Report on Plans and Priorities 2015-16

Minister's Message

Report on Plans and Priorities 2015-16

Minister's Message

As the Minister responsible for Western Economic Diversification Canada (WD), I am pleased to present the Department's 2015–16 Report on Plans and Priorities.

Creating jobs and securing economic growth remains our Government's top priority. Canada stands as one of the few remaining countries in the world with a triple-A credit rating, something our Government believes is a testament to the important work we have accomplished. Canada's economic prosperity reflects the actions our Government has taken to lower taxes, pay down debt, reduce red tape and promote free trade and innovation.

Moving into 2015–16, WD will continue to focus on strategic directions aimed at diversifying and promoting a strong western Canadian economy that fosters innovation and diversification. WD investments and support of strategic projects, partnerships and programs, directly contribute towards economic growth, job creation and prosperity for all western Canadians.

The Honourable Rona Ambrose, P.C., M.P.

Minister of State's Message

Report on Plans and Priorities 2015-16

Minister of State's Message

As Minister of State for Western Economic Diversification (WD), I am pleased to present the 2015–16 Report on Plans and Priorities for the Department.

Following a series of broad-based engagement activities across Western Canada, WD set out a strategic agenda aimed at creating jobs and securing economic growth, while delivering on the Department's mandate to develop, innovate, and diversify the western Canadian economy.

Canada's West is home to world-class innovators who are developing new products and services with tremendous commercial potential. A challenge still remains, however, for firms to acquire the necessary funding to bring their ideas to market. In response, we launched the Western Innovation (WINN) Initiative. The Initiative addresses a need that western Canadian businesses have themselves identified, which is accessing the capital they require to move innovative ideas and emerging technologies from the test bench to the marketplace. Through it, we are now providing support to our innovators and I look forward to the results of our investment.

In partnership with industry, WD also continues to address identified skilled labour shortages in Western Canada. The Department will provide market-driven, targeted investments enabling western Canadians to better access training opportunities, and gain the skills they need to secure high-paying and rewarding jobs. The Western Diversification Program (WDP) is the main program through which WD can achieve this goal, and make strategic investments in initiatives that enhance and strengthen the economy of Western Canada.

Complementing our projects under WINN and WDP, the Department will continue to act as an advocate for the West. This means we will continue to promote western Canadian aerospace, defence and marine capabilities, maintaining the sectors' place as leaders in the global marketplace. With our western headquarters, we are well-positioned to receive feedback, and rely upon it to inform our decision making. I encourage all western Canadians to avail yourselves of our resources and to share your thoughts with us so that we can continue building on our successes. 

Moving forward, WD will continue to forge new partnerships and build on existing ones so that we can continue to create new jobs and economic growth. Together, we're showing Canada and the world that The West Means Business.

The Honourable Michelle Rempel, P.C., M.P.

Section I: Organizational Expenditure Overview

Report on Plans and Priorities 2015-16

Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Ministers:

Minister of Health
Minister of State (Western Economic Diversification)

Institutional Head:

Daphne Meredith, Deputy Minister

Ministerial Portfolio:

Department of Western Economic Diversification

Enabling Instrument:

Western Economic Diversification Act,^{Endnote i} R.S.C. 1985, c.11, (4^th Supplement)

Year of Incorporation/Commencement:

1988

Other:

Headquarters - Edmonton, Alberta

Offices -

• Vancouver, BC
• Edmonton and Calgary, AB
• Saskatoon, SK
• Winnipeg, MB
• Ottawa, ON

Organizational Context

Raison d'être

Western Economic Diversification Canada (WD) was established 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. The Minister of Health, supported by the Minister of State (Western Economic Diversification), is responsible for this organization.

The Department operates under the provision of the Western Economic Diversification Act, which came into force on June 28, 1988. WD is responsible for regional development in Western Canada by developing and supporting economic policies, programs and activities to promote economic growth.

