Industry Canada Milestones
1993-2000

Introduction

Innovation

• Industry Portfolio S&T; Action Plan
• Advisory Council on Science and Technology
• Technology Partnerships Canada
• Canada Foundation for Innovation
• Networks of Centres of Excellence
• Canada Research Chairs
• Communications Research Centre
• Council of Science and Technology Advisors
• Canadian Environment Industry Strategy
• Canadian Biotechnology Strategy
• Sustainable Development Strategy
• Canadian Technology Network
• Technology Road Maps
• Sudbury Neutrino Observatory
• Micro-Economic Policy Analysis

Connectedness

Canada On-line
Smart Communities
Canadian Content On-line
Electronic Commerce
Canadian Governments On-line
Connecting Canada to the World

Marketplace Frameworks

Intellectual Property
Bankruptcy
Competition
Measurement
Corporations
Consumer Affairs
Standards
Lobbyists
Connectedness
Emergency Telecommunications

Investment Partnerships Canada
Canada Business Service Centres
SME Conferences and Info-Fairs
International Small Business Congress
Small Business Guide
Canada Community Investment Plan
FedNor
Aboriginal Business Canada
Aboriginal Youth Business Initiative
Aboriginal Business Development Initiative
Access to Capital
Canada Small Business Financing Act
Community Futures
Canada Ontario Infrastructure Works Program

Trade

Trade Policies
Exporting
Sectoral Policies
Tourism

Corporate Restructuring and
Human Resource Management

Restructuring Industry Canada
Reduction
Renewal

Industry Canada was formed in 1993 when the government brought together within a single organization the previous responsibilities of Industry, Science and Technology Canada in promoting international competitiveness, economic development and excellence in science; telecommunications policy and programs from the Department of Communications; the market and business framework responsibilities from Consumer and Corporate Affairs Canada; and investment research, policy and review functions from Investment Canada.

The department has been guided in its activities by a mandate to complement the government's strategy to build and maintain strong macro-economic fundamentals with a micro-economic strategy for building competitive advantage through innovation, trade and investment, human capital and productivity enhancement.

In December of 1994, Building A More Innovative Economy, a government-wide action plan, called for partnership among all Canadians and their institutions to stimulate job creation and growth in the private sector. Industry Canada, along with its partners and stakeholders, has worked to implement this plan by focussing on five key objectives:

• improving Canada's innovation performance and the transition to the knowledge-based economy;
• making Canada the most connected country in the world;
• building a fair, efficient and competitive marketplace;
• improving conditions for investment; and,
• increasing Canada's share of global trade.

This document lists a number of Industry Canada's key milestones in meeting these objectives and contributing to a growing, competitive, knowledge-based Canadian economy.

Innovation

In order to maintain our high standard of living and remain competitive in the global, knowledge-based economy, Canadians must innovate; we must expand our knowledge and ability to do new things, and to do old things in better ways. We must encourage and support innovation in all parts of Canadian society. Industry Canada's commitment to improving Canada's innovation performance has been demonstrated through a number of initiatives.

In March 1996, following an extensive Science and Technology Review, the government released: Science and Technology for the New Century: A Federal Strategy. Along with its Industry Portfolio partners, the department contributed to the development of the Industry Portfolio S&T; Action Plan, which was launched simultaneously with the Strategy.

Industry Canada also helped to launch the Prime Minister's Advisory Council on Science and Technology (ACST) chaired by the Minister of Industry. In 1998, Industry Canada also provided support to the ACST for the creation of its first two expert panels, one on skills and the other on the commercialization of university research. In 1999, the ACST established an expert panel on Canada's Role in International Science and Technology.

Technology Partnerships Canada (TPC) was launched in March of 1996. As of October 2000, TPC's portfolio includes 113 investments totalling $1.2 billion, which will leverage $5 billion in innovation spending. TPC investments, if successful, are forecasted to create or maintain 22,760 jobs. TPC has collected $19.7 million in recoveries and repayments for reinvestment into its fund. Direct TPC investments in small and medium-sized enterprise (SME) projects account for 27 percent of total TPC funding.

1997 saw the creation of the Canada Foundation for Innovation (CFI) with a mandate to help renew research infrastructure in Canadian universities, colleges, hospitals, and other not-for-profit research institutions working in the areas of health, environment, science, and engineering. Endowed with an initial budget of $800 million, the government invested an additional $200 million in the CFI as part of Budget 1999, $900 million as part of Budget 2000, and an additional $500 million in the October 2000 mini budget. The total endowment to date is $2.4 billion. As of October 2000 the CFI has approved a total of $847 million of expenditures for a total of 1011 projects.

Also in 1997, the Networks of Centres of Excellence (NCE) program was made permanent with an annual budget of $47.4 million. This allowed the NCE program to continue funding 11 highly successful networks, create three new NCEs in other fields of crucial importance to Canadians in 1998, and one more in 1999. In 1998, the NCEs had research taking place in 36 communities and nine provinces in Canada. In 1997-1998, a total of 463 companies, more than 100 provincial and federal government departments and agencies, 44 hospitals, 61 universities, and more than 200 other organizations from Canada and abroad were involved in the NCE program. Their success is demonstrated by the 43 spin-off companies created, the 138 patents filed, the 29 licences granted to industry for commercial applications, and the 47 additional licences under negotiations in 1998. The 1999 Budget increased funding for the NCE program by $90 million over three years, bringing total annual funding to $77.4 million starting in 1999-2000. In February 2000, an additional three new NCEs were announced.

Budget 2000 committed $900 million to support the establishment of 2,000 Canada Research Chairs. These chairs will help Canadian universities create outstanding research opportunities that will attract and retain the research stars of today and tomorrow. The program's management is overseen by the presidents of the CFI and the federal granting councils, and the Deputy Minister of Industry Canada or his alternate.

In accordance with its objectives to support SMEs, Industry Canada's Communications Research Centre (CRC) launched the Technology Incubator initiative, which allows SMEs and start-up companies to reside at the CRC for a limited time to access CRC's expertise, technologies and unique facilities. The CRC also launched the Broadband Applications and Demonstration Laboratory (BADLAB) to further the rapid development of Canada's information highway.

In April 1998, the Council of Science and Technology Advisors (CSTA) was created to provide the Government of Canada with external expert advice on government-wide internal science and technology issues. In response to the CSTA's first report, on the use of science advice in government, a new Framework for Science and Technology Advice: Principles and Guidelines for the Effective Use of Science and Technology Advice in Government Decision Making was developed.

From 1994 to March 1998, the federal government played a successful role in the development of the Canadian environmental technologies sector through the establishment and implementation of the Canadian Environment Industry Strategy (CEIS). This series of initiatives aimed at introducing Canadian firms to key foreign markets through highly targeted activities in four categories:

1. delivering federal government support to industry in a direct, easily accessible, service-oriented and cost effective way;



2. supporting the development and commercialization of innovative environmental technologies;



3. improving access to domestic and global environmental markets for Canadian companies; and



4. building partnerships with the Canadian environment industry.

Implementation of CEIS was primarily the responsibility of Industry Canada and Environment Canada.

Industry Canada played a lead coordinating role in 1998 in bringing together some 22 departments and agencies to deliver a renewed Canadian Biotechnology Strategy for the Government of Canada. In September, 1999, 21 members were appointed to the Canadian Biotechnology Advisory Committee (CBAC) which was established to advise Ministers, raise public awareness and engage Canadians in an open and transparent dialogue on biotechnology matters. On February 21, 2000, CBAC released its work plan for 2000-2001. The 1999 federal budget built upon federal investments in biotechnology with an additional $55 million over three years for biotechnology research and development by science-based departments and agencies. Budget 2000 provided $90 million over three years to improve Canada's biotechnology regulatory system, and $160 million to fund the activities of Genome Canada, a new organization that will spearhead a national effort to make Canada a world leader in genomics research and development.

