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Industry Canada Business Plan 2009–2010

Appendix B:

Reporting on 2008–2009 business objectives

This section provides a summary of progress made against Industry Canada's 2008–2009 business objectives, as set out in the Industry Canada Business Plan 2008–2009.

Strategy 1: Advancing the marketplace through economic framework policies
2008–2009 business objectives Status

Responding to the Competition Policy Review Panel

Since the Competition Policy Review Panel delivered its report, Compete to Win, in June 2008, Industry Canada has created a dedicated response team and launched an interdepartmental policy development process. In the November 2008 Speech from the Throne, the Government of Canada committed to proceed with legislation to modernize Canada's competition and investment laws, and to implement many of the panel's recommendations. Industry Canada will lead the work to fulfill this commitment. The outcome of this initiative will be to expand opportunities for Canadian firms, safeguard national security, protect consumers and enhance Canada's competitive environment.

Managing telecommunications for the 21st century

In July 2006, Industry Canada made 29 satellite licences available to Canadian satellite operators. In June 2008, the conditions of licence were finalized, and approvals were issued for 11 licences. With the conclusion of the selection process, Ciel Satellite Group and Telesat Canada, the two Canadian operators, can now grow their businesses substantially in the Canadian and North American markets. In permitting the development of new Canadian satellites, Industry Canada helped foster a competitive environment that will increase and improve broadcasting and telecommunications services to Canadian entrepreneurs and consumers.

Industry Canada worked closely with public safety organizations to establish new technical requirements to ensure that police, fire and ambulance communications systems can talk to each other on new, dedicated frequencies.

Modernizing Canada's intellectual property regime

The Patent Prosecution Highway Pilot Program of the Canadian Intellectual Property Office and the United States Patent and Trademark Office was launched on January 28, 2008. Under the program, patent applicants may, when the intellectual property office in one country accepts their claims, request an accelerated examination in the other. The objective of the pilot program is to gauge the interest of applicants and to assess the anticipated benefits to each office, with the goal of significantly accelerating examination of patent applications and improving patent quality.

Enhancing and promoting consumer interest

The Office of Consumer Affairs is actively engaged in several projects to support the harmonization of federal, provincial and territorial consumer policies, and is collaborating with international partners such as the Organisation for Economic Co-operation and Development and the International Organization for Standardization to advance the development of international consumer policy and consumer protection models. It is also producing strategic consumer research and information products designed to meet consumer needs in the modern marketplace.

Improving the insolvency system

The official and final versions of amended regulations outlining the administrative details of the Wage Earner Protection Program Act as well as the Bankruptcy and Insolvency General Rules were published in the July 23, 2008, edition of the Canada Gazette, Part II. The amendments are intended to encourage the restructuring of viable businesses, improve protection for workers in bankruptcy, make the insolvency system fairer and reduce the potential for abuse.

Enhancing Canadian measurement standards

Measurement Canada consulted with more than 1200 stakeholders by email and contacted 50 companies and associations directly as part of the legislative review of the Weights and Measures Act and Electricity and Gas Inspection Act. The review identified several areas to be addressed as part of the modernization of the status to improve measurement accuracy in the marketplace and reduce consumer and business risk of financial loss due to inaccurate measurement.

Preparing for the Vancouver 2010 Olympic and Paralympic Winter Games

Industry Canada made recommendations resulting in Bill C-47, the Olympic and Paralympics Marks Act, which provides special, limited-time intellectual property protection for Olympic and Paralympic words and symbols and prohibits “ambush marketing” that seeks to capitalize on the goodwill of the Olympic movement by creating a false, unauthorized association with the Games without making the financial investment required to secure official sponsorship rights. The Act received royal assent on June 22, 2007.

Supporting privacy and the online economy

Consultations were held on the implementation of the Government Response to the Parliamentary Report on the review of the Personal Information Protection and Electronic Documents Act (PIPEDA). Views and advice provided by stakeholders informed the development of legislative options for strengthening PIPEDA and improving its effectiveness.

