Western Economic Diversification Canada
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Section II: Analysis of Programs and Sub-Programs by Strategic Outcome

Strategic Outcome: The western Canadian economy is developed and diversified

Western Economic Diversification Canada (WD) works to develop and diversify the western Canadian economy, helping to build businesses that are innovative and competitive globally, while diversifying the base of the western Canadian economy beyond primary resource industries.

WD’s strategic outcome is advanced through the following programs:

  • Business Development: Strong small and medium-sized enterprises (SMEs) in Western Canada with improved capacity to remain competitive in the global marketplace;
  • Innovation: A strong knowledge-based economy;
  • Community Economic Development (CED): Communities have increased economic opportunities and capacity to respond to economic challenges, as well as the necessary investments in public infrastructure;
  • Policy, Advocacy and Coordination (PAC): Policies and programs that strengthen the western Canadian economy; and
  • Internal Services: Effective and efficient support for advancing the department's strategic outcome.

WD utilizes a number of economic indicators to gauge the competiveness, growth and diversity of the western Canadian economy. The table below outlines Western Canada’s performance across four economic indicators over the past four years. Canada’s performance in these indicators is included as a benchmark.

Performance Indicators   Target for 2012 2009 2010 2011 2012 (Preliminary)
Real Gross Domestic Product (GDP) growth Canada - -2.9% 3.4% 2.5% 1.7%
West 3.0% -3.6% 3.7% 4.1% 2.9%
Labour productivity growth (change in real GDP per hour worked) Canada - 1.2% 0.8% 0.4% 0.1%
West 1.5% 1.2% 1.5% 1.3% -0.2%
Primary production as a percentage of GDP Canada - 9.1% 9.5% 9.8% 9.6%
West 14.3% 19.2% 19.4% 19.7% 19.5%
Gross Domestic Expenditures on Research & Development (R&D) as percentage of GDP Canada - 1.9% 1.8% 1.7% Data not yet available
West 1.0% 1.3% 1.2% Data not yet available

The results show strong economic growth in Western Canada for a third consecutive year following the downturn in 2009. Over the past three years, growth in Western Canada’s real GDP clearly exceeded that of Canada, although in 2012, Canada’s labour productivity growth exceeded that of Western Canada. In 2012, real GDP growth in Western Canada was 2.9 percent. However, this level of real GDP growth in the West did not help contribute to an increase in labour productivity, as the increase in real GDP rose less than the number of hours worked.

Primary production as a percentage of GDP remained stable in Western Canada at 19.5 percent between 2011 and 2012, which is consistent with years prior to the recessionary period between 2008 and 2009. (This indicator is intended to gauge Western Canada’s diversification away from the resource industries. The lower the percentage, the less dependent the economy will be on resource industries as a source of wealth.)

Further, gross domestic expenditures on R&D as a percentage of GDP provides an indication of support of the knowledge-based economy, which leads to diversification of the economy. In Western Canada, this indicator has been stable.

Program: Business Development

Program Description

This program works with western Canadian businesses, industry and research organizations to undertake initiatives to enhance business productivity and competitiveness; support trade and investment attraction and penetration of western Canadian technologies, services and value-added products into international markets. Value-added production will be strengthened through support for initiatives in priority sectors to introduce new products, technologies or innovations to existing production and processes. Access to risk capital and business services for entrepreneurs and small business will also be improved through programs and services offered in conjunction with other business services organizations and associations.

Financial Resources - For Program Level ($ thousands)
Total Budgetary Expenditures
(Main Estimates) 2012–13
Planned Spending
2012–13
Total Authorities
(available for use)
2012–13
Actual Spending (authorities used)
2012–13
Difference
(Planned vs. Actual Spending)
63,019 63,019 65,620 57,741 5,278

 

Human Resources (Full-Time Equivalents—FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
80 53 27

 

Note: The number of planned FTEs in the 2012–13 Report on Plans and Priorities (RPP) was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 53 actual FTEs in this area has increased from the 52 actual FTEs reported in the 2011–12 Departmental Performance Report (DPR).

