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Minister’s Message

As Canada’s economy shows continued signs of growth following the global recession, the Harper government has a clear vision for Canada. We remain focused on creating jobs and economic growth in all regions of Canada. We remain committed to fighting protectionism, the number one impediment to global economic recovery. And we remain dedicated to supporting science, technology and innovation to improve the quality of life of Canadians.

In the coming year, Industry Canada and its Portfolio partners will seize the opportunities stemming from the evolving global economy. We will set the conditions for industrial success by improving policies we put in place, making strategic investments, and supporting business-focused programs and services. We are working to remove impediments to competition and to create the best climate for international investment. Industry Canada will lead efforts to develop major policy initiatives in support of Canada’s digital economy and to shape a whole-of-government strategy for federal tourism activities. The Department will also improve the cost-effectiveness and efficiency of its own operations and will work with recovering industries and sectors to help ensure a solid and prosperous future.

And, as always, I will work with my colleagues, the private sector and other governments to create the fundamentals for a strong and competitive economy.

It is my pleasure to present this year’s Report on Plans and Priorities for Industry Canada and its Portfolio partners.

 

 

 

Christian Paradis
Minister of Industry and Minister of State (Agriculture)

 

Section 1: Departmental Overview

1.1 Raison d’être and responsibilities

Mission

Industry Canada’s mission is to foster a growing, competitive, knowledge-based Canadian economy.

The Department works with Canadians throughout the economy, and in all parts of the country, to improve conditions for investment, improve Canada’s innovation performance, increase Canada’s share of global trade and build an efficient and competitive marketplace.

Mandate

Industry Canada’s mandate is to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians.

The many and varied activities Industry Canada carries out to deliver on its mandate are organized around three interdependent and mutually reinforcing strategic outcomes. Each outcome is linked to a separate key strategy, as outlined below. The key strategies are shown the figure below.

Graph of the The Canadian Marketplace

Long Description

3 color logo The Canadian marketplace is efficient and competitive

Advancing the marketplace

Industry Canada fosters competitiveness by developing and administering economic framework policies that promote competition and innovation; support investment and entrepreneurial activity; and instill consumer, investor and business confidence.

3 color logo Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy

Fostering the knowledge-based economy

Industry Canada invests in science and technology to generate knowledge and equip Canadians with the skills and training they need to compete and prosper in the global knowledge-based economy. These investments help ensure that discoveries and breakthroughs happen here in Canada and that Canadians can realize the social and economic benefits.

3 color logo Canadian businesses and communities are competitive

Supporting business

Industry Canada encourages business innovation and productivity because businesses are the organizations that generate jobs and wealth creation. Promoting economic development in communities encourages the development of skills, ideas and opportunities across the country.

Under its founding legislation, the Department of Industry Act, Industry Canada is mandated not only to foster a growing, competitive, knowledge-based Canadian economy but also to promote sustainable development.

Industry Canada works on a broad range of matters related to industry and technology, trade and commerce, science, consumer affairs, corporations and corporate securities, competition, trade measurement, bankruptcy and insolvency, intellectual property, investment, small business, and tourism. Industry Canada is the Government of Canada’s centre of microeconomic policy expertise. The Department is composed of many organizational entities that have distinct mandates and diverse program activities, which are highly dependent on partnerships.

1.2 Contribution to the Federal Sustainable Development Strategy

Industry Canada is a participant in the Federal Sustainable Development Strategy (FSDS). The FSDS, with its inclusion of environmental sustainability and strategic environmental assessment as an integral part of government decision-making processes, represents a major step forward for the Government of Canada. Industry Canada’s contributions to the FSDS are presented in sections 2, 3 and 4 of this report.

Complete details on Industry Canada’s sustainable development activities are available on the Environment and Sustainability subsite of the departmental website. Industry Canada’s Greening Government Operations table, one of the supplementary information tables itemized in Section 3 of this report, is available on the Treasury Board of Canada Secretariat website. For complete details on the FSDS, please see the Environment Canada website.

The following icons, which correspond to the four environmental sustainability themes of the FSDS, will be used throughout this report to identify the departmental activities that support the FSDS.

