2004 Ministerial Transition Briefing Book (Partial Release) for Industry Minister David Emerson

SECRET Advice to Ministers

Industry Canada: Department and Portfolio Overview

July 2004


TABLE OF CONTENTS

1. lndustry Canada Departmental Overview

2, lndustry Canada Legislative and Statutory Powers

3. Organizational Structure

A Senior Staff Biographies

......................... . ......... 5. The lndustry Portfolio Overview

6. Trends and Key Challenges of the Canadian Economy

7. Overview of Public Opinion Research

Hot Issues

Key Stakeholders

INDUSTRY CANADA LEGISLATIVE AND STATUTORY POWERS


Julv 2004

1. ~e~ar tmen t of lndustrv Act - Copy attached

Telecom and Privacy Leaislation Personal Information Protection and Electronic Documents Act - Part 1 Radiocommunication Act Telecommunications Act Teleglobe Canada Reorganization and Divestiture Act (specified functions) Telesat Canada Reorganization and Divestiture Act (policy role)

Market~lace and Trade Leaislation Agreement on Internal Trade Implementation Act Bankruptcy and Insolvency Act Boards of Trade Act Canada Business Corporations Act Canada Cooperatives Act Canada Corporations Act Companies' Creditors Arrangement Act Competition Act Government Corporations Operation Act Investment Canada Act (except for cultural businesses) Lobbyists Registration Act Canada Small Business Financing Act Winding-Up and Restructuring Act (Part I only)

Intellectual Prooerhr Leaislation Copyright Act Patent Act Trade-marks Act Industrial Design Act Integrated Circuit Topography Act Public Servants Inventions Act

SECRET

Consumer Leaislation Bills of Exchange Act (Part V: Consumer Bills and Notes) Consumer Packaging and Labelling Act Electricity and Gas Inspection Act Precious Metals Marking Act Textile Labelling Act Timber Marking Act Weights and Measures Act

Reaistrar General Functions Public Documents Act Public Officers Act Seals Act Trade Unions Act

Other Leaislation Canada Foundation for Innovation: Parts I and XI of the Budget Implementation Act, 1997

Laraelv Inactive or Minimal Involvement Atlantic Fisheries Restructuring Act (in respect of certain companies) Agricultural and Rural Development Act British Columbia Telephone Company Act (private act) Corporations and Labour Unions Returns Act Employment Support Act Industrial and Regional Development Act Pension Fund Societies Act Regional Development Incentives Act Small Business Investment Grants Act Special Areas Act

Department of Industry Act Page 1 of 10

Departmentef !.ndustry Act ( 1995, c. 1 Disclaimer: These documents are not the official versions (mwe). Source: http~flaws.justice.gc.calen/l-9.21text.html Updated to December 31,2003 Subject: Government Organization

Department of Industry Act

An Act to establish the Department of Industry and to amend and repeal certain other Acts

[Assented to 16th March, 1995)

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short tille

Department established

Minister

Regisbar General

Deputy Minister

Powers, du(ies and fundions

1. This Act may be cited as the Deparlment of industry Act.

ESTABLISHMENT OF DEPARTMENT

2. (1) There is hereby established a department of the Government of Canada called the De~artment of lnduslrv over which the Minister of lndustrv, a m ~ n t e d by conhssion inder the Great seal, shall preside

(2) The Minister holds ofice during pleasure and has the management and direction of the Department.

(3) The Minister is the Registrar General of Canada.

3. The Govemor in Council may appoint an officer called the Deputy Minister of Industry to hold office during pleasure and to be the deputy head of the Department.

PART l POWERS, DUTIES AND FUNCTIONS OF THE MINISTER

4. ( I ) The powers, duties and functions of the Minister extend to and include all matters over which Parliament has jurisdiction, not by law assigned to any other department, board or agency of the Government of Canada, relating to

(a) industry and technology in Canada;

(b) trade and commerce in Canada:

(c) science in Canada;

(d) consumer affairs;

Department o f Industry Act Page 2 of 10

(e) corporations and corporate securities;

(0 competition and restraint of trade, including mergers and monopolies;

(g) bankruptcy and insolvency;

(h) patents, copyrights, trade-marks, industrial designs and integrated circuit topographies;

(0 standards of identity, packaging and performance in relation to consumer products and services, except in relation to the safety of consumer g d s ;

Q legal metrology;

(k) telecommunications, except in relation to

(i) the planning and coordination of telecommunication services for departments, boards and agencies of the Government of Canada, and

(ii) broadcasting, other than in relation to spectrum management and the technical aspects of broadcasting;

(I) the development and utilization generally of communication undertakings, facilities, systems and services for Canada;

(m) investment;

(n) small businesses; and

(0) tourism.

Additional powers. (2) The powers, duties and functions of the Minister also extend to and include duties and fundons all matters over which Parliament has jurisdiction, not by law assigned to any other

department, board or agency of the Government of Canada, relating to regional economic development in Ontario and Quebec.

5. The Minister shall exercise the powers and perform the duties and functions assigned by subsection 4(1) in a manner that will

(a) strengthen the national economy and promote sustainable development;

(b) promote the mobility of goods, services and factors of production and of trade and commerce in Canada;

(c) increase the international competitiveness of Canadian industry, goods and services and assist in the adjustment to changing domestic and international conditions;

(d) encourage the fullest and most efficient and effective development and use of science and technology:

(e) foster and promote science and technology in Canada;

(0 strengthen the framework for the development and efficiency of the


Inspection services

Canadian marketplace;

(g) promote the establishment, development and efficiency of Canadian commun~catiins svstems and facilities and ass~st in the adjustment to changing domestic and international conditions;

(h) stimulate investment; and

(I) promote the interests and protection of Canadian consumers

6. In exercising the powers and performing the duties and functions assigned by subsection 4(1), the Minister shall

(a) initiate, recommend, coordinate, direct, promote and implement national policies, programs, projects and practices with respect to the objectives set out in section 5;

(b) Collect, gather, by survey or otherwise, compile, analyse, coordinate and disseminate information in respect of matters under the Minister's administration. as well as in relation to trends and develooments. both within and outside ~anada, in respect of those matters;

(c) promote, assist and provide support services for, and investment in, Canadian industry, goods, services, science and technology:

(d) oromote coooeration with the aovernments of Drovinces and their aaencies g"d non-governbental entities in Eanada and paiicipate, as appropria'ie. in the promotion of cooperation with agencies of other nations and international agencies; and

(e) take any action that may be necessary to secure, by international regulation or otherwise, the rights of Canada in communications matters.

7. The Minister shall provide the inspection services for the protection of Canadians that the Minister considers necessary for the enforcement of any Act under the Minister's administration, or as the Governor in Council may direct the Minister to provide, and may designate any person as an inspector for the purpose of providing those services.

PART I1 REGIONAL ECONOMIC DEVELOPMENT IN ONTARIO AND

QUEBEC Objectives in relation to regional

8. The Minister shall exercise the powers and perform the duties and functions development in assigned by subsection 4(2) in a manner that will Ontario and Quebec

(a) promote economic development in areas of Ontario and Quebec where low incomes and slow economic growth are prevalent or where opportunities for productive employment are inadequate;

(b) emphasize long-ten economic development and sustainable employment and income creation; and

(c) focus on small and medium-sized enterprises and the development and enhancement of entrepreneurial talent.

Department o f Industry Act Page 4 o f 10

Duties in relation to 9. (1) In exercising the powers and performing the duties and functions regional development in Ontarb and assigned by subsection 4(2), the Minister shall, with respect to regional economic Quebec development in Ontario and Quebec,

(a) in cooperation with other concerned ministers and boards and agencies of the Government of Canada, formulate and implement policies, plans and integrated federal approaches;

(b) coordinate the policies and programs of the Government of Canada;

(c) lead and coordinate the activities of the Government of Canada in the establishment of cooperative relationships with Ontario and Quebec and with business. labour and other public and private bodies; and

(19) collect, gather, by survey or otherwise, compile, analyse, coordinate and disseminate information.

Regulations

(2) In exercising the powers and performing the same duties and functions, the Minister may

(a) provide and, where appropriate, coordinate services promoting regional economic develooment in Ontario and Quebec indudina services to devel0~ - - - entrepreneurial talent. support local business associations, stimulate investment and support small and medium-sized enterprises in those provinces or any part thereof; and

(b) initiate, recommend, coordinate, direct, promote and implement programs and oroiects in relation to reaional economic develoornent in Ontario and - ~uebec'.

10. The Governor in Council may make regulations

(a) relating to policies, programs and projects referred to in section 9; and

(b) generally for carrying out the purposes and provisions of sections 8 and 9.

PART Ill POWERS, DUTIES AND FUNCTIONS OF THE REGISTRAR

GENERAL OF CANADA Powers, duties and func4ions

11. (1) The Registrar General of Canada shall register all proclamations, commissions, letters patent, writs and other instruments and documents issued under the Great Seal and all leases, releases, deeds of sale, surrenders and other instruments requiring registration.

Deputy Registrars General

(2) The Registrar General may appoint one or more Deputy Registrars General from among the officials of the Department and delegate to them such duties and functions as the Registrar General deems appropriate.

Powers (3) A Deputy Registrar General may sign and certify the registration of all instruments and documents required to be registered and all copies of those instruments and documents or of any records in the custody of the Registrar General that are required to be certified or authenticated as being copies of any such instruments, documents or records.


special statutory references

S p d a l assistance

Contents of order

12. Where in any special Act of Parliament enacted before December 21, 1967, any person is required to file or register any instrument of trust, mortgage. hypolhec, bond, suretyship, charge, lease, sale, bailment, pledge, assignment, surrender or other instrument, document or record or copy thereof, or any notice, in the office or department of the Secretary of State, the filing w registration required shall be made with the Registrar General unless the Governor in Council by order designates another office or department for such filing or registration.

PART IV GENERAL

13. (1) Where the Govemor in Council is of the opinion that it is in the national interest to do so, the Minister may, in exercising the powers and performing the duties and functions assigned by subsection 4(1), develop and implement programs and projects of special assistance to industries, particular industrial or commercial establishments, organizations, persons who are members of a particular category of persons defined by order of the Govemor in Council or - . . barticular persons to aid economic devdopment, whether through the restructuring. adiustina. rationalizlna. establlshinQ or reestablishing, modernizing, expanding or co;l~rac&~ of an industry or particilar industrial or ckmercial establishment or organization in Canada, or otherwise.

(2) Where the Governor in Council makes an order pursuant to subsection (I), the Governor in Council shall also specify or authorize, as the case may be, the actions described in subsection 14(1).

Financial assistance 14. (1) To facilitate the implementation of any program or project of the Minister under this Act, the Minister may

(a) make loans to any person;

(b) guarantee the repayment of, or provide loan insurance or credit insurance in respect of, any financial obligation undertaken by any person; and

(c) make grants and contributions to any person.

stock options (2) Subject to any regulations made under subsection (3), the Minister may acquire, exercise, assign or sell a stock option or other financial or similar instrument obtained as a condition under which a loan or contribution was made, guarantee given or loan insurance or credit insurance provided under subsection (1).

