Progress on the 2009-2010 Business Objectives

Measurement Canada is working to modernize the Weights and Measures Act and the Electricity and Gas Inspection Act to improve measurement accuracy in the marketplace and reduce consumer and business risk of financial loss due to inaccurate measurement.

Measurement Canada has made considerable progress in relation to its objective to modernize the Weights and Measures Act and the Electricity and Gas Inspection Act, working to advance proposals that address the government’s commitments to amend the acts to ensure measurement accuracy and increase fines for retailers who overcharge their customers.

As part of its efforts to ensure an efficient and effective marketplace, Corporations Canada will continue to improve its information technology (IT) system and internal processes to address evolving business and client needs and to provide efficient ways to better serve Canadian businesses.

As of December 1, 2009, Corporations Canada is making progress on internal testing, monitoring and enhancement of its new IT application in preparation for its full public deployment, which is expected in the near future. The new IT system and the new internal processes are intended to provide faster turnaround time and better service to clients.

In light of the recommendations made by the Competition Policy Review Panel, the Strategic Policy Sector will work to modernize Canada’s foreign investment regime to further attract foreign investment in Canada.

Proposed amendments to modernize the Investment Canada Act to further attract foreign investment in Canada were adopted on March 12, 2009 through the Budget Implementation Act, 2009. All amendments to the Investment Canada Act are in force, except those related to changing the basis for the net benefit review threshold from “assets value” to “enterprise value.” These amendments will come into force once the corresponding regulations are promulgated.

In addition, new National Security Review of Investments Regulations came into force on September 17, 2009. Proposed amendments to the Investment Canada Regulations were pre-published in Canada Gazette Part I on July 11, 2009, and are expected to be finalized in 2010.

Regional Operations Sector^*, with support from Spectrum, Information Technologies and Telecommunications Sector (SITT), will take measures to ensure that the highest quality of spectrum management is in place to meet the needs of the Vancouver 2010 Olympic and Paralympic Winter Games and to support safety and security at Olympic events in Vancouver and Whistler.

^*Note: Responsibility for this item has been transferred to the Spectrum, Information Technologies and Telecommunications Sector.

The initial training and orientation of managers and staff for duty during the Games is complete, and new spectrum-monitoring equipment is being installed and tested. In addition, detailed procedures for responding to radio-interference complaints have been developed in coordination with other government partners and the Vancouver Organizing Committee. These procedures have been tested and refined through training and exercises, including Exercise Silver.

SITT, with support from Strategic Policy Sector, will hold two spectrum auctions. The first will be for a national licence in each of the 849–851 megahertz and 894–896 megahertz bands to enable enhanced air–ground services such as Internet access and email on board Canadian aircraft. The second will be a streamlined auction for 10 licences in the 2.3 and 3.5 gigahertz bands for fixed services such as Internet.

The auction for air–ground services spectrum took place on May 25, 2009. The winner for the auction was SkySurf Canada Communications Inc. Its licence was issued on June 30, 2009.

The auction for the remaining 2.3 and 3.5 gigahertz bands took place in June 2009, and all licences were issued.

SITT, with support from Strategic Policy Sector, will hold consultations on various spectrum policy and licensing initiatives, including on the renewal of personal communications services and cellular licences, and on changes to technical regulations to enable various mobile services and broadband data services. In addition, the Sector will initiate consultations on the policy and licensing provisions to take advantage of the “digital dividend” when Canada makes the transition from analog to digital television.

The consultation process for the renewal of spectrum licences for Cellular and Personal Communications Services was launched in March 2009. Comments were received and a decision paper is being developed.

Consultation was also undertaken for preliminary issues related to the Broadband Radio Service at 2500 megahertz. A decision paper is being developed.

The Canadian Radio-television and Telecommunications Commission has set the transition date from analog to digital television for August 31, 2011.

SITT, with support from Strategic Policy Sector, will work with the Organisation for Economic Co-operation and Development and Canadian stakeholders to implement The Seoul Declaration for the Future of the Internet Economy.

