ARCHIVED - RPP 2006-2007
Industry Canada

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Section 2: Analysis of Program Activities by Strategic Outcome

Strategic Outcome: A Fair, Efficient and Competitive Marketplace

Each of the following program activities contributes to the strategic outcome through policy development, programs and initiatives, and service delivery. Both financial and non-financial information is provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Marketplace

Description: Development of marketplace framework policy
Expected Result			Indicators
Development and coordination of policy frameworks that support a fair, efficient and competitive marketplace			Legislative initiatives tabled and approved, aimed at improving Canada's broad marketplace framework (e.g. copyright, insolvency, intellectual property, competition policy)
2006–2007		2007–2008		2008–2009
$9.0M	86 FTEs	$8.6M	86 FTEs	$10.1M	86 FTEs

The Policy Sector, in partnership with other sectors, will continue to undertake a number of initiatives to update the marketplace framework. For example, on June 20, 2005, the government introduced into Parliament Bill C-60, An Act to amend the Copyright Act, with a view to modernizing Canada's copyright framework and making it more responsive to the challenges and opportunities presented by Internet and digital technologies. This would have addressed the short-term priority issues identified in the report entitled Supporting Culture and Innovation: Report on the Provisions and Operations of the Copyright Act, tabled in Parliament in October 2002. Bill C-60 had received first reading prior to the election call on November 29, 2005. The Policy Sector continues to support this initiative and will explore ways to move on these issues at the earliest opportunity.

The Policy Sector, in partnership with the Office of the Superintendent of Bankruptcy Canada (OSB), developed Bill C-55, An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act, and to make consequential amendments to other Acts, which received royal assent on November 25, 2005. The reforms enacted by the Bill will modernize Canada's insolvency system and increase competitiveness. They will come into force on a date after June 30, 2006, yet to be determined, subsequent to further examination of the effects of the Bill to ensure that the goals of the legislation have been met. The reforms, such as those dealing with corporate restructuring under the Companies' Creditors Arrangement Act, aim to provide predictable rules to encourage investment and confidence in the marketplace, while preserving the flexibility of the courts to deal with particular issues, as needed, on a case-by-case basis. The objectives also include streamlining the insolvency process, improving the fairness of the system for all participants, and curbing the potential for abuse. The Minister of Labour and the Minister of Industry support this important reform and have announced their intention to make technical changes to former Bill C-55 prior to bringing it into force.

In November 2004, the Department tabled Bill C-21, which sought to improve the governance of federally incorporated not-for-profit corporations by providing them with additional tools to carry out their work and addressing potential abuses by terrorist or other criminal organizations. The sector will continue to explore options for moving forward with the development of a new corporate law framework for the not-for-profit sector.

The Department will also continue to work to improve the regulatory environment for innovation and competition in high-knowledge industries, such as the pharmaceutical industry, by establishing more predictable and stable rules for the protection of patents.

Efforts are being made under the Paperwork Burden Reduction Initiative to promote the competitiveness and prosperity of small businesses by reducing the paperwork burden imposed on them. The joint private–public sector Advisory Committee on Paperwork Burden Reduction (ACPBR), established in March 2005, is tasked with measuring the cumulative impact of regulatory compliance on small business, identifying concrete initiatives for reducing the burden for small business, and providing advice to the Minister of Industry that will inform regular reporting to appropriate parliamentary committees. The ACPBR and its Secretariat at the Small Business Policy Branch will work to identify and study possible options for reducing paperwork burden. It will also analyze and report on results from the first triennial Statistics Canada Survey of Regulatory Compliance Costs, which was distributed in two parts to more than 30,000 SMEs in fall 2005, and 5,000 business service providers (e.g. bookkeepers, accountants and payroll companies) in winter 2006. Results from the first part of the survey on the internal costs of compliance for SMEs were received in July 2006, and final results on total cost estimates are expected by December 2006. The survey results will provide a benchmark for government to track its progress in reducing paperwork burden.

Program Activity: Operations Sector — Marketplace

Description: Development of instruments and compliance with the marketplace framework
Expected Result			Indicators
Marketplace fairness, integrity and efficiency is protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management			Public confidence in the insolvency system
			Feedback from reviews of sectors where measurement forms the basis for financial transactions
			Year-over-year level of federal incorporations
			Year-over-year number of radiocommunications investigations conducted/resolved by the Regions
2006–2007		2007–2008		2008–2009
$87.0M	1,357* FTEs	$80.0M	1,355* FTEs	$88.9M	1,353* FTEs

* Does not include FTEs for the Canadian Intellectual Property Office.

To ensure that the marketplace continues to foster competitive conditions to attract investment, encourage innovation and protect the public interest, the Operations Sector, through the work of the marketplace service organizations (MSOs), will continue to modernize its framework instruments and their implementation.

Industry Canada's MSOs will continue to be active participants in the Government of Canada's efforts to reduce the regulatory burden. The MSOs will continue to ensure that the marketplace is responsive to stakeholder needs. The MSOs will look at developing cost-effective approaches, such as third-party delivery, alternative case resolution, and voluntary standards and codes, to address marketplace issues and ensure sustainable governance in those areas mandated by various legislative instruments.

To ensure that the marketplace operates fairly, efficiently and effectively, Industry Canada will concentrate its efforts on improving marketplace programs and services, increasing education and awareness, and enhancing compliance with, and enforcement of, marketplace rules and regulations. For example, the OSB will continue to enhance its services by completing another phase of its e-filing system, which will allow trustees to conduct online transactions for ordinary bankruptcies and Division I proposals. The files affected by this phase represent about 5 percent of the total number of files registered annually. This phase will bring to completion the implementation of the system, which is now moving from a development environment to full maintenance mode.

The OSB has implemented a major organizational restructuring in order to achieve the following:

• a proactive risk-based approach for trustee and debtor compliance activities;
• strengthened information management capacity and development of new information services and products;
• improved client services as well as improved outreach capacity to stakeholders, clients and partners; and
• increased management capacity.
  
  

In 2006–2007, businesses, consumers, manufacturers, service providers and appropriate provincial/territorial government agencies will have an opportunity to shape how the accurate measurement of products and services is achieved and monitored in the fish and forestry sectors. The results of extensive stakeholder consultations will provide Measurement Canada with a framework for the establishment of changes to the regulations and requirements that govern measurement in these two sectors. Another outcome will be the identification of modifications to program and service delivery necessary to ensure accurate measurement, at reasonable cost, without compromising the protection of consumers and other vulnerable parties.

The statutes that govern the accurate measurement of products and services in Canada have not been modified significantly for several decades. Measurement Canada will commence preliminary consultations with the manufacturers of measuring instruments (scales, gasoline pumps, and electricity and natural gas meters) and associated key associations, businesses and service providers to obtain their views on required modifications to the Weights and Measures Act and the Electricity and Gas Inspection Act, including the means for minimizing barriers to the introduction of new measurement technology and participation in global markets, and for addressing changing business practices, customer relationships and marketplace dynamics. The broad themes identified as a result of these consultations will serve as the basis for proposed amendments to the statutes.

