ARCHIVED - National Defence

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

Minister’s Message

As Minister of National Defence, I am pleased to present to Parliament the 2007-2008 Departmental Performance Report. This document provides a comprehensive overview of Defence activities and expenditures during fiscal year 2007-2008.

While this period has been busy and challenging for National Defence, it has also been characterized by growth and renewal. Thousands of Canadians volunteered to join the Canadian Forces, vital new equipment such as tanks and strategic-lift aircraft was delivered, Parliament extended the mandate for the Afghanistan mission, and the Government made critical commitments to boost Canada's capabilities in the North and to provide stable and predictable funding for National Defence in the long term.

We know that this growth must be managed effectively and accountably. Canadians expect the Department of National Defence and the Canadian Forces to exercise prudent resource management while achieving their objectives. That is why National Defence has been working to improve its reporting on how its resource allocations are designed to achieve the desired results, based on an easily understood and well-structured inventory of Defence activities. As of fiscal year 2007-2008, spending is being reported at a more detailed level of activity, providing a more in depth breakdown of how Defence works to achieve its three strategic outcomes:

• Giving Canadians confidence that the Department of National Defence and the Canadian Forces have the relevant and credible capacity to meet defence and security commitments;
• Achieving success in assigned missions in contributing to domestic and international peace, security and stability; and
• Promoting good governance, Canadian identity and influence in a global community.

There is no more important role for National Defence than protecting Canadians from threats emerging from an increasingly complex security environment. Working with federal, provincial, and local partners, Defence helped to protect Canadians through search and rescue operations, the provision of assistance to law enforcement agencies, and support during natural disasters. The Canadian Forces also continued to foster Canada's presence in the Arctic, including through long-range air patrols, Canadian Ranger operations, and exercises to improve emergency management capacity in the region. Our activities in the North were bolstered by the Government's announcements in the summer of 2007 that it would purchase new Arctic offshore patrol ships, and build a training centre in Resolute and a berthing and refuelling facility in Nanisivik, Nunavut. Meanwhile, Defence continued to enhance the close and mutually beneficial partnership with the United States in meeting challenges to continental security, including through NORAD.

The mission in Afghanistan remained the focus of Defence activities abroad in 2007-2008. Over the course of the year, approximately 7,000 CF personnel - both Regular and Reserve - deployed to Afghanistan as part of Canada's whole-of-government contribution to the international effort to bring peace and stability to that country. Through the work of the Provincial Reconstruction Team in Kandahar, the Operational Mentoring and Liaison Teams that trained the Afghan National Army and Afghan National Police, and the Strategic Advisory Team in Kabul, the CF contributed to the development of Afghanistan's capacity to defend its sovereignty and its people. It is a complex and challenging mission, and we must not forget that thirty-six Canadian soldiers gave their lives last year while working to achieve these goals.

Clearly, much work remains to be done. The Independent Panel on Canada's Future Role in Afghanistan highlighted the need for more troops on the ground, and the right equipment for the mission, including medium-lift helicopters and unmanned aerial vehicles (UAVs). We have made progress in all of these areas. Parliament has agreed to extend the mission in Kandahar until 2011, our NATO allies have met our request for additional troops in southern Afghanistan, and the Government has entered into negotiations to acquire UAVs and CH-47 Chinook helicopters as soon as possible. Looking ahead, National Defence will continue to transform its role in Afghanistan and work closely with other government departments and agencies to achieve Canada's priorities and goals for the 2008-2011 period, which include security, humanitarian aid, institution-building, and reconciliation.

Defence also continued to support the Government in developing and implementing the Canada First Defence Strategy. Building on the Government's investments in the military over the past two years, the Strategy provides a detailed road map to modernize and grow the Canadian Forces, as well as a strategic vision for the Forces' operations. Supported by predictable, long-term funding, the 20-year plan provides balanced investments across the four pillars upon which military capabilities are built - personnel, equipment, readiness and infrastructure. The Strategy not only represents a firm commitment to rebuild the Forces into a first-class, modern military able to provide enhanced security for Canadians, but also delivers significant economic benefits for citizens across the country. Indeed, the commitment to long-term funding provides Canadian industry the opportunity to more effectively meet defence procurement requirements and to reach for global excellence.