Regulations

Insurance a guarantee

(3) The Governor in Council may, on the recommendation of the Minister and the Minister of Finance, make regulations

(a) relating to loans that may be made, guarantees that may be given and loan insurance and credit insurance that may be provided under this section; and

(b) specifying the circumstances in which and the manner in which the Minister may acquire, exercise, assign or sell a stock option, or another financial or similar instrument, obtained as a condition under which a loan or contribution was made, guarantee given or loan insurance or credit insurance provided under this section.

(4) For greater certainty, loan insurance or credit insurance provided under


A m s s to certain informatian

Confidentiality

Exception

Further duties

Other powers

Fees for services or use of facilities

Amvnt not to exceed wst

Fees for pmducb. rights and privileges

Fees in respect of regulatory processes etc.

subsection (1 ) constitutes a guarantee for the purposes of the Financial Administration Act.

15. The Minister may, with the approval of the Governor in Council, establish advisorv and other committees to advise or assist the Minister or to exercise such powercand perform such duties and functions as the Governor in Council may specify, and may fix the remuneration and expenses to be paid to the members of the committees so established.

16. (1) The Minister of National Revenue shall, notwithstanding any other Act. on request of the Minister, make available to the Minister copies of invoices and other information collected under the Customs Act on goods imported into Canada and exported from Canada for the purpose of carrying out duties and functions of the Minister under paragraph 6(b).

(2 ) No person employed in the public service of Canada who comes into possession of information made available to the Minister under this section shall disclose any such information relating to a particular person, organization or business unless the disclosure is consented to in writino bv the oerson or - , organization or the owner of the business.

(3) Notwithstanding subsection (2) , in canying out duties and functions under paragraph 6(b), the Minister may publish lists of names and addresses of some or all importers or exporters of a product or group of products with trade values aggregated in such a manner as to protect the confidentiality of data concerning individual importers or exporters.

17. (1) The Minister, in exercising powers and performing duties and functions under this Act,

(a) shall, where appropriate, make use of the services, facilities, information and expertise of other departments, boards or agencies of the Government of Canada: and

(b) may consult with, and organize conferences of, representatives of provincial governments, business and labour and other public and private entities.

(2) In exercising the powers and performing the duties and functions under this Act, the Minister may enter into agreements with the government of any province or any agency thereof, or with any other entity or person, and may make disbursements up to an amount equal to the aggregate of the amounts to be contributed by all parties to the agreement, even before those amounts have been contributed.

18. (1) The Minister may, subject to any regulations that the Treasury Board may make for the purposes of this section, fix the fees to be paid for a service or the use of a facility provided by the Minister, the Department or any board or agency of the Government of Canada for which the Minister has responsibility.

(2) Fees for a service or the use of a facility that are fixed under subsection (1) may not exceed the cost to Her Majesty in right of Canada of providing the service or the use of the facility.

19. The Minister may, subject to any regulations that the Treasury Board may make for the purposes of this section, fix fees in respect of products, rights and privileges provided by the Minister, the Department or any board or agency of the Government of Canada for which the Minister has responsibility.

20. (1) The Minister may, subject to any regulations that the Treasury Board may make for the purposes of this section, fix fees in respect of regulatory

Department o f Industry Ac t Page 7 o f 10

Consunation

processes or approvals provided by the Minister. the Department or any board or agency of the Government of Canada for which the Minister has responsibility.

(2) Fees that are fixed under subsection (1) shall in the aggregate not exceed an amount sufficient to compensate Her Majesty in right of Canada for any reasonable outlays incurred by Her Majesty for the purpose of providing the regulatory processes or approvals.

21. (1) Before fixing a fee under section 18, 19 or 20, the Minister shall consult with such persons or organizations as the Minister con side^ to be interested in the matter.

(2) The Minister shall, within 30 days after the date on which the Minister fixes a fee under section 18. 19 or 20, publish the fee in the Canada Gazette and by such appropriate electronic or other means that the Treasury Board may authorize by regulation.

Reference to Scrutiny (3) Any fee fixed under section 18, 19 or 20 shall stand referred to the Cornminee Committee referred to in section 19 of the Statutory lnst~rnents Act to be reviewed

and scrutinized as if it were a statutory instrument.

Power to make regulations

22. The Treasury Board may make regulations for the purposes of section 18. 19.20 or 21.

PART V TRANSITIONAL AND RELATED AMENDMENTS, REPEALS AND

COMING INTO FORCE

Transitional

23. (1) Nothing in this Act shall be construed as affecting the status of an employee who, immediately before the coming into force of this subsection. occupied

(a) a position In the Department of Industry. Sclence and Technology, other than in that oortion of the Food Products Branch of that Deoartment relatina to - agri-food processing and manufacturing.

(6) a position in the Department of Consumer and Corporate Affairs, other than in the Product Safety Branch of that Department or in that portion of the Food Division of the Consumer Products Branch of that Department relating to agri- food and labelling, or

(c) a position in that portion of the public service in the Department of Communicat~ons referred lo in clause (a)(i)(B) of Order in Council P.C 1993- . .... , 1487 of June 25, 1993, registered as S1193-141, or in Order in Council P.C. 1993-1670 of August 18, 1993, registered as S1193-170,

except that the employee shall, on the coming Into force of this subseclion, occupy the~r position in the Department of lndustry under the authority of the Deputy Minister of lndustry

(2) Nothing in this Act shall be construed as affecting the status of an employee who, immediately before the coming into force of this subsection, occupied a position in lnvestment Canada (other than an employee who occupied a position in the Investment DeVelO~ment Division of Investment Canada or who oerformed duties and functions in'connection with that Division), except that the' employee


Definition of .employee.

Transfer of appmpnations

shall, on the coming into force of this Act, occupy their position in the Department of lndustry under the authority of the Deputy Minister of lndustry.

(3) In this section, "employee" has the same meaning as in subsection 2(1) of the Public Service Employment Act.

24. Any amount appropriated, for the fiscal year in which this section comes into force, bv an a ~ ~ r o ~ r i a t i o n Act based on the Estimates for that year for defraying the charges and expenses of the public service of Canada within the ~ e ~ a r i m e n t of Consumer and Comorate Affairs or the De~artment of lndustrv. Science and Technology and that, bn the day on which this Act comes into fo&e,is unexpen&d, is deemed, on that day, to be an amount appropriated for defraying the charges and expenses of the Department of lndustry.

Transfer of powers. duties and functions

25. (1) Wherever under any Act of Parliament, any instrument made under an Act of Parliament or any contract, lease, licence or other document, a power, duty or fundion is vested in or exercisable by any of the persons referred to in subsection (2) in relation to anv matter to which the powers, duties and functions of the ~inister 'df lndustry extend-by virtue of this Act, the power, duty or function is vested in or exercisable bv the Minister of lndustnr. the Deoutv Minister of lndusbv

Persons

~~ ~~ ~ ~~ ~~

or the appropriate officer &the ~ e h r t m e n t of l nd&y , as'th; case may be, un~ebs the Governor in Council by order designates another Minister. Deputy Minister or officer of the public service of Canada to exercise that power, duty or function. .

(2) For the purposes of subsection (1). the persons are:

(a) the Minister of Consumer and Corporate Affairs, the Minister of lndustry. Science and Technology, the Minister responsible for lnvestment Canada and the Minister of Communications:

(b) the Deputy Minister of Consumer and Corporate Affairs, the Deputy Minister of Industry, Science and Technology, the Deputy Minister of Communications and the President of lnvestment Canada; and

(c) any officer of the Department of Consumer and Corporate Affairs, the Department of lndustry, Science and Technology, the Department of Communications or lnvestment Canada.

Related Amendments

Access to Information Act

26. to 30. [Amendments]

Broadcasting Act

31. [Amendment]

Canada Corporations Act

32. [Amendment]

Department of Communications Act

33. and 34. [Amendments]

Department of Consumer and Corporate Affairs Act



Employment Support Act

39. [Amendment]

Financial Administration Act


Income Tax Act

44. [Amendment]

Investment Canada Act


Plant Breeders' Rights Act

52. and 53. [Amendments]

Privacy Act


Public Sector Compensation Act


Public Service Staff Relations ACI

60. [Amendment]

Salaries Act

61. [Amendments]

References

62. (1) and (2) [Amendments]

Other references (3) Every reference to the Minister of Consumer and Corporate Affairs or the Minister of lndustry. Science and Technology in any other Act of Parliament, other than the Hazardous Materials ln fmaf ion Review Act, the Hazardous Products Act and the Department of Consumer and Corporate Affairs Act, or in any order, reaulation or other instrument made under an Act of Parliament. other than those three Acts, shall, unless the context otherwise requires, be readas a reference to the Minister of lndustry.

(4) [Amendment]

63. (1) and (2) [Amendments]

Other references (3) Every reference to the Department of Consumer and Corporate Affairs and the Department of lndustry. Science and Technology in any other Act of Parliament, other than the Hazardous Materials Information Review Act, the Hazardous Products Act and the Department of Consumer and Corporate Affairs Act, or in any order, regulation or other instrument made under an Act of Parliament, shall, unless the context otherwise requires, be read as a reference to the Department of lndustry.

Department o f Industry Act

Coming inlo force

Replacement of 'prhlic service of Canada.

Page 10 o f 10

Repeals

64. to 66. [Repeals]

Coming into Force

'67. This Act or any provision of this Act comes into force on a day or days to be fixed by order of the Governor in Council.

'[Note: Act in force March 29, 1995. see Si195-48.1

AMENDMENT NOT IN FORCE

- 2003, c. 22, para. 224(z.26):

224. The expression "public service of Canada" is replaced by the expression "federal public administration" wherever it occurs in the English version of the following provisions:

(2.26) subsection 1q2) of the Department of Industry Act;

Co.nso!!datEtd.!ndex_of Statu!m!nstrume.n!$ LDecsmber .31,.20_03) Source hnp:/llaws.~uslicc.gc ca/en/index/l57962-13484hlml

DEPARTMENT OF INDUSTRY ACT [SC 1995 c. 1 ]

WINIST~RE DE L' INDUSTRIE (LOI))

Automotive Manufacturing Assistance Regulations, CRC. Vol. X, c. 966

(Aide a l'industrie des produits de l'automobile-RBglement)

Canada Cycle and Motor Company Limited Enterprise Development Regulations. SORl78-415

(Expansion des entreprises Canada Cycle and Motor Company Limited-RBglement)