On December 10, 1997, Industry Canada tabled its Sustainable Development Strategy in the House of Commons, following consultations with industry, consumers, environmental groups and other stakeholders. The strategy integrates the concepts of sustainable development into the five business lines of the department through 27 action items, 12 of which have been completed.

Industry Canada supported the National Research Council in the development and launch of the Canadian Technology Network (CTN) on August 5, 1994. CTN helps small and medium-sized businesses to acquire, adapt, commercialize and manage new and complex technologies in partnership with the Canadian research community.

Four technology road maps have been completed, in the areas of geomatics, aerospace, wood-based panels and forest operations.

April 1998 saw the official inauguration of the Sudbury Neutrino Observatory as part of a worldwide effort to understand neutrinos and their emission from our sun.

The Micro-Economic Policy Analysis Branch (MEPA) has provided information, analysis and economic policy advice to the policy development process of Industry Canada and the government. Since 1993, MEPA has published nine research volumes covering the proceedings of major conferences in areas as diverse as Canadian-based multinationals, corporate decision making, knowledge-based growth, the Asia-Pacific region, the functioning of Canadian capital markets, and the application of competition policy vis-à-vis intellectual property rights. In addition, the Branch has published some 32 analytical Working Papers, 23 specialized Occasional Papers, nine policy Discussion papers, 11 papers on a series studying Canada in the 21st Century, and six papers in a series of Perspectives on North American Free Trade. The Branch also publishes several other periodicals on a regular basis including MICRO, the Monthly Economic Indicators (MEI), the Monthly Trade Bulletin, the Micro-Economic Monitor (MEM), and the Trade and Investment Monitor. In addition, the Branch has produced a large number of briefs and decks, which can be easily read by senior policy analysts, policy makers, media and the general public.

Connectedness

Businesses and consumers must adapt to a more competitive global environment where success depends on the development, acquisition and use of knowledge. Connecting businesses and citizens to the Information Highway, particularly the Internet, plays a central role in helping economies successfully adapt to these new realities.

In order to meet this challenge, the Minister of Industry created the Information Highway Advisory Council (IHAC) in 1994 to seek the views of Canadians engaged in building and using the Information Highway, and to assist the federal government in developing and implementing a strategy for Canada's Information Highway. In May 1995, IHAC released Connection, Community, Content: The Challenge of the Information Highway, a report containing over 300 recommendations and providing valuable input to the government's overall information highway strategy. Their final report, Preparing Canada for a Digital World, was released in September 1997, outlining the Council's findings in the areas of access, the Internet, Canadian content, employment and economic growth, and lifelong learning and the workplace.

In the 1997 Speech from the Throne, the government announced its commitment to make Canada the most connected country in the world — the Connecting Canadians initiative. Industry Canada activities and programs support each of the initiative's pillars: Canada On-line; Smart Communities; Canadian Content On-line; Electronic Commerce; Canadian Governments On-line; and Connecting Canada to the World.

On March 30, 1999, through the efforts of Canada's SchoolNet — a partnership of federal, provincial and territorial governments, education associations and the private sector — Canada became the first nation in the world to connect its public schools and libraries to the Information Highway. SchoolNet continues to work with its partners to extend connectivity from schools to the classroom by March 31, 2001, to bring the benefits of the Information Highway to Canadian learners.

Since its inception in 1993, the Computers for Schools program has delivered over 230,000 surplus computers to Canadian schools and libraries. By the end of fiscal year 2000, the goal is to deliver 250,000 computers — the equivalent of one for every classroom in the country. CFS computers are distributed to schools with the greatest needs, helping to ensure equity of access to essential technology across Canada.

The Community Access Program (CAP) is designed to help accelerate public access to the Internet throughout the country. The Program, launched in December 1995, is nearing completion in rural and remote areas where it will have helped establish more than 5,000 public Internet access centres by March 31, 2001. The urban CAP program, which targets municipalities with populations greater than 50,000, was launched in December 1999. To date, CAP has helped create over 7,000 public Internet access centres. The program is managed in partnership with other levels of government, the private sector and community organizations.

Since its launch in 1996, over 3,200 young people have been hired under the Student Connection program, and have provided Internet, Y2K and e-commerce training to over 80,000 Canadian business people.

The 1998 Budget provided funding for the creation of the Voluntary Sector Network Support Program (VolNet). This program is designed to link voluntary and charitable organizations to the Internet and to each other. VolNet will offer connectivity to 10,000 voluntary sector organizations by March 31, 2001 — enabling this key sector to participate more fully in the knowledge based economy. As of October 2000, there were 7,140 participating organizations.

In 1993, the CANARIE partnership was formed to accelerate the introduction of high-speed networks to Canada.

• CANARIE has helped to upgrade Canada's research and education Internet backbone, the CA*net, by increasing the network's capacity over 400 times between 1993 and 1997.



• In April 1994, CANARIE established the National Test Network (NTN) to help industry, universities, hospitals and government research institutions work together to explore new technologies, test hardware and software, and develop new service capabilities.



• In June 1997, CANARIE launched a new advanced networking initiative called the CA*net 2.



• The Applications and Technology program has involved over 500 companies and has created over 2,250 well paying, high-tech jobs since 1995.



• In October of 1997, CANARIE's Pilot Project for Aboriginal Networking awarded $1.25 million to further accelerate the development of network-based products and services by Canada's aboriginal communities.



• CANARIE recently built the National Optical Network CA*net 3, the world's first nation-wide Internet built directly around wave-division multiplexing technology.

In 1998, the Prime Minister announced the Smart Communities Blue Ribbon Panel to advise the government on how information technology can transform community economic and social development.

Following the panel's report on Smart Communities, which provided recommendations for achieving the Prime Minister's goal of creating one world-class Smart Communities project in each province, the North and an Aboriginal community, the Minister of Industry launched a nationwide competition to establish Smart Communities Demonstration Projects. The 12 selected demonstration projects were announced on May 11, 2000. These communities will become world leaders in the integration of information and communication technologies into community life — in areas such as health care, education, training and business.

The Smart Communities program was supported in the 1999 federal budget, with the announcement of $60 million in funding over three years.

Canada's Digital Collections (CDC) program has approved over 500 projects to digitize Canada's information resources, providing open access through the Internet. The program has given over 2,600 young Canadians, aged 15 to 30, entrepreneurial and technology-based experience.

The Francommunautés virtuelles program, launched in 1998-99, has contributed to the cost of 74 projects across Canada to increase French language content, services and applications on the Internet and promote use of these facilities.

The Task Force on Electronic Commerce was created in 1997, and was followed on September 22, 1998, by the unveiling of the Canadian Electronic Commerce Strategy and the identification of "seven firsts" for Canada to achieve: a policy on encryption technology; a framework for public key infrastructure; guidelines for consumer protection; a basis in law for electronic signatures; a taxation regime that treats virtual and physical transactions equally; privacy legislation to protect personal information; and a Canadian standards road map for electronic commerce to ensure the interoperability of networks and applications.

Canada hosted an OECD Ministerial Conference on Electronic Commerce in Ottawa, October 7-9, 1998. This was the first OECD ministerial conference ever held in Canada and the first to include senior representatives from business, labour, social interest groups and observer countries, in addition to the 29 members of the OECD. Since the conference Canada has been working with the OECD on follow-up activities and continues to use other international fora to promote the global development of electronic commerce.

