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The original version was signed by
The Honourable Rona Ambrose, P.C., M.P.
Minister of Public Works and Government Services and Minister for Status of Women
The Honourable Lynne Yelich, P.C., M.P.
Minister of State (Western Economic Diversification)
Section I: Organizational Overview
Section II: Analysis of Program Activities by Strategic Outcome
Section III: Supplementary Information
Section IV: Other Items of Interest
Over the past year, the economy has been the Government of Canada's top priority. However, the global economy remains fragile and WD is continuing to support strategic projects that promote economic growth, create jobs and ensure that the western Canadian economy remains strong, innovative and competitive. The department is well positioned to respond to western needs and will continue to promote innovation, foster business development and strengthen communities in the West.
WD will continue to ensure that Western Canada remains a driving force behind Canada's prosperity and that the interests of western Canadians are advanced in national economic policy.
The department will build on the solid foundation it has laid of investing in strategic projects, partnerships and programs that contribute towards a healthy economic future for Canadians.
The Honourable Rona Ambrose, P.C., M.P.
As Minister of State for Western Economic Diversification, I am pleased to share the 2012-2013 Report on Plans and Priorities.
Western Economic Diversification Canada (WD) acts on the priorities of western Canadians by helping to create a modern, diversified and competitive economy. The economy of Western Canada has changed over the last 25 years and the department is evolving to respond to this new economic landscape by focusing on small business, creating jobs and attracting investment to encourage economic growth.
Our government’s top priority remains the economy and, in 2012, WD will work diligently to ensure that our programs are focused and that they meet the needs of western Canadians. The department will focus on the strategic delivery of programs that support commercialization, business development and foster growth in our communities.
Innovation is a significant economic driver in the West and WD will help create the right conditions for innovative ideas to become a reality. The department’s investments will promote growth and will encourage the commercialization of new technology products, processes and services.
WD recognizes that small and medium-sized enterprises (SMEs) are a key source of job creation in the West. We will focus our investments on ensuring western businesses are more productive and competitive in the global economy. In addition, WD will work with western Canadian industry and SMEs to ensure the West is well positioned to benefit from major federal procurement contracts.
Moving forward, WD will work closely with its existing stakeholders and will reach out to new partners to improve the long-term competitiveness of the West, create jobs and help ensure the continued growth and prosperity of the western economy.
The Honourable Lynne Yelich, P.C., M.P.
Western Economic Diversification Canada (WD) was established in 1987 and mandated to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program and project development and implementation.
As the federal economic development department for Western Canada, WD develops and supports economic policies, programs and activities that promote economic growth and assist Western Canada in responding to the economic challenges and opportunities it faces.
Our Vision
To be leaders in creating a more diversified western Canadian economy that has strong, competitive and innovative businesses and communities.
WD's mandate, which is outlined in the Western Economic Diversification Act, is to develop and diversify the western Canadian economy. This broad mandate allows the department to implement diverse programs and initiatives across the West to help western Canadians create strong, competitive and innovative businesses and communities.
With offices in each western province and its headquarters in Edmonton, WD provides a strong federal presence in the economic development of the West. Its western base has enabled the department to develop an understanding of Western Canada and foster extensive partnerships with business and community organizations, research and academic institutions, as well as provincial and municipal governments.
An important contributor to a prosperous western Canadian economy, WD helps build on the West's traditional economic strengths while supporting the transition to a more diverse, modern economy.
These connections enable the department to identify and support economic opportunities in the West and to leverage its investments to benefit the western Canadian economy. Another strength of WD is its connections to and knowledge of Ottawa and the federal government throughout Canada. This allows the department to convey western perspectives to national economic policy and program decision-makers, working within the federal system to ensure that western interests and perspectives are brought to bear in federal decision making.
WD programs strengthen:
To ensure that its programs have the greatest impact on the West, WD will focus its investments in priority areas-business productivity and growth, trade and investment and technology commercialization. In addition, the department will continue to advance western interests in national economic policy, program and project development and implementation.