Canadian industrial Renewal Regulations, SOW81-850

(Renouveau industriel canadien-RGglement)

s. 2, "Board", repealed, SOW86-718, s. 1

s. 2, "eligible manufacturing or processing activity", SOW82-119, s. 1; SOW84- 542. s. 1

s. 2, "external or other business", SORl82-404, s. 1; SOR182-643, s. 1; SOW86-718, s. 1

s. 2, "fabricant", SOW82-643, s. 1(F)

s. 2, "Minister", added, SOW86-718, s. 1

s. 2. "person", SOW85-278, S. 1

s. 2, "personne", SORl82-643, S. 1(F)

s. 2, "private lender", SOW86-718, s. 1

s. 2, "travaux de fabrication ou de transformation", SORl82-643, s. 1(F)

s. 3, SOR182-119, s. 2; SOW82-404, s. 2; SOR182-643, s. 2; SOW84-132, ss. l (A) and 2; SOR186-718. S. 2

s. 4, SOW82443, s. 3; SOR186-718. ss. 3 and 24

s. 5, SOR186-718. s. 24

s. 6, SORl82-643. s. 4(F); SOR186-718, ss. 4 and 24

s. 7, SOW86-718, s. 24

3. 8, SORl86-718, S. 5

s. 9, SORl86-718, s. 24

s. 10, SOW82-643, s. 5; SOW86-718, ss. 6 and 24

s. 11. SORl82-643, s. 6(F); SOR186-718, ss. 7 and 24

S. 12, SOW82-643, s. 7(F); SOW86-718, s. 8

s. 13, SOW86-718, ss. 9 and 24

s. 20, SOW86-718. ss. 12 and 24

s. 22, SORl86-718, s. 24

s. 23, SOR186-718. s. 24

s. 24, SOW82-643, s. 1 O(F); SOR186-718, s. 13

s. 25, SOW82-643, s. 11(F); SORl86-718. ss. 14 and 24

s. 26, SOW82-404, s. 3; SOW82-643, s. 12(F); SOR186-718, ss. 15 and 24

s. 27, SORl82-404, s. 4; SOR182-643, s. 13(F); SOW86-718. s. 16

s. 28, SOR182-404, s. 5; SOW82-643, s. 14(F); SOW86-718, s. 17

s. 28.1, added, SOW82-404, s. 6; SOW86-718, ss. 18 and 24

s. 29, SOW82-404, s. 7; SOR186-718, ss. 19 and 24

s. 30, SOW82-404, s. 7; SOW82-643, s. 15; SOR185-411, s. 1; SOW86-718, ss. 20 and 24

s. 30.1, added. SOW82-643, s. 16; SOR185-411, s. 2; SOW86-718, ss. 21 and 24

s. 31, SOR182-643. s. 17

s. 32, SORl86-718. ss. 23 and 24; SOW88-168, s. 1

s. 33. added. SOW86-190, s. 1

r olidated Computer Inc. Adjustment Assistance Regulations, CRC, Vol. X, c. 967

(Aide de transition B la Consolidated Computer 1nc.-Rdglement)

Consolidated Computer Inc. Enterprise Development Regulations. CRC, Vol. X, c. 968

hnp://laws.justice.gc.ca/en/index/l57962-13484.html

(Exception sur l'expansion des entreprise (Consolidated Computer Inc.)-R&lement)

Enterprise Development Regulations, CRC, Vol. X, c. 969

(Expansion des entreprises-Reglement)

s. 2, "application", added, SOW79-335, s. 1

s. 2, "Board", repealed. SOW83-708, s. 1

s. 2, "contribution", added, SOW79-335, s. 1

s. 2, "letter of credit", repealed. SOW79-335. s. 1

s. 2, "Minister", added. SOW83-708, s. 1

s. 2, "private lender", SORJ83-708. s. 1

s. 2, "restructure", SOW83-708. s. 1

s. 3, SORff9-335, s. 2; SOR183-708, s. 2

5.4. SOR178-504, s. 1; SOW79-335, s. 3; SORJ81-379, S. 1; SOR183-708, s. 2

s. 5, SORl79-335, s. 4; repealed, SOW83-708, s. 2


s. 7, SOW9-335, s. 6; repealed, SOW83-708, s. 2

s. 8, SORff9-335, s. 7; repealed, SOW83-708, s. 2

s. 9, SORl79-335, s. 8; repealed, SORJ83-708, s. 2

s. 10, SORJ79-335, s. 9; repealed, SOW83-708, s. 2


s. 12, SOR179-335, s. 11; repealed. SOW83-708, s. 2

s. 13, SORl79-335, s. 12; repealed, SORJ83-708, s. 2


s. 15, SORl79-335, s. 14; SOW82-877, s. 1; SOW83-341, s. 1; repealed. SOW83-708, s. 2

s. 38.1, added, SOW78-588. s. 2

s. 40.1, added, SOW92-162, s. 4

s. 42. added, SOfU79-335, s. 16

s. 43, added, SOW79-335. s. 16

s. 44, added, SOW79-335, s. 16; SOW80-116, s. 1; SOR180-116, s. 1; SORl80-142, S . 1; SOW80-540, s. 1; SOW81-120, s. 1; SOR181-379, s. 1; SORl82-152, s. 1; SOW82-154, S. 1; SOfU82-877. s. 2; SOR182-979, s. 1; SORl82-980, s. 1; SOR182- 1001, S. 1; SOW83-258, s. 1; SOW83-506, s. 1; SOW83-548, s. I; SOW83-708, s. 8;

SOW85-783, S. 1

s. 45, added, SOW81-858, s. 1; SOW83-708, s. 8

s. 46, added, SOW82-247, s. 1; SOW83-708, s. 8

Fwtwear and Tanning Industries Assistance Regulations, CRC, Vol. X, c. 970

(Aide aux industries de la chaussure et du tannage-R6glement)

Ford New Holland, Inc. Loan Regulations, SORI87-220

(Pret d Ford New Holland 1nc.-Reglement)

s. 3, SOW2000-267. s. 1(E)

s. 5, SOWZOOO-267, s. 2

s. 7, SOW94-235, s. 1; repealed, SOW2000-267, s. 3

General Adjustment Assistance Regulations, CRC, Vol X, c. 971

(Aide generale de transition-R&lement)

Metric Commission Order, CRC, Vol. X, c. 972

(Commission du syst&me metrique-Decret)

s. 2, S1182-25, S. 1

maceutical Industry Development Assistance Regulations, CRC, Vol. Ill, c. 337

(Aide au developpement de I'industrie pharmaceutique-Rwlement)

Ta_b!e.ofPub!ic~Sta.tulesand RmonsiUeMlnisterr !o Decem.k13_1,20_03) Source: http://laws.justice.gc.ca/enlpublawll56996-9452.html

Department of Industry Act -- 1995, c. 1

dinistdre de I'lndustrie, Loi sur le)

Minister of Industry; Minister of Industry, 5s. 4(2), 8 to 10, 13 to I 5 and 17 to 21, in relation to regional economic development in the Province of Quebec (SUS549 and SU96-16))

s. 11, 1999, c. 31, c. 72

s. 16,2003, c. 22, par. 224(~.26)(E)

s. 12,2001, c. 4. s. 73

Transitional. 1995, c. 1, ss. 23 to 25

CIF. 1995. c. 1 in force 29.03.95 see S1/95-48

CIF. 1999, c. 31, s. 72 in force on assent 17.06.99

CIF. 2001, c. 4, s. 73 in force 01.06.2001 see SV2001-71

CIF, 2003, c. 22. s. 224 comes into force on a day or days to be fixed by order of the Govemor in Council sees. 286. Not in force 31.12.2003

July 2004

Organizational Structure SECRET Advice to Ministers

Minister of lndushy I

Cahy Dovnes Nick Hesdline Td: 613"HI-l(97 Td' 611-943-7019 Td. 611-911.7021

* Reports to the Deputy Minister for adminishative and financial purposes and reports to Parliament via the Minister in respect of independent law enforcement role.

SENIOR STAFF BIOGRAPHIES SECRET Advice to Ministers

Julv 2004

Suzanne Hurtubise, Deputy Minister

Serge Beaudoin, Senior Advisor, Deputy Minister's Office

Carole Swan, Associate Deputy Minister

Rick Rinholm, Senior Advisor, Associate Deputy Minister's Office

Sheridan Scott, Commissioner of Competition, Competition Bureau

Michael Binder, Assistant Deputy Minister, Spectrum, lnformation Technologies and Telecommunications

Mary Carman. Associate Assistant Deputy Minister, Spectrum. Information Technologies and Telecommunications

David Fransen, Assistant Deputy Minister, lndustry

John McBride, Assistant Deputy Minister, Operations

Rachel Larabie-LeSieur, Associate Assistant Deputy Minister, Operations

Renee St-Jacques, Senior Assistant Deputy Minister, Policy

Pierre Legault, Senior General Counsel, Industry Canada Legal Services

Michael Nelson, Assistant Deputy Minister, Comptrollership and Administration

Michael Jenkin, Director General, Office of Consumer Affairs

Diane Fulford, Chief lnformation Officer, Chief lnformation Office

J.G. (Geny) Turcotte, President, Communications Research Centre

Jeffrey N. Parker, Executive Director, Technology Partnerships Canada

Bill Cleevely, Executive Director, Industry Portfolio Office


. Cathy Downes, Director General, Human Resources

Nick Heseltine, Director General, Communications and Marketing

John Butler, Corporate Secretary

Robert Andras, Visiting Executive

Suzanne Hurtubise Deputy Minister


Phone Number: (613) 9924292

Professional Experience

May 2004 - Deputy Minister, Industry Canada

2003 - 2004 . Deputy Minister. Environment Canada

1999 - 2003 Ambassador and Permanent Representative of Canada to the Organization for Economic Co-operation and Development in Paris

1995 - 1999 Deputy Minister of Canadian Heritage then Special Advisor to the Minister of Canadian Heritage

19% - 19% . Associate Secretary to the Cabinet, Privy Council Office

19% - 19% . Deputy Secretary to the Cabinet (Plans and Consultation). Privy Council Office

1991 - 1993 . Deputy Secretary (Constitutional Affairs). Federal-Provincial Relations Office

1990 - 1991 . Assistant Deputy Minister. Corporate Policy and Strategic Planning, Department of Consumer and Corporate Affairs

1988- 1990 . Director General. Surface Policy and Programs. Department of Transport

I986 - 1988 . Director of Operations. Economic and Regional Development Policy, Privy Council Office

1985 - 1986 . Assistant Director. Social Policy Division, Department of Finance

1982 - 1985 . Chief, 6 8 5 Program, then Director, Consultations Division. Department of Finance

1981 - 1982 . EwnomisUAsslstant Secretary of the Board. Canadian Industrial Renewal Board

1976 - 1981 . Economist with the Department of Finance and later with the Quebec National Assembly

Education . B.A. (Economics), Carleton Universtty . M.A. (Economics). Carleton University

Serge Beaudoin Senior Advisor, Deputy Minister's Office


Phone Number: (61 3) 943-7038

rofessional Experience

004- 0 Senior Advisor, Deputy Minister, lndustly Canada

003-2004 a Senior Advisor to the Deputy Minister, Environment Canada

2001 -2003 Director, Corporate Secretariat, Environment Canada

1998-2000 Senior Advisor to the Assistant Deputy Minister, Minerals and Metals Sector, Natural Resources Canada

1996-1998 a Ministerial Briefings Coordinator, Deputy Minister's Ofrice. Natural

Resources Canada

1993-1996 Environmental Assessment Officer, Natural Resources Canada (while in law school)

1995 a Articled - Malo and Associates (Law firm)

1987-1993 Various positions in Human Resources Sector of Natural Resources Canada (while in university)

1993-1 996 e Managed Kosmos Enr., small business promoting education and

awareness in science and technology. (part-time, while in law school)

Education

a Bachelor of Science (Biology). Carleton University Licence in Civil Law, University of Ottawa, Member of Quebec Bar Association

Carole Swan Associate Deputy Minister


7 Phone Number: (613) 943-7164


2002-Present . Associate Deputy Minister, Industry Canada

1999-2002 Associate Secretary, Treasury Board Secretariat

1996-1 999 - Assistant Secretary, Economic Sector, Treasury Board Secretariat

1991-1996 Director, Environment and Transportation Division, then Senior Director, Industry Division, Economic Sector, Treasury Board Secretariat

