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

3.4 Additional Information for Program Activities by Strategic Outcome

Strategic Outcome: Competitive Industry and Sustainable Communities

Strategic Policy Sector — Economic Development

Expected Result: Development and coordination of policy frameworks in support of competitive industry and sustainable communities
Performance Indicator	Results	Trend
Development and coordination of economic policy frameworks that support the competitiveness of Canadian industries and help ensure the sustainability of communities across the country	IC continued to implement the 26 action items in the Sustainable Development Strategy (2006–09) IC participated in an interdepartmental working group with Department of Foreign Affairs and International Trade (DFAIT), Environment Canada and Natural Resources Canada on the development of a national and North American region 10-year framework of programs to make progress towards sustainable consumption and production (SCP). Industry Canada also participated in a Canada–U.S. stakeholder consultation on the issue of programs IC officials participated in international trade negotiations (within the World Trade Organization and with Korea, Panama, Jordan and Central America, for example) and in Foreign Investment Promotion and Protection Agreement negotiations (with Vietnam, Indonesia, China, Madagascar and Kuwait, among others)	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 Program Activity Architecture.

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
6.6	15.5	15.4*		38	37	-1

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

Meeting our commitments:

The development of Industry Canada’s 5th Sustainable Development Strategy (SDS V) has been delayed until fiscal year 2010–11 due to the passage of a new Federal Sustainable Development Act (SDA) in June 2008. The Act requires that departments table their next SDS in June 2011, and that it be closely aligned, where appropriate, with the federal SDS, which will be tabled in June 2010.

In order to build the appropriate policy frameworks supporting competitive industries, Industry Canada officials provided trade policy advice to DFAIT and other departments throughout 2008–09 on issues related to telecommunications, investment, competition, intellectual property and industrial policies related to key sectors including autos, shipbuilding, aerospace, apparel and textiles. Departmental officials advised and participated in negotiations with the Andean communities. Free Trade Agreement (FTA) negotiations with Colombia and Peru were successfully completed and signed. FTA negotiations with the Caribbean community and the Dominican Republic were put on hold due to domestic issues within those countries. Investment negotiations with Jordan were successfully completed and an agreement is targeted for signature in 2009. For further information, see Negotiations and Agreements.

Industry Canada  officials participated in Doha Round trade negotiations at the WTO in 2008–09, in the negotiation of sectoral agreements in the non-agricultural market access as well as in the negotiation of rules for subsidies. These negotiations are ongoing. For more information, see Foreign Affairs and International Trade Canada. They also developed policy positions on international trade rules in response to questions on Industry Canada legislation and policies (such as the Telecommunications Act and the Investment Canada Act, and industrial policies related to autos) in the WTO and in FTA negotiations with Korea and Singapore.

Lessons Learned:

Industry Canada collected departmental activities related to sustainable development which were not captured within the SDS IV, and discovered that much of this work is proceeding with direct linkages to SD. The Department plans to collect this information on a regular basis and include it in the semi-annual SDS progress reports.

Small Business and Marketplace Services and Regional Operations Sector — Economic Development

Expected Result: A business environment that supports entrepreneurship, sustainable communities, growth and competitiveness across Canada, and recognizes regional perspectives
Performance Indicator	Results	Trend
Number of new government policies or initiatives that address SME needs, encourage entrepreneurship, or reflect regional perspective	12 new policies, proposals or initiatives addressed SME needs* 13 new policy and legislative initiatives reflected a regional perspectives	New indicator
Number of new or improved departmental programs, services and information products that target SMEs	1 information database was improved: the Canadian Company Capabilities (CCC) database of 60,000 Canadian companies used by the private and public sectors to source Canadian products and services 3 new services were provided by the Canada-Ontario Business Service Centre, including provision of telephone services in Spanish; provision of online information in Polish, Russian and Urdu; and service partnerships with Service Canada and Service Ontario	New indicator

* These include consultations on topics such as Aboriginal Economic Development, and EU/Canada Free Trade Agreement (FTA); information items to Director General Policy Committee; regulatory amendments for the Canada Small Business Financing Program (CSBFP); the Paperwork Burden Reduction Initiative; the Canada Youth Business Foundation (CYBF) and the Business Development Bank of Canada (BDC).

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
235.6	315.4	272.3		523	507	-16

Meeting our commitments:

In 2008–09, Industry Canada worked with its partners to increase the number of locations offering the BizPaL service by 146% (167 additional municipalities and 3 additional provinces and territories began to offer the BizPaL service). These achievements enabled more Canadians to have access to BizPaL, which provides Canadian businesses with one-stop access to permit and licence information for all levels of government. This translates into savings in the time required to research and find required permits and licences quickly and efficiently in order to comply with government regulations. It also provides entrepreneurs and Canadian businesses with more time to focus on starting or growing their business, which, in turn, helps support the Canadian economy.

The Department also completed a program renewal exercise to serve ongoing funding for the Canada Business Network (CBN), an information service for small business delivered in partnership with the Atlantic Canada Opportunities Agency, Western Economic Diversification Canada and the Economic Development Agency for the Regions of Quebec.

FedNor continued to provide support for regional development in Northern Ontario through the Northern Ontario Development Program, the Eastern Ontario Development Program and the Community Futures Program. Notably, FedNor continued to deliver its $14.7-million commitment to help establish the Molecular Medicine Research Centre in Thunder Bay. This will help 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 the government.

