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ARCHIVED - RPP 2007-2008
Industry Canada

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Section 1: Overview of the Department

1.1  Minister’s Message

Photo: Maxime Bernier, Minister of Industry

Canada’s New Government is committed to fostering a strong, competitive economy that benefits Canada and all Canadians. To achieve this goal, I firmly believe that our government must create an environment that encourages and rewards people who work hard, that stimulates innovation, and that avoids unnecessary regulatory burden. By modernizing and improving Canada’s marketplace frameworks, we will ensure stability and fairness while creating new opportunities and choices for businesses, consumers and all Canadians.

Over the past year, our government has taken significant steps to improve Canada’s economy. Early in our mandate we presented Budget 2006, which contained measures aimed at improving our quality of life by building a strong economy that is equipped to lead in the 21st century. These measures focused on making Canada’s tax system more competitive internationally, and outlined our commitments to reduce paper burden on businesses and to continue to support science and technology in Canada.

Last fall, we presented a long-term economic plan in the Economic and Fiscal Update. Advantage Canada: Building a Strong Economy for Canadians focused on creating five Canadian advantages that will give incentives for people and businesses to excel and to make Canada a world leader.

One of these proposed advantages, called the “Tax Advantage,” will create conditions more favourable to business in Canada by effectively establishing the lowest tax rate on new business investment in the G7. As well, the “Entrepreneurial Advantage” will ease the regulatory and paperwork burden imposed on business by ensuring that regulations meet their intended goals at the least possible cost.

Through Advantage Canada, our government committed to supporting science and technology in Canada, and underscored some of the elements of a science and technology strategy that will sustain research excellence in Canada and increase the competitiveness of the Canadian economy.

Canada’s New Government has repeatedly demonstrated that we are committed to getting things done for all Canadians. As we move forward, we will work more closely than ever with our stakeholders and the provincial and territorial governments, and we will continue to foster an environment where the marketplace functions as efficiently as possible, and keep encouraging investment in Canadian innovation and in research and development.

It gives me great pleasure to present the annual Report on Plans and Priorities for Industry Canada, outlining the Department’s main initiatives, priorities and expected outcomes for the upcoming year.

Maxime Bernier
Minister of Industry

1.2  Management Representation Statement

I submit, for tabling in Parliament, the 2007–2008 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 2007–2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  • It is based on the Department’s Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board;
  • 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  Structure of the Report

This Report on Plans and Priorities (RPP) is aligned with Industry Canada’s Management, Resources and Results Structure (MRRS). The MRRS provides a standard basis for reporting to parliamentarians and Canadians on the alignment of resources, program activities and results. The following three elements make up the MRRS: strategic outcomes, a Program Activity Architecture (PAA) and a description of the governance structure.

A strategic outcome is a long-term and enduring benefit to Canadians that reflects the organization’s mandate and vision. It represents the difference an organization intends to make in the lives of Canadians and is linked to Government of Canada priorities and intended results.

A PAA is an inventory of all programs and activities undertaken by an organization. The programs and activities are depicted in a logical and hierarchical relationship to each other and to the strategic outcome to which they contribute. A PAA may map to several strategic outcomes and usually consists of multiple program activities, sub-program activities and sub-sub-program activities. A PAA is graphically represented as follows:

Program Activity Architecture - Graphical representation

The structure of this RPP reflects the Department’s strategic outcomes and PAA. In this way, it articulates how Industry Canada’s sectors, branches and programs plan to contribute to the Department’s three strategic outcomes.

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’s Strategic Outcomes

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 RPP 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’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)
2007–2008 2008–2009 2009–2010
$1,140.4 $869.1 $810.6

Human Resources (Full-Time Equivalents)
2007–2008 2008–2009 2009–2010
6,055 6,050 6,034

Summary Table of Priorities by Strategic Outcome

The following table presents Industry Canada’s priorities by strategic outcome and identifies whether the priority is new, ongoing or previously committed to. It also outlines the performance indicators associated with each strategic outcome. These indicators allow Industry Canada to measure its contribution to these outcomes. In addition, the program activities that fall under each strategic outcome have been identified, and the related planned spending and FTEs for the next three fiscal years are summarized.