In 1999, Corporations Canada was one of the first federal government organizations to offer services to clients through an online channel. In this context, two distinct application systems were implemented to offer the online services. The first provides an electronic environment to Corporations Canada employees for processing transactions, and the second is an e-commerce online filing environment with a web-based interface that allows all Canadians to access Corporations Canada services via the Internet.

Given the ever-changing technology, Corporations Canada is modernizing its current systems with a view to implementing one integrated system that will achieve the following:

• address evolving business and client needs;
• explore innovative and efficient ways to serve Canadians;
• provide for security options; and
• expand interdepartmental communications.
  
  

In 2006–2007, the provisions and operations of the Canada Business Corporations Act are required to undergo a parliamentary review. Corporations Canada, along with the Policy Sector, will prepare for that review by considering various issues identified by stakeholders and providing a status report on the operations of the Act over the past five years.

Program Activity: Spectrum, Information Technologies and Telecommunications Sector — Marketplace

Description: Development of regulations, policies, procedures and standards governing Canada's spectrum and telecommunications industries and the digital economy
Expected Result			Indicators
A policy and regulatory framework to govern Canada's radiocommunications and telecommunications infrastructure in support of Canadian marketplace requirements and shape the digital economy			Degree of client satisfaction in the Canadian marketplace with the current policy and regulatory framework
2006–2007		2007–2008		2008–2009
$59.9M	375 FTEs	$46.4M	387 FTEs	$46.4M	387 FTEs

ICTs are powerful enablers across the economy. They drive economic growth, productivity and innovation, and are key to social and economic inclusion. Together, the production and use of ICTs in Canada's economy accounted for more than 60 percent of productivity growth in the late 1990s. And yet, we could be doing much better. Canadian firms invest significantly less in ICTs and e-business solutions than their U.S. counterparts, contributing to more than half of the Canada–United States productivity gap.

Telecommunications

Recognizing the importance of the telecommunications sector to Canada's future well-being, as well as the need for a modern policy framework, the Government of Canada appointed a three-person panel to review Canada's telecommunications policy and regulatory framework and provide a report to the Minister of Industry. As a first step in addressing the issues raised by the panel, on June 13, 2006, the Minister of Industry announced a proposed policy direction that directs the Canadian Radio-television and Telecommunications Commission (CRTC) to rely on market forces to the maximum extent feasible and to regulate, where there is still a need to do so, in a manner that interferes with market forces to the minimum extent necessary. The Department is developing the government’s telecommunications policy agenda based on the advice provided by the Telecommunications Policy Review Panel.

Further to government policy directions, the Canadian Wireless Telecommunications Association has developed an implementation plan for wireless number portability to be launched by mid-2007. The plan is currently undergoing consideration by the CRTC and may require follow-up actions by Industry Canada.

To ensure that Canada has a modern and world-class marketplace framework in the telecommunications sector, the Spectrum, Information Technologies and Telecommunications (SITT) Sector continues to assess the impact of restrictions on foreign investment in telecommunications, the impact of ICTs on productivity, the need for rolling out broadband to remote communities, and the release of more spectrum for wireless application — all areas where the telecommunications panel has also made proposals and recommendations.

Spectrum Management

To continue to foster an innovative Spectrum Management and Telecommunications Program and remain responsive to the marketplace, the SITT Sector has consulted on a renewed Spectrum Policy Framework and advancements of spectrum management. The Department will publish a renewed Spectrum Policy Framework in 2006–2007 to oversee the Canadian Spectrum Management Program. The policy framework will facilitate the adoption of advanced spectrum management practices, and will address issues such as increased flexibility in the use of spectrum resources, the introduction of new technologies, Smart Regulation, access to underutilized spectrum, greater reliance on market-based licensing, and the availability of licence-exempt spectrum. The modernized Spectrum Policy Framework will also assist in advancing Canadian interests in establishing international allocations and regulations, and in the release of new spectrum in response to public safety and the growth of wireless services. In addition, Industry Canada is also conducting a review and redesign of its spectrum information technology systems to help ensure the continuing evolution of the Spectrum Management and Telecommunications Program.

The management of the radio frequency spectrum by Industry Canada provides consumers with confidence that the marketplace is fair, efficient and competitive. This management oversight includes the approval of antennas and their support structures. Antenna structures are essential elements of radio system infrastructure that allow Canadians to benefit from the use of wireless devices and services.

Industry Canada's current antenna tower siting procedures have been in place since 1990. Given the passage of time, the increase in wireless use and the resulting increase in infrastructure, Industry Canada recognized the need to review the current process and so launched the National Antenna Tower Policy Review. An objective of this independent consultation review is to ensure community and stakeholder involvement in updating Industry Canada's current antenna tower siting procedures. The Department has reviewed the final report of the National Antenna Tower Policy Review and is in the process of drafting an update to its procedures. In finalizing these procedures, the Department is giving consideration to the report's recommendations as well as to the comments received through public consultation.

The improved antenna siting process will promote a more efficient and competitive marketplace, while maintaining the balance between wireless access and the environmental considerations that Canadians demand.

To ensure that Canada is at the forefront in terms of new telecommunications services and equipment, engineering work will be carried out as follows. Canadian positions and proposals will be developed for the World Radiocommunication Conference in 2007 to enable new telecommunications services and the manufacture of telecommunications equipment in Canada. Engineering investigations and analyses will be carried out on the vulnerabilities in the access network, which includes wireless fidelity and Worldwide Interoperability for Microwave Access, as well as the transport network, which includes long distance and new services that will become available on the next-generation network. In addition, the DTV (Digital Television) Transition Allotment Plan will be finalized and negotiated with the United States, which will allow for the full implementation of high-definition television in Canada. Furthermore, in order to ensure the safety of Canadians in times of emergency, guidelines will be established concerning radio interoperability for public safety communications for first responders (e.g. police, fire, ambulance) to emergency situations.

Security and Infrastructure Protection

Communications networks play a critical role in alerting about and responding to emergencies and in providing disaster relief (e.g. public safety communications, 911 service, weather warning) to ensure the safety and security of Canadians. Since advanced economies such as Canada's increasingly rely on a variety of complex communications services, there is an increasing need to ensure that the highly developed telecommunications networks supporting such services remain safe from criminals, terrorists and damage from natural disasters. New means of doing business (e.g. e-commerce) create new opportunities for criminals. The underlying communications networks are also an appealing target for terrorists.

In partnership with other government departments, Industry Canada will continue to work to assist law enforcement officials in their efforts to protect Canadians. The Department will also support the necessary R&D impetus within government, industry and academia to sustain the knowledge base required to maintain a sufficient level of cyber-security within an ever-changing threat environment.

