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Industry Canada Performance Report
For the period ending March 31, 2007

Section 1: Overview of the Department

1.1 Minister's Message

I am pleased to present Industry Canada's Departmental Performance Report for 2006-07.

My goal as Minister of Industry, and one of the top priorities of Canada's New Government, is to ensure we maintain a strong economic environment – one that allows Canadians to prosper in the global economy. We are seeing great changes in the international marketplace. New trade agreements, rapidly advancing technologies and the emergence of developing countries are all contributing to today's business environment. Canada needs to keep pace.

Part of my mandate is to help make Canadians more productive and competitive. We want our industries to continue to thrive and all Canadians to continue to enjoy one of the highest standards of living in the world.

For this to happen, the government is committed to maintaining a fair, efficient and competitive marketplace – one that encourages investment, sets the stage for greater productivity, and facilitates innovation. We are relying on market forces to a greater extent, regulating only when it is absolutely necessary. Our policies have helped turn research into new products and business processes. In addition, we are making efforts to increase awareness of sustainability practices among Canadian industry, emphasizing the social, environmental and economic benefits they bring.

The Department and the Industry Portfolio have made progress on a wide range of issues this past year, most notably in the areas of telecommunications, science and practical research, manufacturing, small business, consumer protection, patents and copyrights, tourism and economic development.

The Industry Portfolio is composed of Industry Canada and 10 other agencies, Crown corporations and quasi-judicial bodies. These organizations collectively advance Canada's industrial, scientific and economic development, and help ensure that we remain competitive in the global marketplace.

The Department has actively pursued its goals throughout this year, and we have seen significant progress on a number of fronts:

• We have taken steps to modernize marketplace frameworks. In the telecommunications industry, for example, we have decreased regulation and are relying on market forces to a much greater extent. We are reviewing and updating our intellectual property regime. And, in close collaboration with our provincial partners, we are contributing to an ambitious Internal Trade Agreement on labour mobility.
  
• We worked with Finance Canada to develop a new Science and Technology Strategy. This strategy is designed to create a business environment that encourages the private sector to innovate and that guides strategic investment of public funds.
  
• Our efforts to support the generation and commercialization of knowledge were highlighted through new initiatives in manufacturing, government procurement, sustainable development, renewable energy, nanotechnology and biotechnology. In addition, we announced continuing support for the operation and development of CANARIE Inc.'s advanced research network through a $120-million, five-year grant.
  
• We have pursued several initiatives to help businesses remain competitive and assist Canadians acquire the skills that are highly valued by growing, innovative companies. We are investing in information and communications technology projects and, through BizPaL initiatives, are reducing paperwork and regulatory red tape for Canadian business.
  
• Sustainable development is an essential part of today's economy, and we are working with Canadians to increase awareness of corporate social responsibility and sustainability practices among Canadian industry, institutions and communities.
  

We have accomplished much this year. Using Advantage Canada – the government's long-term economic plan – as our roadmap, we have made great strides toward many of our most important goals. We will continue to focus on these goals to support the conditions for a strong economy – an environment that Canadians expect and deserve.

Jim Prentice
Minister of Industry

1.2 Management Representation Statement

I submit, for tabling in Parliament, the 2006-07 Departmental Performance Report (DPR) for Industry Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006-07 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
• It is based on the Department's approved strategic outcomes and Program Activity Architecture that were approved by the Treasury Board;
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.
  

______________________________
Richard Dicerni
Deputy Minister

______________________________
Date

1.3 Summary Information

Industry Canada's Mandate

Industry Canada draws its legislative mandate from the Department of Industry Act, which states that the Department's general mandate focuses on many areas of the Canadian economy, including industry and technology, trade and commerce, telecommunications, science, consumer affairs, competition, bankruptcy and insolvency, patents, trademarks, copyrights, integrated circuit topographies and industrial designs, investment, small businesses, tourism, and regional economic development in Ontario.

The Department's objective is to help make Canadians more productive and competitive in the global economy, thus improving the standard of living and quality of life in Canada. Through the policies, programs and services that it develops, implements and delivers, Industry Canada is helping to create a dynamic and innovative economy that does the following:

• provides more and better-paying jobs for Canadians;
• supports stronger economic growth through continued improvements in productivity and innovation performance;
• gives businesses, consumers and investors confidence that the marketplace is fair, efficient and competitive; and
• integrates the economic, environmental and social interests of Canadians.
  