Responsibilities

WD's mandate allows the Department to implement diverse programs and initiatives across the West to create strong, competitive and innovative businesses and communities. Its western base has enabled the Department to foster extensive partnerships across Western Canada with business and community organizations, research and academic institutions, Aboriginal groups as well as provincial and municipal governments.

These connections enable the Department to identify and support economic opportunities in the West and ensure that western interests and perspectives are reflected in national decision making. The Department will continue to capitalize on opportunities and implement strategies to mitigate risks and adapt to changes in a dynamic and complex environment.

WD focuses its activities in three program areas:

Business Development and Innovation: WD helps small and medium-sized enterprises (SMEs) develop and grow, create jobs, expand their markets, increase their exports and become more innovative and productive. The Department assists SMEs with international business engagement and works to attract investment to the region, as well as assist western Canadian SMEs to access opportunities linked to government procurement. Further, WD promotes the development and growth of the knowledge-based economy by building innovation capacity and supporting the commercialization of new knowledge-based products, processes and services.

Community Economic Growth: WD helps communities in Western Canada sustain their local economies and adjust to changing economic circumstances through departmental programs and by delivering national initiatives on behalf of the Government of Canada. WD also supports community-based organizations that provide western entrepreneurs with the information, training and loans they need to start and grow their businesses.

Policy, Advocacy and Coordination: WD identifies opportunities to strengthen the western Canadian economy and coordinate economic development activities, policies and programs across the West. WD works to build strategic relationships with key decision makers across Canada and works with western Canadian industry on defence-related procurement opportunities.

Strategic Outcome and Program Alignment Architecture

The Program Alignment Architecture (PAA) provides an overview of how the Department's programs and activities are aligned and how the expected results are organized to contribute to the achievement of WD's strategic outcome.

These programs comprising the Department's PAA help ensure that Western Canada continues to make a strong contribution to Canada's economic success.

Organizational Priorities

In 2015–16, WD will focus on six priorities to create jobs and promote economic growth while delivering on its mandate to develop and diversify the western Canadian economy.

Risk Analysis

Western Canada's businesses have limited competitiveness and slow productivity growth, due in part to comparatively low levels of investment in research and development and slower rates of adoption of new technologies and equipment, particularly outside of the major resource sectors. Innovative start-up firms in the West face greater challenges in accessing sufficient financing for technology commercialization priorities where a funding gap is particularly pronounced for early-stage firms. In 2015–16, WD will continue to invest in projects and activities that strengthen the development, commercialization and adoption of new technologies and business development.

Western Canadian businesses also face the challenge of a small domestic market and increasing global competition. Expanding trade and market opportunities for western Canadian businesses is an important component of economic prosperity. In order to remain competitive in a global economy, these businesses will need to increase their presence in international markets, participate in global value chains and attract foreign direct investment. In 2015–16, WD will continue to work with western Canadian 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 market access for western Canadian products and services.

Planned Expenditures

WD's planned spending in 2015–16 is $159.9 million, compared to the 2014-15 forecast spending of $164.3 million. The $4.4 million decrease in net spending includes a decrease in both transfer payments and operating costs. Factors contributing to the net decrease include:

• A decrease of $2.5 million attributed to reinvestment of receipts from repayable contributions and funding support to the Rick Hansen Foundation;
• A decrease of $1.0 million in transfer from Agriculture and Agri-food Canada related to the Canadian Beef Centre of Excellence; and
• A net decrease of $0.9 million related to operating budget carry forward, timing differences in accommodation funding and other program funding changes.

Alignment to Government of Canada Outcomes

Departmental Spending Trend

Departmental Spending Trend Graph text version

		2012–13	2013–14	2014–15	2015–16	2016–17	2017–18
	Sunset Programs - Anticipated	23,100	25,657	0	0	0	0
	Statutory	10,184	5,168	4,116	4,186	3,995	3,963
	Voted	150,434	157,503	160,234	155,728	151,404	150,503

The decreases in net spending are related to both transfer payments and operating costs. The Community Infrastructure Improvement Fund program under Canada's Economic Action Plan was a two year program that sunset in 2013–14.

