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Section II: Analysis of Program Activities by Strategic Outcome

The Agency is both an economic regulator and a quasi-judicial tribunal. It regulates the national transportation system (air, rail and marine) through the administration of laws, regulations, voluntary codes of practice, and education and outreach programs. It adjudicates disputes between users of, service providers within and others affected by the national transportation system.

As a regulator, the Agency has a mandate to administer the economic regulatory provisions affecting all modes of transportation under federal jurisdiction found in various Acts of Parliament. In 2009–2010, the Agency:

  • issued 2,609 discretionary and administrative rulings to support the effective regulation of the national transportation system;
  • after reviewing compliance with the air licensing requirements, processed 1,545 air licensing activities, including applications for new licences as well as suspensions, cancellations and reinstatements;
  • issued 1,440 charter permits;
  • participated in the negotiation of bilateral air agreements with Cuba, El Salvador, Ethiopia, Japan, Morocco, South Africa and Tunisia;
  • varied one certificate of fitness for BNSF Railway to reflect the sale of a portion of track;
  • determined the jurisdictional status of a proposed construction of a passenger rail link project;
  • determined that third party liability coverage was adequate following Logistic Corporation's acquisition of Sydney Coal Railway Inc.;
  • determined that the Canadian Pacific Railway Company did not exceed its revenue entitlement under the revenue cap regime for Western grain, while the Canadian National Railway Company exceeded its cap by $683,269. Since this amount exceeds the cap by less than 1%, CN was ordered5 to pay the amount by which it exceeded the cap plus a penalty of 5% ($34,163) to the Western Grains Research Foundation;
  • considered 102 coasting trade applications to protect the interests of the Canadian marine industry and allow foreign ships when no suitable Canadian ships were available; and
  • undertook 159 inspections resulting in the issuing of 33 informal warnings, 12 formal warnings and 12 notices of violation.

As an adjudicator, the Agency resolves transportation issues within the national transportation system either by investigating and making formal tribunal decisions on complaints and ordering corrective measures as required, or by helping parties resolve their issues through the alternate dispute resolution processes of mediation or facilitation. In 2009–2010, the Agency:

  • resolved 425 dispute cases of which 366 were through facilitation, 12 through mediation and 47 were resolved through formally adjudicated decisions;
  • dealt with 53 accessibility cases;
  • published two decisions where it concluded that certain air travellers with allergies to nuts, peanuts and cats may be persons with disabilities due to their allergies for the purposes of the accessible transportation provisions of the Act;
  • published guidance material concerning provisions of its Code of Practice: Aircraft Accessibility for Persons with Disabilities;
  • processed 642 air travel complaints;
  • was involved in nine environmental assessment processes for proposed rail line construction, road and utility crossing projects, and issued three decisions giving authority to construct railway lines; and
  • processed 111 agreements filed by parties that had successfully conducted their own negotiations related to rail crossings.

Strategic Outcome

Transparent, fair and timely dispute resolution and economic regulation of the national transportation system
Performance Indicators Targets Performance Status Performance Summary
Feedback from users of, service providers within, and others affected by the national transportation system on perceived transparency, fairness, and efficiency of the decision-making process.

Conduct benchmark surveys and set targets.

Conduct subsequent survey.

Conducted survey and collected preliminary data. Benchmarks will be determined upon analysis in fall 2010, and continued and broadened surveying is scheduled for 2010–2011. Met performance target. Conducted 31 in-depth qualitative interviews with senior officials from major transportation providers and associations; also surveyed participants in mediations and facilitated travel-related cases, with 72 responses received in total.
Percentage of discretionary rulings overturned by the Federal Court of Appeal on basis of procedural fairness. 0% 0% Met performance target. An alleged breach of the rules of fairness was raised on six cases at the Federal Court of Appeal. Four were denied at the motion for leave to appeal stage, one was discontinued and another was denied at the appeal stage.

Percentage of cases resolved within prescribed time limits.