E-Commerce and Internet Governance

Developing world-class regulations and policies and supporting international standardization contribute to expanding e-commerce in the Canadian marketplace. E-business is a driving force for economic growth and social development in the knowledge-based economy. It enables Canadian businesses to be competitive at home and abroad by increasing their productivity and innovation potential. To capitalize on the benefits of e-commerce, the Department's goal is to create a world-leading environment that encourages the adoption and growth of e-commerce across all sectors of the economy. Industry Canada will continue to work with its partners to improve confidence in the marketplace by protecting individual privacy and curbing harmful Internet content.

The sector will continue to work in multilateral forums — such as the OECD, the United Nations (UN), the G8, the North Atlantic Treaty Organisation (NATO) and the Commonwealth — as well as bilaterally and trilaterally on critical issues such as Internet governance, the harmonization of marketplace principles for data and privacy protection in Internet use for online commerce, and the security of networks and services for business and the consumer. The continued implementation of the North American Security and Prosperity Agenda, and particularly those elements related to e-commerce, privacy and cyber-security, will contribute to a safer and more secure network economy and digital marketplace.

After the successful conclusion of the two-phased UN World Summit on the Information Society (WSIS) in Tunis, Tunisia, in November 2005, a number of follow-up activities require Industry Canada / SITT participation. The Tunis Summit launched a process toward enhanced cooperation among the organizations responsible for essential tasks associated with Internet governance, to be convened by the UN Secretary-General in 2006. SITT will be engaged in reviews and initiatives undertaken at the International Telecommunication Union, one of the key agencies involved in WSIS follow-up. The sector will also be engaged in the broader reviews of other stakeholder initiatives related to the use of ICTs for development and to the continued deployment of communications infrastructure.

Program Activity: Office of Consumer Affairs — Marketplace

Description: Promotion of consumer interests
Expected Result			Indicators
Strengthened responses to consumer issues			Number of initiatives responding to consumer issues with active engagement of OCA
2006–2007		2007–2008		2008–2009
$5.6M	23 FTEs	$5.0M	23 FTEs	$5.0M	23 FTEs

The Office of Consumer Affairs (OCA) collaborates with other departments and governments, and plays a role in the development of policies and non-regulatory instruments for consumer protection. To enhance consumer protection, the OCA will work toward the harmonization of federal/provincial/territorial consumer policies through the Consumer Measures Committee.

The OCA will continue to work with its governmental partners and other stakeholders to explore appropriate responses to the rapid growth of the payday lending industry and to address the issue of identity theft.

As a follow-up to the Consumer Trends Report, published in July 2005, the OCA has identified the following three areas of research for further exploration: the virtual consumer, sustainable consumption and the vulnerable consumer. Further refinements of research agendas for these areas are now being developed.

The OCA will also continue to seek opportunities to develop cost-effective non-regulatory approaches with other stakeholders to address consumer marketplace issues (e.g. standards, guides, codes of conduct).

In addition, the OCA disseminates consumer information products and services, and contributes to capacity building for the consumer voluntary sector. For example, the OCA will continue to enhance its consumer information website and the major tools that can be found there, such as the Complaint Courier and various calculators. The OCA will further hone its client outreach activities to respond to consumer needs. The OCA is exploring initiatives to make its web presence and its approach to the dissemination of consumer information as effective as possible.

Management of the Contributions Program for Non-Profit Consumer and Voluntary Organizations will also be improved by addressing the recommendations made in the 2004–2005 evaluation study. This program funds consumer groups to perform research on consumer issues affecting the marketplace, to develop policy advice on issues that are both credible and useful to decision-makers, and to reach greater financial self-sufficiency through business planning.

Program Activity: Competition Bureau — Marketplace

Description: Development of and compliance with marketplace frameworks with respect to competition
Expected Result			Indicators
Compliance with legislation under the Competition Bureau's jurisdiction			Extent to which target groups comply with legislation under the Bureau's jurisdiction
2006–2007		2007–2008		2008–2009
$48.1M	406 FTEs	$38.0M	406 FTEs	$38.0M	406 FTEs

Competition Law Enforcement

The Competition Bureau's enforcement priorities are fighting cartels, both domestic and international; promoting fair and accurate information in the marketplace; and combatting fraudulent mass marketing.

Cartels are the worst type of anti-competitive behaviour, and, while the focus in recent years has been on international conspiracies, the Bureau is building capability in regional offices in order to put greater emphasis on combatting domestic cartels. This local presence will enhance the visibility of the Bureau and increase opportunities for the detection of cartel activities.

The Bureau will continue to review mergers and acquisitions to determine whether or not they result in a substantial lessening or prevention of competition. The Bureau's workload increased significantly in 2005 in relation to mergers. Mergers Branch officials have observed an increase in the complexity of the merger transactions that are being reviewed, and they expect that trend to continue.

The Internet is a vast area of commerce. Canadians shop for products and carry out transactions on a daily basis through the web. Although many businesses promote their products in an honest and forthright manner, the opportunity exists for others to promote products by using misleading claims, either on their websites or through email.

Project FairWeb is the Bureau's response to this problem. Launched in April 2004, it is the Bureau's first dedicated Internet surveillance and enforcement program aimed at combatting misleading and deceptive advertising found on the Internet. To date, 458 questionable websites have been identified through the Bureau's Internet sweeps, with notices sent to the most problematic. More than 73 percent of these businesses have either removed the suspect performance claims from their sites or expressed an intent to comply with the Competition Act.

In fighting fraudulent mass marketing, the Bureau will continue its successful work fighting telemarketing fraud and deceptive mail. When businesses do not respond to the Bureau's concerns, enforcement action may be considered, including contested court proceedings.

Policy Development

The Bureau will continue its ongoing work toward the modernization of the Competition Act. A strong and modern competition framework is becoming increasingly important given the trend toward deregulation and the need to respond to new business realities, including growth of the electronic marketplace. The Bureau will therefore explore options for moving forward and will continue to undertake initiatives to modernize the Act in accordance with the changing demands created by new technologies and global markets in the 21^st century.

Competition Advocacy

The Bureau has developed a strategic framework for setting advocacy priorities. The health and telecommunications sectors will be a focus for 2006–2007. The Bureau will also continue its Sector Days initiative to foster Bureau awareness of the latest developments in key industries. By understanding the dynamics and business realities of these markets, the Bureau will continue to be in a position to ensure that its enforcement mechanisms and policy decisions remain relevant to Canadians. Additionally, the Bureau will champion a "culture of competition" in Canada by promoting open, efficient and competitive markets to foster innovation.

Remedies Consultations

In October 2005, the Competition Bureau issued a draft document, entitled Information Bulletin on Merger Remedies in Canada, for public comment. Other international competition authorities have also conducted reviews of their policies on merger remedies in an effort to ensure that remedies remain effective where a merger is likely to prevent or substantially lessen competition.

