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Message from the Chair and Chief Executive Officer

I am pleased to present the Canadian Transportation Agency's 2010–11 Departmental Performance Report.

Providing effective and responsive services to Canadians and to federal transportation service providers continues to be a strategic focus for the Agency. This Report highlights the Agency's many achievements in support of its 2010–11 Report on Plans and Priorities, as well as of the overall Government of Canada objectives for the federally regulated transportation sector.

This Report also coincides with the final year of the Agency's first-ever triennial Strategic Plan, and thus marks the culmination of three years of continuous progress and improvement in the many services we provide.

The Agency's 2008–2011 Strategic Plan set out an ambitious agenda, backed up with specific action plans and challenging, measurable performance targets. Over the past year, we have worked hard to translate the Plan's medium- and long-term goals from a shared vision into concrete, meaningful results.

For example, in 2010–11 the Agency:

• significantly increased the number of public consultations on the modernization of the Agency's regulatory regime;
• engaged in monitoring activities to assess the compliance of federal transportation service providers with the Agency's accessibility-related voluntary codes;
• continued the implementation of its Client Satisfaction Survey program, gathering valuable feedback on its performance from clients and stakeholders; and
• created an internal case monitoring committee to identify ways to streamline the Agency's processes, monitor the status of all ongoing Agency cases, and address potential efficiency- and consistency-related issues before they arise.

These are but a few of the many accomplishments realized over the past year.

As we set the course for 2011–12 and begin the implementation of our new 2011–2014 Strategic Plan, we remain committed to helping Canada benefit from a transportation system that is competitive, economic, efficient and accessible.

I encourage you to review this Report and to take note of what the Canadian Transportation Agency has accomplished.

The original was signed by:

Geoffrey C. Hare
Chair and Chief Executive Officer

Section I: Organizational Overview

Raison d'être

The Agency implements the transportation policy established by Parliament in the Canada Transportation Act and other legislation.

The Agency's mission is to assist in achieving a competitive, efficient and accessible transportation system through dispute resolution, essential economic regulation and communication in a fair, transparent and timely manner.

As an independent, quasi-judicial administrative tribunal and economic regulator, reporting to the Parliament of Canada through the Minister of Transport, Infrastructure and Communities. the Agency makes decisions on a wide range of matters involving air, rail and marine modes of transportation under the legislative authority of Parliament and, for certain accessibility matters, extra-provincial bus transportation.

Responsibilities

The Canadian Transportation Agency manages the economic regulation of air, rail and marine modes of transportation under the legislative authority of Parliament through the administration of laws, regulations, voluntary codes of practice, and educational and outreach programs, as well as through the resolution of disputes. Most of the Agency's activities and workload are generated by demand from users and operators of the national transportation system and administering legislative and regulatory requirements.

The Agency performs the functions vested in it by the Canada Transportation Act and related legislation (refer to section IV for a list of legislation and regulations that the Agency administers in whole or in part). It operates within the context of the very large and complex Canadian transportation system (for details, refer to Transport Canada's website).

The Agency is one of many Canadian partners helping to achieve transportation that works for everyone by contributing to a competitive and accessible transportation system that efficiently meets the needs of users and service providers and the Canadian economy. Its responsibilities include:

• Economic regulation, to provide approvals and licences, and make decisions on matters involving federally regulated air, rail and marine transportation;
• Dispute resolution, to resolve complaints about transportation services, rates, fees and charges; and
• Accessibility, to ensure that our national transportation system is accessible, particularly to persons with disabilities.

The Agency exercises its powers through its Members who are appointed by the Governor in Council (GIC): the GIC may appoint up to five full-time Members, including the Chair and Chief Executive Officer (CEO), and the Vice-Chair. The Minister of Transport, Infrastructure and Communities can also appoint up to three temporary Members.

The Members of the Agency are responsible for issuing decisions and orders related to complaints or applications, as well as addressing other issues within the national transportation system.

The Chair and CEO is accountable for the Agency's three program activities. The Vice-Chair replaces the Chair and CEO during the Chair's absence.