Performance Results - For Program Level
Expected Result Performance Indicators Targets Actual Results
Strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace SME employment (excluding non-employee) 2.6M 2.6M (2012)
Annual international trade: value of exports excluding primary production sectors $44.0B $59.1B (2012)

Business Development Performance Analysis and Lessons Learned

WD tracks SME revenue and employment levels, as well as annual international trade (excluding primary production) as indicators of SMEs’ capacity to remain competitive in the global marketplace. Economic growth in Western Canada outpaced the national average in 2012, and Western Canada’s economy met expectations for SME employment and exceeded expectations for annual international trade. SME employment grew to over 2.6 million. The value of Western Canada’s annual international trade in non-resource based sectors showed strong growth in 2012; the value of exports excluding primary production sectors increased to $59.1 billion, a 34.3 percent increase over the previous year. While WD’s programs contribute to these results, there are many other economic factors that influence these results, most notably global demand and prices for Western commodities.

WD conducted an evaluation of the Women’s Enterprise Initiative during 2012–13, which concluded that the initiative continues to fill an important programming gap in business support services for female entrepreneurs. Clients reported improved business practices and business survival. The number of self-employed women in Western Canada has increased 27 percent since the program’s inception in 1995. The department is developing a management action plan in response to recommendations made in the evaluation, which will be posted on WD’s Web site24.

WD conducted an evaluation of its Trade and Investment activities during 2012–13, which concluded that the department’s activities in this area overall have been successful in supporting SME participation in trade shows and in market exploration, promoting western Canadian capabilities to potential foreign buyers or investors and building international partnerships and networks. The evaluation offered a number of suggestions for improvement, including: streamlining project approval and funding disbursement processes; clarifying and communicating the support available and eligibility criteria; improving internal governance structures; enhancing collaboration with industry and federal, provincial and regional authorities; being more proactive in seeking out partnerships and projects; providing support to SMEs directly; and aligning programming with other Regional Development Agencies to create a level playing field across the country. The department is developing a management action plan in response to recommendations made in the evaluation, which will be posted on WD’s Web site25.

Sub-Programs related to Business Development:

Descriptions of the following Business Development sub-programs can be found on WD’s Web site: Sub-Program Description Item A26:

  • Improve Business Productivity
  • Market and Trade Development
  • Industry Collaboration
  • Foreign Direct Investment
  • Access to Capital
Financial Resources – For Sub-Program Level ($ thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Improve Business Productivity 34,418 33,214 1,204
Market and Trade Development 12,361 9,577 2,784
Industry Collaboration 685 100 585
Foreign Direct Investment 1,483 647 836
Access to Capital 14,072 14,203 (131)
Total 63,019 57,741 5,278

 

Human Resources (FTEs) - For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Improve Business Productivity Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 34 Not Applicable
Market and Trade Development 11
Industry Collaboration -
Foreign Direct Investment 3
Access to Capital 5
Total 80 53 27

 

Note: The number of planned FTEs in the 2012–13 Report on Plans and Priorities (RPP) was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 53 actual FTEs in this area increased from the 52 actual FTEs reported in the 2011–12 Departmental Performance Report.

Performance Results - For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Improve Business Productivity Increase in SME competitiveness and productivity % client satisfaction with the business services provided through the funded project 82% 97%
# jobs created or maintained 4606 4104
# businesses created/maintained/expanded 2200 2094
# clients trained 21,974 25,869
Market and Trade Development Increased participation in international markets # industry association partnerships created 13 73
# of companies participating in export and market development initiatives 448 1539
# projects promoting participation in major international events 26 33
Industry Collaboration Increase in number of successful partnerships and strategic alliances # partnerships/strategic alliances No reported outcomes anticipated 4
Foreign Direct Investment Increase in foreign investment in Western Canada $ in direct investment facilitated by WD $5,380,835 $6,000,000
Access to Capital Increased investment to targeted western Canadian firms # of jobs created/maintained 5177.0 6417.5
# of businesses created/ maintained/expanded 1307 1483
$s capital funds provided $70,485,244 $78,926,644
$s leveraged $69,720,024 $124,589,593

 

Performance Analysis and Lessons Learned from Sub-Programs Related to Business Development

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon the results that G&C projects report during the fiscal year. WD met or exceeded targets for 10 of the 12 business development-related performance indicators for which reported outcomes were anticipated (see Performance Results table above). In addition, results were reported against a 13th indicator, for which no activities or outcomes were anticipated (Industry Collaboration – number of partnerships/strategic alliances).

