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2009-10
Departmental Performance Report

Fisheries and Oceans Canada

Supplementary Information (Tables)

Sources of Respendable and Non-Respendable Revenue

Sources of Revenue

**($ millions)**
	Actual Revenue 2007-08	Actual Revenue 2008-09	Planned Revenue 2009-10	Actual Revenue 2009-10
Total Respendable Revenue	41.7	42.1	50.0	41.5
Total Non-Respendable Revenue	61.5	59.5	46.1	59.6
Total Revenue	103.2	101.6	96.1	101.1

Respendable Revenue

**($ millions)**
Program Activity	Actual Revenue 2007-08	Actual Revenue 2008-09	2009-10
Program Activity	Actual Revenue 2007-08	Actual Revenue 2008-09	Main Estimates	Planned Revenue	Total Authorities	Actual Revenue
Canadian Coast Guard
Maintenance Dredging Services Tonnage Fees in the St. Lawrence Shipping Channel	5.4	5.9	4.6	4.6	8.4	8.7
Marine Navigation Services Fees	30.7	31.1	27.7	27.7	27.7	27.5
Coast Guard Radio Tolls	0.0	0.0	0.1	0.1	0.1	0.0
Employee Deductions for Employee Housing	—	—	0.1	0.1	0.0	—
Icebreaking Service Fees	5.2	4.8	13.8	13.8	13.1	5.0
Canadian Coast Guard College	—	—	3.7	3.7	3.7	0.1
Sundries	0.4	0.3	—	—	0.0	0.3
Total Respendable Revenue	41.7	42.1	50.0	50.0	53.1	41.5

Note: Because of rounding, figures may not add to the totals shown. Figures that cannot be presented in millions of dollars are shown as 0.0.

Non-Respendable Revenue

**($ millions)**
Program Activity	Actual Revenue 2007-08	Actual Revenue 2008-09	2009-10
Program Activity	Actual Revenue 2007-08	Actual Revenue 2008-09	Main Estimates	Planned Revenue	Total Authorities	Actual Revenue
Canadian Coast Guard
Aids to Navigation in the Deep Water Channel between Montreal and Lake Erie	0.2	0.2	—	—	—	0.2
Rental of Land, Buildings and Equipment	0.0	—	0.2	0.2	0.2	0.1
Miscellaneous	—	—	0.2	0.2	0.2	0.2
Sub-total	0.2	0.2	0.4	0.4	0.4	0.4
Small Craft Harbours
Small Craft Harbours Revenue	1.5	1.2	1.1	1.1	1.1	1.8
Science for Safe and Accessible Waterways
Sale of Charts and Publications	2.0	1.7	1.4	1.4	1.4	1.6
Technology Transfer Licenses	1.2	1.5	1.1	1.1	1.1	2.1
Sub-total	3.1	3.2	2.5	2.5	2.5	3.7
Science for Sustainable Fisheries and Aquaculture
Technology Transfer Licenses	0.2	0.2	—	—	—	0.2
Oceans Management
Rental and Miscellaneous	—	—	—	—	—	0.0
Fisheries and Aquaculture Management
Commercial Licenses	38.0	37.1	34.9	34.9	34.9	37.5
Recreational Licenses	5.2	4.8	5.2	5.2	5.2	5.0
Conservation Stamps	1.3	1.2	1.5	1.5	1.5	1.4
Rental of Land, Buildings and Equipment	0.2	0.3	0.2	0.2	0.2	0.3
Sub-total	44.7	43.2	41.8	41.8	41.8	44.2
Habitat Management
Rental of Land, Buildings and Equipment	0.1	0.1	0.2	0.2	0.2	0.1
Miscellaneous	—	—	0.0	0.0	0.0	0.0
Sub-total	0.1	0.1	0.3	0.3	0.3	0.1
Science for Healthy and Productive Aquatic Ecosystems
Technology Transfer Licenses	—	—	0.1	0.1	0.1	—
Total Non-Respendable Revenue	49.8	48.4	46.1	46.1	46.1	50.3

Note: Because of rounding, figures may not add to the totals shown. Figures that cannot be presented in millions of dollars are shown as 0.0.

Unplanned Revenue

**($ millions)**
Unplanned Revenue	Actual Revenue 2007-08	Actual Revenue 2008-09	2009-10
Unplanned Revenue	Actual Revenue 2007-08	Actual Revenue 2008-09	Main Estimates	Planned Revenue	Total Authorities	Actual Revenue
Internal Revenues	1.7	0.5	—	—	—	0.1
Return on Investments	0.1	—	—	—	—	—
Refunds/Adjustments of Previous Year's Expenditures	3.5	6.0	—	—	—	4.7
Sale of Surplus Crown Assets	3.7	2.0	—	—	—	1.9
Miscellaneous (seizures and forfeitures, fines and sundries)	2.6	2.7	—	—	—	2.6
Total Unplanned Revenues	11.7	11.1	—	—	—	9.2

User Fees

On March 31, 2004, Parliament gave legal effect to the User Fees Act with the aim of strengthening the elements of accountability, oversight, and transparency in the management of user fee activities. The User Fees Act requires departments to annually submit to Parliament a list of all user fees in effect, irrespective of when the fees were established.

The table below lists DFO's user fees for which revenues were collected during the fiscal year 2008-09. Since the establishment of the User Fees Act, DFO has not introduced any new user fees, nor has the Department increased any existing user fees.

DFO collects fees for the conferring of Rights and Privileges (R&P) and for Other Goods and Services (O).

Note: Performance standards under the User Fees Act must be established as part of a user fee proposal process, with specific provisions outlining how the standards are to be established. DFO has not introduced new user fees, nor introduced amendments to existing ones that would require a user fee proposal under the Act; and has no such information to report. Information on DFO's service standards for current fees and performance results can be found in the table on External Fees.

Maintenance Dredging Services Tonnage Fee¹

Description: Intended to recover from commercial vessels the total direct costs incurred by CCG to manage maintenance dredging services in the St. Lawrence Shipping Channel. Services provided consist of the management of the maintenance dredging program for the St. Lawrence Shipping Channel.

Fee Type: O

Fee-setting Authority: Section 47 of the Oceans Act

Date Last Modified: 2003

¹ Since 1997, and at the request of industry, the Canadian Coast Guard has managed the maintenance dredging of the navigation channel of the St. Lawrence River between the Port of Montreal and the Ile aux Coudres near Quebec City. The current fee schedule, which replaces the earlier fee schedule that expired on March 31, 2003, extends the arrangement whereby the Canadian Coast Guard is reimbursed, via fees, for the total direct costs it incurs to ensure commercial navigation. Full cost figures are based on total direct costs (rather than full costs), which include direct labour costs (including employee benefits), direct operating costs, direct material costs, program support costs, and capital acquisitions (to the extent that these capital acquisitions form part of an output).

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
4,600	8,661	—	2010-11	4,600	—
			2011-12	4,600	—
			2012-13	4,600	—

Marine Navigation Services Fee

Description: Intended to recover a portion of the full costs incurred by CCG to provide marine navigation services to commercial vessels. Services provided include short-range aids to navigation and vessel traffic services.

Fee Type: O

Fee-setting Authority: Section 47 of the Oceans Act

Date Last Modified: 2005

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
27,700	27,463	—	2010-11	27,700	—
			2011-12	27,817	—
			2012-13	27,817	—

Marine Communication and Traffic Services/Coast Guard Radio Communications Charges

Description: Rates charged for person-to-person communications by radio-telephone or radio-telegram from ship to shore or from shore to ship.

Fee Type: O

Fee-setting Authority: Section 19 of the Financial Administration Act

Date Last Modified: 1994

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
100	22	—	2010-11	100	—
			2011-12	100	—
			2012-13	100	—

Icebreaking Services Fee

Description: Intended to recover a portion of the full costs incurred by CCG to provide icebreaking services to commercial vessels. Services provided include route assistance (channel maintenance and ship escorts), ice routing and information services, and some harbour/wharf breakouts where not provided by commercial operators.

Fee Type: O

Fee-setting Authority: Section 47 of the Oceans Act

Date Last Modified: 1998

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
13,800	4,978	—	2010-11	13,800	—
			2011-12	13,800	—
			2012-13	13,800	—

Hydrography

Description: Sale of charts and publications

Fee Type: O

Fee-setting Authority: Financial Administration Act, Oceans Act

Date Last Modified: 1996

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
1,402	1,589	38,797	2010-11	1,402	38,797
			2011-12	1,402	—
			2012-13	1,402	—

Fisheries Management

Description: Commercial fishing licence fees

Fee Type: R&P

Fee-setting Authority: Sections 7 and 8 of the Fisheries Act

Date Last Modified: 1995

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
34,515	37,604	—	2010-11	34,065	—
			2011-12	33,615	—
			2012-13	33,150	—

Fisheries Management

Description: Recreational fishing license fees

Fee Type: R&P

Fee-setting Authority: Sections 7 and 8 of the Fisheries Act

Date Last Modified: 1996

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
4,300	4,995	—	2010-11	4,000	Access fees that reflect the value of the privilege/benefit of access to a valuable natural resource owned by all Canadians and not the cost of fisheries management.
			2011-12	3,700	—
			2012-13	3,750	—

Fisheries Management

Description: Pacific Salmon Conservation Stamp

Fee Type: R&P
O

Fee-setting Authority: Sections 7 and 8 of the Fisheries Act

Date Last Modified: 1995

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
1,049	1,365	—	2010-11	976	—
			2011-12	908	—
			2012-13	908	—

Access to Information

Description: Fees charged for the processing of Access requests filed under the Access to Information Act

Fee Type: O

Fee-setting Authority: Access to Information Act

Date Last Modified: 1992

($ thousands)
2009-10			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
—	13	—	2010-11	—	This figure includes amounts for salaries and Operating and Maintenance for the Access to Information and Privacy Secretariat only.
			2011-12	—	—
			2012-13	—	—

User Fee Totals

($ thousands)
	2009-10			Planning Years
	Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
Sub-Total (R)	48,015	42,713	—	2010-11	39,041	—
				2011-12	38,223	—
				2012-13	37,808	—
Sub-Total (O)	39,864	43,965	—	2010-11	48,002	—
				2011-12	48,119	—
				2012-13	48,119	—
Total	87,879	86,618	—	2010-11	87,043	—
				2011-12	86,342	—
				2012-13	85,927	—

External Fees

On November 29, 2004, Treasury Board Ministers approved the Policy on Service Standards for External Fees. The Policy requires departments to report on the status of service standards for all external fees charged on a non-contractual basis. DFO has established service standards for the following external fees:

Maintenance Dredging Services Tonnage Fee;
Marine Navigation Services Fee;
Icebreaking Services Fee;
Marine Communication and Traffic Services — Canadian Coast Guard Radio Communications Charges;
Hydrography — Sale of charts and publications; and
Fees charged for processing of access requests under the Access to Information Act.

DFO also collects external charging revenues through contractual arrangements that fall under the purview of separate federal governance instruments. The revenue information associated with these revenue arrangements continues to be reported in the tables on respendable and non-respendable revenues.

**External Fees**
External Fee	Service Standard¹	Performance Results²	Stakeholder Consultation
Maintenance Dredging Services Tonnage Fee	In general, dredging is intended to maintain the depths indicated on the sea charts and to ensure the optimal and safe use of the St. Lawrence seaway twelve months a year³.	In 2008-09, the St. Lawrence shipping channel was maintained in conformity with the depths indicated on the sea charts.	The annual meeting between CCG and dredging service recipients took place in May 2009. The clients were satisfied with the services which they received from CCG.
Marine Navigation Services Fee	Short Range Aids to Navigation identified as required to support commercial shipping in Canadian waters are operational not less than 99% of the time in accordance with established levels of service.	Short Range Aids to Navigation identified as required to support commercial shipping in Canadian waters were operational not less than 99% of the time in accordance with established levels of service.	The current Marine Navigation Services Fee's rates and application were developed in co-operation with the commercial shipping industry in 1998.
Marine Navigation Services Fee	All vessel traffic services identified as required to support commercial shipping in Canadian waters are available from the Canadian Coast Guard's Marine Communications and Traffic Services Centres in accordance with established levels of service.	All vessel traffic services identified as required to support commercial shipping in Canadian waters were available not less than 97% of the time in accordance with established levels of service.	The current Marine Navigation Services Fee's rates and application were developed in co-operation with the commercial shipping industry in 1998.
Icebreaking Services Fee	All ice information and routing services in support of commercial shipping in Canadian waters are available from Canadian Coast Guard Ice Operations Centres in accordance with the Icebreaking Program's levels of service.	All ice information and routing services in support of commercial shipping in Canadian waters were available from Canadian Coast Guard Ice Operations Centres in accordance with the Icebreaking Program's levels of service.	The Icebreaking Services Fee's transit-based structure, rate and application were developed in 1998 by an Industry/Canadian Coast Guard Working Group that rejected a fee based on direct service. The Icebreaking Services Fee has remained unadjusted since then.
Icebreaking Services Fee	All requests for route assistance and commercial harbour breakouts in support of commercial shipping in Canadian waters will be responded to in accordance with established Icebreaking Program levels of service.	All requests for route assistance and commercial harbour breakouts in support of commercial shipping in Canadian waters were responded to in accordance with established Icebreaking Program levels of service.	Canadian Coast Guard officers in the region and from Headquarters liaise on a routine and regular basis with commercial shipping clients respecting icebreaking operations. This includes regular meetings in each region in the lead-up to each ice season, and a post mortem meeting at the end of each ice season.
Marine Communication and Traffic Services - Canadian Coast Guard Radio Communications Charges	Where the service is available⁴ ship to shore, and shore to ship public correspondence communications are facilitated 24 hours a day, 7 days a week, in accordance with established Marine Communication and Traffic Services levels of service.	1,322 ship to shore/shore to ship telephone calls were placed via CCG personnel in accordance with Marine Communication and Traffic Services levels of service.	The fees in place were established in 1994 and have remained unadjusted since then.
Hydrography — Sale of paper charts and publications through a network of licensed Chart Dealers	Updated CHS Nautical Products will be provided in accordance with established levels of service that ensure the timeliness and accessibility of these products. Looking to core elements of CHS's Levels of Service, clients can expect that critical information will be published initially within 4 months of receiving this new source information; that these critical information updates will be made to both the paper and digital product lines within one month of each other; that release of new editions of paper and digital products will be synchronized within three months of each other; and that Chart Dealer requests for products will be shipped within 5 working days following receipt of the order, 85% of the time.	CHS achieved its targets for processing and disseminating critical information. On average, updates were issued to clients within 3.3 months of receiving the new information. This same critical information was promulgated to both paper and digital product lines within 1 week of each other on average. The average lapse time between release of new editions for paper and digital products was one month. Orders for products were shipped within 5 working days 95 % of the time.	CHS's Levels of Service were developed in consultation with CHS clients, the Levels of Service Advisory Panel and the Canadian Marine Advisory Council (CMAC) between 2005 and 2007. CHS reports to the Advisory Panel and CMAC annually on progress made in meeting the levels of service standards as well as the publishing of Level of Service targets and results online at Nautical Charts and Services.
Fees charged for the processing of Access requests filed under the Access to Information Act	Response provided within 30 days following receipt of request; the response time may be extended pursuant to Section 9 of the Access to Information Act. Notice of extension to be sent within 30 days after receipt of request. The Access to Information Act provides fuller details.	Statutory deadlines were met 87% of the time.	The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken by the Department of Justice and the Treasury Board Secretariat for amendments done in 1986 and 1992.

¹ As established pursuant to the Policy on Service Standards for External Fees: service standards may not have received parliamentary review; and may not respect all performance standard establishment requirements under the User Fees Act (e.g. international comparison; independent complaint address).
² Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.
³ Seaway maintenance takes user delays into consideration. Ship loading capacity was not affected by shallow water in the seaway.
⁴ The cessation of the Canadian Coast Guard commercial public correspondence service has commenced as of December 31, 1999, in selected areas, based upon the demand for the service and the availability of alternate service delivery methods.

Other Information

Canadian Coast Guard Fees: Canadian Coast Guard is conducting a review of Levels of Service (LOS) to validate the LOS and service standards provided. Clients will be closely engaged in this process. The scope of the LOS covers all main CCG activities for which LOS are appropriate, regardless of whether there are external charges associated with them.