The Electronic Commerce Market Growth and Business Development Strategy was developed, through the Industry Portfolio, to accelerate the development and use of electronic commerce in Canada. The Industry Portfolio Electronic Commerce Working Group was formed to encourage coordination of ecom activities throughout the Industry Portfolio, including the regional agencies, the Business Development Bank, and the National Research Council (IRAP). Working with this group, the Electronic Commerce Task Force developed information products for use in awareness activities to the business community.

Reiterating its commitment to be a leader in the development and use of advanced information and communications technologies, the federal government made a commitment in the 1999 Speech from the Throne — become the government most connected to its citizens. The goal is to provide on-line access to all federal government information and services at the time and place of Canadians' choosing by 2004. Industry Canada has already taken many steps to make its resources available on-line.

On March 27, 1996, Prime Minister Chrétien and Minister Manley launched Canada's most comprehensive business and consumer website, Industry Canada's Strategis. Strategis gives business direct access via the Internet to the latest information on specific industries, export opportunities, company capabilities, international intelligence and business contacts, new technologies and processes, management experts, market services, government programs, micro-economic research and much more. By October 2000, Strategis contained 2 million electronic documents and, on average, received between 28,000 and 30,000 visits each business day. Since its launch, there have been over 16.6 million visits to Strategis with more than 117 million documents accessed.

The Canadian Consumer Information Gateway, launched in June 2000, provides a single, comprehensive, multi-agency information Internet portal to improve public access to all government consumer information and services.

The on-line service ExportSource was launched jointly by Industry Canada, the Department of Foreign Affairs and International Trade and Agriculture and Agri-Food Canada. ExportSource is a major Team Canada Inc tool and gives businesses one resource for information on market research, export financing, export regulations/logistics, trade statistics, export contacts, as well as trade shows and missions. ExportSource won Gold at the Distinction '97 for Strategic Directions (Building Partnerships, Interdepartmental Partnerships category).

Campus WorkLink, Canada's largest and most accessed online career and recruitment Internet site for university and college students and recent graduates, and part of SkillNet.ca's network of recruitment systems, was launched in March 1999. Campus WorkLink won the gold medal from the 1999 Government and Technology Conference (GTEC) for improving services delivery to Canadian citizens and business.

Partly due to the success of Campus WorkLink, a number of sector councils and associations approached Industry Canada to design similar systems for their industries. Today, there are seven such systems, all built on the same technology as Campus WorkLink. They are housed within a portal site and promoted under the umbrella of SkillNet.ca: The Career and Recruitment Network, and include university and college students, nurses, teachers, arts and culture, the volunteer sector, tourism and aviation maintenance. SkillNet.ca currently has more than 250,000 registered job seekers and 45,000 employers, and receives 2.15 million page requests each month.

The Canadian Intellectual Property Office (CIPO) established as a Special Operating Agency in 1992, received its revolving fund in 1994. CIPO's focus has been on the intellectual property client through the provision of timely and quality services. Several innovative initiatives have been undertaken including:

• the world's first end-to-end electronic patent processing system, TechSource, in 1997
• the launch on-line of the Canadian Trade-mark Database in early 1998
• the launch of the Canadian Patent Database in late 1998
• the launch of electronic filing for trade-mark applications in 1999

As part of the 1997 Small Business Week, the Minister launched three new sites on Strategis for small businesses.

• $ources of Financing allows small business to access information on traditional and alternative sources of financing;
• Steps to Growth Capital helps growth-oriented firms prepare to find investors and close a deal;
• Steps to Competitiveness provides on-line assistance to identify business concerns.

The SME Financial Service Charges Calculator, launched in 1999, helps small businesses compare the monthly cost of most business accounts offered by the major financial institutions in Canada. The Calculator is based on an interactive questionnaire to allow users to enter their individual financial service use profile and compare the relative cost of 56 different small business accounts.

Performance Plus, an online tool for small businesses that was launched in 1999, provides detailed financial and employment data on small businesses by industry sector at the national and provincial/territorial level. The data provide performance benchmarks for the financial planning of start-up and established small and medium sized businesses.

The Financial Service Charges Calculator, a ground-breaking Internet consumer information product launched in December of 1997, offers Canadian consumers the chance to compare their banking service charges with those of other financial institutions.

In 1997, the Office of Consumers Affairs (OCA) launched the Credit Card Costs Calculator and the Consumer Help Desk on the Strategis website. The products were created by the OCA to provide an interactive way for consumers to comparison shop for credit cards, and to help consumers to find the organization or agency best-suited to address a complaint or inquiry on a wide range of goods and services.

In 1998, the Investment Review Division (IRD) introduced a secure electronic submission process that is recognized as the first government system in the world to integrate an objective level encryption application to submit sensitive information over the Internet. The IRD also introduced the full implementation of public infrastructure key. For the first time, true archival digital signatures were placed on electronic documents by the private sector and accepted by the public sector. The use of sophisticated encryption technology to securely transmit documents has resulted in tangible benefits for all. Users benefit through improved security, reduced paper flow and overhead as well as increased efficiency. The IRD benefits by providing more effective service to clients, while saving time and money. For their efforts, the IRD was awarded a medal at the GTEC Distinction '98 Awards gala.

The government launched Services 2000, on February 17, 1999, providing information on international trade agreements affecting Canadian services industries. It was joined by a new website on international investment policy, which offers information on international investment news and negotiations, and seeks comments from Canadians on investment policy issues.

Environmental Industry Virtual Offices were opened across the country in 1996 and 1997, providing single-window access via the Internet to environmental experts and other major sources of strategic business information for the environmental industry.

The Canadian Business Environmental Performance Office (BEPO) was launched in 1997 to provide easy one-stop access for business, particularly small business, to environmental performance information and experts via the Internet.

The Canadian Business Map website was launched on Strategis on November 12, 1997, giving users access to business information resources from the federal government, provincial and territorial governments and municipalities via the Internet.

In 1995, at the G7 Information Society Conference in Brussels, it was announced that a series of pilot projects would be launched to stimulate the development of the information infrastructure, share experiences on emerging applications and increase public awareness of their benefits. Canada was chosen to lead or co-lead on projects under four theme areas: Global Interoperability for Broadband Networks; Global Emergency Management; Maritime Information Systems; and, Government On-line.

The Office of International Partnerships (OIP) was established to provide a single point of access to the best of Canada's information communication technology skills and products for any country or foreign organization seeking to build their own electronic learning network. OIP links foreign governments, agencies and companies with Canadian companies, organizations and entrepreneurs who develop and apply information and communications technologies to learning and training. OIP also helps Canadian organizations and individuals identify opportunities for partnerships and alliances in global markets. OIP has entered into agreements at public and private sector levels with organizations in Argentina, Brazil, Chile, Colombia, China, India, Italy, Kuwait, Mexico, Singapore, South Africa, Trinidad & Tobago and the United Kingdom. It is also pursuing and developing new strategic alliances with other potential partners in Europe, Latin America and Asia.

Since 1998, NetCorps Canada International has helped share Canada's experience in using information technology for social and economic development with developing nations, and has created exciting opportunities for young Canadians in the process. NetCorps provides information and communications technology internships to young Canadians between the ages of 19 and 30. The program succeeded in sending 255 youth abroad in 1999-2000, and will continue to offer internship opportunities to 255 youth per year for the next two years.

Industry Canada participates in international discussions with the OECD and Asia-Pacific Economic Cooperation (APEC), among others, to encourage the harmonization of policy approaches to privacy and authentication; and work through other key international organizations on issues related to electronic commerce and connectivity, such as international standards for interoperability.