To protect our country, the Canadian Forces rely on the dedication and commitment of all members of the Defence team - both military and civilian. I am proud to lead this vital institution. I look forward to continuing my work with Canadians and Parliamentarians to further strengthen the Forces by providing unwavering support to our courageous men and women in uniform.

 

The original version was signed by:

The Honourable Peter G. MacKay, PC, MP
Minister of National Defence

 

Management Representation Statement

I submit for tabling in Parliament, the 2007-2008 Departmental Performance Report (DPR) for the Department of National Defence.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 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 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 National Defence; and
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

 

The original version was signed by:

Robert Fonberg
Deputy Minister

 

Section I: Summary Information

Raison D’être

The Defence Mission

The organizations of the Defence[1] portfolio (including but not limited to the Canadian Forces (CF)) have a mission to defend Canada and Canadian interests and values while contributing to international peace and security.

Under Canadian defence policy, the CF has three roles:

• protect Canadians at home;
• defend North America in cooperation with the United States; and
• defend Canadian interests abroad.

The Defence Portfolio

The Defence Portfolio is composed of the Department of National Defence (DND) and the CF. The CF is composed of environmental commands (Maritime Command, Land Forces Command, Air Command), operational commands (Canada Command, Canadian Expeditionary Force Command, Canadian Special Operations Forces Command, Canadian Operational Support Command) and a functional command (Military Personnel Command).

The CF also maintains the following:

• A police service, comprising the Military Police operating under the technical supervision of the Canadian Forces Provost Marshal;
• A military justice system administered under the superintendence of the Judge Advocate General, which is under the responsibility of the Minister of National Defence;
• Chaplaincy services;
• Extensive communications networks in Canada and abroad;
• Firefighting services;
• Medical and dental services for CF members, who are excluded from both the Canada Health Act of 1984 and the Public Service Health Care Plan;
• Youth programs, specifically the Canadian Cadet Program and the Junior Canadian Rangers;
• The Canadian Defence Academy; and
• The Canadian Forces Grievance Board.

The CF also includes a group of related organizations and agencies under the responsibility of the Minister of National Defence:

• The Office of the Ombudsman for the Department of National Defence and the Canadian Forces;
• The National Search and Rescue Secretariat;
• The Communications Security Establishment Canada; and
• The Canadian Forces Housing Agency.

The National Defence Act establishes DND and the CF as separate entities operating in close cooperation in an integrated National Defence Headquarters and elsewhere under the authority of the Minister of National Defence. The National Defence Act also establishes a Deputy Minister who is responsible for policy, resources, interdepartmental co-ordination and international defence relations, and designates the Chief of the Defence Staff, the senior serving officer of the CF, as the person “… who shall, subject to the regulations and under the direction of the Minister, be charged with the control and administration of the Canadian Forces.”[2] As well as the National Defence Act, the Minister is responsible for the administration of the statutes, regulations and orders listed at Appendix A.

The Canadian Forces Grievance Board, the Military Police Complaints Commission and the Office of the Communications Security Establishment Commissioner report to the Minister of National Defence although they are not part of the Department of National Defence. This reporting arrangement and organizational status are designed to ensure accountability while maintaining the arm’s-length relationship required to prevent conflicts of interest.

The Office of the Legal advisor to the Department of National Defence and the Canadian Forces (DND/CF LA) provides legal services to the Department and the CF in all areas of the law including Commercial law, Public law and Claims and Civil litigation, except those related to military law, military discipline and the military justice system for which the Judge Advocate General (JAG) is responsible.

In 2007, the Portfolio Council was created to ensure better coordination between the portfolio organizations in response to the Treasury Board’s requirement to ensure that Ministerial portfolio responsibilities are understood, integrated, and carried out coherently as part of the Department’s key responsibilities. The Portfolio Council meets quarterly and encourages feedback and information sharing between the portfolio organizations and the Department. The initial meeting was held in February 2008.

The National Defence Headquarters organization chart is found in Appendix B.

Key Partners and Stakeholders

Defence works with many Canadian and international partners that help support its mission, programs and activities. The broad scope of the Defence mandate is reflected in the complexity and diversity of its partners and stakeholders, which are listed in Appendix C.

Overview of Delivery Mechanisms

The rules and principles governing government grants and contributions are outlined in the TBS Policy on Transfer Payments. Transfer payments constitute transfers of money, goods, services or assets made from an appropriation to individuals, organizations or other levels of government, without the federal Government directly receiving goods or services in return, but which may require the recipient to provide a report or other information prior to receiving payment. These expenditures are reported in the Public Accounts of Canada.

