Ministers' Messages

I am pleased to present the 2004 2005 Report on Plans and Priorities and present our agenda for the forthcoming years.

As you know, the Government of Canada is committed to strengthening Canada's social foundations, building a 21st-century economy, and to ensuring Canada's role in the world. Human Resources and Skills Development Canada (HRSDC) plays a key role in meeting these commitments by creating opportunities for skills development, learning and employment to support the economic advancement of Canadians, their families and communities.

These efforts will result in a better quality of life for all Canadians. HRSDC is working with the provinces and territories, as well as business and labour, so that all Canadians have the opportunity to develop skills and succeed.

We recognize that we need to take steps to build a lifelong learning culture that ensures Canadians have the foundation skills they require, affordable access to learning opportunities, a learning system that is responsive to their needs and that of the economy, and have the information they need to make learning decisions. A series of enhancements to the Canada Student Loans Program (CSLP) and the Canada Education Savings Grant Program (CESG) were announced to ensure that all Canadians who want to learn will have this opportunity. The Government of Canada also announced improvements to the CESG that will help low-income families save for the post-secondary education of their children and will introduce the new Canada Learning Bond, an incentive to help low-income families kick-start saving for their children's education.

The 2004-2005 Report on Plans and Priorities demonstrates that HRSDC will work strategically to meet the needs of Canadians. For example, we will improve service delivery to Canadians, renew our strategy for Aboriginal human resources development, develop a workplace skills framework to strengthen the partnership between industry, employers and workers, and develop a pan-Canadian framework for literacy and related strategies. We will be reshaping government policies and programs to address the real needs of Canadians.

We are also committed to continuous improvement in the administration of our programs. For example, we will continue our work to strengthen the management and financial stewardship of our grants and contributions programs. This year, we will also table departmental legislation in Parliament to establish the new department.

These are just some of our priorities outlined in this report. Canada is stronger when its citizens fully contribute their skills and talents to the labour market and our society. We are proud of the fact that we at HRSDC are united in our dedication to advance the government's goal of human capital development.

The Honourable Joe Volpe, P.C., M.P
Minister of Human Resources and Skills Development

I am pleased to present our ambitious agenda for the coming year, particularly with my new responsibilities which now include Labour and the Canada Mortgage and Housing Corporation together with the National Homelessness Initiative.

The Government of Canada recognizes homelessness as a priority and encourages practical, local solutions - offering a strong validation of the community-driven approach of the National Homelessness Initiative. Partnerships enhance the capacity of Canadian communities to address homelessness in a sustainable way. Together all levels of government, the private sector, unions and non-governmental organizations are working at the local level to provide an array of services to meet the needs of homeless individuals and families and those at risk of becoming homeless. To help break the cycle of homelessness, we look forward to the strengthened integration between homelessness and housing initiatives.

The Labour Program promotes a safe, fair, healthy, stable and cooperative workplace both in Canada and abroad. We will continue to modernize our labour legislation and explore new ways of improving the administration of our labour law to support fair, safe, healthy, flexible and productive workplaces. Through the work of our conciliators and mediators, we will continue to support the industrial relations system by assisting employers and unions in the collective bargaining process. We will also continue to demonstrate federal leadership through research on workplace practices and labour related issues. The Labour Program will promote work-life balance through its research and information sharing activities in order to reduce work-life conflict and contribute to improved productivity. In support of the Government of Canada's commitments to Aboriginal people, the Labour Program is committed to developing an Aboriginal labour affairs strategy.

The Government of Canada is also committed to seeing the benefits of global interdependence spread more fairly throughout the world. This calls for multilateral institutions that work, and for greater collaboration among nations to ensure that economic policies go hand-in-hand with stronger social programs to alleviate hunger, poverty and disease, and to help raise the standard of living in developing countries.

Last fall, in the Americas, we took a major step forward to meet this commitment when the Labour Ministers of Canada, Brazil and Mexico presented a report that highlighted that economic integration is key to the future of workers in this hemisphere, and that modern effective labour policies are critical to the success of a global economy.

Our agenda for 2004 2005 is challenging. We are committed to improving the lives of Canadians by building on our efforts to date.

The Honourable Joe Frank Fontana, P.C., M.P.
Minister of Labour and Housing

Management Representation Statement

I submit, for tabling in Parliament, the 2004-2005 Report on Plans and Priorities (RPP) for Human Resources and Skills Development Canada.

This document has been prepared based on the reporting principles and disclosure requirements contained in the Guide to the preparation of the 2004-2005 Report on Plans and Priorities:

• It accurately portrays the organisation's plans and priorities.
• The planned spending information in this document is consistent with the directions provided in the Minister of Finance's Budget and by Treasury Board Secretariat.
• It comprehensive and accurate.
• It based on sound underlying departmental information and management systems.

The reporting structure on which this document is based has been approved by Treasury Board Ministers and is the basis for accountability for the results achieved with the resources and authorities provided.

_____________________________________
Wayne G. Wouters
Deputy Minister
Human Resources and Skills Development

_____________________________________
Date

Management Representation Statement

On July 20, 2004, the Prime Minister announced the Minister of Labour and Housing as part of the new Cabinet. In addition to Labour and the Canada Mortgage and Housing Corporation portfolios, the Minister is also responsible for the National Homelessness Initiative.

The plans, priorities, planned spending and performance measures in support of the Labour program and National Homelessness Initiative are presented in the 2004-2005 Report on Plans and Priorities for Human Resources and Skills Development Canada.

_____________________________________
Maryantonett Flumian
Associate Deputy Minister and Deputy Minister for Labour

_____________________________________
Date

HRSDC OVERVIEW

Our Mandate

On December 12, 2003, the Government of Canada restructured departments to achieve demonstrable progress in three key areas:

• Strengthening Canada's social foundations;
• Building a 21^st century economy; and
• Ensuring Canada's role in the world.

As part of this change, the Prime Minister created the new departments of Human Resources and Skills Development Canada (HRSDC) and Social Development Canada (SDC) from the former department of Human Resources Development Canada (HRDC).¹

HRSDC's vision is to build a country where everyone has the opportunity to learn, and to contribute to Canada's success by participating fully in a well-functioning and efficient labour market. HRSDC's mission is to improve the standard of living and quality of life of all Canadians by promoting a highly skilled and mobile labour force and an efficient and inclusive labour market. This means the department has a central role in helping build a 21^st century economy for Canada and in strengthening Canada's social foundations. Diagram 1 portrays HRSDC's vision and mission as well as its business lines and the strategic outcomes it has established.

The department contributes to meeting its vision and mission by supporting human capital development, enhancing access to post-secondary education, supporting workplace skills development, and encouraging lifelong learning for Canadians. The department works toward enhancing Canadian communities' capacity to overcome homelessness. It also promotes a safe, healthy, fair, stable, cooperative and productive work environment. HRSDC is also taking steps to modernize the way benefits and services are delivered, to improve its capacity to reach, engage and serve Canadians.

Good relations with the provinces and territories are an integral component of HRSDC's mandate. The department works closely with provinces and territories on learning, homelessness, labour market and workplace issues.

As part of its mandate, HRSDC is responsible for a national in-person service network to support the delivery of programs and services, those of Social Development Canada, and for Service Canada. As part of this regional network, HRSDC is responsible for the management of 105 Employment Insurance Processing Centres and eleven Income Security Programs Processing Centres which are managed through an agreement with Social Development Canada. These centres are components of the mail channel for service delivery. Social Development Canada's network of call centres and on-line services supports the delivery of HRSDC programs including Employment Insurance and the Canada Student Loans Program, as well as its own programs. This shared service delivery model ensures that Canadians receive seamless, single window in-person service for local services and benefits delivery, and maximizes the cost-effectiveness and resource-efficiency of the two new departments.

On March 8, 2004 by Order-in-Council, Minister Volpe assumed responsibility for the Toronto Waterfront Revitalization Initiative.

Finally, on July 20, 2004, the Prime Minister announced the new Cabinet including the Minister of Labour and Housing. In addition to the responsibilities associated with the Labour and Homelessness programs, the Minister is also responsible for the Canada Mortgage and Housing Corporation.

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Our Business

HRSDC is a large government department. The department has over 14,000 employees, and is responsible for over $20 billion in spending to benefit Canadians. Annex 6 provides an overview of the programs and services delivered by the department.

HRSDC's responsibility for direct service delivery to Canadians is anchored in an in-person network of approximately 320 Human Resource Centres of Canada (HRCC), as well as regional offices in each of the provinces. In addition, HRSDC is responsible for operation of the Government of Canada's in-person network of Service Canada access centres. The Service Canada network will include 76 access centres across Canada, of which 73 are directly managed by HRSDC, and three are operated by the Department of Canadian Heritage. Of the 73 HRSDC locations, 66 are located within HRCCs, and seven are operated from the premises of third party organizations.

Our Strategic Outcomes

HRSDC has developed new strategic outcomes. These strategic outcomes reflect the results the department is expected to achieve through its broad array of programs and as part of the Government of Canada's service delivery network. The strategic outcomes provide the structure against which results will be reported and the framework for the development of departmental performance measurement. The department's strategic outcomes are:

• Efficient and effective income support and labour market transitions;
• Enhanced competitiveness of Canadian workplaces by supporting investment in and recognition and utilization of skills;
• Through access to learning, Canadians can participate fully in a knowledge-based economy and society;
• Safe, healthy, fair, stable, cooperative and productive workplaces;
• Enhanced community capacity to contribute to the reduction of homelessness;
• Seamless, integrated and multi-channel service delivery that ensures client satisfaction.