The Agency's organizational structure is composed of four branches: the Dispute Resolution Branch, the Industry Regulation and Determinations Branch, the Legal Services Branch, and the Corporate Management Branch. The heads of each branch, as well as the Communications Directorate, Internal Audit and Evaluation Services Directorate, and the Secretariat Directorate, report directly to the Chair and CEO. The organizational structure integrates a modal approach within a functional business delivery model and allows the Agency the flexibility to effectively deal with evolving workload and resource challenges while still meeting client-driven demands. This structure also creates greater career opportunities for learning and professional development, more variety in work assignments, and internal mobility for employees between directorates and branches.

Agency Organizational Chart

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Strategic Outcome and Program Activity Architecture (PAA)

The Canadian Transportation Agency reports on its plans, priorities and expected results to Parliament on the basis of its PAA. The PAA explains how the program activities and allocation of resources contribute to the Agency strategic outcome.

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Organizational Priorities

Performance /Priority Status Legend

With respect to the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result or priority identified in the corresponding Report on Plans and Priorities (RPP):

The Agency completed the third year of its triennial Strategic Plan for 2008–2011. During this period, the Plan had an overarching objective to firmly establish the Agency as a leading tribunal of the Government of Canada, to be accomplished by focusing on the following five priorities linked directly to the Agency's strategic outcome of providing "transparent, fair and timely dispute resolution and economic regulation of the national transportation system."

Priority 1: Dispute Resolution and Economic Regulation 

Key Accomplishments

• Level of disputes resolved informally  either through facilitation or mediation, surpassed the performance target thereby providing a fast-track avenue for resolution; and
• Published new guides to help those involved in environmental assessments of rail infrastructure projects. 

Priority 1: Dispute Resolution and Economic Regulation 

Key Accomplishments

• Worked with domestic and international air carriers to ensure that they:
  • Post their terms and conditions of carriage on their websites if they sell transportation online; and
  • Have placed signs at airports advising passengers that their terms and conditions of carriage are available;
• Ensured that member carriers of the Air Transport Association of America properly reflect in their tariffs an agreement concerning the implementation of the Montreal Convention;
• Implemented a new strategic approach to manage the Revenue Cap program for the transportation of Western grain to make it more predictable, efficient and manageable for everyone involved;
• Successfully completed and published Phase 1 of the Air Transportation Regulations (ATR) renewal project;
• Launched an updated version of the Guidelines Respecting Coasting Trade Licence Applications for the use of foreign vessels in Canadian waters;
• Finalized new interpretation notes on the control "in fact" and Canadian ownership requirements for air carriers; and  
• Finalized a sample tariff to assist air carriers in implementing clear terms and conditions of carriage using plain language.

Priority 2: People 

Key Accomplishments

• Implemented a "communications and dialogue wheel" – a tool to foster more effective internal communications and dialogue by identifying possible channels, activities, and the roles and responsibilities of different players;
• Launched a tailor-made training program for case officers and other staff involved in dispute resolution processes to enhance their knowledge and skills related to processing cases and dispute resolution in general;
• Continued to implement knowledge transfer projects, student recruitment initiatives and developmental opportunities for staff; and
• Launched a fully redesigned Intranet site, based on staff input, to give Agency staff access to work tools and key information such as training, job opportunities, and health and safety.

Priority 3: Enhanced Internal and External Communications

Key Accomplishments

• Reported on progress made over the past three years in meeting targets set out in the Agency's first-ever Performance Measurement Framework;
• Developed action plans to address the areas for improvement identified in the Client Satisfaction Surveys;
• Held working group sessions with the U.S. Department of Transportation to discuss matters of common interest, such as the implementation of the Montreal Convention, air carrier advertising of prices, and accessibility issues for persons with disabilities;
• Engaged in consultations as part of efforts to modernize the Agency's regulatory regime, including the railway cost of capital methodology, interswitching rates and limited distribution tariffs; and 
• Relaunched the popular publication Moving Ahead (formerly an annual print newsletter) in a more timely and efficient e-newsletter format. 