Access Fees: Commercial fishing licence fees and recreational fishing licence fees identified in the User Fees Table under Fisheries Management are not reflected in the External Fees Table, as reflect the value of the privilege/benefit of access to a valuable natural resource owned by all Canadians. Decisions that could come out of DFO's Fisheries Renewal initiative and Commercial Fishing Licence Fee Review could inform what future role and links should be made between access fees and service standards. The Pacific Salmon Conservation Stamp also has an access element, but is primarily designed to support salmon restoration and enhancement initiatives. The Sport Fishing Advisory Board of BC supports the licence and salmon stamp fees. Additional details for the Pacific Salmon Conservation Stamp.

Status Report on Projects Operating with Specific Treasury Board Approval

The Department's project approval authority is:

$2 million for new Information Technology projects
$5 million for replacement Information Technology projects
$20 million for all other projects.

**($ millions)**
Project	Original Estimated Total Cost¹	Revised Estimated Total Cost²	Actual Total Cost³	2009-10
Project	Original Estimated Total Cost¹	Revised Estimated Total Cost²	Actual Total Cost³	Main Estimates	Planned Spending	Total Authorities	Actual	Expected Date of Close-out⁴
Polar Class Icebreaker	800.0	800.0	2.4	0.0	7.7	6.0	2.4	2016-17
Offshore Fishery Science Vessels⁵	187.0	244.0	4.0	0.0	4.2	1.3	1.3	2014-15
Mid-shore Patrol Vessels⁶	212.5	227.0	28.6	6.5	12.4	19.6	19.6	2013-14
Offshore Oceanographic Science Vessel⁷	108.9	144.4	1.5	1.3	3.0	2.0	0.8	2014-15
SABS - New Science Building and Wet Lab Construction	39.9	54.8	19.6	17.4	17.4	17.4	12.0	2013-14
MCTS - Communications Control System Equipment Replacement	42.1	47.8	1.9	0.4	0.4	0.4	0.4	2015-16
Pangnirtung	28.3	43.3	4.2	0.0	7.0	7.6	4.2	2013-14
Automatic Identification System (AIS - Security Funding)	20.0	25.0	16.3	8.9	8.9	8.9	5.4	2011-12
Configuration Management and Technical Data Management Systems	10.3	10.3	1.0	0.3	0.3	0.3	0.3	2013-14

¹ Very first Treasury Board Expenditure Authority decision for total project cost.
² Most recent Treasury Board Expenditure Authority decision for total project cost.
³ Include the current year.
⁴ Fiscal year.
⁵ $187 million was announced in Budget 2005 for the acquisition of 2 Offshore Fishery Science Vessels, additional funding was announced in 2007 for a third vessel.
⁶ $212.5 million was for 12 vessels, a revision was made in 2007 for market price increases in the amount of $14.5 million to build 9 vessels.
⁷ $108.9 million was announced in Budget 2007 to build 1 vessel, an additional $35.5 million was reallocated from the Offshore Fishery Science Vessels.

Status Report on Major Crown Projects

Mid-Shore Patrol Vessels

Description

The Mid-Shore Patrol Vessels (MSPV) project will acquire up to 9 Mid-Shore Patrol Vessels for the Canadian Coast Guard (CCG) Fleet - five of the nine MSPV will be used primarily to support the Conservation and Protection Program in the Maritimes, Quebec and Pacific Regions. The other four vessels will be used in a joint program with the Royal Canadian Mounted Police (RCMP) to enhance maritime security along the Great Lakes – St. Lawrence Seaway system. This project serves two purposes:

Fleet Renewal - the acquisition of conservation and Protecction patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; and
Maritime Security - the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

Project Phase

The MSPV Project is currently in the Implementation phase.

**Leading and Participating Departments and Agencies**
Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; RCMP; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.

**Prime and Major Subcontractor(s)**
Prime Contractor	Irving Shipbuilding Inc. P.O. Box 9110, 3099 Barrington Street Halifax, Nova Scotia B3K 5M7 Operating as: Halifax Shipyard
Major Subcontractor	International Contract Engineering, Damen, Lloyd's Register, MTU

Project Outcomes

The MSPV project supports the Fleet Renewal Objectives of the Canadian Coast Guard.

No specific outcomes other than project milestones had been developed for the MSPV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

CCG had originally planned to procure 12 new Mid-Shore patrol vessels. Following the cancellation of two Requests for Proposal solicitations in 2007 and 2008, CCG successfully issued a third RFP in March 2009. In September 2009, a contract was awarded to Irving Shipbuilding Inc. for the procurement of 9 MSPVs, all that could be maintained within the funding envelope. To meet program requirements, vessel life extensions will be undertaken on 3 existing vessels.

All 2009-10 objectives for the MSPV project were achieved.

Detailed vessel specification and vessel baseline is nearing completion and fabrication of the first of the 9 MSPVs is scheduled to begin in the first half of 2010-11.

Industrial Benefits

Canadian industry will benefit from this project. The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional allocation of industrial benefits is monitored by Industry Canada.

**Major Milestones**
Major Milestone	Date
Preliminary Project Approval	August 2005
Effective Project Approval	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval - to include 4 additional vessels identified in Budget 2007	December 2007
2nd RFP issued (cancelled)	August 2008
3rd RFP issued	March 2009
First Vessel Delivery	Fall 2011
Delivery of final MSPV	Summer 2014

Offshore Fisheries Science Vessels

Description

The Offshore Fisheries Science Vessels (OFSV) project will acquire three OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three aging Coast Guard ships on the east and west coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase

The OFSV Project is currently in the design phase.

**Leading and Participating Departments and Agencies**
Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

**Prime and Major Subcontractor(s)**
Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The OFSV project supports the Fleet Renewal Objectives of the Canadian Coast Guard.

No specific outcomes other than project milestones had been developed for the OFSV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

During 2009-10, the concept design work was finalized and associated Design Instructions and Guidance were developed.

The spring 2009 decision to move from a one stage contract process to a two-stage Design then Build process delayed the OFSV contract award expected for 2009-10. This approach was adopted to increase project management efficiencies within the approved funding envelope and consists of contracting the development of a design with associated construction specifications and cost estimate, then using this information as the basis to advance into the construction contract phase. The design contract is now expected to be awarded in 2010-11.

The OFSV is currently in the design phase. Project milestones have been revised and all vessels are expected to be delivered by 2015.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

**Major Milestones**
Major Milestone	Date
Preliminary Project Approval	October 2005
Amended Preliminary Project Approval	November 2006
Effective Project Approval – Target Date	July 2007
Amended Effective Project Approval – to include 4 additional vessels identified in Budget 2007	June 2009
Effective Project Approval and Authority to Contract	Fall 2010
Contract Award	2009
First Vessel Delivery	2011
Delivery of final OFSV	2014

Offshore Oceanographic Science Vessel

Description

The Offshore Oceanographic Science Vessel (OOSV) project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel - CCGS Hudson. This vessel was built in 1963 and its replacement is critical to fulfilment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the east coast of Canada.

Project Phase

The OOSV Project is currently in the definition phase.

**Leading and Participating Departments and Agencies**
Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Environment Canada; NRCan; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

**Prime and Major Subcontractor(s)**
Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The OOSV project supports the Fleet Renewal objectives of the Canadian Coast Guard.

No specific outcomes other than the project milestones had been developed for the OOSV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

All 2009-10 objectives for the Offshore Oceanographic Science Vessel project were achieved.

During 2009-10, the concept design work was finalized and the Work Scope definition and the associated Design Instructions and Guidance were developed.

The OOSV Project is currently in the design phase and a contract will be issued in 2010 for the development of the detailed design contract. Project milestones have been revised and delivery of the vessel is now anticipated for 2013.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

**Major Milestones**
Major Milestone	Date
Preliminary Project Approval	July 2008
Effective Project Approval and Authority to Contract – Target Date	Spring 2010
Contract Award	Fall 2010
Delivery of Offshore Oceanographic Science Vessel	2012

Polar Icebreaker Project

Description

The new Polar Icebreaker is expected to be delivered in time for the decommissioning of the CCGS Louis S. St-Laurent. This new polar icebreaker will help strengthen Canada's Arctic sovereignty and will be able to operate in the Arctic in more severe weather conditions and for a longer period of time - 3 seasons instead of the current 2 seasons.

Project Phase

The Polar Icebreaker Project is currently proceeding in the definition phase.

**Leading and Participating Departments and Agencies**
Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment Canada; National Defence.

**Prime and Major Subcontractor(s)**
Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The Polar Icebreaker project supports the Fleet Renewal objectives of the Canadian Coast Guard, and supports the Government's Northern Strategy.

No specific outcomes other than defined objectives and project milestones have been developed for the Polar Icebreaker project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to DFO's Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

All 2009-10 objectives and milestones for the Polar Icebreaker project were achieved.

In 2009-10, following Preliminary Project Approval by Treasury Board, the Polar Icebreaker project activities included completion of the Mission Profile, stakeholder consultations and validation of operational and science requirements. Currently planned for 2010-11 is the development of an in-house conceptual design in preparation for detailed design work to follow.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

**Major Milestones**
Major Milestone	Date
Preliminary Project Approval	June 2009
Design Contract Awards Target Date	2011
Effective Project Approval - Target Date	2013
Contract Award (Construction)	2013
Delivery of Polar Icebreaker	2017

Details of Transfer Payment Programs

Aboriginal Aquatic Resource and Oceans Management

Start Date: 2005-2006

End Date: Ongoing

Description: Launched in October 2004, the Aboriginal Aquatic Resource and Oceans Management (AAROM) Program provides for Capacity Building and Collaborative Management initiatives that support the involvement of Aboriginal groups, working together usually in a single watershed area, to obtain access to technical, scientific and administrative expertise in order to facilitate their participation in multi-stakeholder and other decision-making processes used to manage aquatic resources and ocean spaces.

Aboriginal groups transition from Capacity Building into Collaborative Management.

Provisions of Contribution Agreements under AAROM may include:

establishing AAROM collaborative management structures or AAROM bodies;
accessing skilled professional, administrative and technical expertise from within the Aboriginal community or other external sources but excluding public office holders;
developing and delivering training to Aboriginal communities that allows them to participate in the management of local fisheries;
participating in aquatic resource and oceans management planning in collaboration with DFO, through development of resource and oceans management plans and coordination of community input into the development of plans;
developing or providing input into the development of models, structures and processes to guide the interactions of external bodies and agencies with the respective Aboriginal group;
planning and holding consultation sessions with member communities on AAROM-related issues;
participating in various government technical committees and other multi-stakeholder mechanisms;
developing, implementing and monitoring AAROM capacity building strategies;
developing enforcement capacity including Aboriginal Fishery Officers and upgrading the skills of Aboriginal Fishery Guardians;
collaborating in scientific research efforts related to aquatic resource and oceans management;
participating in and providing input to various aquatic and oceans resource policy and management processes;
undertaking scientific research activities to support appropriate watershed/ecosystem-based management efforts, including the collection and gathering of Aboriginal Traditional Knowledge (ATK);
conducting community outreach, stewardship and awareness activities;
conducting liaison activities with other relevant/interested parties;
developing protocols on ATK - dealing with new and innovative approaches to collect, analyze and integrate this information into environmental and habitat assessments and management practices;
ongoing program planning, administration and reporting activities of the AAROM Collaborative Management body; and
negotiations and implementation of related AAROM agreements (and associated protocols) for which DFO is a signatory.

AAROM is applicable in areas where DFO manages the fishery, and where land claim agreements (including modern treaties) addressing those matters covered under AAROM are not in place. Where the Aboriginal group has signed a comprehensive land claims agreement, and one or more of the matters covered by the AAROM Program are not dealt with in the agreement, the group would be eligible to apply for support in those matters not covered.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: In 2009-10, DFO had 9 Capacity Building Agreements, and 25 Collaborative Management Agreements and two Umbrella Agreement. These agreements encompass approximately 319 Aboriginal communities nationally as well as three Native Councils in Atlantic Canada. AAROM agreements have increased collaboration amongst Aboriginal communities and strengthened the relationship between communities and DFO. While the structure of the Collaborative Management agreements varied between Aboriginal organizations, the majority of the agreements focused on enhancing core scientific, technical and administrative capacity of the Aboriginal organizations allowing them to obtain competencies that will enable them to strengthen their ability to participate in aquatic management and oceans resources decision making. Under the AAROM program Aboriginal Organizations have created approximately 263 full time positions. AAROM has also provided approximately $164,360 thousand to Aboriginal Organizations for commercial access including licenses, quotas, vessels and gear.

Program Activity: Fisheries Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	13.1	14.4	11.1	13.1	13.1	-2.0
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	13.1	14.4	11.1	13.1	13.1	-2.0

Comment(s) on Variance(s): The variance is due to the transfer of funding between the Aboriginal Fisheries Strategy program and the AAROM program.

Audit Completed or Planned: An audit was completed in 2009-10.

Evaluation Completed or Planned: An evaluation is planned for 2013-14.

Aboriginal Fisheries Strategy

Start Date: 1992

End Date: Ongoing

Description: Launched in 1992, the Aboriginal Fisheries Strategy (AFS) provides for negotiated arrangements with Aboriginal groups around the harvesting, use and management of Aboriginal food, social and ceremonial fisheries and, where applicable, communal commercial fisheries.

In 1994, DFO introduced a commercial access component to the AFS, the Allocation Transfer Program (ATP). The ATP facilitates the voluntary retirement of commercial fishing licenses and the issuance of communal licenses to eligible Aboriginal groups in a manner that does not add to the existing effort on the resource.

Provisions of negotiated fisheries agreements under the AFS may include:

a harvest allocation to the Aboriginal group for FSC purposes;
terms and conditions pertaining to communal fishing licences;
enforcement provisions, including the training and engagement of Aboriginal Fisheries Guardians;
arrangements for the co-management and stewardship of fisheries resources and their supporting habitats, including the restoration and protection of species at risk;
co-management projects for the improvement of the management of fisheries generally, such as scientific research, stock assessment, fish enhancement and habitat management; and
communal commercial fishing arrangements including the transfer of vessels and gear as well as support for fisheries-related economic opportunities (e.g., demonstration fishery projects, aquaculture development, business planning support, etc.).

Where Agreements pertaining to the FSC Fisheries cannot be concluded between DFO and an Aboriginal group, DFO will issue to the group a communal fishing license that establishes the terms and conditions of its FSC fishery.

The AFS is applicable where DFO manages the fishery and where a fisheries management regime has not already been established under a land claims settlement.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: In 2009-10, DFO entered into approximately 138 AFS Agreements with Aboriginal organizations in all DFO regions. These agreements facilitated economic opportunities as well as Aboriginal participation in the management of their fisheries and other aquatic resource management.

Regarding economic development, DFO acquired 55 Commercial licences, mainly in Quebec, Newfoundland and Labrador and Pacific Regions and approximately $1.1M worth of Halibut Quota in the Pacific Region.

AFS agreements provided for management of the FSC fisheries, largely through the Guardian program which comprised of the enforcement component. In 2009 and 2010, 18 Guardians were retrained by DFO to upgrade skills in carrying out enforcement functions, i.e.; issuing warnings, inspecting fish and gear, catch monitoring.

Participation in other aquatic resource management activities included co-management and science related activities such as stock assessment, fish enhancement, counting fences, habitat related work, and river/stream/brook improvement projects.

These economic related and aquatic management activities from AFS agreements created approximately 1,600 seasonal jobs in areas described above.

Program Activity: Fisheries and Aquaculture Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	32.5	29.8	33.7	32.4	32.1	1.6
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	32.5	29.8	33.7	32.4	32.1	1.6

Comment(s) on Variance(s): The variance is due to the transfer of funds between the Aboriginal Fisheries Strategy program and the AAROM program.

Audit Completed or Planned: An audit was completed in 2007-08.

Evaluation Completed or Planned: An evaluation is planned for 2013-14.

Atlantic Integrated Commercial Fisheries Initiative

Start Date: 2007-08

End Date: 2011-12

Description: The long-term goal of the Atlantic Integrated Commercial Fisheries Initiative (AICFI) is to continue to create positive conditions towards concluding longer-term DIAND-led arrangements for MMFNs. The immediate goals are to assist MMFNs to:

Enhance capacity in governance and management of MMFN commercial fishing enterprises;
Develop effective participation in sustainable, integrated commercial fisheries with a greater role in fisheries management; and
Help diversify existing fishing enterprises to support the full realization of economic potential of existing fishing licences.

AICFI has been developed to proceed along two separate paths of deployment. The first is through individual MMFNs where the individual First Nations can apply for funding for components of the initiative provided they have completed the prerequisite planning as per component requirements. This will allow First Nations the ability to personalize their development to their own needs and development schedule.