In accordance with the Seoul Declaration, SITT continues to strengthen the infrastructure and policy and regulatory environments required to support the digital economy through implementation of the Broadband Canada: Connecting Rural Canadians initiative and advancement of PIPEDA amendments and Electronic Commerce Protection Act legislation.

The Office of Consumer Affairs (OCA) will upgrade its online information and advice for consumers, including the transition to digital television broadcasting. OCA will also distribute information on this issue through local newspapers across the country.

Online information and advice for consumers was upgraded to include information on the Canadian Warranty Commitment Program for new vehicles, as well as a collection of useful resources on saving and investing and a new section addressing common consumer issues, such as returns, refunds, and warranties. Basic consumer information on the transition to digital television was disseminated through community newspapers.

The Competition Bureau^* will support the modernization of Canada’s competition laws for the benefit of consumers and businesses, implementing many of the recommendations of the Competition Policy Review Panel.

^*Note: Responsibility for this activity rests with the Strategic Policy Sector.

Proposed amendments to the Competition Act were adopted on March 12, 2009 through the Budget Implementation Act, 2009. All the amendments are now in effect except the cartel/competitor collaboration provisions that come into force on March 12, 2010.

Proposed amendments to the Notifiable Transactions Regulations under the Competition Act were pre-published for a 60-day comment period in Canada Gazette Part I on April 4, 2009, ensuring that those affected by the new regulations had the opportunity to provide feedback and that various perspectives have contributed to the development of extensive guidance on enforcement policy.

The final regulations were expected to come into force in December 2009.

The Bureau will work to increase its understanding of Canadian and global markets as it reviews mergers and acquisitions, and will challenge those few that would substantially lessen or prevent competition and clear rapidly those that would result in positive economic outcomes.

In July 2009, the Bureau reached a consent agreement with Suncor Energy Inc. and Petro-Canada, addressing its concerns that the merger would substantially lessen competition, which could have led to increased gasoline prices. The merger review was one of the most complex undertaken by the Bureau and was completed in less than four months.

In addition, between April and November 2009, the Bureau entered into four other consent agreements with merging parties, resolving competition concerns raised by proposed merger transactions in the pharmaceutical products, fertilizer products and solid hazardous waste disposal services industries. Several of these transactions required close cooperation with counterpart agencies. The communication and coordination with these agencies promoted efficient and effective reviews and resolutions.

The Bureau’s statistics demonstrate that over 90 percent of merger filings are cleared within 10 days.

The Bureau will target the increasing number of misleading and fraudulent performance claims affecting Canadians in the areas of health and the environment.

The Competition Bureau has taken enforcement action against advertisers making false or misleading environmental claims and, in June 2009, announced that seven consent agreements had been registered with the Competition Tribunal. The Bureau is also continuing to investigate allegations of online cures for cancer and other related health fraud. For example, the Bureau partnered with Health Canada to release a consumer warning in November 2009 regarding unauthorized products, including those with fraudulent claims, to treat or prevent the H1N1 flu virus.

The Bureau will continue to make advocacy in the health care sector a priority and will also focus on self-regulated professions and the Internet.

The Bureau continues to advocate for greater reliance on competition and less or smarter government intrusion into the marketplace.

Follow-up engagement has been initiated with the professions to evaluate the impact and the adoption of recommendations made in the 2007 study entitled Self-Regulated Professions: Balancing Competition and Regulation.

The Science and Innovation Sector (SIS) will continue to provide science policy advice and policy frameworks, including working with counterparts in other science-based departments and agencies, provinces and territories, and the regional development agencies to fulfill commitments made in the Science and Technology Strategy.

SIS completed the $1.7-million Science and Technology Memorandum of Understanding with Statistics Canada. It is also implementing the Knowledge Infrastructure Program, which provides $2 billion in funding to more than 500 projects across Canada.