Members of the public were requested to submit comments and suggestions on the draft information bulletin to the Bureau by January 20, 2006. The Bureau expects to review submissions and post them on its website in the near future, except where confidentiality is specifically requested. The Bureau also expects to consult with members of the competition law bar in a number of major Canadian cities, as well as with antitrust authorities in the United States and the European Union.

The Bureau expects to publish the final version of the information bulletin in 2006–2007.

Post-Merger Review

A number of jurisdictions have begun to conduct ex post reviews of antitrust decisions as a means of evaluating current analytical and investigatory processes, developing best practices, and increasing transparency. The Bureau is in the process of conducting post-merger reviews of certain transactions in order to determine if the Bureau's original analysis and conclusions were well-founded. This will involve a review of current market conditions to assess how the market has evolved following the decision by the Bureau to not challenge the transaction, as well as to assess if the factors that the Bureau relied on in making its decision were correct. Results are expected by the end of the fiscal year, and a public version of the study will be available in the new year.

Fraud Awareness

The Bureau will continue its leadership role as Chair of Canada's Fraud Prevention Forum, a group of more than 70 private sector firms, consumer and volunteer groups, government agencies, and law enforcement organizations committed to fighting fraud aimed at consumers and businesses.

The Bureau's involvement in the International Consumer Protection and Enforcement Network (ICPEN) is another way of furthering the implementation of the guidelines provided in the 2003 OECD Guidelines for Protecting Consumers from Fraudulent and Deceptive Commercial Practices Across Borders, which call for greater cooperation in raising fraud awareness and combatting cross-border fraud.

In fact, the Bureau is recognized by ICPEN and the United Kingdom's Central Office of Information as a leader in public awareness campaigns. For example, the Bureau is currently spearheading efforts to organize an international Fraud Prevention Month. Its purpose is to prevent consumers from becoming victims of fraud through awareness and education, as well as to increase reporting when fraud does occur.

The Bureau is also involved in the ICPEN mass-marketing fraud working group aimed at improving enforcement cooperation in the fight against cross-border deceptive marketing practices.

International Competition Network

The Bureau is committed to participating in the International Competition Network (ICN), which provides antitrust agencies worldwide with a forum for addressing practical antitrust enforcement and policy issues of common concern. With its emphasis on convergence and cooperation, the ICN promotes more efficient, effective antitrust enforcement worldwide.

Program Activity: Canadian Intellectual Property Office — Marketplace

Description: Granting of intellectual property rights and the dissemination of intellectual property information in order to accelerate Canada's economic development
Expected Result			Indicators
Deliver quality and timely intellectual property products and services			Turnaround times for: patents trademarks copyrights industrial design
Increase awareness and use of intellectual property			Percentage of increased awareness and use of intellectual property
2006–2007		2007–2008		2008–2009
($7.7M)	951 FTEs	($4.0M)	986 FTEs	($0.6M)	986 FTEs

The Canadian Intellectual Property Office (CIPO) is a marketplace service organization under the responsibility of the Operations Sector. It is a revolving fund and therefore listed as a separate program activity (for financial information, see Table 8).

In partnership with the Policy Sector, CIPO will undertake further modernization of the intellectual property regime to encourage creativity and innovation, and to promote affordable access to new knowledge for Canadians.

Strategic Outcome: An Innovative Economy

Each of the following program activities contributes to the strategic outcome through programs and initiatives, policy development and service delivery. Both financial and non-financial information is provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Science and Technology (S&T) and Innovation

Description: Development of economic and scientific policy
Expected Result			Indicators
Development and coordination of policy frameworks in support of an innovative economy			Policy proposals that are brought forward reinforce the elements that advance an innovative economy and reflect a coordinated approach based on tools available across the sector
2006–2007		2007–2008		2008–2009
$46.2M	76 FTEs	$45.6M	76 FTEs	$45.6M	76 FTEs

Knowledge that is derived from research and development (R&D) is a key driver of economic growth. The federal government has invested substantially in research performed by federal laboratories, businesses and universities. For example, since 1997, the Government of Canada has more than doubled its annual investments in university R&D. Industry Canada will continue to work on strengthening the university research system, and on maximizing the impact of these investments. This work will be undertaken in collaboration with the federal granting councils, the Canada Foundation for Innovation, which invests in research infrastructure, and others. Budget 2006 provided an additional $40 million per year to the granting councils, $20 million per year for the Canada Foundation for Innovation's Leaders Opportunity Fund, and $40 million per year to support the indirect costs of research at post-secondary institutions.

Investments in Canada's knowledge infrastructure during the past decade have built Canada’s capacity for knowledge creation. However, Canada's commercialization performance and technology adoption rates must improve if we are to remain competitive. The Expert Panel on Commercialization was launched in May 2005 to provide advice on how to ensure that more new technologies and products make their way to the marketplace to benefit all Canadians. The Panel presented its report, entitled People and Excellence: The Heart of Successful Commercialization, to the Minister in April 2006.

Research and analysis on issues of interest to Canadian small businesses will also be undertaken. These activities will include examining the characteristics of high-growth and innovative small businesses, as well as the barriers faced by small business in the development and adoption of innovation and the commercialization of research. Special attention will be paid to venture capital, as it is increasing Canada's ability to commercialize research through investment in SMEs in sectors of growing strategic importance to the economy.

The Policy Sector also provides secretariat support to the Advisory Council on Science and Technology, including research and analysis to support the development of policies related to skills development and the commercialization of research and technology in the knowledge-based economy.

The Council of Canadian Academies (Council), formerly the Canadian Academies of Science, is a not-for-profit organization incorporated in April 2002 under the Canada Corporations Act. The Council is managed by a board of governors drawn from its three founding member academies — the Royal Society of Canada, the Canadian Academy of Engineering, and the Canadian Academy of Health Sciences — together with public governors named by the Council and the Minister of Industry. In July 2005, the Council received a one-time conditional grant from the Government of Canada in the amount of $30 million. Once the Council is fully operational, this will entitle the Government of Canada to receive approximately five assessments per year to better understand the state of scientific knowledge on issues important to Canadians. The Minister of Industry has asked the Council to conduct a short-term, preliminary assessment of Canada's S&T strengths. This will provide a foundation for its future work and inform the development of an S&T strategy.

Over the coming year, the Minister of Industry will be developing an S&T strategy, in collaboration with the Minister of Finance, that will encompass the broad range of government support for research, including knowledge infrastructure. The government will also undertake a review of the accountability and value for money of the granting councils' activities.