1990-1991 0 Director General, Corporate Services, Office of Privatization and

Regulatory Affairs

1987-1 990 Officer, Economic and Regional Development Secretariat, Privy Council Office

1985-1 987 Senior Analyst, Policy Branch, Department of Regional and Industrial Expansion

1981-1984 . Senior Analyst, Ministry of State for Economic and Regional Development

1979-1981 Director, Economic Research and Analysis. Status of Women Canada

1978-1979 Policy Analyst. Broadcasting and Social Policy Branch, Department of Communications

1975-1 977 Economist with the Department of Continuing Education and Manpower; the Department of Industry and Commerce; and the Manitoba Economic Development Advisory Board, Government of Manitoba

Education

Masters degree in Economics, University of Manitoba Bachelors Honours degree in Economics, University of Manitoba

Rick Rinholm Senior Advisor, Associate Deputy Minister's Office


Phone Number: (613) 943-7045


Varied experience in the federal public service (with a focus on policy development, analysis and advice) including:

Agriculture Canada Finance Canada Treasury Board Secretariat Industry Canada

Education

Masters of Science in Agriculture Economics. University of Saskatchewan

Bachelor of Science in Agriculture, University of Saskatchewan

Sheridan Scott SECRET Advice to Ministers

Commissioner of Competition, Competition Bureau

Phone Number: (819) 997-3301


January 2004 - Commissioner of Competition, Competition Bureau

1999 - 2003 Chief Regulatory Officer. Bell Canada

1998- 1999 Vice-president, Oftice of the President, Bell Canada

1994-1998 Vice-President. Multimedia Law and Regulation, Bell Canada

1993-1 994 Vice-President, Planning and Regulatory Affairs, Canadian Broadcasting - Corporation

1992-1 993 0 Assistant Vice-president, Planning 8 Corporate Development, Canadian

Broadcasting Corporation

1990-1992 Senior Legal Counsel, Canadian Radio-television and ~elecommunications Commission

1991-1992 a Part-time professor. Department of Law, Carleton University

1990-1991 Part-time professor, Faculty of Law, University of Ottawa

1983-1990 Legal Counsel, Canadian Radio-television and Telecommunications Commission

1981-1982 Law Clerk to the Right Honourable Bora Laskin, Chief Justice of Canada

1973-1978 a Officer, Research Grants Section, Social Sciences and Humanities

Research Council, Ottawa

Education Admitted to the Bar of the Law Society of Upper Canada on April 13. I983

0 L.L.B.. University of Victoria a B.A. (Hons) in Psychology, McGill University

Bachelor of Science, College Marie de France

Dr. Michael Binder Assistant Deputy Minister, Spectrum, Information Technologies and Telecommunications


1 Phone Number: (613) 998-0368


July 1993 - present a Assistant Deputy Minister, Spectrum, Information Technologies and

Telecommunications, Industry Canada

1990 - 1993 a Senior Assistant Deputy Minister, Department of Communications

I985 - 1990 . Assistant Deputy Minister, Corporate Management, Department of Communications

1981 - 1985 a Director, Program Evaluation. Office of the Comptroller General of

Canada

1971 - 1981 a Various positions in the Canada Mortgage and Housing Corporation, the

Ministry of State for Urban Affairs, and the Defence Research Board

Education

Ph.D. (Physics), University of Alberta

Mary Carman Associate Assistant Deputy Minister, Spectrum, Information Technologies and Telecommunications


1 Phone Number: (61 3) 993-6857

Professional Experience . Director of Operations, Privy Council Office, providing policy advice to the Prime Minister and other senior government officials and support to the Cabinet Committee for the Economic Union (CCEU) . Director General, Human Resources. Environment Canada, reporting directly to the Deputy Minister and providing corporate HR services, regional functional direction, and departmental leadership and support to pursuit of Public Service HR goals

Special Advisor to Deputy Minister. Health Canada advising on policy, scientific and regulatory issues

Managed the Bureau of Pharmaceutical Assessment at Health Canada, a complex scientific program

Contributor to several external steering committees and advisory panels on medical and pharmaceutical issues

Education . 1976 - Bachelor of Pharmacy (B.S. Ph.), University of Iowa

1976 - Registered, Pharmaceutical Examining Board of Canada

David Fransen Assistant Deputy Minister, Industry Sector

SECRET ~ d v i c e to Ministers , Phone Number: (61 3) 954-3798


Since 1960. David has enjoyed a variety of careers in the public service. He has served as an historian at the departments of Finance and National Defence.

He has been a security and intelligence analyst with the Solicitor General and the Privy Council Office (PCO). From 1990-95, he provided environmenial policy advice at PCO.

He joined lndustry Canada in 1995 as the Director of Economic Framework Policies, moving in 1997 to become the Director General of the Office of Consumer Affairs.

In 1999, David joined Health Canada as the Director General of the Centre for Healthy Human Development, returning to lndustry Canada in 2001 as Associate Assistant Deputy Minister in the Spectrum, Information Technologies and Telecommunication Sector.

David became Assistant Deputy Minister of the lndustry Sector on March 03, 2003.

Education

David has a Bachelor of Theology degree from Canadian Mennonite Bible College (Winnipeg. 1974), a BA (1976) and MA (1977) from the University of Waterloo, and a PhD in History from the University of Toronto (1984).

John McBride Assistant Deputy Minister, Operations Sector


t.bT Phone Number: (613) 957-4392 ~. . ,- ;*-.,*:' .

':' Professional Experience

Mr. McBride has held the position of Assistant Deputy Minister, Operations Sector, since September 2002.

a Before he was appointed Assistant Deputy Minister, Mr. McBride was responsible for Industry Canada's regional offices, delivering departmental services across the country, as well as for Aboriginal Business Canada.

r Prior to his appointment to Industry Canada. Mr. McBride worked for the Australian Federal Government on an executive interchange assignment.

He previously served in several senior positions at the Treasury Board Secretariat, the Department of Finance, the Privy Council Office and the Federal Environmental Assessment and Review Office. Mr. McBride is known for his leadership qualities and for his tremendous sense of motivation.

Education

Graduate of the ADM Prequalification Process, he holds a Bachelor of Commerce degree from Carleton University where he was awarded the University Medal in Commerce as the top graduating student in 1984.

Rachel Larabie-LeSieur Associate Assistant Deputy Minister, Operations Sector


Phone Number: (613) 954-3405

Professlonal Experience

In December 2002, Ms. Larabie-LeSieur was appointed Associate Assistant Deputy Minister, Operations Sector, within Industry Canada.

Prior to this appointment, she was Director General. Communications. at the Department of Justice. Ms. Larabie-LeSieur worked from 1997 to 1999 in the Social and Cultural Sector of the Treasury Board Secretariat where she was Director of Heritage. Cultural Affairs and Housing. From 1991 to 1997, she was Deputy Director of Investigation and Research (Marketing Practices) in the competition Bureau at Industry Canada. Prior to that, she was Director of Compliance in the Corporations Directorate at Consumer and Corporate Affairs Canada where she also held the position of Departmental Secretary responsible, among other things, for the Access to Information Act and the Privacy Ad. She began her carreer in the Competition Bureau in 1981.

Education

. Graduate of the ADM Prequalification Process, Ms. Larabie-LeSieur holds a law degree from the University of Ottawa Faculty of Law (Civil Law Section). She has been a member of the Quebec Bar since 1980.

Renee StJacques Acting Senior ~ssistant Deputy Minister, Policy Sector


Phone Number: (613) 995-9605


Since joining the public service in 1984, Ms St-Jacques has held a number of positions as economist, policy advisor, director in all three central agencies, PCO, Finance and Treasury Board. Prior to assuming her current duties as acting Senior Assistant Deputy Minister, she was the department's Chief Economic and Director General of the Micro-Economic Policy Branch of the Policy Sector.

Education

MA in Economics from the University of Chicago.

Pierre Legault Senior General Counsel, Industry Canada Legal Services


Phone Number: (613) 952-2391


October 2002 - present Senior General Counsel, lndustry Canada Legal Services

2001 - 2002 Senior General Counsel. Commercial Law Division, lndustry Canada Legal Services

1998 - 2001 General Counsel. Commercial Law Division, lndustry Canada Legal Services

1993 - I998 Senior Counsel, Commercial Law Division, lndustry Canada Legal Services

1990 - 1993 Senior Counsel, Investment Canada Legal Services and Corporate Secretary and Access to Information and Privacy Coordinator, lnvestment Canada

Education

LL.B., University of Ottawa LL.L.. University of Ottawa Dipl. en communications. St. Paul University Admitted to the Barreau du Quebec

Michael Nelson Assistant Deputy Minister, Comptrollership and Administration


Phone Number: (613) 957-9288


November 2003 - present ADM, Comptrollership and Administration Sector, Industry Canada

2001 - 2003 Vice President, Transformation, Public Service Commission

I Vice-president, Learning & Development Programs Branch, Public Service Commission

1999 - 2001 I Vice-president, Corporate Management Branch. Public Service

Commission

1995 -1 999 I CEO, Canadian Forces Housing Agency

1991- 1995 Group Chief, Information Policies, Treasury Board Secretariat

1988 - 1991 I Executive Director, Osbaldeston Study on Organizing

1986-1988 Director Utilities and Municipal Services, National Defence

1985 - 1986 r Research Director, Osbaldeston Accountability Study

Education

- Bachelor of Applied Science, Royal Military College of Canada Master of Business Administration, University of Ottawa

Michael Jenkin Director General, Office of Consumer Affairs


Phone Number: (613 ) 954-3277


1995-1 998 r Director General, Strategic Planning and Corporate Services, Operations

Sector, lndustry Canada

1993-1 995 r Director General, Strategic Policy and Consultations, Industry and

Science Policy Sector, lndustry Canada

1990-1 993 r Director General, Industrial Competitiveness, Policy Sector, ISTC

1986-1 990 r Director. Economic Development Policy. DRIEIISTC

1984-1 986 r Assistant Director, Economic Development Policy, Office for Regional

Development

1983-1984 r Assistant Director, Regional Economic Development Policy, MSERD

1982-1 983 r Senior Policy Advisor, Industrial Development, FPRO

1977-1 982 Science Counsellor, Science Council of Canada

Education

0 Ph.D. Manchester University. Government (1977) MA (Econ.) Manchester University, Economics and Government

(1 974) BA (Hons.) Trent University, History, Politics and Economics (1972)

Diane Fulford Chief lnformation Officer, Chief lnformation Office


Phone Number: (61 3) 954-3574


2000 - 2001 a Director General - Proaram Manaaement Initiative. Human Resources -

Investment Branch, HRDC

1990 - 2000 Senior Director. Human Resources Development 8 Veterans Division. Social 8 Cultural Sector, TBS

1997 - 1998 Director General, Population Health, Health Policy 8 Programs Branch, Health Canada

1996 - 1997 a Interim Director General, Strategic Planning, Customs and Trade

Branch, Revenue Canada

Education

a Bachelor of Arts Degree, University of Ottawa a Public Executive Program (Feb. 2000), Queen's University

J.G. (Gerry) Turcotte President, Communications Research Centre (CRC)


I 1996-present r President, Communications Research Centre Canada (CRC), Ottawa

1984-96 r President and CEO. Ottawa Centre for Research and Innovation (OCRI)

1974-84 r Chairman, various academic departments at Ottawa's Algonquin College

including Electronics, Computing Science, Computing Engineering and Physics

1965-74 r Various positions including Manager of the Data Communications

Department. Computing Devices Canada in Ottawa

Education

r Honorary degree. Doctor of Engineering, Calleton University 9 Bachelor of Electrical Engineering. McGill University r Royal Military College graduate in Electronic Engineering

Current Board Memberships

National Capital Institute of Telecommunications (NCIT) executive 0 Ottawa Centre for Research and lnnovation (OCRI)

Jeffrey N. Parker SECRET Advice to Ministers

Executive Director, Technology Partnerships Canada (TPC)

7 Phone Number: (613) 941-6747


Executive Director, Technology Partnerships Canada. Industry Canada

1998 - 2001 r Director of Strategic Operations, Privy Council Office

1995 - 1998 r Senior Director, Treasury Board.

