Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Lisa Raitt, Minister of Transport

Institutional Head:  Louis Lévesque, Deputy Minister

Ministerial portfolio:  Transport Canada

Transport Canada is part of the Transport Canada Portfolio, which includes:

• Transport Canada;
• Shared governance organizations (e.g., the St. Lawrence Seaway Management Corporation);
• Crown corporations (e.g., the Great Lakes Pilotage Authority, Canada Post Corporation); and
• Administrative tribunals/agencies (e.g., the Transportation Appeal Tribunal of Canada).

Grouping these organizations into one portfolio allows for integrated decision-making on transportation issues.

Enabling Instrument: Department of Transport Act^{Endnote ii} (R.S., 1985, c. T-18)

Transport Canada administers over 50 laws related to transportation^{Endnote ii} and also shares the administration of many others. Justice Canada is the federal department responsible for maintaining the Consolidated Statutes of Canada^Endnote iii, and provides access to the full text of federal acts and regulations.

Year of incorporation / Commencement: 1936

Organizational Context

Raison d'être

The movement of people and goods lies at the cornerstone of our modern and interconnected world. Canadians expect to be able to travel and expedite goods locally, across the country or around the world in an efficient, clean, safe and secure manner. Canada’s transportation system meets the challenges posed by topography and geography, linking communities and reducing the effects of the distance that separates people. These vital roles reflect transportation’s interdependent relationship with all sectors of the economy and society.

Transport Canada’s vision of a sustainable transportation system integrates social, economic and environmental objectives. Our vision’s three guiding principles are to work towards:

• the highest possible safety and security of life and property, supported by performance-based standards and regulations;
• the efficient movement of people and goods to support economic prosperity and a sustainable quality of life, based on competitive markets and targeted use of regulation and government funding; and
• respect of the environmental legacy of future generations of Canadians, guided by environmental assessment and planning processes in transportation decisions and selective use of regulation and government funding.

Responsibilities

Transport Canada 2015-16 Report on Plans and Priorities^Endnote iv is responsible for the Government of Canada’s transportation policies and programs. The Department develops legislative and regulatory frameworks, and conducts transportation oversight through legislative, regulatory, surveillance and enforcement activities. While not directly responsible for all aspects or modes of transportation, the Department plays a leadership role to ensure that all parts of the transportation system across Canada work together effectively.

Transport Canada has sole responsibility for matters such as aviation safety and security; for other matters, we share responsibility with other government departments, and provincial, territorial and municipal governments. We also work with trading partners and international organizations to understand and harmonize policy and administrative frameworks, so as to protect Canadian users of the global transportation system while encouraging efficiency.

In areas for which Transport Canada does not have direct responsibility—for example, for building and maintaining road networks—we use strategic funding and partnerships to promote the safe, efficient and environmentally responsible movement of people and goods into and across the country. In this way, we play a leadership role to ensure that all parts of the transportation system across Canada and worldwide work together effectively and efficiently.

Strategic Outcomes and Program Alignment Architecture (PAA)

As illustrated in Figure 1, Transport Canada’s 2015–16 Program Alignment Architecture includes 15 Programs that contribute to achieving the following three Departmental Strategic Outcomes:

1. An efficient transportation system;
2. A clean transportation system; and
3. A safe and secure transportation system.

The 16th Program, Internal Services, supports all three strategic outcomes.

Figure 1: Transport Canada 2015–16 Program Alignment Architecture (PAA)
 

[Text Version of Figure 1: Transport Canada 2015–16 Program Alignment Architecture (PAA)]

Organizational Priorities

Transport Canada has identified five priorities for 2015–16. They align with Government of Canada (GoC) priorities, support the achievement of our Strategic Outcomes and help the department address risks. Over the course of the year, senior management will pay special attention to the plans developed to meet these priorities and achieve results.