Program Activity: Industry Sector — S&T and Innovation

Description: Development of initiatives that stimulate research and development in order to accelerate commercialization in emerging technologies and priority sectors
Expected Result			Indicators
A stronger knowledge-based economy in all industrial sectors			R&D expenditures by industry in selected manufacturing and service sectors
2006–2007		2007–2008		2008–2009
$19.4M	100 FTEs	$9.8M	100 FTEs	$9.8M	100 FTEs

The Industry Sector will work with the Policy Sector to ensure that the federal government's commercialization strategy (including the government response to the Expert Panel on Commercialization) reflects the needs and interests of Canadian industry.

Renewable energy is crucial to Canada's economic development. Renewable energy sectors represent a significant opportunity for industrial development through technology commercialization, supply chain manufacturing and job creation. Expanding global markets present further opportunity for Canadian companies and technology developers.

The 2006–2007 fiscal year will mark the completion of Sustainable Development Strategy (SDS) III and the development of SDS IV. Voluntary leadership initiatives in the areas of waste management, facilities management and fleets offer important tools for delivering on the Government of Canada's sustainable development commitments and on its agenda for the greening of government operations. Industry Canada will examine opportunities for greening its operations in the development of SDS IV.

Government procurement presents an important opportunity to achieve key Government of Canada objectives, including sustainable development, economic and industrial development, innovation, and technology commercialization and diffusion. Industry Canada has traditionally played a role in enhancing the economic benefits to Canada of federal procurement decisions in areas of strategic industrial interest, such as the aerospace, defence and marine industries. This role will continue to be an important pillar of Industry Canada's engagement in the procurement policy process.

Industry Canada's own procurement activities also form an integral part of its commitment to technology commercialization, the greening of operations and sustainable development leadership. The Industry Sector will work with Public Works and Government Services Canada to examine options for greening government operations through procurement policy. The Industry Sector will work with partners to review the Industrial and Regional Benefits Policy, focusing on the aerospace and defence sector and its key future technologies.

The Industry Sector has achieved an internationally recognized level of expertise in the development of Technology Roadmaps. Developed in partnership with industry, Technology Roadmaps build the intellectual foundation for long-term technological advances. By forming alliances and partnerships, they also help advance R&D, innovation and commercialization. A number of Technology Roadmaps have been developed, and work is ongoing on the following: aerospace composites manufacturing, processing and repair; aircraft cabin management systems integration technology insertion; carbon dioxide capture and geological storage; welding; plastics; software; call centres; and the language industry.

Work also continues with industrial, federal and provincial partners on implementing the Technology Roadmap for Bio-based Feedstocks, Fuels and Industrial Products. Initiatives are under way with the forest, agriculture, energy and chemicals sectors to develop new industrial value chains by promoting innovation and the commercialization of sustainable fuels, chemicals and materials made from renewable bio-resources.

On behalf of the federal government, Industry sector is leading the response to the Canadian Manufacturing & Exporters' report entitled Manufacturing 20/20: A Call to Action. This report, delivered to government on February 7, 2005, resulted in the creation of a government-wide interdepartmental manufacturing network. This network will enhance the capacity for reviewing federal public policy on horizontal issues and initiatives that affect the manufacturing sector. Further, a comprehensive compendium of Canadian federal government manufacturing programs and services has been published. This will help better inform the Canadian manufacturing sector of the federal resources available for the priority areas identified by manufacturing stakeholders.

Enhancing the research and analytic capabilities concerning manufacturing will be a key focus for the Industry Sector. A knowledge base and expertise on quantitative and qualitative intelligence providing value-added and impact analysis will be established. The focus will be on trends and sea changes that affect the manufacturing sector as a whole. These will form the basis of input for situational assessments, policy analysis and development, and will provide core business intelligence to senior management and key stakeholders.

The Canadian Biotechnology Strategy (CBS) provides further support to federal science and technology policy. Interdepartmental coordination is managed by the Canadian Biotechnology Secretariat (CBSec), which is housed at Industry Canada. In addition, CBSec provides operational support to the Canadian Biotechnology Advisory Committee, an external forum that undertakes comprehensive analyses, informed by stakeholder consultations, on a range of issues arising from biotechnology and its implications in society.

Budget 2005 committed to strengthening the environment for research in Canada by providing Genome Canada with an additional $165 million for research in genomics, the study of the genetic codes of living things. To date, Genome Canada has invested more than $435 million across Canada. When combined with funding from other partners, this is expected to result in more than $1 billion in funding for 112 innovative research projects and sophisticated science and technology platforms. As referenced in Budget 2005, Industry Canada, on behalf of the government, is undertaking to examine the most appropriate role for Genome Canada and other agencies in providing support for genomics research.

Program Activity: SITT Sector — S&T and Innovation

Description: Support advanced and applied research within the Canadian ICT sector for the development of innovative technologies
Expected Result			Indicators
Improved research capacity and commercialization of ICTs			Accessibility to advanced research across Canada
2006–2007		2007–2008		2008–2009
$2.9M	4 FTEs	$3.0M	5 FTEs	$3.0M	5 FTEs

In order to facilitate significant research activities across Canada and around the world, the SITT Sector, in partnership with industry and academia and through CANARIE Inc., supports the operation of CA*net 4. CA*net 4 is a high-performance network that links research networks and institutions throughout Canada, enabling the country's research community to pursue advanced research across Canada and around the world.

Precarn Incorporated is a national, not-for-profit, industry-led consortium that supports pre-competitive R&D projects in the field of intelligent systems and advanced robotics. Budget 2005 extended the Government of Canada's support for Precarn by providing $20 million for the next five-year phase of its program. This will enable Precarn to maintain its research support and to promote further progress in Canada's intelligent systems and advanced robotics industries.

Program Activity: Communications Research Centre Canada — S&T and Innovation

Description: Conducts research on advanced telecommunications and information technologies to ensure an independent source of advice for public policy and to support the development of new products and services for the ICT sector
Expected Result			Indicators
Develop and maintain a high level of expertise and knowledge in technologies of importance to the Canadian telecommunications sector			Number of scientific publications
			Number of patents
Excellence in government and industrial client support through R&D and advice			Number of research partnerships
			Contracted R&D
			Number of intellectual property licences
2006–2007		2007–2008		2008–2009
$44.1M	412 FTEs	$38.6M	412 FTEs	$38.6M	412 FTEs

Communications Research Centre Canada (CRC) performs R&D on communications technologies of significant importance to Canada: radio, satellite, broadcasting and fibre optics. As a result, CRC is well positioned to provide strategic advice as well as direct assistance for the development of policy, regulations, standards and the economy in the telecommunications sector, as new technical developments and challenges arise.

CRC collaborates with the SITT Sector by providing independent technical advice related to Industry Canada's mandate for spectrum management, communications policy and regulatory decision making. CRC also works with organizations such as the International Telecommunication Union and the Institute of Electrical and Electronics Engineers in the development of standards to facilitate the efficient delivery of telecommunications and broadcasting applications. This allows CRC to address challenges such as network security, emergency communications and spectrum research, and to develop innovative and affordable solutions for bringing broadband services to all regions of Canada, especially underserved rural and remote areas.

