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It is my pleasure to present Natural Resources Canada's 2008-09 Report on Plans and Priorities (RPP), the department's road map to program delivery.
Canada's great wealth of natural resources remains a vital part of our economy. In 2006, the resource sectors directly contributed to 13 percent of the gross domestic product, 6.5 percent of the labour force and 47.4 percent of domestic exports which contributed $91.4 billion to Canada's trade surplus. The sectors are expected to continue this outstanding performance and to provide Canadians across the country, including those in Aboriginal and northern communities, with unprecedented opportunities for jobs and growth.
The department will continue to lead and support the natural resources sectors into the modern knowledge-based global economy. In this environment, fostering innovation, skills, science and technology are paramount in creating a Canadian competitive advantage. The department will also promote Canada abroad as a safe, secure, reliable and sustainable source of natural resources.
The new Major Projects Management Office (MPMO) has been created to support increased development in the resource sectors. This Office will greatly improve the federal regulatory system by enhancing regulatory efficiency, accountability and predictability. The results will be substantial: greater certainty, increased transparency and, ultimately, more timely regulatory reviews - all contributing to more effective governance.
With regard to energy, NRCan will continue to implement our Government's ecoENERGY initiatives. In addition, ongoing investments in science and technology are expected to widen the use of clean energy as well as to reduce the environmental impacts associated with energy production and use.
Canada's forest sector remains a strong contributor to the present and future economy despite a number of challenges, including the mountain pine beetle infestation in British Columbia. NRCan is continuing its efforts to enhance the competitiveness of this vital sector and to support forest communities through creativity, innovation and technology.
Looking to the North, the protection of Canada's sovereignty will be supported by NRCan's extensive experience and expertise in the Arctic, where the department has been providing research support for fifty years. By mapping the area and its great resources, and by conducting related science activities dealing with security and climate change adaptation, we will continue to play a vital role in fulfilling the Government of Canada's strong Arctic vision.
Beyond our borders, the Government has signalled its intention to strengthen Canada's trade investments in South America and elsewhere. Many opportunities in the energy and mining sectors are expected to result as we build stronger ties within the Americas.
Moreover, the department will conduct a full review of the structure of Atomic Energy of Canada Limited to determine if the existing structure is appropriate in a changing marketplace. The review will determine what changes, if any, are required and will be conducted by a dedicated team that will include outside experts.
Through these approaches, NRCan is actively supporting the priorities of the Government of Canada by contributing to a more prosperous future for Canada, a healthy environment for Canadians, the protection of Canada's Arctic sovereignty, enhanced safety and security, and effective governance.
Together, by focusing on clear goals and real results, we are building a stronger Canada and making life better for Canadians and their families.
I submit for tabling in Parliament, the 2008-09 Report on Plans and Priorities (RPP) for NRCan.
This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2008-09 Estimates: Report on Plans and Priorities and Departmental Performance Report.
NRCan manages its program delivery through three strategic outcomes and seven program activities. Most program activities are divided into smaller groups of sub-activities and sub-sub-activities that are designed to achieve the expected results that collectively contribute to the realization of the strategic outcomes.
NRCan received Treasury Board approval to modify its PAA for 2008-09. The table below provides a crosswalk for NRCan's 2007-08 planned spending to the new PAA.