The second path of deployment is through associated aggregate bodies which may apply for funding to proceed with the development of the Commercial Fishing Enterprise (CFE) Business Development Unit as well as co-management and various training and mentoring projects. Aggregate bodies will develop expertise that can be shared with individual First Nations which will provide smaller First Nations a larger voice within the commercial fishery as well as provide a higher value for dollar on mentoring and training sessions.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: AICFI has been extremely effective in carrying out its deliverables to date. For example, the target of 12 First Nations to have completed a CFE BDP for 2009-10 and, for 15 First Nations to have completed a CFE BDP in 2010-11, have already been met. In fact, of the eligible 34 First Nations, 24 have completed a CFE BDP, which is a key element of enhanced governance and commercial fisheries development and capacity building.

The target of 75% of eligible First Nations communities having representation in the co-management of the integrated commercial fishery by a Commercial Fisheries Liaison Coordinator (CFLC) in 2009-10 has also been met. Twenty-five communities are engaged in co-management through representation of a CFLC, providing MMFN communities with access to important industry information and participation in fishery advisory committee activities.

Sixteen First Nations have received assistance under the Commercial Fisheries Development Opportunity Source (CFDOS), increasing access of MMFNs to opportunities for business development and diversification and enhanced long-term sustainability of the CFE. This is significant because an up-to-date CFE BDP must be completed and an effective FMS in operation before an application can be made under Component 4 – CFDOS activities.

These outcomes are a testament to the effectiveness of the AICFI program. These results have also impacted positively on MMFN communities and provide incentive to continue to strive to reach their goals.

Program Activity: Fisheries and Aquaculture Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	0.3	2.9	9.6	12.1	12.1	-2.5
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	0.3	2.9	9.6	12.1	12.1	-2.5

Comment(s) on Variance(s): The variance is due to the transfer of funds between the AICFI program and the Pacific Integrated Commercial Fisheries Initiative.

Audit Completed or Planned: An audit was completed in 2007-08.

Evaluation Completed or Planned: An evaluation was completed in 2009-10.
An evaluation is planned for 2013-14.

Pacific Integrated Commercial Fisheries Initiative

Start Date: July 2007

End Date: March 31, 2012

Description: On July 16, 2007, the Minister of Fisheries and Oceans announced the Pacific Integrated Commercial Fisheries Initiative (PICFI), which is designed to support increased First Nations participation in integrated commercial fisheries, where all commercial harvesters fish under common and transparent rules, a higher standard of accountability for all resource users, and strengthened collaboration and cooperation amongst all fishery interests.

PICFI is a $175 million, 5-year initiative, developed to support the implementation of much needed reforms which includes the following four distinct yet integrated elements:

Increased First Nation Participation in Integrated Commercial Fisheries, BC-wide, in advance of treaties, through the Voluntary relinquishment of Commercial Licenses and quota to support First Nations self-sufficiency through economic development, build a foundation for future treaties and bring First Nations more fully into integrated management processes;
First Nation Capacity Building to support the development of First Nations commercial fisheries enterprises so that the commercial fishery access provided is effectively utilized and managed;
Fisheries Accountability Measures to support enhanced fisheries monitoring, catch reporting, greater enforcement and enable the development of a traceability system all fishery participants are confident that integrated management plans are being respected and that the fisheries resource is being managed in a sustainable manner; and
New Pacific Co-Management Models to establish new mechanisms for increasing the collaboration of resource users in commercial fisheries decision-making to facilitate joint problem-solving among interested groups and better achieve sustainable resource management approaches that meet conservation goals.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: Access Relinquishment Element

224 signed Relinquishment agreements from 2008 until April 2010
258 licences, 6.3% of halibut quota, 4.78 % of sablefish, and 0.24% of ground fish trawl quota relinquished representing a value of $59.4 M in licences / quota relinquished
Solid Relinquishment process developed not only for the use of acquiring PICFI access, but is being currently used by other DFO Aboriginal programs such as AFS/ATP

Access Distribution

22 PICFI applicants have been recipients of Short Term Distribution PICFI acquired halibut and sablefish quota, representing a total of 46 First Nation bands and over 42,000 people. Most of these groups also received short-term opportunities to access prawn and herring.
4 FN aggregates in the BC Interior and 1 aggregate in the Lower Fraser have been recipients of salmon access for demo fisheries.
Short term and long term distribution strategies, data bases and models have been developed

Co-Management Element

8 signed Co-mgmt contribution agreements with individual or aggregate (AAROM) First Nations, including one with the First Nation Fisheries Council
2 signed contribution agreements signed with non-First Nation / multi-interest organizations to support the advancement of PICFI co-management objectives
6 additional contribution agreements under Co-Management Element under negotiation / consideration
PICFI is contributing significantly to DFO-First Nation co-management relationships and arrangements. At a Regional (province-wide) level, PICFI (in addition to AAROM) is supporting the operating capacity and a number of specific projects and activities associated with the First Nation Fisheries Council. This includes $300k in funding for a First Nations co-management coordinator and two co-management analysts that are engaging First Nations across Pacific Region and working with DFO to strengthen co-management relationship and address key issues raised on the part of First Nations. PICFI's Element Lead for Co-Management and the Director, Special Projects are working closely with the Council in the formation of several DFO-First Nation Working Groups, including one on Co-Management that is working to strengthen co-management arrangements across the Province.
At a sub-Regional or watershed level, PICFI is supporting the development of a new DFO-First Nations co-management process for Fraser salmon. When complete, the process being lead by DFO and the Fraser River Aboriginal Working Group (FRAWG) will establish a new structure for DFO and First Nations from the Fraser watershed and marine (approach) areas to collaborate on the pre-season and in-season management of Fraser salmon. The principles and approaches being developed through this process are also informing the development of co-management processes elsewhere. For example, Vancouver Island participants in the FRAWG process are already working with DFO staff to build a similar process specific to Vancouver Island First Nations that encompasses the management of all species (i.e. beyond salmon).
PICFI is also supporting DFO-First Nations engagement at a local level, primarily through funding for a number of co-management / data coordinator positions with First Nations and First Nation aggregates (e.g. AAROM bodies). These exact roles and responsibilities for these positions differ depending on the level of capacity for the First Nation, key priorities, etc; however, they are all supporting the capacity of First Nations to engage with one another and with DFO around fisheries and resource management.
PICFI is contributing significantly to multi-sector co-management and governance processes, primarily through contributions to multi-interest processes such as the Integrated Salmon Dialogue Forum (ISDF) and the Fraser River Salmon Table. In particular, the ISDF and the Governance Tools Working Group are bringing together representatives of First Nations, the harvest sectors and environmental interests to develop a Governance Guidebook and Framework that will help shape DFO's engagement and collaborative management moving forward.
In addition to considerable work with First Nations, PICFI is supporting work with the recreational and commercial harvest sectors to build principles and approaches that will guide their engagement with DFO and other interests. For example, PICFI has supported the development of a Recreational Fisheries Vision and Action Plan, which contains several elements related to collaborative management and governance.
PICFI co-management is also supporting a number of specific projects or initiatives that increase the capacity of DFO and other sectors to come together and collaborate on decisions regarding fisheries management.

Enhanced Accountability Element

For compliance and enforcement standards, A generic framework to provide consistent monitoring standards has been developed and is currently included in a draft discussion paper, “Strategic Framework for Fisheries Monitoring and Catch Reporting in the Pacific Fisheries”. This document has been reviewed by the Regional Strategic Directions Committee and is currently undergoing minor edits prior to forwarding to NHQ
Enhanced catch monitoring standards have been established for all Commercial salmon demonstration fisheries, all other quota-based fisheries, and Commercial integrated groundfish fisheries
Successful completion of training for 32 catch monitors In July – Aug 2010

Capacity Building Element

Expression of Interest (EOI) Application Phase (Step 1 of PICFI)

Original application closure date of August 31, 2009 was revised to October 31, 2009
the lengthened application phase resulted in an additional 11 applications to PICFI for a total of 36 PICFI EOIs, representing over 100 BC First Nations.
13 EOIs have been approved; another 11 under analysis and consideration for support

Evaluation Processes and Teams

Processes were developed to analyze EOIs, and business and training plans, both for internal and external evaluation teams
An independent External Evaluation Team (EET)was established, comprised of 3 professionals from 3 Aboriginal Capital Corporations and a Consultant who acts as the facilitator and coordinator of the team
The EET provides ongoing independent analysis and recommendations on business plans

Training

Pilot phase in 2008-09 for mentor training resulted in 6 Certified At Sea Mentors; most mentors active/ will be active in PICFI supported CFEs
Training guides, templates, information and linkages created and in use by PICFI clients
Evaluation process developed and in use for analyzing client training plans

Business and Training Plan Development (Step 2 of PICFI)

10 PICFI clients have advanced to the Step 2 business and training plan development phase with support through Contribution Agreements
4 business plans have been received; 3 of those plans evaluated by an established External Evaluation Team (EET) and resubmitted to PICFI based on EET recommendations
14 other applicants' Expressions of Interest are being evaluated and considered for business and training plan development support

Legal Entity Formation / Project Implementation (Steps 3 and 4 PICFI)

Currently analyzing and negotiating contribution and access support for 3 aggregate PICFI applicants

Program Activity: Fisheries and Aquaculture Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	12.2	26.3	38.9	32.6	23.2	15.7
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	12.2	26.3	38.9	32.6	23.2	15.7

Comment(s) on Variance(s): The variance is due to a re-profile of $9.5 million to future years, a funding loan to the Atlantic Integrated Commercial Fisheries Initiative program and a general lapse.

Audit Completed or Planned: An audit was completed in 2007-08.

Evaluation Completed or Planned: An evaluation is planned for 2010-11.

Atlantic Lobster Short Term Transitional Measures

Start Date: September 2009

End Date: March 31, 2010

Description: This is one of two programs to support Canada's Atlantic Lobster Fishery. This short-term, one year, grant program was provided to qualified low-income lobster licence holders in Atlantic Canada and Quebec (individuals) who experienced financial hardship due to the global economic downtown of 2007-2009. In the case of Aboriginal Communal Licences, assistance was provided to the Aboriginal organization licence holder authorized to fish lobster.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: During the course of the program, 1,703 applications were approved for a grant in an amount determined by their recorded lobster landed values for 2008-09.

636 applicants in the Gulf Region were approved for a total of $3,431,100
419 applicants in the Maritimes Region were approved for a total of $2,117,822
562 applicants in Newfoundland and Labrador Region were approved for a total of $2,630.144
86 applicants in Quebec Region were approved for a total of $412,582

Program Activity: Fisheries and Aquaculture Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	14.0	14.0	8.6	5.4
Total Contributions	—	—	—	—	—	—
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	—	—	14.0	14.0	8.6	5.4

Comment(s) on Variance(s): The variance is the result higher volume landings by harvesters than were forecast when the program was designed. This increase in landed amount mitigated in part the lower price and resulted in a lesser decrease in landed value in 2009 than expected, which is directly linked to the amount of payments made under this program.

Audit Completed or Planned

Evaluation Completed or Planned: An implementation review of this program was completed in June 2010, titled Review of Short Term Transitional Measures and Atlantic Lobster Sustainability Measures.

Atlantic Lobster Sustainability Measures

Start Date: September 2009

End Date: March 31, 2014

Description: The Atlantic Lobster Sustainability Measures (ALSM) program supports the restructuring of Canada's Atlantic Lobster Fishery. The ALSM will provide support for the development and implementation of lobster sustainability plans which will help the fishery to make changes that will enhance its economic prosperity (through self-rationalization) and long-term sustainability (through mandatory and possible, additional conservation measures).

ALSM is a five-year, $50M initiative with an overall goal to support the implementation of sustainability plans within Lobster Fishing Areas by providing funding to supplement and help leverage other sources of funds obtained by harvesters, such as provincial programs, financial institutions, etc. The outcomes of sustainability plans will help achieve the conservation measures necessary for a sustainable future and enable and provide incentive for the long-term structural change needed within the lobster fishery. This structural change, through rationalization, is necessary to improve the economic viability across the sector and help ensure long term sustainability. An economically viable sector will, in turn, be more willing to invest in strengthened conservation measures. In addition, when self-rationalization is on a significant scale, it may provide conservation benefits as well as economic benefits.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Results Achieved: Following the late September 2009 announcement launching the Atlantic Lobster Sustainability Measures, the program was operationalized with Atlantic and Quebec regions meeting with their respective fish harvester organizations. As a result, two Sustainability Plans and two Funding Proposals were developed and approved by March 31, 2010.

Program Activity: Fisheries and Aquaculture Management

**($ millions)**
	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	3.9	6.5	3.2	0.7
Total Other types of transfer payments	—	—	—	—	—	—
Total Program Activity(ies)	—	—	3.9	6.5	3.2	0.7

Comment(s) on Variance(s): The variance is due to re-profile of $2.6 million and a general lapse.

Audit Completed or Planned

Evaluation Completed or Planned: An evaluation is planned for 2013-14.

An implementation review of this program was completed in June 2010, titled Review of Short Term Transitional Measures and Atlantic Lobster Sustainability Measures.

Up-front Multi-year Funding

Pacific Salmon Endowment Fund

Start date: February 2001

End date: None

Description: The Pacific Salmon Endowment Fund, supported by a $30 million federal endowment from Fisheries and Oceans Canada in 1999 (TB approval), and managed by a non profit organization (Pacific Salmon Endowment Fund Society), uses interest income proceeds from the fund to support specific plans and activities managed by the Pacific Salmon Foundation to sustain salmon resources and their habitat. The mission of the Pacific Salmon Endowment Fund is to: conserve and rebuild Pacific salmon populations through strategic and focused efforts where people and resources are mobilized to work together to achieve common goals.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Program Activity: Fisheries and Aquaculture Management

Summary of Annual Plans of Recipient: —

Link to Recipient's Website: —

**($ millions)**
Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10¹	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
—	—	—	—	—	—

¹ The 2010-11 Report on Plans and Priorities indicated that the Pacific Salmon Endowment Fund Forecast Spending for 2009-10 would be $1.0 million. The $1.0 million in Forecast Spending is for the Fraser Basin Initiative administered by the Pacific Salmon Foundation but is considered a separate initiative.

Comment(s) on Variance(s): —

Significant Evaluation finds by the recipient during the reporting year and future plan: —

Significant Audit findings by the recipient during the reporting year and future plan: —

Atlantic Salmon Conservation Foundation

Start date: January 2007

End date: None

Description: The Atlantic Salmon Endowment Fund is a one time conditional grant that will be invested in order to provide long-term funding for the operation of the Atlantic Salmon Conservation Foundation (ASCF). The ASCF will invest the funds and use the income to assist community groups in the restoration, protection and improved conservation of the Atlantic salmon resource in Atlantic Canada and Quebec. This will promote projects in research, conservation, habitat restoration and enhancement for the attainment of healthy and sustainable wild Atlantic salmon stocks and the projects the ASCF funds.

Strategic Outcome: Sustainable Fisheries and Aquaculture

Program Activity: Fisheries and Aquaculture Management

Summary of Annual Plans of Recipient: The Atlantic Salmon Conservation Foundation.

Link to Recipient's Website: The Atlantic Salmon Conservation Foundation.

**($ millions)**
Actual Spending 2007-08	>Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
—	—	—	—	—	—

Comment(s) on Variance(s): —

Significant Evaluation finds by the recipient during the reporting year and future plan: —

Significant Audit findings by the recipient during the reporting year and future plan: —

Horizontal Initiatives

Health of the Oceans (HOTO)

Name of Lead Department(s): Fisheries and Oceans Canada

Lead Department Program Activity: Oceans Management

Start Date: April 1, 2007

End Date: March 31, 2012

Total Federal Funding Allocation (Start to End Date): $61.5 million

Description (including Funding Agreement): Building on the achievements of the Oceans Action Plan, the Health of the Oceans Initiative is a five-year, $61.5 million commitment by five departments — Fisheries and Oceans Canada (DFO), Transport Canada, Environment Canada, Parks Canada and Indian and Northern Affairs Canada — to improve the health of the ocean environment. For its part, DFO will receive $23.2 million to support its protection and conservation work. Key DFO initiatives include establishing six new Marine Protected Areas (MPA) under the Oceans Act, advancing a national MPA network, conducting scientific research to support designation of the new MPAs, creating four new national Oceans Centres of Expertise, and enhancing spill-response capacity and emergency planning in the Arctic Ocean. For a complete list, see the table below.

DFO will co-ordinate the entire Health of the Oceans initiative. This will include bi-annual performance monitoring, the preparation of summary annual reports and preparation for a final summative evaluation.