For more information on Industry Canada's work, visit Industry Canada's website.

Industry Canada's Strategic Outcomes

Industry Canada works to foster growth and create high-quality, well-paying jobs by working toward three strategic outcomes:

Table 1.0: Industry Canada's Strategic Outcomes

Strategic Outcome	Description
A fair, efficient and competitive marketplace	A marketplace that protects the interests of businesses and consumers, imposes minimal regulatory burden, and fosters fair competition
An innovative economy	An economy that ensures its global competitiveness by supporting the creation of knowledge and the effective translation of this knowledge into new products and processes
Competitive industry and sustainable communities	A Canadian industry that can compete globally for resources and customers, and Canadian communities that use their resources to ensure the success of their citizens without undermining the ability of future generations to meet their own needs

Industry Canada's Governance Structure

The Minister of Industry is responsible for carrying out Industry Canada's mandate. Through the agencies, sectors, branches and directorates, as well as the Industry Portfolio, the Minister of Industry has jurisdiction over policy issues regarding industry; trade and commerce; science; consumer affairs; corporations and corporate securities; competition and restraint of trade, including mergers and monopolies; bankruptcy and insolvency; intellectual property; telecommunications; investment; small businesses; and regional economic development across Canada.

The Deputy Minister and Senior Associate Deputy Minister are accountable for the stewardship of Industry Canada. They provide strategic direction and sound management so that the Department effectively contributes to achieving the government's priorities, and that its wide range of activities is well coordinated and produces concrete results.

From an operational point of view, Industry Canada's governance structure is functionally expressed through its committee structure. This structure exists within Industry Canada at both the working and senior management levels, and the committees provide oversight and decision-making authority in a number of areas, including policy, procurement and contracting.

More specifically, Industry Canada has a number of senior management committees that work to support senior executives and, ultimately, the Minister. These committees enable the development and delivery of policies and programs, and oversee the management of the complex departmental machinery. The committee structure is traditional in nature – divided among operations (Management Committee), policy (Senior Policy Committee) and independent oversight (Audit and Evaluation Committee). These three committees in turn provide advice to the Executive Committee, which supports the Deputy Minister and the Senior Associate Deputy Minister in fulfilling their management responsibilities for the Department. This structure provides strategic direction and oversight, which facilitate the achievement of the Department's three strategic outcomes.

Operating Context of Industry Canada in 2006-07

In 2006-07, the Canadian economy remained strong, despite continuing appreciation of the Canadian dollar, higher energy costs and increasing competition from emerging economies. The global environment was characterized by blurring borders, interconnected supply chains, and highly mobile capital in search of the best returns. In this context, Canada needed to ensure that the necessary frameworks were in place to support a competitive advantage among Canadian firms.

Among the five priorities that were included in Budget 2006, a commitment was made to create new opportunities for Canadians by lowering taxes, rewarding effort and making Canada a better place to do business. Budget 2006 also announced that the government would develop a broad-based agenda to promote a more competitive, productive Canada; that the Minister of Industry, in conjunction with the Minister of Finance, would develop a science and technology strategy; and that the government would study options for reducing paperwork burden on small business.

As such, in November 2006, the Minister of Finance released Advantage Canada: Building a Strong Economy for Canadians. This economic plan reiterated the commitment to a federal science and technology strategy, announced a new commitment to support the removal of barriers to labour mobility across Canada, increased support for research excellence and better alignment between post-secondary research capacity and the needs of business, and called for a 20-percent reduction in paper burden on Canadian business. Overall, these conditions created a dynamic operating context for Industry Canada.

Industry Canada's Financial and Human Resources

Table 1.1: Financial Resources (Millions of Dollars)

Planned Spending	Total Authorities	Actual Spending
$1,357.7	$1,389.0	$1,189.7

 

Table 1.2: Human Resources (Full-Time Equivalents)

Planned	Actual	Difference
6,104	5,521	583

1.4 Strengthening Management Practices at Industry Canada

In 2006-07, Industry Canada continued its commitment to strengthening departmental management practices and used the Management Accountability Framework (MAF) as a tool to advance its management priorities. The MAF is structured around 10 key elements that collectively define management and establish the expectations for good management of a department or agency. Departments and agencies are annually assessed on the effectiveness of their management practices through the MAF assessment process.