2007-08 Strategic Outcome and Program Activities | |||||
S.O. 1 – Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards | |||||
2008-09 Strategic Outcomes and Program Activities |
Earth Sciences | Energy | Sustainable Forest | Minerals & Metals | Total 2007-08 |
---|---|---|---|---|---|
S.O. 1 – Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians | |||||
Economic Opportunities for Natural Resources | 96.9 | 2,388.3 | 72.6 | 7.7 | 2,565.6 |
Natural Resource-based Communities | 0.0 | 0.0 | 16.2 | 2.0 | 18.2 |
S.O. 2 – Canada is a world leader on environmental responsibility in the development and use of natural resources | |||||
Clean Energy | 0.0 | 354.6 | 0.0 | 36.0 | 390.6 |
Ecosystems Risk Management | 15.0 | 141.5 | 23.4 | 0.9 | 180.8 |
S.O. 3 – Natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada | |||||
Adapting to a Changing Climate and Hazard Risk Management | 43.7 | 0.0 | 115.6 | 7.5 | 166.8 |
Natural Resource and Landmass Knowledge for Canadians | 80.3 | 0.0 | 26.0 | 3.6 | 109.9 |
Geomatics Canada Revolving Fund | |||||
Operational expenditures | 3.6 | 0.0 | 0.0 | 0.0 | 3.6 |
Respendable revenue | (3.6) | (0.0) | (0.0) | (0.0) | (3.6) |
Total 2007-08 Planned Spending ($M) | 235.9 | 2,884.4 | 253.9 | 57.7 | 3,431.9 |
($ millions)
Vote or Statutory Item | Main Estimates 2008-09 |
Main Estimates 2007-08 |
|
---|---|---|---|
1 | Operating expenditures * | 762.9 | 709.3 |
- | Capital expenditures ** | 0.0 | 2.7 |
5 | Grants and contributions *** | 437.9 | 328.1 |
(S) | Minister of Natural Resources - Salary and Motor Car Allowance | 0.1 | 0.1 |
(S) | Contributions to Employee Benefit Plans | 54.6 | 54.4 |
(S) | Canada-Nova Scotia Development Fund | 0.5 | 1.9 |
(S) | Canada-Newfoundland Offshore Petroleum Board | 6.0 | 5.0 |
(S) | Canada-Nova Scotia Offshore Petroleum Board | 2.9 | 2.9 |
(S) | Payments to the Nova Scotia Offshore Revenue Account | 407.3 | 450.0 |
(S) | Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund | 670.6 | 590.7 |
(S) | Geomatics Canada Revolving Fund | ||
- Operational expenditures | 1.9 | 3.6 | |
- Respendable revenue | (1.9) | (3.6) | |
Total NRCan | 2,342.8 | 2,145.1 |
* Increased funding in 2008-09 is primarily due to the Clean Energy Agenda.
** A notable change in 2008-09 is the elimination of NRCan's Capital Vote and the renumbering of the grants and contribution Vote to 5 (formerly Vote 10) since a department's votes must be sequential. As a result, the capital expenditures are now included under Vote 1.
*** Increased funding in 2008-09 is primarily due to the new ecoENERGY for Biofuels contribution program.
Budgetary ($ millions) | Forecast Spending 2007-08 |
Planned Spending 2008-09 |
Planned Spending 2009-10 |
Planned Spending 2010-11 |
---|---|---|---|---|
Economic Opportunities for Natural Resources * | 1,270.7 | 1,280.3 | 1,164.3 | 1,113.8 |
Natural Resource-based Communities | 16.4 | 30.0 | 19.5 | 19.5 |
Clean Energy | 404.9 | 571.7 | 655.6 | 763.8 |
Ecosystem Risk Management | 184.3 | 227.4 | 204.9 | 213.9 |
Adapting to a Changing Climate and Hazard Risk Management | 183.2 | 117.1 | 71.9 | 69.7 |
Natural Resource and Landmass Knowledge for Canadians | 109.1 | 140.9 | 122.1 | 106.3 |
Geomatics Canada Revolving Fund | 3.6 | 1.9 | 1.9 | 1.9 |
Budgetary Main Estimates (Gross) | 2,172.2 | 2,369.3 | 2,240.2 | 2,288.9 |
Less: Respendable Revenue | (27.1) | (26.5) | (25.6) | (25.6) |
Total Main Estimates | 2,145.1 | 2,342.8 | 2,214.6 | 2,263.3 |
Adjustments: 2007-08 Supplementary Estimates (A) ** |
(1.7) |
0.0 |
0.0 |
0.0 |
2007-08 Supplementary Estimates (B) *** | 1,288.5 | 0.0 | 0.0 | 0.0 |
Other Adjustments (B) **** | 0.0 | 7.2 | 20.9 | 24.2 |
Total Adjustments | 1,286.8 | 7.2 | 20.9 | 24.2 |
Total Planned Spending | 3,431.9 | 2,350.0 | 2,235.5 | 2,287.5 |
Less: Non-respendable revenue | (1,041.6) | (1,084.2) | (1,025.1) | (982.6) |
Plus: Cost of services received without charge | 36.6 | 41.9 | 41.8 | 42.0 |
Net Cost of Program | 2,426.9 | 1,307.7 | 1,252.2 | 1,346.9 |
Full Time Equivalents (FTEs) | 4,289 | 4,470 | 4,432 | 4,412 |
* Planned spending includes statutory programs - Atlantic offshore: $1,087.4M in 2008-09; $1,026M in 2009-10; and $984.1M in 2010-11.