A fair, efficient and competitive marketplace is an essential foundation for investment, innovation, trade and economic growth, benefiting both producers and consumers. It provides the stability and efficiency required to conduct business, while maintaining consumer confidence in the products, services and transactions of the marketplace. In order for Canada to become the location of choice for investment, to make innovation its strength and to remain a nation of traders, it needs marketplace laws and services that compare favourably with those of other countries.

Amendments to the Copyright Act were adopted by the House of Commons in March 1997. The amendments were designed to modernize legislation and strengthen Canada's cultural industries.

In March of 1998, the government approved new regulations aimed at improving Canada's regulatory framework for drug patent policy. In October 1999, the regulations were further amended to clarify their application. The changes reaffirmed and strengthened the underlying principle that the need for effective enforcement of patent rights must be balanced by the benefits of having generic drugs reach the market as soon as possible upon patent expiry.

The establishment of the Office of the Superintendent of Bankruptcy (OSB) as a provisional Special Operating Agency was announced on February 17, 1997. The Bankruptcy Office focussed on quality of services and accountability for attaining measurable results.

• An agreement to establish a one-stream licensing process through a new National Insolvency Qualification Program (NIQP) was announced by the Office of the Superintendent of Bankruptcy and the Canadian Insolvency Practitioner's Association. Through the agreement, the NIQP became the national admissions office for all individuals wanting to enter the program to become licensed bankruptcy trustees.



• New legislation governing bankruptcy and insolvency came into force on September 30, 1997. The legislation promotes the need for responsible action by insolvent debtors, while offering realistic and humane solutions that allow individuals and their families to put some order in their financial affairs and to benefit from a legitimate rehabilitation. It also contributes to the preservation of businesses and the jobs they create.



• The OSB established an external management board to provide advice on its business plans, its objectives and its strategies for implementation.

In 1995, the Minister of Industry on behalf of the Government of Canada signed the Canada-US Competition Policy Agreement which established a framework for closer bilateral relations on enforcement matters.

Prison terms were imposed for individuals convicted in 1996 of price-fixing and in a separate case in 1999 for deceptive telemarketing.

On October 20, 1997, the Competition Bureau introduced a fee and standards regime aimed at making the Bureau's services more efficient. Companies and individuals paying the fees benefit from more informative reviews and opinions and, in most instances, quicker turn-around times.

In 1998, the proposed bank mergers involving four of Canada's chartered banks were the largest and the most complex merger transactions ever reviewed in the history of Canadian competition law. Prior to examining the proposed mergers, the Competition Bureau invited more than 600 people to comment on specially designed Merger Enforcement Guidelines for Financial Institutions and the resulting procedures were strictly adhered to in the review.

For the first time, in 1998, the Competition Bureau collected evidence and prosecuted a firm for an Internet-related offence under the multi-level marketing provisions of the Competition Act.

The largest ever fine — $16 million — for any offence under the Competition Act was imposed in 1998 for a price-fixing and market sharing.

A decision in 1998 by Petro-Canada and Ultramar to abandon merger plans helped preserve competition for independent gas retailers and consumers in Eastern Canada and was a direct result of serious Competition Bureau concerns.

Changes to the Competition Act came into force on March 18, 1999, giving the Competition Bureau new powers to use in the investigation of scam artists who use the telephone to exploit the trust of unsuspecting consumers. Provisions making deceptive telemarketing a new criminal offence and allowing the Bureau to use wiretapping to investigate phone fraud are the centrepiece of the changes. They include a number of changes that clarify competition law, streamline legal processes and give the courts more flexibility in dealing with anti-competitive conduct.

Amendments to the notifiable transactions provisions of the Competition Act and related amendments to the Regulations came into force on December 17, 1999. These changes reduce the regulatory burden on businesses by providing an exemption for asset securitization transactions, which do not generally raise any competition concerns. They also improve and speed up the merger review process by ensuring the Bureau receives better information to assess proposed transactions.

The Commissioner of Competition was given new powers to issue temporary cease and desist orders, exclusive to the airline industry, as part of several amendments to the Competition Act under Bill C-26. The legislation received Royal Assent on June 29, 2000 and came into force on July 5, 2000. The Commissioner of Competition issued a temporary order for the first time on October 12, 2000 in response to a complaint of anti-competitive conduct by Air Canada.

Measurement Canada became a full Special Operating Agency (SOA) on April 15, 1999. SOA status strengthened Measurement Canada's ability to focus on client expectations with an emphasis on service, quality and bottom line results. Several innovative initiatives have been developed, such as accrediting private sector companies to deliver statutory services on behalf of Measurement Canada, and an intervention model to provide an objective basis for determining the level of intervention required by Measurement Canada in trade sectors where measurement plays an important role.

Measurement Canada has also instituted the Canadian Forum on Trade Measurement (CFTM) which brings together members of the private sector and Measurement Canada for the development of policies, requirements and procedures which flow from the Weights and Measures Act and Regulations and Regulations, the Electricity and Gas Inspection Act and Regulations as well as Measurement Canada's Accreditation Program.

In 1997, new regulations adopted under the Canada Business Corporations Act reduced the number of filings public CBCA companies have to make to different governmental organizations. The changes ensured that the public and regulators have access to necessary information, without burdening federally incorporated public companies with any unnecessary filing requirements.

A new Canada Cooperatives Act was adopted by the House of Commons in 1998 and came into force in 1999 to provide a modern legislative framework for the incorporation of non-financial cooperatives at the federal level.

Electronic filing was introduced in 1999 following amendments to the Regulations under the CBCA. In addition to the traditional methods of filing, clients may now file by fax, e-mail as well as online through our Strategis website.

The federal, provincial and territorial ministers responsible for consumer affairs met in Charlottetown on November 13, 1998. It was the third meeting in as many years as the ministers continued to improve protection for consumers on several fronts. They approved a Cooperative Enforcement Agreement on Consumer-Related Measures. They also launched an information sharing network for enforcement agencies, Canshare, and announced public information campaigns on deceptive telemarketing and loan brokers' scams. Ministers also took stock of progress made in harmonizing cost of credit disclosure rules. In their discussion on electronic commerce, ministers agreed to work together to improve consumer information and protection in a borderless marketplace.

The Office of Consumer Affairs released its first Financial Service Charges Annual Report in February 1999. The Report provides Canadians with accurate public information on trends in financial service charges at Canadian banks and financial institutions. The Report benchmarks the cost of service charges on an annual basis, and identifies which institutions' service charges are going up, which are going down and shows which aspects of banking are rising or falling in price.

On March 31, 1999, on behalf of federal, provincial and territorial ministers responsible for consumer affairs, Minister Manley announced the release of the Canadian Consumer Handbook. The Handbook is a guide to help consumers deal with everything from how to effectively lodge a complaint, to who they can contact for information and advice.

Amendments to the Standards Council of Canada Act were passed in 1996 to modernize the organization and make the Council leaner, more efficient and more accountable. Initiatives to strengthen Canada's National Standards System were implemented beginning in April 1996.

Amendments to the Lobbyists Registration Act came into effect on January 31, 1996. The changes established more meaningful and comprehensive information disclosure requirements for all lobbyists approaching the federal government and strengthened compliance and enforcement measures.

The Lobbyists' Code of Conduct came into effect on March 1, 1997, establishing standards of conduct for all lobbyists communicating with federal public office holders. The Code reinforces the Lobbyists Registration Act, under which lobbyists must disclose information about their activities and objectives, which agencies are involved, and the beneficiaries of their efforts.

Industry Canada has been an important contributor to the development of a competitive environment in which Canadian firms can be innovative and create wealth and jobs for all Canadians.