Estimates by Vote

For information on WD's organizational appropriations, consult the 2015–16 Main Estimates ^{Endnote xv} on the Treasury Board of Canada Secretariat website.

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome: A growing and diversified western Canadian economy

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

In 2015–16, WD's strategic outcome is advanced through three programs: Business Development and Innovation; Community Economic Growth; and Policy, Advocacy and Coordination, with focused efforts in six priority areas.

Program 1.1: Business Development and Innovation

Description

Business Development and Innovation supports western Canadian businesses, industry, and research organizations to enhance business innovation, productivity, and global engagement. Value-added production is strengthened through the introduction of new products, technologies, or innovations to existing processes, as well as through efforts to pursue global markets and increase investment in Western Canada. Additionally, this program supports some members of the Western Canada Business Service Network and related partners to provide business services and access to capital in Western Canada in support of increased entrepreneurism. Transfer payments in support of this program are made under the authority of the Women's Enterprise Initiative and the Western Diversification Program. Funding support of the Canada Business Network is comprised of operations and maintenance funding.

Planning Highlights

WD plans to undertake the following Business Development and Innovation activities in 2015–16.

• Strengthen SME engagement in international markets and global supply chains, and attract foreign investment to the West.
• Support initiatives to improve access to skilled labour in Western Canada and enhance business productivity, including delivering community-based business support to western SMEs.
• Support market-driven innovation activities, including investments in knowledge infrastructure.
• Deliver the Western Innovation (WINN) Initiative to assist western Canadian SMEs in commercializing new technology products, processes and services.
• Act as convenor of key stakeholders and advocate for western interests in the areas of trade and investment, skills development and innovation.

Sub-program 1.1.1: Trade, Investment and Market Access

Description

Trade, Investment, and Market Access enhances western Canadian small- and medium-sized enterprises (SME), research institutes and industry associations' international business engagement and attracts investment to the region, including opportunities linked to government procurement. It focuses on increasing Western Canada's participation in global markets (both to source and supply goods and services); strengthening international partnerships; and attracting new foreign investment as well as Canadian Direct Investment Abroad to support access to and participation in global value chains. It also strives to strengthen trade-related infrastructure to enhance trade flows in and out of Western Canada, and promotes Western Canada as an attractive destination for international visitors (tourists, students, researchers, and investors). In addition, it supports international research and development (R&D) partnerships to enhance awareness of Western Canada's technology capabilities abroad. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Trade, Investment and Market Access activities in 2015–16.

• Assist western SMEs in engaging in international business and increasing their penetration in international markets, both in North America and emerging markets.
• Improve trade corridors of importance to Western Canada to support the flow of goods, services and people into and out of Western Canada.
• Raise awareness of Western Canada's key sectors, strengths and capabilities in international markets, especially emerging markets, and attract foreign investment to the region.

Sub-program 1.1.2: Business Productivity and Growth

Description

Business Productivity and Growth supports western Canadian businesses, business service providers, industry, and research organizations to undertake initiatives to enhance business productivity, competitiveness, and growth of western Canadian SMEs. This is achieved through promoting awareness and adoption of sound management and business practices, and current technology, as well as access to skilled labour. In addition, this sub-program supports some members of the Western Canada Business Service Network and related partners in providing business services and access to capital to targeted client groups such as women, persons with disabilities, and Aboriginal people. Transfer payments in support of this sub-program are made under the authority of the Women's Enterprise Initiative and the Western Diversification Program. Support of the Canada Business Network is provided through operations and maintenance funding.

Planning Highlights

WD plans to undertake the following Business Productivity and Growth activities in 2015–16.