One beneficial outcome of CRC's research program is the development of new technologies and associated intellectual property that can be of potential interest to Canadian industry. Through partnership activities or licensing, these technologies are often transferred to companies, particularly SMEs, for commercialization and sales to a worldwide market.

As the federal government's primary telecommunications research laboratory, CRC also assists or partners with several other departments and agencies on communications issues. Significant R&D and program delivery is undertaken for National Defence and the Canadian Space Agency on a cost-recovery basis.

Program Activity: Technology Partnerships Canada — S&T and Innovation

Description: Encouragement of commercialization through strategic investments in innovative research and development
Expected Result			Indicators
Commercialization encouraged through strategic partnering in innovative research and development			Total number of projects (which represents the number of strategic partnerships)
2006–2007		2007–2008		2008–2009
$510.0M	142 FTEs	$398.7M	162 FTEs	$359.9M	162 FTEs

In September 2005, Technology Partnerships Canada (TPC) was closed to new applications in the areas of environment and enabling technologies, but it remains open to new aerospace and defence applications. TPC's terms and conditions expire on December 31, 2006. Options regarding the future of TPC are being considered.

In October 2005, the Program for Strategic Industrial Projects (PSIP) was established. The PSIP aims to provide a framework within which a variety of larger strategic investment projects may be administered. The PSIP will contribute to the achievement of Canada's objectives of increasing economic growth, creating jobs and wealth, and supporting sustainable development. It advances government initiatives by investing strategically in industrial research, pre-competitive development, and technology adaptation and adoption to encourage private sector investments.

Strategic Outcome: Competitive Industry and Sustainable Communities

Each of the following program activities contributes to the strategic outcome through programs and initiatives, policy development and service delivery. Both financial and non-financial information is provided for each program activity. The expected results and indicators represent a preliminary attempt at demonstrating how Industry Canada will measure its performance against the results it aims to achieve. Further details on the programs and initiatives mentioned in the text below can be found in the Appendix.

Plans by Program Activity

Program Activity: Policy Sector — Economic Development

Description: Development of industry and international business policy
Expected Result			Indicators
Development and coordination of policy frameworks in support of competitive industry and sustainable communities			Ongoing policy and program oversight and development is advanced with a view to enhancing industry competitiveness
2006–2007		2007–2008		2008–2009
$11.5M	82 FTEs	$10.9M	82 FTEs	$10.9M	82 FTEs

The Policy Sector is responsible for the administration of the Investment Canada Act (ICA). This responsibility includes reviewing and assessing significant investment proposals by non-Canadians to determine if they demonstrate a net benefit to Canada. This is followed up by monitoring the implementation of investors' plans and undertakings. The ICA and regulations prescribe the legal responsibilities of non-Canadians investing in Canada, as well as the information that they are required to submit.

As the lead department responsible for the Agreement on Internal Trade (AIT), Industry Canada will coordinate and encourage other federal departments to make progress on internal trade initiatives. Building on two successful federal, provincial and territorial meetings in December 2004 and June 2005, the ministerial Committee on Internal Trade (CIT) is moving forward on a work plan to reduce remaining internal trade barriers. It includes an action plan aimed at addressing outstanding labour mobility issues, a proposed work plan on the harmonization of regulations and standards, improvements to the dispute resolution process, and clarification of the AIT concerning how governments buy goods and services.

The federal government will work with the provinces and territories to advocate that professionals and tradespersons qualified to work in one province or territory can take advantage of job opportunities in another. It will also continue to advocate for negotiations on an energy chapter which would lay the policy framework for expanded electricity interconnections between provinces and territories.

Addressing the financing needs of SMEs will remain an important priority of Industry Canada. Officials will continue to work closely with the Business Development Bank of Canada concerning its mandate to fill marketplace gaps of private sector financial institutions, focusing particular attention on venture capital. Further to findings from the comprehensive review of the Canada Small Business Financing (CSBF) Program in 2004–2005, Industry Canada will advance regulatory amendments to reduce administrative burden on lenders using the program by bringing it in line with their conventional lending practices. The Department will continue research to ensure program effectiveness. A five-year review of the Capital Leasing Pilot Project has commenced and will provide input to recommendations regarding the future of capital leasing under the Canada Small Business Financing Act. The Department will also continue to deliver an ongoing program of research and analysis on SME financing issues through the SME Financing Data Initiative — a partnership among Industry Canada, Statistics Canada and the Department of Finance. Results will continue to be reported regularly to parliamentarians, stakeholders and SMEs.

The Policy Sector is also committed to building on Industry Canada's past accomplishments in sustainable development, and to addressing emerging challenges and opportunities to ensure a more sustainable future for Canadians. Industry Canada's third sustainable development strategy (SDS III) for 2003–2006 supports a vision of Canada as a leader in the development, commercialization and adoption of sustainable development tools, practices and technologies throughout the economy. SDS III commits the Department to playing a strategic enabler role and promoting innovative, sustainable development solutions through the following strategic outcomes:

• innovation toward sustainable development;
• corporate and community sustainability; and
• sustainable development capacity building within Industry Canada.
  
  

Development of the Department's next sustainable development strategy (SDS IV) is now under way. Internal and external issue scans, including public consultations, will be conducted over the next six months. SDS IV is scheduled to be published by December 2006 (for more information, see Table 16).

Program Activity: Operations Sector — Economic Development

Description: Delivery of programs, information and intelligence on investment and technology opportunities to the business community. Provision of a multi-channel, common entry point for business on behalf of the Government of Canada, and encouragement of client-centred service delivery and design
Expected Result			Indicators
Improved access to capital and information for SMEs and communities targeted by Operations Sector programs			Number of loans — year over year — registered through the CSBF Program
			Number of SMEs — year over year — created or strengthened through FedNor and ABC
			Percentage of Ontario population that has benefited from investments made under COIP
			Percentage of official-language minority communities that have benefited from investments made under the Section 41 program
			Increase in number of SMEs served through Canada Business service centres (service usage)
2006–2007		2007–2008		2008–2009
$349.4M	465 FTEs	$306.4M	463 FTEs	$252.6M	464 FTEs

The Security and Prosperity Partnership (SPP) was launched in March of 2005 to increase security and enhance prosperity in Canada, the U.S. and Mexico through greater cooperation on the full range of issues across government. SPP initiatives are designed to improve North American competitiveness, and ensure that citizens benefit from high standards of health, safety and joint stewardship of the environment. As Minister of Industry, Minister Bernier is the Canadian lead for the prosperity agenda of SPP. He works closely with his North American counterparts, as well as Canada's Public Safety and Foreign Affairs Ministers and their counterparts, on SPP initiatives.