To deliver on its mandate and meet these strategic outcomes, HRSDC has established new business lines:

Employment Insurance Benefits - provide temporary financial assistance to unemployed Canadians who qualify under the Employment Insurance Act, while they look for work, as well as assisting families in balancing work and family responsibilities during periods of unemployment as a result of sickness or injury, pregnancy, parental leave, and caring for gravely ill or dying family members.

Employment Programs - assist unemployed participants to prepare for, find and maintain employment. Some employment programs (those funded under Part II of Employment Insurance Act) are delivered through Labour Market Development Agreements with the provinces and territories (five agreements are co-managed, while seven are fully devolved - there is no agreement with Ontario) as well as with Aboriginal partners through 79 Aboriginal Human Resources Development Agreements, and thirteen other government departments and agencies in support of the Youth Employment Strategy.

Workplace Skills - work with sector councils and other partners to promote workplace-related learning and skills development; prepare and disseminate labour market information; facilitate the entry of skilled and temporary foreign workers and address issues of immigrant labour market integration.

Learning - support the Government of Canada's significant investments in skills and learning to enable Canadians to acquire and improve their skills over a lifetime. Programs within this business line include the Canada Student Loans Program, Canada Education Savings Grant, and a number of learning and literacy programs.

Labour - promote a safe, healthy, fair, stable, cooperative and productive workplace and is responsible for the Canada Labour Code, the Employment Equity Act, the Government Employees' Compensation Act, as well as other legislation on wages and working conditions.

Homelessness - assist communities, through partnerships, in implementing measures that help homeless individuals and families to move towards self-sufficiency, thereby contributing to society and the economy.

Policy, Program and Service Delivery Support - provide direct service to clients for both the departments of Human Resources and Skills Development Canada and Social Development Canada. Work undertaken in this business line also includes Policy and Communications.

Planning Overview

As a new and large department that includes management of a national service delivery network, HRSDC faces a range of policy, program, service delivery and management challenges and risks. The following sections set out the context for the department's work and its priorities.

The Demographic and Economic Environment

The current context for HRSDC is a resilient economy which has resumed healthy growth after the shocks of the past few years (such as the stock market collapse of 2001, the Severe Acute Respiratory Syndrome crisis of 2003, the ban on beef export and the pronounced appreciation of the Canadian dollar) with comparatively healthy labour markets by the standards of the last quarter century, but which now faces prospective declines in population and potential labour force growth.

Canada's population growth rate has been decreasing during the last few years and will continue to slow in coming years, as the natural population increase (births less deaths) continues to slow. Net immigration has already become the main source of population growth. Slower population growth will inevitably be accompanied by slower labour force growth, which will be exacerbated as population ageing lowers labour force participation rates.

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Source: (1976-2003) Statistics Canada, Labour Force Survey; (2004-2046) HRSD-PRC, based on MEDS

The context for the expected slowing in labour force growth is one of labour markets at a high level of employment. Canada's economy continues to rebound from the slowdown of 2002. This has led to a continued healthy labour market, with ongoing solid job growth and an employment ratio (employed Canadians as a share of the population aged 15 and over) that attained record levels in 2003.

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Source: (1976-2003) Statistics Canada, Labour Force Survey; (2004-2030) HRSD-PRC, Population from LFPR Model Ref2003, Labour Force and Employment from Horizon 2030 Scenario

Driving the high employment ratio has been ongoing increases in the labour force participation rate, also at a record level, with recent gains especially evident among older workers. There is still room for further gains as the unemployment rate remains above the recent low set in 2000, but the expected acceleration of Gross Domestic Product (GDP) growth from two percent in 2003 to nearer to three percent in 2004 and even higher in 2005² will help drive such gains.

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Source: Statistics Canada, Labour Force Survey

Thus the central labour market challenge of the 1980s and early 1990s - creating enough jobs for Canadian workers - is starting to transform into a challenge of finding enough workers for the jobs and sustaining a solid rate of growth in the economy.

Key to this will be better productivity growth. Since the mid-nineties Canada has seen gains in productivity growth. Combined with the record employment ratio, this has led to solid gains in GDP per person. Nonetheless, Canada's productivity growth remains generally below the strong performance observed in the U.S. with the result that the gap in output per hour worked between the two countries has widened to levels not seen since the early 1960s.

Labour force quality is a key contributor to productivity and standards of living. Higher levels of education and skills contribute to stronger growth both directly, in terms of worker productivity, and indirectly in terms of the new knowledge embedded in both technology and how the economy is organized. Higher education and skills also lead to better labour market outcomes: higher rates of labour market participation and employment, and higher wage and salary rates. They also help stimulate a 'virtuous circle' of even higher labour quality: better educated workers retain their skills better, especially literacy, they get greater access to employer-sponsored learning, and the kinds of jobs they get confer more on-the-job skills development so that their wage gains with years of work experience are higher.

In the past several decades Canada has seen major gains in the average educational attainment of its workforce, as older workers with lower attainment have retired and been replaced by higher-educated, younger cohorts. While overall population growth will increasingly depend on immigration in the future, Canadian 'school leavers' (those who complete their schooling in Canada) will continue for the foreseeable future to remain the main source of new workers, although they will be increasingly offset by retirement of existing, baby-boom generation workers. Here the news is good: Canada continues to see rising levels of participation in post-secondary education. But this will, in and of itself, not generate the same strong gains in labour force educational attainment seen in previous decades, as the higher educational achievement of the children of baby-boomers relative to their baby-boomer parents will be less than the much higher educational attainment of the boomers relative to their parents. Thus further gains in overall human capital quality will increasingly have to come via lifelong learning rather than just the formal schooling of youth.

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Source: Statistics Canada, Labour Force Survey

In such a labour market, a key challenge is ensuring that labour market entrants have - and labour force participants maintain through lifelong learning - the skills to meet employer's needs, now and as they evolve. This requires a mix of skills, both higher and lower, obtained through a continuum of educational attainment encompassing high school, community college, trades apprenticeships and university and post-graduate degrees. Although the highest job growth will occur in occupations requiring the higher levels of education, as has been the case for years, there will also continue to be growth in the number of jobs requiring less than high-school education. The skills also have to match the specific kinds of jobs that are opening: biochemist jobs require biochemists. Currently, shortages are appearing and are anticipated in a number of specific occupations such as high-skilled computer specialists, some trades, university professors in some disciplines, and nurses. There are also shortages in specific regions, reflecting their specific economic circumstances (such as construction workers in Ontario). At the same time, labour market surpluses continue to exist, although they tend to be concentrated among low skill occupations (e.g. clerical) and in declining sectors. As well, employment and unemployment rates will continue to vary widely across regions.

It will also be important to ensure the better integration of specific groups into the labour market. The difficulties experienced by recent immigrants in finding employment suitable to their skill level, and the continued problems older workers have finding new work following a job loss constitute two examples of the type of structural labour market challenges that remain and need to be solved. This is especially so given that recent immigrants and older workers are accounting for a larger and larger proportion of the labour force. As well, the levels of labour market participation of marginalized groups such as persons with disabilities, Aboriginal peoples and homeless people continue to be low. Increasing labour market participation among these groups will help attain important social policy objectives, such as promoting inclusion.

Policy Environment

Through the Speech from the Throne and Budget 2004, the Government has made commitments that have a direct bearing on the work of HRSDC in creating new strategic approaches to respond to the emerging economic, labour market and learning needs of Canadians.

In the area of learning, the Government committed to:

• Improving the Canada Student Loans Program (CSLP) to help overcome financial barriers to post-secondary education; and
• Creating new incentives to encourage low-income families to begin investing in children for their long-term education. These measures include the introduction of a Canada Learning Bond and enhancements to the Canada Education Savings Grant on Registered Education Savings Plan, providing some 20,000 students from low-income families with new grants and increasing the loan ceiling and modernizing eligible expenses under CSLP.

In support of workplace and skills development, the government committed to:

• Refining and enhancing its programs to encourage skills upgrading, in concert with sector councils, unions, and employers; and
• Improving recognition of foreign credentials.

In the area of labour market and employment programs, the Government announced that it would:

• Work with provinces to update labour market programming to better reflect the realities of work in the 21st century, including the growth in self-employment and the need for continuous skills upgrading;
• Renew the Aboriginal Human Resources Development Strategy;
• Work with communities to find solutions to the issues Aboriginal people face through the Urban Aboriginal Strategy; and
• Ensure that minority language communities have the tools that enable their members to contribute fully to the development of Canadian society.

In the area of Employment Insurance Benefits, the Minister announced that the Government of Canada will implement new measures, totalling $229 million over three fiscal years, to help seasonal workers. Further, the Prime Minister announced the renewed mandate of the Task Force on Seasonal Work. The Task Force will evaluate the challenges born by seasonal industries while looking into the needs of workers and communities that depend on them and provide advice on areas for possible action in the future.

In the area of homelessness, the Government of Canada also confirmed that "tackling homelessness" is a national priority. The Speech from the Throne provides support for addressing homelessness, emphasizing the need to strengthen social and economic outcomes for all Canadians, implement a new deal for communities, and work in partnership to respond to complex issues such as Aboriginal homelessness. At the Canada-Aboriginal Peoples Roundtable held on April 19, 2004, the Prime Minister committed to a national strategy to deal with housing issues off-reserve and to a new partnership with Aboriginal peoples, which will have a direct impact on Aboriginal housing and homelessness issues.

The Minister signed an Agreement in Principle on Quebec's Parental Insurance Plan with the Government of Quebec. The Government of Canada and the Government of Quebec committed to concluding a final agreement by February 1, 2005, that meets the principles in the Agreement as well as providing for the administrative, financial and other provisions under which Quebec's plan would be established.