Strategic Outcome
A Fair, Efficient and Competitive Marketplace
Strategic Outcome Performance Indicators:
  • Barriers to competition
  • Regulatory and administrative capacity
Priorities Supporting Program Activities Expected Result Planned Spending1 ($ millions) and FTEs2
2007–2008 2008–2009 2009–2010
  • Continue to modernize marketplace frameworks to support a highly competitive and innovative economy for the benefit of all Canadians (ongoing priority)
    (View details)
Policy Sector — Marketplace Development and coordination of policy frameworks that support a fair, efficient and competitive marketplace $9.1 $10.3 $9.3
87 FTEs 87 FTEs 82 FTEs
Operations Sector — Marketplace Marketplace fairness, integrity and efficiency is protected through regulation and promotion in the areas of insolvency, weights and measures, federal incorporation, and spectrum management $91.7 $86.1 $79.7
1,332 FTEs 1,329 FTEs 1,327 FTEs
Spectrum, Information Technologies and Telecommunications Sector — Marketplace A policy and regulatory framework to govern Canada’s radiocommunications and telecommunications infrastructure in support of Canadian marketplace requirements and shape the digital economy $50.1 $46.4 $46.4
366 FTEs 366 FTEs 366 FTEs
Office of Consumer Affairs — Marketplace Strengthened responses to consumer issues $5.3 $4.9 $4.9
23 FTEs 23 FTEs 23 FTEs
Competition Bureau — Marketplace Increased compliance with legislation under the Competition Bureau’s jurisdiction $45.7 $44.2 $44.2
446 FTEs 446 FTEs 446 FTEs
Canadian Intellectual Property Office3 — Marketplace Deliver quality and timely intellectual property products and services

Increase awareness and use of intellectual property
$1.0 $10.0 $8.3
1,037 FTEs 1,047 FTEs 1,036 FTEs
Total Spending     $203.0 $201.9 $192.8
Total FTEs     3,291 FTEs 3,298 FTEs 3,280 FTEs

  1. Minor differences are due to rounding.
  2. FTEs not including Corporate and Management Services.
  3. See Table 7 in Section 3 for comprehensive financial information on CIPO (Special Operating Agency).

Strategic Outcome
An Innovative Economy
Strategic Outcome Performance Indicators:
  • Government expenditure on research and development (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
Priorities Supporting Program Activities Expected Result Planned Spending1 ($ millions) and FTEs2
2007–2008 2008–2009 2009–2010
  • Ensure the strategic allocation of resources (ongoing priority)
    (View details)
  • Support the generation and commercialization of knowledge (ongoing priority)
    (View details)
Policy Sector — S&T and Innovation Development and coordination of policy frameworks in support of an innovative economy $52.6 $54.9 $54.8
114 FTEs 115 FTEs 116 FTEs
Industry Sector — S&T and Innovation Innovative Canadian industries $11.8 $9.8 $9.8
123 FTEs 120 FTEs 120 FTEs
SITT Sector — S&T and Innovation Improved research capacity and commercialization of information and communications technologies (ICTs) $27.0 $27.0 $27.0
Communications Research Centre — S&T and Innovation Telecommunications policies, regulations and standards are developed using CRC technical input

Canadian companies in the telecommunications sector use CRC-developed technology to improve their product lines and their competitiveness
$41.5 $38.7 $38.7
411 FTEs 411 FTEs 411 FTEs
Technology Partnerships Canada — S&T and Innovation Commercialization encouraged through strategic partnering in innovative research and development $397.3 $266.9 $220.0
118 FTEs 114 FTEs 116 FTEs
Total Spending     $530.2 $397.3 $350.3
Total FTEs     770 FTEs 764 FTEs 767 FTEs