The government's convergence policy was announced in October 1994. The policy established the framework for competition between the telecommunications and cable TV industries in their respective core markets. Implementation principles were announced in 1996 to ensure fair competition while promoting continued support for Canadian broadcast programming.

In November 1994, Industry Canada adopted a policy enabling multinational consortia to offer mobile satellite services to Canadians through regional and global satellite systems. In 1996, after two decades of research, planning and development, the Mobile Satellite (MSAT) network became commercially available, providing remote and mobile users access to telecommunications services.

On June 15, 1995, the Minister announced a Canadian policy for the introduction of Personal Communications Services (PCS). This was followed in December of the same year by licences awarded to four companies to provide PCS services.

The review of Rate Rebalancing in 1995 encouraged the development of a more dynamic and competitive telecommunications market — one of the key objectives, of the government's information highway strategy.

In July of 1995, the government issued a Policy Direction to the CRTC on licensed Canadian direct-to-home satellite services, establishing a policy framework which supports competition, Canadian programming and greater choice for consumers.

In June of 1996, Canada published the world's first Digital Radio Broadcasting allotment plan, providing the opportunity for a digital allotment for every AM and FM station in Canada. Digital Radio negotiations with the U.S. were completed and an Agreement was reached at the end of August 1998 which provides for every AM and FM station a digital channel on which it can operate without interference.

The Minister announced a Local Multipoint Communication Systems (LMCS) policy in February 1996, and awarded two national and one regional LMCS licences in October of that year.

A comprehensive, flexible set of new Radiocommunications Regulations designed to better manage the development of spectrum resources was introduced on November 27, 1996, after extensive consultation with both the radiocommunication industry and users. Industry Canada was later successful in further consultations with the aeronautical, maritime and amateur communities and other stakeholders who supported exempting from licensing certain aircraft, ship and amateur stations. Amendments to the Radiocommunication Regulations that came into effect April 1, 1999 and 2000 significantly reduced the regulatory paper burden by eliminating the need to annually issue over 100,000 licences for the operation of these stations.

On November 25, 1997, Canada adopted a Digital Television Standard that will allow television broadcasters to distribute complex data and new services currently under development. The adoption of this standard will converge television content with the vast possibilities of the Information Highway and makes Canada compatible with the rest of North America in program transmission and production.

An amendment to the Bell Canada Act received Royal Assent in February 1997, permitting Bell Canada to hold a broadcasting license. The amendment ended a prohibition dating back to 1968, and followed upon the government's 1996 Convergence Policy Statement which cleared the way for cable and telephone companies to compete in each other's core businesses.

Industry Canada awarded Telesat Canada one of Canada's prime Direct Broadcast Satellite orbital slots on April 3, 1997. The licensing was the culmination of a process initiated in November 1996, which was designed to find a Canadian solution to the lack of DBS/DTH satellite capacity.

Two additional mobile satellite network service providers were approved to serve Canadians (Iridium Canada and Stratus Mobile). With TMI communications and OrbComm Canada, there are now four licensed service providers using regional or global mobile satellite systems doing business in Canada.

In 1997, Minister Manley gave his approval in principle for Telesat Canada to replace its two aging Anik E satellites with two Anik F satellites. The new satellites will ensure the continuity of services to Telesat customers in all regions of Canada, including the North. The Minister also announced that, after March 1, 2000, two of the four Canadian orbital positions will be available, subject to a competitive process.

The creation of the Distributed Wireless Testbed at the Communications Research Centre was announced in November 1997. The testbed conducts research and development on wireless transmission of voice, video and data communications and their connections with broadband networks.

In 1997, Industry Canada launched a website on Strategis offering information to help tackle the Year 2000 challenge. This initiative was followed by the creation of Task Force Year 2000, with a mandate to ensure that Canadian businesses have the information they need to be ready for the next millennium. In February of 1999, the government launched a national Year 2000 Preparedness Week (Feb. 8-12) to further educate Canadians on the Year 2000 challenge and the importance of millennium-readiness. The Millennium Bug Home Check, a guide answering many frequently asked consumer-related Y2K questions, was distributed to 11.7 million Canadian homes.

In August 1998, following extensive research and public consultations, Industry Canada's Spectrum Management Program released the Framework for Spectrum Auctions paper, which established the approach that is used to assign spectrum through a competitive bidding process. Auctioning is a fast, efficient, open and fair means of assigning spectrum and represents the best method of allocating spectrum to those who value it most. In November 1999, the Minister announced the licence winners for broadband wireless spectrum in Canada's first spectrum auction. The auction was conducted securely over the Internet employing Canadian public key infrastructure (PKI) encryption and digital signature technologies to ensure the bids' confidentiality and authenticity. It represents one of the largest business to government electronic commerce transactions ever to have taken place over the Internet, with bids exceeding $171 million.

In October of 1998, an agreement was reached with the Government of Saskatchewan to bring SaskTel under CRTC regulatory authority effective in June 2000. This will effectively create a unified national telecommunications market.

In 1998, in order to implement Canada's commitments under the Fourth Protocol to the WTO General Agreement on Trade in Services, Industry Canada developed legislation, regulations, policies and international agreements that resulted in the complete liberalization of the market for international telecommunications including: new International Submarine Cable Landing Regulations; the end of Teleglobe's monopoly for overseas telecommunications; the end of Telesat's monopoly for fixed satellite services in Canada and for the Canada-U.S. traffic on March 1, 2000 without a transition period; the opening of licensing policy regimes reflecting an open market for mobile and fixed satellite services, enabled access to Intelsat satellites by Canadian users and carriers; the removal of Canadian ownership requirements for earth stations and overseas cable; and, Bill C-17 — An Act to amend the Telecommunications Act and the Teleglobe Canada Reorganization and Divestiture Act.

A new Cryptography Policy for Canada was announced on October 1, 1998. The policy allows Canadians to develop, import and use encryption products and does not impose mandatory key recovery requirements or a licensing regime. Cryptography allows users to authenticate credit card numbers, electronically signed documents, e-mail or other information stored in computers or transmitted over networks such as the Internet.

Industry Canada announced the licencing of Multipoint Communication Systems (MCS) in March 2000. Successful applicants were required to demonstrate plans to provide commercially viable telecommunications service while also supporting local learning needs. Licensees committed to providing wireless high-speed Internet services across Canada within three years of implementation.

The Personal Information Protection and Electronic Documents Act was passed into law on April 13, 2000. The Act includes measures to protect personal information in the private sector, creates an electronic alternative for doing business with the federal government and clarifies how the courts assess the reliability of electronic records used as evidence. It is aimed at recreating in cyberspace the same expectations of trust, confidence and reliability that now exist in everyday commerce.

On June 28, 2000, the Minister announced the framework for the auction of additional spectrum for Personal Communications Services (PCS). Access to this spectrum will allow companies to meet existing demands and set the stage for the introduction of advanced wireless services such as third generation PCS.

In October 2000, the Minister of Industry announced the creation of a National Broadband Task Force. The mandate of the Task Force is to advise the Government of Canada on how best to make high-speed broadband Internet services available to businesses and residents in all Canadian communities by 2004.

Industry Canada is a key player during times of emergency when telecommunications are essential.

A mutual-aid agreement between Canada and the United States in emergency telecommunications was put into operational effect in December 1995 when severe storms in Oregon and Washington caused a major telecommunications breakdown. Within 72 hours, Industry Canada coordinated the border-crossing of 43 Canadian splicers from BC Tel and AGT to repair damaged networks. A larger-scale operation occurred in January 1997 after severe flooding in California. Telus, MTS and Bell sent 325 workers and more than 300 trucks to California for a three month period to rebuild the telephone network.