Priority	TypeFootnote 1	Strategic Outcomes and Programs
Refine and strengthen Transport Canada's safety and security oversight	Ongoing	SO3 A Safe and Secure Transportation System (All Programs)
Description
Why is this a priority? A safe and secure transportation system moves people and goods across Canada and to international destinations without loss of life, injury or damage to property. By refining and strengthening Transport Canada's oversight function, the Department will be better able to work with the transportation industry to uphold a culture of safety and security. What are the plans for meeting this priority? Identify strategies and respond to emerging issues, including: The Transportation Safety Board’s recommendations stemming from the Lac-Mégantic tragedy; The responsible development and protection of new local aerodromes by third parties; and Safety in the unmanned air vehicle sector to keep the public and our airspace safe and secure. Implement a multi-modal approach to safety and security oversight  by: continuing to align activities to the Directive on Safety and Security OversightFootnote 2; continuing to take a multimodal enforcement approach;   adopting a multimodal strategic framework for promoting and assessing Safety Management Systems and Security Management Systems across transportation modes; completing the implementation of integrated multimodal training; and refining and adopting a systematic approach to identify and address program risks.

 

Priority	Type	Strategic Outcomes and Programs
Continue to contribute to the Government’s Responsible Resource Development and Sustainable agenda	Previously Committed	SO2 A Clean Transportation System (All Programs) SO3 A Safe and Secure Transportation System (Programs 3.2 and 3.9)
Description
Why is this a priority? The Government of Canada is taking steps to ensure that Canada develops its natural resources in a way that protects the environment, while contributing to continued economic growth and job creation. What are the plans for meeting this priority? Continue to strengthen tanker safety as well as the nation's oil-spill preparedness and response regime in line with World Class Tanker Safety activities, Phases 1 and 2; Identify future strategic requirements in the North, with a focus on transportation services and infrastructure that will strengthen safe and environmentally responsible transportation for all modes; and In support of the whole-of-government approach to major projects review, continue to advance an integrated transportation system that facilitates protection of the environment and consideration of Aboriginal, provincial/territorial, community and stakeholder engagement.

 

Priority	Type	Strategic Outcomes and Programs
Improve Canada’s competitiveness and critical transportation infrastructure	Ongoing	SO1 An Efficient Transportation System (Program 1.1 and 1.2) SO3 A Safe and Secure Transportation System (Program 3.6)
Description
Why is this a priority? An efficient transportation system supports trade and economic prosperity which contributes to Canadians’ quality of life. Having the right policy framework and adequate infrastructure for our key trade corridors is essential for the transportation system. What are the plans for meeting this priority? Continue to transition project activities related to constructing and managing a new international bridge to the Windsor-Detroit Bridge Authority, to acquire property  and to work with the Authority, the State of Michigan and U.S. federal agencies to advance the project; Continue to monitor the Port Metro Vancouver gateway to bring further efficiency to Canada’s busiest port; and Carry out Beyond the Border Action PlanFootnote 3 initiatives related to cross-border transportation facilitation and security, including the Border Infrastructure Investment Plan 3.0.

 

Priority	Type	Strategic Outcomes and Programs
Ensure that Transport Canada’s policies, programs and activities will meet the needs of the transportation system in the long term	Ongoing	SO1 An Efficient Transportation System (All Programs) SO2 A Clean Transportation System (All Programs) SO3 A Safe and Secure Transportation System (Program 3.6) Program 4.1 Internal Services
Description
Why is this a priority? Transportation is essential for Canada’s social and economic prosperity. This priority will ensure that our approaches continue to be relevant, meet the needs of the transportation sector and consider social, economic and environmental objectives. What are the plans for meeting this priority? Develop a plan to address the recommendations from the Canada Transportation Act (CTA) Review; Adopt strategies to ensure the strong management of transportation assets including: developing a long-term airports strategy; refining and adopting the new asset management strategy for ports; and developing long-term strategies for ferry and air services. Strengthen knowledge and capacity relating to climate change adaptation, and integrate these considerations into decision making; Reduce greenhouse gas and air pollutant emissions from the transport sector by further developing Transportation Sector regulations and implementing clean transportation initiatives that can also contribute to economic and safety objectives; and Support good corporate governance of Crown corporations and other arm’s-length entities in the Transport Portfolio to contribute to achievement of their public policy and commercial objectives.