The Deputy Minister headed the Canadian delegation attending the Organisation for Economic Co-operation and Development (OECD) Ministerial Conference, at which the 30 OECD member countries and 9 non-OECD countries adopted the Seoul Declaration for the Future of the Internet Economy, which outlines principles to guide future development of the Internet.

Protecting and promoting competitive markets

Through the efforts of the Competition Bureau, Industry Canada increased compliance with the various laws it administers through enforcement and advocacy, and fraud prevention and awareness. Enforcement capacity was strengthened in regional offices by giving them responsibility for responding to local cartels, with a strong emphasis on bid-rigging.

The Community of Federal Regulators recognized the Competition Bureau for its innovative work on Project False Hope — Combatting Cancer Fraud, which is a dedicated Internet surveillance and enforcement program aimed at combating misleading and deceptive advertising found on the Internet.

Holding the Advanced Wireless Services Spectrum Auction

The Auction for Spectrum Licences for Advanced Wireless Services and Other Spectrum in the 2 GHz Range took eight weeks and comprised 331 rounds of bidding, coming to a successful end on July 21, 2008. Of the 292 licences available, 282 were conditionally assigned to 15 companies. The auction generated almost $4.3 billion in revenues for the Government of Canada and far exceeded all expectations.

Of the 105 MHz of spectrum made available in this auction, 40 MHz was set aside exclusively for new entrants, to foster more competition in the wireless market.

Industry Canada also successfully negotiated three new frequency-sharing agreements with the United States that will enable the reliable operation of advanced wireless services along the Canada–U.S. border.

Strategy 2: Fostering the knowledge-based economy through enhanced research and innovation, training and skills
2008–2009 business objectives Status

Implementing the Science and Technology Strategy

The business-led Networks of Centres of Excellence program was launched to fund large-scale collaborative networks that increase private sector investments in research in Canada, support the training of skilled researchers, and optimize the timeline between research and commercialization. Ten applicants were invited to submit full proposals; the winners are expected to be announced in early 2009.

Eleven new Centres of Excellence for Commercialization and Research were selected. These will be world-class centres to advance research and facilitate commercialization of technologies, products and services.

ACCELERATE Canada, a not-for-profit consortium, was chosen to run the Industrial R&D Internship program to place 1200 graduate students and post-doctoral graduates with businesses across Canada over the next two years.

The new Science, Technology and Innovation Council provided policy advice to the Government of Canada on measures to improve business research and development, refining the four research and development priorities in the Science and Technology Strategy, improving the benefit to Canada from international science and technology collaborations, and advice on the design of the Canada Excellence Research Chairs program and the Vanier Canada Graduate Scholarships program. The Council also laid the groundwork for its first report, which will be released publicly in 2009 and will measure Canada's science and technology performance against international standards of excellence.

Overall, important progress has been made in implementing all 36 commitments in the Science and Technology Strategy. The inter-departmental Assistant Deputy Ministers' Committee on Science and Technology is coordinating the implementation, which involves 22 departments and agencies in collaboration with partners and stakeholders. Significant progress has been made to create value for Canadians and lay the foundation for benefits from science and technology in the future.

Expanding the Canada Graduate Scholarships program

The Minister announced the implementation of the Vanier Canada Graduate Scholarships program on September 2, 2008. These scholarships were designed to attract world-class doctoral students to Canada and retain Canadian students who might otherwise study elsewhere. The program will support up to 500 doctoral students annually and provide tax-free funding of $50 000 per year for three years. Funding for the program will total $25 million per year in 2011–2012 and thereafter.

The Minister also announced the implementation of the Canada Excellence Research Chairs program on September 2, 2008. The program provides $1.4 million per year for up to seven years to 20 research chairs in the Science and Technology Strategy's priority areas (environment, natural resources and energy, health and related life sciences, and information and communications technology) to support breakthrough research by global leaders and build critical mass in these areas. The program aims to attract the world's best researchers to Canada's universities. Chairs are competitively awarded to institutions, with no pre-determined allocation, except for the priority areas, with a minimum of three to be awarded in each area.

Enhancing global academic research networks

Industry Canada continued to support the objectives of CANARIE Inc. to expand and upgrade the advanced research network and to develop, demonstrate and implement next-generation technologies. This support helped pave the way for the launch of CANARIE's Infrastructure Extensions Program and Network-Enabled Platforms Program.