Aboriginal Business Canada's (ABC's) investments leverage considerable additional investment in support of Aboriginal businesses across Canada. ABC will continue to promote the creation and expansion of viable businesses in Canada that are owned and controlled by Aboriginal people. ABC's Aboriginal Business Development Program will continue to direct investments into the strategic priority areas of trade and market expansion, tourism, youth entrepreneurship, and innovation.

ABC's Aboriginal Capital Corporations (ACCs) and Access to Capital (ATC) components will continue to provide operational support to a network of 30 ACCs to help defray the high costs of developmental lending and the costs associated with advisory services. This will include support for loan monitoring / business support officers. ABC will also ensure that the ACCs have access to additional capital for developmental loans and financial instruments that address the growth needs of Aboriginal businesses. This access will be facilitated by providing capital top-ups where required and expanding the Aboriginal Youth Business Initiative to ensure the development and success of youth-owned businesses.

The Federal Economic Development Initiative for Northern Ontario (FedNor*) will continue, as a regional development organization in Ontario, to work with partners to help create an environment in which communities can thrive, businesses can grow and people can prosper. FedNor achieves this through the delivery of strategic programs that promote sustainable development of communities, encourage innovation and strengthen the competitiveness of SMEs.

* FedNor is a program delivery organization for regional development in Ontario, for which the Minister of Industry is responsible under the Department of Industry Act. The Honourable Tony Clement, in his capacity as Minister for FedNor, exercises, on behalf of the Minister of Industry, the statutory responsibilities and the powers and duties related to FedNor and its programs.

To promote economic growth in Northern Ontario, FedNor delivers the Northern Ontario Development Program that invests in projects in six key areas:

• provision of business financing support through partnerships with financial institutions and various other investment mechanisms, including the Northern Ontario network of Community Futures Development Corporations;
• telecommunications infrastructure, networks and ICT applications;
• innovation and the use of technology to increase competitiveness in the knowledge-based economy;
• trade and tourism initiatives that help build the North's capacity to compete in a global marketplace;
• community economic development, through support for activities such as community capacity building, strategic planning and economic infrastructure that results in long-term benefits, including job creation, economic diversification and enhanced business competitiveness; and
• development of human capital, including special client groups such as youth.
  
  

FedNor also administers the Community Futures Program in Ontario, which supports a network of 61 Community Futures Development Corporations (CFDCs) throughout rural Ontario. The program enables CFDCs to provide the following:

• repayable financing for local businesses;
• business services for SMEs and social enterprises;
• strategic community planning and implementation; and
• implementation of strategic community projects and other initiatives, in collaboration with other partners.
  
  

As a federal presence in Northern and rural Ontario, FedNor's organizational capacity and established networks also allow it to deliver other national initiatives and targeted regional programming that promote socio-economic development in Ontario. For example, FedNor delivers the Eastern Ontario Development Program, which promotes rural socio-economic development in Eastern Ontario, leading to a competitive and diversified regional economy and contributing to the successful development of business and job opportunities, as well as sustainable self-reliant communities. The program targets five priority areas:

• business and community development;
• access to capital;
• skills development;
• retention and attraction of youth; and
• technological enhancements.
  
  

The Operations Sector will continue to deliver the CSBF Program, an important initiative designed to benefit small businesses. The CSBF Program increases the availability of loans and leases for establishing, expanding, modernizing and improving small businesses by encouraging financial institutions and leasing companies to make financing available to small businesses. Canadians benefit from the CSBF Program, as it helps businesses grow and create jobs, which results in a more dynamic Canadian economy.

Industry Canada delivers, on behalf of Infrastructure Canada, the Ontario components of three national infrastructure programs:

• The Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) is the Ontario component of the $1-billion national Municipal Rural Infrastructure Fund (MRIF). Through an innovative joint federal–provincial secretariat, the governments of Canada and Ontario are each contributing up to $298 million to COMRIF to target the infrastructure needs of small and rural communities with populations of less than 250,000.
• COMRIF's Intake One was launched on November 15, 2004, and approved projects were announced on April 25, 2005. Over $249 million in funding was announced for 120 Ontario communities. Intake Two was launched on June 16, 2005, and announcements were made on April 21, 2006. Intake Three was launched on June 20, 2006, and will close on September 13, 2006; results will be announced in early 2007. Priorities for all Intakes were the same: local bridges and roads, solid waste management, and water and wastewater (i.e. sewage). The capacity-building and asset-management component of COMRIF is intended to take place during Intake Three in order to deliver on this joint commitment as specified in the Agreement. Processing Intake One claims was a focus early in the year, along with preparation for the monitoring of Intake One and Two projects and the launch of Intake Three. Staff will continue to fulfill Industry Canada's responsibilities under the Environmental Assessment Act by completing project screenings and comprehensive studies.
• The $2.05-billion Infrastructure Canada Program is helping to renew and build infrastructure in rural and urban municipalities across Canada. Through this initiative, the $680.7-million Canada-Ontario Infrastructure Program has invested in green municipal infrastructure, culture, tourism and transportation across Ontario since 2000. Environmental assessments will continue to be processed as well, under COIP.
• The $4-billion Canada Strategic Infrastructure Fund (CSIF) emphasizes public–private partnerships and focuses on large-scale projects of national and regional significance. Industry Canada manages four CSIF projects in Ontario.
  
  

Over the past three years, Industry Canada has led the development of a service-to-business vision through extensive consultation with stakeholders and various interdepartmental and inter-jurisdictional committees. The service-to-business vision looks to enhance business competitiveness by improving the effectiveness of service delivery across government and by building on existing partnerships and government-wide platforms to deliver seamless, multi-channel, multi-jurisdictional information and services, at low cost, to businesses.

Industry Canada has delivered on the service-to-business vision through Canada Business, a multi-channel government information service for businesses and start-up entrepreneurs in Canada, and through BizPaL, an online service that simplifies the business permit and licence process for entrepreneurs, governments and third-party business service providers.

Canada Business introduced a new approach to the delivery of online information by implementing a content syndication pilot project and an assessment of “My Account” for business and the possibility of an expanded use of a business identifier. Content syndication is a new and highly effective way to extend the reach of Canada Business information and services by rendering relevant information directly into partners' websites. Canada Business will continue to evolve content syndication in 2006–2007 by increasing the number of partners and offering a wider selection of syndicated content and services.

To help lower the cost of doing business, Budget 2006 provides $6 million over two years to accelerate expansion of the BizPaL initiative. BizPaL is a web-based service that allows businesses to generate a customized list of the permits and licences they require from all levels of government.

As BizPaL is a self-service tool, governments will be able to redirect valuable client service resources. The collaboration within and between governments that is at the core of the BizPaL tool will ultimately lead to more streamlined and efficient government services.