    
Disputes resolved formally: 65% resolved within 120 days. 43% Did not meet performance target. The complexity of formal cases on which the Agency must rule has increased, and as a result, more cases took greater than 120 days to resolve. A priority in 2009–2010 was to re-engineer the Agency's approach to case management to improve efficiency, quality and consistency of decisions in 2010–2011 and beyond.
Determinations: 95% issued within 120 days.  97% Exceeded performance target.
Licences: 85% issued within 14 days.  90% Exceeded performance target. The Agency processed 154 new air licence applications, out of which 138 were processed within 14 days of the application being complete.
Charter permits: 92% issued within 30 days.  91% Mostly met performance target. A significant number of applications for sports team charters required approval following ministerial directives
Mediation: 100% completed within 30 days (when no extension is requested).  100% Met performance target. The Agency's mediation success rate is 83%. Two cases were not resolved through mediation and were referred back for adjudication; one case was subsequently withdrawn.

In order to successfully deliver its strategic outcome, the Agency divides its programs into three activities (economic regulation, adjudication and alternative dispute resolution, and internal services), which are explained in the following logic model.

Canadian Transportation Agency - Logic Model

Canadian Transportation Agency - Logic Model
[PDF Format][Description of the image]

Program Activity: Economic Regulation

Economic Regulation

2009–2010 Financial Resources
($ thousands)

2009–2010 Human Resources
(FTEs)

Planned Spending Total Authorities Actual Spending Planned Actual Difference
11,902 13,324 12,324 119 113 -6

Description

Within the specific powers assigned to it by legislation, the Agency participates in the economic regulation of modes of transportation under federal jurisdiction, including:

  • licensing air and rail carriers and acting as one of Canada's aeronautical authorities;
  • determining whether terms and conditions of air travel are just and reasonable;
  • approving the adequacy of the protection of advance payments made by charter companies contracting with air carriers;
  • setting railway revenue caps for moving Western grain;
  • setting financial and costing frameworks for certain federally regulated railways;
  • issuing certificates of fitness for federally regulated railways;
  • setting interswitching rates and establishing the net salvage value of railway lines to facilitate their orderly transfer; and
  • determining if Canadian ships are available and suitable to perform services that a resident of Canada has requested be provided by foreign ships in Canadian waters.

The Government of Canada's national transportation policy permits the domestic market to self-regulate. However, it also acknowledges that regulation can be required to meet public objectives or in cases where parties are not served by effective competition. 

Expected Results Performance Indicators Targets Performance Status Performance Summary
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements. Percentage of charter permits issued within 30 days. 92% 91% Mostly met performance target. The small variance is due to a significant number of applications for sports team charters that required approval following Ministerial directives. Results are 95% when the 57 sports team charter cases are excluded.
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements. Percentage of licences issued within 14 days. 85% 90% Exceeded performance target. The Agency processed 154 new air licence applications, out of which 138 were processed within 14 days of the application being complete.
Compliance with the Canada Transportation Act and its attendant regulations. Percentage of compliance with the requirements to hold a valid licence, insurance and Air Operator Certificate, as determined by inspections. 100% 100% Met performance target. The Agency conducted 140 periodic air carrier inspections in 2009–2010 and found all air carriers to be compliant with those basic requirements.
Compliance with the Canada Transportation Act and its attendant regulations. Percentage of compliance with requirements of the Act and regulations other than licence, insurance and Air Operator Certificate requirements, as determined by inspections. 85% 96% Exceeded performance target. Of the 159 cases processed, 153 were closed within 120 days with parties complying with these requirements.
Enhanced monitoring of and compliance with accessibility regulations and codes of practice. Level of compliance with accessibility provisions. Development of new monitoring and compliance methodology and tools. New monitoring and compliance methodology and tools were implemented. Met performance target.
Conduct monitoring and set targets. Monitoring of compliance conducted on targeted service providers for the Communications Code of Practice. The Communications Code of Practice survey report released in 2009 identified key compliance issues. Follow-up action was taken to enhance compliance.
Conduct assessments and report on compliance. Compliance assessments conducted and reports issued. Compliance reports issued on requirements to provide accessible communications systems and information to persons with disabilities in accessible formats.
The Agency efficiently protects the interests of operators of Canadian registered ships while allowing access to foreign ships when suitable Canadian registered ships are not available. Percentage of applications processed prior to the deadline. 95% prior to the commencement date when no offers are made. 100% Met performance target. All applications without offers (82 in total) were processed before commencement date.
80% issued within 90 days when offer is made. 90% Exceeded performance target.
Environmental, economic and social impacts of railway construction projects, railway lines and yards are mitigated. Percentage of compliance with prescribed mitigation conditions as determined on follow-up. 100% 100% Met performance target.
Regulatory authorities required in railway operations are issued on a timely basis upon meeting the regulatory requirements. Percentage of determinations issued prior to specified timeline of 120 days. 95% 100% Exceeded performance target. All three cases were processed within 120 days.