Theme I: Theme I: Addressing Climate Change and Air QualityTheme I: Addressing Climate Change and Air Quality

Theme II: Maintaining Water Quality and AvailabilityTheme II: Maintaining Water Quality and Availability

Theme III: Protecting NatureTheme III: Protecting Nature

Theme IV: Shrinking the Environmental Footprint - Beginning with GovernmentTheme IV: Shrinking the Environmental Footprint – Beginning with Government

1.3 Program activity architecture

This Report on Plans and Priorities is aligned with Industry Canada’s Management, Resources and Results Structure (MRRS). The MRRS provides a standard basis for reporting to parliamentarians and Canadians on the alignment of resources, program activities and results.

Industry Canada’s Program Activity Architecture (PAA) is an inventory of all of its programs. The programs are depicted in a logical and hierarchical relationship to each other and to the strategic outcome to which they contribute. The PAA also provides a framework through which to clearly link financial and non-financial resources to each program activity.

2010–11 and 2011–12 PAA crosswalk
Over the past year, Industry Canada has made changes to its PAA to ensure that it remains a complete and accurate inventory of Industry Canada programs.

3 color logo Strategic Outcomes

Industry Canada’s strategic outcomes are long-term, enduring benefits to the lives of Canadians; reflect the Department’s mandate and vision; and are linked to Government of Canada priorities and intended results. Two of Industry Canada’s strategic outcomes have been updated in 2011–12: The strategic outcome “Science and technology, knowledge, and innovation are effective drivers of a strong Canadian economy” has been changed to “Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy” and the strategic outcome “Competitive businesses are drivers of sustainable wealth creation” has been changed to “Canadian businesses and communities are competitive.” These changes were made to improve both measurability of the strategic outcomes and compliance with the MRRS instructions.

3 color logo Removal of the Security and Prosperity Partnership program activity

The Security and Prosperity Partnership of North America — Canadian Secretariat program activity has been removed because its funding expires on March 31, 2011, and will not be renewed.

3 color logo Transfer of programs to FedDev Ontario

A number of programs that were previously administered by Industry Canada have been transferred to FedDev Ontario. These include the Eastern Ontario Development Program, the Canada–Ontario Municipal Rural Infrastructure Program, the Ontario Municipal Rural Infrastructure Top-Up Program, the Ontario Potable Water Program, the Brantford Greenwich–Mohawk Remediation Project, the Canada Strategic Infrastructure Program and the Building Canada Program.

3 color logo Streamlining of the structure

The structure of the PAA has been significantly streamlined in an effort to ensure its program activities and program subactivities appropriately reflect the programs and not the activities performed as part of a program. A result of this streamlining is that the 2011–12 PAA no longer contains any program sub-subactivities, thereby reducing the amount of overlap between the outcomes at different levels of the PAA. It also tells a more concise and clear performance story and reduces the repetition of performance data contained in the Performance Measurement Framework.

3 color logo Changes to program titles and descriptions

A number of programs were renamed and a number of program descriptions modified to reflect program changes or improve compliance with the MRRS instructions.

Industry Canada’s 2011–12 Program Activity Architecture

Strategic Outcome: The Canadian marketplace is efficient and competitive

Program Activities: Marketplace Frameworks and Regulations

Subactivities
  • Measurement Canada
  • Superintendent of Bankruptcy
  • Corporations Canada
  • Investment Review
  • Intellectual Property
  • Internal Trade Secretariat

Program Activities: Spectrum, Telecommunications and the Online Economy

Subactivities
  • Spectrum Management and Telecommunications
  • Electronic Commerce

Program Activities: Consumer Affairs

Program Activities: Competition Law Enforcement

Strategic Outcome: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy

Theme I: Addressing Climate Change and Air QualityProgram Activities: Science, Technology and Innovation Capacity

Subactivities
  • Government Science and Technology Policy Agenda
  • Science and Technology Partnerships

Information and Communication Technologies Research and Innovation

Theme I: Addressing Climate Change and Air QualityProgram Activities: Research and Development Financing

Subactivities
  • Automotive Innovation
  • Aerospace Innovation
  • Strategic Aerospace and Defence Initiative
  • Technology Partnerships Canada

Strategic Outcome: Canadian businesses and communities are competitive

Program Activities: Small Business Research, Advocacy and Services

Subactivities
  • Canada Small Business Financing
  • Canada Business Network
  • Small Business Internship
  • Small Business Growth and Prosperity

Program Activities: Industrial Competitiveness and Capacity

Subactivities
  • Industry-Specific Policy and Analysis
  • Shipbuilding Capacity
  • Industrial and Regional Benefits