On behalf of the Government of Canada, the Minister also signed a memorandum of agreement with the Government of Ontario that commits the two governments to explore collaboration in the delivery of public services, particularly reintegration of labour market programs and service delivery.

The Prime Minister created the Minister of Labour and Housing as part of his announcement of the new Cabinet on July 20, 2004. The department will be assessing the implications of this announcement in terms of housing and will provide more detailed and fulsome reporting in the 2005-2006 Report on Plans and Priorities.

Management Challenges

Canadians, as taxpayers, as clients of services and as citizens, expect accountability, openness, transparency and value-for-money from their governments. All Government of Canada departments and agencies are working to improve their organizational effectiveness and strengthen public sector management. In Strengthening Public Sector Management, the Government announced plans to transform and strengthen public sector management including measures to:

• Strengthen comptrollership and oversight;
• Review government expenditures and modernize management practices;
• Assure accountability, transparency, good governance, and an enhanced role for Parliament; and
• Build capacity across the federal public service.

The Treasury Board Secretariat has launched a series of initiatives to transform and strengthen public sector management and financial accountability within the Government of Canada. These initiatives are intended to increase oversight, ensure effective public spending in areas of government priority, support accountability, transparency, good governance and an enhanced role for Parliament. These initiatives include the following:

Strengthen Comptrollership and Oversight

• Strengthening internal audit and evaluation capacity across the public sector.
• Publicly disclosing all contracts entered into by the government of Canada for amounts over $10,000 with limited exceptions.

Expenditure Review

• Spending and operational review of the 30 largest departments and agencies.
• Government operations reviews (e.g. capital assets management; public sector compensation and comparability; corporate and administrative services; service delivery infrastructure; use of information technology and its management).

Accountability, Good Governance and an enhanced role for Parliament

• Review of the Financial Administration Act.
• Review of Accountabilities of Ministers and Senior Public Servants.

Building Public Service Capacity

• Creating a core learning curriculum for public servants.
• Developing specialized programs for advanced financial management and other core management functions.
• Introducing enterprise-wide financial and human resource information systems.

The Prime Minister announced in December 2003 that democratic reform was a priority for his government. One of the fundamental principles identified in the government's action plan to support democratic reform is "Parliament should have the tools to hold the government to account for the good stewardship of public resources."³ This plan commits Deputy Ministers and departments to using the government's recently released Management Accountability Framework to report to Treasury Board on their stewardship of public resources.

In her November 2003 report to Parliament, the Auditor General of Canada included a chapter on measuring and reporting the performance of the Employment Insurance Income Benefits Program. While the Auditor General acknowledged considerable effort goes into measuring the performance of this program, she made recommendations for improvement. The Auditor General of Canada also made recommendations to improve the provision of information to Parliament with respect to the impact of the 1996 changes to the Employment Insurance Act. In their response to the report, the Department and the Canada Employment Insurance Commission agreed with the recommendations and the areas identified by the audit and indicated that these issues would be addressed as a matter of priority.

The Standing Committee on Human Resources Development and the Status of Persons with Disabilities presented two reports in 2003 that are within the responsibilities of HRSDC addressing issues related to literacy and urban Aboriginal people. Departmental commitments in response to these reports have been integrated into the priorities for 2004-2005.

Corporate Risks

Risk assessment is an integral part of the departmental planning and priority process. The department reviewed its corporate level risks in light of its mandate and operating environment and has identified three key risk areas for 2004-2005:

• Service and benefits delivery support to Canadians, and support to the Government and Ministers during a process of organizational restructuring and internal re-organization;
• Diligent accountability for results, stewardship of resources and transparency of decision-making in light of rising public concern and mistrust directed toward governments and public servants over the use and management of taxpayers' money; and
• Demonstrating policy and program leadership within the context of fiscal restraint, internal reallocation and expenditure review across government.

HRSDC must ensure that service and benefits delivery disruptions do not occur during this period of transition and transformation. The department must also ensure that provision of service and advice to the government and the Minister is likewise not impeded.

The department is entrusted with responsibility for the administration and delivery of billions of dollars through its many programs and services. Public expectations for the integrity of management processes and accountability for results are rising.

Equally, the department must maintain and build its capacity to provide policy and program leadership to address the current and emerging economic and social issues facing Canadians in an increasingly complex environment, including fiscal restraint.

These priorities and the results HRSDC expects to achieve aim to address the challenges of its operating environment and to mitigate the risks. A detailed outline of the department's risks and its mitigation strategies is presented in Annex 2.

Plans and Priorities by Strategic Outcomes

Introduction

As a new department, HRSDC undertook to set new priorities and new strategic outcomes for the results to be achieved from its programs and services. HRSDC priorities for 2004-2005 relating to its policies, programs and services have been established for each business line to align with specific strategic outcomes. Taken together, the department's priorities fall into one of four strategic areas:

• Policy Renewal and Program Leadership;
• Service Transformation;
• Strengthened Management Practices and Expenditure Review; and
• Organizational Effectiveness.

Diagram 2 demonstrates the interconnectedness of each of these strategic areas. In each, the department has identified where it will need to make progress, and how it proposes to do so. In addition, the department has identified the key deliverables for its work - what it must achieve over the course of the planning year.

The priorities and associated deliverables represent the department's support for government commitments, the response to important issues facing Canadians and areas for strengthened management practices. They also represent how, in addition to daily provision of services and benefits delivery, the department will achieve results to the benefit of Canadians as identified by the strategic outcomes. The achievement of its strategic outcomes does not rest with the department only. Without partners, the department alone cannot reach its goals. Success can only happen with the active participation of all players. Ensuring Canadians have the tools they need to participate fully in the labour market and society requires the active participation of a multitude of partners. The department will act as a catalyst.

First, cooperation with provinces and territories is required given their responsibility for education and labour market training. HRSDC will work closely with its provincial and territorial partners building on established relationships, through existing multilateral forums and bilaterally.

Employers and unions have an important role for workplace-based training; learning partners, not-for-profit organizations and community groups play an important role in providing information and services; and finally individuals are responsible to make personal decisions regarding the upgrading of their skills. They will all have to play their role for HRSDC to fully meet its objectives.

The complex nature of homelessness demands a multi-faceted approach with a variety of stakeholders, including all levels of government and partners such as the voluntary and private sectors. The National Homelessness Initiative works to bring them together, in a community-based approach, to provide a seamless array of services to meet the needs of homeless individuals and families.

Policy Renewal and Program Leadership

Canada continues to enjoy a relatively high standard of living. Countries that continue to prosper in the future will be those equipped with a highly skilled, adaptable and productive workforce.

Globalization, the emerging knowledge economy and slowing labour force growth are powerful drivers that are currently shaping Canada's labour market challenges. In addition, while Canada has one of the most educated workforces in the world, there are emerging skills gaps in three principal areas: Canada lags behind most other Organization for Economic Co-operation and Development (OECD) countries in terms of conferring advanced research degrees; Canada is experiencing shortages in many skilled trades; and many Canadians fail to gain the basic literacy and other essential skills they need to succeed in the knowledge-based economy. Meeting these challenges requires that HRSDC move forward on a human capital agenda based on two key pillars: 1) A lifelong learning agenda; and 2) An employment and skills strategy.

HRSDC's lifelong learning agenda will be aimed at building a culture of learning throughout the life course with a focus on expanding learning opportunities for Canadians. HRSDC's employment and skills strategy will focus on modernizing employment programs to help workers acquire the skills and support they need during periods of unemployment and other job transitions. A key focus of this work will be at the level of the workplace where developing the skills of adult workers would form a key element for achieving results for Canada both now and in the future. The agenda involves the development of a workplace skills strategy that will begin by focusing on more effective immigrant integration, strengthened skills development and labour market attachment of Aboriginal people, re-invigorate the Sector Council model and develop initiatives to increase the number of successful apprentices.

Delivering on the department's human capital agenda requires the active involvement of provinces and territories, as well as other key learning partners. As a result, HRSDC will work collaboratively with provinces and territories, along with employers, labour, learning partners and community organizations to ensure a concerted and coordinated policy effort that is based on the involvement and support of all key players in Canadian society.

Service Transformation

HRSDC is committed to renewing its services and service delivery by focusing on citizen's needs. Modernizing Service for Canadians was initiated in 2002 and the department will work with Social Development Canada to make progress on modernization efforts. While continuing to develop transformation concepts and strategies, significant progress was achieved over the past year in specific areas:

• Harmonization of call centres;
• Improvements to the management of Social Insurance Number and the Social Insurance Registry;
• National implementation of Interdec, the on-line bi-weekly reporting system for Employment Insurance recipients; and
• Receiving more than 50% of EI applications via Appli-Web thereby improving the completeness of information and speed of processing.

In 2004-2005, HRSDC will continue to collaborate with Social Development Canada and other partners to improve services and service delivery on behalf of Canadians. The department is working to strengthen the quality and cost-effectiveness of the programs and services it delivers by making them client-centred, seamless, timely and integrated. Throughout this process of modernization and transformation, and given the importance of departmental programs and services to individuals, business, communities and community groups, HRSDC is committed to ensuring that Canadians receive uninterrupted service.

HRSDC has three key deliverables in this strategic area:

1. To undertake, with Social Development Canada, major transformation steps in delivering the Service Vision for Canadians and providing the foundation for improved service and benefits delivery;
2. To finalize plans for the delivery of Employment Insurance in line with the Service Vision; and
3. To develop options on service delivery and service transformation.

Strengthening Management Practices and Expenditure Review

The department is committed to management practices that:

• ensure financial stewardship;
• strengthen effective management;
• strengthen the integrity of service and benefits delivery;
• support the achievement and accountability for results; and
• ensure programs, services and policies undergo thorough review.