Performance Analysis

The Agency met or exceeded its level of service targets with respect to its economic regulation program.

With respect to its change management agenda, the Agency had two primary objectives for this program, which were captured under two broad headings, namely: 1) to manage its caseload in a sound, responsive and efficient manner; and 2) to maintain up-to-date, relevant and clear regulatory frameworks.

To realize the first objective, the Agency adopted and implemented certain measures to streamline its decision-making process (standardization of decision letters for straightforward applications, removal of unnecessary internal reviews and approvals, standardization of material to be brought forward to Members); established a three-year plan for documenting and streamlining its approach for managing the caseload of its economic regulatory program; automated the production of charter permit documents; and continued to monitor and update its performance monitoring system.

With respect to the second objective, the Agency moved forward simultaneously on a number of fronts:

  • It proactively responded to four ministerial directives and put in place on very short notice new frameworks for monitoring and authorizing professional sports team charters. This activity was not planned and resulted from the need to respond to an action initiated by the United States.
  • It developed a plan in three phases for updating the Air Transportation Regulations and proposed regulatory amendments for the first phase, which is targeted for finalization in 2010–2011.
  • It developed proposed draft guidelines for the processing of coasting trade applications and it conducted two rounds of consultation with the industry.
  • It issued updated licence application guides for U.S. air carriers.
  • It developed a monitoring and compliance framework that works towards achieving the Agency's goal of removing any undue obstacles to accessibility for passengers with disabilities.
  • It released two compliance reports regarding the Code of Practice: Removing Communication Barriers for Travellers with Disabilities. The two reports, Multiple Format Policy Compliance Report and The Alternative Communications Systems Compliance Report, show how the code of practice is being adopted by service providers.
  • It developed guidance material for Canadian air carriers to comply with provisions pertaining to tactile row markers and space for service animals in the Code of Practice for Aircraft Accessibility.

As part of its review of the interswitching rates, the Agency proposed substantive changes to the methodology it uses in determining interswitching costs incurred by the railway companies. As a result, it decided to initiate further consultations with stakeholders before finalizing the rates and proceeding to amend the current regulations.

Lessons Learned

The Agency adjusted its Performance Management Framework in light of the experience gained. Further significant improvements to its level of service standards will require a more fundamental look at its existing business processes and the role that automation and Web-based service solutions might play in this regard.

The Agency will continue to put more emphasis on its regulatory role to ensure that its regulations are up to date and reflective of government policies and priorities. More emphasis will be placed on enhancing the transparency of its decision-making processes. Using the forthcoming revised Coasting Trade Guidelines as a guide, the Agency will continue working towards a more comprehensive and up-to-date set of guidance documents to improve the transparency, predictability and fluidity of its decision-making processes for the different categories of applications under its authority.

Benefits for Canadians

By ensuring that legislative and essential regulatory requirements are met in a timely manner, the Canadian Transportation Agency contributes to an economic, efficient and safe transportation system meeting the needs of its users. It helps carriers to meet public sector objectives while not unduly restricting their business activities and it contributes to establishing a level playing field for all carriers operating in Canada through its impartiality, consistency and professionalism.