Priority 4: Accessible Transportation

Key Accomplishments

• Made significant progress in resolving complaints related to the appropriate accommodation of air travellers who are persons with disabilities due to their allergies;
• Began work on comprehensive new complaint guidelines to educate the transportation industry and the community of persons with disabilities about their rights and responsibilities; and
• Released two compliance reports revealing that:
  • The majority of federal passenger transportation terminals were compliant with specific provisions of the Agency's Code of Practice: Passenger Terminal Accessibility; and
  • Canada's six largest airlines have made significant progress in complying with two implementation guides on space for service dogs and tactile row markers onboard large aircraft.

Priority 5: Organizational Support and Responsiveness

Key Accomplishments

• Created an internal case monitoring committee to identify ways to streamline the Agency's processes, monitor the status of all ongoing Agency cases, and address potential efficiency- and consistency-related issues before they arise;
• Developed an Intranet-based case management toolkit for employees consisting of clear procedures, templates, tools and checklists to help Agency staff process cases with increased efficiency; and
• Commenced a review of the Agency's formal procedures and began developing new procedures for disputes, determinations and oral hearings, to provide clear, focused and consistent procedures that are customized for the different types of dispute and determinations processes.

Link to the Government of Canada Outcome Areas

The Agency's strategic outcome and program activities are directly aligned with the broader Government of Canada strategic outcome of a fair and secure marketplace. The Agency's regulatory programs are designed to resolve economic issues, remove transportation barriers and protect the rights of consumers, carriers and other interested parties. These programs help improve the overall quality of life in Canada, providing all Canadians with an efficient and accessible transportation system.

The Agency is one of many players involved in transportation and it maintains close ties with its various co-delivery partners, including Transport Canada, the Department of Foreign Affairs and International Trade, the Canada Border Services Agency and the Canadian Human Rights Commission.

Risk Analysis

The Agency remained proactive in its approach to risk in 2010-11 through the identification of potential events and estimation of the likelihood and impact of the events on its strategic outcome. Mitigation strategies were developed based on these potential events to not only address the challenges, but use them as opportunities where possible. The Agency developed a Corporate Risk Profile 2010-13 detailing its risks and mitigation strategies and their linkages to the organizational priorities.  Below is a discussion of the risks of significance to the Agency in 2010-11.

The Agency is not perceived as a respected and trusted tribunal and economic regulator

Links to Agency overarching objective: Leading tribunal and economic regulator

In 2010–11, the Agency maintained its reputation as a trusted and respected economic regulator and expert tribunal on transportation and transportation-related human rights issues. This reputation is based on the Agency's independence from outside influence, the impartiality it has demonstrated in handling cases, the integrity and timeliness of its procedures, its expertise in transportation and transportation-related human rights matters, and the deference that the Federal Court of Appeal and the Supreme Court of Canada have given to its past decisions. The Agency was attentive to these aspects of its role as an economic regulator and quasi-judicial administrative tribunal. 

The Agency developed a robust Program Activity Architecture and Performance Management Framework and continues to monitor its performance and take measures towards meeting all of its objectives.

The Agency initiated the modernization of its regulatory framework and its administration, thereby contributing to becoming a more transparent, efficient and effective organization.

The Agency conducted Client Satisfaction Surveys both in 2009–10 and 2010–11 to better understand its clients' needs and expectations to determine how its services could be improved, as well as to obtain information on the perception of the Agency by its stakeholders and clients. The Agency will measure its performance against the base-line benchmarks established from these first surveys in order to ensure continued improvement in its service delivery. Given the valuable feedback provided, the Agency plans to conduct follow-up surveys in the coming years.

The public's perception of the organization is also heavily influenced by the quality of its relationships with its clients and stakeholders. The survey feedback from clients and stakeholders indicated high levels of satisfaction with Agency services, as well as with its professionalism and its commitment to ensuring its processes are well understood, fair and transparent. The Agency maintained a continuous dialogue with clients and stakeholders to remain proactive in addressing stakeholder feedback concerning Agency processes and procedures for dispute resolution and determinations that impact the Agency's reputation.