WD also delivers national initiatives on behalf of the Government of Canada in Western Canada. These have included the Recreational Infrastructure Canada program and the Community Adjustment Fund under Canada's Economic Action Plan, programming to upgrade and expand western Canadian infrastructure, the Economic Development Initiative aimed at supporting businesses and economic development in western Canadian Francophone communities, as well as programs to help mitigate the economic impact of the Mountain Pine Beetle infestation. WD's flexibility and ability to implement programs such as these enables it to respond quickly to the priorities and needs of the federal government in the West.
To ensure that its programs have the greatest impact on the West, the department will focus on its priority areas - business productivity and growth, trade and investment, technology commercialization and advancing the interests of Western Canada.
As an important contributor to a prosperous western Canadian economy, WD helps build on the West's traditional economic strengths while supporting the transition to a more diverse, modern economy. WD is committed to building a stronger western Canadian economy and a stronger Canada.
In 2012-13, WD will focus on the program activities and sub-activities listed below to achieve its strategic outcome of developing and diversifying the western Canadian economy. These activities, comprising the department's Program Activity Architecture (PAA), will help ensure that Western Canada continues to make a strong contribution to Canada's economic success.
Strategic Outcome | Program Activities | Program Sub-Activities |
---|---|---|
The western Canadian economy is developed and diversified | Business Development | Improve Business Productivity |
Market and Trade Development | ||
Industry Collaboration | ||
Foreign Direct Investment | ||
Access to Capital | ||
Innovation | Technology Adoption and Commercialization | |
Technology Linkages | ||
Technology Research and Development | ||
Community Innovation | ||
Technology Skills Development | ||
Knowledge Infrastructure | ||
Community Economic Development | Community Planning | |
Community Development | ||
Community Economic Adjustment | ||
Community Infrastructure | ||
Policy, Advocacy and Coordination | Collaboration and Coordination | |
Research and Analysis | ||
Advocacy | ||
Internal Services | Governance and Management Support | |
Resource Management Services | ||
Asset Management Services |
In 2012-13, WD will focus on the six organizational priorities described below. These key areas of focus are at the core of the department's efforts to develop and diversify the western Canadian economy.
Type: Ongoing
Link to Program Activity: Innovation
Why this is a priority
Plans for meeting the priority
Type: Ongoing
Link to Program Activity: Business Development
Why this is a priority
Plans for meeting the priority
Type: Ongoing
Link to Program Activity: Business Development
Why this is a priority
Plans for meeting the priority
Type: New
Links to Program Activity: Policy, Advocacy and Coordination
Why this is a priority
Plans for meeting the priority
Type: Ongoing
Links to Program Activities: All program activities
Why this is a priority
Plans for meeting the priority
Type: New
Links to Program Activities: All program activities
Why this is a priority
Plans for meeting the priority
Western Canadian economic opportunities and challenges have a significant impact on national economic performance.
The western Canadian economy is an important part of Canada's economy. Home to more than 30 per cent of all Canadians, the four western provinces have a combined GDP that rivals that of Ontario.11 Because of its significant size and strong economic performance, western Canadian economic opportunities and challenges have a significant impact on national economic performance.
In 2011, economic growth in Western Canada outpaced the national average. This is expected to continue in 2012. Despite the positive economic outlook for 2012, Canada's economic situation - particularly in the export-dependent West - will be affected by the continued volatility of the global economy and its challenges.
Economic growth and prosperity in Western Canada have been largely resource-driven and the West has benefitted from prolonged periods of high demand and prices for commodities. Furthermore, growth has supported the creation of commodity-based industry clusters in sectors such as mining, forestry, oil, gas and agriculture. While the West's natural resources provide a strong foundation for future economic growth, the resource-driven growth has masked a number of fundamental challenges facing Western Canada's long-term economic prospects.
WD supports economic development and diversification by building on the West's existing strengths and helping create new opportunities through the development of new and growing sectors of the economy.
Western Canadian businesses have comparatively low levels of investment in R&D and slower rates of adoption of new technologies and equipment, particularly outside of the major resource sectors. This has contributed to declining competitiveness and slow productivity growth compared to Western Canada's competitors. In 2012-13, WD will continue to invest in projects and activities that help businesses increase their productivity and competitiveness through the development, adoption and commercialization of new technologies and business processes.