Program Activity: Adjudication and Alternative Dispute Resolution

Adjudication and Alternative Dispute Resolution

2009–2010 Financial Resources
($ thousands)

2009–2010 Human Resources
(FTEs)

Planned Spending Total Authorities Actual Spending Planned Actual Difference
6,584 7,477 7,261 62 60 -2

Description

The Agency participates in the resolution of disputes on matters related to the national transportation system, including:

  • complaints related to air carriers' application of their tariff provisions and on prices applied by air carriers on non-competitive routes within Canada;
  • appeals of new or revised air navigational charges imposed by NAV CANADA to ensure that principles used to establish them comply with legislation;
  • disputes between shippers and rail carriers on issues such as rates, level of services, running rights and interswitching;
  • disputes between railway companies and municipalities, road authorities, landowners and other stakeholders;
  • complaints about user fees charged by Canadian port authorities, the St. Lawrence Seaway Management Corporation and the Federal Bridge Corporation;
  • complaints related to actions taken by members of the marine industry that could reduce competition;
  • objections to proposed pilotage charges and if these charges are fair, reasonable and in the public interest; and
  • complaints concerning the level of accessibility of the national transportation network, in order to remove any undue obstacles to the mobility of persons with disabilities.
Expected Results Performance Indicators Targets Performance Status Performance Summary
The Agency efficiently resolves complaints on air services, weighing the evidence submitted by the parties.   Percentage of disputes resolved formally within 120 days. 70% 44% Did not meet performance target. Complexity of cases impacted the meeting of this target.
The Agency efficiently resolves complaints about obstacles to the mobility of persons with disabilities, weighing the interests of persons with disabilities with those of the industry in assessing whether the obstacle is undue.  Percentage of disputes resolved formally within 120 days. 50% 67% Exceeded performance target. Implementation of new processes to enhance the efficiency and effectiveness of case processing contributed to the favourable results as did the greater percentage of accessible disputes being informally resolved.
The Agency efficiently resolves disputes by determining whether pilotage charges are in the public interest and whether port fees and seaway tolls are not unjustly discriminatory. Percentage of disputes resolved formally within 120 days. 70% No disputes filed this year. N/A
The Agency efficiently resolves disputes between shippers, farmers, landowners, road authorities, utility companies, all levels of government and railway companies. Percentage of disputes resolved formally within 120 days. 75% 25% Did not meet performance target. Complexity of cases had an impact on meeting this target.

Performance Analysis

Although the Agency has addressed a number of dispute case processing issues, implemented process improvements and established new practices that promote increased productivity and efficiency, meeting the 120-day target for the resolution of complex cases through the formal adjudicative process continues to be a challenge. This challenge has been made even greater through the increasing share of formal cases that are more complex due to procedural requirements, complexity of the issues and, in some cases, the need for research and for expert opinions.

The Agency encourages parties to work together to either avoid disputes or resolve issues in a collaborative fashion. Informal dispute resolution processes offered by the Agency are quite effective when resolving straightforward disputes. Last year, over 88% of complaints brought by individual consumers were resolved informally by Agency staff, either through facilitation or mediation. Not only are acceptable solutions found relatively quickly, but both parties usually wind up saving considerable time and expense by resolving the issue without resorting to the Agency's formal adjudicative process —making this informal approach a true win-win situation.

However, cases that are not resolved through informal methods tend to be more adversarial in nature, adding to the complexity of these cases. Certain formal cases may also be without precedent, or raise broad systemic, policy or procedural issues. Therefore, additional information and time may be required by the parties and extensions of time are not uncommon.

Lessons Learned

The Agency re-engineered its formal adjudicative process to improve the timeliness of its decisions. To support this re-engineering, an extensive analysis was undertaken of all the steps of the adjudicative process. The analysis demonstrated that the 120-day deadline for issuing decisions leaves little leeway for many of the procedural issues that are frequently raised in adjudication and must be addressed to ensure natural justice is satisfied.

The Agency must be able to take the time it needs to carefully consider and weigh the evidence before it, with full due process provided to all parties. That responsibility, added to the increasing complexity of certain cases, makes it more difficult for the Agency to meet its 120-day performance target for such cases. Further actions will be taken to address this challenge. The Agency will conduct a review of the Canadian Transportation Agency General Rules to identify alternative approaches that would better respond to the differing needs of the Agency and its clients in disputes and determinations, as well as provide more, clearer guidance to self-represented parties appearing before the Agency. The Agency will also develop ways of stratifying cases based on complexity and establish more relevant performance targets. Also, a comprehensive, customized training program designed for case officers will be provided starting in 2010–2011.