1993 - 19% r Chief, FederailProvincial/Social Secretariat, Department of Finance

1987 - 1993 r Ministers' Offices: DIAND, DND, Finance.

1973 - 1987 Various positions: Environment, DIAND.

Education

M.A., York University 0 B.A. (Hon.), Carleton University

Forestry, Lakehead University.

Bill Cleevely SECRET Advice to Ministers

Executive Director, Industry Pottfolio Office

Phone Number: (613) 954-891 1


1997 - 2000 8 Director, Industry. Science and Regional Development and Regulatory

Affairs Division, Economic Sector. Treasury Board Secretariat.

1995 - 1997 a Director. Environment and Transwrtation Division. Economic Sector.

program Branch, Treasury Board Secretariat.

1990 - 19% I Principal Analyst. Transportation Porlfolio, Economic Program Sector,

Program Branch, Treasury Board Secretariat.

1989 - 1990 r Senior Policy Analyst, Policy and Corporate Information Division, Crown

Corporations Sector, Program Branch, Treasury Board Secretariat.

I988 - 1989 a Senior Policy Analyst, Policy Coordination. Consumer & Corporate Affairs

I984 - 1988 a Senior Policy Analyst, International Initiatives. Regional Industrial

Expansion Acting Director. Small Business Policy, Regional Industrial Expansion

1982 - 1984 a Policy Analyst, Operations Branch. Ministry of State, Economic &

Regional Development

1980 - I982 r Senior Financial Ofker and member of the management committee, the

Conference Board of Canada

I976 - 1980 r Financial Planning Officer. Surface &Water Transportation. Transport

Canada

1974 - I976 Staff Accountant, Ernst 8 Ernst International Accountants & Consultants

Education

BComm, Loyola College, Montreal, 1973 Advanced courses in Finance &Accounting. McGill University 1973-1975

r Public Executive Program, Queen's University, February 2000

Cathy Downes Director General, Human Resources


Phone: (613) 954-5474


2000-present Director General, Human Resources, Industry Canada

1998-2000 Director General, Career Development Programs. Canadian Centre for Management Development (CCMD)

1993-1998 r Director General, Human Resources, Citizenship and Immigration

Canada

1990-1993 Director General, Human Resources, Justice Canada

1988-1990 r Task Force on Women in the Public Service

1986-1 988 Director, Corporate Services, Office of Privatization and Regulatoly Affairs

1983-1 986 Executive Assistant to the Associate Deputy Minister, Transport Canada

1974-1 983 Administration Trainee and Human Resources Officer, Canadian Coast Guard

Education

1974 - Bachelor of Arts (English), University of Western Ontario

Nick Heseltine Director General, Communications and Marketing


Telephone: (613) 947-2597


June 2001 - present Industry Canada Director General, Communications and Marketing.

2000 -June 2001 Citizenship, Culture and Recreation Ministry Communications Director - Toronto, Ontario

1996 - 2000 Canada Information Oftice Director General, Communications and Marketing - Ottawa, Ontario

1994 - I996 Fisheries and Oceans Director, Client Services - Ottawa, Ontario

1993 - 1994 lnformation Highway Advisory Council Director, Communication and Consultations - Ottawa, Ontario

1986 - 1994 Forestry Canada Director General, Corporate and Public Affairs - Ottawa, Ontario

1984 - 1986 Forestry Canada Corporate Secretary and Depattmental Assistant to the Minister

1977 - 1984 Environment Canada Special Assistant to the DM and other posts

Education

Dalhousie University - Halifax, NS Bachelor of Arts.

John Butler Corporate Secretary


Phone Number: (613) 943-7049


2004 r Corporate Secretary, lndustry Canada

2002-2003 r Special Advisor to the Deputy Prime Minister and Minister of Finance

2001-2002 r Chief of Staff to the Minister of Industry

1993-2001 r Departmental Assistant to the Minister of lndustry

1992-1 993 r Director. Federal Documents on Westray Mine Explosion

1991-1992 r Director. Planning and Central Services, Industry. Technology and

Regional Operations Sector, Industry, Science and Technology Canada

1990-1991 r Senior Advisor. PS 2000 PLUS Secretariat, Industry. Science and

Technology Canada

1990 r Principal, Goss Gilroy and Associates Ltd.

1987-1 990 r Director, Evaluation Directorate, Policy Sector, Industry. Science and

Technology Canada

1986-1 987 r Corporate Secretary. Director of Corporate Coordination, Department of

Regional lndustrial Expansion

1985-1986 r Executive Assistant to the Associate DM, Department of Regional

Industrial Expansion

1972-1985 Held various positions in federal line departments and central agencies

Education

B.A., English

Robert Andras Visiting Executive


Phone Number: (613) 943-7023


l n d u ~ t ~ Canada

4 January 2004 - present a Visiting Executive, Deputy Minister's Office , Industry Canada

PetroCanada

1997-2004 a Senior Director, Corporate Communications

1994 - 19970 a Planning Manager. Exploration 8 Production

1991 - 1994 a Controller, Petro-Canada Products

1985 - 1991 a Various upstream management positions, including Frontier Joint

Ventures, Exploration 8 Production

1977 - I985 a Manager, Economic Analysis, Corporate Planning

Govemment of Canada

1970-1 975 r Various positions. Health 8 Welfare, Secretary of State. Treasury Board

Education

Master of Public Administration, Harvard University 1976, Quantitative Analysis Program, Govemment of Canada 1974, Bachelor of Arls, McGill University 1970

Current Memberships

Member, Canadian Olympic Committee, Vice Chair, Canadian Paralympic Foundation, Member, Mount Royal College Advisory Commitee on Applied Policy Studies


Table of Contents

Overview (pages 3 to 6) Organizations

Atlantic Canada Opportunities Agency (page 7) Business Development Bank of Canada (page 9) Canadian Space Agency (page 11) Canadian Tourism Commission (page 13) Competition Tribunal (page 15) Copyright Board Canada (page 17) Economic Development Agency of Canada for the Regions of Quebec (page 19) Enterprise Cape Breton Corporation (page 21) National Research Council (page 23) Natural Sciences and Engineering Research Council (page 25) Social Sciences and Humanities Research Council (page 27) Standards Council of Canada (page 29) Statistics Canada (page 30) Affiliated Portfolio Organizations (page 32)

SECRET

Industry Portfolio - Serving Canadians Across Canada Advice to Ministers

A diversified group of 14 member organizations with over 18,600 staff and a total budget of $5.2 billion

Includes many of government's micro-economic levers

Has thousands of physical and virtual points of service (i.e. Canada Business Service Centres, Schoolnet, Strategis, and Business Gateway)

Provides national reach, regional depth and community presence

SECRET

The Industry Portfolio Advice to Ministers

National Organizations Crown Corporations QuasiJudicial Bodies Regional Agencies

Industrv Canada -1 Comoetition 1 I Atlantic Canada

Statistics Canada (SC)

1 6 C, I ' B a n k o f c a n a d a i ~ ~ ~ ) I I Tribunal (CT)

Canadian Space Agency (CSA)

.

Natural Sciences Engineering Research

Council (NSERC)

I Opportunities Agency (ACOA) I

Social Sciences and Humanities Research

Council (SSHRC)

of Canada for the Regions of Quebec (EDAGQ)

Western Economic Diversification Canada (WD)*

Federal Economic Development Initiative for Northern

Ontario (FedNor)**

Associated Arm's Length Organiutions

Canada Foundation for Innovation (CFI) Genome Canada

Millennium Foundation Tmdeau Foundation

WeUem Emnmic Diver~ifieationCaneda is m an ollicial membcr offhe Portfolio (as of Dmrmber 12.2003) *. Pan of l n d m Cawis


Portfolio Management

The key to Portfolio management is to derive the full benefit of efforts of all Portfolio members in support of the Minister of lndustry and the government's priorities

The Minister of Industry is the senior Minister responsible for the Portfolio, supported by the lndustry Canada Deputy Minister, who is the Minister's lead policy advisor on all matters

Includes the direct involvement of other Portfolio Ministers, Parliamentary Secretaries, Deputy Ministers, and Presidents


Atlantic Canada Opportunities Agency (ACOA)

President - Monique Colette

Mandate - ACOA has a broad mandate to support and promote opportunity for economic development in Atlantic Canada.

Strategic Priorities a Innovation - strengthen innovative capacity and competitiveness; develop

clusters a Trade, Investment and Tourism - increase export capabilities and foreign

investment a Entrepreneurship and Business Skills Development - provide tools (education)

and business environment for entrepreneurship 8 Community Economic Development (CED) - build community capacity; access

to capital; and empower CED activities a Policy, Advocacy and Coordination - ensure national policies and programs

reflect Atlantic interests


Atlantic Canada Opportunities Agency (ACOA)

Major Challengesllssues Innovation Capacity and Linkages - stimulate capacity and ensure partnerships between industry, communities and universities/colleges

D Productivity - invest in skills development; adopt advance technologies; increase R&D

8 Technology adoption - improve tech transfers; increase SME technology adoption

D Immigration - need to meet future labour market demands D Transportation - develop region's corridors and gateways; improve access to

markets D Fisheries - decline of resources and impacts on fishers, sector and communities

Resources: Staff: Main Estimates Budget:


Business Development Bank of Canada (BDC)

Acting President - Andre Bourdeau

8 Mandate - BDC supports Canadian entrepreneurship by providing financial and consulting services. In carrying out its activities, the Bank must give particular consideration to the needs of SMEs.

Corporate Objectives 0 Create a unique and valued relationship with Canadian SMEs to support their

creation and accompany their growth 0 Foster an internal culture of engagement, learning and growth a Establish effective and efficient processes to support local market understanding a Be profitable to grow while fulfilling its public policy mandate

Key Challenges a Establish value-based relationships with Canadian entrepreneurs a Encourage Canadian SMEs to innovate and support them in their investment

decisions


Business Development Bank of Canada (BDC)

Key Challenges - Cont'd r Accompany the growth of Canadian SMEs from "S"mal1 to "M"edium by

providing the right support, when and how it is needed r Improve the management and leadership capacity of Canadian entrepreneurs r Develop high calibre effective leadership to ensure the continued success of the

Bank r Leverage existing mechanisms to efficiently enhance BDC's reach and ability to

serve Canadian SMEs I Ensure the availability of value-added equity to create knowledge industries that

will be the global leaders of tomorrow

Resources: Staff: Asset Base: Loans and Investments: Total Portfolio: Appropriations

BDC is a Crown corporation

2003104 1,200 FTEs $6,897.2 M $ 1,848.1 M $8,799 M $ 0

2004105 1,400 FTEs $ 7,791 M $2,125 M $ 9,947.9 M $ 0



President - Marc Garneau

Mandate -To promote the peaceful use and development of space, to advance our knowledge of space through science, and to ensure that space science and technology provide social and economic benefits for Canadians.