In June 2009, Minister of State Goodyear released Mobilizing Science and Technology to Canada’s Advantage: Progress Report 2009. This report, developed by SIS, outlines advances that have been made toward the Science and Technology Strategy’s key objectives of developing entrepreneurial, knowledge and people advantages.

The Sector also improved the alignment of federal, provincial and territorial policies and programs through initiatives such as the Industry Canada–Ontario Ministry of Research and Innovation Expert Roundtable Discussion on University-Industry Partnership and the subsequent proposal for an Ontario Commercialization Agenda, as well as through a meeting between senior officials from the governments of Canada and Saskatchewan.

In addition, a draft report has been produced on a pilot project to explore opportunities to enhance coordination with the Government of Alberta on business-led innovation and technology commercialization.

With partners, such as the federal granting councils (the Natural Sciences and Engineering Research Council and the Social Sciences and Humanities Research Council), the Canada Foundation for Innovation and Genome Canada, SIS will work to improve the effectiveness of funding for higher-education research and to measure and maximize the impact of these investments.

SIS supported a review of the Framework for Tri-Council Programs to identify opportunities to optimize the governance and management of these programs as a suite of interrelated federal initiatives that will effectively support the government’s overarching science and technology objectives.

The Sector has also worked with the granting councils to determine the framework and design of the 10-year evaluation of the Canada Research Chairs program, which will measure the effectiveness of the government’s investments and identify ways in which impact of these investments can be maximized in the future.

SIS will work with National Research Council Canada (NRC) to maximize the effectiveness of NRC’s contribution to basic research undertaken for regulatory purposes, such as metrology and building codes, and NRC’s research and technical support to improve the competitiveness of Canadian industry.

SIS worked with the NRC to secure $200 million in Budget 2009 to help the Industrial Research Assistance Program improve the competitiveness of Canadian industry through contributions and assistance with post-secondary recruitment. The Sector also helped the NRC to secure $19 million in funding to modernize its laboratories as part of Budget 2009 and $4 million to remediate NRC contaminated sites.

SIS also supported the NRC’s efforts to achieve the implementation requirements set out in the NRC Strategic Review by updating the Council’s Program Activity Architecture, Long-Term Capital Plan and Intellectual Property Regime. The Sector also worked with the NRC to evaluate the Technology Clusters Portfolio in preparation for renewal decisions following the completion of current funding in March 2010. These renewal decisions will focus on supporting and growing Canadian business around an area of national expertise.

Communications Research Centre Canada (CRC) will continue to be part of a consortium creating a sustainable platform for the development of shared, ICT-based health services to support patient treatment planning and to help teams and individuals prepare for their work in operating rooms, emergency rooms and clinics, and at patients’ bedsides.

CRC is working with the members of the consortium to realize the Health Services Virtual Organization Network-Enabled Platforms. The work is progressing well, and the latest version was successfully demonstrated at the Cybera/CANARIE National Summit held in Banff between October 13 and 15, 2009. The next major milestone is February 2010 with the project slated to be completed by the end of August 2010.

In partnership with the Canadian Navy and allied partners, CRC will demonstrate in spring 2009 the new network management concepts it developed as part of its focus on improving military communications capabilities in challenging environments.

A proof-of-concept prototype of a network management system was successfully demonstrated. Technical discussions and planning are underway for further at-sea trials in 2010 at the U.S.-led multinational Trident Warrior Sea Trial.

Industry Sector will work with renewable and alternative energy stakeholders to examine advances in Canadian technology capabilities, identify commercialization and industrial development opportunities, and explore domestic and international partnerships for business development.

Industry Canada contributed to several key initiatives related to clean energy, including support for Canadian Renewable Energy and Distributed Generation projects under the Asia-Pacific Partnership initiative and leading the fulfillment of Canada’s obligations as Chair and Secretariat to the International Partnership for the Hydrogen Economy.

Science and Innovation Sector, Industry Sector and the Portfolio agencies will work together to ensure that the $145-million Automotive Research and Development Partnership Initiative is responsive to the research priorities and innovation needs of Canada’s automotive sector.