Shared Outcome(s):

Four new Oceans Centres of Expertise
Federal Marine Protected Area Strategy: finalization of planning guidelines for federal MPA network
Federal Marine Protected Area Strategy: preparation of a status report of federal MPA
Federal-Provincial-Territorial Marine Protected Areas network (2012)
Marine Protected Areas establishment
Collaboration with the World Wildlife Fund-Canada
Delivery of a suite of indicators to assess and monitor Arctic ecosystems
Integrated Oceans Management and Canadian Environmental Assessment Act (CEAA) assessment tools linkage

Governance Structure(s): This initiative is subject to interdepartmental government through the Assistant Deputy Ministers Interdepartmental Committee on Oceans, supported by a shadow Director General Committee. This Governance structure reviews the initiatives on a regular basis including review and approval of annual reports to Ministers on the progress of this initiative.

**($ thousands)**
Federal Partners/Program Activity	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending 2009-10	Actual Spending 2009-10	Expected Results 2009-10	Results Achieved 2009-10
Fisheries and Oceans
Oceans Management	Federal Marine Protected Areas Strategy Implementation in DFO	1,250.0	250.0	218.1¹	Advance the creation by 2012 of a Federal Network of Marine Protected Areas that contributes to the health of Canada's oceans, established and managed within an integrated oceans management framework.	F/P/T collaboration through workshops, meetings and conference calls, particularly in the development of a national Framework for Canada's MPA network. Finalized an internal document entitled the "Federal Guide to Collaborative Planning of Marine Protected Areas” to foster collaboration amongst the three federal marine protected area agencies when identifying and selecting potential marine protected areas.
	Development of a Federal-Provincial-Territorial MPA Network	2,500.0	725.0	701.3²	Significant progress in planning and advancement of a National (federal-provincial-territorial) Marine Protected Area Network in Canada's three oceans.	Development of a Policy Framework for Canada's national network of MPAs, including Questions & Answers. Engagement Strategy was developed to ensure adequate and appropriate level of stakeholder involvement in the Framework's development. The inventory of Federal-provincial-territorial (F/P/T) MPAs in Canada, in collaboration with F/P/T colleagues, has been completed. It has been summarized in an MPA "Spotlight" report to be release on World Oceans Day (8 June 2010). Cooperated with DFO Science sector in planning a June 2009 National CSAS workshop on MPA network design.There will ultimately be 13 bioregional networks of MPAs in Canada's network of MPAs.
	Arctic Council - Ecosystem Projects	1,000.0	275.0	146.2³	A State of the Arctic Basin Report and use of common eco-system monitoring strategies in shared and boundary waters by 2012; Canada's participation in expert workshops and major conferences on ecosystem approach for advancing EBM concepts and approaches, promoting Canada's leadership in EBM applied to the Arctic, and sharing information and practices with other circumpolar countries, including US; Article on EBM in Canada's Arctic published in expert journals or workshop proceedings; A suite of indicators for monitoring and assessing ecosystem status and trends, socio-economic aspects and governance structures in place in Arctic; and; The Arctic Council's Report on Best Practices in Ecosystem-based Oceans management in the Arctic (key product of the 2009 Ministerial Meeting)	A working map of Arctic large marine ecosystems (LMEs) was developed and will serve as the basis for the development of summary documents outlining the state and condition of biodiversity within the LME. Domestic discussions were undertaken to review the usefulness of the US Canada Pilot project in the Beaufort Sea which aims to test the LME indicators by applying them to monitor, assess and report on marine ecosystems for management purposes.
	Oceans Centres of Expertise (Coastal, Corals, Data Integration, TEK)	3,000.0	700.0	751.9⁴	Establishment of four centres of excellence. Development and implementation of common tools and approaches in the five LOMAs to protect deep sea corals and sponge reefs, incorporate traditional knowledge, develop information management and exchange standards and accelerate progress in addressing coastal management issues.	Centres of Expertise established in 2008-09. In 2009-10, the COEs have broadened engagement with stakeholders: academics, NGOs, communities, provinces, private sector, etc., as applicable. Consulted with stakeholders and other experts (including international experts) to inform development of tools and mechanisms, establishment of yearly deliverables and activities and next steps. Published a Status Report on Coral and Sponge Conservation in Canada which provides a broad overview of the relevant policy, legislation, conservation, science and research. Three regions (Newfoundland and Labrador, Nova Scotia, and Pacific LOMAs) have drafted initial reports on the state of the oceans - these are to be published in the next fiscal year.
	Collaboration with World Wildlife Fund (WWF)	213.0	42.6	42.6	Greater contribution by environmental non-governmental organizations to the Health of the Oceans	WWF-Canada participates in meetings, workshops and committees by providing input and expertise on activities of the DFO Newfoundland and Labrador (NL) Region: Development and identification of conservation priorities associated with the Placentia Bay/Grand Banks Large Oceans Management Area (PB/GB LOMA), including a risk assessment Planning process of the PB/GB Integrated Management Plan Marine Protected Areas planning and Area of Interest (AOI) selection process for the PB/GB LOMA Cod recovery planning Development and implementation of a Cold Water Coral Conservation Strategy National Science Advisory Process concerning the occurrence, sensitivity, and ecological function of corals, sponges, and hydrothermal vents Review existing NL region coral data; Identify research gaps and opportunities; and Identify long-term objectives
	Gulf of Maine (at DFO)	750.0	147.5	132.6⁵	This initiative builds on the existing successful trans-boundary collaboration and management of Groundfish stocks through the Canada-U.S. Steering Committee, and the excellent cooperation between states and provinces through the Gulf of Maine Council. Based on DFO's national standard, a literature review and project work plan for a joint CA-US Bay of Fundy/Gulf of Maine Ecosystem Overview and Assessment Report was developed as part of the 2005 Oceans Action Plan.	A joint peer review process of the Ecosystem Overview has been established under the direction of the Canada US Transboundary Steering Committee Plan to develop a State of the Environment Report (SOER). This report will build on the Ecosystem Overview Report and will identify key priorities for the Bay of Fundy/Gulf of Maine through a collaborative partnership with the Gulf of Maine Council. A Context Document for the report has been prepared and a format for the SOER has been approved. Initial theme papers topics have been identified and some have been completed in draft format. Discussions are underway to explore linkages between regional coastal and oceans governace mechanisms in Canada and the US.
	Marine Protected Areas Establishment	5,250.0	1,500.0	1,495.9⁶	Six new MPAs will be designated by 2012 and a national monitoring and reporting system will be implemented for all Oceans Act MPAs.	All regions have analysed their existing Ecological and Biological Significant Areas (EBSAs) to outline a list of candidate Areas of Interest (AOIs). Regions conducted consultations seeking support for the designation of one AOI. 6 out of 7 regions have identified and initialled an AOI site for further analytical work, namely the AOI overview and assessment reports.
Habitat Management	Integrated Management and Canadian Environmental Assessment Act Assessment Tools Linkages	1,450.0	425.0	313.6⁷	Processes and tools developed to support integrated oceans management and promote Health of the Oceans bridged with Canadian Environmental Assessment Act project-specific environmental assessment and strategic environmental assessment to address ecosystem-level cumulative impacts.	Analysis of CEAA in relationship to integrated management (IM) was conducted - this provided an understanding of CEAA and how it relates to oceans and coastal management. Presentations to diverse groups were conducted to demonstrate benefits and opportunities for application of IM tools and processes. Advancements made on the development of methodologies for the identification of social and cultural spatial values as a unified tool in support of improved environmental assessment and Integrated Oceans Management. Development of guidance in the preparation of Pathways of Effects models to enhance understanding of specific and cumulative effects impacts of human use activities in coastal and marine ecosystems.
Science for Healthy and Productive Aquatic Ecosystems	Ecosystem Science Support and Advice on Health of the Oceans	5,500.0	1,100.0	1,100.0	Science advice on Marine Protected Areas and on priority sector-specific impacts and mitigation.	Science advice completed regarding the design parameters of the MPA network. Sound scientific footing provided for a number of the HOTO initiatives: MPA designation (including Ecosystem Overview Reports, Eclolgically and biologically significant areas (EBSAs) and monitoring (including indicators and thresholds), MPA network design, state of the ocean reporting, etc.
Canadian Coast Guard	Spill Capacity and Emergency Response Strategy	2,260.0	750.0	1,061.0⁸	Canada's spill response capacity in the Arctic assessed, equipment procured and systems established to respond to the unique risks.	The acquisition of containers, shore kits and beach flushing kits was completed. Identification of sites in communities for equipment location and the site requirements has been completed. CCG is planning for the distribution of the systems to the communities - to be completed in 2010-11.
Environment Canada
Biodiversity and Corporate services	Federal Marine Protected Areas Strategy - Implementation in EC	1,250.0	250.0	161.6⁹	Advance the creation by 2012 of a Federal Network of Marine Protected Areas that contributes to the health of Canada's oceans, established and managed within an integrated oceans management framework.	Continued collaboration with Fisheries and Oceans Canada and Parks Canada: Provided input into the final version of the "Federal Guide to Collaborative Planning of Marine Protected Areas”. Participated in workshops to provide status updates and/or inform the planning and progress of the national marine protected area network planning (bioregional network planning). Development of an inventory of existing FPT marine protected areas. The inventory was summarized and compiled into a document entitled "Spotlight on Marine Protected Areas in Canada". Expanded on the Conservation Areas Reporting and Tracking System (CARTS) to create one central database for all marine protected areas in Canada - CARTS Marine. Development of an associated interface for the planning, reviewing and reporting of marine protected areas in Canada Coordinated and/or provided input into the planning of Oceans Day events, including a video project presenting the MPA concept, public events at the Canadian Museum of Nature and an evening reception on Parliament Hill. Advanced an Education and Engagement Strategy and scoped target audiences. Provided input into the development of outreach tools such as booklets, posters and web Portal.
Biodiversity and Corporate services	Marine Wildlife Areas Establishment	2,000.0	507.0	471.7¹⁰	Both the National Wildlife Area at Sable Island and Marine Wildlife Area at Scott Islands will be ready for designation by 2012, and a contribution will have been made to the Federal Marine Protected Area Network building process.	Scott Island Discussions on Terms of Reference for Steering Committee were undertaken with other federal departments, First Nations and the Province of BC. Draft terms of reference for Advisory Committee have been developed. An analysis and literature reviews of ecological and socio-economic information were undertaken. Meetings were held with First Nations, ENGOs, local and regional government to provide information on the status of the designation and to solicit input on their level of engagement. Sable Island A federal-provincial task force was struck in January of 2010 to review the option of designating Sable Island as a National Wildlife Area versus a National Park. A recommendation to the Minister was made for designation as a National Park. Environment Canada's role will change to one of meditating the transfer of facilities and land administration from DFO to Parks Canada and assisting with the development of a management plan and associated consultations. Several governance structures were created or rejuvenated to meet objectives: Federal-Provincial Steering Committee met in October to review Terms of Reference and progress on the activities; Federal Sable Island Working Group has been altered to be co-chaired by DFO and EC. A number of real property issues relating to current infrastructure, licenses of occupation, squatters, and disposition of assets were identified. (Legal liabilities need to be resolved to transfer Sable Island from DFO to EC.) EC continues to lead the Working Group of Real Property Experts. PCA representatives have been added. Surveys of the Island have been completed and analysed; the information is being circulated.
Improved knowledge and information on weather and environmental conditions influence decision making and Corporate services	Sable Island Weather Station	4,000.0	800.0	800.0	The risk of loss of life or property due to weather events is reduced for mariners, Canadian citizens and the international community, by producing more accurate weather forecasts and warnings using data from the Sable Island Weather Station. The understanding of upper atmospheric conditions and the flow of airborne pollutants and greenhouse gases is improved, by enabling scientific research through the continued existence of the Sable Island weather Station infrastructure. The unique and fragile ecosystem of Sable Island is conserved by protecting it from human degradation.	Maintenance and repairs of facilities and infrastructure have been carried out to ensure functionality of the weather station. On-going support provided to operate upper air and surface weather programs as well as atmospheric and other scientific research programs. Provided facility support including building space, transportation, electricity, water, communications and tools. Provided municipal services including electricity/energy generation; water supply; sewage disposal; waste disposal; transport and storage; transportation of freight, supplies, equipment and personnel; communication and data services; and road maintenance. Planning and education activities were carried out. Emergency and safety services provided to local operators, visitors, as well as other federal departments and industry.
Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes and Corporate services	Gulf of Maine (at EC)	751.0	148.0	148.0	Increased support for the Gulf of Maine Council and implementation of the joint Canada-US five-year action plan that includes implementation of regional strategies for adaptation to climate change, indicators development, education and engagement and joint monitoring for toxic contaminants in the trans-boundary ecosystem.	Secretariat function was provided for the Gulf of Maine Council: conference calls; logistical and administrative support for meetings; annual work plans and budgets compiled; tracking of action items, assignments and deadlines Sampling plan for select contaminants developed and distributed; coordination of sampling program and participants; sampling initiated; and contaminant sample processing and analysis organized Coordination of committee and subcommittee conference calls for the Ecosystem Indicator Partnership; on-line 'journal entries' prepared and posted to provide information on indicator data collection and/or use in the Gulf of Maine; presentations to various stakeholders were conducted to solicit their engagement. Revised Indicator Reporting Tool released Background reports produced on possible effects of extreme precipitation and other climate change impacts on streamflow and water quality in the Gulf of Maine.
Parks Canada Agency
Heritage Places Establishment	Federal Marine Protected Area Strategy Implementation in Parks Canada	1,250.0	361.0	230.1¹¹	Advance the creation by 2012 of a Federal Network of Marine Protected Areas that contributes to the health of Canada's oceans, established and managed within an integrated oceans management framework.	Regional analysis and research studies have been completed to identify Parks Canada's representative marine areas in order to participate in the national network of MPAs. Continued collaboration with Fisheries and Oceans Canada and Environment Canada: Provided input into the final version of the "Federal Guide to Collaborative Planning of Marine Protected Areas”. Participated in workshops to provide status updates and/or inform the planning and progress of a national marine protected area network planning (bioregional network planning). Development of an inventory of existing federal, provincial, and territorial marine protected areas. The inventory was summarized and compiled into a document entitled "Spotlight on Marine Protected Areas in Canada". Coordinated and/or provided input into the planning of Oceans Day events/activities. Advanced an Education and Engagement Strategy and scoped target audiences. Provided input into the development of outreach tools such as booklets, posters and web Portal. Hosted a workshop to develop the Public Outreach Education Strategy for the national network of MPAs. This meeting resulted in an action plan with specific target audiences and activities to be developed over the next few years.
Heritage Places Establishment	National Marine Conservation Area in Lancaster Sound	5,000.0	1,250.0	0¹²	By 2012, achieve a full understanding of the feasibility of establishing a National Marine Conservation Area in Lancaster Sound with the support of Inuit, Nunavut and key sectoral stakeholders, leading to the conservation of a significant representative component of Canada's marine environment and a clear demonstration of Arctic sovereignty in the Northwest Passage.	A Memorandum of Understanding between Government of Canada, Government of Nunavut and Qikiqtani Inuit respecting a study to examine the feasibility of establishing a national marine conservation area in Lancaster Sound was signed in December 2009. Work and trilateral meeting are continuing with respect to matters such as staffing, study area limits, and project completion
Transport Canada
Transportation Safety and Security and Internal Services	Enforcement of Ballast Water Regulations	4,500.0	966.5	1,010.2¹³	Enforcement of regulations that minimize the risk of harmful aquatic organisms and pathogens from being introduced through ship ballast water to waters under Canadian jurisdiction.	Provided equipment required to verify compliance with regulations, developed tools to assess risk of ballast water drawn from specific ports and developing treatment options for ballast water. Updates to the ballast water enforcement program were done in 2009-10 and a national work group comprised of Regional inspectors was held in Ottawa and follow up trips to Quebec and Halifax. New ballast water test equipment for inspectors was purchased. Studies were completed to support the ongoing regulatory development work Ratified the IMO Ballast Water Management Convention Updated the national ballast water database with the backlog of reporting forms from vessels. This data is used by both inspectors for enforcment and scientists for their work in invaisive species. All ballast water reports received from inbound vessels were screened by inspectors and action was taken as required to bring any vessels into compliance with the regulations. Initial tank compliance of vessels coming from overseas continues to be very high, at 97% with corrective action taken for the remaining 3%
	Pollution Prevention - Surveillance	13,000.0	3,181.6	3,181.6	Enforcement of Canada's pollution prevention regulations in the Pacific, Arctic, East Coast Waters, the Gulf of St. Lawrence and the St. Lawrence Estuary.	Three NASP aircraft conducted surveillance in Atlantic, Quebec, Ontario and Pacific Region. TC completed a total of 2274.1 productive patrol hours nationally for 2009/10. The number of spills detected during 2009-10 was 109.
	Pollution Prevention - Dash 7 Outfitting	5,000.0	100.0	167.3¹⁴	Enforcement of Canada's pollution prevention regulations in the Pacific, Arctic, East Coast Waters, the Gulf of St. Lawrence and the St. Lawrence Estuary. Modernization of the current Dash 7 surveillance aircraft to a standard equal to the Dash 8 surveillance aircraft dedicated for use on the East and West Coast.	The Maritime Surveillance System has been installed on the Dash 7 pollution surveillance aircraft. Training, installation and technical support have been completed. The Dash 7 aircraft was deployed to the Arctic on June 29 and conducted surveillance in support ot pollution, ice, marine security and Fisheries initiatives The Central and Arctic Marine Aerial Reconnaissance Team provided 513.7 productive patrol hours during 2009-10. The project is now completed.
	Arctic International Marine Shipping Assessment	550.0	50.0	153.3¹⁵	An assessment of projected shipping activities and the associated environmental, social and economic impacts and risks as reduced sea ice may lead to increased marine transport in the Arctic	The report was completed in the previous fiscal year. Funds received for this year were used to publish the English version of the AMSA report and to translate the report into French and Inuktituk. This project is now completed.
	Pollution Prevention - Ship Waste Reduction Strategy	800.0	200.0	172.5¹⁶	Adequate reception facilities for wastes; appropriate legislation and standards	The Vessel Waste Technology Study contract was awarded to a contractor. The aim of this study is to examine available technology to manage wastes onboard vessels and in remote port communities, with the goal of providing some recommended options for large and small scale vessels and ports. A contract was awarded to PWGSC to esitimate typical quantities of wastes generated on board vessels of different sizes and types. This study will provide vessel operators and marine shore facilities with a better understanding of the quantities of wastes generated on board vessel to assist in the selection of appropriate treatment technologies. Work was undertaken to update Transport Canada's Boating Safety Guide with environmental protection information and to publish this updated guide nationally.
Indian and Northern Affairs Canada
Northern land Resources	Arctic Marine Shipping Assessment/ Protection of the Arctic Marine Environment from land-based sources of pollution	175.0	0.0	0.0	An expanded arctic regional program of action on land-based sources of pollution; a greater understanding of Aboriginal Arctic marine resource use; and a greater understanding of the social, economic and environmental impacts from changing shipping patterns on northern and aboriginal communities	This initiative was completed in 2008-09.
Total		61,449.0	12,480.5	12,459.5