Strategic Priorities r Realigning the Canadian Space Program along four business lines (Earth

Observation, Space Science and Exploration, Satellite Communications, Space Awareness and Learning) Taking advantage of new opportunities to further federal priorities within these business lines

r Meeting the needs of the federal government and Canadians r Maintaining Canada's stature as an advanced and innovative nation

Positioning (and branding) Canada on the world stage



Major Challengesllssues B Determining the appropriate size of the Canadian Space Program to ensure that

Canada benefits from space in order to further federal objectives B Addressing the dual use issue - Civilian and Military



Canadian Tourism Commission (CTC)

President - Michele McKenzie

Mandate - To sustain a vibrant and profitable Canadian tourism industry; market Canada as a desirable tourist destination; support a cooperative relationship between the private sector and the governments of Canada, the provinces and the territories with respect to Canadian tourism; and, provide information about Canadian tourism to the private sector and to the governments of Canada, the provinces and the territories.

Strategic Priorities: 0 Improve competitiveness and ensure high return on investment (achieve critical

mass in some markets) 8 Create new opportunities for partners (aggressive campaigns to position

Canada as an exciting destination) Review the Canada Brand Focus activities in markets with highest potential on investment

0 Make the tourism industry more resistant to future shocks r Achieve overall excellence in Canada's tourism sector


Canadian Tourism Commission (CTC)

Major Challengesllssues 8 Canadian tourism competitiveness and declining market share

"Canada Brand" is fading Marketing funds declining

r Canada's balance of trade deficit in tourism is expected to increase over the next five years

8 International travel inhibited by: slowdown in the global economy; the fluctuation in exchange rates, and the shocks to the system since 2001 (i.e, terrorism, SARS) In order to help the industry return to previous levels of performance and address foreign competition in tourism, the CTC is seeking a $25 million increase in its annual appropriation - an amount that could be matched by industry partners

Resources: Staff: One Time (SARS) Total Budget: Appropriations:

CTC is a Crown corporation


Competition Tribunal (CT)

Chairperson - The Honourable Justice Sandra J. Simpson

Mandate - To hear applications and issue orders related to the civil reviewable matters as set out in the Competition Act.

Strategic Priorities 8 Provide a court of record to hear and determine, as informally and expeditiously

as circumstances and consideration of fairness permits, applications under Parts V1I.I and Vlll of the Competition Act Provide a Registry service that provides administrative support to Tribunal members and litigants and also provides timely access to case records and decisions


Competition Tribunal (CT)

Major Challenges 8 Advance notice of applications - it must be ready to respond quickly and in a

timely manner 8 Amendments to the Competition Act have generated more cases and

increased the Tribunal's mandate Case time lines are mostly driven by the litigants rather than by the Tribunal

8 Continue enhancing and implementing technologies within a legal environment 8 Increasing costs of services and demands placed on a small agency



Copyright Board Canada (CB)

Chairman - The Honourable Justice William J. Vancise

Mandate - To establish, either mandatorily or at the request of an interested party, the royalties to be paid for the use of copyrighted works when the administration of such works is entrusted to a copyright collective society.

Strategic Priorities 0 Improving the efficiency of the regulatory process 0 Achieving fair decision-making to provide proper incentives for the creation and

use of copyrighted works


Copyright Board Canada (CB)

Major Challenges I The Copyright Board of Canada deals with complex social, cultural,

demographic, economics, advanced computer communications technobgy (e.g. the use of music over the Internet) and technological issues (e.g. blank CDs, electronic systems to protect music)

1 The impact of the Board's decisions is estimated to be over $300 million annually. The stakes are considerable both for copyright holders and for users of copyright. Consequently, interventions before the Board are thorough and sophisticated involving expert witnesses, litigation specialists and detailed econometric, business and financial studies, surveys and evidence


Economic Development Agency of Canada for the Regions of Quebec (EDAC-Q)


Deputy Minister - Michelle d'Auray

Mandate - To promote economic development for the regions of Quebec.

Strategic Priorities

Innovation/Knowledge Economy Community Adjustment challenges - promote projects in resource regions Social Economy - contribute to social economy enterprises and increase their capacity building and access to capital

Economic Development Agency of Canada for the Regions of QU~~~C- (EDAC-Q)


Major Challenges

Implementation of Social Economy measures - enterprise assistance programs; capacity building initiatives; and regional patient capital pilots Program renewal - i.e. sunsetting Canada Jobs Fund, IDEA-SME and Regional Strategic Initiatives (RSI) funding Federalprovincial relations - more cooperative federalism, but still from the standpoint of Quebec approaches and structures

Resources:

Staff: Main Estimates Budget:


Enterprise Cape Breton Corporation (ECBC)

President - Monique Collette (also the ACOA President)

Mandate - ECBC promotes and assists, either alone or in conjunction with any person or the Government of Canada or of Nova Scotia or any agency of either of those governments, the financing, and development of industry on Cape Breton Island to provide employment outside the coal producing industry and to broaden the base of the economy of Cape Breton Island.

Strategic Priorities Support to Business - access to capital for commercial enterprises Support to Communities - community development project assistance Investment -attract new business investment to the region Advocacy - advocate for the region's interests in government decisions Policy and Research DeliveryIServices Agent for Government Services - deliver programs and services to increase coordinated government approach to the region's development


Enterprise Cape Breton Corporation (ECBC)

Major Challenges r Clean up of the Muggah Creek Watershed (Tar Ponds) - May 2004 federal-

provincial commitment of $400M r The Cape Breton Regional Municipality - examination of governance options to

enhance economic stability of the region r Transportation - air service reduced; local rail service in jeopardy; road

transportation not upgraded

Resources: Staff: ACOA Programming: Total Budget: Appropriations:

ECBC is a Crown corporation


National Research Council (NRC) -

Acting President - Michael Raymont

Mandate - Under the National Research Council Act, the NRC is responsible for: undertaking, assisting or promoting scientific and industrial research in different fields of importance to Canada; investigating standards and methods of measurement; working on the standardization and certification of scientific and technical apparatus and instruments and materials used or usable by Canadian industry; operating and administering any astronomical observatories established or maintained by the Government of Canada; administering the NRC's research and development activities; providing vital scientific and technological services to the research and industrial communities; and establishing, operating and maintaining a national science library and publishing scientific and technical information.


National Research Council (NRC)

Strategic Priorities Building Technology Clusters - vehicle for regional innovation, government- industry collaboration and technology-based economic growth

8 SME Growth and Commercialization of Publicly Funded Research - develop new tools to encourage commercialization of publicly funded research in partnership with private and public sector organizations and universities

Major Challengesllssues 8 Renewed ABase to deal with increased cost of utilities, taxes 8 Renewed Funding for Atlantic Technology Clusters (sunset 2004105) 8 Focus NRC-IRAP on SME Growth and Commercialization of Research r Responding to Auditor General's report on the role of NRC's Council

Resources: 2003104 Staff: 3,643 Main Estimates Budget: $ 645.9 M

Natural Sciences and Engineering Research Council (NSERC)


President - Thomas A. Brzustowski

Mandate - promote and assist research in the natural sciences and engineering, other than the health sciences; and advise the Minister in respect to such matters relating to such research as the Minister may refer to the Council for its consideration.

Strategic Priorities -

People - ensure Canadians are equipped with the skills and knowledge to be globally competitive in the knowledge-based economy Discovery - NSERGfunded research leads to creation of new value-added products, processes, services and helps determine policies, standards and regulations Innovation - facilitate the development and exchange of knowledge, technology and people

Natural Sciences and Engineering Research Council (NSERC)


Major Challenges 1 Providing research funding for the large numbers of new professors being

hired by universities 1 Doubling graduation rates at the Master's and Doctoral levels 1 Ensuring curricula equip graduates with appropriate professional skills 1 Maximizing the return on federal investments in research 1 Facilitating the commercialization of university research

Fostering greater university-industry collaboration


Social Sciences and Humanities Research Council (SSHRC)


-

President - Marc Renaud

Mandate - promote and assist research and scholarship in the social sciences and humanities and to advise the Minister of Industry regarding such matters related to research as the Minister may refer to the Council for its consideration.

Strategic Priorities r Maintaining and enhancing excellence in research and research training r Addressing strategic knowledge gaps in key areas of concern to society r Promoting knowledge mobilization and partnerships with research users

Acting as an effective knowledge broker for users of research results r Contributing to the Government of Canada's policy research and innovation

policies

Social Sciences and Humanities Research Council (SSHRC)


Major Challenges SSHRC's transformation -from a granting agency to a "knowledge council" major consultation just completed Development and implementation of SSHRC's new strategic priority areas Research capacity of smaller universities


" 04105 budget includes $245 million Indirect Costs amount from Budget 2004, also the supplementary estimates for 03/04 added $225 million for the Indirect Costs program.


Standards Council of Canada (SCC)

Executive Director - Peter Clark

Mandate - to promote efficient and effective standardization in Canada.

Strategic Priorities 8 SCC activities are guided by the Canadian Standards Strategy (CSS), a

blueprint for standardization activity in Canada. The purpose of the strategy is to provide direction and leadership on how to use standardization to best advance the social and economic well being of Canadians in a global economy

Major Challenges Implementation of the Canadian Standards Strategy

Resources: Staff: Total Budget: Appropriations:

SCC is a Crown corporation

2004105 89 Not yet available $6.9 M



Chief Statistician - Ivan Fellegi

Mandate - To collect, compile, analyse and publish statistical information on the economic, social and general conditions of the country and its citizens. Statistics Canada is also mandated to provide coordination and leadership for the country's statistical system. Other federal legislation also requires Statistics Canada to produce data for specific purposes as designated within these acts.