BizPaL will continue to support the Government of Canada in realizing the objectives of both its Paperwork Burden Reduction Initiative and Smart Regulations initiative through the reduction of unnecessary paper burden and regulatory red tape. BizPaL is now able to expand its partnerships with departments, provinces and municipalities, as well as broaden its reach beyond the realm of permits and licences into other areas of regulation.

Student Connections will continue to provide e-business and Internet training to SMEs through its 15 centres across Canada. Throughout the past decade, Student Connections services have evolved from basic Internet training to more advanced e-business consultations to help SMEs become more competitive through the adoption of online business practices.

Officially announced on May 16, 2005, the Network for Women Entrepreneurs (NWE) will be delivered through the Canada-Ontario Business Service Centre. The NWE builds on existing federal, provincial and municipal business networks to avoid duplication and overlap. The NWE will provide women entrepreneurs in Ontario with information on programs and services to start and grow their businesses, guidance in locating key community support services, networking opportunities, and other services tailored to the needs of businesswomen.

Program Activity: Industry Sector — Economic Development

Description: Development of initiatives that support global competitiveness and sustainable economic growth in priority sectors and emerging technologies
Expected Result			Indicators
More firms capable of competing in global markets			Dollar value of exports
			Number of Canadian firms in the export market as a proportion of all firms operating in Canada
			Dollar value of investments (domestic and foreign)
2006–2007		2007–2008		2008–2009
$96.3M	257 FTEs	$71.1M	257 FTEs	$48.2M	253 FTEs

The Industry Sector is leading several initiatives intended to help Canadian firms move up the value chain and become more competitive and integrated within domestic and global supply chains.

One example is in the automotive sector, where sustained competitiveness, innovation and productivity have been the subjects of consultations with stakeholders, including industry representatives, the provinces and territories, labour, and academia through the work of the Canadian Automotive Partnership Council. Industry Canada has also consulted extensively with other government departments.

Canada's aerospace industry is the fourth largest in the world and is a substantial generator of wealth for the country. The Industry Sector has worked with a broad range of stakeholders, including representatives from the industry, the space sector, labour, academia and provincial/territorial governments, to address the needs of the aerospace sector across the country and to articulate key challenges and opportunities, such as Canada's need to maintain and strengthen technological capabilities.

Global supply chains are becoming a more established way of doing business. For example, firms are increasingly outsourcing some of their activities to third parties or locating parts of their supply chains abroad. This allows them to focus on their core competencies and to exploit global differences in factors such as production costs and resource endowments. The Industry Sector will build on several initiatives undertaken in 2005–2006, such as the Global Supply Chains Conference, to deepen our understanding of developments in global supply chains and their economic implications for Canada. The Industry Sector will also pursue its work with Statistics Canada to develop relevant indicators with respect to global supply chains. Finally, the Industry Sector will continue to ensure that policy initiatives reflect the realities of today's global supply chains.

The Industry Sector is a partner in the Government of Canada's efforts, led by DFAIT, to stimulate trade and investment flows that can benefit the Canadian economy. The Industry Sector contributes to these efforts through strategic sectoral analysis and by participating in domestic and international visit programs. The sector also disseminates marketing tools and information, and provides support to selected major trade shows and business development missions. For example, the Industry Sector supported the Canadian delegation at BIO 2006, the world's largest biotechnology conference.

Recognizing that trade liberalization and globalization have a significant impact on the Canadian economy, the Industry Sector works in partnership with industry and other government departments to regularly assess trade policy initiatives and determine the potential challenges and opportunities they represent for Canadian firms. The Industry Sector will also contribute to these efforts by strengthening its ability to analyze industrial issues in order to ensure that policies are insightful and grounded in sound economic knowledge.

Approved in May 2005, the Smart Regulation implementation strategy aims to strengthen Canada's regulatory performance and establish a culture of continuous improvement in regulatory management across government. The Industry Sector is accountable for implementing Smart Regulation across the Industry Portfolio, and for strategic leadership across government on the policy theme: innovation, productivity and business environment. The Industry Sector will implement the second phase of the strategy, including integrating the new Government Directive on Regulating and its related analytical frameworks and tools. The Industry Sector will also lead a program of policy research and evidence-based analysis of regulatory initiatives aimed at building the right investment environment and promoting regulatory efficiency.

SourceCAN, a multi-sectoral initiative led by the Industry Sector in partnership with federal government departments and agencies and the provinces, has proven to be a particularly effective tool for enhancing Canadian firms' access to domestic and international business opportunities. SourceCAN will continue to strengthen the position of Canadian businesses with key traditional markets such as the United States and the European Union, as well as with emerging markets.

The Industry Sector has managed a small number of targeted interventions, through which the Government of Canada sought to encourage selected Canadian industries to become more competitive in the face of particularly intense international pressures by investing in capital, equipment and skills. Examples of these interventions included the Structured Financing Facility, which provided support to domestic and foreign shipowners that intend to build vessels in Canada, and the Canadian Apparel and Textile Industries Program (CATIP). The Textile Production Efficiency Component of the Canadian Textiles Program (CANtex) helped Canadian textile manufacturers improve their productivity and reorient their production toward higher-value-added products for niche markets.

Program Activity: SITT Sector — Economic Development

Description: Promotes economic development by ensuring that Canadians, communities and businesses have access to reliable, modern ICT infrastructure and the skills to fully participate in the digital economy. Enhances entrepreneurship and lifelong learning by fostering the creation of advanced, enabling applications and technologies. Supports the development of a competitive ICT industry in Canada.
Expected Result			Indicators
Canadians and communities overcoming barriers to, and accessing use of, modern ICT infrastructure			Number of Canadians and communities accessing and using ICTs
Canadian ICT companies positioned for growth in the global marketplace			Level of awareness of opportunities, gaps and barriers affecting ICT sector growth
2006–2007		2007–2008		2008–2009
$76.0M	165 FTEs	$29.8M	64 FTEs	$28.6M	59 FTEs

The SITT Sector supports regional and rural economic development by ensuring that Canadians have access to ICTs and modern ICT infrastructure through programs such as the Community Access Program (CAP), SchoolNet, the Broadband for Rural and Northern Development Pilot Program (Broadband Program), the National Satellite Initiative and CA*net 4. The Broadband Program and the National Satellite Initiative work together with various partners to lead the deployment of advanced information and communications infrastructure in Canadian communities, especially those affected by the digital divide, such as First Nations, Northern, rural and remote communities. In Northern Ontario, this work will be further supported by FedNor.

The distribution of funding for the pilot program is nearing completion, and the projects implemented under the pilot program will be completed in 2006–2007. Options for the future for the Broadband Program are currently being assessed.

The SITT Sector will continue to undertake economic analyses and monitor industry trends and emerging sectors critical to priority setting and decision making for the ICT sector. In addition to influencing government decision making and policy development, the SITT sector will provide business development services to exploit commercial opportunities for the ICT sector, and will represent the assistive technology industry in Canada.

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