** Major items included in the 2007-08 Supplementary Estimates (A): $3.6M to improve the performance of the regulatory system for major natural resource projects; $1.6M for the relocation and renewal of the CANMET Materials Technology Laboratory; ($1M) to support the restoration of Stanley Park, a National Historic Site in Vancouver, British Columbia; and ($0.5M) to support the ecological restoration of Point Pleasant Park in Halifax, Nova Scotia.
*** Major items included in the Supplementary Estimates (B): $1,150M for Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund; $188.6M for Newfoundland Fiscal Equalization Offset Payments; $5.5M in support of the Forest Industry Long-Term Competitiveness Strategy; $2.8M for real property health and safety projects; and ($52.8M) for Payments to the Nova Scotia Offshore Revenue Account.
**** In 2008-09, this includes: $2.8M for real property health and safety projects; $2M for biotechnology; $1.4M for international actions in support of the Clean Air Agenda, and $1M for an Atomic Energy of Canada Limited special project team. In 2009-10: $14.7M for the relocation of the Materials Technology Laboratory to Hamilton, Ontario; $2.8M for real property and safety projects; $2M for biotechnology; and $1.4M for international actions in support of the Clean Air Agenda. In 2010-11: $20.9M for the relocation of the Materials Technology Laboratory to Hamilton, Ontario; $2M for biotechnology; and $1.3M for international actions in support of the Clean Air Agenda.
NRCan develops, implements and delivers integrated policies, programs, and science and technology (S&T) for the sustainable development and responsible use of Canada's mineral, energy and forestry resources. The department uses its expertise in earth sciences to collect and disseminate information used to better understand Canada's landmass. It also maintains key roles related to the safety and security of people and natural resources, including security of natural resource infrastructure and supply.
NRCan's Minister is responsible for, or has responsibilities under, more than 30 Acts of Parliament. The core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act, and the Forestry Act. The remaining Acts set out the terms for the management of Crown lands and of Canada's natural resource policies, including energy and nuclear policy.
The department's work is concentrated in areas of core federal jurisdiction that fall within its legislated roles and responsibilities, which includes:
NRCan works towards achieving the following three strategic outcomes which are supported by its Program Activity Architecture (PAA):
2008-09 | 2009-10 | 2010-11 |
---|---|---|
2,350.0 | 2,235.5 | 2,287.5 |
2008-09 | 2009-10 | 2010-11 |
---|---|---|
4,470 | 4,432 | 4,412 |
NRCan has identified the program priorities that are critical to the realization of its strategic outcomes over the planning period. These priorities stem from related issues of importance to Canadians, and shape our policies, programs and science and technology.
Priorities | Type* |
---|---|
1. Addressing climate change and air quality through science, technology and adaptation | previously committed |
2. Enhancing Canada's forest sector competitiveness | previously committed |
3. Supporting Canada's Arctic sovereignty through geoscience and mapping activities | ongoing |
4. Improving regulatory performance for major natural resource projects | previously committed |
5. Advancing Canada's resource interests and sustainability efforts in the Americas and globally | ongoing |
* An ongoing priority has no end date; a previously committed priority has an estimated end date and was committed to in prior budgets or main estimates documents.