Program Activities: Community Economic Development

Subactivities
  • Community Futures
  • Northern Ontario Development
  • Computers for Schools
  • Community Access
  • Linguistic Duality and Official Languages

Theme I: Addressing Climate Change and Air QualityTheme I: Addressing Climate Change and Air QualityInternal Services

Legend:

Theme I: Addressing Climate Change and Air QualityTheme I: Theme I: Addressing Climate Change and Air Quality

Theme I: Addressing Climate Change and Air QualityTheme IV: Shrinking the Environmental Footprint – Beginning with Government

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1.4 Planning summary

Industry Canada’s financial and human resources

The following two tables present Industry Canada’s financial resources and human resources, expressed as full-time equivalents (FTE), for the next three fiscal years.

Financial Resources ($ millions)*
2011–12 2012–13 2013–14
1,407.5** 1,425.7 1,147.1***

* Minor differences are due to rounding.

** Planned spending in 2011–12 does not include funding for the extension of the Knowledge Infrastructure Program to October 31, 2011, under Canada’s Economic Action Plan.

*** Existing funding for the Automotive Innovation Fund, Structured Financing Facility, and previous grant agreements with Genome Canada and the Canada Foundation for Innovation is scheduled to end in 2012–13. In addition, investments in innovation under the existing Technology Partnerships Canada program and the Strategic Aerospace and Defence Initiative will decrease in 2013–14. This reduction in funding does not have a corresponding effect on FTEs.

Human Resources (FTEs)*
2011–12** 2012–13** 2013–14
5,649 5,622 5,633>

* Work is currently under way to assess the impact of the cost-containment measures announced in Budget 2010 and to develop strategies to ensure that expenditure management priorities are implemented while maintaining the quality of departmental programs and services.

** As noted in the 2009–10 Departmental Performance Report, Industry Canada’s PAA underwent changes. The methodology used to assign FTEs to specific program activities also changed to ensure FTEs are accounted for in a consistent manner. As a result, the planned values for FTEs included in the 2010–11 Report on Plans and Priorities vary from those included in this report.

Summary by strategic outcome


Strategic Outcome 1: The Canadian marketplace is efficient and competitive
Performance Indicators Targets
  • Canada’s ranking for Integrated Product Market Regulation (OECD indicator of a country’s economy-wide regulatory and market environments)
  • 4th
  • Canada’s ranking for “starting a business” (World Bank Group’s Ease of Doing Business index)
  • 3rd
  • Canada’s ranking for barriers to competition (OECD assessment of accessibility to the Canadian market)
  • 26th
Program Activity Forecast Spending
2010–11
Planned Spending
($ millions)*
Alignment to Government of Canada Outcomes
2011–12 2012–13 2013–14
Marketplace Frameworks and Regulations 68.0 58.3 56.3 62.0 Economic Affairs: A Fair and Secure Marketplace
Spectrum,Telecommunications and the Online Economy 90.8 87.7 86.3 86.2 Economic Affairs: A Fair and Secure Marketplace
Consumer Affairs 4.7 4.6 4.6 4.6 Economic Affairs: A Fair and Secure Marketplace
Competition Law Enforcement 46.9 47.7 48.8 48.8 Economic Affairs: A Fair and Secure Marketplace
Total Planned Spending 198.3 196.0 201.7  

* Minor differences are due to rounding.

Strategic Outcome 2: Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy
Performance Indicators Targets
  • Canada’s rank in G7 in public-performed research and development as a percentage of GDP (Statistics Canada and the OECD)
  • 1st
  • Canada’s rank in G7 in business-performed research and development as a percentage of GDP (Statistics Canada and the OECD)
  • 6th
  • Canada’s labour productivity measured as real GDP per hour worked (Statistics Canada and the Centre for the Study of Living Standards)
  • $44.29
Program Activity Forecast Spending
2010–11
Planned Spending
($ millions)*
Alignment to Government of Canada Outcomes
2011–12 2012–13 2013–14
Science, Technology and Innovation Capacity1 1,309.4 265.7 326.4 200.8 Economic Affairs: An Innovative and Knowledge-based Economy
Information and Communication Technologies Research and Innovation 43.6 38.2 37.5 37.5 Economic Affairs: An Innovative and Knowledge-based Economy
Research and Development Financing2 358.6 431.9 462.6 323.3 Economic Affairs: An Innovative and Knowledge-based Economy
Total Planned Spending 735.8 826.4 561.6  

* Minor differences are due to rounding.