• Support targeted investments that develop skilled labour in Western Canada, including projects that increase the availability of training, equipment and on-site training programs.
• Facilitate opportunities for partnerships between industry and organizations that deliver post-secondary training to increase training capacity related to specific skilled trades.
• Support and strengthen the role of members of the Western Canada Business Service Network (WCBSN) in their efforts to enhance business productivity, competitiveness and growth of western Canadian SMEs.
• Engage the Canada Business Network's service delivery agents, partners and other key stakeholders to optimize service delivery and brand the Network as a valuable primary source of information for Canadian entrepreneurs and small businesses.
• Work with Aboriginal people across the West to partner with industry, other government departments, post-secondary institutions and other organizations to increase opportunities for Aboriginal business development, entrepreneurship and skills development.

Sub-program 1.1.3: Innovation Capacity Building

Description

Innovation Capacity Building strengthens the overall innovation system in the West through capacity building in support of commercialization of knowledge-based products, processes and services. It supports research institutions in acquiring necessary space and equipment to engage in applied R&D or in the development of highly qualified personnel; or to conduct applied research and technology development from proof of concept to validation. It also supports not-for-profit institutions to undertake pre-commercialization activities such as triage, patenting, licensing, disclosures, and bundling of technologies; or to develop and demonstrate the potential of research in pre-commercial applications in order to engage commercial partners. In addition, it supports relevant industry skills training for engineers and scientists, as well as technology skills training for non-technical professionals. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Innovation Capacity Building activities in 2015–16.

• Invest in projects that improve knowledge infrastructure, support applied R&D, and develop HQP.
• Convene key western stakeholders from industry, post-secondary institutions, major research facilities and government to discuss innovation policy and identify new innovation models that strengthen the innovation marketplace and support commercial opportunities.

Sub-program 1.1.4: Technology Commercialization

Description

Technology Commercialization aims to increase the commercialization of knowledge-based products, processes, and service. It supports either not-for-profit entities, which assist SMEs, or SMEs directly to engage in advanced technology development, access incremental investments, or sell knowledge-based products, processes, and services. It supports the development and production of prototypes, and demonstration of products, as well as third party certification, testing and quality assurance of specific products. In addition, it supports outreach and promotional activities to attract investment. It also supports the validation of market potential and end-user acceptance, as well as  facilitating market-ready knowledge-based products, processes, and services. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Technology Commercialization activities in 2015–16.

• Provide support under the WINN Initiative to for-profit SMEs in Western Canada to bring new technology-based products, processes and services to market.
• Invest in projects that support advanced technology development, product demonstrations and validation of market potential.
• Provide pathfinding to help SMEs identify other funding sources or services.

Program 1.2: Community Economic Growth

Description

Community Economic Growth involves economic development initiatives that support communities to advance their economies, adjust to changing and challenging economic circumstances, and recover from depressed economic circumstances. This is achieved through both direct funding of projects, as well as funding support of the Community Futures (CF) organizations. Additionally, this program assists communities to assess community strengths, weaknesses, opportunities, and potential for new economic activity, and to develop and implement community plans. Transfer payments in support of this program are made under the authority of the Western Diversification Program and the Community Futures Program.

* The results of WD's work to support community infrastructure through programs delivered on behalf of Infrastructure Canada are reported through Infrastructure Canada.

Planning Highlights

WD plans to undertake the following Community Economic Growth activities in 2015–16.

• Continue to collaborate with Infrastructure Canada in the delivery of current infrastructure programs across the West.
• Complete Community Futures (CF) Revitalization activities to maximize the economic impact of CF organizations and align with Government of Canada and WD priorities.
• Continue to work with other federal organizations to deliver the Economic Development Initiative as part of the Roadmap for Canada's Official Languages 2013–2018.^{Endnote xvi}

Sub-program 1.2.1: Infrastructure Programming

Description

Infrastructure Programming provides community infrastructure funding in Western Canada to meet the Government of Canada's commitment to growth and the quality of life of Canadians. It builds and renews infrastructure in rural and urban municipalities across Canada allowing them to compete in the regional, national, and global economy. WD delivers infrastructure programming directly or in partnership with Infrastructure Canada and the four western provincial governments. Transfer payments in support of direct delivery of  this sub-program are made through designated program authorities, excluding the Western Diversification Program. Transfer payments in support of  delivery of  this sub-program in partnership are made through Other Government Suspense accounts originating from Infrastructure Canada under various funding authorities. WD receives operations and maintenance funding for the delivery of partnership programming.