As a result of the latest MAF assessment cycle performed by Treasury Board of Canada Secretariat (TBS), Industry Canada has, overall, improved its rating compared with the previous year's assessment. Furthermore, TBS has also noted that the Department has made progress on all areas identified as management priorities for 2006-07. Industry Canada will continue to use the information contained in the MAF assessment, including the management priorities identified for 2006-07 to further strengthen its management practices.

Following is a more detailed account of the progress Industry Canada has made regarding its management priorities.

Implementing the Federal Accountability Act

The Federal Accountability Act (FedAA), which received royal assent on December 12, 2006, reflects the Government of Canada's commitment to make government more accountable. Industry Canada has been working with the Treasury Board Portfolio and other departments and agencies to ensure that the measures related to the FedAA and the FedAA Action Plan are in place. The Department's progress within the past year includes the following:

• the appointment of a Senior Officer for Internal Disclosure of Wrongdoing and the continuance of the Advisory Committee on Internal Disclosure; and
• the review of the Department's funding agreements in order to meet the new requirements under the FedAA, and the review of the Department's practices concerning public opinion research, lobbyists' registration, accounting officer requirements and communications plans.
  

In addition, Industry Canada's Internal Audit Committee continued to ensure that the Department's internal audit capacity is appropriate for its needs and that the Department is in a position to effectively conduct its program evaluation every five years, as required by the FedAA.

With respect to values and ethics, Industry Canada continues to undertake initiatives supporting a values and ethics culture and informing employees of their responsibilities. These initiatives include providing training on the Values and Ethics Code for the Public Service; since November 2004, the Department has provided more than 80 sessions and has reached a total of 1,600 Industry Canada employees. In addition, the Department has begun implementation of the Public Servants Disclosure Protection Act (PSDPA), as prescribed by the FedAA.

Integrating Human Resources and Business Planning

In April 2006, Industry Canada completed its first round of integrated human resources planning. As a result, nearly all departmental organizations submitted a one-year staffing plan. Some organizations went further, submitting a two- or three-year strategic human resources plan embedded in their business plan. Overall, Industry Canada managers have made progress toward fully integrating human resources, financial and business planning. For instance, the use of collective staffing processes to manage pools of talent for staffing efficiency and employee retention, development and succession management purposes has increased. As indicated in the 2006-07 Report on Plans and Priorities (RPP), one of the key challenges associated with implementing a formal human resources planning process at Industry Canada has been to ensure the integrity of the data provided to managers in support of their planning efforts. In response, the Department has taken steps to address data integrity issues that currently limit the timeliness and reliability of Human Resources Management System-based reporting. For instance, a project office within the Human Resources Operations Directorate was established to coordinate and collaborate with another internal data collection team to address data integrity issues (i.e., incomplete, incorrect or timeliness of the data entry). A steering committee composed of human resources directors was also established to provide direction and oversight of data integrity activities.

In addition, new integrated human resources planning tools were developed in November 2006. This comprehensive tool kit included planning aids, templates and guidelines to enable integrated planning for staffing, official languages, employment equity, learning and succession management.

Modernizing Staffing Initiatives

In order to meet the training needs of its staffing community, in 2006-07 Industry Canada created a development program for staffing advisors that included a training component for the advisors themselves as well as staffing assistants. As in the past, training continued to be provided to staffing managers. During 2006-07, Industry Canada also developed and implemented a framework to monitor staffing. Quarterly monitoring of staffing activities, both qualitative and quantitative, was completed and, along with issues of concern and trends, was reported to senior management. Policies, guidelines, sub-delegation and accountability requirements connected with the review of the staffing framework were also reviewed and modified as necessary during this period either to comply with new requirements of the Public Service Commission of Canada or to better meet the Department's needs.

Industry Canada also plans to further modernize its staffing initiatives. In 2007-08, the Department expects to have customized products to meet the information needs of employees and training needs of managers, human resources professionals and human resources assistants, and to fully implement those products (i.e., deliver training sessions) during 2008-09. In addition, to enhance its modernization efforts, in 2007-08 and 2008-09 the Department will continue to send human resources professionals to various training courses offered by the Canada School of Public Service.