In 1996 Industry Canada developed an interactive and encrypted website to collect and update essential telephone numbers needed in times of emergency. The site is now serving seven of the ten provinces and allows 5,000 municipalities to directly identify and update their essential telephone numbers.

In July 1996, a flash flood caused overall losses exceeding $625 million in Saguenay, Quebec. Industry Canada did facilitate and expedite the authorization process for the operation of telecommunication equipment as required by the federal, provincial and municipal authorities. The telephone networks were overloaded and the carriers applied the priority access and priority restoration programs managed in collaboration with Industry Canada.

During the Manitoba Flood in May 1997 the Department played a consultative role to communications users, authorizing additional frequencies for essential telecommunications networks, including many frequencies for the military. The Manitoba District Office arranged for cellular service providers to increase their channel capacity and microwave links and to relocate the stations that were in danger.

The NATO Civil Mutual Aid website was developed in March 1997 by Industry Canada's Emergency Telecommunications Team in collaboration with the Pacific Region and Simon Fraser University. This website was developed and is operated by Industry Canada at NATO's request, to promote mutual aid activities between NATO and Partnership for Peace Nations (Eastern Europe).

Industry Canada played an important role in responding to Ice Storm 1998. Throughout the state of emergency, Industry Canada, along with other federal departments, provincial authorities and the telecommunications industry, contributed to the support of telecommunication operations and to the maintenance of its infrastructure. Industry Canada continued to work with businesses after the emergency to facilitate recovery from damages caused by the storm.

Industry Canada played a vital role in crisis management during the Swissair disaster near Peggy's Cove, Nova Scotia in September 1998. The Atlantic Region Spectrum Management Team responded to the immediate increase in telecommunication traffic by monitoring the situation to ensure interference-free operation of all emergency telecommunications. Industry Canada also supported the local telecommunications carriers and cellular providers to increase the network capacity.

Improving the conditions that lead to increased business investment in Canada by both foreign and domestic sources contributes strongly to jobs and economic growth, helping us maintain Canada's top ranked quality of life. Foreign direct investment also has far-reaching economic benefits such as increased trade flows, broadened access to innovative new technologies, management techniques and global capital.

Investment Partnerships Canada (IPC), a joint initiative of Industry Canada and DFAIT, was launched in October 1996 to act as the investment focal point for the federal government, working with the Canadian posts abroad to develop and coordinate targeted campaigns to attract and retain key MNE investment for Canada.

Seven Deputy Ministers advise IPC through a formal committee and act as individual investment champions for targeted markets and horizontal issues including border, regulatory, labour market and Branding Canada priorities.

In addition to managing the DM investment champion program and priority targets, IPC draws on domestic industry expertise, provides provincial and municipal outreach services and coordinates national marketing and communications initiatives such as the http://www.investincanada.gc.ca/ website.

Investments by companies such as Astra, Ericsson, Stora, Dow Chemical, Bayer Merck Frosst, Alcatel, Daimler Chrysler and others have reflected efforts to encourage investment and are testament to Canada's potential as a location of choice for business.

In addition to Industry Canada's contribution toward attracting and retaining foreign investment, the department has worked to improve SME access to capital and information, while improving economic development for targeted groups and regions.

Canada Business Service Centres (CBSC) have served as models of service delivery. From three early pilot projects in 1992/93, the program has developed into a well established network of 13 CBSCs, including the most recent addition of a centre for Nunavut in March 2000. The CBSCs operate in unique cost-sharing partnerships with provinces, territories and other partners. Since 1994, the number of federal partners has grown from 16 to 36.

In 1997/98, the CBSCs developed an extended network of over 250 regional access partners. In 1998, the Centres launched the toll-free export information service on behalf of Team Canada Inc. In 1999, the network of CBSCs received the Head of the Public Service Award for the "excellence in service delivery" category. CBSCs have developed a suite of client-driven products and services built on a comprehensive government-wide inventory of business programs, services and regulations. Among the most popular are: InfoGuides on key business topics like business start-up, employment and training, and electronic commerce; and the Interactive Business Planner (IBP), a first in bilingual interactive business planning software on the web.

SME Conferences and Info-Fairs have been held across the country to inform small businesses of the many government programs and services available to improve productivity and foster innovation. Over 83,000 people have attended events in 81 cities, towns and villages in every region of Canada since the inaugural event in Regina in November 1996.

In October 1999, Industry Canada and the Canadian Federation of Independent Business co-hosted the 26th International Small Business Congress (ISBC) in Toronto. The congress brought together more than 900 entrepreneurs, educators and policy makers from some 60 countries to discuss the issues and opportunities that face small businesses around the world. ISBC'99 enabled some 400 Canadian entrepreneurs to meet with the their international counterparts and explore opportunities for international partnerships.

On Dec 3, 1996, the department produced Your Guide to Government of Canada Services and Support for Small Business, drawing a wealth of information from across government to assist smaller businesses to grow and prosper. Two more recent editions of the guide have since been published to ensure it provides timely and accurate information.

In March 1996, the Canada Community Investment Plan was launched, helping communities to work with their growth-oriented businesses to access existing local, regional and national sources of risk capital. A total of 22 demonstration projects, scattered from Mount Pearl, NF, to Victoria, B.C., are implementing innovative and creative approaches to facilitate access to equity financing for their growth-oriented small businesses. The best practices developed by these communities will be shared with other Canadian communities and the rest of the world at a conference with OECD participants in June 2001.

A strategy to revitalize FedNor was announced on March 18, 1996, concentrating FedNor activities on strengthening local capabilities to meet the economic development challenges of the region and encouraging the development of high-growth potential small and medium-sized enterprises.

• In 1997, FedNor launched two new programs for small and medium sized businesses: the Northern Ontario Economic Development Fund (NOEDF) and the Business Planning Initiative (BPI). NOEDF is designed to assist communities with projects that are part of local strategies to create employment and economic growth. BPI supports entrepreneurs who require a full and properly developed business plan.



• The 1998 budget recognized the need to promote economic growth, diversification, job creation and sustainable self-reliant communities in Northern Ontario with continued support of $20 million annually. Minister Manley announced further funding of $60 million over three years in June 1999.

Aboriginal Business Canada responds to the changing needs of Aboriginal businesses and contributes to the success of Aboriginal entrepreneurs and communities through the strategic priorities on Youth Entrepreneurship, Innovation, Trade and Market Expansion (including Aboriginal Tourism), and Strengthening Aboriginal Financial Institutions. In the period from 1993–2000, this program has provided authorized assistance of $309 million in over 9,500 projects with a total project cost of $927 million.

The Aboriginal Youth Business Initiative was launched in April 1997, fostering business planning and start-ups among Aboriginal youth in Canada. A preliminary assessment of the overall success and value of this initiative was carried out in 1999/00. Overall, the AYBI has been successful in meeting its main objectives. Specifically, the program has had a positive impact not only by way of developing entrepreneurship skills and self confidence in the client group, but also on broader Aboriginal economic development efforts.

In April 1999 in Kenora, Minister Manley announced a $21 million package of measures designed to improve business development opportunities for Aboriginal peoples in Canada. The Aboriginal Business Development Initiative (ABDI) will improve access to capital, create an Aboriginal Business Services Network and enhance delivery of existing business support programs to Aboriginal entrepreneurs and organizations. The ABDI is a partnership among Aboriginal financial and business organizations and federal organizations, including Aboriginal Business Canada, FedNor and the Industry Portfolio's regional agencies.

The Access to Capital element of the ABDI was launched November 1999 in Edmonton with the participation of other federal government partners and two private sector partners, Peace Hills Trust and the National Aboriginal Capital Corporation Association. To date, $6.6 million has been approved in more than 60 projects involving support and training for Aboriginal financial institutions, interest rate buydown credit lines, and enhanced access to capital applications.