The Automotive Research and Development Partnership Initiative, subsequently renamed Automotive Partnership Canada, established a process for the selection, evaluation and approval of projects and, as of December 2009, had approved three projects and had 70 other proposals at various stages of development.

In addition to Automotive Partnership Canada, the Industry Sector continued to implement the Automotive Innovation Fund (AIF). This fund provides $250 million over five years to support strategic, large-scale research and development projects in the automotive sector to develop innovative, greener and more fuel-efficient vehicles. The total investment threshold that a company must invest in order to qualify for funds has been lowered from the initial $300 million over five years, to $75 million over the same time frame. The government recently announced that the AIF would provide up to $54.8 million to support the investment by a large manufacturer of auto components of up to $365 million, over five years, to develop and commercialize a wide range of powertrain components and modules that are expected to contribute to increases in durability, quality and fuel economy.

Industry Sector will encourage and promote the adoption and adaptation of new technologies and skills to business processes by working with the private sector to guide the development of several Technology Roadmaps.

The Soldier Systems Technology Roadmap, which seeks to engage industry and the research community leading Canada’s Soldier System modernization efforts, was launched in May 2009 and has directly involved more than 400 businesses and other stakeholders.

Industry Canada is also leading and/or participating in Technology Roadmaps to identify the technologies key to the competitiveness of the Canadian aerospace industry, and is co-funding a study with Natural Resources Canada to enable a Marine Renewable Energy Technology Roadmap.

Thematic reports being developed for the Sustainable Housing Technology Roadmap are progressing well, with the final report to be completed by the end of 2009–2010.

Industry Canada is also working with the textile industry to implement the Technology Roadmap for the Canadian Textile Industry. Industry engagement remains high and a steering committee and five working groups have been put in place to address the various elements of the Action Plan for this roadmap.

The Technology Action Plan: Advanced Vehicles for the Major Economies Forum on Energy and Climate has also been prepared. The final report was released in December 2009.

Industry Sector will conduct research and consultations into business opportunities and challenges related to nanotechnology research and development and commercialization, to support policy development.

Industry Canada continues to promote responsible adaptation and adoption of nanotechnologies in Canada, while trying to help facilitate the development and adoption of safe, reliable and internationally acceptable standards.

The Industrial Technologies Office, part of Science and Innovation Sector, will continue to manage the Strategic Aerospace and Defence Initiative (SADI), the legacy Technology Partnerships Canada program, and the Program for Strategic Industrial Projects.

Through SADI, more than $434 million has been committed to 13 innovative projects and an additional $814 million in R&D investments has been leveraged.

The Industrial Technologies Office has also continued to monitor and manage approximately $3.5 billion for the legacy Technology Partnerships Canada program.

Small Business and Marketplace Services Sector will continue to collaborate with provincial, territorial and local governments to accelerate expansion of BizPaL. New business sectors and content beyond permits and licences will be introduced to increase the value of BizPaL to Canadians.

BizPaL was made available in an additional 70 municipalities and one new province (Prince Edward Island) and now covers 52.6 percent of the Canadian population, an increase in coverage of 3.2 percent. In addition, more than 230 permits, licences and other requirements have been added to the BizPaL database by all jurisdictions.

BizPaL information is categorized according to the North American Industry Classification System, which includes 928 business sectors such as retail, manufacturing and natural resources. To date, information on 795 out of those 928 sectors are now available in BizPaL, an increase of 132 sectors or 19.9 percent from April 2009. As a result, more business clients can now find their industry sector when using BizPaL services.

Industry Sector will work with National Defence and Public Works and Government Services Canada to develop defence procurement strategies under the Industrial and Regional Benefits Policy framework, which is expected to help generate $500 million in business activity in 2009–2010.