Providing Tools and Guidance Through the Conflict Prevention and Early Resolution Office

The Conflict Prevention and Early Resolution (CPER) Office was established in 2005. Since then, Industry Canada has continued to benefit from the delivery of conflict management workshops and the provision of services in conflict management (conflict coaching, facilitation and mediation). The CPER Office has also created a CPER Network, consisting of bargaining agents, managers and human resources professionals who have participated in training workshops to acquire basic conflict coaching skills that assist them in more effectively dealing with workplace conflict.

During 2006-07, CPER provided services to 54 clients (from all sectors); the majority of services (56) have been in conflict coaching. In addition, 8 conflict management workshops were provided across the Department. The CPER Office will be moving forward on a number of projects to increase awareness and capacity in conflict management across the Department, including training and communication. Progress will be measured through the evaluation components of these projects.

Ensuring a Strong Stewardship Framework Is in Place

Industry Canada has continued to ensure that a strong stewardship framework is in place and adhered to by developing and upgrading resource management tools and techniques, and by strengthened management practices regarding information technology management. Furthermore, to enhance management reporting and decision support throughout the Department and to enable more effective horizontal management and reallocation decisions to fund departmental priorities, new corporate management reports have been developed. As well, Industry Canada has deployed a Salary Resource Management System across the Department along with validated departmental salary information to accurately forecast salary requirements and to facilitate fiscally informed executive-level decision making.

The Department has also developed a Management Control Framework to improve oversight of the accounts verifications process. As well, weaknesses in internal controls have been identified and remediated, along with a new functional reporting regime that has been launched across the Department.

Regarding project management, Industry Canada has implemented an Early Warning System for Contracts. For instance, sole source contracts greater than $25,000 must be reviewed by the Programs and Services Board, and sign-off is required by the Department's Chief Financial Officer on competitive processes. In addition, Industry Canada has also advanced work on developing an Integrated Risk Management Framework and on identifying the next steps to conduct associated risk management activities.

1.5 Overall Departmental Performance

Linking Industry Canada's Report on Plans and Priorities (RPP) to its Departmental Performance Report (DPR)

In an effort to improve reporting to Parliament, Industry Canada has sought ways to enhance the timeliness and quality of its reports, strengthening the link between departmental plans and priorities versus performance. The Department has streamlined information, consolidated sections and added new areas to ensure readers can easily follow the Department's performance story. These efforts reflect Industry Canada's recognition of the importance of an effective parliamentary reporting regime for transparency and accountability. Current and future efforts made by the Department to improve reporting to Parliament focus on researching and developing options to improve the usability and accessibility of reports required by parliamentarians.

In order to help parliamentarians and Canadians navigate between the performance information in this document and the plans and priorities in the 2006-07 RPP, notable changes are listed in the Appendix.

Industry Canada's Program Activity Architecture Structure

Industry Canada's basis for reporting to Parliament is its Program Activity Architecture (PAA). The PAA describes the relationship between the activities the Department undertakes and the strategic outcomes it is working to achieve, in order to produce results for Canadians. In addition, the PAA also provides the Department with a framework that links the expected results and performance measures to individual program activities, clarifying why the Department is doing what it does and how it will measure that results are achieved. Finally, the PAA also serves as a framework to link the Department's financial resources to each program activity, indicating how the Department manages the resources under its control to achieve its intended outcomes.

Industry Canada is working to achieve three strategic outcomes: a fair, efficient and competitive marketplace; an innovative economy; and competitive industry and sustainable communities. Each of these strategic outcomes is supported by one or more program activities in the PAA. In most cases, each program activity is in turn associated with one or more sub-program activities or sub-sub-program activities. Information on results for the Department is reported based on these program, sub-program and sub-sub-program activities.

Table 1.3 shows a graphic representation of Industry Canada's PAA, used as the basis for reporting in this document. Please note that this graphic does not include departmental corporate services, as these are enabling activities and therefore are not reported on in the DPR.

Enlarge image

Results of Industry Canada's Priorities

In its 2006-07 RPP, Industry Canada identified five departmental priorities for fostering a more productive Canadian economy that rewards the efforts of individuals and businesses, supports creativity and innovation, and increases trade and investment. In meeting these priorities the Minister clarified the Department's intention to rely, as much as possible, on a free, efficient and competitive marketplace. In this way, the market was able to provide the signals that guided the Department in making the decisions that enhanced competitiveness.