WD identified two key indicators specifically related to the department’s business productivity and growth priority—number of businesses created, maintained or expanded and dollar value of capital funds provided—and two key indicators for the trade and investment priority—number of companies participating in export and market development initiatives and value of direct investment facilitated by WD. The results at year end in these key areas exceeded targets (see Performance Results table above). Overall, variances (plus or minus) are largely due to the multi-year nature of funded projects that sometimes report results earlier or later than expected, the reliance on funded organizations to report results, as well as a low volume of projects where individual variances can impact overall results significantly.

Successfully completed projects include the following:

  • FP Innovations—engaged more than 50 First Nation communities across British Columbia (BC) to devise plans for commercializing local timber resources (BC Region, Improve Business Productivity);
  • Portage College—purchased equipment to support a Heavy Equipment Operator Program (Alberta (AB) Region, Improve Business Productivity);
  • Saskatchewan Trade & Export Partnership Inc.—provided exporter readiness services to Saskatchewan companies interested in exporting. (Saskatchewan (SK) Region, Market and Trade Development); and
  • Canadian Malting Barley Technical Centre—supported an advanced malting and brewing laboratory and testing centre (Manitoba (MB) Region, Market and Trade Development).

For further details regarding the impact of the completed projects listed above, please refer to the WD Success Stories27 on the department’s Web site.

Program: Innovation

Program Description

This program facilitates the West’s transition to a knowledge-based economy. Through innovation, knowledge is translated into new products and services and to new ways of designing, producing or marketing existing products or services for public and private markets. This recognizes that innovation occurs at the firm level, through a highly complex interdependent system that includes elements such as knowledge infrastructure, basic and applied R&D, highly qualified personnel, access to adequate patient financing, technology commercialization facilities and support systems and mechanisms to link these elements to each other. The process of innovation is not linear or isolated but occurs within a broader context known as an “innovation system”. This will strengthen the western innovation system in order to facilitate the development of clusters and to enhance the potential of innovation to create value and wealth.

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
62,259 62,259 57,902 59,830 2,429

 

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
62 36 26

 

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 36 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
A stronger knowledge-based economy Total income from the commercialization of intellectual property $21.8M Data source no longer available
Business Expenditures on Research and Development (BERD) as a percentage of GDP 0.59% 0.53% (2010)
Employment in natural and applied science and related occupations as a percentage of total employment 6.50% 6.83% (2012)

Innovation Performance Analysis and Lessons Learned

WD tracks Western Canada’s progress in innovation through high-level indicators such as western Canadian university income from the commercialization of intellectual property, BERD and employment in natural and applied science. Income from commercialization of intellectual property in Western Canada is no longer available through Statistics Canada, which has discontinued the Survey of Intellectual Property Commercialization in the Higher Education Sector28 as of 2009. BERD as a percentage of GDP has remained stable from the baseline year of 2004 through 2010 at approximately 0.5 percent, which is low compared to Canada as a whole (1.0 percent). Canada’s rate is low compared to international competitors.

Following an evaluation of the Innovation Program, WD reported in the 2011–12 DPR that, based on the evaluation’s recommendation, it would review the effectiveness and efficiency of program delivery. The department made progress during 2012–13 implementing an on-line application process for all Western Diversification Program applicants, better tracking of projects throughout the assessment process and streamlining the Program Alignment Architecture for 2013–14 to support effective program management. This evaluation can be found on WD’s Web site: Departmental Reports.29

Sub-Programs related to Innovation:

Descriptions of the following Innovation sub-programs can be found on WD’s Web site: Sub-Program Description Item B:30

  • Technology Adoption and Commercialization
  • Technology Linkages
  • Technology Research and Development
  • Technology Skills Development.
  • Community Innovation
  • Knowledge Infrastructure

 

Financial Resources - For Sub-Program Level ($ thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Technology Adoption and Commercialization 38,437 44,728 (6,291)
Technology Linkages 5,026 5,018 8
Technology Research and Development 7,274 4,208 3,066
Technology Skills Development 1,026 298 728
Community Innovation 1,328 65 1,263
Knowledge Infrastructure 9,168 5,513 3,655
Total 62,259 59,830 2,429

 

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Technology Adoption and Commercialization Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 25 Not Applicable
Technology Linkages 2
Technology Research and Development 1
Technology Skills Development 2
Community Innovation -
Knowledge Infrastructure 6
Total 62 36 26

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 36 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.