Strategic Priorities 8 Relevance of its programs in meeting users' current and emerging needs 0 Accuracy of its information through sound statistical methodology a Timeliness of its information releases 0 Accessibility of its information (i.e. ease of access to its products and services) 0 Interpretability of its information through descriptions, technical notes and

metadata 0 Coherence of its information through use of international classification standards 0 Control of its reporting burden on Canadians r Sustainability of its delivery infrastructure



Major Challengesllssues i Secure funding for the Data Gaps ll initiative for the period 2004 to 2008 i Prepare for the 2006 Censuses of Population and Agriculture i Complete the dissemination of the results of the Post-Censal Surveys i Continue work on the Environment Statistics Program i Socio-Economic Information on First Nations



Affiliated Portfolio Organizations

The four Industry Portfolio affiliated independent "arms-length" organizations are:

Canada Foundation for Innovation (CFI) 0 CFI has the mandate to contribute to the capital costs of research infrastructure

projects in Canada 0 CFl's funds are invested in partnership with institutions and their partners from

the public, private and voluntary sectors. On average CFI contributes 40 per cent of the total eligible project costs

m Government investment to 2002103: $ 3.15 B plus an additional $500 M in Budget 2003

0 Expenditures 2002103: $ 332.4 M (2001102: $239.1 M)

Genome Canada ' The objective of Genome Canada is to enable Canada to become a world leader in selected areas of genomics research by bringing together consortia to deliver genomics research, technology platforms and major genomics projects

m Government investment to 2002103: $ 375 M plus an additional $60 M in Budget 2004

0 Expenditures 2002103: $65.2 M (2001102: $48.1 M)


Affiliated Portfolio Organizations

Canada Millennium Scholarship Foundation r A non-profit organization announced in the 1998 Federal Budget as part of the

Government of Canada's economic plan to help students acquire the knowledge, skills, and qualifications needed to compete in the global economy and build a brighter economic future for Canada

r Government investment to 2002: $2.5 B r Expenditures 2002: $0.3 M (2001: $0.3 M)

The Pierre Elliott Trudeau Foundation The Foundation seeks to promote outstanding research in the social sciences and humanities, and to foster a fruitful dialogue between scholars and policymakers in government, business, the voluntary sector, the professions and the arts community Government investment to 2002103: $ 125 M Expenditures 2002103: $2.9 M (2001102: $ 0.2 M)

Outline SECRET Advice to Ministers

Economic Conditions and Prospects

Macroeconomic Trends

Industrial Trends

Trade and Investment

Key Challenges

Productivity and Innovation

Human Capital

Marketplace Framework

Regional Development

Wrap Up

Canada's economic growth will increase in 2004 and 2005 SECRET Advice to Ministers

Real GDP grew at an average annual rate of 2.7% between 1996 and 2003, more than double its pace between 1981 and 1996.

In 2003, real GDP growth was 2.0 percent, down from 3.4 percent in 2002, due to a series of unanticipated shocks which impacted the Canadian economy.

Private sector forecasters expect growth of 2.9 percent in Canada this year and 3.3 percent in 2005 as improving global economic conditions, particularly in the United States, bode well for the Canadian economy.

Real GDP Growth (in percent) 5.5 , ,

-0.7

98 99 00 01 02 03 4 1 2 3 4 1 Source: Stat~stics Canada 03 04

G-7 Comparisons of Consensus GDP Growth Forecasts (in percent)

L

Canada US. Japan U.K. France Germany Italy

Source: Consensus Forecasts, June 2004

Canada's employment growth has been strong SECRET Advice to Ministers

Employment Index 1 998=l 00 Employment grew at an average annual

rate of 2.3 percent from 1997 to 2003, representing more than 300,000 new

114 jobs per year.

110 Job growth during the latter part of the 1990s was steady and widespread

lo6 across sectors. Total

102 - Se N ices In the past few years the services sector + Manufacturing has outperformed the manufacturing

98 sector. Manufacturing employment is 1998 1999 2000 2001 2002 2003 2004

expected to firm up. Source: Statistics Canada

According to the OECD, Canada's employment growth in 2004 will be 1.7 percent (the best performance of the G-7 countries) and 1.5 percent in 2005.

Inflation remains under control SECRET Advice to Ministers

Monetary policy is directed toward maintaining inflation at 2 percent, the mid-point of the target range set by the federal government and the Bank of Canada.

"Core" inflation, which excludes the eight most volatile components of the Consumer Price lndex (CPI) has averaged 1.9 percent from 1992 to 2003.

CPI inflation was 1.8 percent over the same time period.

The OECD expects inflation in Canada to fall to I .I percent in 2004 and 1.7 percent in 2005.

Consumer Price lndex (in percent)

.. . . . . . . .. . . .. . . .. . . . . . . . . . .. . . .. . . . . , , . . . . . . . . .. .. ... . . . .. , ... . . . . . . . ... .. ..

989900010203 A M J J A S 0 N D J F M A M

Source: Statistics Canada & Bank of Canada, year-over-year change)

Canada's fiscal situation will remain sound SECRET Advice to Ministers

Canada made the greatest fiscal improvement of the G-7 countries from 1992 to 2002. The federal government net debt-to-GDP ratio fell from a high of 68.4 percent in 1995-96 to 42.0 percent at the end of fiscal year 2002-03.

Program spending as a percent of GDP has fallen from 13.8 percent in 1995-96 to 11.5 percent in 2002-03. In 2003-04, it is expected to rise to 11.8 percent of GDP ($143 billion).

A balanced budget or better is foreseen for 2003-04 and the following two years.

Net Federal Debt (Accumulated Deficit) Public Accounts Basis*

$ billions Percent of GDP

lefl scale -right scale 600 Projected 70

400 -I 50

r m l

30

0 10 85-00 BY-YU Y + Y ~ YI-YU UI-UL US-06

'On an accrual accounting basis starting in 2001-02 Source: Department of Finance

Federal Revenues and Program Spending (as a percentage of GDP)

Public Accounts Basis 20 Q Reenues . Program Spending D--;--*-A

"On an accrual accounting basis starting in 200' ^" Source: Department of Finance

The government is an important player in the Canadian economy


In 2003, government outlays represented 40.1 percent of GDP in Canada.

- Canada ranked fifth among G-7 countries while the United States (at 35.9 percent) ranked last.

In 2003, government receipts represented 41.2 percent of GDP in Canada.

- Among G-7 Countries, Canada ranks fourth in terms of government receipts to GDP while the United States ranked sixth (31.0 percent).

General government total outlays (2003)

a

- s urn m

0 m m m -.. P E s c a e .- D m 8 L L s F D P

Source: OECD

General government total tax and non-tax receipts (2003)

Source: OECD

The service sector has been growing relative to SECRET manufacturing and primary industries Advice to Ministers

The relative size of Canada's service sector has been increasing over time.

- Its share of GDP increased from 57.2 percent in 1961 to 65.0 percent in 2000.

- Business sector services, as a share of GDP, rose to 49.7 percent in 2000, up from 43.8 percent in 1961.

From 1981 to 2003, real GDP grew at an annual rate of 3.0 percent in services, compared to 1.6 percent in primary industries and 2.7 percent in the manufacturing sector.

GDP* Share in Selected Industries, 1961-2000 (in percent)

Primary industries

'GDP in current dollan, data available up to 2000.

Source: Statist~cs Canada, InpuVOutput tablas.

Change in Real GDP* in Selected Industries, 1981 -2003 (in percent per year)

Primary industries 1 11.6

Manufacturing 71 2.7

Services 1 1 3.0

Total economy

Source: Statistics Canada

'Constant 1992 dollars. 1981-1997: 1997 chained do

Almost three out of four jobs are now in the services SECRET

sector Advice to Ministers

More than 11 million Canadians are employed in the services sector, nearly three-quarters of total employment.

In the last 16 years, goods-producing industries saw their share of employment fall from 29.7 percent to 25.3 percent.

- From 1987 to 2003, services employment grew at the annual rate of 1.9 percent compared to 0.5 percent for the goods sector.

Share of Services in Employment, 2003

Share of Services in Employment, I987

International trade plays a fundamental role SECRET Advice to Ministers

Canada's outward orientation increased from 32 percent in 1961 to 52 percent in 1988 (prior to the Free Trade Agreement ( F W .

From I988 to 2000, Canada's outward orientation increased further to 85 percent. Since then the trade-to-GDP ratio has fallen due to the global economic slowdown.

Canada is by far the most outward oriented member of the G-7. Its trade- to-GDP ratio was 82 percent in 2001. The U.S. and Japan, both with large domestic markets, were at 24 percent and 20 percent respectively.

Canada's Outward Orientation Ratio of Trade-to-GDP*

90 (%I (I 961 -2003)

80 70 60 50 40 30 20 10 0

1961 1966 1971 1976 1981 1986 1991 1996 2001 'Trade-to-GDP ratio = (Export + Imports)/GDP Source: Compilations based on Statistics Canada data

Trade-to-GDP, G-7 Countries, 2001

'Trade-to-GDP ratio = (Export + Imports)/( Source: Compilations based on OECD dat;

lnternational trade increased at a faster pace than lnterprovincial trade


' lnternational exports grew faster than interprovincial exports in all provinces except Newfoundland and Labrador between 1981 and 2003.

' Following the FTA in 1989, the ratio of international to interprovincial trade doubled from 1989 to 2003.

Export Growth (percent per year, 1981 -2003)

W Interprovincial International

Export Growth (percent per year, 1981 -2003)

NAFTA

FTA A

1981 1985 1989 1993 ,,,. 13 000115

Source: Compilations based on Statistics Canada

Resource-based exports are still important SECRET Advice to Ministers

Resource-based industries still account for a large part of Canada's exports. However, the share of primary products in total goods exports declined over the last ten years.

Higher prices have helped push up oil and gas exports since 1995.

Non-resource based manufactured exports increased 11.0 percent from 1992 to 2003, compared to 6.8 percent for exports of resource-based manufactured products.

Distribution of Canada's Merchandise Exports by Industry (in percent)

Non-resource based goods are the most important SECRET source of imports in Canada Advice to Ministers

Non-resource based industries (including Machinery and Electronics and Automotives) accounted for close to 80 percent of our imports in 2003.

Machinery and Electronics, key to improving productivity, accounted for 25 percent of Canada's merchandise imports in 2003.

Distribution of Canada's Merchandise Imports by Industry (in percent)

Canada has increased its dependency on exports to the U.S.


Geographic Distribution of Canada's

Since the implementation of the FTA, the U.S. share of Canadian merchandise exports has increased by about 13 percentage points, rising from 73 percent in 1989 to 86 percent in 2003.

Intra-industry trade has been a main driver of increased trade linkages between the two countries.

- ~

Merchandise Exports (1 989-2003)

Japan

1989 1993 1996 1999

Source: Compilations based on Statistics Canad;

Outward and inward investment flows increased substantially from 1990 to 2000


In 1996, Canada's outward foreign direct investment (FDI) surpassed inward FDI, making Canada a net exporter of investment for the first time in its history. Most other developed nations are also net exporters of FDI.

The dramatic fall in FDI inflows in 2001, due in part to weaker global economic activity, resulted in a widening of the gap between Canada's inward and outward FDI stocks.

The stock of Canadian outward FDI reached $431.8 billion in 2002, exceeding the stock of inward FDI by a record $82.4 billion.

$ billions Inward and Outward FDI Flows

120 (1990-2003)

100 I n f l o w s

- Oufflows 80

60

40

20

0

Canada's Inward & Outward $ billions

450 FDI Stock (1 990-2002)

-Inward FDI 350 -Outward FDI

250

1.50

/

50 1990 1992 1994 1996 1998 2000 2002

Source: Statistics Canada I c 000119

Canada has diversified its foreign direct investment a broad


Nearly two-thirds of inward FDI to Canada comes from the U.S. but investment from mainland Europe has increased.

Geographic Distribution of the Inward FDI Stock in Canada

P a c ~ f ~ c R:ni K Others

Other Europe

U K

U S

Canada has diversified its FDI holdings abroad, raising its share substantially in the Pacific Rim and reducing it elsewhere. Nonetheless,

1990 1995 2003 about 40 percent of Canada's FDI holdings abroad are still in the U.S. Geographic Distribution of Canada's

FDI Stock Abroad

Despite a huge increase from 1991 to 2002, Canada's FDI holdings in ! Pac:fic RI::! K otlltm

China only represent 0.15 percent of total FDI abroad. Other Europe

~- ~- ~-

U.K.

