ARCHIVED - Canadian Transportation Agency - Report

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome: Transparent, fair and timely dispute resolution and economic regulation of the national transportation system

The Agency is both an economic regulator and a quasi-judicial tribunal. It regulates the national transportation system through the administration of laws, regulations, voluntary codes of practice, and education and outreach programs. It adjudicates disputes between users of, service providers within and others affected by the national transportation system which, in the case of accessibility, includes extra-provincial bus.

As a regulator, the Agency has a mandate to administer the economic regulatory provisions affecting all modes of transportation under federal jurisdiction found in various Acts of Parliament. In 2010–11, the Agency:

• issued 2,253 discretionary and administrative rulings to support the effective regulation of the national transportation system;
• after reviewing compliance with the air licensing requirements, processed 1,036 air licensing activities, including applications for new licences as well as suspensions, cancellations and reinstatements;
• issued 906 charter permits;
• participated in the negotiation of bilateral air agreements with Jamaica, Switzerland, Trinidad and Tobago, Qatar, Egypt and Brazil;
• developed draft guidelines for the determination of net salvage value of railway lines to be distributed to stakeholders for consultation;
• determined that the revenues of the Canadian Pacific Railway Company and Canadian National Railway Company for the movement of Western grain did not exceed their respective revenue entitlements under the Revenue Cap regime for Western grain (the first year since 2002–03 that both railway companies have been below their respective caps);
• considered 119 coasting trade applications to protect the interests of the Canadian marine industry and allow foreign ships when no suitable Canadian ships were available; and
• undertook 139 inspections resulting in the issuing of 42 informal warnings, 6 formal warnings and 11 notices of violation.

As an adjudicator, the Agency resolves transportation issues within the national transportation system either by investigating and making formal tribunal decisions on complaints and ordering corrective measures as required, or by helping parties resolve their issues through the alternative dispute resolution processes of mediation or facilitation. In 2010–11, the Agency:

• resolved 472 dispute cases of which 400 were through facilitation, 11 through mediation and 61 through formally adjudicated decisions;
• resolved 28 accessibility cases;
• processed 627 air travel complaints;
• was involved in 18 environmental assessment processes for proposed rail line construction projects, and issued one decision giving authority to construct railway lines;
• developed draft Noise Assessment Methodology to assist in rail noise and vibration dispute resolution;
• was involved in 47 environmental assessment processes for projects such as road and utility crossings; and
• processed 108 agreements filed by parties that had successfully conducted their own negotiations related to rail crossings.

In order to successfully deliver its strategic outcome, the Agency divides its programs into three activities: economic regulation, adjudication and alternative dispute resolution, and internal services.

Program Activity 1: Economic Regulation

2010–11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
12,809	13,537	12,521

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

Planned	Actual	Difference
120	112	-8

Description:

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

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

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

2010–11 Performance Results

Expected Results	Performance Indicators	Target	Status	Performance Summary
Economic and other interests of transportation users, service providers and other affected parties are protected.	Measures of satisfaction with Agency services related to serving the needs of users of, service providers within and others affected by the national transportation system.	Surveys to be implemented in order to establish benchmarks. Implementation of subsequent surveys and measurement against benchmarks.	Program to measure client satisfaction in place. Initial 2009-10 and subsequent 2010-11 surveys conducted based on Common Measurement Tool. Reports released and overall Agency client satisfaction target set.	Met performance target. Received positive feedback on interactions with Agency staff and on its service delivery. Established base-line benchmark and new overall Agency performance target for client satisfaction to  help measure performance and improve service delivery. Ongoing implementation of client satisfaction survey program.
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of charter permits issued within 30 days.	92%	97%	Exceeded performance target.
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of licences issued within 14 days.	85%	88%	Exceeded performance target. The Agency processed 132 applications for new air licences, out of which 116 were processed within 14 days of the application being complete.
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of international code-sharing authorities issued within 45 days.	100%	97%	Mostly met performance target. Of the 89 cases processed, 86 were issued within 45 days.
Regulatory authorities required to operate publicly available air services are issued on a timely basis upon meeting the regulatory requirements.	Percentage of extra-bilateral authorities issued within 30 days.	85%	87%	Met performance target. Of the 7 cases, 6 were issued within 30 days.
Compliance with the Canada Transportation Act and its attendant regulations.	Percentage of compliance with the requirements to hold a valid licence, insurance and Air Operator Certificate, as determined by inspections.	100%	100%	Met performance target.
Enhanced monitoring of and compliance with accessibility regulations and codes of practice.	Level of compliance with accessibility provisions.	Conduct monitoring and report on compliance.	Monitoring conducted and reports on compliance issued.	Met performance target. Issued 2 reports revealing high levels of compliance by federal transportation terminals with provisions in the Terminal Accessibility Code and by Canada's 6 largest airlines with 2 key provisions in the Air Code.
The Agency efficiently protects the interests of operators of Canadian registered ships while allowing access to foreign ships when suitable Canadian registered ships are not available.	Percentage of applications processed prior to the commencement date when no offer is made.	95%	95%	Met performance target.
Environmental, economic and social impacts of railway construction projects, railway lines and yards are mitigated.	Percentage compliance with prescribed mitigation conditions as determined on follow-up.	100%	100%	Met performance target.
Regulatory authorities required in railway operations are issued on a timely basis upon meeting the regulatory requirements	Percentage of determinations issued prior to specified timeline of 120 days	95%	100%	Exceeded performance target.