* The results of WD's work to support community infrastructure through programs delivered on behalf of Infrastructure Canada are reported through Infrastructure Canada.

Planning Highlights

WD plans to undertake the following Infrastructure Programming activities in 2015–16.

• Continue to administer the Building Canada Fund – Communities Component as part of the wind-down phase.
• Continue to collaborate with Infrastructure Canada on sunsetting infrastructure programs across the West.

Sub-program 1.2.2: Community Development

Description

Community Development strengthens the viability of the local economy, enhances community capacity, and increases the participation of community members by encouraging and supporting them in grass roots economic development. This sub-program assists communities, including the Official Language Minority Communities (OLMCs), to assess the communities' needs and develop a community strategic plan in response to those needs. It also provides funding for the implementation of projects, normally identified through community planning, that stimulate economic development and capitalize on the communities' capacity, strengths, and opportunities. This is achieved through direct funding support for community planning and development projects. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Community Development activities in 2015–16.

• Engage Aboriginal people across the West and key partners to identify opportunities for community-based investments in support of Aboriginal business development, entrepreneurship and skills development.
• Support Francophone Economic Development Organizations in the provision of community economic development services to OLMCs.
• Continue to work with other federal organizations to deliver the Economic Development Initiative^{Endnote xvii} as part of the Roadmap for Canada's Official Languages 2013–2018.^{Endnote xviii}

Sub-program 1.2.3: Community Futures Program

Description

The Community Futures (CF) Program builds the capacity of rural communities to realize their full economic potential by aiding the development and implementation of local solutions to local problems. This sub-program provides financial support to CF organizations to deliver a range of small business services including information, counseling, training, and referrals to stimulate small business growth and local employment. In addition, CF organizations provide repayable financing to new and existing enterprises, through locally controlled investment funds. In collaboration with partners and stakeholders, CF organizations also assess the communities' needs, develop strategic plans in response to those needs, and implement community economic development projects identified in the plans. Transfer payments in support of this sub-program are made under the authority of the Community Futures Program.

Planning Highlights

WD plans to undertake the following Community Futures program activities in 2015–16.

• Support CF organizations to deliver a variety of services ranging from technical and advisory services to businesses, loans to SMEs and strategic economic planning.
• Complete CF Revitalization activities to maximize the economic impact of CF organizations and align with Government of Canada and WD priorities.
• Continue to work with WCBSN members to strengthen the structures, governance, accountability and performance management needed to provide value-added offerings.

Sub-program 1.2.4: Targeted Economic Initiatives

Description

Targeted Economic Initiatives supports economic activity in western Canadian communities, on a temporary basis through targeted economic stimulus or adjustment, to provide timely responses to the most pressing local needs, consistent with government priorities. Through this sub-program, WD is able to support western Canadian communities facing economic shocks, natural disasters, challenging economic circumstances with potential adverse effects, depressed economic conditions, or development opportunities with anticipated positive impacts. WD provides assistance through dedicated, temporary supplementary funding from the Government of Canada or through the Department's own special allocations. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program, as a temporary and targeted measure only, as well as other program authorities, as necessary.

* No results for targeted economic initiatives are expected for 2015–16.

Planning Highlights

In 2015–16, WD will continue to monitor and follow-up on repayable contributions made under the Community Adjustment Fund. No additional activities are planned.

