Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Marc Garneau, Minister of Transport

Institutional Head: Jean-François Tremblay, Deputy Minister

Ministerial Portfolio: Transport Canada

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

• Transport Canada;
• Shared governance organizations (e.g., the St. Lawrence Seaway Management Corporation^Endnotevi;
• Crown corporations (e.g., the Great Lakes Pilotage Authority^Endnotevii); and
• Administrative tribunals/agencies (e.g., the Canadian Transportation Agency ^Endnoteviii).

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

Enabling Instrument: Department of Transport Act^Endnoteviii (R.S., 1985, c. T-18)

Transport Canada administers over 50 laws related to transportation ^Endnoteix and shares the administration of many others. Justice Canada is the federal department responsible for maintaining the Consolidated Statutes of Canada^Endnotexi and provides access to the full text of federal acts and regulations.

Year of incorporation / Commencement: 1936

Organizational Context

Raison d'être

A safe and secure transportation system provides reliable and efficient movement of goods and people across the country and around the world. In an environmentally responsible way, it 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 2016-17 Report on Plans and Priorities^Endnotexii 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 2016-17 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 16^th Program, Internal Services, supports all three strategic outcomes.

Figure 1: Transport Canada 2016–17 Program Alignment Architecture (PAA)

 

[Text Version of Figure 1: Transport Canada 2016–17 Program Alignment Architecture (PAA)]

Organizational Priorities

Transport Canada has identified four priorities for 2016-17. 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	TypeFootnote1		Strategic Outcomes and Programs
Accelerate the modernization of Transport Canada’s safety and security oversight	New		SO3 A Safe and Secure Transportation System (Programs 3.1, 3.2, 3.3, 3.4 and 3.9)
Description
Transport Canada’s mandate to support a safe and secure transportation system requires influencing public and industry behaviour via Acts and Regulations, research, surveillance and enforcement activities. Effective oversight helps ensure operators and industry provide safe and secure transportation.
Planned Initiatives		Start Date		End Date	Link to Department’s Program Alignment Architecture
Identify strategies and implement responses for the safe use of unmanned aerial systems		November 2014		TBDFootnote2	P3.1Footnote3
Improve marine transportation in the Arctic		Ongoing		TBD	P3.2
Strengthen marine incident prevention, preparedness and response in Canadian waters		March 2012		TBD	P3.2
Put forward new measures to reinforce railway safety		TBD		TBD	P3.3
Pursue amendments to the Motor Vehicle Safety ActEndnotexiii		Ongoing		TBD	P3.4
Refine and support the implementation of a multimodal strategic framework for promoting and overseeing Safety Management Systems and Security Management Systems across transportation modes		Ongoing		TBD	P3.9
Strengthen multimodal approach to risk-based business planning so we can develop and deliver consistent national oversight plans and reports		Ongoing		TBD	P3.9

Priority	Type		Strategic Outcomes and Programs
Advance initiatives that promote an environmentally responsible transportation system	New		SO2 A Clean Transportation System (All Programs) SO3 A Safe and Secure Transportation System (Program 3.2)
Description
To meet Canadians’ demand for a clean and resilient transportation system, and to ensure that Canada’s economy develops in a way that promotes environmental protection, we must consider both: the transportation sector’s current and long-term impact on the environment; and the environment’s current and long-term impact on the transportation sector.
Planned Initiatives		Start Date		End Date	Link to Department’s Program Alignment Architecture
Develop and administer transportation policies, regulations and programs, which promote safe and environmentally responsible shipping practices, in order to protect the marine environment and reduce the impact of marine pollution incidents in Canadian waters		Ongoing		TBD	P2.2
Work with partners to protect the marine environment by reducing impacts caused by transportation sources		Ongoing		TBD	P2.2
Identify strategic requirements in the North, with a focus on transportation infrastructure that will strengthen safe and environmentally responsible transportation for all modes		TBD		TBD	P2.2
Develop transportation sector regulations and the next generation of clean and resilient transportation initiatives		April 2011		TBD	P2.1 P2.2 P2.3 P3.2
Take measures to improve and strengthen marine tanker safety, including the national ship-source oil-spill preparedness and response regime, in-line with World-Class Tanker Safety activities, Phases 1 and 2		March 2012 March 2012		Spring 2018 TBD	P2.2 P3.2
Review the Navigation Protection Act to restore lost protections and incorporate modern safeguards		TBD		TBD	P2.3 P3.2
Develop an approach to advance the commitment to formalize a moratorium on crude oil tanker traffic on British Columbia’s North Coast, in collaboration with other federal departments		December 2015		TBD	P3.2