Table 1.4 lists Industry Canada's five priorities and groups them according to the strategic outcome they support. Table 1.4 also indicates whether the priority was new, previous or ongoing and outlines supporting program activities. Allocated financial and human resources are also provided.

In previous years, this section of the document contained indicators that measured progress against Industry Canada's priorities and strategic outcomes. To view these indicators, visit Section 5.2.

Table 1.4: Departmental Priorities

Departmental Priority	Supported by Program Activity	Type of Priority1	Performance Status2	Planned Spending and Full-Time Equivalents (FTEs)	Actual Spending and FTEs
A Fair, Efficient and Competitive Marketplace
1.   Continuing to modernize marketplace frameworks in support of a highly competitive and innovative economy for the benefit of all Canadians	Policy Sector – Marketplace Operations Sector – Marketplace Spectrum, Information Technologies and Telecommunications (SITT) Sector – Marketplace Office of Consumer Affairs – Marketplace Competition Bureau – Marketplace Canadian Intellectual Property Office – Marketplace	Ongoing and previous	Successfully met	$201.9 million 3,208 FTEs	$179.3 million 2,990 FTEs
An Innovative Economy
2.   Ensuring the strategic allocation of resources 3.   Supporting the generation and commercialization of knowledge	Policy Sector – Science and Technology (S&T) and Innovation Industry Sector – S&T and Innovation SITT Sector – S&T and Innovation Communications Research Centre Canada – S&T and Innovation Technology Partnerships Canada	Ongoing and previous	Successfully met	$622.7 million 732 FTEs	$500.1 million 701 FTEs
Competitive Industry and Sustainable Communities
4.   Implementing strategic frameworks for priority industrial sectors that have an important impact on the Canadian economy 5.   Working with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development	Policy Sector – Economic Development Operations Sector – Economic Development Industry Sector – Economic Development SITT Sector – Economic Development	Ongoing and previous	Successfully met	$532.3 million 961 FTEs	$510.3 million 804 FTEs

¹ Type of priority is "new," "ongoing" or "previous." "New" means that the priority was introduced during this performance period. "Ongoing" means the priority has no end date. "Previous" means that the priority was reported in a prior RPP or DPR.
² Performance status is "successfully met," "not met" or "exceeded."

Industry Canada's Priorities

Priority No. 1: Continuing to modernize marketplace frameworks in support of a highly competitive and innovative economy for the benefit of all Canadians

Industry Canada is committed to steadily decreasing regulation, promoting reliance on market forces and reducing barriers to entry in the telecommunications sector. In particular, during 2006-07, Industry Canada pursued an ambitious policy agenda to establish a streamlined regulatory framework for Canada's telecommunications sector, one that is more modern, flexible and efficient. The new policy agenda and subsequent deregulation of local telephone services should contribute to a more competitive Canadian telecommunications market, resulting in more choices, improved products and services and lower prices for consumers.

Other activities undertaken by Industry Canada in 2006-07 include bringing forward legislation that provides intellectual property rights protection for Olympic and Paralympic words and symbols. The legislation strengthens the exclusive rights of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC™) over key Olympic and Paralympic words and symbols. This enhances VANOC's ability to raise the necessary funds to host a successful Games and showcase Canada to the world. The Olympic and Paralympic Marks Act came into force on June 22, 2007. In addition, Industry Canada brought forward amendments to the Patented Medicines (Notice of Compliance) Regulations under the Patent Act. These amendments, which came into force on October 5, 2006, make it easier for generic drug companies to predict when they may enter the market with a lower-cost version of an innovative, patented drug, thereby accelerating the market entry of generic drugs once relevant patents expire.

In addition, in 2006-07 the Minister of Industry met with provincial and territorial counterparts to discuss ways to strengthen the country's economic union. As a result of this meeting, a significant labour mobility agreement was reached that will be fully in effect by 2009.

In 2006-07, Industry Canada also worked through the Advisory Committee on Paperwork Burden Reduction to reduce the administrative and paper burden on small businesses. This work culminated in a commitment by the government, announced in Budget 2007, for key federal regulatory departments and agencies to establish an inventory of administrative requirements and information obligations with which business must comply, and to achieve a 20-percent reduction by November 2008.

