Departmental Performance Report — For the period ending March 31, 2009

Section 2: Analysis of Program Activities by Strategic Outcome

Strategic Outcome: A Fair, Efficient and Competitive Marketplace

 

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A fair, efficient and competitive marketplace helps create a business environment that encourages business competition and growth, thereby supporting overall economic growth and a higher standard of living for Canadians. Open and competitive markets also benefit consumers by encouraging improved choice and quality and lower prices for goods and services. In order to promote consumer confidence and more competitive and innovative businesses, Industry Canada will continue to provide the policies, regulations and administration to respond to the evolving marketplace.

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Meeting Our Commitments:

In an effort to contribute to a fair, efficient and competitive marketplace, 13 federal departments and agencies, including and led by Industry Canada, worked together to achieve the 20% reduction in the paperwork burden by streamlining regulations, eliminating duplicate requirements, getting rid of overlapping obligations and reducing how often documents need to be filed.

Benefits to Canadians:

• Created a dedicated response team and launched an interdepartmental policy development process in response to the Competition Policy Review Panel’s Compete to Win report from June 2008. This initiative will expand opportunities for Canadian firms, safeguard national security and enhance Canada’s competitive environment
• Protected consumers and promoted their interests by encouraging lower prices, better choices, and new products and services through amendments to the Competition Act and the Investment Canada Act. These amendments will also help Canada become more competitive globally by making Canada more attractive to foreign investments. This helps to create jobs and opportunities for Canadians and to improve productivity and innovation. They will also ensure that foreign investments do not jeopardize national security
• Along with many other technical standards put in place to enable new wireless technologies and services for Canadians, the Department enabled the introduction of digital television across Canada through the Digital TV Post-Transition Allotment Plan and the Post-transition Agreement on DTV between Canada and U.S.A.
• Provided access to essential telecommunications services to facilitate the communication between emergency responders, and continued to ensure that telecommunications services are available to Canadians during times of emergency
• Accelerated Canada’s economic development by encouraging inventors and innovators to maximize the value of their intellectual property (IP), based on their use of the intellectual property system and exploitation of IP information

Performance Analysis:

Through the following program activities, Industry Canada continued to build a fair, efficient and competitive marketplace.

Strategic Policy Sector — Marketplace

Expected Result: Development and coordination of economic policy frameworks that support a fair, efficient and competitive marketplace

Performance Indicator	Results	Trend
Number of policy initiatives, including legislative and regulatory amendments tabled and approved, aimed at supporting a fair, efficient and competitive marketplace in Canada (e.g. corporate, insolvency, intellectual property, investment, international trade and competition policy)	5 bills tabled: C-61: An Act to amend the Copyright Act C-62: An Act respecting not-for-profit corporations and certain other corporations (Canada Not-for-Profit Corporations Act) C-4: An Act respecting not-for-profit corporations and certain other corporations C-10: An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009, and related fiscal measures (Budget Implementation Act, 2009) C-4: Canada Not-for-Profit Corporations Act 1 set of regulatory amendments was published Regulatory amendments were implemented to the Industrial Design Regulations 2 internal trade protocols amending the Agreement on Internal Trade were adopted	Not Applicable*

^* Trends in performance indicators are not useful to measure due to the nature of the work of this program activity, where actual results vary from year to year, depending on the current agenda and priorities of the government. Recognizing the inherent difficulties in measuring the performance of the program activity, Public Policy Services has been moved under Internal Services in the 2009–10 PAA.

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
12.6	18.2	18.1*		113	117	4

^* The variance can be explained by the transfer of funds for new responsibilities.

Meeting Our Commitments:

In support of a fair, efficient and competitive marketplace, and in response to the Competition Policy Review Panel’s recommendations, Industry Canada amended the Competition Act and the Investment Canada Act contained in the Budget Implementation Act, 2009, Bill C-10, which received Royal Assent on March 12, 2009. As set out in its report, Compete to Win, these amendments respond to the Panel’s core recommendations for modernizing Canada’s competition and foreign investment laws and policies, and better protecting consumers and promoting their interests by encouraging lower prices, better choices, and new products and services. Bill C-10 will also make Canada more competitive globally by creating jobs and opportunities for Canadians, attracting investment, improving productivity and innovation, and safeguarding Canada’s national security interests.