Western Canadian businesses also face the challenge of a small domestic market and increasing global competition. The strong economic performance of fast-growing economies such as China, Korea, India and Brazil are eroding the competitive position of many western Canadian firms. To compete, businesses will need to participate in global value chains and attract foreign direct investment. Foreign direct investment can address gaps in risk capital in Canada by providing access to the financial base of parent companies, an important way to provide greater access to funding for R&D and technology commercialization. In 2012-13, WD will continue to work with western SMEs, industry associations and research institutions to improve access to global value chains, strengthen international partnerships and encourage foreign direct investment, leading to enhanced international markets for Canadian products and services.
To be effective in advancing its strategic outcome in the West, WD works with a number of partners and stakeholders that bring tremendous strengths, resources and capacity to the economic development and diversification of Western Canada. These partners and stakeholders include businesses, industry associations, non-profit organizations, research and academic institutions, provincial and municipal governments and other federal organizations. The department must ensure that its programs and initiatives are aligned with and sensitive to the needs of key partners and stakeholders to maximize the department's impact on the western Canadian economy.
WD's internal environment influences its ability to deliver on priorities and advance the strategic outcome of a developed and diversified western Canadian economy.
WD will look for efficiencies and savings in its operations, ensuring that program funding is directed at areas that provide the greatest impact on the development and diversification of the western Canadian economy.
The federal government is exploring the application of standard management practices horizontally across government including: Gs&Cs business processes and reform, pay modernization, information technology (IT) systems, as well as financial systems and processes.
The new SSC department was created to improve services to Canadians, make IT more secure and reliable, as well as save money. SSC will provide services associated with email, data centre and network services to federal departments. The transfer of a portion of WD's IT staff and budget to this new organization will change the way the department manages and develops its IT systems, helping the department to streamline and modernize its administrative services consistent with other federal departments. The challenge for WD will involve transitioning IT staff and services and developing and maintaining systems that are appropriate for the department's needs.
As part of its risk management approach, WD integrates risk information into its key decision-making and planning activities. To help facilitate this integration, the department updates its corporate risk profile annually to reflect its external and internal operating environment. Key risks and mitigation strategies are assessed to determine the residual risk that could affect the achievement of the department's strategic outcome.
WD invests its core resources in the following activities to support the development and diversification of the western Canadian economy:
WD's planned spending for 2012-13 is $176.3 million.
2012-13 | 2013-14 | 2014-15 |
---|---|---|
176,307 | 164,776 | 164,679 |
The commitment and expertise of WD's staff enables the department to deliver results to western Canadians. With offices in Manitoba, Saskatchewan, Alberta, British Columbia and Ottawa, WD has staff with extensive local knowledge and connections with key stakeholders in western Canada. WD also maintains the presence and capacity needed to advance Western interests in national economic decision making in the National Capital Region.
The table below provides a summary of the total planned human resources for WD over the next three fiscal years.
2012-13 | 2013-14 | 2014-15 |
---|---|---|
408 | 402 | 397 |
Program Activity | Forecast Spending 2011-12 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|
2012-13 | 2013-14 | 2014-15 | |||
Business Development | 52,373 | 63,019 | 60,606 | 61,587 | Strong Economic Growth |
Innovation | 69,926 | 62,259 | 57,662 | 57,651 | An Innovative and Knowledge-Based Economy |
Community Economic Development | 37,870 | 20,832 | 15,829 | 15,821 | Strong Economic Growth |
Policy, Advocacy and Coordination | 9,381 | 8,190 | 8,062 | 8,048 | Strong Economic Growth |
Total Planned Spending | 154,300 | 143,159 | 143,107 |
Program Activity | Forecast Spending 2011-12 |
Planned Spending | ||
---|---|---|---|---|
2012-13 | 2013-14 | 2014-15 | ||
Internal Services | 26,058 | 22,007 | 21,617 | 21,572 |
Total Planned Spending | 22,007 | 21,617 | 21,572 |
The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision making by articulating its key strategic environmental goals and targets. WD ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the federal Strategic Environmental Assessment (SEA) process, any new policy, plan or program initiative includes an analysis of its impact on attaining FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the department's commitment to achieving FSDS goals and targets.
