northern Economic Development (SINED). This program contributes funding, as well as other forms of support to the development of proposals that aim to strengthen economic drivers, diversify the economy, increase the participation of Northerners in the marketplace and improve the co-ordination of federal programs. The program works with the territorial governments, Aboriginal organizations and the not-for-profit sector to promote economic development in the North.
CanNor will implement this program activity through the following sub-activities:
To achieve the expected results for this program activity, the Agency plans to undertake the following activities:
CanNor will contribute to ensuring a stronger, more dynamic economy for northern families and businesses. It will ensure that economic opportunities generated by northern projects, including spin-off projects, are available to Aboriginal people. Directly empowering northern workers and businesses to take advantage of the resources and opportunities available across the territories will help Northerners prosper. All Canadians will benefit from the increased independence and diversification of the expanding territorial economies. By fostering sustainable, collaborative relationships with all stakeholders, CanNor supports the region's growing economy and helps the North fulfil its tremendous potential — an undertaking that serves the interests of Canada and all its citizens.
Expected Results |
---|
|
Human Resources (FTEs) and Planned Spending ($ thousands) | |||||
---|---|---|---|---|---|
2010–2011 | 2011–2012 | 2012–2013 | |||
FTEs | Planned Spending | FTEs | Planned Spending | FTEs | Planned Spending |
29 | 47,495 | 29 | 30,984 | 29 | 30,984 |
Through this program activity, CanNor will support:
The program activity's objective is the establishment of economically sustainable northern communities with a higher quality of life for residents. It will support economic development and diversification initiatives that help communities sustain their economies and adjust to changing and challenging economic circumstances.
As part of this program activity, CanNor will also support the delivery of Human Resources and Skills Development Canada (HRSDC) skills training programs in the North. This will include partnerships and projects under HRSDC-administered funds such as the Aboriginal Skills and Training Strategic Investment Fund and the Aboriginal Skills and Employment Partnerships program. Initiatives will also include research and analysis of skills-related gaps and opportunities.
CanNor will implement this program activity through the following sub-activities:
To achieve the expected results for this program activity, CanNor plans to undertake the following activities:
This program activity contributes to the development of strong and economically vibrant communities that, in turn, contribute to more balanced, diversified growth conditions for Canada as a whole. Through CanNor's investments, communities have more economic opportunities and increased capacity to respond to challenges. To maximize leverage, CanNor is developing the capacity to work with territorial governments, Aboriginal organizations and community leaders on integrating, as a “single window,” all federal programming and horizontal initiatives in the North.
Expected Results |
---|
|
Human Resources (FTEs) and Planned Spending ($ thousands) | |||||
---|---|---|---|---|---|
2010–2011 | 2011–2012 | 2012–2013 | |||
FTEs | Planned Spending | FTEs | Planned Spending | FTEs | Planned Spending |
31 | 5,473 | 31 | 5,473 | 31 | 5,473 |
Through this program activity, CanNor will support research and analysis to provide evidence-based programming and policy choices, the promotion of northern interests both inside and outside the federal government, the development of horizontal strategies, initiatives and projects to address economic development challenges in the North, the co-ordination of federal responsibilities throughout the regulatory cycle of resource development projects, and close collaboration with key players to improve northern economic development.
This program activity ensures that the Agency has the information and understanding needed to provide a balanced, regionally sensitive approach that addresses northern priorities, maximizes the Agency's effectiveness, and supports the development and implementation of CanNor strategic directions and priorities.
To achieve the expected results for this program activity, the Agency plans to undertake the following activities:
Through this program activity, CanNor ensures that key federal players can better align their economic development activities in the North and become better aware of northern issues. CanNor also ensures that Northerners are able to access and participate in federal programs through a single window. As a result, the North — and Northerners — will be more likely to benefit from federal and joint federal–territorial policies and programs that are relevant to the region's economic opportunities and challenges. The resulting stronger regional economy will benefit all of Canada.
Human Resources (FTEs) and Planned Spending ($ thousands) | |||||
---|---|---|---|---|---|
2010–2011 | 2011–2012 | 2012–2013 | |||
FTEs | Planned Spending | FTEs | Planned Spending | FTEs | Planned Spending |
41 | 1,751 | 41 | 1,751 | 41 | 1,751 |
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; ministerial support services; legal services; human resources management services; financial management services; information management services; information technology services; real property services; materiel services; acquisition services; travel; and other administrative services.
CanNor is a new organization and much of the focus in its first 18 months in operation will be to further develop its internal services capacity to ensure that CanNor effectively and efficiently delivers on its mandate. To the largest extent possible, the Agency will procure its corporate services rather than developing the capacity in-house. Proper planning and execution of internal services will facilitate the standing up of the organization and its transition to a fully operating agency.
CanNor will continue to develop internal policies, strategies and plans to ensure compliance with applicable legislation and government policies in areas such as human resources, procurement, occupational health and safety, diversity, official languages, and audit and evaluation.
All electronic supplementary information tables found in the 2010–2011 Report on Plans and Priorities can be found on the Treasury Board of Canada Secretariat's website:
As CanNor establishes its offices, you can direct general enquiries by e-mail.