Grant and contribution program administration is a fundamental element of the department's efforts to strengthen financial stewardship. The department has initiated, in collaboration with the Treasury Board Secretariat, an independent third party review of grant and contribution programs which will provide advice on the most appropriate business model(s) for program delivery that meets the highest standards of administration and accountability.

The department is also proceeding with full implementation of the Specialization and Concentration initiative that could lead to the specialization of specific delivery steps.

In support of strengthening effective management, HRSDC will also work to strengthen the department's audit and evaluation function through the Audit and Evaluation Committee and the developing, for example, risk-based audit and evaluation plans. Additionally, the department will implement the government's strategy to upgrade and certify the financial management skills of its managers and comptrollers. As part of government-wide initiatives, HRSDC is working to reinforce the importance of public sector values and ethics. One important element of this work has been the establishment of the departmental Office for Internal Disclosure to allow employees the opportunity to bring forward information concerning wrongdoing in the workplace without fear of reprisal.

In an effort to improve the integrity of services and benefits delivery, HRSDC has developed, in partnership with Social Development Canada, an enterprise-wide approach to managing the integrity of service and benefits delivery, to strengthen integrity across programs in a consistent way and with a common goal: to ensure that the right client receives the right benefit at the right time, and for the intended purpose.

HRSDC will also be working on three priority initiatives that will significantly enhance the integrity of service and benefit delivery:

• The first is Social Insurance Number/Social Insurance Registry (SIN/SIR) Integrity and Identity Management that will continue the process of improving the integrity of the SIN/SIR and will simplify identity related processes and tools used to access programs and services;
• The second is Vital Events Integration that see the implementation of a national model for linking the SIR and the vital events data of federal departments and provinces/territories with a focus on birth, marriage and death data (from provinces and territories) and landing data (from Citizenship and Immigration Canada); and
• The third is Risk Management and Integrity Operations that will ensure the integrity of program delivery through the introduction of proactive, enterprise-wide measures to improve the detection of integrity issues. At the same time, the focus will be on consistency to ensure fairness and transparency of program decisions.

A key component of supporting achievement and accountability for results is the improvement of the quality of reporting to Parliament and to the public. To ensure that Parliament has consistent and comprehensive information, efforts are being made to align departmental business lines with strategic outcomes, resources and performance measures.

A key aspect of organizational effectiveness and good governance is the continual reexamination of programs, policies and services to ensure they reflect government priorities, achieve the desired results and are delivered in an efficient manner. The department has identified expenditure reallocation commitments for 2004-2005 and will participate in the government-wide expenditure review processes as required.

Organizational Effectiveness

Effective organizations demonstrate high organizational performance within a sound governance framework. HRSDC is committed to being an effective organization and has undertaken a number of activities to support this priority, including:

• Putting in place a new organizational structure to support Ministers;
• Setting up a committee structure to ensure effective decision-making by senior executives and mechanisms to address issues of joint interest with Social Development Canada;
• Developing strategic outcomes and supporting detailed program activity architecture;
• Developing the departmental mandate; and
• Identifying of priorities in support of the Management Accountability Framework.

One of the most important elements of departmental governance is legislation to establish the department and to set out the powers, duties and functions of the Ministers; it is from departmental legislation that its mandate is derived. HRSDC currently operates under the authority of the Department of Human Resources Development Act. The department will work to develop proposed legislation to reflect its new role and mandate.

In addition to implementing changes that arose as a result of restructuring, the department continued its efforts to demonstrate effective management practices to promote an effective, informed, adaptable and capable workforce:

• Informing and engaging employees about values and ethics that as public servants they are obliged to understand, respect and apply;
• Implementing an internal communications strategy to support change management;
• Developing a corporate Human Resource Plan that will include upgrading the management skills of HRSDC managers and executives; and
• Meeting or exceeding targets with respect to official languages and diversity of employees.

Detailed Priorities by Strategic Outcome

The following table aligns HRSDC's priorities for each of its business lines by strategic outcome.

Performance Measurement Framework

Performance measurement is a critical tool to enable a department to focus on achieving results and demonstrating how programs and services benefit Canadians. With a new mandate and business lines, HRSDC has undertaken a comprehensive review to establish a new departmental performance measurement framework. This framework will facilitate both monitoring and reporting of results. The department is working to identify long, medium and shorter-term indicators that reflect its mandate and are aligned with its strategic outcomes, policies and programs.

HRSDC has identified the key elements that will comprise its performance measurement framework. Diagram 3 below sets out these elements.

HRSDC Performance Measurement Framework

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First, to measure performance, it is important to understand the environment in which the department delivers its programs and services. Contextual indicators describe the demographic, economic, labour market and social environment and are found in the Planning Overview section of this document. Contextual indicators, such as population growth and level of economic activity, are outside of HRSDC's sphere of influence, but serve to frame HRSDC's environment and influence the set of policy and delivery options available.

Secondly, a set of indicators is needed to measure progress toward the strategic outcomes of the department. Strategic outcomes are the enduring benefits HRSDC is working to achieve on behalf of Canadians, in conjunction with other parties. Strategic outcome indicators, such as the percentage of unemployed Canadians looking for work for more than one year, are broad measures that help to track progress toward achieving the identified strategic outcomes over the medium to long term. HRSDC policies and programs will be assessed in light of their contribution toward achieving these strategic outcomes. HRSDC is not the only influence on these outcomes - governments, along with key stakeholders and external factors play an important role. For example, the percentage of Canadians 18-24 years-old who attend university or community college is not only dependent on a range of HRSDC programs; it is also significantly influenced by the economy, employment and interest rates, as well as policies and programs of provinces and the actions of universities, colleges and individuals. Likewise, the labour programs of the department, while directly impacting workplaces under federal jurisdiction such as transportation and financial institutions, only form a small component of the overall Canadian workplace. HRSDC will continue to work on this set of indicators over the next year.

Finally, HRSDC needs to renew the program indicators used in the former HRDC department to demonstrate that HRSDC is effectively managing programs and services. The program indicators are intended to provide detailed, shorter-term results used for monitoring and improving programs and services - for instance, the percentage of accurate EI payments. The department is relying on the existing set of program indicators for this report, but will substantially review them over the coming year.

Below is the initial list of HRSDC strategic outcome and program indicators. Sources and more information on HRSDC's performance indicators can be found at (http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/ppr.shtml).

Strategic Outcome (Through access to learning, Canadians can participate fully in a knowledge-based economy and society)

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Departmental Human Resources

In addition to the indicators listed in the above strategic outcomes, HRSDC will also report actual results for the following HRSDC workforce indicators.

• Visible Minority Representation percentage;
• Aboriginal Representation percentage;
• Persons with Disabilities Representation percentage;
• Women Representation percentage;
• Official Language Complaints - Service to the public; and
• Official Language Complaints - Language of work.

Sustainable Development

As articulated in the 2004 Speech from the Throne, Sustainable Development remains a priority for the Government of Canada. Departmental sustainable development strategies are updated every three years, and in February 2004 the Ministers for HRSDC, Social Development, and Labour and Homelessness jointly tabled a third-generation Sustainable Development Strategy in Parliament. Due to the reorganization of HRDC, separate departmental strategies will be developed for tabling in 2006.

HRSDC is moving ahead to achieve the commitments outlined in the HRDC sustainable development strategies, while reviewing it in the context of HRSDC's mandate. Targets scheduled to be completed this year include:

• Development of a vision for Sustainable in HRSDC;
• Development of a tool for implementing sustainable development in new projects; and
• Implementing Internet service for transmission of medical certificates or medical information required for compassionate care benefits and sickness benefits.

For detailed information on the current Sustainable Development Strategy, including specific goals and targets, a copy of the Strategy may be accessed at the following departmental website: http://www.hrsdc.gc.ca/en/cs/fas/as/sds/sdd.shtml.

Special Responsibilities of the Minister

Organization

Strategic Outcomes and Business Lines

During 2004-2005 and beyond, HRSDC will focus on realizing its strategic outcomes by pursuing the most relevant and important initiatives, with a demonstrated focus on results. The department's efforts will make a difference in the lives of Canadians who can expect the high quality service that they deserve. Those efforts will be guided by HRSDC's commitment to effective and efficient use of fiscal and human resources.

The table below identifies the six strategic outcomes that HRSDC endeavours to provide for Canadians, and the links between business lines (i.e., Employment Insurance Benefits, Employment Programs, Workplace Skills, Learning, Labour, Homelessness, and Policy, Program and Service Delivery Support) and those strategic outcomes.

Strategic Outcomes and Business Lines 2004-2005 Planned Spending

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Accountability

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Departmental Planned Spending

2004-2005 Planned Expenditure Profile

HRSDC has expenditures of more than $20 billion, of which $17 billion or 85 % are direct benefits to Canadians through Employment Insurance, Loans disbursed under the Canada Student Financial Assistance Act (CSFAA) and other statutory transfer payments.

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Financial Highlights:

The department expects to spend $20,842.4 million in 2004-2005. This represents an increase of $219.9 million over the 2003-2004 restated authorities of $20,622.5 million. The variance is mainly due to the following:

• An increase of $67 million in statutory payments related to the introduction of the new Canada Learning Bond ($85 million) and for the enhancement of the Canada Education Savings Grant ($20 million) as announced in the Budget 2004, and the decrease in Canada Student Loans as a result of legislative changes that occurred during the year ($38 million);
• A net increase of $96 million in grants and contributions, mainly due to increases of $116 million in support of the Toronto Waterfront Revitalization Initiative (transfer of responsibility from Transport Canada), $35 million for the continuation of Phase II of the National Homelessness Initiative, $23 million for Aboriginal programs, and a major decrease of $85 million related to a 2003-2004 grant to the Canadian Council on Learning to promote and support evidence-based decision making in all areas of lifelong learning;
• An increase of $184 million for the Employment Insurance Account. The increase in benefits is due to a 2.5% increase in average weekly benefits partially offset by a 1.4% decline in the number of beneficiaries; and
• A decrease of $119 million due to the impact of loan reimbursements from borrowers on the loan portfolio under the Canada Student Financial Assistance Act.