¹ Balance of funds was reallocated to other Ocean Program priorities.
² Balance of funds was reallocated to other Ocean Program priorities.
³ The need to resolve legal issues, failure to secure the collaboration of foreign partners in the planned cross-jurisdicational pilot project, and loss of the project manager all contributed to a lack of activity on this project.
⁴ Extra funds were allocated from A-base.
⁵ Salary funds were transferred to another HOTO priority to offset deficit.
⁶ Activities differed from one region to the next; some had positive variance while others were negative, depending on the status of their activities.
⁷ The variance in funds spent is due to delays in delivering activities. Alignment and education of partners mainly contributed to the delays incurred.
⁸ Funds were carried-over from 2008-09. The resulting balance was not all spent, a portion of the funds for 2009-10 was sumitted for a carry-forward to 2010-11.
⁹ Approximately 5 months of salary funds were not spent during a maternity/parental leave. Similarly, the variance in O&M can be explained by staff turnover and a resulting capacity gap.
¹⁰ The balance of funds lapsed due to delays in processing a contract.
¹¹ Unavoidable delays in activities resulted in a carry-forward.
¹² The carry-forward from 2008-09, in addition to most funds being unspent in 2009-10 resulted in a positive variance (more than the planned spending was requested for carry-forward to 2010-11). Delays in the signing of the MOU are mostly responsible for the delays for this project.
¹³ Additional funds were spent for this project. Major contributing factors are overtime incurred and readjustment of projects to allow for increased compliance activities.
¹⁴ Additional funds spent for this initiative were the result of a carry-forward from 2008-09.
¹⁵ “Pressure funding” was received from Transport Canada to cover costs of translation.
¹⁶ The balance of funds lapsed because of delays in awarding a contract.

Comments on Variances: See footnotes

Results Achieved by Non-federal Partners (If Applicable): n/a

Contact Information:
Harvey Brodkin
Fisheries and Oceans Canada
200 Kent Street
Ottawa, Ontario
K1A 0E6
Telephone: 613-991-6692
Email: Harvey.Brodkin@dfo-mpo.gc.ca

Green Procurement

Meeting Policy Requirements

Has the Department incorporated environmental performance considerations in its procurement decision-making processes?

Yes

Summary of Initiatives to Incorporate Environmental Performance Considerations in Procurement Decision-making Processes

DFO continues the life-cycle assets management of personal computers on an annual basis and is in the process of instituting an E-waste campaign to:

extend the useful life of electronics;
promote the recycling of raw materiel; and
ensure timely disposal of personal computers through the Computers for Schools program.

The DFO Green Procurement policy is currently being updated to reflect current initiatives within the Government's Sustainable Development Strategy (e.g .Green House Gas Emission reduction for transportation emission). The DFO policy, links to Public Works and Government Services Canada's (PWGSC) mandatory Green Procurement Standing Offers and green procurement documentation from other government departments, including (PWGSC) and Environment Canada, are available via links on DFO's Materiel Management intranet site.

An updated listing of PWGSC Green Procurement Standing Offer supplies by commodity was prepared and will be distributed to all departmental employees in 2010-11.

Work was undertaken to create data fields in the Department's Financial Administrative System that facilitate reporting on green procurement activities.

Where feasible, DFO is supporting and promoting the purchase of hybrid vehicles.

In cooperation with PWGSC's Office of Greening Government Operations, DFO has committed to manage electrical and electronic waste more efficiently.

Results Achieved:

Data fields were modified in the Purchase Order Module of Oracle to record green procurement activities giving DFO the capacity to report on green procurement beginning in 2010-11.

Contributions to Facilitate Government-wide Implementation of Green Procurement:

Beginning in 2011-12, DFO will be able to capture Green Procurement Acquisition Card transactions for a better reporting ability that does not currently exist.

Green Procurement Targets

Has the Department established green procurement targets?

In progress

Summary of Green Procurement Targets:

DFO will establish a green procurement activity baseline, using data from 2009-10, to create green procurement targets for 2010-11 and onward. Hence, the base-year for Green Procurement under the Federal Sustainable Development Strategy will be 2009-10.
Volume of procurement for 2009-10:
Number of documents issued: 435
Total dollar value: $3,912,870

Results Achieved:

The E-Waste process, led by the Office of Greening Government Operations, to re-use and re-cycle existing assets was completed in early 2010-11, and will be operational at DFO in 2011-12.

Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

Seventh Report of the Senate Standing Committee on Fisheries and Oceans: Controlling Canada's Arctic Waters: Role of the Canadian Coast Guard (December 2009 and April 2010)
The Committee tabled this report and requested a Government Response in December 2009. This request was cancelled following the prorogation of Parliament in January 2010. In order to receive a Government Response, the Committee re-tabled the report in April 2010. Recommendations: That all foreign vessels that enter Canada's Arctic waters be required to report to NORDREG, regardless of vessel size or tonnage. That, as a precautionary measure at least in the interim period before the new naval Arctic/Offshore Patrol Ships (AOPS) are built and deployed, the Government of Canada: arm Canada's Coast Guard icebreakers with deck weaponry capable of giving firm notice, if necessary, to unauthorized foreign vessels for use in the Northwest Passage; and provide on-board personnel from appropriate government agencies that have the authority to enforce Canadian domestic laws with small arms. That the Government of Canada proactively engage the United States in bilateral discussions to resolve their dispute over the Northwest Passage. That a Cabinet committee on Arctic affairs, chaired by the Prime Minister and comprising the Ministers of Indian and Northern Affairs, Fisheries and Oceans, National Defence, Environment Canada, Natural Resources, Foreign Affairs and International Trade, and Transport Canada, be created to further develop national Arctic policy, in cooperation with the three territorial governments, and to ensure that attention to northern issues and Arctic policy is maintained. That until the CP-140 Auroras are replaced by new patrol aircraft in 2020, the Government of Canada consider expanding maritime air surveillance in Canada's North either by increasing Canadian Forces capability or contracting specially equipped aircraft from the private sector. That the “Arctic Vision” include the notion of the Coast Guard, along with the Canadian Forces, having a year-round northern operation administered in the North to demonstrate that Canada is serious about protecting Canadian interests and the interests of Canada's northern residents. That Canada develop a long-term plan and provide the funding necessary for the acquisition of a suitable number of new multi-purpose polar icebreakers capable of operating year-round in its Arctic Archipelago and on the continental shelf. That the Canadian Coast Guard identify areas in the Arctic at high risk of a major cargo or oil spill, assess current response capabilities, and communicate the results of the assessment to Canada's northern communities. The Government of Canada should provide funding to train northern residents in the use of oil spill containment equipment for oil spills close to shore. That additional federal funding be provided to the Canadian Coast Guard Auxiliary for the purchase of tangible assets directly related to the provision of search and rescue services. Report: Controlling Canada's Arctic Waters: Role of the Canadian Coast Guard Government Response: The Government Response will be tabled in October 2010.

Seventh Report of the Senate Standing Committee on Fisheries and Oceans:
Controlling Canada's Arctic Waters: Role of the Canadian Coast Guard (December 2009 and April 2010)

The Committee tabled this report and requested a Government Response in December 2009. This request was cancelled following the prorogation of Parliament in January 2010. In order to receive a Government Response, the Committee re-tabled the report in April 2010.

Recommendations:

That all foreign vessels that enter Canada's Arctic waters be required to report to NORDREG, regardless of vessel size or tonnage.
That, as a precautionary measure at least in the interim period before the new naval Arctic/Offshore Patrol Ships (AOPS) are built and deployed, the Government of Canada:
1. arm Canada's Coast Guard icebreakers with deck weaponry capable of giving firm notice, if necessary, to unauthorized foreign vessels for use in the Northwest Passage; and
2. provide on-board personnel from appropriate government agencies that have the authority to enforce Canadian domestic laws with small arms.
That the Government of Canada proactively engage the United States in bilateral discussions to resolve their dispute over the Northwest Passage.
That a Cabinet committee on Arctic affairs, chaired by the Prime Minister and comprising the Ministers of Indian and Northern Affairs, Fisheries and Oceans, National Defence, Environment Canada, Natural Resources, Foreign Affairs and International Trade, and Transport Canada, be created to further develop national Arctic policy, in cooperation with the three territorial governments, and to ensure that attention to northern issues and Arctic policy is maintained.
That until the CP-140 Auroras are replaced by new patrol aircraft in 2020, the Government of Canada consider expanding maritime air surveillance in Canada's North either by increasing Canadian Forces capability or contracting specially equipped aircraft from the private sector.
That the “Arctic Vision” include the notion of the Coast Guard, along with the Canadian Forces, having a year-round northern operation administered in the North to demonstrate that Canada is serious about protecting Canadian interests and the interests of Canada's northern residents.
That Canada develop a long-term plan and provide the funding necessary for the acquisition of a suitable number of new multi-purpose polar icebreakers capable of operating year-round in its Arctic Archipelago and on the continental shelf.
That the Canadian Coast Guard identify areas in the Arctic at high risk of a major cargo or oil spill, assess current response capabilities, and communicate the results of the assessment to Canada's northern communities. The Government of Canada should provide funding to train northern residents in the use of oil spill containment equipment for oil spills close to shore.
That additional federal funding be provided to the Canadian Coast Guard Auxiliary for the purchase of tangible assets directly related to the provision of search and rescue services.

Report:
Controlling Canada's Arctic Waters: Role of the Canadian Coast Guard

Government Response:
The Government Response will be tabled in October 2010.

Ninth Report of the House of Commons Standing Committee on Fisheries and Oceans: Operation and Maintenance of Small Craft Harbours (Adopted by the Committee on December 8, 2009; Presented to the House on December 10, 2009)
Recommendations: That Fisheries and Oceans Canada update its estimate of the cost of bringing the core harbours to an acceptable state of repair. That Fisheries and Oceans Canada prepare a plan to bring the core harbours to an acceptable state of repair. That Fisheries and Oceans Canada incorporate a requirement for maintaining safe facilities when preparing its plan to bring the core harbours to an acceptable state of repair. That Fisheries and Oceans Canada ensure that there are adequate funds in both its operations and maintenance, and its capital budgets for recurrent dredging and related activities. The amount of this funding should take into consideration the increasingly stringent environmental standards and regulations that apply to these activities, especially with respect to the protection of the fish habitat. That Fisheries and Oceans Canada adopt a longer-term approach to solving dredging problems that could be addressed by permanent structures such as breakwaters. That, where there is a need to dredge beyond the harbour basin and the entrance channel for which the Small Craft Harbours Program is responsible, Fisheries and Oceans Canada coordinate with the authorities responsible for dredging these waterways to ensure safe access to the harbour at all times. That Fisheries and Oceans Canada help Harbour Authorities to recognize and respond to the local effects of climate change. That Fisheries and Oceans Canada analyze harbours scheduled for divestiture or decommissioning, with a view to identifying those that could remain in the department's inventory and be maintained because of their value as safe havens in case of bad weather conditions. That Fisheries and Oceans Canada assist Harbour Authorities with the development of short-term and long-term business plans as well as capitalization plans. That Fisheries and Oceans Canada assist Harbour Authorities in their efforts to raise funds from other sources, including federal, provincial, and private sources. That Fisheries and Oceans Canada assist and encourage Harbour Authorities to establish partnerships with local organizations where possible. That the limit on contract signing authority for Harbour Authorities managers be increased from $40,000 to $200,000 for minor capital and repair projects, and that, where possible, priority be given to hiring local enterprises to do the approved work. That Fisheries and Oceans Canada streamline the review and approval process of Small Craft Harbours projects to ensure that projects be approved, announced, and tendered by June 1st, where possible, and That Fisheries and Oceans Canada provide clear and transparent accounting of funds related to project costs and administrative costs associated with the department or Public Works and Government Services Canada. That Fisheries and Oceans Canada review and modernize the Fishing and Recreational Harbours Act and its regulations to reflect the current management reality of small craft harbours. In particular, definitions of “Harbour Authority,” “derelict,” and “harbour manager” should be included or updated. That Fisheries and Oceans Canada consider legislative changes to facilitate the removal of abandoned and derelict vessels from its harbours. That the Government of Canada honour in a timely manner its financial commitments to undertake environmental remediation projects needed prior to harbour divestiture. That the Government of Canada recognize the heritage and cultural attributes of fishing harbours as well as their tourism and economic value, and That the Government of Canada allow Harbour Authorities to be eligible to receive financial support from federal economic development agencies for projects intended to take advantage of those attributes. That Fisheries and Oceans Canada review the mandate of the Small Craft Harbours Program to acknowledge that, while it primarily provides harbours that are open, safe and in good repair for the commercial fishing industry, harbours are used and managed for other purposes, including those of recreational and Aboriginal fisheries, commercial sport fishing and emerging sectors such as aquaculture. That Fisheries and Oceans Canada facilitate access to federal non-DFO wharves through interdepartmental agreements when local harbour users identify a need that cannot be otherwise accommodated by the neighbouring Small Craft Harbours infrastructure. That Fisheries and Oceans Canada work with Indian and Northern Affairs Canada to improve their coordination in establishing and maintaining harbour facilities in Aboriginal communities. That Fisheries and Oceans Canada confirm its objective to construct all the harbours identified for small communities in Nunavut. That the Department review the assessment of harbour needs for communities such as Arctic Bay, Grise Fjord and Resolute. Report: Small Craft Harbours: An Essential Infrastructure Managed By and For Fishing Communities Government Response: Government of Canada Response to the Report of the Standing Committee on Fisheries and Oceans: Small Craft Harbours: An Essential Infrastructure Managed By And For Fishing Communities

Ninth Report of the House of Commons Standing Committee on Fisheries and Oceans:
Operation and Maintenance of Small Craft Harbours (Adopted by the Committee on December 8, 2009; Presented to the House on December 10, 2009)

Recommendations:

That Fisheries and Oceans Canada update its estimate of the cost of bringing the core harbours to an acceptable state of repair.
That Fisheries and Oceans Canada prepare a plan to bring the core harbours to an acceptable state of repair.
That Fisheries and Oceans Canada incorporate a requirement for maintaining safe facilities when preparing its plan to bring the core harbours to an acceptable state of repair.
That Fisheries and Oceans Canada ensure that there are adequate funds in both its operations and maintenance, and its capital budgets for recurrent dredging and related activities. The amount of this funding should take into consideration the increasingly stringent environmental standards and regulations that apply to these activities, especially with respect to the protection of the fish habitat.
That Fisheries and Oceans Canada adopt a longer-term approach to solving dredging problems that could be addressed by permanent structures such as breakwaters.
That, where there is a need to dredge beyond the harbour basin and the entrance channel for which the Small Craft Harbours Program is responsible, Fisheries and Oceans Canada coordinate with the authorities responsible for dredging these waterways to ensure safe access to the harbour at all times.
That Fisheries and Oceans Canada help Harbour Authorities to recognize and respond to the local effects of climate change.
That Fisheries and Oceans Canada analyze harbours scheduled for divestiture or decommissioning, with a view to identifying those that could remain in the department's inventory and be maintained because of their value as safe havens in case of bad weather conditions.
That Fisheries and Oceans Canada assist Harbour Authorities with the development of short-term and long-term business plans as well as capitalization plans.
That Fisheries and Oceans Canada assist Harbour Authorities in their efforts to raise funds from other sources, including federal, provincial, and private sources.
That Fisheries and Oceans Canada assist and encourage Harbour Authorities to establish partnerships with local organizations where possible.
That the limit on contract signing authority for Harbour Authorities managers be increased from $40,000 to $200,000 for minor capital and repair projects, and that, where possible, priority be given to hiring local enterprises to do the approved work.
That Fisheries and Oceans Canada streamline the review and approval process of Small Craft Harbours projects to ensure that projects be approved, announced, and tendered by June 1st, where possible, and
That Fisheries and Oceans Canada provide clear and transparent accounting of funds related to project costs and administrative costs associated with the department or Public Works and Government Services Canada.
That Fisheries and Oceans Canada review and modernize the Fishing and Recreational Harbours Act and its regulations to reflect the current management reality of small craft harbours. In particular, definitions of “Harbour Authority,” “derelict,” and “harbour manager” should be included or updated.
That Fisheries and Oceans Canada consider legislative changes to facilitate the removal of abandoned and derelict vessels from its harbours.
That the Government of Canada honour in a timely manner its financial commitments to undertake environmental remediation projects needed prior to harbour divestiture.
That the Government of Canada recognize the heritage and cultural attributes of fishing harbours as well as their tourism and economic value, and
That the Government of Canada allow Harbour Authorities to be eligible to receive financial support from federal economic development agencies for projects intended to take advantage of those attributes.
That Fisheries and Oceans Canada review the mandate of the Small Craft Harbours Program to acknowledge that, while it primarily provides harbours that are open, safe and in good repair for the commercial fishing industry, harbours are used and managed for other purposes, including those of recreational and Aboriginal fisheries, commercial sport fishing and emerging sectors such as aquaculture.
That Fisheries and Oceans Canada facilitate access to federal non-DFO wharves through interdepartmental agreements when local harbour users identify a need that cannot be otherwise accommodated by the neighbouring Small Craft Harbours infrastructure.
That Fisheries and Oceans Canada work with Indian and Northern Affairs Canada to improve their coordination in establishing and maintaining harbour facilities in Aboriginal communities.
That Fisheries and Oceans Canada confirm its objective to construct all the harbours identified for small communities in Nunavut.
That the Department review the assessment of harbour needs for communities such as Arctic Bay, Grise Fjord and Resolute.

Report:
Small Craft Harbours: An Essential Infrastructure Managed By and For Fishing Communities

Government Response:
Government of Canada Response to the Report of the Standing Committee on Fisheries and Oceans: Small Craft Harbours: An Essential Infrastructure Managed By And For Fishing Communities

Sixth Report of Senate Standing Committee on Fisheries and Oceans: Proposed Changes to the Convention of the Northwest Atlantic Fisheries Organization (NAFO) (November 2009)
Recommendation: In light of the new Convention's potential to affect Canada's Atlantic fisheries and coastal communities for many generations to come, the committee asks that the government delay any immediate moves toward ratification and take the time to review the new agreement with the greatest care. Report: The Standing Senate Committee on Fisheries and Oceans Government Response: No Government Response requested

Sixth Report of Senate Standing Committee on Fisheries and Oceans:
Proposed Changes to the Convention of the Northwest Atlantic Fisheries Organization (NAFO) (November 2009)

Recommendation:
In light of the new Convention's potential to affect Canada's Atlantic fisheries and coastal communities for many generations to come, the committee asks that the government delay any immediate moves toward ratification and take the time to review the new agreement with the greatest care.

Report:
The Standing Senate Committee on Fisheries and Oceans

Government Response:
No Government Response requested

Eighth Report of House of Commons Standing Committee on Fisheries and Oceans: Amendments to the Northwest Atlantic Fisheries Organization Convention (Adopted by the Committee on November 17, 2009; Presented to the House on November 18, 2009; Concurred in by the House on December 10, 2009)
Recommendation: That, notwithstanding the motion adopted by the House of Commons Standing Committee on Fisheries and Oceans on October 8, 2009 and given the evidence heard by the Committee in March and May 2009 as well as the serious concerns expressed by various witnesses during hearings in October 2009, the Committee recommends that the Government of Canada not ratify the Amendment to the Convention on Future Multilateral Cooperation in the Northwest Atlantic Fisheries adopted by the General Council of the Northwest Atlantic Fisheries Organization (NAFO) in 2007, and that Canada notify NAFO of its objection to the amendment as per Article XXI of the Convention. Report: House of Commons - Eighth Report Government Response: No Government Response requested

Eighth Report of House of Commons Standing Committee on Fisheries and Oceans:
Amendments to the Northwest Atlantic Fisheries Organization Convention (Adopted by the Committee on November 17, 2009; Presented to the House on November 18, 2009; Concurred in by the House on December 10, 2009)

Recommendation:
That, notwithstanding the motion adopted by the House of Commons Standing Committee on Fisheries and Oceans on October 8, 2009 and given the evidence heard by the Committee in March and May 2009 as well as the serious concerns expressed by various witnesses during hearings in October 2009, the Committee recommends that the Government of Canada not ratify the Amendment to the Convention on Future Multilateral Cooperation in the Northwest Atlantic Fisheries adopted by the General Council of the Northwest Atlantic Fisheries Organization (NAFO) in 2007, and that Canada notify NAFO of its objection to the amendment as per Article XXI of the Convention.

Report:
House of Commons - Eighth Report

Government Response:
No Government Response requested

Seventh Report of House of Commons Standing Committee on Fisheries and Oceans: Amendments to the Northwest Atlantic Fisheries Organization Convention(Adopted by the Committee on October 8, 2009; Presented to the House on October 19, 2009)
Recommendation: Given the evidence heard by the House of Commons Standing Committee on Fisheries and Oceans at hearings in March, May and October 2009, and the serious concerns recently expressed by the Government of Newfoundland and Labrador, the Committee recommends that the Government of Canada not ratify the amendment to the Convention on future multilateral cooperation in the northwest altantic fisheries adopted by the General Council of the Northwest Fisheries Atlantic Organization (NAFO) in 2007, until the Standing Committee on Fisheries and Oceans has had an additional twenty-one (21) sitting days to study the matter further and to report the results of that study to the House. Report: House of Commons - Seventh Report Government Response: No Government Response requested

Seventh Report of House of Commons Standing Committee on Fisheries and Oceans:
Amendments to the Northwest Atlantic Fisheries Organization Convention(Adopted by the Committee on October 8, 2009; Presented to the House on October 19, 2009)

Recommendation:
Given the evidence heard by the House of Commons Standing Committee on Fisheries and Oceans at hearings in March, May and October 2009, and the serious concerns recently expressed by the Government of Newfoundland and Labrador, the Committee recommends that the Government of Canada not ratify the amendment to the Convention on future multilateral cooperation in the northwest altantic fisheries adopted by the General Council of the Northwest Fisheries Atlantic Organization (NAFO) in 2007, until the Standing Committee on Fisheries and Oceans has had an additional twenty-one (21) sitting days to study the matter further and to report the results of that study to the House.

Report:
House of Commons - Seventh Report

Government Response:
No Government Response requested

Sixth Report of House of Commons Standing Committee on Fisheries and Oceans: Atlantic Lobster Fishery (Adopted by the Committee on June 16, 2009; Presented to the House on June 18, 2009)
Recommendations: That the Government of Canada explore in cooperation with the lobster industry all the options to provide the industry bridge financing or loan guarantees that they need to get through the current global economic and financial crisis. That the Government of Canada encourage Export Development Canada to provide insurance on receivables to processors that export lobster products abroad. That Export Development Canada provide a report to the House of Commons Standing Committee on Fisheries and Oceans on its fishing industry portfolio. That the Government of Canada develop initiatives to increase access to credit for fishermen and fishing enterprises, as well as encourage private lenders to ease credit restrictions on the fishing sector. That the Government of Canada increase the visibility of existing specific federal financing programs for which fishermen are eligible, and that Fisheries and Oceans Canada play a coordinating role in that respect. That the Government of Canada in partnership with the lobster industry explore the idea of some form of income support for lobster fishermen to address immediate concerns. That Fisheries and Oceans Canada provide assistance to the lobster fishermen to reduce their costs. The review of the fishery licence fee structure should be expedited. That the Government of Canada, in partnership with all provincial governments and industry representatives encourage the creation of an Atlantic-wide multi-stakeholder marketing research and advertising council to promote Canadian lobster domestically and abroad. That Fisheries and Oceans Canada in partnership with the lobster industry explore the idea of a Canadian certification system for fishery products that would comply with the internationally established management guidelines on responsible fisheries. That Fisheries and Oceans Canada support the efforts of the lobster industry to obtain and maintain the international certification of their fishery for sustainable management. That the Government of Canada, in collaboration with the governments of the Atlantic Provinces and Qu�bec, support an industry-led rationalization plan for the Canadian lobster fishery (publicly-funded where appropriate) that must take into account regional needs and requirements. Report: The Canadian Lobster Fishery: Trapped in a Perfect Storm Government Response: Government of Canada Response to the Report of the House of Commons Standing Committee on Fisheries and Oceans: The Canadian Lobster Fishery: Trapped in a Perfect Storm

Sixth Report of House of Commons Standing Committee on Fisheries and Oceans:
Atlantic Lobster Fishery (Adopted by the Committee on June 16, 2009; Presented to the House on June 18, 2009)

Recommendations:

That the Government of Canada explore in cooperation with the lobster industry all the options to provide the industry bridge financing or loan guarantees that they need to get through the current global economic and financial crisis.
That the Government of Canada encourage Export Development Canada to provide insurance on receivables to processors that export lobster products abroad.
That Export Development Canada provide a report to the House of Commons Standing Committee on Fisheries and Oceans on its fishing industry portfolio.
That the Government of Canada develop initiatives to increase access to credit for fishermen and fishing enterprises, as well as encourage private lenders to ease credit restrictions on the fishing sector.
That the Government of Canada increase the visibility of existing specific federal financing programs for which fishermen are eligible, and that Fisheries and Oceans Canada play a coordinating role in that respect.
That the Government of Canada in partnership with the lobster industry explore the idea of some form of income support for lobster fishermen to address immediate concerns.
That Fisheries and Oceans Canada provide assistance to the lobster fishermen to reduce their costs. The review of the fishery licence fee structure should be expedited.
That the Government of Canada, in partnership with all provincial governments and industry representatives encourage the creation of an Atlantic-wide multi-stakeholder marketing research and advertising council to promote Canadian lobster domestically and abroad.
That Fisheries and Oceans Canada in partnership with the lobster industry explore the idea of a Canadian certification system for fishery products that would comply with the internationally established management guidelines on responsible fisheries.
That Fisheries and Oceans Canada support the efforts of the lobster industry to obtain and maintain the international certification of their fishery for sustainable management.
That the Government of Canada, in collaboration with the governments of the Atlantic Provinces and Qu�bec, support an industry-led rationalization plan for the Canadian lobster fishery (publicly-funded where appropriate) that must take into account regional needs and requirements.

Report:
The Canadian Lobster Fishery: Trapped in a Perfect Storm

Government Response:
Government of Canada Response to the Report of the House of Commons Standing Committee on Fisheries and Oceans: The Canadian Lobster Fishery: Trapped in a Perfect Storm

Fifth Report of Senate Standing Committee on Fisheries and Oceans: Crisis in the Lobster Fishery (June 2009)
Recommendations: That the Government of Canada act immediately to implement changes to the Employment Insurance program to address the problems created by low lobster prices specifically by: (a) allowing fish harvesters to qualify for EI benefits based on 2008 earnings; and (b) extending EI fishing benefits by five weeks. That the Minister of Fisheries and Oceans immediately enter into formal discussions with Atlantic fish harvester organizations and the provincial governments to develop a short-term assistance plan for the fishery. Further recommends a comprehensive plan for the lobster fishery, including voluntary fleet rationalization to reduce fishing capacity where needed. The federal government should contribute to the costs of removing lobster licences from the fishery. Report: The Standing Senate Committee on Fisheries and Oceans - Fifth Report Government Response: No Government Response requested

Fifth Report of Senate Standing Committee on Fisheries and Oceans:
Crisis in the Lobster Fishery (June 2009)

Recommendations:

That the Government of Canada act immediately to implement changes to the Employment Insurance program to address the problems created by low lobster prices specifically by: (a) allowing fish harvesters to qualify for EI benefits based on 2008 earnings; and (b) extending EI fishing benefits by five weeks.
That the Minister of Fisheries and Oceans immediately enter into formal discussions with Atlantic fish harvester organizations and the provincial governments to develop a short-term assistance plan for the fishery.
Further recommends a comprehensive plan for the lobster fishery, including voluntary fleet rationalization to reduce fishing capacity where needed. The federal government should contribute to the costs of removing lobster licences from the fishery.

Report:
The Standing Senate Committee on Fisheries and Oceans - Fifth Report

Government Response:
No Government Response requested

Fourth Report of Senate Standing Committee on Fisheries and Oceans: Nunavut Marine Fisheries: Quotas and Harbours (June 2009)
Recommendations: That the Government of Canada move forward to develop and implement, in collaboration with the Government of Nunavut, the harbour development plan recommended by the DFO–Nunavut Harbours Working Committee in its 2005 Nunavut Small Craft Harbours Report. That the Department of Fisheries and Oceans continue to assign 100% of the NAFO Division 0A turbot allocation to Nunavut. That, in NAFO Division 0B, the Department of Fisheries and Oceans continue its policy that no new access to 0B turbot be given to non-Nunavut interests until Nunavut has achieved a level of access to adjacent marine resources comparable to levels of access enjoyed by other coastal jurisdictions in their adjacent fisheries. That the Minister of Fisheries and Oceans put in place a policy giving Nunavut stakeholders the right of first refusal to purchase, at a competitive rate, all fishery quotas in Nunavut's adjacent waters that are transferred or sold. That, as a general principle, Inuit Qaujimajatuqangit, as an indispensable complement to scientific knowledge, always be given full consideration in fisheries decision-making. That, with respect to the Eastmain-1-A and Rupert Diversion Project, the Minister of Fisheries and Oceans indicate when and how the research and monitoring program outlined by the 2006 Federal Review Panel in Recommendation 34 will be implemented. That the Department of Fisheries and Oceans substantially increase its funding for exploratory research in Nunavut's adjacent waters, and that it commit to a multi-year, multi-species research program. That the Department of Fisheries and Oceans assess the impact of all vessel activity on whales and in concert with the Nunavut Wildlife Management Board, develop protective management measures, such as vessel exclusion zones at certain times of the year. Report: Nunavut Marine Fisheries: Quotas and Harbours Government Response: Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Nunavut Marine Fisheries: Quotas and Harbours

Fourth Report of Senate Standing Committee on Fisheries and Oceans:
Nunavut Marine Fisheries: Quotas and Harbours (June 2009)

Recommendations:

That the Government of Canada move forward to develop and implement, in collaboration with the Government of Nunavut, the harbour development plan recommended by the DFO–Nunavut Harbours Working Committee in its 2005 Nunavut Small Craft Harbours Report.
That the Department of Fisheries and Oceans continue to assign 100% of the NAFO Division 0A turbot allocation to Nunavut.
That, in NAFO Division 0B, the Department of Fisheries and Oceans continue its policy that no new access to 0B turbot be given to non-Nunavut interests until Nunavut has achieved a level of access to adjacent marine resources comparable to levels of access enjoyed by other coastal jurisdictions in their adjacent fisheries.
That the Minister of Fisheries and Oceans put in place a policy giving Nunavut stakeholders the right of first refusal to purchase, at a competitive rate, all fishery quotas in Nunavut's adjacent waters that are transferred or sold.
That, as a general principle, Inuit Qaujimajatuqangit, as an indispensable complement to scientific knowledge, always be given full consideration in fisheries decision-making.
That, with respect to the Eastmain-1-A and Rupert Diversion Project, the Minister of Fisheries and Oceans indicate when and how the research and monitoring program outlined by the 2006 Federal Review Panel in Recommendation 34 will be implemented.
That the Department of Fisheries and Oceans substantially increase its funding for exploratory research in Nunavut's adjacent waters, and that it commit to a multi-year, multi-species research program.
That the Department of Fisheries and Oceans assess the impact of all vessel activity on whales and in concert with the Nunavut Wildlife Management Board, develop protective management measures, such as vessel exclusion zones at certain times of the year.