1. Forecast spending for Science, Technology and Innovation Capacity includes funding for Canada’s Economic Action Plan initiatives that will not be continuing in future years, such as the Knowledge Infrastructure Program.

2. Planned spending in 2011–12 for Research and Development Financing includes deferred funding from previous fiscal years to support investments in innovation made under the existing Technology Partnerships Canada program and the Strategic Aerospace and Defence Initiative. Funding to support the automotive sector in developing and building greener, more fuel-efficient vehicles has also been increased.

Strategic Outcome 3: Canadian businesses and communities are competitive
Performance Indicators Targets
  • Canada’s ranking for the “Small and medium-size enterprises are efficient by international standards” criterion (IMD International’s World Competitiveness Yearbook)
  • 17th
  • Canada’s ranking for the “Large corporations are efficient by international standards” criterion (IMD International’s World Competitiveness Yearbook)
  • 32nd
  • Ratio of small and medium-sized enterprises in rural versus urban areas (defined by census subdivisions)
  • 1:5.6
Program Activity Forecast Spending
2010–11
Planned Spending
($ millions)*
Alignment to Government of Canada Outcomes
2011–12 2012–13 2013–14
Small Business Research, Advocacy and Services 140.0 128.6 127.4 124.4 Economic Affairs: Strong Economic Growth
Industrial Competitiveness and Capacity1 89.6 47.1 56.1 51.1 Economic Affairs: Strong Economic Growth
Community Economic Development2 212.8 154.0 92.7 83.7 Economic Affairs: Strong Economic Growth
Security and Prosperity Partnership of North America — Canadian Secretariat3 2.2  
Total Planned Spending 329.8 276.2 259.2  

* Minor differences are due to rounding.

1. Forecast spending for Industrial Competitiveness and Capacity includes funding for Canada’s Economic Action Plan initiatives that will not be continuing in future years, such as the Marquee Tourism Events Program.

2. Forecast spending for Community Economic Development includes deferred funding from previous fiscal years for the Broadband Canada program, which aims to extend broadband coverage to as many unserved and underserved households as possible.

3. Effective 2011–12, the Security and Prosperity Partnership of North America — Canadian Secretariat program activity will no longer exist because its funding expires.

 

Program activity supporting all strategic outcomes
Program Activity Forecast Spending
2010–11
Planned Spending ($ millions)*
2011–12 2012–13 2013–14
Internal Services1 169.3 143.6 127.1 124.6

* Minor differences are due to rounding.

1. Forecast spending for Internal Services includes deferred funding from previous fiscal years and amounts pertaining to the reimbursement of maternity, parental and severance costs.

1.5 Contribution of priorities to strategic outcomes

Operational priorities

Operational Priority:
Ensure marketplace policies help promote competition and instill consumer and investor confidence
Type:1
Ongoing
Strategic Outcome:
The Canadian marketplace is efficient and competitive

Why this is a priority

  • Ensures that Canadian businesses can respond to the ever-changing demands and needs of the modern marketplace while ensuring continued consumer and investor confidence.
  • Policies that are responsive to consumer interests enable consumers to be effective marketplace participants and help stimulate economic growth.

Plans for meeting the priority

  • Pending the coming into force of the Fairness at the Pumps Act in 2010–11, seek approval of regulations establishing mandatory inspection frequencies of measuring devices in eight sectors.
  • Combat abuse of market dominance, domestic cartels and fraud in the digital economy through targeted enforcement action.
  • Modernize consumer protection through the development of e-commerce standards and increase public awareness of the risks of the online environment as well as the protections available to consumers in this environment.
  • Maximize the economic and social benefits that Canadians derive from the radio frequency spectrum through market auctioning of 700 MHz and 2500 MHz bands.

1In accordance with Treasury Board of Canada Secretariat guidance, types are defined as follows: “New” means newly committed to in fiscal year 2011–12; “Previously committed to” means committed to one or two fiscal years earlier, i.e., 2009–10 or 2010–11; and “Ongoing” means committed to at least three fiscal years earlier, i.e., 2008-09 or earlier.

Operational Priority:
Foster business innovation
Type:
Ongoing
Strategic Outcome:
Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy

Why this is a priority

  • In order to create high-quality, knowledge-intensive jobs with high wages, organizations need to be at the forefront of scientific development and technological achievement.
  • These organizations make our economy more competitive and productive.