Performance Summary and Analysis of Program Activity

Overall, performance results in 2010–11 for this program activity enabled the Agency to maintain its strong track record in this area of responsibility.

In 2010–11, the Agency continued to focus on its two primary objectives for this program activity:

• manage its caseload in a sound, responsive and efficient manner; and
• maintain up-to-date, relevant and clear regulatory frameworks.

Managing caseload in a sound, responsive, timely and efficient manner

Through proper management of the program's caseload in a sound, responsive, timely and efficient manner, the Agency achieved the following in 2010–11:

• adopted a more strategic approach to managing the Revenue Cap program, with the goal of making the program more predictable and transparent. This strategic approach features new streamlined processes for managing the issuance of both the Volume-Related Composite Price Index (VRCPI) and Revenue Cap decisions, and for better identifying and addressing program management issues;
• adopted a streamlined process for the issuance of exemptions from section 59 as it relates to holders of temporary licences issued and other licences that have an expiry date;
• streamlined the insurance notification process, which has resulted in a more efficient approach to ensuring that insurance protection is in place for air carriers;
• successfully completed negotiations with a new provider of electronic tariff filing services, SITA. This will provide air carriers with access to a competitive option to the current unique provider of such services, ATPCO;
• developed new internal policies to clarify processes, roles and responsibilities for the regulatory program;
• in order to retain corporate memory, initiated a three-year plan for documentation of business processes for the regulatory program;
• committed resources to an E-services project with a three-year plan to develop and implement online services for regulatory activities;
• adopted new levels of service indicators and measures of stakeholder satisfaction with performance results that  met expectations.

Maintaining up-to-date, relevant and clear Agency regulatory frameworks

The Agency made significant progress in the review and update, where appropriate, of existing regulations, codes of practice and guidelines to ensure they are up to date, relevant and clear. In 2010–11 the Agency achieved the following:

• developed new interpretation notes on the control "in fact" and Canadian ownership requirements for air carriers, which were posted on the Agency's website. This information increases the transparency of the Agency's process by identifying factors considered by the Agency when determining whether an air carrier is Canadian;
• initiated a full review of its cost of capital methodology. The Agency's methodology was last reviewed in 2004. An expert consultant's report has been produced on methodologies used by other regulators and related issues. Parties to the consultation have filed their submissions and their replies to the other submissions filed. The Agency is now examining this material with the goal of setting the methodology that will stand for at least the next five years;
• successfully completed and published Phase 1 of the Air Transportation Regulations (ATR) renewal project . Work is continuing on Phase 2 (the charter provisions) of the ATR. This project will allow the Agency to ensure that its primary regulatory vehicle with respect to air transportation reflects the current air industry and takes into account government policy related to minimizing the regulatory burden on carriers, the Cabinet Directive on Streamlining Regulations and the Red Tape Reduction Initiative;
• initiated a process to identify and include certain provisions related to rail transportation in the Designated Provisions Regulations where contravention could result in a monetary penalty;
• completed the Sample Tariff document. This project encourages air carriers to adopt terms and conditions of carriage that are written in a clear manner so that they are more easily understood by passengers. It supports the legislative requirement that carriers make their terms and conditions of carriage available to passengers;
• sent advisories  to carriers regarding tariff requirements affected by air transport agreements that do not require filing of prices. Carriers were advised that charges still need to be reflected in their terms and conditions of carriage;
• developed draft guidelines for net salvage value (NSV) determinations, which will be the subject of targeted consultations. These new guidelines provide assistance for parties to an NSV determination by describing their roles and responsibilities, providing information on the processing of different types of applications, describing the nature of the information required by the Agency, and providing an overview of the relevant jurisprudence and precedent decisions;
• issued new guidelines for the processing of coasting trade applications, following two rounds of consultations. These guidelines provide clarity on the obligations of applicants and offerors as well as the test applied by the Agency, and what parties can expect from the Agency.