The Canada Small Business Financing Act (CSBFA) was passed in December, 1998, containing measures to address the financing needs of small business; increase program accountability; and continue moving the program toward cost recovery. The CSBFA, which modernizes and replaces the highly successful Small Business Loans Act (SBLA), enabled lending to more than 22,270 small businesses for a total of nearly $1.6 billion in loans in 1998/99. The CSBFA includes provisions for pilot projects to include capital leasing and voluntary sector lending in the program's purview. The goal is to test the validity of Industry Canada's consultations and research in these areas by implementing pilot projects that most accurately reflect the needs of the voluntary sector and the capital leasing industry.

Since the Community Futures program was transferred to the Industry Portfolio in mid-1995, Community Futures Development Corporations (CFDC), known as Community Business Development Corporations in Atlantic Canada (CBDC), have created or maintained more than 75,000 jobs while achieving low default rates for high risk lending. This network of 252 corporations puts economic development in the hands of local leaders who know the opportunities and challenges of growing businesses in their communities. CFDC/CBDC activities include providing micro-lending and counselling to small businesses, and developing strategies and partnerships to promote local economic growth. On May 27, 2000, Minister Manley announced a funding commitment of $90 million for the next five years to the program. This investment will be used to create new CFDCs/CBDCs, increase funding for existing Corporations, and enhance services to communities nationwide.

The approval process of the Canada Ontario Infrastructure Program was completed in 1996-97. The funding of infrastructure activities, such as community centres and road, sewer and water main projects, concluded in March 1999.

Trade

Great potential for creating long-lasting, high-quality jobs results from increasing the number of exporting firms, especially SMEs in all sectors, and from diversifying the markets to which they export. A firm that succeeds globally is also more competitive at home.

Canada's prosperity and its ability to create jobs are directly linked to how well Canada capitalizes on international opportunities. International trade has become an important source of economic growth and job creation for Canada.

Trade Policies

In collaboration with DFAIT, Industry Canada developed and implemented the Team Canada International Business Development Strategy, which focuses on delivering services to increase the number of Canadian exporters and to diversify Canada's export sectors and markets. This Team Canada approach, based on the pillars of National Sector Teams, Regional Trade Networks, Canada's International Business Strategy and the International Business Opportunities Centre, is resulting in targeted sectoral strategies and focussed services to clients.

World Trade Organization (WTO) negotiations on basic telecommunications, financial services, information technology and accountancy served to establish international standards, open new markets, and create export and job opportunities for Canadians.

In June 1994, the Agreement on Internal Trade committed the federal and provincial governments to reduce obstacles to domestic trade and set out rules preventing the creation of new barriers.

Canada's Year of Asia-Pacific (CYAP), in 1997, included initiatives to promote increased business relations, youth involvement and cultural exchanges with the Asia Pacific region. From September 15-19, Minister Manley hosted the 1997 Asia-Pacific Economic Cooperation (APEC) Small and Medium-sized Enterprise Ministerial Meeting, Business Forum and Exposition in Ottawa. At the Week's conclusion, Ministers from 18 economies of APEC agreed on measures to help small and medium-sized enterprises throughout the Asia Pacific region.

A new initiative to improve Canada's success in global Public Private Infrastructure (PPI) markets was launched following a national conference on the subject in September 1998. The objective of this initiative is to brand Canadian capital projects firms in world markets as major players in building infrastructure, particularly in emerging economies. This initiative, strongly supported by a private sector steering committee, sets out to strengthen the policy and business climate for Canadian capital projects firms by: creating more PPI opportunities at home; encouraging greater participation by our financial institutions in PPI; and providing adequate incentives for Canadian firms to undertake the high risk international PPI projects.

Exporting

Industry Canada has been an active participant in the Team Canada initiative, which has included the launch of Team Canada Inc (TCI) in 1997 and Aboriginal Tourism Team Canada in 1998. Industry Canada was one of three founding partners of TCI, which has since grown to include 23 federal departments and agencies that work with the provinces and territories and various other partners to help Canadian companies succeed in world markets. The range of services offered by TCI and its partners includes general information, skills development, export counselling, market entry support, export financing and in-market assistance.

Regional Trade Networks have been established in all regions of the country and Regional Trade Plans have been developed to identify objectives and priorities.

In 1997, the Canadian Technology De-Mining Showcase provided 25 Canadian companies with an opportunity to exhibit products and services that detect, neutralize and clear land mines and provide assistance to land mine victims.

Sectoral Policies

Twenty-seven Sector Competitiveness Frameworks have been published by the department that analyse the structure, performance and prospects for growth of specific industry sectors.

Canadian Environmental Solutions was announced in November 1995 — an award-winning, multimedia information tool available in four languages that provides a compendium of worldwide environmental problems, matched with the products, technologies and services that Canadian companies can deliver to resolve them. In 2000, two special editions were released. The first on climate change solutions and the second on biotechnology solutions for the environment.

The Sustainable Cities Initiative (SCI) targets municipal decision-makers in selected cities from developing countries and economies in transition. It is built around the concept of multi-sectoral (energy, housing, services, telecommunications, transportation, environment, water) and multi-stakeholder City Teams (private sector, government and NGOs) which combine their forces to identify and implement urban development and infrastructure projects using Canadian expertise and technology.

The Automotive Competitiveness Review was released in June 1998, setting the stage for further collaborative work with this industry on R&D;, skills, standards and regulations, and trade.

Tourism

The Canadian Tourism Commission (CTC) was created in January 1995 to expand marketing in domestic and major international markets, in partnership with industry and the provinces. The CTC has made significant progress with the development of shared or coordinated strategic plans, leveraged financing and a marked reversal of Canada's tourism deficit which has dropped dramatically by over $2.2 billion dollars since 1994 to $1.9 billion in 1999. In addition, every region of Canada has experienced significant revenue growth in tourism and the creation of many new jobs over the past five years. In March of 1999, Minister Manley introduced legislation in the House of Commons to make the CTC a Crown corporation, providing the CTC with more flexibility and freedom to achieve its goal of partnering with the tourism industry and the federal government to sustain a vibrant and profitable national tourism industry.

Corporate Restructuring and
Human Resource Management

The evolution of Industry Canada from its initial formation as Industry and Science Canada in 1993 to the present day, is a quintessential example of the government's strategy to "get government right".

The process towards this government-wide goal can be considered under three distinct headings:

• Restructuring — the merging, realignment, privatization of government functions, outputs and services.



• Reduction — the elimination or transfer to the private sector of those programs and services where it was no longer appropriate or necessary for the federal government to retain responsibility, and the prioritization of services and outputs to comply with reduced budget and FTE allocations.



• Renewal — addressing issues such as the profile and needs of a modern Public Service, La Rélève, efficiency in service delivery, new governance structures, performance and accountability.

Restructuring Industry Canada

The merger, in 1993, of Industry, Science and Technology Canada, Communications Canada, Consumer and Corporate Affairs Canada and Investment Canada created a new department with over 54 separate programs and a conglomeration of different internal administrative and informatics systems.

The first step for the new department was to establish clear strategic objectives and orient the lines of business of the department to meeting these objectives. The new department was also faced with re-orienting and rejuvenating its workforce.

In the larger context of public administration and governance, other changes were underway which also had to be considered, managed, and acted upon. These included: the concept of Special Operating Agencies; third party (public-private) organizations engaged in program delivery; coordination and management of the government's agenda across the portfolio of agencies under the responsibility of the Minister of Industry; and the concept of virtual organizations. Furthermore, reporting, accountability and performance measurement systems were evolving rapidly.