Plans for meeting the priority

  • Foster business innovation and promote science and entrepreneurial culture, including responding to the Research and Development Review Panel.
  • Continue to provide support and enable world-class research and development (R&D) on innovative information and communication technologies that support the government in developing policies, regulations, standards and programs.
  • Delivery of the Strategic Aerospace and Defence Initiative to encourage R&D; enhance competitiveness; and foster collaboration among research institutes, universities, colleges and the private sector.

Operational Priority:
Invest in science and technology (S&T) to enhance the generation and commercialization of knowledge
Type:
Ongoing
Strategic Outcome:
Advancements in science and technology, knowledge, and innovation strengthen the Canadian economy

Why this is a priority

  • S&T capacity is expanding globally in a much more competitive environment.
  • To remain competitive and realize the economic and social benefits of S&T, Canada must be at the leading edge of S&T.

Plans for meeting the priority

  • Advance Canada’s knowledge, people and entrepreneurial advantage by ensuring the effectiveness of federal programs to support knowledge generation and its transfer and application in Canada.
  • Through the provision of science policy advice and policy frameworks, work with counterparts to fulfill commitments made in the science and technology strategy, Mobilizing Science and Technology to Canada’s Advantage – 2007.

Operational Priority:
Foster internationally competitive businesses and industries
Type:
Ongoing
Strategic Outcome:
Canadian businesses and communities are competitive

Why this is a priority

  • Internationally competitive businesses contribute to the creation of jobs and wealth and to a strong Canadian economy.

Plans for meeting the priority

  • Continue to assess and analyze the unique economic, business and investment issues faced by industries and develop comprehensive policy advice to ensure that Canadian firms can grow and compete in the globalized marketplace.
  • Develop value proposition for investment in Canadian sectors while focusing on reducing barriers to foreign investment.
  • Ensure that Canadian companies have opportunities to participate in, or move up, the global value chains associated with large multinationals that receive procurement contracts from the Government of Canada.
  • Through the provision of tourism policy advice and whole-of-government approach, Industry Canada will work with partners to fulfill commitments made under the Federal Tourism Strategy (FTS), should the government proceed with an FTS.

Operational Priority:
Promote business growth, entrepreneurship and community development
Type:
Ongoing
Strategic Outcome:
Canadian businesses and communities are competitive

Why this is a priority

  • By supporting the creation and growth of small businesses, Canada will benefit from a more dynamic economy and a higher standard of living.

Plans for meeting the priority

  • Contribute to the design and delivery of programs and services that help small businesses access financing, grow and succeed.
  • Obtain advice from the Advisory Committee on Small Business and Entrepreneurship on the most important issues facing small businesses in Canada, such as reducing the paperwork burden and improving business access to federal programs and information.
  • Continue to strengthen northern Ontario communities through the delivery of FedNor programs by fostering an environment that is conducive to economic growth, productivity and job creation.

Management priorities

Management Priority:
People management
Type:*
Ongoing
Strategic Outcome:
All strategic outcomes

Why this is a priority

  • Similar to the rest of the federal public service, Industry Canada faces major human resources (HR) pressures, such as competition for skilled workers in a highly mobile labour market, retention of staff, impending retirements and development of new hires.
  • Industry Canada must be in a position to recruit, develop and retain the talent needed to create and maintain a productive, sustainable, adaptable, competent and diverse workforce to be able to deliver on the Department’s strategic outcomes.
  • This management priority is considered a foundation piece and a core element of Industry Canada’s framework for sound stewardship and management.

Plans for meeting the priority

  • Industry Canada’s People Management Strategy for Renewal and Results, a three-year strategy with annual action plans, addresses priorities related to employee engagement and renewal, leadership development, HR service excellence and service improvement, and integrity and accountability.
  • The Year-3 Action Plan focuses on targeted recruitment, talent management strategies, succession planning, development of EX and EX feeder groups, improvement of efficiencies in HR processes, and implementation of action plans to address issues raised in the 2008 Public Service Employee Survey.

*In accordance with Treasury Board of Canada Secretariat guidance, types are defined as follows: "New" means newly committed to in fiscal year 2011–12; "Previously committed to" means committed to one or two fiscal years earlier, i.e., 2009–10 or 2010–11; and "Ongoing" means committed to at least three fiscal years earlier, i.e., 2008–09 or earlier.

