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ARCHIVED - RPP 2006-2007
Industry Canada

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Section 1: Minister's Message

Photo: Maxime Bernier, Minister of Industry Canada

As Minister of Industry, I am proud to present this report on Industry Canada's Portfolio initiatives that encourage economic growth and prosperity in Canada. Through the programs of Industry Canada and its Portfolio partners, we work to ensure that Canada has the necessary infrastructure and frameworks in place to foster a culture of research, innovation and adaptability.

Today, we face an economic environment characterized by blurring borders, complex and interconnected supply chains, and increasing competition from emerging markets. For the Canadian economy to thrive and prosper, a strong economic union capable of adjusting quickly — with a mobile, highly skilled workforce and barrier-free economy — will be more important than ever.

Looking ahead, we see the need to continue modernizing and improving Canada's marketplace frameworks — the critical ground rules that ensure stability, equitable conduct and competition for businesses, consumers and investors. Used strategically, the right frameworks encourage investment in innovation, afford easier access to capital, support risk-taking and entrepreneurship, and ensure the efficient and productive allocation of resources.

We are working to reduce the barriers to entry to Canadian markets, encourage foreign direct investment and reinforce business confidence and consumer trust in the conduct of commerce. These activities will help ensure that Canada is at the forefront of technological change and competes successfully in a highly competitive international environment.

One way in which the Government of Canada encourages innovation is by promoting research and development. And the need for innovation across the Canadian economy — including in the areas of health care, productivity and the competitiveness of Canadian firms — continues to rise.

The work of the Department and its Portfolio partners is setting the stage for Canadian companies to seize the opportunities that present themselves, enabling them to leverage and showcase Canadian innovation and expertise in the global marketplace.

This report describes the Department's initiatives to achieve our goals and objectives over the next three years, as we continue to build an economy for the 21st century.

It is my pleasure to present the Report on Plans and Priorities for Industry Canada.

Maxime Bernier
Minister of Industry

1.2  Management Representation Statement

I submit, for tabling in Parliament, the 2006–2007 Report on Plans and Priorities (RPP) for Industry Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006–2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the TBS guidance;
  • It is based on the Department's approved accountability structure as reflected in its Management, Resources and Results Structure (MRRS);
  • It presents consistent, comprehensive, balanced and reliable information;
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

Richard Dicerni
Deputy Minister


1.3  Industry Canada's Program Activity Architecture

To strengthen accountability and reporting, the Government of Canada uses an integrated expenditure system called the Management, Resources and Results Structure (MRRS). A key component of the MRRS is the Program Activity Architecture (PAA), which links resources to strategic outcomes. Importantly, PAAs also establish performance measures for reporting to Parliament, thus linking areas of expenditure with performance.

Conceptually, a PAA is an inventory of all the programs and activities undertaken by a department or agency. The programs and activities are organized in a logical and hierarchical relationship to each other and to the strategic outcomes to which they contribute. A strategic outcome is a long-term and enduring benefit to Canadians that stems from a department's or agency's mandate and vision. It represents the difference a department or agency intends to make for Canadians and should be measurable and within the department's sphere of influence.

Industry Canada's strategic outcomes are:

  • a fair, efficient and competitive marketplace;
  • an innovative economy; and
  • competitive industry and sustainable communities.

A PAA may be made up of several strategic outcomes and multiple layers of activities that support it. This is graphically represented as follows:

Program Activity Architecture - Activities contributing to the Department's strategic outcomes

Industry Canada's PAA links financial and non-financial information, and it articulates how Industry Canada's sectors, branches, programs and initiatives contribute to the Department's three strategic outcomes. In developing its PAA, Industry Canada has to measure expected results and indicators for each activity. These expected results and indicators are presented in this report.

In identifying expected results, Industry Canada is demonstrating its contribution to improving the standard of living and quality of life of Canadians, while recognizing that Industry Canada is only one of many players that have an influence on Canada's economic well-being. It is important to note that PAAs are dynamic structures that reflect the evolving nature of departments and will change to reflect maturing performance measurement approaches.