Resource reductions / constraints that would challenge the Agency's ability to deliver its mandate, or respond to changes in government policy

Links to all Agency organizational priorities:

1. Economic Regulation and dispute resolution
2. People
3. Enhanced internal and external relations
4. Accessible transportation
5. Organizational support and responsiveness

The Agency is a demand-driven organization with a mandate dependent upon fulfilling service expectations of Canadians with respect to transportation issues. Therefore, changes within the external environment, government policies and the legislative mandate have an impact on the Agency's operating environment.

In 2010-11, the Agency remained vigilant and proactive in adapting to those changes it viewed as having a significant impact on its service delivery. This was accomplished through dialogue with stakeholders (e.g. clients, federal government partners, parliamentarians, the Minister of Transport, special interest groups), giving the Agency the opportunity to address and adapt internally, and to ensure that it has sufficient resources that are properly deployed. Through its involvement in the legislative and regulatory change process, the Agency was also able to determine other potential changes.

The Agency continued to adjust to the full implications of its additional responsibilities, which included a new mandate to hear complaints concerning rail noise and vibration. The Agency identified and addressed gaps in its expertise in this very specialized and technical area and, based on the advice of the Agency's Rail Noise and Vibration Technical Advisory Committee, a technical study was commissioned to identify rail noise measurement methodologies and standards. The methodology has been finalized and will be posted on the Agency's Web site to help in the assessment of the level and impacts of railway noise. These complaints present unique challenges for the Agency, as they are usually filed by multiple parties or individuals representing community interest groups.

The Government of Canada announced that it is seeking resource savings by promoting shared services and by reviewing functions in the corporate services area. As a small federal organization, the Agency needs to be prepared to respond to these new demands through its proactive participation in the shared services initiatives.

While the extent of future budgetary / resource restrictions and the impacts on the Agency remain to some degree unknown, the Agency has budget planning and budget management measures in place to address this to the greatest extent possible given the information currently available.

The Agency also initiated an ambitious regulatory modernization agenda that will act as catalyst for streamlining the regulatory frameworks and business processes and reducing red tape.

Loss of business critical knowledge, information and expertise

Links to all Agency organizational priorities:

1. Economic Regulation and dispute resolution
2. People
3. Enhanced internal and external relations
4. Accessible transportation
5. Organizational support and responsiveness

The retention of knowledge and expertise is critical to maintain the level of service the Agency already provides, and to allow the Agency to adapt to its additional responsibilities. The changing demographics of the public service workforce, and of the Agency's in particular, continue to present an important human resource management challenge. Over the next few years, the Agency risks losing significant corporate knowledge and expertise as long-term key employees retire. In order to continue supporting its mandate, the Agency focussed significant efforts on recruiting, retaining and developing highly competent staff with the capabilities to ensure that knowledge and expertise are retained and transferred.

The Agency emphasized the development of skills, knowledge and expertise among its employees. It identified areas where the Agency is most vulnerable to the loss of critical business knowledge and expertise to ensure efficient knowledge transfer and succession planning practices were put in place, including the development of comprehensive procedures and manuals for retention of corporate knowledge. It also put in place for employees an extensive in-house continuing training curriculum, involving the creation of focussed training manuals and delivery of courses on key Agency service and expertise functions.

Summary of Performance

2010–11 Financial Resources ($ thousands)*  

2010–11 Human Resources (full-time equivalents or FTEs) 

2010–11 Performance Results

Spending by Program Activity ($ thousands)

* Numbers for each program activity include contributions to employee benefit plans.

Explanation of variances

Planned spending to total authorities: from $27.3 million to $29.3 million

Planned spending for 2010–11 was $27.3 million, whereas the total authorities for the Agency are $29.3 million, representing a change of $2.0 million. The differences are primarily due to the following increases:

• approved collective agreements and other associated benefits ($0.4 million);
• reimbursement of eligible paylist expenditures ($0.5 million); and
• operating budget carry-forward of 2009–10 ($1.1 million).

Actual spending to total authorities: from $28.7 million to $29.3 million

The difference of $0.6 million is primarily due to the deferral of certain projects to 2011-12.

Expenditure Profile

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Estimates by Vote

For information on the Canadian Transportation Agency's organizational votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada (Volume II). An electronic version of the Public Accounts is available at Public Works and Government Services Canada's Web page, Public Accounts of Canada 2010.

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