U.S.

Canada's standard of living growth p~cked up in the second half of the 1990's. ..


During the 1970s, our standard of living was buttressed by a rising employment rate. This dampened the impact of slower productivity growth.

Canada's Growth in Standard of Living (average annual percentage change in real GDP per capita)

Growth in standard of living Due to productivity (output per worker) increase Due to employment rate increase

3.5%

However, in the 1980s and the first half of the 1990s, slower productivity growth and lower employment rate combined to curb the growth in Canada's standard of living. And the gap with the U.S. grew markedly.

Only since the second half of the 1990s did Canada outperform the US. in terms of living standards growth, largely reflecting stronger job creation.

Employment rate is percent of population that is employed Source: Industry Canada compilations based on data from Statistics Canada

... bur Canada's per capita income is s~gnificantly lower SECRET than that of the U.S. ... Advice to Ministers

In 2003, the real per capita income gap, with the U.S. was $5,810.

- Per capita income on average was 15% lower in Canada.

To close the income gap by 2015, Canada's per capita income will have to grow by 3.4 percent per year for the next 12 years, assuming that the U.S. growth will remain at 2.2 percent per year, the same pace as in the past 8 years.

- In other words, per capita real income growth in Canada needs to be almost 1 percentage point higher than the average rate during the past 8 years.

Canada versus U.S. Standard of Living* (real Income Per Capita)

rhousands of $CDN in 2003 . . . . . . . . . 544,258

Standard a living gap *-a ..a

1981 -90 90-95 95-2003 20

81 83 85 87 89 91 93 95 97 99 01 03 '2001 Statistics Canada PPP is updated to 2003 using GDP implicit price deflators Source: Statistics Canada and US. Bureau of Economic Analysis

... which is explained mainly by a large productivity gap SECRET Advice to Ministers

There are essentially two ways for a country to raise its standard of living:

- More work: get more people to work or to work more hours (employment rate); and

- More output for same work: increase the amount that each hour of work produces (productivity).

Lower productivity explains 83 percent of the Canada-U.S. income gap. The remainder is due to fewer people working and fewer hours worked per person employed.

Sources of the Income Gap 1990-2003 Average

Lower Labour t Proigivi ty

Lower (Effective)

Employment Rate* 17% c

'Total hours worked per capita, based PPP=O.BS Source: Statistics Canada. US. Bureau of Economic Analysis and U.S. Bureau of Labor Statistics

Employed Population Rate (in percent)*, 1990-2003 Average

Canada 'Total employment as a percentage of population of age 15+ for Canada and 16+ for the US. Source: Statistics Canada, US. Bureau of Labor Statistics. US. Bureau of Economic Analysis

Over the last 20 years, our productivity position has slipped


The Canada-U.S. aggregate labour productivity level gap increased from 15 percent in 1995 to 20 percent in 2003.

In manufacturing, the Canada-U.S. productivity gap was 34 percent in 2003, compared to 20 percent in 1990.

Canada's rank among G-7 countries in terms of labour productivity slipped from 2nd place in 1977 to 3rd in 2002.

~anada~elat ive to the U:S.

100 U.S.=lOO

Labour Productivity*

Labour Productivity** Manufacturing

60 81 83 85 87 89 91 93 95 97 99 01 03

'Real GDP per hour worked. PPP based. "Real GDP per hour worked, derived by extending a benchmark estimate (81.6) from Rao. Tang and Wang (2004) in 1999 using real GDP per hour worked indexes From US. Bureau of Labor Statistics. Source: Statistics Canada. U.S. Bureau of Labor Statistics and U S . BEA

Rank of G-7 Countries by Productivity Levels 2002 and 1977

1st 1st I Rank in 1977 0 Rank in 2002 2nd 2nd

.... US. Canada Japa~ . .

ltal France ' Output per worker a n d , 0 & ~ PPP Source: OECD Econom~c Outlook

The productivity problem is pervasive across most industries


Relative Labour Productivity* in Canadian Industries, 2001

- About 60 percent of sectors in Agriculture, Forest 8 Fishing

Canada have productivity levels below their US. counterparts. Manufacturing (total)

- Key exceptions are the Transportation Equipment industry and some resource-

Motor vehicle based manufacturing industries: F O O ~ , beverage and tobacco

Paper & Allied, Primary Metal, Piastic and rubber products Furniture and related product

and Lumber & Wood. Machinery and computers Textile and clothing

Petroleum and coal products Fabricated metal

Productivity levels in "New Economy" Electronic and electrical

industries such as Electrical & Electronic Equipment and Machinery are significantly lower in Canada than in the US. information and cultural industries

Private business Sector 0 20 40 60 80 100 120 140 160

'GDP per hour worked "Finance, insurance and real estate Source: Rao. Tang and Wang (2004). 'Productivity Levels between Canadian and US. Industries," Industry Canada research paper. 31

000126

Canada has a significant innovation gap SECRET Advice to Ministers

Canada's overall level of innovation capacity is near the bottom in the G-7. In contrast, the performance in the U.S. is near the top.

- We are outperformed by other G-7 countries, especially in Research and Development (R&D) related innovation indicators.

Canada's Innovation Performance (Standing Relative to G-7. 2002)

Human capital devoted to R&D' &PI

RBD rnte~is~ty e N a t ~ o ~ t a l patent applicat~on" U

Progress has been made in reducing this gap SECRET Advice to Ministers

Canada has improved its innovation performance over the last few years across a range of key indicators.

Canada's Innovation Performance (Average Annual Rate of Growth. 1981-2002)

- We have achieved the H u ~ r ~ a ~ t capltal devoted to RBD'

fastest rate of growth in the number of workers devoted R ~ w n o s s - f ~ ~ n c l w ! o x p c w l ~ t ~ ~ r c s~; RSC

to R&D, in external patent applications, and R&D R&D Intensity

intensity. Technology balance of paynients'.

- Our R&D expenditures (as a percent of GDP) have also increased at the fastest pace Govcrrintent expenditure on RBD

in the G-7.

:b per year

R a ~ i k ~ ~ t g arnoriq G . 7

Canada U.E

I r

A more productive labour force can offset the impact of SECRET an aging population Advice to Ministers

Aging of the population implies a slowdown in labour force growth over the next 15 to 20 years.

- The share of prime working age population (25-54) is expected to fall to 46 percent by 2026, after peaking at 57 percent in 1997.

- The share of youth population is expected to continue its downward trend.

The ratio of working age to elderly population will fall in all G-7 countries but Canada and the U.S. will continue to have the highest ratios.

Wealth creation will depend more than ever on our productivity performance.

Share of Population Over 15 (in percent)

60 50

Source: Statistics Canada

Growth of Workingage Population and Labour Force,

Annual Percentage Canada, 1951-56 to 2016-21

Growth 4.0

67 Labour Force Growth 0 Population 15-64 Growth

Investing in people is the key to success in global knowledge economy


The emergence of the knowledge-based economy has greatly increased the demand for skilled workers throughout the world.

- Since 1990, almost all employment growth in Canada has been for workers with a post-secondary diploma or degree.

Canada's population is well endowed with skilled workers. Twenty percent of Canadians have university degrees or advanced research qualifications (2001), and Canada ranks second in the OECD in average years of schooling of working age population.

However, Canada has lower graduation rates compared to other industrialized countries in advanced research and lower rates of on-the-job training.

Average Years of Education of 15-64 Year Olds Across Selected OECD Countries

14 I Canada I U S m U.K. 0 G e r m a n y I Norway I S w e d e n

13 I OECD

ijJL,[$ 10 9 8 Swce: 1970 OECD, Tabls 2 of Bsuanini, 1980 Scsrpsna and Hsmminga(2001) 1 9 9 0 1998

Population with a University or Advanced Research Program Degree, 2001

35

Source: OECD, Education at a Glance, 2W2. Table A2.3

A competitive tax regime is important for innovation ... SECRET Advice to Ministers

Corporate Income Tax Rates: Canada vs US.' A reduction in corporate taxes allows (including capital tax equivalents) businesses to invest more resources in %

research and development, which - . . I :

contributes to innovation. I . . . I : I

I I W q " 4

' : . I ' : . I I I I I

In 2000, Canada introduced $100B , , : . I , - . , 5-year Tax Reduction Plan and

I : ;

additional changes in 2003. f + 73 ! 1

- Reduced federal corporate tax rate m + + to 21 %.

- Eliminate federal capital tax by 2008. 2000 2001 2002

- Reduced capital gains inclusion rate.

- Expanded tax-free capital gains roll- over for small business investors.

Note: Data for 2003-2008 include federal and provincial corporate's captal tax changes as of September 30.2003.

Source: Economic and Fiscal Update. Finance Canada. November 3.2003.

Disparities remain among regions.. . SECRET Advice to Ministers

GDP (or income) per capita varies significantly across regions.

- Alberta and Ontario enjoy higher standards of living than other provinces. Per capita incomes are lowest in Atlantic Canada.

Significant differences in labour market conditions exist among provinces.

- Provincial unemployment rates tend to be highest in Atlantic Canada.

- In many parts of the country, rural unemployment rates are significantly higher than in urban areas. For instance, St. John's unemployment rate was 8.6 percent in May 2004, compared to an average of 16.5 percent in Newfoundland and La brador.

GDP per Capita, 1993 and 2003

BC AB SK MB ON QC NB NS PE NL

Unemployment Rate, May 2004 (in percent)

BC AB SK MB ON QC NP L'P nr ''I 000132 Source: Statistics Canada

...p artially due to the urban-rural divide SECRET Advice to Ministers

Most people live in urban areas Areas, 2001 (in percent) (80 percent of Canada's Urban Rural 86 87

population). 75 79

Urban areas have a higher standard of living than rural areas, as measured by income per capita, across all provinces.

Provinces with a high rural population tend to have lower per capita incomes.

However, the incidence of low income, as measured by the percent of individuals living below the low income cut-off (LICO), is higher in urban areas.

NL NB PEt* SK NS MB AB QC BC ON

GDP per Capita, 2003 ($ thousands) &

NL NB PE'* SK NS MB AB QC BC ON

'CMA=Census Metropolitan Area **Total for Prince Edward Island, which is considered predominantly 2n rural. 000133 Source: Industry Canada calculations based on Canada data.


The Canadian economy has been performing well over the last decade.

- Strong economic growth was largely driven by employment growth. Trade, especially with the U.S., made a significant contribution to Canada's growth.

- Sound macro-indicators: low inflation, fiscal balance.

Main economic challenges ahead:

- Improving innovation performance to boost productivity, all the more important with an aging population.

- Attracting talent and investment, both foreign and domestic, which requires an enabling business environment.

- Free access to the U.S. market as so much of our economy is driven by Canada- U.S. trade.

2004 Ministerial Transition Briefing Book (Partial Release) for Industry Minister David Emerson

Documents

deparlment of industry

private act corporations

electronic documents

labelling act electricity

eof tlndustrv act

government of canada

ministers industry canada

leaislation canada foundation