Over the past year, Industry Canada has updated and realigned its policy and operational agendas. The operational changes have led to reorganization of the branches within the Industry Sector and the Operations Sector to better reflect the Department's priorities and clarify responsibilities. In addition, there has been a consolidation of departmental information management and information technology (IM/IT) functions into the Chief Information Office Sector.

The Policy Sector has also been reshaped to create a more focused Strategic Policy group, and a new Science and Innovation group will better focus on innovation policy in its broadest sense. Additionally, on February 6, 2006, the Prime Minister announced the transfer of the Office of the Registrar of Lobbyists from the Industry Portfolio to the Treasury Board Portfolio as a stand-alone office. The transfer will be reflected in the 2006–2007 Supplementary Estimates and the 2007–2008 Annual Reference Level Update.

In May 2006, the National Science Advisor (NSA) was transferred from the Privy Council Office to Industry Canada. The NSA supports the mandate of Industry Canada, and this change was in keeping with departments having the overall leadership of policy and program files for which their Ministers are responsible.

The specifics of Industry Canada's PAA and strategic outcomes are addressed in this section of the report. Section 2 provides information on Industry Canada's program activities. Information on the sub- and sub-sub-program activities is provided in the Appendix.

1.4  Summary Information

Industry Canada's Mandate

The Department's mandate is to help make Canadians more productive and competitive in the global economy, thus improving the standard of living and quality of life in Canada. Industry Canada's policies, programs and services help grow a dynamic and innovative economy that achieves the following:

  • provides more and better-paying jobs for Canadians;
  • supports stronger economic growth through continued improvements in productivity and innovation performance;
  • gives businesses, consumers and investors confidence that the marketplace is fair, efficient and competitive; and
  • integrates the economic, environmental and social interests of Canadians.

Industry Canada will continue to work to foster growth and create high-quality, well-paying jobs through its strategic outcomes:

  • a fair, efficient and competitive marketplace;
  • an innovative economy; and
  • competitive industry and sustainable communities.

These three strategic outcomes are mutually reinforcing. Sound marketplace frameworks help establish a business environment that supports innovation, investment and entrepreneurial activity. Fostering innovation in science and technology helps ensure that discoveries and breakthroughs happen here in Canada, and that the social and economic benefits of these innovations contribute to improving Canadians' standard of living and quality of life. Encouraging investment in technology will help Canadian businesses to compete in the global marketplace and increase opportunities for trade. Successful businesses combined with a sound environment form the sustainable communities that attract investment. Taken together, the Department's strategic outcomes support growth in employment, income and productivity, and promote sustainable development in Canada.

This Report on Plans and Priorities provides information about how Industry Canada will support the broad goals of the Government of Canada by continuing to work with its partners and stakeholders to improve the quality of life of Canadians.

Industry Canada Organizational Information

Industry Canada's organizational chart illustrates the Department's accountability structure. Included in the chart are the number of full-time equivalents for each organization.

Industry Canada Organizational Information
Enlarge image

Industry Canada's Financial and Human Resources

The following two tables present Industry Canada's financial and human resources over the next three fiscal years.

Financial Resources: Total Planned Spending (millions)
2006–2007 2007–2008 2008–2009
$1,357.7 $1,087.9 $985.0

Human Resources (Full-Time Equivalents)
2006–2007 2007–2008 2008–2009
6,104 6,067 6,059

Summary Table of Priorities by Strategic Outcome

The following table presents Industry Canada's priorities by strategic outcome. The strategic outcomes represent the top level of the Department's PAA; in other words, they are the enduring benefits that Industry Canada strives to achieve for Canadians. The indicators included allow Industry Canada to measure its contribution to these outcomes. Overall, measurement allows the Department to see how well it is doing and where adjustments need to be made. The table also provides the financial and human resources allocated to each strategic outcome over the next three fiscal years.