Program 1.3: Policy, Advocacy and Coordination

Description

Policy, Advocacy, and Coordination arises from the Western Economic Diversification Act and empowers the Minister to advance the interests of Western Canada through policies and programs and by establishing cooperative relationships with key stakeholders. Policy, Advocacy and Coordination efforts enable WD to: provide a strong voice for Western Canada, which results in effective strategies, policies, and programs that address economic development needs; lead federal and intergovernmental collaboration to pursue key opportunities for long-term growth and diversification in areas of federal or shared federal-provincial jurisdiction; and, enable economic analysis activities to be carried out, which ultimately assist with informing policy and program decisions. Transfer payments in support of this program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Policy, Advocacy and Coordination activities in 2015–16.

• Promote western interests to key decision makers in the development of national policies and strategies.
• Build relationships with key stakeholders in western provinces and with other federal organizations by proactively engaging potential partners, sharing information and collaborating on initiatives of interest to Western Canada.
• Support policy analysis to enhance understanding of western Canadian economic issues, challenges and opportunities related to the Department's priorities in order to identify areas for departmental action.

Sub-program 1.3.1: Advocacy and Coordination

Description

Advocacy and Coordination aims to advance Western Canada's interests in national policies, priorities, and programs through coordinating effective responses by key stakeholders reflecting improved understanding and awareness of regional issues and opportunities. Stakeholders may include other government departments, industry and industry associations, academia, and the not-for-profit sector. Efforts in this sub-program lead to balanced, regionally-sensitive approaches to western Canadian priorities, coordinated economic development in the West, and increased procurement opportunities in Western Canada. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following Advocacy and Coordination activities in 2015–16.

• Represent western interests to key decision makers in the development of national policies and strategies. For example, WD will continue to represent western perspectives in the implementation of the federal Defence Procurement Strategy^{Endnote xix} and the Global Markets Action Plan.^{Endnote xx}
• Work with Aboriginal Affairs and Northern Development Canada and other federal departments to facilitate Aboriginal participation in West Coast energy development, including delivery of the Strategic Partnership Initiative^{Endnote xxi} – West Coast Energy projects.
• Build and sustain a strong network of stakeholders throughout the West to enhance the Department's knowledge of issues and opportunities in the region.
• Convene and engage key stakeholders across the West to identify opportunities for collaboration in support of economic development activities, including the identification of partnership projects with provinces and other stakeholders in targeted areas.

Sub-program 1.3.2: Economic Analysis

Description

Economic Analysis strives to increase understanding of western Canadian challenges, opportunities, and priorities through conducting research and disseminating results to support internal or external policy and program development. This is achieved through externally generated research; or in-house research and analysis involving economic overviews, environmental scans, analysis of federal or other government documents, and sectoral or issue analysis that supports departmental policy, planning, or program development. It includes external consultation on key economic issues or opportunities facing Western Canada with leaders from both the private and public sectors. Transfer payments in support of this sub-program are made under the authority of the Western Diversification Program.

Planning Highlights

WD plans to undertake the following economic analysis activities in 2015–16.

• Support economic and policy analysis to enhance understanding of western Canadian economic issues, challenges, opportunities and priorities.
• Strengthen departmental knowledge of the needs and capabilities of western Canadian businesses related to the Department's strategic priorities through increased availability of research and analysis.

Internal Services

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. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities 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; and Acquisition Services.

Planning Highlights

WD plans to undertake the following Internal Services activities in 2015–16.

• Continue to improve internal business processes and systems to ensure that WD remains a high performing organization while delivering programs and services to Canadians.
• Support change management through knowledge transfer initiatives, training and employee development to maintain consistent program delivery, policy implementation and client service.
• Collaborate with other Regional Development Agencies to improve common business processes, systems and partnerships to achieve program efficiencies.
• Participate in the Government of Canada's office modernization initiative.
• Contribute to the Government of Canada's Destination 2020 initiative to build a world-class public service.

Section III: Supplementary Information

Report on Plans and Priorities 2015-16

Section III: Supplementary Information

Future-Oriented Statement of Operations

The future-oriented condensed statement of operations provides a general overview of WD's operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the future-oriented condensed statement of operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Report on Plans and Priorities are prepared on an expenditure basis, amounts differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, can be found on the WD's website.^{Endnote xxii}

WD's total expenses are $149.0 million in 2015–16, compared to $148.2 million in 2014–15. The $0.8 million increase in total expenses includes increases of $0.2 million in transfer payments and an increase of $0.6 million in operating costs.