Finally, Industry Canada was instrumental in Justice Canada's development of Bill C-26, An Act to amend the Criminal Code (criminal interest rate), which received royal assent on May 3, 2007. The objective of this Act is to ensure that provinces and territories have the opportunity to establish appropriate protections for consumers who use payday loans. The Act is the result of extensive discussions with provincial and territorial governments and with other federal departments, and it reflects Industry Canada's commitment to enhancing consumer protection within the marketplace frameworks.

Overall, these activities enhanced the Department's ability to contribute to the strategic outcome of a fair, efficient and competitive marketplace. See Section 2: Analysis of Program Activities by Strategic Outcome for more detail.

Priority No. 2: Ensuring the strategic allocation of resources

Adequate funding for research and innovation projects is a key driver of an innovative economy. In 2006-07, Industry Canada worked with Finance Canada to develop the Science and Technology (S&T) Strategy – Mobilizing Science and Technology to Canada's Advantage. The Strategy builds on Canada's strong economic foundation, takes advantage of existing research capacity and ensures that federal investments in S&T make a meaningful difference to improve the wealth and well-being of Canadians. The Strategy also reflects the importance of S&T to the Government of Canada and provides a framework to guide federal government decision making in support of S&T over the coming years.

The Strategy sets out three key advantages distinct to S&T: an Entrepreneurial Advantage to translate knowledge into commercial applications that generate wealth for Canadians; a Knowledge Advantage to position Canada as a leader in generating new ideas and innovations; and a People Advantage to make Canada a magnet for highly skilled people and create an economy with the most highly educated, skilled and flexible workforce in the world. In addition, the government signalled its commitment to the Strategy by announcing $1.9 billion in Budget 2007 to support S&T initiatives. Industry Canada's ability to ensure the strategic allocation of resources on an ongoing basis demonstrates its contribution toward the strategic outcome of an innovative economy. See Section 2: Analysis of Program Activities by Strategic Outcome for more detail.

Priority No. 3: Supporting the generation and commercialization of knowledge

For Canada to live up to its innovation potential, it must continue to support the creation of knowledge, as well as support the transfer of scientific and technological advances made possible by university and government research in the private sector. In 2006-07, Industry Canada supported this priority by providing leadership, working with other government departments and undertaking new initiatives in the following diverse areas: manufacturing, government procurement, sustainable development, renewable energy, nanotechnology and biotechnology.

Furthermore, due to the work of Industry Canada in 2006-07, Budget 2007 announced continued support for the operation and development of CANARIE's advanced research network. Through a $120-million, five-year conditional grant to the not-for-profit corporation CANARIE Inc., researchers in Canadian universities, colleges, research institutes and government laboratories have the capacity to conduct collaborative research on a global basis in all fields of science that benefit Canadians. Industry Canada's ability to support the generation and commercialization of knowledge in an ongoing capacity demonstrates its contribution to the strategic outcome of an innovative economy. See Section 2: Analysis of Program Activities by Strategic Outcome for more detail.

Priority No. 4: Implementing strategic frameworks for priority industrial sectors that have an important impact on the Canadian economy

Industry Canada has pursued a variety of initiatives to help businesses remain competitive and ensure that Canadians acquire the skills that are highly valued by growing, innovative companies. In 2006-07, Industry Canada applied its expertise in the Canadian business landscape to enhance government decision making and industry development activities, and to help create conditions in which Canada can exploit its knowledge. For instance, Industry Canada provided leadership on a broad range of issues that affect the manufacturing sector; it also worked with stakeholders to address policy issues raised by the Canadian Manufacturing Coalition and other industry experts. The Department also led a manufacturing network to strengthen the government's capacity to analyze, review and improve public policy issues that affect Canada's manufacturing sector.

Furthermore, in 2006-07 Industry Canada helped coordinate and oversee federal government initiatives domestically and internationally in several sectors, such as the hydrogen and fuel cell sector, with an overall objective of achieving full-scale commercialization and increasing the exposure of Canadian businesses. Overall, Industry Canada's ability to meet this priority in an ongoing capacity demonstrates its progress toward contributing to competitive industry and sustainable communities. See Section 2: Analysis of Program Activities by Strategic Outcome for more detail.

Priority No. 5: Working with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development

Sustainable development, along with productivity, employment and income growth, is an integral part of growing a dynamic economy. As a proponent of sustainable development, Industry Canada has made efforts to increase awareness of corporate social responsibility (CSR) and sustainability practices among Canadian industry, institutions and communities.