Through the achievements on both 2010-11 objectives for this program activity, the Agency ensured the interests of all participants in the federal transportation system continued to be protected. 

Lessons Learned

The Agency made significant progress in 2010–11 in its development of guidelines, interpretation notes and the modernization of regulations. Although this work required a significant investment of time and resources, there are many benefits, in addition to communicating the essential regulatory requirements to stakeholders and increasing the transparency and predictability of the regulatory regime. It also provides an opportunity to re-examine past practices, capture and re-create corporate memory for current and future Agency staff, challenge conventional wisdom, and align perspectives both inside and outside the Agency.

Because of the many other competing priorities, the project to modernize the Railway Costing Regulations was put on hold and will be undertaken at a later date.

Program Activity 2: Adjudication and Alternative Dispute Resolution

2010–11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
7,006	7,587	8,080

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

Planned	Actual	Difference
65	67	2

Description:

The Agency resolves disputes on matters related to the national transportation system, including:

• complaints related to air carriers' application of their tariff provisions and on prices applied by air carriers on non-competitive routes within Canada;
• appeals of new or revised air navigational charges imposed by NAV Canada to ensure that principles used to establish them comply with legislation;
• disputes between shippers and rail carriers on issues such as rates, level of services, running rights and interswitching;
• disputes between railway companies and municipalities, road authorities, landowners and other stakeholders on issues such as noise and vibration;
• complaints about user fees charged by Canadian port authorities, the St. Lawrence Seaway Management Corporation and the Federal Bridge Corporation;
• complaints related to actions taken by members of the marine industry that could reduce competition;
• objections to proposed pilotage charges and if these charges are fair, reasonable and in the public interest; and
• complaints concerning the level of accessibility of the national transportation network, in order to remove any undue obstacles to the mobility of persons with disabilities.

2010–11 Performance Results

Expected Results	Performance Indicators	Targets	Status	Performance Summary
Access to a specialized dispute resolution system that is cost-effective, responsive, fair and timely, and serves the needs of users, service providers and other affected parties within the national transportation system.	Measures of satisfaction with Agency services related to serving the needs of users of, service providers within and others affected by the national transportation system.	Surveys to be implemented in order to establish benchmarks. Implementation of subsequent surveys.	Program to measure client satisfaction in place. Initial 2009-10 and subsequent 2010-11 surveys conducted based on Common Measurement Tool. Reports released and overall Agency client satisfaction target set.	Met performance target. Positive feedback on interaction with Agency staff and on its service delivery. Established base-line benchmark and new overall Agency performance target for client satisfaction to help measure performance and improve service delivery. Ongoing implementation of client satisfaction survey program.
The Agency efficiently resolves complaints on air services, weighing the evidence submitted by the parties.	Percentage of disputes resolved formally within 120 days.	70%	50%	Performance target not met. Of the 22 air-related complaints, 8 were very complex, involving specific tariff-related issues, and required in-depth review. These cases were precedent-setting for passenger consumer protection rights.
The Agency efficiently resolves complaints about obstacles to the mobility of persons with disabilities, weighing the interests of persons with disabilities with those of the industry in assessing whether the obstacle is undue.	Percentage of disputes resolved formally within 120 days.	50%	43%	Mostly met performance target. Of the 7 adjudicated cases, 6 were very complex.
The Agency efficiently resolves disputes by determining whether pilotage charges are in the public interest and whether port fees and seaway tolls are not unjustly discriminatory.	Percentage of disputes resolved formally within 120 days.	70%	0%	Performance target not met. The Agency received one complex case, which exceeded the target because the Agency had to determine what constitutes a fair and reasonable fee under the Canada Marine Act. Multiple rounds of pleadings extended the process. In light of the low volume of such cases, the target of 70% may be too aggressive and will be reviewed.
The Agency efficiently protects the interests of operators of Canadian registered ships while allowing access to foreign ships when suitable Canadian ships are not available.	Percentage of applications processed within 90 days when an offer is made.	80%	90%	Exceeded performance target. There were 10 coasting trade applications with an offer, and 9 were processed in an average of 56 days.
The Agency efficiently resolves disputes between shippers, farmers, landowners, road authorities, utility companies, all levels of government and railway companies.	Percentage of disputes resolved formally within 120 days.	75%	45%	Performance target not met. Six of the 11 cases were very complex and/or precedent setting and required extended pleadings.