Supplementary Information Tables

The supplementary information tables listed in the 2015–16 Report on Plans and Priorities can be found on WD's website.^{Endnote xxiii}

• Departmental Sustainable Development Strategy^{Endnote xxiv}
• Details on Transfer Payment Programs of $5 Million or more^{Endnote xxv}
• Disclosure of Transfer Payment Programs under $5 million^{Endnote xxvi}
• Upcoming Internal Audits and Evaluations over the next three fiscal years^{Endnote xxvii}
• Up-Front Multi-Year Funding^{Endnote xxviii}

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations - external link^{Endnote xxix} publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the responsibility of the Minister of Finance.

Section IV: Organizational Contact Information

Western Economic Diversification Canada
Suite 1500, 9700 Jasper Avenue
Edmonton, Alberta T5J 4H7
Telephone: 780-495-4164
Fax: 780-495-4557
Web: www.wd-deo.gc.ca

Appendix: Definitions

Report on Plans and Priorities 2015-16

Definitions and Endnotes

Appendix: Definitions

appropriation :

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures :

Include operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Departmental Performance Report :

Reports on an appropriated organization's actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.

full-time equivalent :

Is a measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

Government of Canada outcomes :

A set of 16 high-level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.

Management, Resources and Results Structure :

A comprehensive framework that consists of an organization's inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.

non-budgetary expenditures :

Include net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance :

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve and how well lessons learned have been identified.

performance indicator :

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting :

The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

planned spending :

For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental  responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

plans :

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

priorities:

Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).

program :

A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture :

A structured inventory of an organization's programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

Report on Plans and Priorities :

Provides information on the plans and expected performance of appropriated organizations over a three-year period. These reports are tabled in Parliament each spring.

results:

An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization's influence.

Strategic Outcome:

A long-term and enduring benefit to Canadians that is linked to the organization's mandate, vision and core functions.

sunset program:

A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

target:

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

whole-of-government framework:

Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government-wide, high-level outcome areas, grouped under four spending areas.

Supplementary Information Tables

Departmental Sustainable Development Strategy

1. Overview of the Federal Government's Approach to Sustainable Development

The Federal Sustainable Development Strategy (FSDS) 2013–16 guides the Government of Canada's sustainable development activities, as required by the Federal Sustainable Development Act. In keeping with the objectives of the Act to make environmental decision making more transparent and accountable to Parliament, Western Economic Diversification Canada (WD) supports the implementation of the FSDS through the activities in this supplementary information table.

This Departmental Sustainable Development Strategy presents the planned contributions and expected results for Theme I – Addressing Climate Change and Air Quality, Theme II – Maintaining Water Quality and Availability, and Theme IV - Shrinking the Environmental Footprint – Beginning with Government.

2. Themes I to III: Department and Agency-Led Targets

Not applicable (n/a)

3. Themes I to III: Implementation Strategies

Through the FSDS, WD has committed to diversify the western Canadian economy by making strategic investments in the commercialization and adoption of clean energy and clean water technologies through the Western Diversification Program. These investments will contribute to the FSDS goals of mitigating climate change (implementation strategy 1.1.39), reducing air pollutants (implementation strategy 2.1.4) and increasing water availability (implementation strategy 3.12.2).

Under the department's Program Alignment Architecture (see Section I of the RPP for details), FSDS implementation strategies that are related to clean energy and clean water technologies are captured under the Business Development and Innovation program (1.1) or, more specifically, the sub-programs Technology Commercialization (1.1.4) and Innovation Capacity Building (1.1.3).

WD will assess its contribution towards the achievement of FSDS goals through relevant performance indicators associated with these two sub-programs (e.g., number of prototypes ready for demonstration and dollar value of sales tied to technology commercialized).