Program Activity | Expected Results | Planned Spending ($M) | Contributes to the following priority* | ||
---|---|---|---|---|---|
2008-09 | 2009-10 | 2010-11 | |||
Strategic Outcome 1 – Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians | 2, 4 and 5 | ||||
Economic Opportunities for Natural Resources ** | Competitive national and international markets, stable economic opportunity and investment in natural resources | 1,280.8 | 1,163.8 | 1,112.8 | |
Natural Resource-based Communities | Increased knowledge, skills and capacity to benefit from the evolving natural resource economy within resource-based communities (both Aboriginal and non-Aboriginal) | 29.6 | 33.9 | 39.9 | |
Strategic Outcome 2 – Canada is a world leader on environmental responsibility in the development and use of natural resources | 1, 2 and 4 | ||||
Clean Energy | Increased energy efficiency, increased production of low-emission energy, and reduced environmental impacts associated with energy production and use | 562.0 | 646.7 | 753.8 | |
Ecosystem Risk Management | Canada understands and mitigates risks to natural resource ecosystems and human health | 226.6 | 204.0 | 212.7 | |
Strategic Outcome 3 – Natural resources and landmass knowledge strengthens the safety and security of Canadians and contributes to the effective governance of Canada | 1, 2 and 4 | ||||
Adapting to a Changing Climate and Hazard Risk Management | Canada adapts to a changing climate and has the knowledge and tools to manage risks associated with natural hazards and hazards arising from human activities | 111.9 | 66.7 | 64.2 | |
Natural Resource and Landmass Knowledge for Canadians | Government has the necessary natural resource and landmass knowledge and systems required to both govern the country and position Canada to play a leadership role in federal-provincial-territorial and international fora | 139.1 | 120.4 | 104.1 | |
Geomatics Canada Revolving Fund | The demands by NRCan, other government departments and industrial clients for revolving fund products and services are met through full cost recovery | 1.9 (1.9) |
1.9 (1.9) |
1.9 (1.9) |
|
Total NRCan | 2,350.0 | 2,235.5 | 2,287.5 |
* Priority 1 (Addressing climate change and air quality through S&T and adaptation; 2 (Enhancing Canada's forest sector competitiveness); 3 (Supporting Canada's Arctic sovereignty through geoscience and mapping activities; 4 (Improving regulatory performance for major natural resources project; 5 (Advancing Canada's resource interests and sustainability efforts in the Americas and globally).
** Planned spending includes statutory programs - Atlantic offshore: $1,087.4M in 2008-09; $1,026M in 2009-10; and $984.1M in 2010-11.
Natural resources have been an economic cornerstone in Canada throughout its history. They have contributed to the development of Canada as a modern industrial society generating wealth and a higher quality of life for generations of Canadians particularly in the hundreds of communities in every region located near resource deposits.
The predominant position of the Canadian natural resource sectors is compelling. In 2006, the sectors directly contributed to 13% of the Gross Domestic Product (GDP), 6.5% of the labour force and 47.4% of domestic exports which contributed $91.4 billion to Canada's trade surplus. These numbers are a result of Canada being a world leader in the safe, secure and reliable production of many important natural resource commodities. Canada is the world's largest uranium and potash producer, the second in nickel production and the third in natural gas, aluminium and diamond production. Our forestry endowment is the second largest on a per capita basis but we are first in forest product exports. Canada is second only to Saudi Arabia in proven oil reserves and may move from seventh to fourth place in oil production by 2015. Rising global demand and prices for some resource commodities combined with the fact that Canada's landmass contains significant undiscovered or undeveloped natural resources creates incredible future growth potential in the 21st century for our natural resource sectors.
While Canada's natural resource sectors hold a prominent global position and an optimistic future, merely possessing a rich resource endowment will not ensure economic success, a higher quality of life and a healthy environment for Canadians. Given that Canada's mineral and energy resources are declining, the way we harness and manage that endowment matters now more than ever. In the modern knowledge-based economy, the development of new innovative ideas, skills and technologies through science and technology investments holds the utmost importance across the value chain from exploration and extraction to end use. Our geoscience plays a central role in identifying and evaluating new energy and mineral resource deposits. Furthermore, the natural resource sectors and NRCan face many challenges including an increasingly competitive global market, impact of natural resources' activities on the environment and our Arctic sovereignty and various corporate challenges. NRCan is well placed to turn these challenges into opportunities along with the leadership and engagement of key stakeholders including private industry, provincial and territorial governments, the research and development sector, and Aboriginal and other local communities near resource projects.