The following website provides additional information on grants and contributions awarded by Defence: <http://www.admfincs.forces.gc.ca/pd-dp/dgcao-dposcs-eng.asp>

A Summary of Transfer Payments Program Over $5M is available in Section III: Supplementary Information – Table 6a. Details of Transfer Payments Program Over $5M are provided in Section III: Supplementary Information – Tables 6b and 6c.

 

Link to Government of Canada Outcome Areas

Defence actively contributes to all Government of Canada Outcomes. The following table provides a summary of the linkages between Defence Strategic Outcomes and Government of Canada Outcomes. Additional details on past contributions of Defence can be obtained in the 2006-2007 Canada’s Performance Report and the 2006-2007 National Defence Departmental Performance Report.

Government of Canada Strategic Outcomes	National Defence’s Strategic Outcomes
	Canadian’s Confidence that National Defence/CF has relevant and credible capacity to meet Defence and Security commitments	Success in assigned missions in contributing to domestic and international peace security and stability	Good governance Canadian identity and influence in a global community
Economic Affairs
· Income security and employment for Canadians	◘
· An innovative and knowledge based economy	◘		•
· A clean and healthy environment	◘
Social Affairs
· Healthy Canadians	◘
· Safe and Secure communities	•	•	◘
· A diverse society that promotes linguistic duality and social inclusion	◘		◘
· A vibrant Canadian culture and heritage			•
International Affairs
· A safe and secure world through international cooperation	◘	•	•
· Global poverty reduction through sustainable development		◘
· A strong and mutually beneficial North American partnership	•	•	•
· A prosperous Canada through global commerce	◘
Government Affairs			◘

 

PAA chart

 

Departmental Performance

Summary of Overall Performance 

In fiscal year 2007-2008, National Defence continued to fully meet its domestic and international security commitments. National Defence contributed to the defence of Canada by providing personnel and equipment in support of the national Search and Rescue (SAR) mandate, North American Aerospace Defence Command (NORAD), coastal and Arctic patrols and disaster relief preparedness. Defence also continued to make significant contributions to key multilateral organizations, including support to United Nations peace support missions in various parts of the world. Canada renewed its commitment to the North Atlantic Treaty Organization (NATO) mission in Afghanistan until 2011 and Defence also sought greater engagement in Africa and Asia-Pacific by working with partner organizations such as the African Union (AU) and the Association of South East Asian Nations (ASEAN) Regional Forum. National Defence also worked to organize the VIII Conference of Defence Ministers of the Americas, which took place in September 2008, and continued to strengthen relationships with key hemispheric partners to better meet security challenges in this area, consistent with the Government’s Americas Strategy.

Overall, the CF succeeded in the aspects of its business, from the generation and sustainment of integrated forces, to the conduct of its operations both at home and abroad. Due to stable and predictable long-term funding afforded by the Canada First Defence Strategy (CFDS) and the ongoing acquisition and upgrades of capital equipment, the future for National Defence is looking positive.

Total Financial Resources

2007-2008
($ Thousands)	Planned Spending	Total Authorities	Actual Spending
Departmental Spending1	17,845,445	18,778,156	17,524,049
Capital Spending2	3,908,616	3,964,010	3,203,648

Notes:

1. Budgetary funding from Budgets '05 and '06 has allowed the Department, in a short period of time, to make significant investments in its Capital program. Notwithstanding the progress to date, the long lead times necessary for the acquisition of major capital equipment and associated capacity / resource demands presented challenges in FY 07-08 with consuming the Department's full spending authority. A re-profiling of Defence Program resources has been done to ensure the funding supply is aligned with the demand of the Major Combat Fleet Replacement projects, as they continue to move forward.
2. The total departmental capital spending lapse for FY 07-08 is $760 million (including statutory amounts). This figure includes frozen allotments for the Maritime Helicopter Project of $312 million, Airlift Capability Project - Tactical of $68.5 million, and Medium- to Heavy-Lift Helicopter Project of $26.8 million, Re-profiling of Previously Approved Budgetary Resources (accrual basis capital projects) of $208.6 million, and Re-profiling of Unused Capital Funding of $56.9 million. Also, the department can carry forward into FY 08-09 an operating budget carry-forward of $77.9 million and unused accrual basis funding of $9.5 million.