Strategic Outcome
A fair, efficient and competitive marketplace
  • Barriers to competition
  • Regulatory and administrative opacity
Sectors/organizations whose program activities support this strategic outcome
  • Policy Sector
  • Operations Sector
  • Spectrum, Information Technologies and Telecommunications Sector
  • Office of Consumer Affairs
  • Competition Bureau
  • Canadian Intellectual Property Office — Revolving Fund
(for more information, see Section 2)
Planned Spending and Full-Time Equivalents*
2006–2007 2007–2008 2008–2009
$201.9M 3,208 FTEs $174.0M 3,253 FTEs $187.8M 3,253 FTEs
Priority: Continuing to modernize marketplace frameworks in support of a highly competitive and innovative economy for the benefit of all Canadians
(ongoing) (see details)
Strategic Outcome
An innovative economy
  • Government expenditure on R&D
  • Gross domestic expenditure on R&D (GERD) as a percentage of gross domestic product (GDP)
  • University–industry collaboration in R&D
  • Investment in venture capital
Sectors/organizations whose program activities support this strategic outcome
  • Policy Sector
  • Industry Sector
  • Spectrum, Information Technologies and Telecommunications Sector
  • Communications Research Centre Canada
  • Technology Partnerships Canada
(for more information, see Section 2)
Planned Spending and Full-Time Equivalents*
2006–2007 2007–2008 2008–2009
$622.7M 732 FTEs $495.7M 752 FTEs $456.9M 752 FTEs
Priority: Ensuring the strategic allocation of resources
(ongoing) (see details)
Priority: Supporting the generation and commercialization of knowledge
(ongoing) (see details)
Strategic Outcome
Competitive industry and sustainable communities
  • Investment in machinery and equipment as a proportion of GDP
  • Use of information and communications technologies (ICTs)
Sectors/organizations whose program activities support this strategic outcome
  • Policy Sector
  • Operations Sector
  • Industry Sector
  • Spectrum, Information Technologies and Telecommunications Sector
(for more information, see Section 2)
Planned Spending and Full-Time Equivalents*
2006–2007 2007–2008 2008–2009
$533.2M 961 FTEs $418.2M 860 FTEs $340.3M 849 FTEs
Priority: Implementing strategic frameworks for priority industrial sectors that have an important impact on the Canadian economy
(ongoing) (see details)
Priority: Working with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development
(ongoing) (see details)

FTEs not including Corporate and Management Services.

1.5  Departmental Plans and Priorities

This section provides more detail on the Department's high-level priorities, presented by strategic outcome in the table on the preceding pages. It explains why these priorities are important for Industry Canada in delivering on its mandate. Further details on the Department's plans to achieve the priorities for this planning period, including how some specific programs and initiatives will contribute to these plans and priorities, follow in Section 2.

Strategic outcome: A fair, efficient and competitive marketplace

A fair, efficient and competitive marketplace creates a business environment that provides incentive for innovation and economic growth, and supports individual Canadians.

In order for the marketplace to be responsive, foster confidence, attract investment and support consumers, marketplace frameworks need to promptly and appropriately address illegal and fraudulent marketplace behaviour, encourage innovation, and minimize unnecessary regulatory burden. In a 21st-century economy, the evolving marketplace, economic fluctuations and deregulation are among the many factors that necessitate the continual review of services, interventions and tools.

Part of the Government of Canada's economic strategy is to provide streamlined access to government services to make it easier for both businesses and consumers to do business in Canada. This includes a transparent and predictable regulatory system that accomplishes policy objectives while mitigating unintended impacts, as well as providing an up-to-date legislative framework for business.

Priority: Continuing to modernize marketplace frameworks in support of a highly competitive and innovative economy for the benefit of all Canadians

Sound marketplace frameworks create the conditions for entrepreneurship, innovation, investment and competitiveness. They are also essential for wealth creation, and they give Canadians the means to make appropriate and informed individual and societal choices. Further growth of Canada's knowledge and information economy requires new rules and the elimination of old ones to deal with unprecedented innovations and technological developments. A dynamic and competitive marketplace provides clear, transparent and predictable rules for all players, and balances incentives for investors and entrepreneurs with fairness for consumers. Effective marketplace frameworks encourage the creativity that leads to innovation, and they determine the conditions within which all sectors of the economy operate.

Industry Canada will continue to adapt key marketplace frameworks in support of an innovative economy. The Department will also work to harmonize the regulatory system, thus reducing duplication and regulatory overlap.