Performance Results – For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Technology Adoption and Commercialization An increase in the number of technologies developed in research institutions that have commercialization potential and an increase in technologies adopted by existing firms. # of patents filed/issued 24 8
# of technology demonstrations 63 195
# of technologies adopted 50 43
Technology Linkages Increased connections and synergies among innovation system members. # of partnerships/networks formed 14 4
# of attendees at funded conferences 1473 1242
# of new or incremental members of innovation associations 6 26
Technology Research and Development Applied R&D leading to technologies with commercialization potential. # of skilled personnel engaged in R&D through funded projects 25 6
# of products or processes that are identified for further R&D 8 8
# of demonstrations of viability of technology 5 5
Technology Skills Development Increase in training, education and skills building of highly qualified people. # of training events (specific course, series of courses, "boot camp', etc.) 2 2
# of people trained through training events 251 263
Community Innovation Increased technological capacity in a community. $ invested in knowledge infrastructure or technology commercialization facilities No reported outcomes anticipated $1,000,000
Knowledge Infrastructure Increase in physical assets for R&D or training. # of square meters dedicated to R&D and skills training 2825 3970
$ value of R&D undertaken for a 3-year period following completion of the new facility or equipment set-up $5,034,746 $18,850,811
#of incremental physical assets (buildings and equipment) 106 176

A: Description: graphic : Addressing Climate Change and Clean Air W: Description: graphic : Maintaining Water Quality and Availability
Performance Analysis and Lessons Learned from Sub-Programs Related to Innovation

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon results that G&C projects report during the fiscal year. WD met or exceeded targets for nine of the 14 innovation-related performance indicators for which reported outcomes were anticipated (see Performance Results table above). In addition, results were reported against a 15th indicator, for which no reported outcomes were anticipated (Community Innovation – dollars invested in knowledge infrastructure or technology commercialization facilities).

WD identified two key indicators specifically related to the department’s technology commercialization priority—number of patents filed or issued and number of technologies adopted. WD fell short of its targets set for these two indicators because of changes in project time lines, which resulted in either results being realized earlier (in 2011–12) or later than expected (in 2013–14) (see Performance Results table above). Overall, variances (plus or minus) are largely due to the multi-year nature of funded projects that sometimes report results earlier or later than expected, the reliance on funded organizations to report results, as well as a low volume of projects where individual variances can impact overall results significantly.

Successfully completed projects include:

  • Emily Carr University—established the first western Stereoscopic 3D Centre of Excellence in digital media and film technologies (BC Region, Knowledge Infrastructure);
  • Alberta Centre for Advanced MNT Products—acquired and installed specialized technology commercialization equipment to enable SMEs to develop technology and commercialize new products (AB Region, Technology Adoption and Commercialization);
  • Canadian Light Source Inc.provided funding for additional equipment for Phase II Beamlines (SK Region, Knowledge Infrastructure); and
  • University of Manitoba—developed a High Performance Computing Facility (MB Region, Technology Linkages).

For further details regarding the impact of the completed projects listed above, please refer to WD Success Stories31 on the department’s Web site.

Program: Community Economic Development

Program Description

This program involves economic development and diversification initiatives that support communities to sustain their economies and adjust to changing and challenging economic circumstances. It includes facilitating economic recovery from depressed economic circumstances. It ensures that economic, social and environmental considerations are taken into account in initiatives designed to foster community growth and economic development. It involves projects that assist communities to assess strengths, weaknesses, opportunities and potential for new economic activity and to develop and implement community plans. It also involves investments in community infrastructure, coordinated with provincial and municipal governments to maximize benefits. The process involves community-based consultations to ensure federal programs, services and horizontal initiatives serve the needs of western Canadian communities.

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
20,832 20,832 43,220 35,377 (14,545)

Note: Total Authorities include spending for the CIIF, which was not reflected in the Planned Spending amount.

 

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
85 43 42

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 43 actual FTEs in this area is down from the 54 actual FTEs reported in the 2011–12 DPR.

 

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
Communities have increased economic opportunities and capacity to respond to challenges, as well as the necessary investments in public infrastructure Employment: number of new jobs created 18,500* 140,370 (2012)
Percentage of key informants with the opinion that WD delivery of infrastructure programs resulted in investments that reflect western Canadian infrastructure priorities 50% To be measured in 2013–14 through Infrastructure Canada-led evaluations of Municipal Rural Infrastructure Fund and Building Canada Fund -Communities Component.

*Note: The target for “Employment: Number of new jobs created” reflects a forecast of stable growth of 1.8 percent, which was based upon an average of the previous five years.