 

Priority	Type	Strategic Outcomes and Programs
Adopt the Government of Canada’s efficiency and renewal measures	Previously Committed	All SOs and Programs
Description
Why is this a priority? The Government of Canada recognizes the need to adapt to the world’s rapid rate of change that values innovation, agility and productivity, with the dual goals of improved service and greater efficiency. What are the plans for meeting this priority? Engage employees to improve the public service of the future via the implementation of portfolio Destination 2020 initiatives and contributions to whole-of-government Destination 2020 initiatives; Contribute to and adopt whole-of-government transformation initiatives to improve efficiency of internal services (e.g., Finance and HR Transformation, Web Renewal, Service Improvements, E-mail Transformation); Enhance our people management activities to support a productive, high-performing public service by: aligning our human resources planning, with a focus on recruitment, retention and employee development efforts, to current and future needs; and leveraging talent and performance management activities to address employee promotional and mobility opportunities while addressing the department’s succession requirements and knowledge transfer needs with initiatives such as the TC Talent NetworkFootnote 4 and the Leadership Development InitiativeFootnote 5. Enhance the efficiency and capacity of information management systems to ensure completeness, consistency, reliability and “shareability” of data, via the implementation of an integrated Information Management (IM)/Information Technology (IT) strategy that better supports the delivery of our programs and services.

Risk Analysis

Operational Context

This subsection outlines the external and internal risk and opportunity drivers that we expect will affect Canada’s transportation system over the 2015–16 planning horizon. They were identified through an environmental scan as part of our integrated planning and reporting process.

In the years ahead, pressures such as demographic shifts, access to natural resources, fiscal constraints, environmental protection, and general global geopolitical and economic turbulence will present challenges and opportunities for our transportation system, such as accessibility and the development of the North.

Changing climate and more extreme weather events may result in damage and disruption to transportation infrastructure and operations. Resource development will continue, as well as pressure from Canadian producers/ shippers and international trade partners for improved system resilience. Web and mobile technologies, as well as access to government and partner data, can help to increase work productivity and efficiency and flexibility, improve engagement and knowledge transfer, and provide accurate and timely delivery of information and services to citizens and clients.

Transport Canada has a strong safety record. However, safety and security practices and mechanisms must address shifting conditions and requirements in an agile manner, including harmonization among transportation modes, where appropriate. Security threats, affecting all modes of the transportation system, as well as cyber attacks and phishing, will require continued vigilance. To maintain public confidence towards transportation, governments and industry will need to adapt quickly to changes in the environment.

Key Risks and Risk Responses

Risk management is integrated in all facets of Transport Canada’s activities. The analysis of opportunities and challenges that could affect Canada’s transportation system sets the context in which Transport Canada must identify the range of possible risks and opportunities, assess the likelihood and potential impacts of adverse or favourable events, and develop responses to the threats and opportunities that may affect the delivery of Transport Canada’s mandate. The opportunities and risks that have the most significant potential to affect the department’s objectives are identified in the Corporate Risk Profile (CRP).

Transport Canada identified four key opportunity areas in its current CRP. The Department has also identified and implemented mitigation measures, or risk responses. The identification of opportunities and risks and the development of responses contribute to making decisions related to setting departmental priorities, planning, allocating resources, developing policies and managing programs. The figure below shows four key opportunity areas and their residual impact and likelihood placement, taking into account mitigation measures, should the opportunities not be realized:

Transport Canada's Corporate Risk Profile, September 2014

 

[Text Version of Transport Canada's Corporate Risk Profile September 2014]

The table below presents the key elements of our risk response strategy:

Opportunity Area	Risk Response Strategy	Link to Program Alignment Architecture
R1. Safety and Security Oversight Effectiveness	The regulatory framework must remain current and our internal governance and processes must adequately support oversight of the national transportation system. Oversight also requires ensuring accountability and effective management by all partners in the safety/ security chain, including operators who have primary responsibility for transportation. Key responses include: Strengthen and refine Transport Canada’s oversight of the Canadian transportation system by implementing the Directive on Safety and Security Oversight; Review/adopt reviewing quality assurance practices and procedures in Safety and Security Programs to manage effectiveness, efficiency and consistency of oversight activities where applicable; Implement the Action Plan for Rail Safety and respond to the Transportation Safety Board of Canada recommendations of August 2014 arising from the investigation report into the Lac-Mégantic tragedy; Enhance the consistent application of national and modal risk-based inspection planning/ reporting and enforcement regimes/strategies; Revise and develop, as required, training and guidance materials across the modes; and Continue to strengthen data systems across Programs to improve surveillance, compliance and internal management systems.	SO3 – A safe and secure transportation system
R2. People Management	Transport Canada must attract, develop and retain the right people with the right skills at the right time, to ensure the delivery of key programs in all of Transport Canada’s Strategic Outcomes. Key responses include: Addressing the Departmental overall recruitment needs through the use of on-going inventories and  the establishment of precise and tailored recruitment, staffing, and workforce management strategies based on a detailed and integrated national workforce planning; Continue to provide employees and management with concrete opportunities to develop their skills and competencies through development programs such as the Leadership Development InitiativeFootnote 6 and through the promotion of other learning and development programs (including internal assignments, cross training, working groups); Leveraging Professional Development Tools such as myTC Talent NetworkFootnote 7, which allows the department to facilitate the development of its workforce through internal networking and career advancement opportunities; and Implement the new performance management program to ensure proper monitoring of employees performance and proper fit with the departmental needs.	Across all three SOs and Internal Services
R3. Transportation System Efficiency and Reliability	With continuing economic uncertainty and shifting trade patterns, strategic gateways and corridors must be efficient and internationally competitive to support Canada’s economic growth. Any decrease in services to shippers and travellers may hamper economic development and have significant impacts on our competitive position and economic growth. Key responses include: Advance the Detroit River International Crossing project; Review Government policies, programs and regulations related to the air, marine and rail sectors (which will also inform the review of the Canada Transportation Act); Carry out Beyond the Border Action Plan initiatives e.g., coordinate border infrastructure investments and upgrade physical infrastructure at key border crossings; and Take steps to increase climate change adaptation knowledge and capacity, and to improve how Transport Canada integrates adaptation into decision-making.	SO1 – An efficient transportation system SO2 – A clean transportation system
R4. Security Threat	International and public confidence in the security of Canada’s transportation infrastructure is essential to Canada’s economy. Security threats to human health and safety that could lead to death and/or injury to the public, and the destruction of key infrastructure sites have the potential for extreme impact. Key responses include: Continue to advance the Beyond the Border Action Plan security initiatives; Enhance Departmental response plans and arrangements (e.g., Incident Management Team, Crisis Management Team, Aviation Security Event Management Plan, Exercises, Training, etc.); Strengthen security program capacity, including the Marine Security Oversight and Enforcement Program; and Continue to enhance the Surface and Intermodal Security Oversight program.	SO3 – A safe and secure transportation system

Planned Expenditures

The following financial resources table provides a summary of the total planned spending for Transport Canada for the next three fiscal years. For more details on Planned Spending, including adjustments, please visit Transport Canada’s website.

Budgetary Financial Resources (dollars)

2015–16 Main Estimates	2015–16 Planned Spending	2016–17 Planned Spending	2017–18 Planned Spending
1,615,012,278	1,615,012,278	1,026,195,218	1,138,086,905

The following human resources table provides a summary of the total planned human resources for Transport Canada for the next three fiscal years.

Human Resources (Full-time equivalents—FTEs)

2015-16	2016-17	2017-18
5,243	5,051	5,003

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)

The following tables present:

• the planned spending for 2015–16 and for the next two fiscal years, by Program, in support of each Strategic Outcome;
• the total Departmental spending for all Programs for 2012–13 and 2013–14, and forecasted spending for 2014–15; and
• the Strategic Outcomes 1, 2 and 3 and Program contribution alignments to the Government of Canada outcomes.