Priority	Type		Strategic Outcomes and Programs
Develop long-term federal strategies to improve Canada’s transportation sector and infrastructure, taking into account the recommendations of the Canada Transportation Act Review Panel	New		SO1 An Efficient Transportation System (All Programs) SO3 A Safe and Secure Transportation System (Programs 3.2 and 3.6)
Description
An efficient transportation system supports trade and economic prosperity, which contribute to Canadians’ quality of life. Having the right policy framework and adequate infrastructure for our key trade corridors is essential.
Planned Initiatives		Start Date		End Date	Link to Department’s Program Alignment Architecture
Initiate steps in the Government of Canada’s response to the Canada Transportation Act Review Report, which may include consultations with stakeholders on freight and passenger rail issues and a review of Canadian grain transportation		TBD		TBD	P1.1
Strengthen innovation and evidence-based policy making to ensure that Transport Canada has the policy instruments in place for the long-term efficiency of the transportation sector		Ongoing		TBD	P1.1
In cooperation with other ministers, develop and implement border-related initiatives, such as the Beyond the Border Comprehensive Preclearance Agreement between Canada and the U.S.		Ongoing		TBD	P1.1
Support the Minister of Infrastructure and Communities in the development and implementation of an Infrastructure Strategy, including support for Canada’s gateways and transportation corridors, public transportation and green infrastructure		Ongoing TBD		TBD TBD	P1.1 P1.2
Strengthen capacity to gather and incorporate timely data and analysis regarding user fees		November 2010		April 2018	P3.2
Develop long-term strategies for: rail; ferry services; pilotage; and aviation security		Ongoing Ongoing Ongoing TBD		TBD TBD TBD TBD	P1.1 P1.3 P3.2 P3.6

Priority	Type		Strategic Outcomes and Programs
Optimize integrated resources management within Transport Canada	New		Program 4 Internal Services (All Sub-Programs) All Strategic Outcomes (SOs)
Description
Transport Canada needs an approach to optimize the integrated planning and management of resources to: deliver its mandate; manage its funding allocation and program risks; and fund emerging priorities.
Planned Initiatives		Start Date		End Date	Link to Department’s Program Alignment Architecture
Position ourselves to adapt to new Information Management / Information Technology relating to simultaneous business transformation initiatives in an evolving context		Ongoing		TBD	SPFootnote44.5 and SP4.6 (All SOs)
Strengthen our approach to integrated planning, management, monitoring and reporting departmental resources (financial and human) to: align funding with priorities; reduce gaps between plans and year-end results; and facilitate the timely reallocation of resources		April 2016		TBD	P4 (All SOs)
Develop and implement targeted human resources recruitment and talent management strategies to address Transport Canada’s future workforce needs on a timely basis		April 2016		TBD	P4 (All SOs)

Risk Analysis

Operational Context

Canada’s transportation system continues to be one of the safest and most secure in the world. Long-term trends show overall declines in the rate of accidents and incidents across all modes of transportation. However, safety and security practices and mechanisms must be able to address shifting conditions and requirements in an agile manner, including where appropriate, harmonization among transportation modes. Security threats, affecting all modes of the transportation system, as well as cyber attacks and phishing scams, will require continued vigilance.

In the planning period and beyond, pressures will present challenges and opportunities for the transportation system. Examples include:

• demographic shifts;
• access to natural resources;
• fiscal constraints;
• environmental protection; and
• general global geopolitical and economic turbulence.

Northern communities are particularly affected by accessibility and development issues. The impacts of a changing climate remain an ongoing concern.

Key Risks and Risk Responses

Risk management is integrated into all facets of Transport Canada’s regulatory surveillance and program delivery activities. Transport Canada has:

• identified three key risk areas in its current Corporate Risk Profile; and
• identified and is implementing mitigation measures to address these risks.

The figure below shows three key opportunity areas, their residual impact and likelihood, while accounting for risk mitigation measures.