WD contributes to Themes I: Addressing Climate Change and Air Quality; II: Maintaining Water Quality and Availability; and IV: Shrinking the Environmental Footprint - Beginning with Government, as denoted by the visual identifiers below.
These contributions are components of the following program activities and are further explained in Section II:
For additional details on departmental activities to support sustainable development, please reference Section II of this RPP and WD's Departmental Sustainable Development Strategy 2011-14.14 For complete details, see the FSDS.15
WD's planned spending is $176.3 million in 2012-13, compared to the 2011-12 forecast spending of $195.6 million. The $19.3 million decrease is due to the conclusion of funding for the following program, as well as other cash flow variations explained below.
Program completion:
Normal cash flow variations from 2011-12:
The department's planned spending is at approximately the same level for the next two fiscal years - $164.8 million for 2013-14 and $164.7 million for 2014-15.
The $11.6 million decrease in funding between 2012-13 and 2014-15 relates primarily to the conclusion of initiatives related to the Alberta and Saskatchewan Centenaries ($3.7 million) and the Rick Hansen Foundation ($4.5 million), as well as a further decrease related to strategic review savings ($3.2 million).
For information on WD's organizational appropriations, please reference the 2012-13 Main Estimates.16
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 program activities:
2012-13 | 2013-14 | 2014-15 |
---|---|---|
80 | 80 | 80 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
63,019 | 61,606 | 61,587 |
Expected Results | Performance Indicators | Targets |
---|---|---|
Strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace | SME employment (excluding non-employee SMEs) | 2.6 million |
Annual international trade: value of exports excluding primary production sectors | $44 billion |
This program activity 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.
WD plans to undertake the following business development activities in 2012-13:
2012-13 | 2013-14 | 2014-15 |
---|---|---|
62 | 62 | 62 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
62,259 | 57,662 | 57,651 |
Expected Results | Performance Indicators | Targets |
---|---|---|
A stronger knowledge-based economy | Total income from the commercialization of intellectual property | $21.8 million |
Business Expenditures on Research and Development as a percentage of GDP | 0.59% | |
Employment in natural and applied science and related occupations as a percentage of total employment | 6.50% |
This program activity 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 research and development, 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.
WD plans to undertake the following innovation activities in 2012-13:
2012-13 | 2013-14 | 2014-15 |
---|---|---|
85 | 84 | 80 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
20,832 | 15,829 | 15,821 |
Expected Results | Performance Indicators | Targets |
---|---|---|
Communities have increased economic opportunities and capacity to respond to challenges, as well as the necessary investments in public infrastructure | Number of new jobs created | 18,500 |
Percentage of key informants with the opinion that WD delivery of infrastructure programs resulted in investments that reflect western Canadian infrastructure priorities | 50% |
This program activity 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 community 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 need of western Canadian communities.
WD plans to undertake the following community economic development activities in 2012-13:
2012-13 | 2013-14 | 2014-15 |
---|---|---|
60 | 60 | 60 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
8,190 | 8,062 | 8,048 |
Expected Results | Performance Indicators | Targets |
---|---|---|
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%20 |
Percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets | 85% |
This program activity arises from the Western Economic Diversification Act (1988), which 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 activity, 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.
WD plans to undertake the following policy, advocacy and coordination activities in 2012-13:
2012-13 | 2013-14 | 2014-15 |
---|---|---|
121 | 116 | 116 |
2012-13 | 2013-14 | 2014-15 |
---|---|---|
22,007 | 22,617 | 21,572 |
The Internal Services program activity supports all strategic outcomes and is common across government. 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; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.