Extensive work was conducted with National Defence and Public Works and Government Services Canada to develop frameworks for a number of new procurements, including the Medium and Heavy Lift Helicopters, MilCOTS truck, Baseline Shelters and mid-shore patrol vessels, as well as other minor procurements. These procurements have generated more than $1 billion in new business activity, in the form of early-stage Industrial and Regional Benefits transactions. Commitments for a significant volume of Industrial and Regional Benefits activity in future years have also been established during this process.

Through the Canadian Apparel and Textiles Industries Program (CATIP), Industry Sector will continue to support the apparel and textile industries’ efforts to become more competitive by working in partnership with industry organizations and providing support for projects related to best practices, marketing and innovation.

To date, CATIP has approved support for 870 projects. More than $68 million in assistance towards projects valued at more than $170 million has been authorized, and program funds have been fully committed in advance of the program’s closure on March 31, 2010. A summative evaluation has been completed, which found the program to be successful, efficiently managed and well-aligned with government priorities.

Industry Sector^* will carry out research, analysis and policy development, and work with other involved federal departments and agencies concerning issues that affect the growth and competitiveness of Canada’s tourism industry.

^*Note: The Small Business and Marketplace Services Sector is responsible for this item.

The Small Business and Marketplace Services Sector finalized the Federal Tourism Strategy Framework, which was announced by the Prime Minister in June 2009. To support the Framework, Industry Canada worked with 15 departments and agencies to develop the whole-of-government Federal Tourism Strategy (FTS) and engage other departments on initiatives in support of the FTS.

The Sector also worked closely with the Canadian Tourism Commission to prepare a comprehensive response to the Commission’s 2009 Strategic Review and facilitated Treasury Board approval of the Commission’s 2010–2014 Corporate Plan.

In addition, the Sector worked with Ontario officials to organize a meeting of the Canadian Council of Tourism Ministers on September 10, 2009 in Toronto. The meeting was co-chaired by Minister of State Ablonczy and the Ontario Tourism Minister.

Industry Sector will conduct research and consultations in support of federal policy development, on the implications of globalization on research, innovation and commercialization of nanotechnologies and related products, as well as health and industrial applications of biotechnology.

A successful Industry Canada-OECD workshop was held on economic and environmental sustainability indicators for bio-industrial products. The Task Force on Industrial Biotechnology Results and the Working Party on Biotechnology are following up on the results of this workshop.

The Department also worked with businesses, universities and other public and private sector organizations to share knowledge on nanotechnology commercialization challenges and help develop a sectoral cluster for this area, in order to improve inter- and intra-governmental understanding and policy development.

Industry Sector will analyze the efficiency and effectiveness of regulations for health industries to enhance the ability of firms to commercialize innovative products without undue delays or costs.

Industry Canada conducted in-depth industry impact analysis on key regulatory issues including orphan drugs, bio-similars, intellectual property reform, clinical research, regulatory approval country comparisons and industry-academic partnerships. This analysis has contributed to work on patents and life cycle regulation, among other areas. In addition, the Department facilitated consultations with the medical device industry on Environment Canada’s proposed mercury regulations and contracted for a revised report on Quality System Requirements for Medical Devices.

Industry Sector will contribute sector knowledge and reasoned policy advocacy efforts to ensure that domestic conditions remain competitive, and support federal programs to ensure that Canadian businesses benefit by engaging in global value chains.

Industry Canada provided research and input to support discussions with the United States on border issues and protectionism. The Department also undertook research into global supply chains and cluster development.

Industry Canada also conducted a study of the impacts of changing safety regimes on cross-border trade and the competitiveness of Canadian consumer product suppliers. The final study is scheduled for publication in early 2010.

The Department led a whole-of-government response to the Standing Committee on Industry, Science and Technology recommendations for sectors in crisis.

In addition, Industry Canada fully engaged the automotive industry and reviewed automakers’ restructuring plans in support of the Government of Canada’s negotiations with the industry and provincial counterparts. The Department also worked with the Business Development Bank of Canada and Export Development Canada to commit funds and develop programs for the automotive industry.