Strategic Outcomes, Programs and Internal Services	Government of Canada Outcomes	2012-13 Expenditures	2013-14 Expenditures	2014-15 Forecast Spending	2015-16 Main Estimates	2015-16 Planned Spending	2016-17 Planned Spending	2017-18 Planned Spending
Strategic Outcome 1: An Efficient Transportation System
1.1 Transportation Marketplace Frameworks	A fair and secure marketplace	9,041,585	11,917,295	28, 901,855	24,473,890	24,473,890	21,393,723	21,405,670
1.2 Gateways and Corridors	Strong economic growth	395,779,632	336,988,453	506,001,664	576,569,290	576,569,290	110,140,965	282,399,187
1.3 Transportation Infrastructure	Strong economic growth	309,656,203	363,848,205	481,781,278	399,495,001	399,495,001	350,031,572	301,848,075
1.4 Transportation Analysis and InnovationFootnote *		9,471,905	12,885,608	0	0	0	0	0
Strategic Outcome 1 Subtotal		723,949,325	725,639,561	1,016,684,797	1,000,538,181	1,000,538,181	481,566,260	605,652,932
Strategic Outcome 2:  A Clean Transportation System
2.1 Clean Air from transportation	A clean and healthy environment	18,760,359	27,755,589	24,265,637	29,417,677	29,417,677	4,506,789	1,501,789
2.2 Clean Water from transportation	A clean and healthy environment	6,947,514	16,198,195	25,584,834	31,902,400	31,902,400	26,896,996	16,766,856
2.3 Environmental Stewardship of transportation.	A clean and healthy environment	20,059,193	29,431,954	49,716,328	33,906,726	33,906,726	10,734,397	10,734,397
Strategic Outcome 2 Subtotal		45,767,066	73,385,738	99,566,799	95,226,803	95,226,803	42,138,182	29,003,042
Strategic Outcome 3:  A Safe and Secure Transportation System
3.1 Aviation Safety	A safe and secure Canada	198,628,602	184,628,770	191,114,700	173,447,956	173,447,956	172,861,136	169,835,759
3.2 Marine Safety	A safe and secure Canada	56,492,575	59,638,305	74,620,988	57,475,536	57,475,536	53,463,452	52,892,836
3.3 Rail Safety	A safe and secure Canada	34,213,510	29,250,946	37,340,655	35,707,671	35,707,671	35,525,338	35,054,167
3.4 Motor Vehicle Safety	A safe and secure Canada	22,458,347	26,152,233	24,918,896	22,723,248	22,723,248	20,089,942	20,384,666
3.5 Transportation of Dangerous Goods	A safe and secure Canada	12,756,370	14,663,095	22,528,987	15,322,623	15,322,623	15,279,721	15,437,993
3.6 Aviation Security	A safe and secure Canada	33,706,392	29,743,295	33,398,475	29,791,738	29,791,738	29,516,367	29,516,367
3.7 Marine Security	A safe and secure Canada	14,005,041	12,331,970	15,125,397	12,872,129	12,872,129	12,782,279	12,782,279
3.8 Surface and Intermodal Security	A safe and secure Canada	3,967,849	4,280,788	5,056,078	4,703,731	4,703,731	4,573,144	4,573,144
3.9 Multimodal Safety and Security	A safe and secure Canada	0	10,722,526	20,426,098	10,890,897	10,890,897	10,785,344	10,785,344
Strategic Outcome 3 Subtotal		376,228,686	371,411,928	424,530,274	362,935,529	362,935,529	354,876,723	351,262,555
Internal Services Subtotal		186,533,092	170,195,608	171,930,733	156,311,765	156,311,765	147,614,053	152,168,376
Total		1,332,478,169	1,340,632,835	1,712,712,604	1,615,012,278	1,615,012,278	1,026,195,218	1,138,086,905

Trend Analysis

An Efficient Transportation System

Planned spending in An Efficient Transportation System is mostly impacted by changes in project cash flows for the Asia Pacific Gateways and Corridors Initiative and the Gateways and Border Crossings Fund (GBCF). Funding levels for these programs normally fluctuate based on planned projects and, with the exception of an increase in 2017-18 as a result of planned expenditures for one GBCF project, funding levels start decreasing in 2015-16 as the programs reach their end date. Planned spending for Transportation Infrastructure peaks in 2014–15 due to the purchase of a replacement ferry vessel, subsequently declining in 2016–17 and 2017–18 as a result of expected decreases in statutory payments to the St. Lawrence Seaway Management Corporation. Fluctuations in other years are mostly related to changes in port divestiture project cash flows.