Industry Canada and its marketplace service organizations will concentrate their efforts on improving marketplace programs and services, increasing education and awareness, and enhancing compliance and enforcement with marketplace rules and regulations.

Strategic outcome: An innovative economy

An enhanced quality of life, better-paying jobs and the capacity to support social goals require an innovative and competitive economy. To meet the challenges of the 21st century, a country must be able to generate and apply knowledge, and develop new products or processes based on the knowledge acquired. In today's knowledge-based economy, innovation is a key driving force in creating wealth and economic growth for Canadians. Innovation is also critical for making improvements in eco-efficiency and ensuring progress on sustainable development.

Priority: Ensuring the strategic allocation of resources

Competing in a knowledge-based economy requires the development, application and diffusion of strategic, enabling technologies, such as information and communications technologies (ICTs). Enabling technologies have broad application, yielding opportunities for competitive improvements across numerous sectors.

Canadian firms' investment in leading-edge machinery and equipment is relatively low by Organisation for Economic Co-operation and Development (OECD) standards. A key challenge for Canada's economic agenda is to foster a business environment that will stimulate greater investment in the creation and adoption of enabling technologies.

Priority: Supporting the generation and commercialization of knowledge

For Canada to live up to its innovation potential, it must continue to support the creation of knowledge, as well as support the transfer of scientific and technological advances made possible by university and government research into the private sector.

The private sector in Canada has a significant role to play in harnessing the social and economic benefits of R&D, through the commercialization and adoption of technology. Unfortunately, commercialization by Canada's private sector continues to lag behind that of leading OECD member countries. To improve Canada’s commercialization performance and the global performance of our firms, and to take full advantage of Canada's strong and diverse knowledge base, the Department will review government support in the areas of research and commercialization.

Strategic outcome: Competitive industry and sustainable communities

Competitive industries and sustainable communities are vital to any country that aims to ensure continuous economic growth and a high quality of life into the future. The competition for investment, skilled workers and customers has never been more intense than it is today. Canada has performed well over the past decade in this environment. Investments in public R&D and in the skills of Canadians are paying off. Despite Canada's recent gains, however, emerging economies in countries such as China and India are forcing us to improve our competitiveness even further.

Economic growth also depends on international trade and access to foreign markets. More than any other G8 country, Canada relies on international trade for economic growth: almost 50 percent of our GDP results from international trade. Promoting investment in the development of value-added industries, particularly in key sectors, creates jobs and strengthens Canadian communities. New trade opportunities evolve from successful investments, and both new investment and reinvestment are crucial for industry to achieve Canada's sustainable development goals.

Industry Canada will continue to seek ways to help improve the competitiveness of Canadian businesses, improving innovation and strengthening competitiveness. Industry Canada will also work closely with the Department of Foreign Affairs and International Trade (DFAIT) on Canada's trade and investment negotiations to facilitate access to export markets for Canadian products, contribute to the development of rules governing international trade, and ensure that Canada's approach across a range of international forums reflects our domestic industrial agenda.

Priority: Implementing strategic frameworks for priority industrial sectors that have an important impact on the Canadian economy

Industry Canada will continue to pursue a variety of initiatives aimed at maintaining the competitiveness of Canadian businesses.

Ensuring that Canadians acquire the skills that are highly valued by growing, innovative companies is a vital component of the Department's strategy. Industry Canada will work with businesses to ensure access to foreign markets, improve innovation and strengthen competitiveness.

Priority: Working with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development

The foundation for Canada's economic development is provided by small and medium-sized enterprises (SMEs). As their operating environment becomes increasingly competitive, Industry Canada remains committed to undertaking research and analysis in order to understand the challenges and opportunities that SMEs face. Furthermore, the Department will continue to develop programs, policies and services that allow SMEs to respond to these particular challenges and opportunities. As in the past, emphasis will be placed on encouraging growth and productivity improvement, facilitating access to appropriate financing, and promoting trade.