Management Priority:
Financial management
Type:
Ongoing
Strategic Outcome:
All strategic outcomes

Why this is a priority

  • Financial management provides assurance on, as well as supports departmental managers in ensuring, the sound stewardship of public resources and compliance with legislation, regulations and policies.
  • This management priority is considered a foundation piece and a core element of Industry Canada’s framework for sound stewardship and management.

Plans for meeting the priority

  • Strengthen processes and quality of information to ensure investments in assets and acquired services are well targeted, appropriately resourced and managed strategically to support the business of the Department.
  • Ensure sound analysis and develop strategies for meeting governmental expenditure priorities.

Management Priority:
Internal audit
Type:
Ongoing
Strategic Outcome:
All strategic outcomes

Why this is a priority

  • Industry Canada has an effective internal audit function that is founded on rigorous planning, robust reporting and strong governance, including a fully operational, independent Departmental Audit Committee.
  • This management priority is considered a foundation piece and a core element of Industry Canada’s framework for sound stewardship and management.

Plans for meeting the priority

  • Support the internal audit function as it provides added assurance, independent from line management, on risk management, control and governance processes of current and newly introduced programs and initiatives.

Management Priority:
Management of business communication tools
Type:
New
Strategic Outcome:
All strategic outcomes

Why this is a priority

  • Updating Industry Canada’s business communication tools will allow the Department to better communicate its programs, key messages and achievements to various stakeholders.

Plans for meeting the priority

  • Improve internal and external service delivery through a comprehensive update of Industry Canada’s intranet and its web presence on the Internet.

Management Priority:
Asset and materiel management
Type:
New
Strategic Outcome:
All strategic outcomes

Why this is a priority

  • Addressing Industry Canada’s asset and materiel management processes will produce long-term strategic and operational benefits throughout the Department.

Plans for meeting the priority

  • Implement a comprehensive framework to provide adequate oversight of Industry Canada’s materiel resources.

1.6 Operating environment and risk analysis

Global context

Over the past year, Canada has recovered rapidly from the recession. Close to 400,000 jobs have been created since July 2009 — the strongest job growth in the G7 — and the economy has grown for five straight quarters. The unemployment rate has been declining, as economic growth and job creation are being buoyed by strong commodity prices, more sustained private sector demand, rising exports, increased business investment, and timely and strategic investments under Canada's Economic Action Plan. While Canada's medium-term growth prospects are healthy, there remains some uncertainty about the trajectory of the broader global economic recovery, which may lead to a moderation in Canada's growth outlook.

Rising commodity prices are supporting several resource-based industries, while the improved U.S. economic outlook is benefitting various export sectors. Private business investment is growing rapidly as firms take advantage of the strong dollar to import more productivity-enhancing machinery and equipment.

The Canadian economy faces several risks. The strong Canadian dollar and high household debt could constrain the growth of non-resource-related industries and private consumption, respectively. Global risks include weak domestic demand in most advanced economies, inflation in emerging economies, global trade imbalances and uncertainty in European sovereign debt markets. Risks related to global trade barriers and to government currency manipulation persist, despite progress by some countries in reducing investment restrictions and advancing trade negotiations.

Over the medium to long term, the Canadian economy will face pressures from an aging population and the changing global economic environment unless productivity improvements can make up for Canada's slowing labour force growth.

In addition, Canadian industries will be challenged to respond to intensifying global competition, the demand for new goods and services, and environmental and sustainability considerations. Industries will face pressure to expand their global reach, integrate into global supply chains and adopt cutting-edge new technologies.

Overall, Industry Canada is well positioned to continue supporting Canadian businesses and industries by helping them understand and exploit the changing global economic landscape; by promoting skills development and sector-specific knowledge growth; and by fostering business innovation, competitiveness and productivity.

Industry Canada risk context

Through the implementation of a tailored integrated risk management approach, Industry Canada has taken steps to proactively address some of the key risks that may impede the Department’s overall ability to deliver on its mandate. This approach meets the Department’s needs for sound risk management and allows it to monitor the mitigation strategies and action plans for its corporate risks. In 2011–12, Industry Canada will also continue to implement strong governance, oversight and risk management practices. The following table presents Industry Canada’s corporate risks and associated challenges and their alignment to departmental priorities. Highlights of program-specific risks and mitigation actions are presented in Section 2 of this report.