Performance Summary and Analysis of Program Activity

The Agency continued to promote the use of informal dispute resolution processes in 2010–11. For cases that go to adjudication, the Agency continued to work on improving the timeliness for resolving formal disputes. In order to address this challenge, the Agency introduced a number of initiatives to streamline the dispute resolution process, to achieve greater consistency in quality, and to improve the efficiency and timeliness of case resolution, such as:

• criteria for determining the level of complexity of cases;
• clearly defined roles and responsibilities for the panel chairs and case officers;
• a model decision framework;
• checklists for Agency staff to use when processing cases;
• a comprehensive in-house training program for case officers that delivered such courses as decision writing, public hearings, disclosure of information, the nature of the Agency as a tribunal, and court trends; and
• a variety of tools for staff to assist them in implementing Agency practices and policies related to the processing of cases.

A comprehensive training program for case officers and other staff involved in dispute resolution processes was provided to enhance their knowledge and skills related to processing of cases and dispute resolution in general. This also enables the program to allocate resources where needed as workload changes among transportation modes.

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 website.

The Agency began work on new comprehensive complaint guidelines to educate the transportation industry and the community of persons with disabilities about their rights and responsibilities. and help them better understand the Agency's processes and the rights and responsibilities of the parties involved.

An allergy is not automatically considered to be a disability for the purposes of the Canada Transportation Act. However, the Agency has determined that a person with an allergy may be found to be a person with a disability if, based on certain criteria, the allergy effectively limits the person's access to the federal transportation network. During 2010-11, the Agency ruled that a lack of formal policy to accommodate during air travel the needs of persons with a disability due to an allergy to peanuts or nuts constituted an obstacle to the mobility of those persons, and further determined appropriate accommodation for those travellers.

The Agency also issued decisions with respect to multiple chemical sensitivity, shellfish allergy, perfume allergy and attendant name changes on international tickets, and continued gathering further evidence and reviewing extensive submissions with respect to a forthcoming decision regarding cat allergy.

To assist unrepresented applicants, who are generally not familiar with its dispute resolution processes, the Agency is simplifying and clarifying the procedures used in case processing and is preparing revised procedures for dispute applicants.

The Agency's efforts on its complaint guidelines and streamlining of processes and procedures provides clarity and transparency in its dispute resolution processes and ensures they are accessible to all users of the national transportation system.

Lessons Learned

Meeting the 120-day target for the resolution of formally adjudicated cases continues to be a challenge, in large part because of the increasing proportion of formal cases that are more complex.

While less complex cases are now being settled efficiently and effectively through the Agency's informal facilitation and mediation services, the 65% target for resolving the Agency's formal disputes within 120 days is no longer appropriate as it was set on the assumption that the majority of adjudicated cases would continue to be of a similar, medium level of complexity.

The complexity of formally adjudicated cases has increased substantially as a result of the issues being brought before the Agency and related procedural requirements, including extended pleadings processes and, in some cases, the need for additional research. Those changing circumstances, together with the continuing need for appropriate pleadings to meet natural justice requirements, necessitate a modification of the 65% target for formal dispute resolution within 120 days Therefore, beginning in 2011–12, the target will be modified to 80% of complex cases to be resolved in 90 days after the close of pleadings. Our performance experience indicates that this target is more realistic and, while challenging, should be achievable on a sustainable basis.

Program Activity 3: Internal Services

2010–11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
7,496	8,229	8,189

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

Planned	Actual	Difference
76	72	-4

Description:

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

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

Corporate functions

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

Specialized tribunal services

• provide legal advice and representation;
• provide editing, translation and quality control services for Agency proceedings; and
• provide registrar services and coordinate ministerial correspondence.