  1. Minor differences are due to rounding.
  2. FTEs not including Corporate and Management Services.

Strategic Outcome
Competitive Industry and Sustainable Communities
Strategic Outcome Performance Indicators:
  • Investment in machinery and equipment as a proportion of GDP
  • Use of ICTs
Priorities Supporting Program Activities Expected Result Planned Spending1 ($ millions) and FTEs2
2007–2008 2008–2009 2009–2010
  • Implement strategic frameworks for priority industry sectors that have an important impact on the Canadian economy (ongoing priority)
    (View details)
  • Work with Canadians to position them to take advantage of economic opportunities, support business development, provide long-term growth and promote sustainable development (ongoing priority)
    (View details)
Policy Sector — Economic Development Development and coordination of policy frameworks that support competitive industry and sustainable communities $11.2 $10.8 $10.8
89 FTEs 90 FTEs 90 FTEs
Operations Sector — Economic Development Improved access to capital and information for small and medium-sized enterprises (SMEs) and communities targeted by Operations Sector programs $282.7 $192.8 $190.3
323 FTEs 317 FTEs 316 FTEs
Industry Sector — Economic Development Competitive and sustainable Canadian industries $68.6 $38.0 $38.0
234 FTEs 229 FTEs 229 FTEs
SITT Sector — Economic Development Canadians and communities overcoming barriers to, and gaining access to, modern ICT infrastructure

Canadian ICT companies positioned for growth in the global marketplace
$44.7 $28.4 $28.4
139 FTEs 139 FTEs 139 FTEs
Total Spending     $407.2 $270.0 $267.5
Total FTEs     785 FTEs 775 FTEs 774 FTEs

  1. Minor differences are due to rounding.
  2. 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 unfair, 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. An example of how Industry Canada is modernizing marketplace frameworks is through the Paperwork Burden Reduction Initiative, which promotes the competitiveness and prosperity of small businesses by reducing the paperwork burden imposed on them. Efforts such as this promote effective marketplace frameworks, which encourage the creativity that leads to innovation and determine the conditions within which all sectors of the economy operate.

The growth of Canada’s knowledge and information economy also requires the review of existing rules to deal with unprecedented innovations and technological developments. This in turn leads to a dynamic and competitive marketplace that provides clear, transparent and predictable rules for all players, and balances incentives for investors and entrepreneurs with fairness for consumers.

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 necessary 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 Foreign Affairs and International Trade Canada (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 an important 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.

Sustainable development, along with productivity, employment and income growth, is an integral part of growing a dynamic economy. Industry Canada will continue to support 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 to advance its management priorities.

In 2007–2008, work will continue on government-wide management priorities and on priorities identified in 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 been identified for 2007–2008 in key management areas, including management accountability, human resources management, stewardship, official languages, and information technology and information management. The details of these initiatives are provided below.

Federal Accountability Act

On April 11, 2006, the Government of Canada introduced the Federal Accountability Act and Federal Accountability Action Plan as part of its efforts to make government more accountable. Through the 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. The Act received royal assent and became law on December 12, 2006.

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 related to the Federal Accountability Act and Action Plan. The Department will also collaborate on reviewing departmental management practices to determine ways to reduce unproductive rules and controls and place greater reliance on the principles of management accountability and transparency. In addition, the Department will take into account the results and recommendations made by the Independent Blue Ribbon Panel on Grant and Contribution Programs. As outlined in the Federal Accountability Action Plan, grants and contributions, procurement, financial management, policy suite renewal, 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 is an important element of the Federal Accountability Act. For the past several years the Department has identified values and ethics as a management priority, and has undertaken specific initiatives to address this priority. These initiatives include providing training on the Values and Ethics Code for the Public Service to more than 1400 employees; providing training for high-risk programs; active ongoing review of conflict-of-interest and post-employment issues; communicating to all employees on values and ethics; and implementing a process to deal with wrongdoing, harassment and conflict-prevention issues. In 2007–2008, focus will be placed on implementing new measures set out in the Federal Accountability Act, including continued education and awareness, disclosure protection, provision of guidance to employees, communication of shared values, and development of specific tools for managers and employees.

Integrated Human Resource and Business Planning

Integrated human resource and business planning is essential to the implementation of the Public Service Modernization Act (PSMA). Industry Canada’s goal is to promote excellence in human resource management in order to maintain a competent, sustainable and diversified workforce.