Mediation is actively promoted by the Agency and is used to address cases having multiple issues of high complexity. As a result, the number of persons involved is increasing, as is the workload for each mediation. In 20092010, 100% of mediations were completed within the 30-day statutory deadline. However, in order to ensure that future performance targets are met, the current mediation service delivery framework is under review.  

Benefits for Canadians

In exercising its adjudicative powers, the Agency employs processes that are responsive, fair and transparent, and considers the interests of all parties to disputes involving the national transportation system. Its adjudicative formal decision-making process is governed by the rules of natural justice and fairness.

Through its actions and by working closely with Transport Canada, other departments, its clients and stakeholder groups, the Agency supports the goal of a Canadian transportation system that is competitive, efficient and accessible — and that meets the needs of those who provide or use transportation services.

Program Activity: Internal Services

Internal Services

2009–2010 Financial Resources
($ thousands)

2009–2010 Human Resources
(FTEs)

Planned Spending Total Authorities Actual Spending Planned Actual Difference
7,666 8,743 8,456 71 66 -5

Description

Internal services support the needs and programs and other corporate obligations of the Agency. They apply across the Agency and support the delivery of the Agency's plans and priorities, and are not specific to a program. For the Agency, this includes governance and management support, resource management and asset management.

Internal services refer to both the corporate functions that support the delivery of the Agency's plans and priorities as well as the specialized tribunal services that are an integral part of the delivery of the operational mandate of the Agency.

Corporate functions

  • develops, maintains and implements integrated systems, policies, procedures, services, strategic planning and internal audit for the effective acquisition and stewardship of financial and material resources;
  • provides effective and timely human resources services and advice to managers and employees;
  • provides advice and support regarding internal and external strategies, activities and products in order to effectively meet the information needs of our clients and stakeholders; and
  • provides advice and support on the management and use of information and technology;

Specialized tribunal services

  • provides legal advice and counsel;
  • provides editing, translation and quality control services for Agency proceedings; and 
  • provides registrar services and coordinates ministerial correspondence. 

Performance Analysis

Succession plan
  • Gap analysis and identification of key positions and Agency vulnerabilities are completed annually as part of the Agency's integrated business and human resource planning exercise.

  • Agency recruitment strategy and knowledge management activities addressed vulnerabilities in 2009–2010 by focusing on areas that are identified as high risk through the human resources planning and employee performance review processes. There is still work to do to coordinate these activities into everyday human resources management programs such as staffing.

Recruitment strategy
  • The Agency Student Employment Program expanded in February 2010 to include co-op programs. Six students were hired through the program in 2009 and six more in 2010. The program will be monitored to determine the extent to which students hired under the program are bridged into the public service at the end of their studies.

  • Given the high position vacancy rate during 2008–2009 and 2009–2010, no pools were established since most qualified candidates were hired immediately at the end of the selection process. The Agency's position vacancy rate has decreased significantly and a proactive approach to staffing is being developed using the human resources planning exercise.

Knowledge management strategy
  • Generic competencies for all positions are still being developed.

  • Pilot projects on knowledge management were conducted in 2008–2009 to identify best practices and opportunities continue to be implemented on an ad hoc basis.

Communications
  • An internal communications survey and consultations were conducted in 2009 to gain views and ideas on the intranet. Based on this feedback, a plan was set in motion to completely overhaul the intranet and an Intranet Working Group was formed to review the site's content. The old site was significantly streamlined in advance of the migration to the new site, which was launched in May 2010.

Lessons Learned

More work is needed to integrate human resources planning into everyday human resources management activities, such as staffing to increase staff availability when required and reduce the time between a position becoming vacant and someone being appointed.

Adequate resources are required to ensure that the intranet remains a useful and current information and knowledge-sharing tool for employees.

Benefits for Canadians

Effective recruitment, knowledge management and employee development programs ensure that Agency programs and services are delivered to Canadians accurately and efficiently by knowledgeable employees.