4. Theme IV: Targets and Implementation Strategies

Target 7.2: Green Procurement

As of April 1, 2014, the Government of Canada will continue to take action to embed environmental considerations into public procurement, in accordance with the federal Policy on Green Procurement.

Scope and Context

WD has five locations across Canada. Locations are identified by cities where WD has an office with 8 or more employees. The WD locations are:

• Vancouver, British Columbia;
• Edmonton, Alberta (Headquarters);
• Saskatoon, Saskatchewan;
• Winnipeg, Manitoba; and
• Ottawa, Ontario.

Effective April 1, 2013, all procurement functions were centralized to the Corporate Administration group in Finance and Corporate Management, Headquarters. The Procurement Unit consists of the Manager, Corporate Administration; a Team Leader, Corporate Services; two Procurement Officers; and one Procurement Clerk.

Performance Measurement

Expected Result

Environmentally responsible acquisition, use and disposal of goods and services.

Departmental Green Procurement Target

7.2.1. Information Technology (IT) Hardware

By March 31, 2017, 90% of IT hardware purchases will reduce the environmental impact associated with the production, acquisition, use and/or disposal of the equipment.

Departmental Green Procurement Target

7.2.2. Imaging Hardware and Consumables
By March 31, 2017, 90% of toner cartridges will be recycled at end of life.

Departmental Green Procurement Target

7.2.3. Business Travel
By March 31, 2017, 30% of accommodation stays will take place in establishments that have a high environmental rating based on an industry recognized tool.

Target 7.3: Sustainable Workplace Operations

As of April 1, 2015, the Government of Canada will update and adopt policies and practices to improve the sustainability of its workplace operations.

Scope and Context

See Target 7.2

Performance Measurement

Expected Result

Departmental workplace operations have a reduced environmental impact.

5. Additional Departmental Sustainable Development Activities and Initiatives

Not applicable

6. Sustainable Development Management System

In keeping with WD's mandate to develop and diversify the western Canadian economy, WD's programming efforts with respect to sustainable development focus on projects that create economic benefits for Western Canada. For instance, WD continues to make investments in clean energy and water technologies in order to increase the number of western Canadian technologies brought to market. WD's sustainable development vision is that the western Canadian economy is growing, diversified and sustainable.

In order to achieve its sustainable development objectives, WD fosters practices that promote sustainable development in its internal operations and project investment activities. WD initiatives related to sustainable development are incorporated into the department's procurement planning, tracking and reporting systems. WD's project assessment tool also allows for projects to be identified where there is alignment with an FSDS goal. In addition, a project's potential contribution to FSDS goals is considered during the funding decision process, with sustainable development projects reported in Client Driven Impact Surveys and on WD's public website.

WD senior management's responsibilities for integrating sustainable development principles into the department's policies, programs and operations are supported by a departmental sustainable development team. The team includes a headquarters Chair and Leads in each regional office. The team shares information and liaises with project and policy officers to inform sustainable development decision making.

7. Strategic Environmental Assessment

WD will consider the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, as part of its decision–making processes.

WD will continue to ensure that its decision-making process includes consideration of the FSDS goals and targets through the Strategic Environmental Assessment (SEA) process. An SEA for policy, plan or program proposals includes an analysis of the impacts of the given proposal on the environment, including on the FSDS goals and targets. The results of WD's detailed assessment are made public when an initiative is announced. The purpose of the public statement is to demonstrate that the environmental effects, including the impacts on achieving the FSDS goals and targets, of the approved policy, plan or program have been appropriately considered during proposal development and decision making.

Details on Transfer Payment Programs of $5 Million or more

Details on Transfer Payment Programs under $5 Million

Upcoming Internal Audits and Evaluations over the next Three Fiscal Years

Electronic link to Evaluation Plan: www.wd.gc.ca/eng/59.asp

Up-Front Multi-Year Funding