Influences on Departmental Performance

While National Defence continued to deliver on its domestic and international commitments, the Department faced a number of challenges and opportunities, which influenced its performance during fiscal year 2007-2008. These include the management of an increase in defence funding while balancing the need to meet the requirements of expenditure review, ongoing challenges related to military and civilian personnel recruitment and retention, and the need to align National Defence Headquarters functions and processes including the Government mandated Management Accountability Framework (MAF), Program Activity Architecture (PAA) and the Report on Plans and Priorities (RPP) and Departmental Performance Report (DPR).

In fiscal year 2007-2008, a combination of significant Budgetary funding and the abeyance of the Department's Procurement Reform Levy for 2007-2008 led to a situation whereby the organization was not able to fully plan and spend the additional funding. By the end of fiscal year 2007-2008, despite Departmental expenditure increases of over 11 percent from the previous year, the capacity was not there to fully absorb the additional funding and the result was a funding lapse of approximately $300M (1.6 percent of the total budget). Through the development of an Investment Plan, the Department will aim to address these issues to ensure value for money and sound stewardship in government program delivery through effective investment planning.

Program Activities by Strategic Outcome

	Expected Results	Performance Status1	2007-2008		Contributes to the following priority 2
			Planned Spending	Actual Spending
Strategic Outcome: Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments.
Generate and sustain relevant, responsive and effective combat-capable integrated forces	Relevant, responsive, and effective combat-capable integrated forces	Successfully Met	14,611,027	13,574,751	Priority No. 2 and 4
Strategic Outcome: Success in assigned missions in contributing to domestic and international peace, security and stability.
Conduct Operations	Conducted operations	Successfully Met	2,286,490	2,912,828	Priority No. 1
Strategic Outcome: Good governance, Canadian identity and influence in a global community.
Contribute to Canadian Government, society and the international community	Effective contribution to Canadian Government society and the international community	Successfully Met	947,928	1,036,470	Priority No. 3 and 4

Notes:

1. Defence's PAA performance measures are still in development.
2. The Defence priorities are described below.

Departmental (Corporate) Priorities

Name	Type	Performance Status
1. Conduct Operations	Ongoing	Successfully Met
2. Grow the Regular and Reserve Forces to meet international and domestic commitments	Ongoing	Not Met
3. Implement the Government’s Canada First Defence Strategy	New	Successfully Met
4. Enhance program delivery and optimize resource utilization	Ongoing	Successfully Met

1. Conduct Operations – Successfully Met

The mission in Afghanistan continued to achieve further progress in establishing security and reconstruction in Kandahar province, training and mentoring Afghanistan’s National Forces and National Police, as well as supporting the Government of Afghanistan in developing key strategies, policies and plans to strengthen national institutions and enhance governance.

A number of other operations were conducted, at home and overseas, ranging from assisting in responding to disasters and providing humanitarian relief; to contributing to UN observing and peacekeeping mandates; to taking part in NATO led operations and exercises.

For further information, refer to the section: Conduct Operations.

2. Grow the Regular and Reserve Forces to meet international and domestic commitments – Not Met

Trained Effective Establishment (TEE), which represents the number of military positions required, grew by 1,413 positions. Net Growth for the year (recruiting minus attrition) was only 628 personnel.

There are at least 31 Military Occupations (with a working force of at least 200 personnel) that remain critically under strength.

For further information, refer to the section: Expansion of the Canadian Forces.

3. Implement the Government’s Canada First Defence Strategy – Successfully Met

Defence has begun to implement initiatives identified in the 20-year Canada First Defence Strategy (CFDS) further to Budget 2006 which allocated $5.3 billion over five years to rebuild the Canadian Forces, and in June 2006, with a further announcement of over $17 billion for new equipment.  The Government also announced more than $7 billion in spending for initiatives in the Arctic, a key part of the CFDS.

For further information, refer to the section: Canada First Defence Strategy.

4. Enhance program delivery and optimize resource utilization – Successfully Met

In 2007-2008, Defence began work on a long-term Investment Plan to effectively deliver an affordable and sustainable implementation of the CFDS that is supported by stable long-term funding.

With the introduction of Integrated Risk Management, strategic level governance bodies were directed to integrate risk management into their proceedings to allow for more informed decision making. In addition, with the subsequent development of the Corporate Risk Profile (March 2008), all directorates were required to submit their annual business plans with a risk assessment.