Pursuing communications research initiatives

In partnership with DSO National Laboratories of Singapore, Communications Research Centre Canada (CRC) demonstrated the world's smallest software-defined radio that is compliant with the Software Communications Architecture specification. The small size makes it possible to incorporate such technology into many more consumer products, vehicle components and robotics applications than previously.

CRC signed a service contract with the North American Broadcasters Association to evaluate possible interference with digital television reception of transmissions of broadband over power lines.

CRC made several technology-based presentations to federal organizations, including to the Standing Committee on Canadian Heritage on the impact of technologies and the role of public broadcasters in the 21st century, and to the Canadian Radio-television and Telecommunications Commission on new media.

CRC launched a free online service to calculate radio frequency coverage so that users are better equipped to optimize coverage and reduce implementation costs as they plan and design broadcast systems.

CRC received several awards honouring its technology transfer and commercialization track record: recognition as the developer of Search and Rescue Satellite-Aided Tracking, receipt of an innovation award as a partner in the Agile All-Photonic Networks Research Network, and induction into Canada's Telecommunications Hall of Fame.

Supplementing access to information and communications technology

Industry Canada's regional offices supported the Information Highway Applications Branch in the collection of data and the monitoring of Community Access Program sites. They foster the networking between information and communications technology associations, enterprises, and research and development organizations, and raise the awareness of Industry Canada's priorities. The regional offices work with the Department's partners in the regions to establish a common view of the challenges that face the information and communications technology sector.

Supporting innovation in aerospace and defence

The following are highlights of Strategic Aerospace and Defence Initiative investments in 2008–2009.

Héroux-Devtek  Inc. of Longueuil received a $27-million investment in a $77 million project to develop and integrate new technologies into landing-gear systems and their design and manufacture. The project will also develop landing-gear components, such as in-flight monitoring and electronic systems, for next-generation aircraft. These technologies will make landing gear more secure and reliable and help detect problems before they occur.

Integran Technologies Inc. of Toronto received a $4.6-million investment in an $11.5-million project that will contribute to the research and development for next-generation nanotechnology-based coatings for the multinational Joint Strike Fighter program. This project is to develop a hard metal coating to extend the life of tools that form and shape airplane parts. Integran will collaborate with University of Toronto graduate students on this project, supporting knowledge and technology transfer from academia into a commercial setting.

Bristol Aerospace Limited, a division of Magellan Aerospace Corporation of Mississauga, received a $43.4-million investment in a $120-million project for the research and development of new processes supporting next-generation composite manufacturing and complex assemblies for the Joint Strike Fighter program. This work will involve extensive collaboration with industry and research institutions. Benefits include creating and maintaining highly skilled jobs in Canada, while contributing to an aerospace composite centre of excellence in Winnipeg.

Norsat International Inc. of Richmond, British Columbia, received a repayable contribution of $5.97 million towards a $17-million research and development project related to next-generation portable ground satellite telecommunications technologies. This project will expand the company's technical capabilities in several ways, improving the effectiveness of satellite communications used in the field. Norsat will collaborate with Simon Fraser University graduate students on this project, once again promoting knowledge and technology transfer.

Developing Technology Roadmaps

The Industry Sector completed three Technology Roadmaps (with four ongoing), bringing together representatives from industry, its supply chain, academia, research groups and government to identify and prioritize the technologies needed to create new products to meet future market demand. It is a collaborative method to guide strategic research and development decisions that support innovation.

Strategy 3: Supporting business through policies and programs that promote competitiveness and productivity
2008–2009 business objectives Status

Strengthening tourism through policy integration and advocacy

Industry Canada's Tourism Directorate supported the Secretary of State (Small Business and Tourism) in engaging with tourism stakeholders to identify opportunities and challenges facing the industry, with particular emphasis on northern tourism.