For 2005-2006, the department planned spending is anticipated to be $21,148.3 million, which represents an increase of $305.9 million from the 2004-2005 planned spending. The major changes are as follows:

• An increase of $119 million in statutory payments which is mainly the results of the Budget 2004 announcements for the Enhancement of the Canada Education Savings Grant (additional $60 million), the Canada Student Loans Program (additional $59 million);
• A decrease of $63 million in grants and contributions which represents the reprofiling of contribution funds from 2003-2004 to 2004-2005 for the National Homelessness Initiative;
• A decrease of $125 million due to the impact of loan reimbursements from borrowers on the loan portfolio under the Canada Student Financial Assistance Act; and
• An increase of $364 million for the Employment Insurance Account. This growth in expenditures reflects the projected increase in the number of people eligible for benefits and increases in average benefits.

For 2006-2007, the net departmental planned spending excluding the Special Purpose Accounts is anticipated to be $3,150.7 million which represents a decrease of $334.4 million from the 2005-2006 net planned spending. The variance is mainly due to the following:

• An increase of $22 million in statutory payments related to the Budget 2004 announcements for the Canada Learning Bond (additional $15 million) and for the Canada Student Loans (additional $7 million);
• A decrease of $133 million in operating and grants and contributions for the National Homelessness Initiative as the Initiative has been renewed from 2003-2004 to 2005-2006 only; and
• A decrease of $238 million due to the impact of loan reimbursements from borrowers on the loan portfolio under the Canada Student Financial Assistance Act.

ANNEXES

Annex 1: Division of Responsibilities of the Former Human Resources Development Canada

Following the governmental reorganization announced on December 12, 2003, Human Resources Development Canada (HRDC) was split into two new departments: Human Resources and Skills Development Canada (HRSDC) and Social Development Canada (SDC). The following table shows the division of responsibilities of the former HRDC into the new departments.

Annex 2: Human Resources Skills Development 2004-2005 Corporate Risk Profile and Mitigating Strategies

Annex 3: Summary of Transfer Payments

Annex 4: Details on Transfer Payments Programs

Human Resources and Skills Development Canada (HRSDC) has a substantial number of transfer payment programs. These support individuals, communities, labour, other orders of government and Aboriginal organizations in the achievement of shared human development goals. HRSDC is subject to the revised policy on Transfer Payments, which was introduced on June 1, 2000. That policy requires departments to report on those transfer payment programs that are worth at least $5 million. In so doing, the department is helping to demonstrate sound management of, control over, and accountability for transfer payments.

Consistent with this policy, descriptive material on each program funded from the Consolidated Revenue Fund, including stated objectives, expected results and outcomes, and milestones for achievement has been developed. The following table provides a list of the active transfer payments programs. A fact sheet for each program over $5 million is also provided.

Planned spending figures reflect estimated program costs and exclude operating resources necessary to deliver the program.

Fact sheet #1 - Youth Employment Strategy

Fact sheet #2 - National Literacy Program

Fact sheet #3 - National Homelessness Initiative

Fact sheet #4 - Aboriginal Human Resources Development Strategy (AHRDS)

Fact sheet #5 - Aboriginal Skills and Employment Partnerships (ASEP)

Fact sheet #6 - Foreign Credential Recognition

Fact sheet #7 - Sector Council Program

Fact sheet #8 - Official Language Minority Communities Support Fund

Fact sheet #9 - Older Workers Pilot Projects

Annex 5 - Foundations (Conditional Grants)

Annex 6: Major Initiatives and/or Programs

The following annex provides a brief overview of the department's major programs and initiatives as well as a web address to which the reader may refer in order to obtain more information.

Annex 7: Source of Respendable and Non-Respendable Revenue

Annex 8: Net Cost of Programs for the Estimates Year

Financial Table Part I

Financial Table Part II

Annex 9: Specified Purpose Accounts

Specified Purpose Accounts (SPA) are special categories of revenues and expenditures. They report transactions of certain accounts where enabling legislation requires that revenues be earmarked and that related payments and expenditures be charged against such revenues. The transactions of these accounts are to be accounted for separately.

HRSDC is responsible for the stewardship of three such accounts:

• the Employment Insurance (EI) Account;
• the Government Annuities Account; and
• the Civil Service Insurance Fund.

The EI Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. Consolidated SPAs are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties but, in essence, constitute Government revenues and expenditures.

The Government Annuities Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit or surplus charged or credited to the Consolidated Revenue Fund.

The Civil Service Insurance Fund is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Civil Service Insurance Act. Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, the amount of actuarial deficits are transferred from the Consolidated Revenue Fund to the Civil Service Insurance Account in order to balance the assets and liabilities of the program.

Employment Insurance Account

Description

The Employment Insurance (EI) Account was established in the Accounts of Canada by the Employment Insurance Act (EI Act) to record all amounts received or paid out under that Act. The EI Act provides short-term financial relief and other assistance to eligible workers. The program covers all workers in an employer-employee relationship. Self-employed fishers are also included under special regulation of the EI Act. In 2002, 15.2 million Canadians contributed to the Program and 2.6 million received benefits.

Employment Insurance provides:

• Income Benefits under Part I of the EI Act as a temporary income replacement to claimants, including self-employed fishers, while they look for work. This includes work-sharing agreements for temporary work shortages to allow employees to receive pro-rated EI benefits while working for part of a week, thus avoiding layoffs. EI also provides four types of special benefits: maternity benefits, payable to biological mothers for work missed as a result of pregnancy and childbirth; parental benefits, payable to both biological and adoptive parents for the purpose of caring for a new born or adopted child; sickness benefits, payable to claimants who are too ill to work; and newly implemented compassionate care benefits, payable to claimants who provide care to a gravely ill or dying child, parent or spouse.
• Employment Benefits and Support Measures under Part II of the EI Act that can be tailored to meet the needs of individuals and local circumstances. The Government of Canada has Labour Market Development Agreements with all provinces and territories with the exception of Ontario. These enable provincial and territorial governments to assume direct responsibility for the design and delivery of these benefits or to take part in co-management arrangements with the federal government.

Employers and workers pay all costs associated with EI through premiums. Benefits and administrative costs are paid out of the Consolidated Revenue Fund and charged to the EI Account. A surplus in the Account generates interest at a rate established by the Minister of Finance, which is currently set at 90% of the monthly average of the three-month Treasury bill rate.

Financial Summary

In 2004-2005, total revenues are expected to exceed total costs by $1.4 billion, which will increase the cumulative surplus to $47.2 billion as of March 31, 2005. The changes in benefits and premium are explained as follows:

• Benefits are expected to increase by 1.4% to $15.7 billion. This is due to a 2.5% expected increase in the average weekly benefits partially offset by a 1.4% expected decline in the number of beneficiaries; and
• Premium revenue is expected to decrease to $17.5 billion, as the reduction in premium rates to 1.98% in 2004 is partially offset by rising employment and earnings.

The following chart summarizes trends in total costs and revenues of the EI Account from 1992-1993 to 2004-2005 and the status of the EI Account between 2001-2002 and 2004-2005.

The table below summarizes the financial results for the EI Account from 2001-2002 to 2004-2005. In 2002-2003, the Government of Canada changed its basis of accounting from the modified accrual accounting to the full accrual basis of accounting. This change in accounting policy has been applied retroactively and the financial statements have been restated accordingly.

Benefit Payments

Benefits in 2004-2005 are expected to reach $15.7 billion, consisting of $13.5 billion for Income Benefits and $2.2 billion for Employment Benefits and Support Measures.

Income Benefits

EI Income Benefits include regular, special, work sharing and fishers' benefits.⁴ Major aspects of these benefits are as follows:

Regular Benefits

• Amount of Work Required to Qualify for Benefits
  • Most claimants require 420 to 700 hours of work during their qualifying period, regardless of whether from full-time or part-time work, or whether the work is with one employer or several. The exact number of hours required is called the "variable entrance requirement". It is determined by the rate of unemployment in a claimant's region at the time he or she applies for benefits. In general, the higher the rate of unemployment, the fewer hours of work required to qualify.
  • People who have just entered the labour market ("new entrants") and those returning to the labour force after an absence ("re-entrants") require 910 hours of work. However, if they worked at least 490 hours in the 12 months preceding the qualifying period, or received at least one week of maternity or parental benefits in the four years before that, they will be eligible under normal rules the following year.
  • Claimants who commit EI fraud are subject to higher entrance requirements. The degree of violation - minor, serious, very serious or repeat violation - increases the minimum number of hours required to establish a claim to 1.25, 1.5, 1.75 or 2 times the normal minimum hours of work required.
  • Analysis of the employed population indicates that access to EI remains high with 88% of individuals in paid employment being eligible for EI benefits.⁵
• Determining the Benefit Rate and Entitlement
  • Claimants for regular benefits may receive benefits for 14 to 45 weeks, depending upon their hours of insurable employment and the regional unemployment rate.
  • Claimants' weekly benefits are 55% of their average insurable earnings during the last 26 weeks. The average insurable earnings are based on the actual weeks of work, subject to a minimum 14 to 22 divisor that is tied to the regional rate of unemployment.
  • Claimants with a combined family income of less than $25,921 and who qualify for the Canada Child Tax Benefit (CCTB) receive a Family Supplement based upon:
    • The net family income;
    • The number of dependent children; and
    • The ages of those dependent children.
• The benefit rate for claimants who receive a Family Supplement can be increased to a maximum of 80% of the claimant's average weekly insurable earnings. However, the actual weekly amount of benefits cannot exceed the maximum weekly rate noted below.
• The maximum weekly benefit rate stays at $413 (55% of the maximum weekly insurable earnings of $750). The Maximum Yearly Insurable Earnings (MYIE) remain at $39,000 until they are exceeded by 52 times the projected average weekly industrial wages.