Small Business and Marketplace Services and Regional Operations Sector — Marketplace

Expected Result: Marketplace fairness, integrity and efficiency are protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management

Performance Indicator	Results	Trend
Number of rules and requirements that are updated or reviewed to ensure relevance and responsiveness to marketplace needs	In support of the administration of the Weights and Measures Act and the Electricity and Gas Inspection Act, 3 regulatory amendment packages were introduced and 25 policy bulletins and technical specifications were developed or revised All Bankruptcy and Insolvency Act (BIA) regulatory instruments reviewed, many instruments amended, and 6 new rules and 7 new forms were created 19 new regulations and 4 new forms created under the Companies’ Creditors Arrangement Act 1,035 rules and requirements dealing with federal incorporation were updated or reviewed	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
95.6	116.6	107.3		1,098	1,044	-54

Meeting Our Commitments:

In 2008–09, Industry Canada conducted in-depth consultations in the chemical products, food and beverage manufacturing, livestock and poultry, and fruit and vegetable sectors to obtain stakeholder views and recommendations on how measurement accuracy should be achieved and monitored in these marketplace sectors. Through the establishment of sector-specific marketplace approaches to achieving and monitoring measurement accuracy, stakeholder needs and expectations were addressed and a suitable level of government intervention was afforded, contributing to a fair, efficient and competitive marketplace. Other consultations were also held to improve incorporation service across the country through interjurisdictional partnership, witnessed through the active participation of partners, including provinces and territories, in developing and formulating the new NUANS® governance structure.

To ensure marketplace fairness and efficiency in spectrum management, the new Radiocommunication and Broadcasting Antenna Systems procedures were published in January 2008. They came into effect in July 2008, after a six-month transition period, to allow the thousands of stakeholders across Canada, industry, government and the public, time to adapt to the updated process. The key changes include one process for all antenna structure usages, clearer processes for public notification and consultation, and added community involvement.

Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Expected Result: Canada’s radiocommunications and telecommunications infrastructure and online economy are governed by a modern and appropriate policy framework

Performance Indicator	Results	Trend
Percentage of policies, legislation and regulations developed, updated or reviewed as identified in annual branch business plans / strategic plans	90% of planned initiatives were undertaken including: The production of policies and standards for many bands that will enable new technologies and services in Canada The drafting of anti-spam legislation and exploring legislative options to update the Personal Information Protection and Electronic Documents Act (PIPEDA) legislation The release of the revised policy paper entitled Licensing Framework to Auction Spectrum in the Bands 849—851 MHz and 894—896 MHz for Air-Ground Services 3 CRTC decisions reviewed by the Governor-in-Council	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
58.9	68.2	65.0*		357	337	-20

^* The variance between Planned Spending and Actual Spending relates to the increased salary costs from collective agreements and retroactive pays, as well as internal funding reallocations towards program legislative and regulatory priorities relating to spectrum / telecom management.

Meeting Our Commitments:

Industry Canada has made significant progress in advancing Canada’s radiocommunications and telecommunications frameworks, which includes infrastructure, spectrum management and policy. In addition to raising $226.6 million annually in spectrum and radio licences, the Department held the Advanced Wireless Services (AWS) spectrum auction in 2008, which concluded successfully and raised over $4 billion. This spectrum is to be used for advanced wireless services such as high-speed Internet and mobile devices.

The Department also completed the Digital TV Post-Transition Allotment Plan, which reserves a part of the current television spectrum for digital television use and allows other services to use the remainder. The Allotment Plan provides a channel for each television station. This plan has been coordinated with the U.S. plan. The transition to digital television is set to be completed by August 31, 2011.

Industry Canada ensured that spectrum and telecommunications are available for public safety and emergency purposes. This includes readiness exercises for the Vancouver 2010 Winter Games, maintaining partnerships with stakeholders in both the private and public sectors, and completing the initial phase of a study on the resilience of the Canadian wireless infrastructure. In addition, various operational drills were executed to ensure equipment and government-related procedures were understood and effective in responding to a crisis.

Office of Consumer Affairs

Expected Result: Consumer interests are protected and promoted throughout Canada

Performance Indicator	Results	Trend
Number of major challenges being addressed and/or documented that affect the consumer interest in Canada	4 consumer challenges (consumer debt, consumer literacy, use of alternative forms of credit and the risk of identity theft) were continually addressed through research, advocacy and outreach	New indicator

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
5.1	6.4	6.3*		23	22	-1

^* The variance can be explained by the fact that the Office of Consumer Affairs received further funding through supplementary estimates A and B.

Meeting Our Commitments:

Industry Canada, through the Office of Consumer Affairs (OCA), completed submissions concerning federal designation orders under the Criminal Code payday lending exemption for the province of Manitoba (order proposed in May 2008 and made official in June 2008) and for the province of Nova Scotia (order proposed in March 2009). In 2008–09, the OCA led the development of a joint federal-provincial-territorial discussion paper on services to help consumers recover from identity (ID) theft. To promote consumer confidence and address major consumer challenges, the Department also undertook research focusing on consumer vulnerability, the electronic marketplace and sustainable consumption. Evidence-based submissions were made to internal, interdepartmental and intergovernmental forums in support of modern frameworks for electronic payments, consumer credit reporting, financial literacy and telecommunications. Consumers were provided with a new information product on digital television, and an information series of five topics including debt and identity theft was completed for Canadians with low literacy skills. The OCA also released the 2008–09 version of The Canadian Consumer Handbook.