WD plans to undertake the following internal services activities in 2012-13:
WD is a participant in the Federal Sustainable Development Strategy (FSDS) and contributes to the Greening Government Operations targets through the internal services program activity. The department contributes to the following target areas of Theme IV of the FSDS:
For additional details on WD's Greening Government Operations activities, please see the Supplementary Information Tables.22
$ Change | Future-Oriented 2012-13 |
Future-Oriented 2011-12 |
|
---|---|---|---|
Total Expenses | (20,638) | 177,105 | 197,743 |
Total Revenues | (1,781) | 494 | 2,275 |
Net Cost of Operations | (18,857) | 176,611 | 195,468 |
$ Change | Future-Oriented 2012-13 |
Future-Oriented 2011-12 |
|
---|---|---|---|
Total assets | (15,534) | 99,825 | 115,359 |
Total liabilities | (11,767) | 83,254 | 95,021 |
Equity | (3,767) | 16,571 | 20,338 |
Total | (15,534) | 99,825 | 115,359 |
The future-oriented financial highlights presented in the table above serve as a general overview of WD's financial operations. For the complete set of future-oriented financial statements, visit WD's Web site.23
All electronic supplementary information tables found in the 2012-13 Report on Plans and Priorities can be found on the Treasury Board of Canada Secretariat's web site.24
In 2012-13, WD will continue to work with other federal organizations to deliver the Economic Development Initiative25 as part of the Roadmap for Canada's Linguistic Duality 2008-2013: Acting for the Future.26 The department undertakes measures through a Results-Based Action Plan for the Implementation of Section 41 of the Official Languages Act to enhance the vitality of western Canadian Francophone Official Language Minority Communities, support and assist them in their development and foster the full recognition and use of both English and French in Canadian society.
The Strategic Planning Framework below depicts the logical relationship between WD's strategic outcome and its program activities. The Framework also demonstrates how the department's 2012-13 priorities contribute to achieving its strategic outcome and how WD contributes to Government of Canada outcome areas.
WD's contact details are as follows:
Mailing Address: | Suite 1500, 9700 Jasper Avenue, Edmonton, Alberta T5J 4H7 |
---|---|
Telephone: | 780-495-4164 1-888-338-9378 (toll-free) |
Fax: | 780-495-4557 |
1 For more information, visit www.wd-deo.gc.ca/eng/99.asp.
2 Community Futures organizations are community-based, non-profit organizations that provide SMEs in their communities with loans, technical support, training and information. They are also involved in community economic development projects. For more information, visit www.communityfuturescanada.ca.
3 http://rd-review.ca/eic/site/033.nsf/eng/h_00287.html
4 http://www.stic-csti.ca/eic/site/stic-csti.nsf/eng/h_00038.html
5 http://www.international.gc.ca/commerce/strategy-strategie/index.aspx?view=d
6 The NAPP, a partnership of six federal departments coordinated by the Department of Foreign Affairs and International Trade, provides a coordinated and integrated approach to advancing Canada's trade and investment and science and technology interests in the United States and Mexico.
7 CSLS Aggregate Income and Productivity Trends Database, Table 7a: Relative Productivity Levels in the Business Sector, Canada and the United States, 1947-2011, Centre for the Study of Living Standards.
8 http://www.wd-deo.gc.ca/eng/99.asp
9 http://www.international.gc.ca/commerce/assets/pdfs/GCS-en.pdf
10 http://www.digitaleconomy.gc.ca/eic/site/028.nsf/eng/home
11 In 2010, the nominal GDP for Western Canada was 36.0 percent of the national figure, while Ontario's was 37.7 percent.
12 http://www.wd-deo.gc.ca/eng/16.asp
13 http://www.wd-deo.gc.ca/eng/99.asp
14 http://www.wd-deo.gc.ca/eng/12782.asp
15 http://www.ec.gc.ca/dd-sd/default.asp?lang=En&n=F93CD795-1
16 http://www.tbs-sct.gc.ca/est-pre/20122013/p2-eng.asp
17 http://www.wd-deo.gc.ca/eng/99.asp
18 For more information, visit http://www.wd-deo.gc.ca/eng/12120.asp
19http://www.wd-deo.gc.ca/eng/16.asp#c
20 This survey is conducted every five years, last completed in July 2009.
21 For more information, visit http://www.wd.gc.ca/eng/12120.asp
22 http://www.tbs-sct.gc.ca/rpp/2012-2013/inst/wco/st-ts00-eng.asp
23 http://www.wd-deo.gc.ca/eng/59.asp
24 http://www.tbs-sct.gc.ca/rpp/2012-2013/index-eng.asp
25 http://www.wd-deo.gc.ca/eng/11564.asp
26 http://www.canadianheritage.gc.ca/pgm/slo-ols/pubs/08-13-ldl/08-13-ldl-eng.pdf