Corporate Risks and Challenges* Highlights of Alignment to Departmental Priorities**
Fully advancing a regulatory and policy framework that will ensure the continued evolution of telecommunications and wireless infrastructure This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; and investing in science and technology to enhance the generation and commercialization of knowledge.
Managing expectations and maintaining Industry Canada’s reputation among stakeholder groups, the public and the media This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; investing in science and technology to enhance the generation and commercialization of knowledge; fostering internationally competitive businesses and industries; and promoting business growth, entrepreneurship and community development.
Meeting the shifting and emerging priorities and demands of the recovering economy may affect Industry Canada’s ability to support program delivery and meet departmental and government priorities This aligns with Industry Canada’s operational priorities related to ensuring marketplace policies help promote competition and instill consumer and investor confidence; fostering business innovation; investing in science and technology to enhance the generation and commercialization of knowledge; fostering internationally competitive businesses and industries; and promoting business growth, entrepreneurship and community development.
Responding to the current global economic environment and its shifting economic drivers may affect Industry Canada’s ability to appropriately support key stakeholders in their investment and innovation capacity and their ability to leverage leading-edge research and S&T discoveries This aligns with Industry Canada’s operational priorities related to fostering business innovation and investing in science and technology to enhance entrepreneurship, community development, and the generation and commercialization of knowledge.

* The corporate risks are broad, high-level statements, as identified in Industry Canada’s Corporate Risk Profile, which link program risks to departmental priorities.

** Plans for meeting these priorities also involve the mitigation of risks associated with each challenge. Furthermore, all of Industry Canada’s plans for meeting its management priorities contribute to ensuring that sound management practices are observed, thereby supporting the mitigation of this risk.

Industry Canada will continue to update its Corporate Risk Profile as well as identify, monitor and mitigate corporate risks that may affect the Department’s ability to achieve its expected results and deliver its mandate.

Strategic review

Industry Canada underwent a strategic review in 2010–11. The strategic review process requires departments and agencies to review 100 percent of their programs with a view to better focusing programs and services, streamlining internal operations and transforming the way they do business, and achieving better results for Canadians. Through this process, organizations identify opportunities to redirect funding to other programs that meet the priorities of the government and Canadians. Results of the strategic review were unavailable at the time this report was produced; however, an overview of the results is included in Budget 2011. Industry Canada’s 2010–11 Departmental Performance Report will elaborate on the results of the strategic review.

1.7 Canada’s Economic Action Plan

In Budget 2009: Canada’s Economic Action Plan, the Government of Canada announced a set of initiatives aimed at providing a quick recovery from the economic downturn and ensuring long-term economic growth and prosperity for Canadian businesses and individuals. These initiatives were to be implemented over a two-year time frame ending on March 31, 2011. This resulted in a temporary increase in Industry Canada’s spending for 2009–10 and 2010–11.

On December 2, 2010, the Government of Canada announced that the deadline for completing infrastructure projects under Canada’s Economic Action Plan would be extended from March 31, 2011, to October 31, 2011. The Knowledge Infrastructure Program is the only Industry Canada program affected by this announcement.

1.8 Expenditure profile

Industry Canada’s total planned spending for 2011–12 is $1.41 billion. The majority of planned spending is directed at Industry Canada’s three strategic outcomes, with a cost-effective 10 percent being allocated to Internal Services.

Industry Canada will continue to implement strategies to ensure efficient use of its operating budget to better deliver benefits to Canadians.

Breakdown of 2011–12 Planned Spending by Strategic Outcome ($ millions)

Breakdown of 2011–12 Planned Spending by Strategic Outcome graphic

Long Description

A focus on efficient, high-performing programs will allow Industry Canada to continue to effectively deliver its mandate, with a reduced operating budget, in the coming years and adapt to evolving government priorities. More than ever, the results of audits, evaluations and strategic reviews will be critical to planning, setting priorities and allocating resources.

Spending Trend ($ millions)

The figure below illustrates Industry Canada’s spending trend from 2007–08 to 2013–14.

Spending Trend ($ millions)

Spending Trend ($ millions)

Long Description

The increase in spending in 2009–10 and 2010–11 was primarily related to Canada’s Economic Action Plan. The decrease in spending in 2013–14 is mainly related to the Automotive Innovation Fund, which is scheduled to end in 2012–13, as well as decreases in funding to the Bombardier CSeries program, the Strategic Aerospace and Defence Initiative and the Canada Foundation for Innovation.

1.9 Estimates by vote

For information on Industry Canada’s votes and statuatory expenditures, please see the 2011–12 Main Estimates on the Treasury Board of Canada Secretariat website.