In January 2008, the Realty Asset Strategy (RAS) and the National Portfolio Management Plan (NPMP) were promulgated in order to help ensure effective stewardship over the Department’s Realty Assets.

For further information, refer to section: Accrual Budgeting – Optimal Use of Resources.

Human Resources

2007-2008
	Planned	Actual	Difference
Military (Regular Force)	65,537	64,403	(1,134)
Civilian	25,000	25,966	966
Total	90,537	90,369	(168)

Notes: 

1. Actual 2007-2008 Military Regular Force Strength as of 31 Mar 2008 ADM(IM) Director Human Resources Information Management (DHRIM) Monthly Strength Report. Regular Force Strength Planned and Actual columns do not include primary reservists (annual monthly paid average) employed on Class C status in support of conduct operations. Class C reservists are Primary Reserve members being employed full-time but with the equivalent pay, benefits and liability as Regular Force members.
2. ADM(HR-Civ) is the source for Civilian Full Time Equivalent (FTE) statistics.

Expansion of the Canadian Forces

Prior to the Canada First Defence Strategy, released in June 2008, the 2007-2008 fiscal framework limited CF expansion to 68,000 Regular Force and 26,000 Primary Reserve average paid strength by fiscal year 2011-2012. As part of the CFDS, the Government committed to expand the Canadian Forces to 70,000 Regular and 30,000 Reserve Force personnel.

The civilian workforce is planned and managed through a salary and wage envelope which approximates a full-time equivalent (FTE) personnel strength of 25,000. High operational tempo, CF transformation and expansion have placed significant demands on the constraints in place.

Regular Force

Although the Department was very close to meeting their overall recruiting target for fiscal 2007-2008, attrition, at 9 percent, exceeded projections and CF strength consequently did not increase as expected. In summary, 21 out of 68 targeted occupations achieved growth and 47 lost more personnel than were recruited. Approximately one-third of 624 net personnel growth was in the Infantry occupation. Retention and recruiting efforts achieved encouraging progress with the medical officer occupation and various technical occupations.

Figure 1 depicts Regular Force strength growth from 31 March 2005, the start of expansion. While strength has increased by approximately 2,700, trained effective strength[3] personnel numbers have remained largely static. The reason for this is two-fold. First, most new recruits are currently in the training system. Depending on entry program and military occupation, they are expected to reach trained strength status and be fully employable within two to five years. Secondly, while it was expected that attrition would increase during a period of expansion (as attrition in the untrained category is higher than average), attrition exceeded projections.

FIGURE 1: 2007-2008 REGULAR FORCE EXPANSION - STRENGTH REPORT

Note:  The timing of data extracts may cause data to vary slightly from CMP/Production, Attrition, Recruiting, Retention and Analysis (PARRA) report numbers], DPR reports.

FIGURE 2: REGULAR FORCE ATTRITION TREND

The Department is actively developing a CF retention strategy and action plan to deal with the unexpected attrition increase. Should attrition continue at the elevated levels seen in fiscal years 2006-2007 and 2007-2008, this will continue to limit the ability of the CF to achieve its in year expansion trained personnel goals. Further, every one percent rise in total attrition translates into approximately 1,000 less trained effective personnel available to fill functional positions.

Reserve Force

Figure 3 compares total strength and paid strength in the Reserve Force and shows the growth achieved during fiscal 2007-2008. The Reserve Force interim target of a paid strength of 26,000 by March 31, 2008 was largely achieved. Sustainment of Joint Task Force Afghanistan required an increase in the number of Reservists employed on Class C[4] contracts during the reporting period. Most of the growth in Total Strength occurred in the Army Reserve.

FIGURE 3: FISCAL 2007-2008 RESERVE FORCE EXPANSION- ANNUAL STRENGTH REPORT

Data Source: ADM(Fin CS) Revised Pay System for the Reserves (RPSR) monthly records as of April 2008 and ADM(IM)/DHRIM 31 March 2008 monthly report.

Notes:

1. The Total Strength figure is calculated from Primary Reserve pay records and the ADM(IM)/DHRIM 31 March 2008 monthly report.
2. Paid Strength is an annual monthly average derived from monthly pay statistics that include personnel on Class C status.