Report:
Nunavut Marine Fisheries: Quotas and Harbours

Government Response:
Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Nunavut Marine Fisheries: Quotas and Harbours

Fifth Report of House of Commons Standing Committee on Fisheries and Oceans: Atlantic Lobster Fishery (Adopted by the Committee on May 7, 2009; Presented to the House on May 13, 2009)
Recommendation: That the government restore full funding to the Canadian Centre for Fisheries Innovation to enable this organisation and its partners to pursue its mission to make available to the fishing industry the largest and best equipped body of experts in fisheries-related science and technology in the country for the benefit of the industry's long-term competitiveness and sustainability. Report: House of Commons - Fifth Report Government Response: No Government Response requested

Fifth Report of House of Commons Standing Committee on Fisheries and Oceans:
Atlantic Lobster Fishery (Adopted by the Committee on May 7, 2009; Presented to the House on May 13, 2009)

Recommendation:
That the government restore full funding to the Canadian Centre for Fisheries Innovation to enable this organisation and its partners to pursue its mission to make available to the fishing industry the largest and best equipped body of experts in fisheries-related science and technology in the country for the benefit of the industry's long-term competitiveness and sustainability.

Report:
House of Commons - Fifth Report

Government Response:
No Government Response requested

Fourth Report of House of Commons Standing Committee on Fisheries and Oceans: European Legislative Actions regarding the Canadian Seal Harvest (Adopted by the Committee on May 5, 2009; Presented to the House on May 6, 2009; Concurred in by the House on May 11, 2009)
Recommendation: The Standing Committee on Fisheries and Oceans fully endorses the harp seal hunt, it approves of current regulated killing methods, approves that the harvesting of harp seals is fully acceptable and that the Canadian harp seal hunt is humane, responsible and sustainable and should continue for generations to come and the Committee strongly condemns the ban of Canadian seal products by the European Union. Report: House of Commons - Fourth Report Government Response: No Government Response requested

Fourth Report of House of Commons Standing Committee on Fisheries and Oceans:
European Legislative Actions regarding the Canadian Seal Harvest (Adopted by the Committee on May 5, 2009; Presented to the House on May 6, 2009; Concurred in by the House on May 11, 2009)

Recommendation:
The Standing Committee on Fisheries and Oceans fully endorses the harp seal hunt, it approves of current regulated killing methods, approves that the harvesting of harp seals is fully acceptable and that the Canadian harp seal hunt is humane, responsible and sustainable and should continue for generations to come and the Committee strongly condemns the ban of Canadian seal products by the European Union.

Report:
House of Commons - Fourth Report

Government Response:
No Government Response requested

Second Report of Senate Standing Committee on Fisheries and Oceans: Rising to the Arctic Challenge: Report on the Canadian Coast Guard (May 2009)
Recommendations: That Canada uphold its position that the waters of the Northwest Passage are its internal waters, and that Canada should be prepared to defend any legal challenge. That Canada develop a much stronger year-round, national presence and enforcement capability to show the world that Canada is serious about controlling the Northwest Passage, protecting Canadian interests and Canada's northern residents, and making the waterway a safe and efficient shipping route. That the Government of Canada consider Goose Bay, Labrador, as a sub-Arctic staging area for the coordination and support of Coast Guard, fisheries, search and rescue, surveillance and other Arctic activities. That the Nunavut Marine Council (Part 4, Article 15.4.1 of the 2003 Nunavut Land Claims Agreement) be created as a forum for priority setting and planning, and as a practical means to enhance Canada's sovereignty in marine areas. That Canada assume a leadership role in promoting international cooperation on: (a) issues relating to continental shelf claims; and (b) the development of a mandatory common code relating to the construction, manning and equipment of all vessels operating in the Arctic Ocean equal to Canada's domestic standards. That Canada demonstrate its commitment to international cooperation within the Arctic Council by re-establishing the position of Ambassador for Circumpolar Affairs (which was eliminated in 2006). That the Department of National Defence make the Canadian Rangers an integral part of the Canadian reserves and provide them with marine capability. That the Government of Canada establish an Arctic Strategy Advisory Committee, led by Indian and Northern Affairs Canada, to monitor and to advise in the development and implementation of an effective and integrated strategy for the North. The new Arctic Strategy Advisory Committee should comprise representatives from the federal government departments and agencies with a mandate in the Arctic, with particular emphasis on the Coast Guard, the various Aboriginal/Inuit groups in the region, and the three territorial governments. That Inuit, with their unique knowledge of the region, be recruited for the Coast Guard whenever possible. That the Coast Guard, as the expert agency on the maritime situation facing Canada in the Arctic, formulate and implement a long-term strategic vision to guide it for the future. That NORDREG, Canada's current voluntary vessel traffic system in the Arctic, be made compulsory. All foreign ships that enter Canada's Arctic waters should be required to register with NORDREG, regardless of vessel size. That the federal government amend the definition of Arctic waters in the Arctic Waters Pollution Prevention Act to include the waters beyond the Arctic Archipelago to the 200-nautical-mile Exclusive Economic Zone, which is the case with other Canadian legislation, such as the Oceans Act and the Canada Shipping Act, 2001. That Canada develop a long-term plan for the acquisition of new multi-purpose heavy icebreakers “made-in-Canada” and capable of operating year-round in its Arctic Archipelago and on the continental shelf as part of an integrated approach to vessel procurement recognizing the complementarity of Coast Guard and naval vessels. The committee recommends the deployment of multi-mission polar icebreakers operated by the Coast Guard as a cost-effective solution to Canada's surveillance and sovereignty patrol needs in the Arctic. Report: Second Report Government Response: Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Rising to the Arctic Challenge: Report on the Canadian Coast Guard

Second Report of Senate Standing Committee on Fisheries and Oceans: Rising to the Arctic Challenge:
Report on the Canadian Coast Guard (May 2009)

Recommendations:

That Canada uphold its position that the waters of the Northwest Passage are its internal waters, and that Canada should be prepared to defend any legal challenge.
That Canada develop a much stronger year-round, national presence and enforcement capability to show the world that Canada is serious about controlling the Northwest Passage, protecting Canadian interests and Canada's northern residents, and making the waterway a safe and efficient shipping route.
That the Government of Canada consider Goose Bay, Labrador, as a sub-Arctic staging area for the coordination and support of Coast Guard, fisheries, search and rescue, surveillance and other Arctic activities.
That the Nunavut Marine Council (Part 4, Article 15.4.1 of the 2003 Nunavut Land Claims Agreement) be created as a forum for priority setting and planning, and as a practical means to enhance Canada's sovereignty in marine areas.
That Canada assume a leadership role in promoting international cooperation on: (a) issues relating to continental shelf claims; and (b) the development of a mandatory common code relating to the construction, manning and equipment of all vessels operating in the Arctic Ocean equal to Canada's domestic standards.
That Canada demonstrate its commitment to international cooperation within the Arctic Council by re-establishing the position of Ambassador for Circumpolar Affairs (which was eliminated in 2006).
That the Department of National Defence make the Canadian Rangers an integral part of the Canadian reserves and provide them with marine capability.
That the Government of Canada establish an Arctic Strategy Advisory Committee, led by Indian and Northern Affairs Canada, to monitor and to advise in the development and implementation of an effective and integrated strategy for the North. The new Arctic Strategy Advisory Committee should comprise representatives from the federal government departments and agencies with a mandate in the Arctic, with particular emphasis on the Coast Guard, the various Aboriginal/Inuit groups in the region, and the three territorial governments.
That Inuit, with their unique knowledge of the region, be recruited for the Coast Guard whenever possible.
That the Coast Guard, as the expert agency on the maritime situation facing Canada in the Arctic, formulate and implement a long-term strategic vision to guide it for the future.
That NORDREG, Canada's current voluntary vessel traffic system in the Arctic, be made compulsory. All foreign ships that enter Canada's Arctic waters should be required to register with NORDREG, regardless of vessel size.
That the federal government amend the definition of Arctic waters in the Arctic Waters Pollution Prevention Act to include the waters beyond the Arctic Archipelago to the 200-nautical-mile Exclusive Economic Zone, which is the case with other Canadian legislation, such as the Oceans Act and the Canada Shipping Act, 2001.
That Canada develop a long-term plan for the acquisition of new multi-purpose heavy icebreakers “made-in-Canada” and capable of operating year-round in its Arctic Archipelago and on the continental shelf as part of an integrated approach to vessel procurement recognizing the complementarity of Coast Guard and naval vessels.
The committee recommends the deployment of multi-mission polar icebreakers operated by the Coast Guard as a cost-effective solution to Canada's surveillance and sovereignty patrol needs in the Arctic.

Report:
Second Report

Government Response:
Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Rising to the Arctic Challenge: Report on the Canadian Coast Guard

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

Chapter 2-Intellectual Property

2009 Spring Report of the Auditor General of Canada
The OAG audit looked at how intellectual property is managed in three federal science-based organizations-the National Research Council Canada, Health Canada, and Fisheries and Oceans Canada. We examined to what extent they comply with federal policy in managing intellectual property that arises in the course of contracted activities and how adequately they manage intellectual property generated by their own employees.

Externally generated intellectual property

Recommendation:
2.39 Fisheries and Oceans Canada should ensure that they accurately identify the intellectual property expected to result from their Crown procurement contracts and ensure that the intellectual property is accurately reported.

Response:
Fisheries and Oceans Canada agrees with the recommendation. Over the next 6 to 12 months, the Department will ensure that intellectual property generated through Crown procurement contracts is identified, accurately recorded in the Department's financial system, and reported to central agencies. The Department will ensure that intellectual property is properly identified in all contract documents.

Recommendation:
2.41 When the Crown takes ownership of the intellectual property produced as the result of a contract, Fisheries and Oceans Canada should justify this decision using the exceptions provided for in, and required by, the Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department will fully support and record all intellectual property ownership decisions. Over the next 6 to 12 months, the Department will implement measures to ensure that where it wishes to invoke one or more exceptions toward claiming Crown ownership of intellectual property arising under Crown procurement contracts, it will state and justify the exceptions as per the Treasury Board of Canada Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.

Recommendation:
2.48 Fisheries and Oceans Canada should state in both the documents soliciting bids and in the contract itself who will own the intellectual property, including the exception invoked when the Crown decides to take ownership of the intellectual property expected to result from the Crown procurement contract. These departments should also ensure that the Crown's ownership and/or licensing rights are protected in sub-contracts where applicable.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department will implement measures, over the next 6 to 12 months, to ensure the following:

Documents soliciting bids and corresponding procurement
Contracts state whether intellectual property arising under contracts will be vested in the Crown or owned by the contractor, to ensure that the Crown's ownership and licensing rights are protected.
In cases where the Crown elects to own the intellectual property, these exceptions will be set out in those documents and recorded in the Department's financial system for reporting purposes. The Project Authority of these contracts will also ensure protection of this Crown-owned intellectual property.
Crown ownership and/or licensing rights are protected/secured in subcontracts, where applicable.

Fisheries and Oceans Canada will include standardized intellectual property clauses in all procurement contracts.

Internally generated intellectual property

Recommendation:
2.54 Fisheries and Oceans Canada should develop and approve a department-wide intellectual property policy, including guidelines for licensing and commercializing intellectual property.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department has created a working group to expedite the development of a Fisheries and Oceans Canada intellectual property policy for managing, licensing, and commercializing intellectual property. Guidelines supporting implementation of the policy will also be developed. The policy and the guidelines should be completed in the 2009–10 fiscal year.

Recommendation:
2.60 Fisheries and Oceans Canada should establish a mechanism to ensure that inventions are adequately identified and disclosed.

Response:
Fisheries and Oceans Canada agrees with the recommendation. It will develop a departmental intellectual property policy that will include measures to identify and disclose inventions and other intellectual property arising from Crown procurement contracts that it awards or that are awarded by Public Works and Government Services Canada on its behalf. Fisheries and Oceans Canada will develop guidelines consistent with its intellectual property policy, which will incorporate measures to ensure that in-house inventions and other intellectual property are adequately identified and disclosed. It will implement the guidelines immediately following their approval, and ensure that they are understood by all managers. As the policy and guidelines will be completed in 2009–10, implementation will be initiated subsequently.

Recommendation:
2.63 Fisheries and Oceans Canada should ensure that Crown-owned copyright material that has potential intellectual property value is properly disclosed.

Response:
Fisheries and Oceans Canada agrees with the recommendation. It will ensure that mechanisms are developed to ensure that Crown-owned copyright assets that have potential value can be properly disclosed. The Department's Canadian Hydrographic Service data and data products are disclosed automatically upon incorporation in data management systems that are used by the Canadian Hydrographic Service to process the data and create data products.

The Department intends, over the next 6 to 12 months, to raise awareness among staff of the potential value of intellectual property associated with scientific papers, including software and data products that are subject to copyright and technology that might be disclosed therein.

It is believed that enhanced awareness among staff on the potential value of intellectual property will substantially contribute to addressing the recommendation as staff would generally be better informed and more cautious about publishing any copyright material that might jeopardize the commercialization of the copyright material or of any invention described therein.

Chapter 3-Health and Safety in Federal Office Buildings

2009 Spring Report of the Auditor General of Canada
The Office of the Auditor General assessed whether departments were planning for fire emergencies in compliance with key requirements of the Treasury Board Standard for Fire Safety Planning and Fire Emergency Organization (the Standard), including conducting required fire drills. In addition, we looked at the activities of Fire Protection Services (formerly called the Fire Commissioner of Canada), the division within HRSDC's Labour Program responsible for administering and enforcing this Standard. We also looked at the role of the Labour Program's regional and district offices in reviewing fire safety plans for buildings occupied by the federal government.

Fire safety planning and fire emergency organization

Recommendation:
3.80 Departments should ensure that fire safety plans are prepared and administered in accordance with established federal legislation and Treasury Board policies and standards.

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the preparation and administration of fire safety plans and we have taken measures to ensure that we comply with all established legislation, policies, and standards by 31 December 2009.

Recommendation:
3.88 Departments should ensure that all evacuation drills are held as required by federal legislation and Treasury Board policies and standards.

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the requirement to hold various types of evacuation drills in accordance with the legislation, policies, and standards, and we have taken measures to ensure full compliance by 30 June 2009.

Recommendation:
3.93 Departments should ensure that building fire emergency organizations are established and administered as required by federal legislation and Treasury Board policies and standards.

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the establishment and administration of building fire emergency organizations, and corrective measures have been implemented to comply with all applicable legislation, policies, and standards as of the first quarter of 2009.

Chapter 1-Protecting Fish Habitat

2009 Spring Report of the Commissioner of the Environment and Sustainable Development
The Commissioner of the Environment and Sustainable Development examined how both Environment Canada and Fisheries and Oceans Canada carry out their respective responsibilities for fish habitat protection and pollution prevention under the Fisheries Act. We also looked at their arrangements with others, such as provinces and stakeholders, that support the administration and enforcement of these provisions. In addition, we looked at Fisheries and Oceans Canada's Environmental Process Modernization Plan (EPMP), its continuous improvement plan introduced in 2004.

Recommendation:
1.33 In order to make consistent decisions on project referrals, in accordance with departmental expectations, Fisheries and Oceans Canada should ensure that an appropriate risk-based quality assurance system is in place for the review of these decisions.

Response:
The Department accepts this recommendation. Over the past number of years, Fisheries and Oceans Canada has made efforts to improve the quality, consistency, and transparency of its decision making by implementing the Risk Management Framework. Although much progress has been made, the Department recognizes that there is still much work to be done with respect to documentation standards. With that in mind, by 31 March 2010, Fisheries and Oceans Canada will implement a risk-based quality assurance system to verify that documentation standards are being applied consistently by staff.