Regional Operations Sector will work with Infrastructure Canada to deliver a suite of infrastructure programs in the province of Ontario,^* including the Canada-Ontario Infrastructure Program, the Canada-Ontario Municipal Rural Infrastructure Fund, the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund top-up and the Building Canada Fund. These programs represent hundreds of millions of dollars in investment in key infrastructure projects across the country.

^*Note: Responsibility for delivering these programs has been transferred to FedDev Ontario.

The Canada-Ontario Infrastructure Program has funded 255 projects for a total of $281.18 million. Fifteen projects remain to be completed.

The Canada-Ontario Municipal Rural Infrastructure Fund is funding 708 projects: 280 projects from Intakes 1–3 (147 projects completed) and 428 asset management projects, for a total of $298.26 million.

The Municipal Rural Infrastructure Fund top-up has contribution agreements in place with 26 Ontario municipalities, totalling $40.58 million.

The Canada Strategic Infrastructure Fund is funding 10 capital projects (two projects completed) in Ontario, for a total of $257.48 million.

The Committee Component of the Building Canada Fund has fully executed 271 contribution agreements and signed 10 memoranda of understanding (MOUs) for Intake 1, and seven contribution agreements and 25 MOUs for Intake 2.

FedDev Ontario is also managing two projects on Infrastructure Canada’s behalf under the Major Infrastructure Component of the Building Canada Fund: the Ottawa Convention Centre and the Huron Elgin London Clean Water Project.

Regional Operations Sector will administer economic development programs such as the Ontario Potable Water Program,^* which makes funding assistance available to Ontario municipalities in support of potable water projects and changes to drinking water systems standards initiated through Ontario government acts and regulations to ensure drinking water safety.

^*Note: Responsibility for delivering this program has been transferred to FedDev Ontario.

In 2009–2010, the Ontario Potable Water Program has provided 11 grants for a total of $6.7 million in funding assistance to support potable water projects and changes to drinking water systems standards in Ontario municipalities.

Through FedNor, Regional Operations Sector will deliver the Community Futures Program^* by providing repayable financing for local small businesses, as well as business information and advisory services and support for the development and implementation of strategic community plans that support self-reliance and the capacity of communities to realize their full, sustainable socio-economic potential.

^*Note: Responsibility for delivering the southern portion of this program was transferred to FedDev Ontario as of August 13, 2009.

Up to August 12, 2009, FedNor provided $10.3 million in support of the 24 Community Futures Development Corporations (CFDCs) in Northern Ontario and $5 million in support of the 37 CFDCs in Southern Ontario.

As of August 12, 2009, FedDev Ontario provided $6.3 million, bringing the total contribution to $11.5 million in support of the 37 CFDCs in Southern Ontario. FedNor and FedDev Ontario have both implemented the CFDC Stimulus Action Plan to respond to the increase in loan requests from businesses normally serviced by conventional lenders. These measures have positioned the CFDCs to respond to the needs of their clients and increase lending activity by CFDCs.

The Canadian Secretariat for the Security and Prosperity Partnership will continue to support the Minister of Industry as lead minister for Canada and as Canadian lead on the Prosperity Agenda, which is focused on promoting growth, competitiveness and quality of life in North America. The Secretariat will provide advice and contribute to preparations for the 2009 North American Leaders’ Summit in Mexico.

Industry Canada assisted in preparations for Canadian participation in the August 2009 North American Leaders’ Summit, held in Guadalajara, Mexico and supported the Department’s preparations for various other international meetings and summits, including the G8 and G20, which had an impact on North American issues. In addition, Industry Canada provided advice to the Minister on a range of international business issues and developments.

Industry Canada will continue its leadership role in managing the Research Fund on North American Borders, Security and Prosperity, which is working to improve the current understanding of the impact of border measures on Canadian competitiveness.

In 2009–2010, this interdepartmental research initiative funded six projects examining impacts of the Canada–United States border on Canada’s competitiveness in various industry sectors. A workshop was held in October 2009 bringing together more than 50 researchers, officials and border stakeholders to review preliminary findings and discuss implications for public policy.