Challenges
The ability to remain competitive will determine Canada's place in the global natural resources marketplace. Because of their rapidly growing populations and economies, countries like China and India are fuelling the rising global demand for natural resources and increasing commodity prices. As a net exporter of resources, this provides considerable opportunities for Canada. However, other resource rich countries who are major natural resource exporters - like Australia, Brazil, Russia and Sweden -- are challenging Canada's share in existing and new markets because of their increased technological capacity, modern infrastructure, lower labour costs, economies of scale, and lower regulatory burdens. In order to remain globally competitive in this environment, Canada's natural resource sectors must raise their level of productivity that, although above the national average domestically, does not compare favourably to international competitors. Meeting these challenges will require promoting Canada's international reputation as a safe, secure and reliable supply of natural resources and associated science and technology while encouraging better international standards, good governance and establishing new trading relationships.
Balancing economic growth, social needs and maintaining a healthy environment is the challenge of sustainable natural resource development and use. Growth in the natural resource sectors can generate wealth for Canadians but we must do so with the environmental footprint in mind.
A variety of environmental concerns related to resource development have become prominent in public discourse, particularly those related to climate change caused by the generation of greenhouse gas emissions. Canadians are also concerned about environmental changes in the North, air pollution, water quality and water use issues and the ensuing adverse effects on human health and quality of life. Natural disturbances such as pest infestations have severely impacted Canada's forests, and other unpredictable natural hazards, such as earth quakes, floods, forest fires, and landslides can cause significant damage. Due to its expertise in the earth sciences, NRCan is well-positioned to help Canadians develop the tools and knowledge needed to adapt to climate change and other environmental challenges.
While the challenges facing the natural resource sectors are complex and varied, the opportunities for growth and development are exciting. Sustainable development - at the heart of NRCan's mandate – presents opportunities to address these challenges through innovative public policy that emphasizes and integrates economic development, social responsibility and environmental leadership.
Our Program Priorities
1 Environment Canada is the lead department for this horizontal initiative.
Our Management Priorities
In the context of the challenges and opportunities facing the natural resources sectors and modern public sector management, NRCan is working to become a more integrated, knowledge-based and results-oriented organization. To this end, the department will begin implementing a natural resources policy framework that will allow it to shift from a sectoral approach to a more integrated model where the economic, environmental, and social needs of Canadians are paramount. The framework will encourage collective leadership, innovative collaboration and information sharing across the department and with stakeholders in pursuit of common goals. NRCan is also strengthening its planning processes through the implementation of an integrated "one department planning approach".
In recognition of the renewed importance of science and technology in a knowledge-based economy, NRCan is developing a science and technology strategy that, aligned with the Government of Canada's Advantage Canada strategy, aims to create a competitive Canadian advantage in entrepreneurship, knowledge and skilled people through science and technology. An integrated natural resources policy framework and other management priorities will enable the department to make optimal use of all of its skills and tools to address the priorities of Canadians.
NRCan and the public service as a whole are facing unprecedented human resources and talent management challenges arising from an aging workforce, a competitive labour market, and critical skill shortages. In response to these challenges, NRCan has created a Human Resources Renewal Committee that will set the department's strategic direction for talent management. The department is already beginning to implement strategies for corporate-wide talent management; fostering a learning environment; a quicker and more collective approach to staffing across the department; and enhanced recruitment of younger professionals and other highly-skilled personnel to fill mission-critical and other specialized positions.
NRCan will be faced with very significant real property challenges over the next five years. By objective standards, the inventory is considered to be very tired; the average age of assets is 45 years. A large majority of these assets have never received a full renovation treatment typically undertaken when a building exceeds 25 years of age. With challenges come opportunities, and the management of real property within NRCan is an area where we are well-positioned to continue taking advantage of our current strengths such as: a long term capital plan; a well-developed real property management framework; strong leadership; a Real Property Strategy for the National Capital Region; abundant use of available tools for supply and demand planning; and supportive processes.
Another management priority is to create formal administrative structures to better integrate and manage the coordination of the natural resources portfolio. The structures will be tailored to specific portfolio roles and responsibilities as well as requirements. They will enhance portfolio coordination by fostering coherent policy implementation, good governance, communication, information sharing and accountability.