The Directorate increased its outreach to federal stakeholders to collaborate on how to enhance Canada's competitiveness in light of developments such as the Western Hemisphere Travel Initiative, which brings in new rules for travelling and bringing goods into the United States, and the Foreign Convention and Tour Incentive Program, which offers incentives for organizations holding conventions or bringing groups to Canada. In addition, the Directorate has been working closely with other government departments to document federal expenditures in support of the tourism sector, and has strengthened relationships with the Canadian Tourism Commission to ensure alignment of its marketing and research initiatives with federal policies.

Supporting Canadian industries

Industry Canada is providing up to $80 million through a repayable contribution from the Automotive Innovation Fund for Ford Motor Company of Canada's Renaissance Project, which is expected to create or sustain up to 757 Canadian jobs and make Canada a leader in green, fuel-efficient auto technologies.

Supporting small and medium-sized businesses

Spectrum, Information Technologies and Telecommunications Sector consulted with key information and communications technology industry players in Vancouver, Winnipeg, Toronto, Montréal and Halifax to develop a research agenda that will benefit the sector and to identify impediments to sector growth. Intelligence gained will be used to enhance policy options to develop targeted business development services and to influence federal partners to provide more relevant service to industry.

Industry Canada is helping small and medium-sized enterprises and entrepreneurs grow and prosper. The Canada Small Business Financing Program, in partnership with financial institutions, facilitated access by small and medium-sized enterprises to approximately $1 billion of financing in 2008–2009 so they could buy and improve business assets. As well, Industry Canada continued to collaborate with the Business Development Bank of Canada to support Canadian businesses.

In collaboration with regional development agencies, the Department completed consultations and research to develop a new vision and service strategy for the Canada Business Network, an information service to support business start-up and growth for small business and entrepreneurs. The Regional Operations Sector provided operational leadership for Canada Business centres in Ontario, Nunavut, the Northwest Territories and Yukon, including pilot projects in Ontario to provide Spanish-language telephone service and initiate a Service Canada/ServiceOntario referral partnership. Also, BizPaL, an online tool providing permit and licence information from all levels of government, expanded to include Newfoundland and Labrador, the Northwest Territories, and New Brunswick.

Industry Canada continued to coordinate federal efforts to reduce the paperwork burden for businesses by 20 percent. Participating departments and agencies, including Industry Canada, implemented measures to achieve their reduction targets and undertook complementary measures to ease small business' overall compliance burden. The latter include measures to simplify existing administrative processes, create single-window access to multiple government services (similar to BizPaL), harmonize definitions and requirements across departments and levels of government, and create tools to provide relevant and timely information to entrepreneurs.

Implementing the Sustainable Development Strategy

Industry Canada continued to implement the 26 action items in the Department's Sustainable Development Strategy 2006–2009. Implementation of the action items is undertaken by 11 branches in five sectors of the Department. The action items aim to achieve the following vision: In support of a competitive economy, Industry Canada is positioned as a leader in supporting sustainable development technologies and practices for business and consumers. The action items fall under one of the following three strategic outcomes: sustainability-driven technologies and commercialization; sustainability tools, practices, research and awareness; and sustainability practices and operations within Industry Canada.

According to the results of the fourth reporting period (April 1, 2008, to September 30, 2008), progress on the implementation of the action items is proceeding well towards full implementation by December 2009. For highlights of progress of action items over this reporting period, please view the performance reports on our website.

Given the passage into law of the Federal Sustainable Development Act in June 2008, Industry Canada will be required to support, according to its mandate, the federal goals in a new federal sustainable development strategy to be tabled in Parliament in June 2010. As well, the Department will be required to table its new Sustainable Development Strategy in June 2011.

Delivering infrastructure programs

Industry Canada administers infrastructure programs on behalf of Infrastructure Canada. These include the Canada-Ontario Municipal Rural Infrastructure Fund (in collaboration with the Government of Ontario), the Municipal Rural Infrastructure Fund top-up, the Canada Strategic Infrastructure Fund and the Building Canada Fund. The most recent program, the Communities Component of the Building Canada Fund, which was launched in Ontario on August 26, 2008, assists smaller communities undertake capital projects that will enhance the well-being of residents in their communities. These infrastructure programs foster economic growth, support a cleaner environment, and promote stronger, safer communities in Ontario.