A Clean Transportation System

Planned spending for A Clean Transportation System varies over the planning horizon as a result of changes in funding levels for various initiatives. Planned spending for the Federal Contaminated Sites Action Plan (Environmental Stewardship of Transportation) and the Next Generation of Clean Transportation (Clean Air from Transportation) ends March 31, 2016. Funding for the Smart Oceans Contribution Program (Clean Water from Transportation) ends March 31, 2017.

A Safe and Secure Transportation System

Planned spending for A Safe and Secure Transportation System decreases as a result of the transfer of funding to Shared Services Canada, the implementation of cost saving measures announced in Budget 2012, and some internal reallocations of funding to centralize administrative functions and better align expenditures with Transport Canada’s Program Alignment Architecture. Spending can also vary from year to year as a result of changes in the type and number of investment projects undertaken each year  and the varying demand for transfer payments programs. There was an overall spike in the forecast spending of 2014–15 due to the salary costs from the liquidation of severance pay and a one-time cost related to the transition to pay-in-arrears by the Government of Canada.  Forecast spending in 2014-15 has also spiked in Marine Safety, Transportation of Dangerous Goods and Multimodal Safety and Security as a result of expected increased activity in these areas. The Department undertakes annual reviews of program resource requirements as part of the planning process and reallocates funding internally as required. Operating and Grants and Contribution funding remain fairly consistent after 2015-16 and variances in planned spending are mostly related to changes in cash flows for Capital projects.

Internal Services

Planned spending for Internal Services decreases in future years mostly as a result of the transfer of funding to Shared Services Canada and the implementation of cost saving measures announced in Budget 2012. There was an overall spike in the forecast spending of 2014–15 due to the salary costs from the liquidation of severance pay and a one-time cost related to the transition to pay-in-arrears by the Government of Canada.

Alignment to Government of Canada Outcomes

Alignment of 2015-16 Planned Spending With the Whole-of-Government Framework^{Endnote vi} (dollars)

Total Planned Spending by Spending Area (dollars)

Government of Canada Spending Area	Government of Canada Outcome	Total Planned Spending
Economic affairs	Strong economic growth	976,064,291
	A clean and healthy environment	95,226,803
	A fair and secure marketplace	24,473,890
Social affairs	A safe and secure Canada	362,935,529
International affairs	Not applicable	0
Government affairs	Not applicable	0

Departmental Spending Trend

For the 2015–16 fiscal year, Transport Canada plans to spend $1,615 million to meet the expected results of its program activities and to contribute to its strategic outcomes. This represents a net decrease in planned spending of $80 million over the 2014-2015 forecast spending level of $1,712 million.

The decrease from 2014–15 to 2015–16 is the result of reduced spending plans which had included a one-time cost for the purchase of a replacement ferry vessel, as well as salary costs from the liquidation of severance pay and a one-time cost related to the movement to pay-in-arrears. This decrease is offset by an increase in Grants and Contributions funding primarily related to a planned increase in spending for the Gateways and Border Crossings Fund.

Overall, spending plans decline after 2015–16 mostly as a result of a reduction in planned spending for the Asia Pacific Gateway and Corridor Initiative and the Gateways and Border Crossings Fund (GBCF) as well as spending on environmental initiatives such as the Next Generation of Clean Transportation and the Federal Contaminated Sites Action Plan as these initiatives reach their maturity dates. There is a slight increase in spending in 2017–18 as a result of planned expenditures for one GBCF project.

Figure 2 Spending Trend for Transport Canada

 

[Text Version of Figure 2 Spending Trend for Transport Canada]

Estimates by Vote

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