 

Community Economic Development Performance Analysis and Lessons Learned

In order to capture the impact of its CED activities, WD tracks job creation and the perceived relevance of its infrastructure programs, as indicators of increased economic opportunities and communities’ capacity to respond to challenges. In 2012, Western Canada had a net job gain of 140,370, which was seven and one-half times higher than projected, reflecting the economic strength of the region. The survey of key informants regarding infrastructure programs will be conducted during 2013–14.

In terms of CED lessons learned, WD utilized Microsoft Client Relationship Management (CRM) software to manage the intake of over 2800 Community Infrastructure Improvement Fund (CIIF) on-line applications and to track the progress of each application through the assessment process, as updates were required daily. CRM proved to be an invaluable tool and WD is exploring future applications to other program areas.

Sub-Programs related to Community Economic Development:

Descriptions of the following CED sub-programs can be found on WD’s Web site: Sub-program item C 32:

  • Community Planning
  • Community Development
  • Community Economic Adjustment
  • Community Infrastructure
Financial Resources - For Sub-Program Level ($ Thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Community Planning 7,651 6,484 1,167
Community Development 10,241 7,177 3,064
Community Economic Adjustment 97 249 (152 )
Community Infrastructure 2,843 21,467* (18,624)
Total 20,832 35,377 (14,545)

Note: Actual Spending under Community Infrastructure includes spending for the CIIF, which was not reflected in Planned Spending amounts.

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Community Planning Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 6 Not Applicable
Community Development 8
Community Economic Adjustment 1
Community Infrastructure 28
Total 85 43 42

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 43 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.
 

Performance Results – For Sub-Program Level
Sub-Program Expected Result Performance Indicators Targets Actual Results
Community Planning Enhanced Community Planning # activities providing planning leadership and expertise 3044 3125
# instances facilitating community involvement 1025 1192
# partnerships developed/maintained 3292 3517
# community planning exercises undertaken by Community Futures organizations 190 330
Community Development Increased viability and diversification of local economies # instances of increased capacity in community organizations 1140 1075
# enhanced community services or facilities 421 669
# people trained 14 804
# instances of increased community stability 445 483
Community Economic Adjustment Successful community adjustment to mitigate economic crises Not applicable for 2012-13*
Community Infrastructure To maximize economic, social, cultural and environmental benefits to western Canadians through investments in public infrastructure in a coordinated manner with provincial and municipal governments. # new and improved local infrastructure elements Not Applicable as the CIIF was not anticipated in the department’s 2012–13 RPP 66
# jobs created or maintained No reported results
Total infrastructure funding expended (federal, provincial, municipal, and private - as a proxy for local economic stimulus) $17,018,059

*Note: No reported results for Community Economic Adjustment were anticipated during 2012–13 as this sub-program comprises short-term economic initiatives, implemented on an as needed basis only; the Community Adjustment Fund, which fell within this sub-program, was completed during 2011–12.

Performance Analysis and Lessons Learned from Sub-Programs Related to Community Economic Development

Fiscal Year Results

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon results G&C projects report during the fiscal year. WD met or exceeded targets for seven of the eight CED-related performance indicators (including Economic Action Plan (EAP)-related projects) for which reported outcomes were anticipated (see Performance Results table above). For one of the indicators (number of people trained in the Community Development sub-program), the actual results achieved greatly exceed the target; this was primarily due to one project, which reported an additional 719 people trained in 2012–13.

An example of a successfully completed project is the construction of a public community aquarium by the Ucluelet Aquarium Society (BC Region, Community Development). In addition, the Westman Entrepreneurial Centre, a knowledge-based business incubator supported by Community Futures Westman, was able to recruit Evolve (a full service multi-disciplined acquisition company) to move to Brandon, Manitoba in September 2012. Evolve provides technology solutions used in the oil and gas sector in southwestern Manitoba, creating 12 new jobs in the region.

For further details regarding the impact of the completed projects listed above, please refer to the WD Success Stories33 on the department’s public Web site. Specific examples of Community Adjustment Fund, Recreational Infrastructure Canada Program, and CIIF projects that received WD funding through EAP may be found on the WD Media Centre34 on the department’s Web site.