Although progress has been made, more needs to be done to ensure that Canada's prosperity is shared by all communities, including those of Aboriginal Canadians. Industry Canada is working together with Aboriginal Canadians to create the conditions for long-term economic development.

Sustainable development, along with productivity, employment and income growth, is an integral part of growing a dynamic economy. Industry Canada will continue to be guided by the strategic vision of being a leader in the development, commercialization and adoption of sustainable development tools, practices and technologies throughout the economy. This vision reflects the Department's mandate to help Canadians be more productive and competitive in the knowledge-based economy, and thus improve their standard of living and quality of life.

1.6  Industry Canada's Management Priorities

Industry Canada is committed to strengthening departmental management practices, and uses the Management Accountability Framework (MAF) as a tool for advancing its management priorities. In 2006–2007, work will continue on government-wide management priorities and on priorities of the Department's management agenda. Departmental management priorities and initiatives are identified through the MAF's external and internal assessment processes.

A number of initiatives have already been identified for 2006–2007 in key management areas, which include management accountability, values and ethics, human resources, business planning, risk management, information technology and information management, and corporate services. The details of these initiatives are provided in the following.

Federal Accountability Act

On April 11, 2006, the Government of Canada introduced the Federal Accountability Act and Action Plan, delivering on its commitment to make government more accountable. Through the Federal Accountability Act and Action Plan, the Government of Canada is bringing forward specific measures to help strengthen accountability and increase transparency and oversight in government operations.

Industry Canada will be working with the Treasury Board Portfolio and other departments and agencies to put in place the measures announced by the government and review departmental management practices to determine ways of reducing unproductive rules and controls and placing greater reliance on the principles of management accountability and transparency. As outlined in the Federal Accountability Action Plan, grants and contributions, procurement, financial management, protection measures for disclosure of wrongdoing, and professional excellence of the public service will be the areas of particular focus over the coming year.

Values and Ethics

For several years now, the Department has identified values and ethics as a management priority, and has undertaken specific initiatives to address this priority. These initiatives include training on the Values and Ethics Code for the Public Service, reaching more than 900 employees; training for high-risk programs; the active ongoing review of conflict of interest and post-employment issues; communications to all employees; and the implementation of processes to deal with wrongdoing and harassment issues.

Building on the work undertaken, Industry Canada will continue to plan and undertake initiatives that will allow the Department to make progress in developing a values and ethics culture and informing employees of their responsibilities. In addition, the Department will develop tools to aid employees and managers in implementing values and ethics in their day-to-day work.

In 2006–2007, focus will be placed on continued training, disclosure protection, provision of guidance to employees, identification and communication of shared values, and development of specific tools for managers and employees.

Integrate Human Resource and Business Planning

Industry Canada's human resource planning process was launched in fall 2005. For 2006–2007, the minimum human resource planning requirement at Industry Canada is a one-year, integrated human resource and business plan, which focuses on the staffing implications of implementing the organization's business strategies. Due to the size and diversity of the Department, "organization" for the purposes of human resource planning is defined as sectors/branches reporting directly to the Deputy Minister or Associate Deputy Minister (11 plans), with the exception of Operations Sector, where 15 separate organizational plans are required.

One of the key challenges associated with the implementation of a formal human resource planning process at Industry Canada is ensuring the integrity of the data provided to managers in support of their planning efforts. The Department has developed branch/sector-level workforce profiles, which include demographic data, as well as statistical data on staffing trends. Steps are being taken to address data integrity issues that currently limit the timeliness and reliability of Human Resources Management System-based reporting. This issue will be a priority to address in 2006–2007.

Modernize Staffing Initiatives for 2006–2007

With the coming into force of the new Public Service Employment Act on December 31, 2005, a new Industry Canada staffing framework also came into effect. The training of sub-delegated managers began in November 2005 and will continue until March 2006 and beyond. In 2006–2007, an analysis of training needs for other target audiences will be conducted, and a training strategy will be developed and implemented accordingly. During this period, a framework to monitor staffing will also be implemented, with a view to ensuring that staffing authorities are being properly exercised. In addition, a review of the Department's staffing framework (policies, guidelines, sub-delegation and accountability) will be conducted to ensure that the framework adequately supports managers in the exercise of their authorities and supports the Deputy Minister with respect to his accountabilities.