In 2006-07, Industry Canada, through the activities of FedNor, continued to work with partners to help create an environment in which communities can thrive, businesses can grow and people can prosper. FedNor committed almost $6.5 million in 2006-07 to information communications technology (ICT) projects to ensure Northern Ontario's effective participation in the knowledge-based economy. In turn, these funds contributed to improved connectivity in Northern Ontario's rural communities and to the development of applications such as distance education, telehealth, e-business and web portals.

In addition, Industry Canada's BizPaL project supports the Government of Canada's objectives to reduce unnecessary paperwork and regulatory red tape, thereby working to maintain the competitiveness of Canadian businesses. The project has received various prestigious awards and has been recognized as a model of inter-jurisdictional cooperation and regulatory transformation. Budget 2006 provided $6 million over two years to accelerate the expansion of the BizPaL initiative.

Finally, in 2006-07 Industry Canada worked to broaden CSR awareness by improving the adoption of innovative sustainability tools and practices within Canadian industries. These practices help firms be more responsive to the social, environmental and economic needs of the communities in which they operate, assisting firms reduce risks while enhancing their brand value, reputation and bottom-line performance, thus maintaining or improving their competitiveness.

Industry Canada's ability to build capacity in key industrial sectors in an ongoing manner demonstrates its progress toward contributing to competitive industry and sustainable communities. See Section 2: Analysis of Program Activities by Strategic Outcome for more detail.

Table 1.5: Alignment to Government of Canada Outcomes

Industry Canada Program Activities	Industry Canada Strategic Outcomes	Alignment to Government of Canada Outcome Area
Policy Sector – Marketplace Operations Sector – Marketplace Spectrum, Information Technologies and Telecommunications (SITT) Sector – Marketplace Office of Consumer Affairs Competition Bureau Canadian Intellectual Property Office	A fair, efficient and competitive marketplace	Economic affairs: a fair and secure marketplace
Policy Sector – S&T and Innovation Industry Sector – S&T and Innovation SITT Sector – S&T and Innovation Communications Research Centre Canada Technology Partnerships Canada	An innovative economy	Economic affairs: an innovative and knowledge-based economy
Policy Sector – Economic Development Operations Sector – Economic Development Industry Sector – Economic Development SITT Sector – Economic Development	Competitive industry and sustainable communities	Economic affairs: strong economic growth

As illustrated in Table 1.5, Industry Canada's program activities and strategic outcomes contribute to three of the Government of Canada's outcome areas under the spending area of economic affairs. Specific Industry Canada activities that contribute to these three Government of Canada outcome areas are detailed below.

Government of Canada Outcome: Economic Affairs – A Fair and Secure Marketplace

Program activities under Industry Canada's first strategic outcome support this Government of Canada outcome by:

• ensuring that effective and modern regulatory instruments are in place;
• managing public goods (i.e., radio frequency spectrum) in the public interest;
• maintaining reliable telecommunications networks and keeping them safe from criminal activity;
• informing consumers and businesses about fraudulent activities in the marketplace;
• promoting the efficient allocation of resources to encourage research;
• developing and commercializing new knowledge; and
• maintaining a modern intellectual property regime that encourages creativity and innovation.
  

Government of Canada Outcome: Economic Affairs – An Innovative and Knowledge-Based Economy

Program activities under Industry Canada's second strategic outcome support this Government of Canada outcome by:

• undertaking research and development on technologies of importance to Canada;
• providing funding support for research and development in areas where Industry Canada cannot conduct the research itself;
• maintaining a knowledge of the Canadian business landscape and the commercialization environment and identifying future market opportunities; and
• encouraging sustainable development practices among Canadian businesses.
  

Government of Canada Outcome: Economic Affairs – Strong Economic Growth

Program activities under Industry Canada's third strategic outcome support this Government of Canada outcome by:

• assessing investment proposals to ensure that they demonstrate a net benefit to Canada;
• developing legislation that removes restrictions on the movement of goods, services, persons and investments within Canada;
• working with other federal partners to improve Canada's access to foreign markets; and
• providing funding to communities and specific target groups, including youth, women and small businesses, to ensure that they have access to the necessary resources to thrive and prosper.

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