Recommendation:
1.41 Fisheries and Oceans Canada should accelerate the implementation of its Habitat Compliance Decision Framework to ensure that there is an adequate risk-based approach to monitoring projects and providing assurance that proponents are complying with the Fisheries Act and all terms and conditions of departmental decisions. The Department should also determine whether the required mitigation measures and compensation are effective in meeting the no net loss principle.

Response:
The Department accepts this recommendation. Fisheries and Oceans Canada currently applies a risk-based approach, but recognizes that opportunities for improvement remain. Once the Habitat Compliance Modernization initiative is fully implemented, the Department will be able to provide better assurance that proponents are complying with the terms and conditions of the Department's decisions. Considering this, the Department commits to fully implement the Habitat Compliance Decision Framework and report on results of project monitoring activities by 31 March 2010 and annually thereafter.

Fisheries and Oceans Canada will continue to work with proponents to design and implement follow-up monitoring studies. Between now and the end of 2011, the Department will review and develop standard scientific methodologies to examine the effectiveness of compensation in achieving the no net loss guiding principle so that these methodologies can be used by proponents when designing monitoring studies.

Recommendation:
1.48 Fisheries and Oceans Canada should ensure that its enforcement quality assurance and control processes are sufficient to demonstrate that its actions have been taken in accordance with the Compliance and Enforcement Policy. The Department should provide guidance on the type of complaints that fishery officers should respond to and take action on, and the Department should specify minimum documentation requirements for occurrences.

Response:
The Department accepts this recommendation and, by 31 August 2010, will establish, disseminate, and communicate to regions an operational protocol to ensure better documentation of enforcement actions and monitoring of activities to ensure consistency with the Compliance and Enforcement Policy.
Guidance on the nature of complaints that warrant the attention of fishery officers has also been identified as a need by the Department. By 31 March 2011, the Department will examine the process currently in use and, by 31 March 2012, the Department will examine the Habitat Compliance Decision Framework to improve its guidance to staff, clarify documentation protocols, and establish minimum documentation standards for occurrences.

Recommendation:
1.69 Fisheries and Oceans Canada should clarify the parts of the Habitat Management Program that it will continue to administer, the extent that it wants others to deliver the program on its behalf, and the resource implications. The Department should also assess whether accountability mechanisms in all of its existing agreements are working effectively enough to report and assess the results achieved through its collaboration with others. In addition, it should review the agreements to ensure that they are aligned with its view of the long-term goals of the Habitat Management Program.

Response:
The Department accepts this recommendation and, by 31 March 2011, will have reviewed and evaluated its memoranda of understanding with provinces and territories. The Department will continue to work with its partners to strengthen the governance and accountability mechanisms and ensure that the partnership arrangements are aligned with the Department's goals and its strategic vision.

Recommendation:
1.74 Fisheries and Oceans Canada should develop habitat indicators to apply in ecosystems with significant human activity. The Department should use these indicators to assess whether it is making progress on the Habitat Policy's long-term objective to achieve an overall net gain in fish habitat.

Response:
The Department accepts and agrees with this recommendation and is committed to moving toward an ecosystems approach and the increased use of biological indicators, particularly in areas of significant human activity. However, this task is far from trivial as it will require significant new scientific understanding to ensure that the indicators adopted do in fact tell us what we need to know about the health of the aquatic ecosystem.

Recommendation:
1.80 Fisheries and Oceans Canada should determine what actions are required to fully implement the 1986 Habitat Policy and confirm whether it intends to implement all aspects of the Policy.

Response:
The Department accepts this recommendation and, by March 2010, will determine what actions are required to fully implement the Habitat Policy.

Recommendation:
1.134 Fisheries and Oceans Canada, with the support of Environment Canada, should clearly establish the expectations for Environment Canada's administration of the pollution prevention provisions, including the expected interactions between the two departments to support the delivery of the 1986 Habitat Policy.

Response:
The Department accepts this recommendation and, by March 31, 2011, will review the administration of section 36 of the Fisheries Act. By March 31, 2012, a renewed Memorandum of Understanding that better establishes expectations and responsibilities for Environment Canada will be in place.

Chapter 1-Evaluating the Effectiveness of Programs

2009 Fall Report of the Auditor General of Canada
The Office of the Auditor General examined how evaluation units in six departments identify and respond to the various needs for effectiveness evaluations. They also looked at whether they have built the required capacity to respond to those needs. In addition, they looked at the oversight and support role of the Treasury Board of Canada Secretariat in monitoring and improving the evaluation function in the government, specifically with respect to effectiveness evaluations. The period covered by their audit was 2004 to 2009.

Recommendation:
1.37 Fisheries and Oceans Canada should develop and implement action plans to ensure that ongoing program performance information is collected to support effectiveness evaluation.

Response:
Agreed. The Department's performance measurement framework links its core indicators to the departmental program activity architecture (PAA), thus identifying performance measures for all program activities and sub-activities. Each fiscal year, the Department conducts an analysis of the state of performance measurement in the Department and provides an annual report to the Departmental Evaluation Committee. In addition, the Department will develop and implement an action plan to ensure that ongoing program performance information is collected to support effectiveness evaluation by the end of August 2010.

Recommendation:
1.43 Fisheries and Oceans Canada should consider the merits of including external experts on their departmental evaluation committees. The Treasury Board of Canada Secretariat should provide guidance to departments in this regard.

Response:
Agreed. The Department will consider the merit of including external members on its department evaluation committee, in the context of guidance provided by the Treasury Board of Canada Secretariat.

Recommendation:
1.48 Fisheries and Oceans Canada should implement systematic processes to determine whether their effectiveness evaluations are meeting government-wide requirements and internal corporate needs, and act on areas identified for improvement. The Treasury Board of Canada Secretariat should monitor and provide any additional support it considers necessary for the implementation of these processes.

Response:
Agreed. The recommendation echoes the intent of the 2009 Policy on Evaluation. As such, actions are already under way within the Department to implement a systematic process to determine whether effectiveness evaluations are meeting internal corporate needs and government-wide needs (i.e., a strategic review) and to act on areas identified for improvement. Further work in this area will be completed in the context of guidance provided by the Treasury Board of Canada Secretariat.

Annual Report on Environmental Petitions

2009 Fall Report of the Commissioner of the Environment and Sustainable Development
The chapter describes the nature of environmental petitions and the extent to which some of them may have influenced the federal management of environmental issues in Canada. In fulfillment of statutory obligations contained in the Auditor General Act, the chapter contains an annual report to Parliament on the nature and status of petitions.
Fisheries and Oceans Canada responded to 11 petitions this year. There was one late notification sent but no responses were late.

External Audits

Office of the Comptroller General Horizontal Internal Audit of Corporate Risk Profiles in Large Departments and Agencies

Horizontal Internal Audit of Corporate Risk Profiles in Large Departments and Agencies
The objective of the audit was to determine whether systems and practices related to the development of Corporate Risk Profiles (CRPs) are in place to ensure strategies exist to identify and mitigate risks within the operations of (LDAs).
Although the audit did not find particular weaknesses in Fisheries and Oceans Canada related to the other recommendations found in the audit report, the department should consider whether other management action plans are required.

Recommendation:
LDAs should ensure that their process used to identify risks integrates regional risks with organizational risks, and identifies external risks as well. This process should be formalized in their risk scanning tools such as environmental scans.

Response:
The 2009-10 CRP will contain external risks. External risk scanning is now integrated in DFO's IRM handbook as a standard element. DFO is in the process of formalizing an environmental scan that informs the corporate risk profile.

Recommendation:
LDAs should define, document, and communicate their definitions of risk tolerance

Response:
The 2009-10 Corporate Risk Profile will define and communicate risk tolerance.

Recommendation:
LDAs should integrate risk management into the Departmental Performance Report to ensure reporting against the Corporate Risk Profile's effectiveness.

Response:
This will be addressed as part of the updating of integrated risk management tool kit that should be in place by the end of 2009-10. This will include the IRM cycle process, an updated IRM Policy Guidelines, and Handbook; all to be posted on the website.

Office of the Comptroller General Horizontal Internal Audit of High Risk Expenditure Controls in Large Departments and Agencies

Horizontal Internal Audit of High Risk Expenditure Controls in Large Departments and Agencies
The objective of the audit was to assess the adequacy and effectiveness of processes in place to identify higher-risk transactions that enable more efficient account verification practices. We examined the risk management over expenditure controls and the practices currently in place in a sample of eighteen LDAs in order to conclude on whether or not expenditure management was being carried out in a cost-effective and efficient manner, while also maintaining the required level of control.

Recommendation:
LDAs should ensure that high versus low risk payment types are identified and determine whether verification procedures are consistent with resulting risk principles

Response:
High/low risk payments and the level of verification/quality assurance review per payment stream were identified through consultation with regional and national Finance staff including officers, managers and directors, and Ernst & Young. The risk identification of payment streams and the quality review procedures will be re-evaluated in the 3rd quarter of 2010-11 based on 12 months of results.

Recommendation:
LDAs need to develop rigorous sampling plans to monitor the verification process of low risk payments. These should be national in scope and allow for the collection of results indicating systemic errors, best practices, and monitoring of appropriate risk identification.

Response:
A departmental Quality Assurance of Account Verification program including system generated reports on results has been developed, piloted in 3 regions and targeted for full implementation on September 30, 2009. A review of the random-sampling plan will be re-evaluated in the 3rd quarter of 2010-11 based on 12 months of results.

Recommendation:
LDAs should develop clear guidance for those providing quality assurances over account verification that stipulates the risk identification of high versus low risk payment types. LDAs should consider using checklists outlining verification procedures based on risk type or other measures.

Response:
The departmental Quality Assurance of Account Verification program including policy, guidelines, checklists and procedures is available on a national shared drive, to Finance staff involved in the quality assurance process.

Recommendation:
LDAs should establish the reporting requirements for the governance function over expenditure management in order to discharge their responsibilities in a robust, timely, and comprehensive manner. Those responsible for quality assurance need to develop reports to meet these needs and prepare and present them in a periodic manner.

Response:
Semi-annual reporting to the CFO, Departmental Management Committee, and Finance Sub-Committee will include a summary of errors by organizational structure and spending streams, analysis of risk and tolerance levels, and recommendations on modifications to the quality assurance program and remedial plans where necessary.

Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages.

Internal Audits (Current Reporting Period)

Name of Internal Audit	Audit Type	Status	Completion Date
Departmental Succession Planning	Human Resources	Completed	June 2009
Aboriginal Aquatic Resource and Oceans Management	Program Management	Completed	June 2009
Conservation and Protection	Program Management	Completed	June 2009
Salmonid Enhancement Program Contracting Practices	Financial Management Controls	Completed	September 2009
Management Control Framework Supporting Senior Management Committee Information for Decision-Making	Program Management	Completed	September 2009
Academic Research Contribution	Contribution	Completed	January 2010
Salmon Sub-Committee Contribution Program	Contribution	Completed	January 2010
Pacific Salmon Foundation & T. “Buck” Suzuki Environmental Foundation Contribution Programs	Contribution	Completed	January 2010
At-sea Mentoring Initiative and First Nations Fisheries Operations Management Initiative	Program Management	Completed	March 2010
Environmental Response Services	Program Management	Completed	March 2010
Classification	Human Resources	Completed	June 2010
Marine Communications and Traffic Services	Program Management	Completed	June 2010
Small Craft Harbours	Program Management	Planning	December 2010
Management of Information Technology	Program Management	Planning	December 2010
Business Continuity Planning	Internal Services	Planning	December 2010
Accounts Verification	Financial Management Controls	Planned	March 2011
Federal Contaminated Sites Action Plan	Program Management	Postponed	2012-13

Completed internal audits are available at Audits.

Evaluations (Current Reporting Period)

Name of Evaluation	Program Activity	Evaluation Type	Status	Completion Date
Aboriginal Aquatic Resource and Oceans Management Program	Fisheries and Aquaculture Management	Value for money	Complete	April 2009
Aboriginal Inland Habitat Program	Habitat Management	Value for money	Complete	April 2009
Federal Contaminated Sites Action Plan (Interdepartmental-Environment Canada)	Internal Services	Formative	Complete	April 2009
Academic Research Contribution Program	Science for Sustainable Fisheries and Aquaculture	Value for money	Complete	September 2009
Canada's Submission to the Commission on the limits of the Continental Shelf under the United Nations Convention on the Law of the sea	Science for Safe and Accessible Waterways	Formative	Complete	September 2009
Fleet Operational Readiness	Canadian Coast Guard	Value for money	Complete	September 2009
Salmonid Enhancement Program	Fisheries and Aquaculture Management	Summative	Complete	September 2009
Habitat Stewardship Program (Interdepartmental – Environment Canada)	Habitat Management	Summative	Complete	December 2009
Strategic Environmental Assessment (Interdepartmental Evaluation – Canadian Environmental Assessment Agency on behalf of the Privy Council Office) – Cabinet Directive	Internal Services	Summative	Complete	December 2009
Life-cycle and Asset Management Services	Canadian Coast Guard	Value for Money	Complete	February 2010
Pacific Salmon Foundation/T. Buck Suzuki – Contribution	Fisheries and Aquaculture Management	Value for Money	Complete	February 2010
Yukon Salmon Sub-committee – Contribution	Fisheries and Aquaculture Management	Value for Money	Compete	April 2010
Atlantic Integrated Commercial Fisheries Initiative — Contribution	Fisheries and Aquaculture Management	Formative/Value for Money	Complete	May 2010
Building Public Confidence in Pesticide Regulation and Improving Access to Pest Management (Led by Pest Management Regulatory Agency)	Science for Healthy and Productive Aquatic Ecosystems	Summative	In progress	2010-11
Ice Breaking Services	Canadian Coast Guard	Value for Money	In Progress	2010-11
International Fisheries Conservation	Fisheries and Aquaculture Management	Value for Money	In Progress	2010-11
National Aquatic Animal Health Program (Led by Canadian Food Inspection Agency)	Science for Sustainable Fisheries and Aquaculture	Value for Money	In Progress	2010-11
Ocean Climate	Science for Healthy and Productive Aquatic Ecosystems	Value for Money	In Progress	2010-11
Pacific Integrated Commercial Fisheries Initiative – Contribution	Fisheries and Aquaculture Management	Formative/Value for Money	In Progress	2010-11
Science Renewal	Science for Healthy and Productive Aquatic Ecosystems	Value for Money	In Progress	2010-11
Coast Guard College	Canadian Coast Guard	Value for Money	Deferred	2011-12

Completed evaluations are available at Evaluations.

ARCHIVED - Fisheries and Oceans Canada - Supplementary Tables

Archived Content

2009-10 Departmental Performance Report

Fisheries and Oceans Canada

Table of Contents

Sources of Respendable and Non-Respendable Revenue

Sources of Revenue

Respendable Revenue

Non-Respendable Revenue

Unplanned Revenue

User Fees

Maintenance Dredging Services Tonnage Fee1

Marine Navigation Services Fee

Marine Communication and Traffic Services/Coast Guard Radio Communications Charges

Icebreaking Services Fee

Hydrography

Fisheries Management

Fisheries Management

Fisheries Management

Access to Information

User Fee Totals

External Fees

Other Information

Status Report on Projects Operating with Specific Treasury Board Approval

Status Report on Major Crown Projects

Mid-Shore Patrol Vessels

Description

Project Phase

Project Outcomes

Progress Report and Explanations of Variances

Industrial Benefits

Offshore Fisheries Science Vessels

Description

Project Phase

Project Outcomes

Progress Report and Explanations of Variances

Industrial Benefits

Offshore Oceanographic Science Vessel

Description

Project Phase

Project Outcomes

Progress Report and Explanations of Variances

Industrial Benefits

Polar Icebreaker Project

Description

Project Phase

Project Outcomes

Progress Report and Explanations of Variances

Industrial Benefits

Details of Transfer Payment Programs

Aboriginal Aquatic Resource and Oceans Management

Aboriginal Fisheries Strategy

Atlantic Integrated Commercial Fisheries Initiative

Pacific Integrated Commercial Fisheries Initiative

Atlantic Lobster Short Term Transitional Measures

Atlantic Lobster Sustainability Measures

Up-front Multi-year Funding

Pacific Salmon Endowment Fund

Atlantic Salmon Conservation Foundation

Horizontal Initiatives

Health of the Oceans (HOTO)

Green Procurement

Meeting Policy Requirements

Green Procurement Targets

Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

External Audits

Internal Audits (Current Reporting Period)

Evaluations (Current Reporting Period)

2009-10
Departmental Performance Report

Maintenance Dredging Services Tonnage Fee¹