Conflict Prevention and Early Resolution

In the context of implementation of the new Public Service Labour Relations Act, the Office for Conflict Prevention and Early Resolution was created within the Human Resources Branch to focus on prevention, self-resolution and the early resolution of disputes. Efforts were concentrated on developing and delivering a two-day workshop for managers, human resource specialists and union representatives to better understand conflict and develop conflict management skills.

For 2006–2007, the priorities for the Office for Conflict Prevention and Early Resolution will be to continue to deliver conflict management workshops; to identify further training needs and develop training programs as required; to develop a conflict management framework (policy and guidelines), including a monitoring and evaluation capability; and to develop partnerships with other organizations to access required services in a timely manner.

Integrated Risk Management

Over the past fiscal year, the Department reached an important milestone and completed the development of a corporate risk profile. The profile identifies a series of key risk areas and corresponding potential risk events and mitigation strategies, grouped under the following five corporate risk areas:

  • information technology security
  • partnerships — outreach and communication
  • stewardship and financial management
  • governance
  • human resources management and knowledge management

The development of a risk profile is just one aspect of an ongoing and integrated risk management process. In 2006–2007, Industry Canada will focus on developing an Integrated Risk Management Framework, integrating risk management with existing corporate planning processes, strengthening the governance around risk management in the Department, refining sector-level and corporate profiles, identifying training and outreach needs, and monitoring and reporting on progress.

Strategic Policy

In response to the heightened attention to the policy integration function and strategic policy, the Department has done much work to integrate economic policies and increase the focus on strategic planning. A number of new mechanisms have been initiated that will aid the Department in achieving its policy objectives in 2006–2007:

  • The PAA was used as the basis for medium-term planning, and transition work focused on the PAA's strategic outcomes.
  • In November 2005, the policy sector was restructured to reinforce Industry Canada's role in setting the national agenda for science and innovation, as well as for industrial development and economic growth, while continuing to have a strong strategic policy function. The sector was split into two distinct groups. One focuses on innovation and science policy. The other provides a strong strategic policy function, working with specialized policy groups across the Department to bring a distinct Industry Canada perspective on industrial and economic development to tables across the government and perform a policy challenge function.

Strong Stewardship Framework

Industry Canada will continue its efforts to ensure that a strong stewardship framework is in place and adhered to within the Department. A departmental advisory committee on stewardship and management accountability issues will provide advice to senior management on comptrollership issues. This committee, called the Program and Services Board, will maintain high standards of integrity for the review of major investments, while contributing to Industry Canada's learning objectives.

Resource management tools and techniques to be upgraded include strategic management of capital funding, enhanced management reporting and resource allocation processes, and a corporate salary management and forecast system.

IM/IT Governance and Responsibilities at Industry Canada

Information management (IM) and information technology (IT) are foundational to the Department's business. Given this importance, the Department must ensure that it is strongly positioned to make IM/IT investment decisions that are fully consistent with the Department's priorities, maximize efficiencies and provide high levels of service.

Over the course of 2005–2006, a number of changes were made to the structure and governance of IM/IT services in the Department. These changes fundamentally alter the way IM/IT is governed, managed and delivered at Industry Canada.

Day-to-day management of IM/IT is the main responsibility of the Chief Information Office (CIO) Sector, and it is accountable for the overall performance, effectiveness and efficiency of IM/IT services for the Department. Under the new governance structure, an ADM-level IT Governance Committee (ITGC) acts as an oversight body to ensure that decisions related to IT investments are set in a departmental context and that they maximize efficiencies. The ITGC is supported by a DG-level IT Business Planning Committee and a working-level standards and architecture committee.

In line with vesting authority for IM/IT with the CIO and enhancing the management and efficiency of IM/IT decision making, IT functions and staff that had previously been delivered across the Department will be consolidated in the CIO Sector in order to achieve economies of scale and rationalize IT spending. This consolidation occurred in two phases. The first phase was completed in fiscal 2004–2005, and the second phase is ongoing.