Special Benefits

Claims for sickness, maternity, parental, or compassionate care benefits require 600 hours of work, and are not affected by the new entrant/re-entrant rule. All claimants may receive sickness benefits for up to 15 weeks. Parental benefits of 35 weeks are available for biological and adoptive parents in addition to the 15 weeks of maternity benefits available to biological mothers. Compassionate care benefits of 6 weeks are available for those providing care for a gravely ill or dying child, parent or spouse.

Work Sharing

Claimants may receive benefits while on work-sharing agreements. These agreements between HRSDC, employees and employers attempt to avoid temporary layoffs by combining partial EI benefits with reduced work weeks. They normally last from 6 to 26 weeks.

Fishers' Benefits

Fisher claims have a duration and benefit rate that depend on the earnings from fishing and the regional rate of unemployment. All fisher claims have a 31-week maximum qualifying period and a maximum entitlement of 26 weeks of benefits. These can be claimed from October 1^st to June 15^th for summer fishers' benefits and April 1^st to December 15^th for winter fishers' benefits.

Benefit rates for fisher claims are determined by a minimum of 14 to 22 divisor that depends on the regional rate of unemployment, not actual weeks worked.

Benefit Repayments

When the net annual income of EI claimants exceeds 1.25 times the maximum yearly insurable earnings ("the repayment threshold"), they have to repay the lesser of 30% ("the repayment rate") of the benefits received that make up the excess or 30% of the amount of regular or fishers benefits paid. This does not apply to claimants who did not receive EI regular or fishers benefits in the last 10 years, to recipients of special EI benefits nor to recipients of employment benefits.

Employment Benefits and Support Measures

The Employment Benefits include Skills Development, Job Creation Partnerships, Self-Employment and Targeted Wage Subsidies.

The Support Measures include Employment Assistance Services, Labour Market Partnerships and Research and Innovation.

Part II of the EI Act also authorizes the federal government to make payments to the governments of the provinces and territories for implementing programs similar to Employment Benefits and Support Measures. The planned federal contribution to provinces and territories (i.e., New Brunswick, Quebec, Manitoba, Saskatchewan, Alberta, Northwest Territories and Nunavut) under transfer Labour Market Development Agreements is $892 million for 2004-2005.

The total planned spending for Employment Benefits and Support Measures in 2004-2005 is set at approximately $2.2 billion or 0.6% of the total estimated insurable earnings of $382.876 billion. This is below the 0.8% ceiling set under Section 78 of the EI Act.

Premiums

Premiums are collected from insured employees and their employers to cover the program costs over a business cycle, based on a yearly premium rate and employees' insurable earnings. The factors affecting the premiums are further explained below:

Premium Rate: As indicated in the chart, the premium rate has been gradually reduced from its peak level of 3.07% of insurable earnings in 1994 to 2.10% in 2003 and 1.98% in 2004, for employees. The corresponding employer rates at 1.4 times the employee rate are 2.94% for 2003 and 2.77% for 2004.

The government's objective on setting EI premium rates is to develop a more transparent and sustainable process. Budget 2003 launched public consultations on a new rate-setting regime for 2005 and beyond, the results of which the Government is currently reviewing. The summaries of these EI rate-setting consultations can be found on the Department of Finance website; http://www.fin.gc.ca/activty/consult/eirates_e.html. Legislation to implement the results of this process will be introduced in time to have the new regime in place for 2005.

For planning purposes, the premium revenue forecast for 2004-2005 is based on a premium rate of 1.98% for the employee and 2.77% for the employer in the first three months of 2005.

Maximum Yearly Insurable Earnings (MYIE): Premiums are paid on all employment earnings of insured employees up to the MYIE. Section 4 of the EI Act provides that the MYIE will be $39,000 until the projected value of the average weekly earnings in Canada times 52 exceeds that threshold. Thereafter, the MYIE will be set equal to such projected value times 52, rounded down to the nearest $100. For 2004, the projected value (times 52) was calculated to be $36,200 and, therefore, the MYIE was left at $39,000.⁶

Premium Reduction: Employers with qualified wage-loss insurance plans are entitled to premium reductions. They are required to share this reduction with their employees.⁷

Premium Refund:

• Workers with annual earnings of $2,000 or less can receive a refund of their EI premiums through the income tax system.
• EI premiums are refunded to employees when their insurable earnings are in excess of the maximum yearly insurable earnings.

Interest Earned

Section 76 of the EI Act stipulates that the Minister of Finance may authorize the payment of interest on the balance in the Employment Insurance Account in accordance with such terms and conditions and at such rates as the Minister of Finance may establish, and the interest, which is currently set at 90% of the monthly average of the three-month Treasury bill rate, shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund. Interest is calculated monthly, based on the 30-day average of the daily balance in the Account.

Effective July 1, 2002, interest is charged on overdue accounts receivable, caused through misrepresentation, in accordance with Treasury Board regulations. The interest rate used in this calculation is the average Bank of Canada discount rate for the previous month plus 3%.

Interest earned is expected to remain at $1.2 billion, as the decrease in the interest rate is offset by the higher cumulative surplus.

Administrative Costs

Section 77 of the EI Act specifies that the costs of administering the Act are to be charged to the EI Account. The charges to the Employment Insurance Account are solely those directly related to the program and administration expenses under the Employment Insurance Act.

The Minister of Human Resources and Skills Development is responsible for reporting on the EI Program to Parliament. However, the Canada Revenue Agency (CRA), which collects premiums and benefit repayments and provides decisions on insurability under the Act, shares the administration of the Program. The Department of Social Development, Treasury Board Secretariat and the Department of Justice all supply services that support management and delivery of programs under the EI Act.

The administrative costs that provincial and territorial governments incur to administer Employment Benefits and Support Measures under the Labour Market Development Agreements are also charged to the EI Account.

The $1,539 million in EI administrative costs represents the initial requirements for 2004-2005, which are $32 million less than the forecast for 2003-2004.

Government Annuities Account

This account was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit charged or surplus credited to the Consolidated Revenue Fund.

The purpose of the Government Annuities Act was to assist Canadians to provide for their later years, by the purchase of Government annuities. The Government Annuities Improvement Act increased the rate of return and flexibility of Government annuity contracts.

Income consists of premiums received, funds reclaimed from the Consolidated Revenue Fund for previously untraceable annuitants, earned interest and any transfer needed to cover the actuarial deficit. Payments and other charges represent matured annuities, the commuted value of death benefits, premium refunds and withdrawals, and actuarial surpluses and unclaimed items transferred to non-tax revenues. The amounts of unclaimed annuities, related to untraceable annuitants, are transferred to non-tax revenues.

As of March 31, 2004, there were 3,558 outstanding deferred annuities, the last of which will come into payment around 2030.

Civil Service Insurance Fund

This account was established by the Civil Service Insurance Act, under which the Minister of Finance could contract with permanent employees in the public service for the payment of certain death benefits. No new contracts have been entered into since 1954 when the Supplementary Death Benefit Plan for the Public Service and Canadian Forces was introduced as part of the Public Service Superannuation Act and the Canadian Forces Superannuation Act, respectively. As of April 1997, the Department of Human Resources Development assumed the responsibility for the administration and the actuarial valuation of the Civil Service Insurance Act.

The number of policies in force as of March 31, 2004 was 1,653 and the average age of the policy holders was 85.6 years. Receipts and other credits consist of premiums and an amount (charged to expenditures) which is transferred from the Consolidated Revenue Fund in order to balance the assets and actuarial liabilities of the program. Payments and other charges consist of death benefits, settlement annuities paid to beneficiaries and premium refunds.

Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, any deficit will be credited to the Account from the Consolidated Revenue Fund.

Annex 10: Employment Insurance Part II - 2004-2005 Expenditure Plan⁸

Background

Part II of the Employment Insurance (EI) Act commits the federal government to work in concert with provinces and territories in designing and implementing active employment programs that would be more effective in helping unemployed Canadians integrate into the labour market. These programs are called Employment Benefits and Support Measures (EBSMs).

In accordance with the Government of Canada's 1996 offer to provinces and territories to enter into bilateral partnerships on labour market activities, Labour Market Development Agreements (LMDAs) have been concluded with nine provinces and the three territories. The LMDAs involve two types of arrangements:

• Co-management agreements where Human Resources and Skills Development Canada (HRSDC), formerly Human Resources Development Canada, and the province or territory jointly assume responsibility for the planning and design of EBSMs, while HRSDC continues to deliver programs and services through its service delivery network. Such agreements have been concluded with Newfoundland and Labrador, Prince Edward Island, British Columbia and the Yukon. There is also a strategic partnership agreement that is a variation of co-management in Nova Scotia. Furthermore, HRSDC delivers EBSMs in Ontario where there is no LMDA.
• Transfer agreements where the province or territory assumes responsibility for the design and delivery of active employment programs similar to EBSMs. Such agreements have been concluded with New Brunswick, Quebec, Manitoba, Saskatchewan, Alberta, the Northwest Territories and Nunavut.