Competition Bureau

Expected Result: The Canadian economy is efficient and adaptable due to the competitiveness of prices and choices available to consumers

Performance Indicator	Results	Trend
Dollar savings to consumers from Bureau actions that stop anti-competitive activity	Estimated savings of $254 million (criminal enforcement only)*	New Indicator

^* Estimated overcharge to consumers (or economic harm) for the duration of the infraction, prior to Bureau actions concluded in fiscal year 2008–09. This is a conservative estimate based on similar methodologies used by antitrust agencies in other countries.

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
49.8	62.2	59.1		452	438	-14

Meeting Our Commitments:

Combatting domestic cartels and illegal bid-rigging agreements was a priority for the Competition Bureau in fiscal year 2008–09, and key to ensuring that the Canadian marketplace is fair and competitive. Industry Canada, through the Competition Bureau, uncovered a conspiracy to fix the price of gasoline at the pump in the province of Quebec. As a result of that investigation, 13 individuals and 11 companies were charged. As of March 2009, 6 companies and 8 individuals had pled guilty, fines totalled over $2.6 million and imprisonment terms totalled 44 months.

Charges were laid against 14 individuals and 7 companies accused of rigging bids in order to obtain Government of Canada IT services contracts worth approximately $67 million. In addition, the Bureau continued to support prevention and detection by educating buyers and sellers to identify and report potential bid-rigging schemes. It conducted 51 bid-rigging presentations for approximately 2,020 people representing businesses across the country and all levels of government. Fifteen organizations that had participated in the presentations informed the Bureau that they had implemented changes to their tendering process.

The Bureau continued to advocate for the introduction of greater competition in the regulated health sector. With the release of its 2008 study, Benefiting from Generic Competition in Canada: The Way Forward, the Bureau offered tangible recommendations on where potential government and consumer savings of up to $800 million were being lost. One province, Manitoba, has amended its public drug plan policies on the basis of the Bureau’s recommendations and the Bureau continues to consult with other provinces and territories on potential reforms.

Canadian Intellectual Property Office — Revolving Fund

Expected Result: The delivery of and quality of CIPO’s services respond to client needs and expectations

Indicator	Results	Trend
Percentage overall satisfaction of clients with CIPO’s services	74% of clients were satisfied or very satisfied with CIPO’s services, down from 79% in 2005	Declining
Expected Result: Increase awareness and use of intellectual property
Indicator	Results	Trend
Percentage of SMEs that are aware of / familiar with IP	Baseline of 36% established in 2006–07 (next survey: 2010–11)	Not applicable

 

Financial Resources ($ millions) 2008–09				Human Resources (Full-Time Equivalents) 2008–09
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
4.9	139.5	12.9*		1,030	944	-86

^* Although CIPO and its clients have been operating in tenuous economic conditions, a positive variance in net operating income was incurred. This variance is primarily due to the prudent management of expenditures, lower investment in capital and changes under various balance sheet accounts such as deferred revenue and accounts payable. We anticipate utilizing the positive variance in future years to maintain current operating levels and to fulfill CIPO’s strategic objectives.

Meeting Our Commitments:

The Canadian Intellectual Property Office (CIPO) continues to focus on becoming more efficient, accessible and responsible to its clients to help them strengthen their competitive advantage, both domestically and globally. To that end, CIPO is improving client access to quality intellectual property (IP) rights in a timely fashion. CIPO is modernizing its e-services platform through the Enterprise Business Renewal Initiative, enhancing the bilingual search capabilities of its databases, and creating a more user-friendly website. Moreover, to improve awareness of intellectual property, CIPO undertook projects in the education and SME sectors to increase understanding by students, creators and innovators of the effective use of IP. These projects included piloting educational tools for university students in science and engineering faculties, prototyping IP data research tools for SMEs, and developing and delivering IP training for intermediaries to leverage their reach to multiple sectors. The Office also formed a new working group with Australia and the United Kingdom (called the Vancouver Group) to explore collaborative initiatives, share best practices and research findings, and compare performance trends.

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⁴ Indicators of Product Market Regulation. OECD, 2008

⁵ Economic Policy Reforms: Going for Growth. OECD, 2009

⁶ World Competitiveness Yearbook. International Institute for Management Development (IMD), 2008

⁷ World Competitiveness Yearbook. IMD, 2008

⁸ Indicators of Product Market Regulation. OECD, 2008

⁹ World Competitiveness Yearbook. IMD, 2008