Civilian Workforce

As of March 31, 2008, the civilian workforce was 25,966 FTE personnel strength, close to the SWE equivalent of one thousand FTEs over the sustainable limit. Some programmes and initiatives, such as the apprenticeship programme and the requirement for a short-term surge in project management personnel and support to deployed operations, will continue to push civilian numbers temporarily over the 25,000 FTE SWE equivalent limit. Notwithstanding, it is forecasted that the Department will be challenged to recruit and retain sufficient talented workers as the number of individuals eligible for retirement increases in the years to come (see graph below). Committed to supporting Public Service Renewal priorities, detailed later on in this report, the Department is currently developing investment opportunity options to continue to hire above the 25,000 FTE for the next five years as a temporary risk-mitigation measure to ensure the workforce is sustained at the maximum possible level in the longer-term.

FIGURE 4: CIVILIAN WORKFORCE RETIREMENT ELIGIBLITY FORECAST

Source: Assistant Deputy Minister (Human Resources – Civilian)

Canada First Defence Strategy

The Government has committed to rebuild the CF into a first-class, modern military. Budget 2006 allocated $5.3 billion over five years to begin this process. In June 2006, the Government announced over $17 billion in new equipment for the CF – including Joint Support Ships, strategic and tactical aircraft, medium-weight trucks and medium- to heavy-lift helicopters. Significant progress on these projects has already been realized, including the delivery of four CC-177 Globemaster III strategic lift aircraft and a signed contract for seventeen CC-130J Hercules tactical lift aircraft.

The Government has also made the Arctic a key piece of its Canada First Defence Strategy and over the last year has announced more than $7 billion in spending to increase CF capabilities in the Arctic, including Arctic/Offshore Patrol Ships, a deepwater berthing and refuelling facility in Nanisivik, the expansion of the size and capabilities of the Canadian Rangers, and the creation of an Arctic Training Centre in Resolute Bay.

Within the context of the CFDS, Budget 2008 provided a commitment to long-term stable defence funding over a 20-year period by raising the annual rate of increase to the Defence budget to 2 percent from the present 1.5 percent beginning in fiscal year 2011-2012. As noted in the Budget, this extra half percent increase represents a commitment of an additional $12 billion over 20 years. Predictable funding will allow the CF to deliver a detailed Investment Plan for the next 10 years, with a focus on the 20-year horizon. This will provide a level of certainty and coherence to the force development process that was not previously possible.

Defence Plan

The Department continued development work on the Defence Plan with the goal of achieving linkages between policy, available resources, the Program Activity Architecture (PAA) and major strategic investments. A key initiative during fiscal year 2007-2008 was work conducted in preparation for an Investment Plan. These activities have helped the Department to achieve the initial requirement for a long-term, holistic view of the funding resources available as compared to the requirements for major investments in personnel, operations and readiness, infrastructure and approved/planned capabilities. Once completed, the Investment Plan will identify in more detailed terms the planned implementation of the Canada First Defence Strategy.

Impact of Resources on Operations

The challenge of generating and sustaining high readiness forces to prepare, deploy and execute missions effectively will not diminish. Defence identified and allocated sufficient funding to meet all the demands of deployed forces and national support to those operations. Centrally provided funds were clearly identified and allocated to the respective operations accounts, which were then further supported by the provision of sufficient additional funding to meet increases in forecasted demands. Longer-term sustainability of the Department was not affected as sufficient funds were identified as surplus to in-year requirements during the quarterly review process and re-allocated to meet all operational demands. It is expected that this positive outlook will continue with the Government’s CFDS commitment to separately fund the incremental costs of major operations.

Expenditure Management Review

The Department fully complied with the Expenditure Review Committee (ERC) program efficiency targets for fiscal year 2007-2008. This marked the third year of ERC reductions, as Defence proceeded toward the final steady-state reductions in fiscal year 2009-2010. The fiscal year 2007-2008 targets represented an incremental increase over the fiscal year 2006-2007 targets, amounting to a total reduction of $101.3M from the reference levels.

The ERC reductions have continued to reduce the flexibility of the Department to fund new sustainment activities or improvements to the sustainability of the current program.  A significant portion of the targeted program efficiencies was originally attributed to programs that were scheduled for reduction or offset by new capabilities. As a result of subsequent Transformation initiatives, operational imperatives and capital acquisition delays, the Department's resource managers have had to apply a portion of new sustainment funding and/or re-allocate existing funding to sustain some of these activities.