In addition to locally and regionally delivered EBSMs and similar programs, pan-Canadian activities that are national or multi-regional in scope or purpose are delivered by HRSDC in any of the provinces through EBSMs. Pan-Canadian activities include programming similar to EBSMs delivered by Aboriginal organizations under Aboriginal Human Resources Development Agreements.

Employment Benefits and Support Measures

The five Employment Benefits are:

• Targeted Wage Subsidies - to encourage employers to hire individuals whom they would not normally hire in the absence of a subsidy;
• Self-Employment - to help individuals to create jobs for themselves by starting a business;
• Job Creation Partnerships - to provide individuals with opportunities through which they can gain work experience which leads to on-going employment;
• Skills Development - to help individuals to obtain skills for employment, ranging from basic to advanced skills through direct assistance to individuals, and, where applicable, contributions to provinces/territories or provincially/territorially funded training institutions to cover costs not included in tuition fees; and
• Targeted Earnings Supplements - to encourage individuals to accept employment by offering them financial incentives.

It should be noted that of the Employment Benefits listed above, Targeted Earnings Supplements has not yet been implemented. Pilot research projects were conducted to evaluate the effectiveness of Targeted Earnings Supplements but HRSDC has not yet arrived at a feasible design.

Eligibility to receive assistance under the Employment Benefits extends to persons who are insured participants as defined in Section 58 of the EI Act, i.e., active claimants and former claimants (individuals who have received regular benefits in the past three years or maternity or parental benefits in the past five years).

Part II of the legislation also authorizes the establishment of Support Measures in support of the National Employment Service. The three measures are:

• Employment Assistance Services - to assist organizations in the provision of employment services to unemployed persons;
• Labour Market Partnerships - to encourage and support employers, employee and/or employer associations and communities to improve their capacity for dealing with human resource requirements and implementing labour force adjustments; and
• Research and Innovation - to support activities which identify better ways of helping persons prepare for or keep employment and be productive participants in the labour force.

Financial Data

For 2004-2005, the EI Part II expenditure authority of $2.2 billion represents 0.57% of total estimated insurable earnings of $382.876 billion. This represents a lower level of expenditures than the 0.8% ceiling imposed under the Act, which is estimated at $3.06 billion.

Some of the savings from Part I income benefits generated by the EI reform are included in these funds to provide job opportunities and help Canadians get back to work more quickly. The amount of re-investment reached maturity at $800 million in 2000-2001.

Expected Results

An accountability framework has been developed that respects the legal responsibility of the Minister of Human Resources and Skills Development for the EI Account. Key indicators will measure both the short and long term outcomes of EBSMs.

It is expected that 393,000 active claimants and an estimated 75,000 former claimants will be assisted in 2004-2005. These estimates may change, depending on labour market conditions and agreements achieved with provinces and territories.

Of the thirteen formative evaluations scheduled to take place, twelve are completed. A formative/ summative evaluation of the Nunavut LMDA is underway and planned for completion by fiscal 2004-2005. Summative evaluations of the LMDAs, which will provide reliable and valid information concerning a program's impacts and effectiveness, are near completion in three provinces, namely British Columbia, Newfoundland and Labrador, and Quebec (in Quebec, the province is leading the evaluation, in consultation with HRSDC). General findings of these studies will be published in the 2003 Employment Insurance Monitoring and Assessment Report. Summative evaluations are well underway in Ontario, Alberta, and Saskatchewan. Findings for these evaluations will be due in fiscal 2004-2005. The process will be launched in the Northwest Territories and the Yukon in early 2004. The remaining provinces/territories have begun early discussions and hope to have completed evaluations by 2005.

The Medium-Term Indicator (MTI) pilot project has completed a first phase in British Columbia. The MTI pilot is designed to test the feasibility of using operational data to monitor and report on EBSM effectiveness on an ongoing basis. Preliminary findings of this project will also be reported in the Monitoring and Assessment Report. A second pilot project has commenced in Alberta. This project continues to support the department's commitment to monitor and report upon the effectiveness of EBSM programs delivered under the LMDAs.

Annex 11: Loans (Non Budgetary)

Annex 12: Consolidated Report on Canada Student Loans

In August 2000, the Canada Student Loans Program (CSLP) was shifted from the risk-shared financing arrangements that had been in place with financial institutions between 1995 and July 2000 to a direct student loan financing plan.⁹

This meant that the Program had to redesign the delivery mechanism in order to directly finance student loans. In the new arrangement, the Government of Canada provides the necessary funding to students and two service providers have contracts to administer the loans.

It also meant that the Program had to enter into interim contracts with the former risk-shared loan lenders in order to ensure uninterrupted delivery of federal student financial assistance until the Direct Loans program could be fully implemented. These contracts ended February 28, 2001.

Reporting Entity

The entity detailed in this report is the Canada Student Loans Program only and does not include departmental operations related to the delivery of the CSLP. Expenditures in the figures are primarily statutory in nature, made under the authority of the Canada Student Loans Act and the Canada Student Financial Assistance Act.

Basis of Accounting

The financial figures are prepared in accordance with accounting policies and concepts generally accepted in Canada and as reflected in the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants.

Specific Accounting Policies

Revenues

Two sources of revenue are reported: interest revenue on Direct Loans and recoveries on Guaranteed and Put Back Loans. Government accounting practices require that recoveries from both sources be credited to the government's Consolidated Revenue Fund. They do not appear along with the expenditures in the CSLP accounts, but are reported separately in the financial statements of Human Resources and Skills Development Canada (HRSDC) and the Government.

• Interest Revenue on Direct Loans - Student borrowers are required to pay simple interest on their student loans once they leave full-time studies. At the time they leave school, students have the option of selecting a variable (prime + 2.5%) or fixed (prime + 5%) interest rate. The amounts in the figures represent the interest accrued on the outstanding balance of the government-owned Direct Loans. Borrowers continue to pay the interest accruing on the guaranteed and risk-shared loans directly to the private lender holding these loans.
• Recoveries on Guaranteed Loans - The government reimburses the private lenders for any loans issued prior to August 1, 1995 that go into default (i.e., lenders claim any amount of principal and interest not repaid in full). The amounts in the figures represent the recovery of principal and interest on these defaulted loans.
• Recoveries on Put-back Loans - Under the risk-shared agreements, the government will purchase from the participating financial institutions any loans issued between August 1, 1995 to July 31, 2000 that are in default of payments for at least twelve months after the period of study, that in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The recoveries amounts in the figures represent the recovery of principal and interest on these loans.

Canada Study Grants

Canada Study Grants improve access to post-secondary education by providing non-repayable financial assistance to post-secondary students with particularly high levels of need. Five types of grants are available to assist: (1) students with permanent disabilities in order to meet disability-related educational expenses (up to $8,000 annually); (2) students with dependants (up to $3,120 annually); (3) high-need part-time students (up to $1,200 annually); (4) women in certain fields of Ph.D. studies (up to $3,000 annually for up to three years); and (5) high-need students with permanent disabilities (up to $2,000 annually).

Collection Costs

These amounts represent the cost of using private collection agencies to collect defaulted Canada Student Loans. The loans being collected include: risk-shared and guaranteed loans that have gone into default and for which the government has reimbursed the private lender; and Direct Loans issued after July 31, 2000, that are returned to HRSDC by the third party service provider as having defaulted.

Interim Arrangements

As noted in the introduction to this section, interim contracts were entered into with the former risk-shared loan lenders to disburse full-time Direct Loans on the government's behalf until February 28, 2001. At that time, the government reimbursed the lenders 85% of the loan principal they had advanced during the interim period. The remaining 15% was reimbursed to the lenders later. These contracts also called for remuneration in the form of transaction fees and the interest on funds advanced on behalf of the government. Another contract was entered into with Canada Post for the delivery of Direct Loans to part-time students. The Interest Cost to Financial Institutions (Interim) and Transition fees to Financial Institutions (Interim) items identify the cost of these interim arrangements.

• Interest Cost to Financial Institutions (Interim) - This expense represents the interest costs, calculated at prime, paid by CSLP on a monthly basis to the lending institutions on the outstanding advances made to full-time students with Direct Loans.
• Transition Fees to Financial Institutions (Interim) - This expense represents the cost of transaction fees paid by CSLP during the interim period for each fully completed full-time loan made to the student by the participating lending institutions. Transition fees also include payments made to Canada Post for each fully completed part-time loan made during the interim period. The cost is calculated on the basis of certificates of eligibility negotiated by the student.

Service Bureau Costs

As of March 1, 2001, CSLP uses third party service providers to administer Direct Loans disbursement, in-study loan management and post-studies repayment activities. This item represents the cost associated with these contracted services.

Risk Premium

Risk premium represents part of the remuneration offered to lending institutions participating in the risk-shared program from August 1, 1995 to July 31, 2000. The risk premium was 5% of the value of loans being consolidated (normally the value of loans issued to students), being calculated and paid at the time students leave studies and go into repayment. In return, the lenders assumed risk associated with non-repayment of these loans.

Put-Back

Subject to the provisions of the contracts with lending institutions, the government will purchase from a lender the student loans that are in default of payment for at least twelve months and that, in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The figures also include any refund made to participating financial institutions on the recoveries.

Administrative Fees to Provinces and Territories

Pursuant to the Canada Student Financial Assistance Act (CSFA Act), the government has entered into arrangements with participating provinces and Yukon Territory to facilitate the administration of the CSLP. They administer the application and needs assessment activities associated with federal student financial assistance and in return they are paid an administrative fee.

In-Study Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The amounts in the figures represent the cost attributed to CSLP in support of Direct Loans while students are considered in study status.

In Repayment Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The amounts in the figures represent the cost of interest while students are in repayment of their Canada Student Loans.