Recently, a Department-wide integrated human resource and business planning process was introduced. The resulting triennial strategic plans incorporate the Department’s priorities as they apply to each sector and branch. The priorities include recruiting, retention, learning and development, employment equity, official languages and succession. The plans will be made available to all Department employees on the Human Resources Branch intranet site.

Through this human resource planning process, the Department’s goal is to improve performance and develop funding strategies that are in line with Industry Canada business requirements.

Human Resource Modernization Initiatives

Under the PSMA, Industry Canada has submitted notices of intent supporting the continued implementation of the Act through investment in human resource activities.

These initiatives, with the support of funding from the Public Service Human Resources Management Agency of Canada, focus primarily on policy development, learning, collective staffing, the monitoring framework, management information reports, workplace conflict management and the development of information technology (IT)-based tools to support certain activities.

In addition, a number of the notices of intent submitted involve projects that focus more specifically on evaluating and improving the “people” component of the management accountability framework (PCMAF).

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. The departmental committee on stewardship and program management issues — the Program and Services Board — will continue to provide advice to senior management on comptrollership issues and maintain high standards of integrity for the review of major investments and contracts. In 2007–2008, the Department intends to strengthen and continue improving the following resource management tools, processes and systems: strategic departmental investment planning, enhanced performance reporting and resource allocation processes, and a corporate salary management and forecast system. Also, pursuant to an internal audit of the Department’s financial controls, the Department will take action to address the improvements needed to strengthen its financial control framework.

Section 41, Official Languages Act

The Department will continue to implement its four-year plan to maximize official-language minority community participation in its existing economic development programs and services. This plan is based on a strong partnership with the four regional development agencies and it integrates the Industry Canada component of the government’s Action Plan for Official Languages. Furthermore, the following activities will be undertaken: horizontal performance indicators will be established, with the regional development agencies, to measure progress on departmental activities in support of Part VII of the Official Languages Act and to measure progress on Industry Canada’s initiatives toward the federal Action Plan for Official Languages; a major research effort to establish a socio-economic database on the minority communities will be expanded; and community consultations will continue to increase the Department’s understanding of official-language minority community needs and requirements, inform communities about the Department’s programs, and further strengthen the relationship between these communities and Industry Canada.

Information Management and Information Technology Governance and Responsibilities at Industry Canada

Given the importance of information management (IM) and information technology (IT) to Industry Canada’s business, the Department must continue to ensure that all IM/IT investment decisions are consistent with departmental priorities, maximize efficiencies and provide high levels of service.

Recently, Industry Canada created a departmental IT governance structure, which provides the framework required for strategic IT decision making with a departmental lens and approach. Under this new governance structure, three departmental IT governance committees are now fully operational and provide a forum for IT-related strategic discussions. Together, the committees are responsible for IT procedures, policies, planning, investment decisions and standards governing the use of IT.

In addition, an IT Governance Policy was developed to ensure that all Industry Canada investments in IT are managed corporately and support departmental business objectives and priorities.

In 2007–2008, the focus of this new governance structure and policy will be to support departmental programs and strategic outcomes while maximizing the value of IT investments by facilitating a coordinated approach to IT service delivery, reducing duplication and increasing efficiencies.

1.7  Alignment to Government of Canada Outcomes

Canada’s Performance, the annual report to Parliament on the federal government’s contribution to Canada’s performance as a nation, is structured around four areas: economic affairs, social affairs, international affairs and government affairs.

Each of these areas is associated with a number of outcomes that the federal government is working to achieve. Industry Canada’s strategic outcomes align with Government of Canada outcomes in the area of economic affairs. The following table shows the relationship between these Government of Canada outcomes and Industry Canada’s outcomes.

Government of Canada Outcomes: Economic Affairs Industry Canada Strategic Outcomes
A Fair, Efficient and Competitive Marketplace An Innovative Economy Competitive Industry and Sustainable Communities
Income security and employment for Canadians Checkmark Checkmark Checkmark
Strong economic growth     Checkmark
An innovative and knowledge-based economy   Checkmark  
A clean and healthy environment     Checkmark
A fair and secure marketplace Checkmark