Community Infrastructure Sub-Program

WD delivered four national infrastructure programs in the West: Municipal Rural Infrastructure Fund (MRIF), Canada Strategic Infrastructure Fund, BCF–Communities Component (BCF-CC) and BCF–Major Infrastructure Component. Under MRIF, 566 projects with a federal investment of $266.4 million were supported across Western Canada. Of this, 552 projects were completed as of the March 31, 2013 program deadline, with a federal investment of $264 million. To date, 278 projects have been approved under BCF-CC across the West with a federal investment of $339.4 million. With respect to the BCF-CC Top Up program, all 163 projects supported across the West were completed in 2011–12 with a federal investment of $137.5 million. WD fully closed out the program in 2012–13.

As funding for these programs is provided through Infrastructure Canada’s (INFC) appropriation, details on the results may be found in INFC’s DPR.

WD was allocated $46.2 million over two fiscal years (2012–13 and 2013–14) to deliver the CIIF in Western Canada. Announced in Budget 2012, the CIIF is a two-year national program that will invest $150 million to rehabilitate and improve existing community infrastructure across Canada. The CIIF was not anticipated in the department’s RPP for 2012–13 and required the department to re-align resources to deliver this new initiative.

As of March 31, 2013, WD had approved 740 projects which committed all program funds. The CIIF provided WD with an opportunity to expand its role in supporting tourism initiatives, which was identified as a planning highlight in the RPP for 2012–13. Two examples of tourism-related projects approved in 2012–13 through the CIIF include renovations to Centre 200035, a tourism and trade facility in Grande Prairie, Alberta, and the conversion of the Pemberton, BC train station36 into a community, tourism and transportation hub.

Program: Policy, Advocacy and Coordination

Program Description

The Western Economic Diversification Act37 (1988) empowers the Minister to advance the interests of Western Canada in national economic policy, program and project development and implementation, through the establishment of cooperative relationships with the western provinces and other stakeholders and through the initiation of policy research. Through this program, WD advocates for Western Canada in national policy discussions, resulting in effective strategies, policies and programs to address the economic development needs and aspirations of western Canadians. It also includes leading federal and intergovernmental collaboration to pursue key opportunities for long-term growth and diversification in areas of federal or shared federal-provincial jurisdiction. Finally, it includes undertaking research and analysis required to inform policy and program decisions.

 

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 scope="col"Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
8,190 8,190 8,897 8,539 (349)

Note: Actual Spending is lower than total authorities primarily due to planned spending on transfer payments not materializing.

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
60 61 (1)

 

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
Policies and programs that strengthen the western Canadian economy Percentage of key informants with the opinion that WD activities provide policies and programs that support the economic development of Western Canada 90% To be measured in 2013–14
Percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets 85% 84%

Policy, Advocacy, and Coordination Performance Analysis and Lessons Learned

The targets set for the PAC program were materially met, with the indicator related to the percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets missing its target by only one percentage point.

WD continually refines and focuses its PAC program to meet the changing priorities of western Canadians. Through the department’s policy framework, emerging issues and opportunities are quickly identified and acted on. For instance, WD worked with Department of Foreign Affairs, Trade and Development Canada to ensure WD’s support for western Canadian ports was accurately reflected in the Government of Canada’s response to the US Federal Maritime Commission investigation. This investigation examined the extent to which the US Harbor Maintenance Tax, other US policies and other factors may incentivize US-bound container cargo to shift from US seaports to those located in Canada and Mexico.

The Evaluation of the Western Economic Partnership Agreements38 (WEPA) assessed the department’s investments in WEPA projects implemented in each of the four provinces in Western Canada. The evaluation covered the term of the most recent WEPAs from 2008 to 2012. The evaluation concluded that the decision making process had some challenges, including the time required for project approvals, the complexity of the project approval process and the lack of dedicated provincial funding in some provinces. The evaluation results contributed to WD’s decision to not renew the WEPAs, but to continue to work closely with the provinces and industry to invest in initiatives that support communities, jobs and growth in the West.