• The department has developed five strategic objectives to achieve its mandate which is to assist Canada in improving growth in productivity, employment and income. The five strategic objectives are targeted at Innovation, Connectedness, Marketplace, Investment and Trade. The identification of these objectives presented a clear message about the department to those outside of Industry Canada, and allowed each employee to position and recognize his or her own work and more narrowly-based objectives within the larger goals.



• In October 1998, the Departmental Management Board met for two days in Cornwall to develop performance frameworks for each of the five strategic objectives. The frameworks articulate the results to be achieved, and the means by which we will achieve them. The frameworks provided the architecture for a much improved Report on Plans and Priorities for fiscal year 1999-2000. The RPP serves as the department's business plan. During 1999-2000, the Department developed performance indicators and further refined its framework for Performance Management.



• The Industry Portfolio Office has played a major role in coordinating cross-portfolio strategic program and policy initiatives across the 14 members of the Portfolio. Areas of focus have included: promoting innovation through science and technology; encouraging trade and investment; helping small and medium-sized enterprises to grow; and promoting economic growth in Canadian communities. Examples of the Portfolio approach at its best include: the Industry Portfolio Science and Technology Action Plan; the highly successful SME Conference and Info-Fairs which are hosted by ACOA, CED, IC, and WD in their respective regions; and harmonizing the Community Futures Development programs across Canada.

Reduction

Program Review

Industry Canada was one of the departments deemed to be "most affected" by Program Review and the need to contribute to the elimination of the annual federal deficit.

• Industry Canada has fully implemented the reductions to achieve Program Review I targets of $93 million in 1995-96, $148 million in 1996-97 and $212 million in 1997-98 and on-going, and the Program Review II target of $23 million starting in 1998-99.



• The number of Industry Canada programs was cut from 54 to 11.



• Industry Canada fully met its FTE target reductions under Program Review I and II, resulting in a decline in FTE levels of about 23 per cent. From 1995 to 1997, the department experienced a net loss of about 1,080 full-time employees.



• The department devoted considerable effort to ensuring that the reductions were achieved in a climate of open communications and respect for the interests of employees affected by the budget reductions. This approach contributed to the achievement of reduction targets without a single formal grievance and without a single involuntary lay-off.

Renewal

Special Operating Agencies,
Partnerships and Service Delivery

The past six years have seen a major change in the way Industry Canada delivers its mandate.

• To improve efficiencies, the effectiveness of service delivery and to establish more direct accountability to clients served, a number of the sub-organizations of Industry Canada have been created or re-created as Special Operating Agencies. Examples include: the Communications Research Centre; the Canadian Intellectual Property Office; Measurement Canada; and Technology Partnerships Canada.



• Industry Canada has evolved in its understanding of the effectiveness of partnerships. To reach its clients, Industry Canada now collaborates extensively with partners at all levels of government and the private sector. The department's commitment to this approach is demonstrated in initiatives under each of the strategic objectives, such as: the renewed Canadian Biotechnology Strategy, SchoolNet, Measurement Canada's private sector partnerships to delivery statutory services, Investment Partnerships Canada, and the Team Canada International Business Development Strategy.



• The department has undertaken a full review of the information technology infrastructure in Industry Canada, which will improve internal data management and data sharing; improve communications with other government departments and our partners; improve functionality; improve information technology management in the department; and maintain our leadership role in information technology within the federal government.



• The modernization of comptrollership initiative goes to the heart of modern management, and Industry Canada has been, and will continue working to ensure that comptrollership principles and practices are incorporated in the way the department conducts its business. For example, the department created a Corporate Planning and Performance Coordination Directorate within the Comptroller's Branch to focus on performance frameworks and performance measures. A new, integrated financial management system (IFMS) was implemented to support the Financial Information Strategy and the provision of better information for decision-making — the infrastructure behind the comptrollership initiative.



• In addition to providing accessible, tailored information on the Comptroller's Branch Intranet site, launched in 1998-99, the branch has introduced and improved training and reporting for managers at all levels.



• The department implemented a strategy to assure Y2K compliance of information technology systems and to monitor their integrity through the first weeks of 2000.

Human Resource Management

During the later stages of the Restructuring and Reduction phases, attention turned toward the medium and long-term issues related to employee concerns and needs, and the challenges of medium and longer term human resource management.

• In 1997, the department launched an initiative entitled Industry Canada and Me. The project featured a video to highlight and inform staff of the diversity of Industry Canada's mandate and organized discussions on this subject among employees brought together from different responsibility areas of the department.



• In 1997, Industry Canada developed a People Management Plan — the department's contribution to the government-wide La Rélève initiative. This was initially conceived as a three year plan. It focussed on 15 corporate initiatives and 56 sectoral initiatives and grouped objectives in four impact areas: Renewal, Retention, Representation, and Recruitment. With the launch of the plan, a People Management Committee — with members drawn from a broad base of sectors, and types and levels of positions — was formed to oversee the implementation of the plan. A People Management Fund of $4 million per year for three years was created to cover the costs of initiatives under the Plan.



• The past three to four years has seen the creation of Sector-level committees or working groups with a mandate from respective management teams to address issues of interest to employees in building a better working environment, career development, recognition and other aspects of human resource management.



• In November 1999, the results of the 1999 Public Service Employee Survey were released. Overall, Industry Canada's results, in terms of general attitudes of employees, were similar to those for the Public Service as a whole. However, some areas of concern were identified such as workload management, information sharing across the department, harassment and discrimination, fairness and involvement, and career development. It was also observed that certain communities of employees — visible minorities, people with disabilities, the scientific and professional cadre, and those 11 or more years at the same classification and level — presented generally more negative perspectives when compared to the department as a whole.



• A systematic follow-up to the 1999 Public Service Employee Survey at the sector and branch level was undertaken to address areas identified by the survey as requiring attention. All areas of the department developed customized action plans. The majority of the sectors have integrated their HR plan in their annual operational plan. Direct follow-up was taken on the issue of harassment and discrimination to try to identify the extent and nature of concern. Employees were given the opportunity to express their views (anonymously if so wished) to a consultant acting at arm's length from the department. Through consultation with union representatives and others, the department will continue to explore approaches to eliminating harassment and discrimination from the workplace.



• In the last quarter of 1999-2000, a Renewed People Management Plan 2000/2003 was developed to keep attention on good people management practices, to maintain efforts to integrate selected successful pilot projects from previous years, to build linkages with sector-level teams and others (e.g. employment equity advisory groups) and to ensure sharing and coordination of best practices across the department. The thematic priorities for the renewed Plan 2000-2003 are learning and career development, improving well-being in the workplace and the recruitment of a skilled and representative workforce. At the corporate level, the plan is the instrument for addressing the issues of concern raised by the 1999 Public Service Employee Survey.



• 1999 saw the launch of the Human Resources Branch website, which includes a section on the People Management Plan. The site receives the highest number of visits of all Industry Canada Intranet pages, and it is proving to be a useful access point for information on HR programs and services. The site is under continuous development to expand access to information and to build interactivity for HR related transactions such as on-line course registration and leave approvals and documentation.



• Noteworthy is the recent change in career advancement opportunities for employees. With the impact of the reductions in the workforce resulting from Program Review now in the past, opportunities for promotion have increased significantly. The number of promotions in Industry Canada rose from 240 in 1997/98 to 401 in 1998/99 and to 440 for the nine month period July 1, 1999 to March 31, 2000. On an annualized basis, this last figure represents approximately a two and a half-fold increase in two years.

Date: October 17, 2000

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Date Modified: 2005-10-18 Important Notices