Additionally, through the Ontario Potable Water Program (launched in February 2008), Industry Canada has announced 65 grants totalling $12,539,542 that enable recipient municipalities to respond to economic development opportunities and help rebuild community capacity.

Lessons Learned:

Industry Canada is finding new ways to promote economic development in communities in order to encourage the development of skills and knowledge. During 2008–09, Industry Canada undertook a review and redesign of the Student Connections Program, which had operated as part of the federal Youth Employment Strategy (YES), to help  SMEs expand their use of information technology. The program was redesigned to improve its cost-efficiency and relevance while reducing the administrative burden for the recipients. The program has been renamed the Small Business Internship Program (SBIP).

Industry Sector — Economic Development

Expected Result:  Competitive and sustainable Canadian industries
Performance Indicator	Results	Trend
Increase in year-over-year Industry Sector’s GDP	2007: $524.7B 2008:  $519.4B9 Change:  -1.0%	Declining
Increase in year-over-year Industry Sector’s exports	2007: $276.3B 2008: $259.0B10 Change: -6.2%	Declining
Increase in year-over-year Industry Sector’s productivity11	2007: 27.8 2008: 27.612	No change

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
66.8	81.4	77.9*		235	226	-9

* The variance is a result of additional authorities approved in 2008–09.

Meeting our commitments:

In an effort to support the competitiveness and sustainability of Canadian industries, Industry Canada requested that 2 automotive firms improve their cost structures outlined in their respective restructuring plans. As the companies each made sacrifices to help ensure a sustainable, competitive company going forward, the government supported their efforts to restructure.

To further support other Canadian industries, the Department also approved 32 projects through the Canadian Apparel and Textile Industries Program (CATIP), with total funding of $2.4 million. Additionally, 6 contribution agreements, representing over $80 million of value in sales to Canadian shipyards, were signed through the Structured Financing Facility (SFF). Moreover, as of March 31, 2009, the Industrial and Regional Benefits (IRB) policy has resulted in over $15 billion in commitments to invest in Canada. With the government’s unveiling of the Canada First Defence Strategy, planned future procurements could exceed $40 billion in new IRB opportunities over the next 10 years. Industry Canada also undertook activities to better inform trade negotiations and policy development, including improving market access to Japan for Canadian wood building products.

Spectrum, Information Technologies and Telecommunications Sector — Economic Development

Expected Result: Aid Canadian ICT companies in positioning themselves for industrial opportunities and growth in the global marketplace
Performance Indicator	Results	Trend
Number of website hits for ICT information products created to increase the level of awareness of Canadian ICT companies of domestic and international trends (e.g., quarterly monitoring of ICT sector)	157,941 hits for ICT information and products	New indicator
Number of requests by Canadian ICT companies for business development services (e.g., investment)	There were 567 requests by ICT companies for business services to address major challenges along common themes such as SR&ED and funding options, as well as company support available for various global events and business opportunities*	New indicator

*Including CommunicAsia, BroadcastAsia, Expo Comm China, Futurecom, and Mobile World Congress (MWC).

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
26.1	43.7	43.6*		49	80	31*

* The variance arises from the fact that no resources were reported in the RPP for the Community Access Program and the Computers for Schools program, as the program authorities were still pending at the time.

Meeting our commitments:

Industry analysis and support resulted in common issues being identified and validated in order to provide suggestions to improve policy, programs and services to the ICT sector. Industry Canada engaged stakeholders in all regions and sub-sectors of the ICT industry across Canada to encourage sharing of information such as business factors that affect productivity, sustainability and growth of the sector. The intelligence gathered was shared with the Trade Commissioner Service to assist in matching Canadian capabilities to foreign needs in order to enable companies to be better-positioned to compete in global markets.

Industry Canada secured funding to deliver the Community Access Program (CAP) in 2008–09 and 2009–10 and to deliver Computers for School (CFS) from 2008–13. In 2008–09, Budget 2009 announced a 3-year, $225-million program to develop and to implement a strategy to extend broadband coverage to as many underserved/unserved households as possible. The program will be based on a competitive application process that will be announced in late summer, 2009.

Mackenzie Gas Project

Expected Result: Development of Mackenzie gas resources supports sustainable communities
Performance Indicator	Results	Trend
Plan an effective, efficient regulatory process for the Mackenzie Gas Project (MGP)	An MOU respecting coordination amongst federal departments and the National Energy Board and an Implementation Plan that outlines how regulators will work together effectively and efficiently were endorsed	New indicator
Provide up to $2 million to Northwest Territories Aboriginal communities living along the proposed pipeline route to facilitate development of regional investment plans	Provided $1.8 million to 5 Aboriginal communities to assist them in continuing and/or finalizing the development of regional investment plans	New indicator

 

2008–09 Financial Resources ($ millions)				2008–09 Human Resources (Full-Time Equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
–	7.9	5.0*		N/A	N/A	N/A

* Data are not available due to the fact the Mackenzie Gas Project was transferred to Industry Canada from Indian and Northern Affairs Canada late in 2007–08, and then was transferred to Environment Canada late in 2008–09.

Meeting our commitments:

The Mackenzie Gas Project (MGP) is a proposed 1,220-kilometre natural gas pipeline system through the Mackenzie Valley in the Northwest Territories that will connect northern onshore gas fields with North American markets. It has the potential to make key contributions to promoting economic development in the Northwest Territories. The Mackenzie Gas Project Office will continue to coordinate federal government efforts to support the MGP.

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