Sub-Programs related to Policy, Advocacy and Coordination:

Descriptions of the following PAC sub-programs can be found on WD’s Web site: Sub-program item D39:

  • Collaboration and Coordination
  • Research and Analysis
  • Advocacy
Financial Resources – For Sub-Program Level ($ Thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Collaboration and Coordination 3,367 2,751 616
Research and Analysis 2,828 2,142 686
Advocacy 1,995 3,646 (1,651)
Total 8,190 8,539 (349)

 

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Collaboration and Coordination Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 24 Not Applicable
Research and Analysis 11
Advocacy 26
Total 60 61 (1)

 

Performance Results – For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Collaboration and Coordination Better-coordinated economic development activities, policies and programs in the West Dollars leveraged for projects funded per fiscal year from all WD programs ($ leveraged per WD $) $2.00 $1.59
$ value of project funding provided under interdepartmental agreements to which WD was a party $12,900,000 $15,161,868
% of key informants with the opinion that WD activities provide better coordinated economic activities, policies and programs in the West 90% To be measured in 2013–14
Research and Analysis Improved understanding of western Canadian economic issues, challenges, opportunities and priorities % of key informants with the opinion that WD activities provide an improved understanding and awareness of western issues, challenges, opportunities and priorities 90% To be measured in 2013–14
Advocacy Decisions by other organizations that improve economic policies and programs in the West % of key informants with the opinion that WD activities provide an improved understanding and awareness of western issues, challenges, opportunities and priorities 90% To be measured in 2013–14
% of key informants with the opinion that WD advocacy work results in federal policies and programs that reflect western Canadian needs 90% To be measured in 2013–14
% of key informants with the opinion that WD advocacy work results in improved awareness of industrial and regional benefits and/or federal procurement opportunities 75% To be measured in 2013–14

Performance Analysis and Lessons Learned from Sub-Programs Related to Policy, Advocacy, and Coordination

Fiscal Year Results

WD sets targets annually for the performance indicators at the sub-program level in the departmental PMF. However, several of these targets (i.e., those requiring a departmental survey) are reported on every five years when a survey is conducted.

WD tracks progress annually against three indicators, one at the program level and two at the sub-program level (percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets; dollars leveraged for projects funded per fiscal year from all WD programs; and dollar value of project funding provided under interdepartmental agreements to which WD was a party), which are meant to reflect the impact of WD’s policy work on the G&C projects that the department supports. WD met or almost met targets for two of these three indicators, but fell short of its leverage target of $2.00 per WD dollar approved because of the lower leverage rates for a large research and analysis project ($1.00 leveraged per WD dollar approved) and for the CIIF ($1.45 leveraged per project on average per WD dollars approved). Together, these projects accounted for 60 percent of WD approved funding in 2012–13.

The RPP for 2012–13 identified the following as a planning highlight: “Facilitating connections between western Canadian businesses and multinational aerospace, marine and defence companies that receive federal defence and security procurement contracts with IRB obligations.” Pursuant to this planned activity, WD responded to 18 requests for supplier capabilities lists, identifying western Canadian SMEs that could meet the prime contractor requirements in anticipation of a bid; and organized eight supplier development tours and events to introduce prime contractors to western Canadian industry and academia.

One significant industry event hosted by WD was the Western Canada Shipbuilding Summit40. In May 2012, WD strengthened business connections and facilitated networking across the shipbuilding industry by attracting more than 600 industry stakeholders representing over 360 organizations to share information about business opportunities arising from the National Shipbuilding Procurement Strategy.

Program: Internal Services

Program Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services: Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services, Real Property Services; Material Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Financial Resources – For Program Level ($ Thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
22,007 22,007 24,123 22,231 (224)
Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
121 175 (54)

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The actual number of Internal Services FTEs fell from 199 in 2011–12 (as reported in the 2011–12 DPR) to 175 in 2012–13, representing a net decrease of 24 FTEs in this area.

Shrinking the Environmental Footprint of Government
Performance Analysis and Lessons Learned

The Report on Plans and Priorities for 2012–13 identified as a planning highlight the need to introduce a new departmental values and ethics code. To prepare for the new Values and Ethics Code for the Public Sector, which came into effect on April 2, 2012, WD decided to build on the foundation of values and ethics articulated in the Public Sector Code and adapt them to WD needs. Consultations were held across the department to develop a WD-specific Code of Conduct that resonated with staff. The WD Code of Conduct incorporates the provisions of the public sector code and outlines WD values that underpin expected behaviour for every member of the department, regardless of level or role. Adhering to the WD Code of Conduct is now a condition of employment for WD employees.

WD is a participant in the Federal Sustainable Development Strategy (FSDS) and contributes to the Greening Government Operations targets through the Internal Services program. The department contributes to the following target areas of Theme IV (Shrinking the Environmental Footprint–Beginning with Government) of the FSDS: e-waste, printing unit reduction, paper consumption, green meetings and green procurement.

For additional details on WD’s Greening Government Operations activities, please see the List of Supplementary Information Tables in Section III.