In-Study Interest Subsidy

A central feature of federal student assistance is that student borrowers are not required to pay the interest on their student loans as long as they are in full-time study and, in the case of loans negotiated prior to August 1, 1993, for six months after the completion of studies. Under the guaranteed and risk-shared programs, the Government paid the interest to the lending institutions on behalf of the student.

Interest Relief

Assistance may be provided to cover loan interest for up to 54 months for borrowers who have difficulty repaying their loans. The shift from Guaranteed and Risk-Shared Loans to Direct Loans did not alter interest relief for loans in distress from the borrower's perspective; however, the method of recording associated costs changed. For loans issued prior to August 1, 2000, CSLP compensates lending institutions for lost interest equal to the accrued interest amount on loans under interest relief. For loans issued after August 1, 2000, an interest relief expense is recorded to offset the accrued interest on direct loans.

Debt Reduction in Repayment

Debt Reduction in Repayment (DRR) assists borrowers in severe financial hardship. DRR is a federal repayment assistance program through which the Government of Canada reduces a qualifying student's outstanding Canada Student Loans principal to an affordable amount after all other interest relief measures are exhausted. The maximum amount of the reduction is $10,000 or 50% of the loan principal, whichever is less. For loans issued prior to August 1, 2000, CSLP pays the lending institutions the amount of student debt principal reduced by the Government of Canada under DRR. For loans issued after August 1, 2000, the Government of Canada forgives a portion of the loan principal.

Claims Paid and Loans Forgiven

From the beginning of the program in 1964 until July 31, 1995, the Government fully guaranteed all loans issued to students by private lenders. The Government reimburses private lenders for any of these loans that go into default (i.e., lenders claim any amount of principal and interest not repaid in full, after which the department of Social Development Canada's Collection Services will attempt to recover these amounts).¹⁰ The risk-shared arrangements also permitted loans issued from August 1, 1995 to July 31, 2000 to be guaranteed under specific circumstances. This item represents the costs associated with loan guarantees.

Pursuant to the Canada Student Loans Act and the Canada Student Financial Assistance Act, the government incurs the full amount of the unpaid principal plus accrued interest in the event of the death of the borrower or if the borrower becomes permanently disabled and cannot repay the loan without undue hardship.

Bad Debt Expense

Under Direct Loans, the government owns the loans issued to students and must record them as assets. As a result, Generally Accepted Accounting Principles require a provision be made for potential future losses associated with these loans. The provision must be made in the year the loans are issued even though the losses may occur many years later. The amounts in the figures represent the annual expense against the provisions for Bad Debt and Debt Reduction in Repayment on Direct Loans.

Alternative Payments to Non-participating Provinces

Provinces and territories may choose not to participate in the CSLP. These provinces and territories receive an alternative payment to assist in the cost of delivering a similar student financial assistance program.

Commitments

As at March 31, 2004 the department had the following commitments for Service Provider contracts: $76.6 million. The current end date for the Service Provider contracts is February 28, 2005.

Consolidated Canada Student Loans Programs - Financial Tables

Annex 13: Major Regulatory Initiatives

Annex 14: Horizontal Initiatives

Human Resources and Skills Development Canada is the lead on the following horizontal initiatives. A Horizontal Results Database detailing each initiative is available at the following internet address: http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp

• Aboriginal Human Resources Development Strategy
• Aboriginal Skills and Employment Partnership Program
• Youth Employment Strategy
• Labour Market Development Agreements
• Sector Council Program
• Foreign Credential Recognition
• Older Workers Pilot Projects Initiative
• Canada Student Loans Program
• National Literacy Program
• National Homelessness Initiative
• Service Canada
• Toronto Waterfront Revitalization Initiative

Website References

HRSDC Website
http://www.hrsdc-rhdcc.gc.ca

The Honourable Joseph Volpe, P.C., M.P.
Minister of Human Resources and Skills Development Canada
http://www1.hrsdc.gc.ca/menu/home.shtml

The Honourable Joseph Frank Fontana
Minister of Labour and Housing
http://www.pm.gc.ca/eng/bio.asp?id=29

The Honourable Claudette Bradshaw
Minister of State (Human Resources Development)
http://www.pm.gc.ca/eng/bio.asp?id=20

Acts and Regulations Governing Human Resources and Skills Development Canada and
Social Development Canada
http://www.hrsdc.gc.ca/en/cs/fas/as/contact/acts.shtml

HRSDC Overview

• Speech from the Throne, February 2, 2004
  http://www.news.gc.ca/cfmx/CCP/view/en/index.cfm?articleid=76349&categoryid=4
• The Budget Speech 2004
  http://www.fin.gc.ca/budget04/speech/speeche.htm
• Statistics Canada, The Daily, October 30, 2002
• HRSDC Programs and Services
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/ps.shtml
• About HRSDC
  http://www.hrsdc.gc.ca/en/cs/comm/hrsd/about_us.shtml

Efficient and Effective Income Support and Labour Market Transitions

• Employment Insurance Benefits
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/ei.shtml
• Employment Benefits and Support Measures
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/gc.shtml
• Labour Market Development Agreements
  http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/h004_e.asp
• Aboriginal Human Resources Development Strategy
  http://www17.hrdc-drhc.gc.ca/ARO-BRA/ARO.cfm
  http://www.socialunion.gc.ca/ecd_e.html
  http://www.hc-sc.gc.ca/english/media/releases/2002/2002_72bk.htm
• Aboriginal Skills and Employment Partnerships
  http://www17.hrdc-drhc.gc.ca/ARO-BRA/ARO.cfm
• Youth Employment Strategy
  http://www.youth.gc.ca
• Official Language Minority Communities
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/solmc.shtml
• Work Sharing
  http://www.hrsdc-rhdcc.gc.ca/en/epb/sid/cia/grants/ws/desc_ws.shtml

Enhanced Competitiveness of Canadian Workplaces by Supporting Investment in and Recognition and Utilization of Skills

• The Sector Council Program
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/spi.shtml
• National Occupation Classification
  http://www23.hrdc-drhc.gc.ca/2001/e/generic/welcome.shtml
• Apprenticeship and Labour Mobility Initiatives
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/almi.shtml
• The Foreign Worker Program
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/fw.shtml
• Labour Market Information
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/lmi.shtml

Through Access to Learning, Canadians Can Participate Fully in a Knowledge-Based Economy and Society

• Student Financial Assistance (Canada Student Loans Program)
  http://www.hrsdc.gc.ca/en/gateways/topics/cxp-gxr.shtml
  http://www.canlearn.ca
• Canada Education Savings Grant
  http://www.hrsdc.gc.ca/en/gateways/topics/cgs-gxr.shtml
• National Literacy Program
  http://www.hrsdc.gc.ca/en/gateways/topics/lxa-gxr.shtml
• Learning Initiatives Program
  http://www.hrsdc.gc.ca/en/gateways/topics/lxi-gxr.shtml
• International Academic Mobility
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/iam.shtml
• Office of Learning Technologies
  http://www.hrsdc.gc.ca/en/hip/lld/olt/01_index.shtml

Safe, Healthy, Fair, Stable, Cooperative and Productive Workplaces

• The Federal Mediation and Conciliation Service
  http://www.hrsdc.gc.ca/asp/gateway.asp?hr=/en/lp/fmcs/02About.shtml&hs=mxm
• National Labour Operations
  http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/labour.shtml
• International Labour Affairs
  http://www.hrsdc.gc.ca/en/gateways/business/cluster/category/ilaa.shtml
• Work-life Balance and Ageing Workforce
  http://www.hrsdc.gc.ca/en/gateways/topics/wnc-gxr.shtml

Enhanced Community Capacity to Contribute to the Reduction of Homelessness

• The National Homelessness Initiative
  http://www.homelessness.gc.ca/home/index_e.asp

Questions and Public Enquiries

If you have questions about departmental programs and services, you may contact your nearest Human Resource Centre of Canada office listed in the Government of Canada pages of the telephone book or through the HRSDC website at http://www.hrsdc.gc.ca/en/gateways/nav/top_nav/our_offices.shtml.

To obtain HRSDC publications, please contact the Public Enquiries Centre at http://www.hrsdc.gc.ca/en/gateways/nav/left_nav/publications.shtml.

• ¹ Annex 1 provides a detailed outline of the allocation of programs, services and activities from the former HRDC to the new departments of Human Resources and Skills Development Canada and Social Development Canada.
• ² "Private sector economists expect the Canadian economy to grow by an average of 2.7 per cent in 2004, and they expect a further pickup in growth to 3.3 percent in 2005" (Budget in Brief 2004, Finance Canada).
• ³ http://www.pco-bcp.gc.ca/default.asp?Language=E&Page=Publications&doc=dr-rd/dr-rd_doc_e.htm#Messages
• ⁴ For more details refer to the EI website at http://www.hrdc-drhc.gc.ca/ae-ei/employment_insurance.shtml
• ⁵ For further information, see http://www.hrdc-drhc.gc.ca/ae-ei/loi-law/eimar.shtml
• ⁶ For further information, see http://www.hrdc-drhc.gc.ca/ae-ei/loi-law/max2003.pdf
• ⁷ For further information, see http://www.hrdc-drhc.gc.ca/prp-prtc/
• ⁸ The following information is extracted from the approved Employment Insurance Expenditure Plan and does not reflect developments subsequent to the approval.
• ⁹ For further information on the Canada Student Loans Program, see http://www.hrdc-drhc.gc.ca/student_loans.
• ¹⁰ An announcement was made on December 12, 2003 which split Human Resources Development Canada into two new departments - Human Resources and Skills Development Canada and Social Development Canada (SDC). It was subsequently determined that collection services would be shared between the two departments and housed in SDC.