Administering the Ontario Potable Water Program

Industry Canada began to administer the Ontario Potable Water Program, which was announced in February 2008. The program provides funds to cover municipalities' increased costs for water projects under the Canada-Ontario Infrastructure Program to comply with changes to Ontario drinking water regulations.

Supporting development in Ontario

Regional Operations Sector worked to raise awareness across the Department of the regional context through intelligence reports, provincial economic overviews, industry profiles, etc. Challenges faced by small businesses in the regions and the strategies, action plans and initiatives of partners in the regions were communicated so that departmental decision making on policies, programs and services is regionally attentive and nationally encompassing.

FedNor continued to provide support for regional development in Ontario through its three programs — the Northern Ontario Development Program, the Eastern Ontario Development Program and the Community Futures Program — to promote the sustainable development of communities, encourage innovation and strengthen the competitiveness of small and medium-sized enterprises. For example, FedNor continued to deliver its $14.7 million commitment to help establish the Molecular Medicine Research Centre in Thunder Bay. The new centre will support leading-edge research that has commercial potential and will foster strategic alliances among research and post-secondary educational institutions, the private sector, communities and government.

Supporting the Security and Prosperity Partnership of North America

The Security and Prosperity Partnership (SPP) of North America — Canadian Secretariat supported the Minister of Industry in leading Canada's engagement in the SPP and in advancing strategic Canadian interests with respect to security and prosperity within North America.

The Secretariat provided advice and contributed to preparations for the SPP ministerial meeting in February 2008 in Los Cabos, Mexico, and for the North American Leaders' Summit held in New Orleans in April 2008. The Secretariat worked closely with federal departments and agencies, and with officials from the U.S. and Mexico, to implement initiatives announced by leaders at the summit to advance their five priorities (enhancing the global competitiveness of North America, safe food and products, sustainable energy and the environment, smart and secure borders, and emergency management and preparedness).

Corporate priorities

Strengthening management practices

In 2008, Treasury Board Secretariat and Canada Public Service Agency recognized Industry Canada for improved management in a number of areas.

Effectiveness of financial management and control (performance improved from “acceptable” to “strong”): In particular, the agencies complemented the Department on the accuracy, scope and frequency of internal reporting to senior management.

Effective project management (improved from “opportunity for improvement” to “acceptable”): The agencies recognized that the Department has the essentials of effective project management in place, including organization-wide project governance, rigorous resource management and results-focused oversight. These in turn ensure to a reasonable level that project risks will be mitigated and results achieved.

Integration, use and reporting of performance information (improved from “opportunity for improvement” to “acceptable”): Industry Canada was encouraged to improve its use of financial and non-financial performance information as a basis for analyzing program spending.

Over the course of 2008–2009, Industry Canada continued to make improvements in a number of areas.

Utility of the corporate performance framework: Industry Canada worked diligently to develop the 2009–2010 Program Activity Architecture (PAA), which is an inventory of all the programs and activities undertaken by the Department and provides a framework for planning, performance measurement and reporting. Treasury Board approved it in May 2008. The Department also strengthened the Performance Measurement Framework for the renewed PAA so that credible, reliable performance information is available to support decision making and demonstrate value for money.

Quality reporting to Parliament: Industry Canada participated in a pilot project with Treasury Board Secretariat to improve the 2007–2008 Departmental Performance Report (DPR) and held a workshop on quality reporting to Parliament in June 2008, which highlighted concise and balanced reporting. Industry Canada improved the 2007–2008 DPR by including externally verified sources of information, evidence-based information and lessons learned. In the 2009–2010 Report on Plans and Priorities, the Department improved performance measurement information by including targets for all performance indicators.

Effectiveness of corporate risk management: Industry Canada has made a significant effort to improve the Department's risk management practices. In September 2008, the Department finalized the Integrated Risk Management Framework and communicated it to employees, followed by the Corporate Risk Profile. Action plans were created for key strategic risks, and these risks are being monitored and progress reported on to senior management. In addition, risk was integrated into the departmental planning process to ensure that the Department's risk context is taken into account.

Effectiveness of asset management: Industry Canada developed a real property management framework, a real property policy and performance measures. These will be implemented within the Department to support investment decisions in Industry Canada's Investment Plan.

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