Performance Summary and Analysis of Program Activity

The Agency's 2008–2011 Strategic Plan completed its final year in 2010–11. As a result, the annual planning and review exercise consisted of a review of the 2010–11 Plan as well as the development of a new triennial Strategic Plan for 2011-2014 that, in addition to its new priorities, carries over outstanding commitments from the 2008–2011 Plan. For example, although informal knowledge transfer activities were undertaken in 2010–11, the commitment to the development of a formal knowledge management and knowledge transfer framework has been included in the 2011–2014 Plan.

In its efforts to address issues raised in the 2008 Public Service Employee Survey, the Agency established an Employee Working Group (EWG). This Group made a series of recommendations, such as employee learning roadmaps, performance objectives for a respectful workplace and establishment of an external informal conflict management system, which were implemented, while others such as a developmental assignment program and a code of conduct have been incorporated into the Agency's 2011–2014 Strategic Plan.

In addition to the various outreach initiatives already highlighted throughout the document, the Agency also produced specialty publications catering to various stakeholders targeted for outreach campaigns, and published information capsules and articles highlighting various Agency functions and initiatives.

The Agency released a report detailing the results of the 2009–10 Client-Satisfaction Research Project undertaken by Ipsos Reid on the Agency's behalf. It used findings from this report as well as preliminary reports from the 2010–11 survey roll-out to establish Client Satisfaction performance indicators.

It expanded Client Satisfaction Survey groups to six client pools of the Agency for the roll-out of the 2010–11 surveys; these groups included clients and stakeholders who underwent Facilitation, Adjudication, Non-travel Dispute Determination, Mediation; Licensing and Inspection; and those who submitted inquiries. Action plans were also developed to address the areas for improvement identified in the Client Satisfaction Surveys.

The Agency made significant progress on implementing a consistent and improved content management system for all Agency websites. In addition, it launched a fully redesigned Intranet site, based on staff input, to give Agency staff access to work tools and key information on training, job opportunities, health and safety, and more. Significant progress was also made on implementing a new governance framework for the Internet and Intranet. In addition, the Agency developed a governance model for management of stakeholder contact lists and client records in the Agency's case management database.

The Agency progressed in its development of an IM policy and IT investment and system strategy. Drafting and reviewing of the IM/IT policies occurred throughout 2010–11 and will continue, with the entire suite expected to be approved and implemented in 2011–12.

To implement a legacy storage system, work began on digitizing Agency decisions and orders. This work will be done annually and will be stored in the corporate record-keeping system for preservation purposes and ease of retrieval. To date, 549,000 pages of Agency decisions and orders have been scanned.

In its commitment to sound risk management practices, the Agency completed its annual update of its Corporate Risk Profile in accordance with its Risk Management Framework and will continue its efforts to integrate these practices into its activities.

Lessons Learned

The insights gained during the implementation of the Agency's Strategic Plan 2008-2011 helped in the development of the Strategic Plan 2011-2014 as the achievements over the last three years demonstrated the value of having a sound, clear and results-oriented strategic plan that is effectively implemented. The Agency held various consultations with stakeholders, conducted surveys as well as used comprehensive threat and risk assessments to produce a new plan that is increasingly focussed and ambitious in its objective of becoming a more efficient, forward-looking and client-focused organization.

The results of the 2008 Public Service Employee Survey (PSES), the Agency's internal survey from 2009, and the EWG sessions highlighted the need for improvement in the area of internal communications at the Agency. As a way to address this, the Agency undertook a full redesign of its intranet site as there had been no major improvements to the intranet's design navigation or information architecture since 2001. The Agency recognized the importance of a redesign since an efficient and informative intranet is an indispensable resource for employees. This means providing and maintaining an intranet containing reliable, relevant and up-to-date information that's easy to find. The new intranet is also expected to contribute to enhanced internal relations, improved two-way communications and foster employee dialogue.

The EWG consisted of non-management Agency employees and was created to study the PSES survey results as well as the Agency's internal communications survey results. Its objective was to engage all Agency staff in a consultative process to provide recommendations to senior management on sustaining a respectful workplace and improving employee engagement at the Agency. Meeting this objective involved a commitment from both senior management and Agency employees. As noted above, various recommendations on key action areas included valuable EWG input into the intranet revamp project, as well as the Strategic Plan 2011-2014, since the recommendations not already implemented were included as action items in the plan.

The Agency's IM/IT plan contains the IT investment and system strategy for multiple years. The challenge in the development of this document has been in keeping it relevant at the Agency as the government-wide IT environment is changing rapidly.

• Previous Page
• Table of Contents
• Next Page