The specific efficiencies to date have been assigned as follows:

($ Millions)	2007-2008	2009-2010
		(Steady-State)
Program Efficiencies / Reductions
Operations and Maintenance and National Procurement Support  to Air Assets	$25.0	$53.0
Canadian Parachute Centre	$3.0	$7.0
Light Armour Vehicles	$7.0	$7.0
Non-military Vehicles	$7.0	$7.0
Total	$42.0	$74.0
Corporate Efficiencies / Reductions
National Capital Region – Staff, Operations and Maintenance	$42.3	$52.4
Materiel Acquisition and Support Optimization Project (MASOP)	$20.0	$20.0
Support for IM/IT Corporate Information Systems	$11.0	$29.0
Research and Development (R&D)	$15.0	$15.0
General and Administrative Support	$13.0	$13.0
Total	$101.3	$129.4
Target	$101.0	$129.0
Total ERC Target	$143.0	$203.0

Summary of Departmental Performance by Program Activity

Generate and Sustain Relevant, Responsive, Effective, Combat-Capable Integrated Forces

In fiscal year 2007-2008, the CF sustained the high operational tempo for both planned and contingency operations at appropriate readiness levels and generated surge forces to meet unanticipated requirements. A contributing factor in meeting the challenges of sustaining the high operational tempo was the provision of CF training in support of all operations directed by the Government of Canada. CF collective training and exercises were vital to the generation of operational forces in that members of the CF were well trained and prepared for specific missions. Funding was provided from a special account called the Collective Training and Exercise Account, which is earmarked specifically to foster the generation and maintenance of CF joint, interagency, and combined operations capabilities through collective training and exercises.

During fiscal year 2007-2008, Defence improved the efficiency of military procurement and responded effectively and efficiently to the evolving military and security threats and requirements.

Conduct Operations

The Canadian Forces conducted a wide range of operations in fiscal year 2007-2008 to defend Canada and protect Canadians. Key domestic and continental activities included helping to exercise Canadian sovereignty in the Arctic through a series of extensive patrols during Operation NUNALIVUT, and supporting other government departments and agencies working in the North through Operation NARWHAL. CF personnel also cooperated continuously with US counterparts to monitor and defend North America’s air and sea approaches, and responded to thousands of search-and-rescue incidents along with the Canadian Coast Guard and other partners. Finally, the CF provided support for major events, such as assisting the RCMP in providing security for the North American Leaders’ Summit in Montebello, Québec.

The Canadian Forces also continued to contribute to international peace and security. The mission in Afghanistan remained the CF’s largest overseas operation last year. Together with civilian advisers from the Department and other government departments and agencies, the CF continued to support the Government of Afghanistan in developing key strategies, policies and plans to strengthen national institutions and enhance governance. Military personnel played key roles in security and reconstruction efforts in Kandahar province, and provided training and mentoring to the Afghan National Army and National Police. The Government of Canada’s extension of the mission to 2011 signifies the progress achieved to date and its confidence that continued progress on the whole-of-government policy priorities will be achieved.

Beyond Afghanistan, Canadian Forces personnel were also engaged in naval antiterrorism activities in the Persian Gulf and Arabian Sea. They took part in multinational peace support and observer missions in Sudan, the Democratic Republic of Congo, Bosnia-Herzegovina, and around the Middle East. The CF also remained prepared to assist in the response to natural disasters around the globe, as demonstrated by the use of a CC-177 aircraft to deliver relief supplies to Jamaica after Hurricane Dean in August 2007.

Contribute to Canadian Government and Society, and the International Community, in Accordance with Canadian Interests and Values

Defence provided advice to the Government of Canada on a wide range of security and defence issues. Defence Research and Development Canada worked with partners in the public and private sectors to develop innovative solutions to technical challenges such as countering the threat of improvised explosive devices. The Canadian Cadet and Junior Canadian Ranger programs gave young Canadians the opportunity to develop their skills and confidence as leaders and team members. As one of the country’s largest employers, National Defence generated economic activity in communities across Canada, and strove to provide a model work environment. Finally, Defence promoted Canada’s interests and reflected its values globally through cooperation with international partners on defence, security, industrial, and scientific issues.

• Previous Page
• Table of Contents
• Next Page