Figure 2: Transport Canada’s Corporate Risk Profile

 

[Text Version of Figure 2: Transport Canada’s Corporate Risk Profile]

The table below presents the key elements of Transport Canada’s risk response strategy:

Key Opportunities	Risk Response Strategy	Link to Program Alignment Architecture
R1. Safety and Security Oversight Effectiveness	As Canada’s transportation system becomes more complex, volumes increase and the nature of risks to the system change and multiply; safety and security oversight is becoming increasingly challenging. For example: Rapid fluctuations in demand for major commodities and trade patterns can challenge Transport Canada’s capacity to deliver timely oversight at the regional level. Transport Canada must strike a proper balance between the pressure to reduce the regulatory burden to foster competitiveness, with the need for more rigorous oversight to ensure the safety and security of Canadians. We must continue to renew and refresh our regulatory and legislative frameworks and adjust the Department’s approach to safety and security oversight. Specific mitigation measures include: Engaging and collaborating on voluntary and regulatory development initiatives with domestic and international stakeholders, including governments and multilateral institutions, such as the International Working Group on Land Transport Security. Strengthening and refining the Department’s oversight of Canada’s transportation system by developing and implementing standards, processes and procedures under the Transport Canada Directive on Safety and Security Oversight. Continuing to implement the Action Plan for Rail Safety as set out in the Office of the Auditor General’s Report of 2013, and responding to the Transportation Safety Board’sEndnotexiii August 2014 recommendations arising from the investigation into the Lac-Mégantic runaway train and main-track derailment. Developing additional standardized multimodal and modal training programs for inspectors, and expand their delivery.	SO3 A safe and secure transportation system
R2. Transportation System Efficiency and Reliability	Transportation policies, programs and infrastructure need to align with Canada’s economic and trade policies to maximize economic opportunities and optimize capacity in the supply chain. At the same time, Transport Canada continues to: Contribute to the federal government’s regulatory approach to limit greenhouse gas and air pollutant emissions from the transportation sector, while supporting innovation and clean technologies. Work to ensure that transportation links to remote areas are efficient and reliable so that the fluidity, predictability and reliability of existing transportation networks are maintained. Specific mitigation measures include: Developing and implementing legislation, regulations and programs that support clean transportation, including a plan to combat climate change and reduce greenhouse gas emissions. Working and coordinating with other federal departments to reduce impediments to trade with the U.S. (i.e., borders and the movement of goods and people). Working with other federal departments to improve marine safety and to develop an approach to formalize the moratorium on tanker traffic along British Columbia’s North Coast. Chairing the Commodity Supply Chain Table whose mandate is to: identify and address transportation system issues; improve the reliability, efficiency and effectiveness of the supply chain; and provide a consensus-based, multi-modal national forum for producers, shippers, service providers and other supply chain partners who are involved in moving commodities by rail.	SO1 An efficient transportation system SO2 A clean transportation system
R3. Security Incident Response Effectiveness	Global terrorism represents a significant threat to the transportation system. Despite the fact that specific or immediate threats to the transportation system may not be known, the evolving nature of security incidents requires continued surveillance so we can integrate information related to security threats into program design and strengthen emergency preparedness response protocols. Specific mitigation measures include: Strengthening the Surface and Intermodal Security Oversight Program by engaging and working cooperatively with rail and International Bridges and Tunnels (IBT) stakeholders to raise their understanding of, and compliance with, the rail and IBT security Memoranda of Understanding and assess regulatory options for passenger rail security. Developing and implementing the air incident response protocol with other government departments. Building on information sharing arrangements in place with Canadian and international intelligence partners.	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)

2016–17 Main Estimates	2016–17 Planned Spending	2017–18 Planned Spending	2018–19 Planned Spending
1,265,907,597	1,265,907,597	1,002,938,005	864,586,106

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])

2016–17	2017–18	2018–19
5,072	5,027	5,012

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)

The following tables present the:

• Planned spending for 2016–17 and for the next two fiscal years, by Program, in support of each Strategic Outcome;
• Total Departmental spending for all Programs for 2013–14 and 2014–15, and forecasted spending for 2015-16; and
• 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	2013-14 Expenditures	2014-15 Expenditures	2015-16 Forecast Spending	2016-17 Main Estimates	2016-17 Planned Spending	2017-18 Planned Spending	2018-19 Planned Spending
Strategic Outcome 1: An Efficient Transportation System
1.1 Transportation Marketplace Frameworks	A fair and secure marketplace	11,917,295	28,290,806	27,767,885	21,711,678	21,711,678	21,691,405	21,742,250
1.2 Gateways and Corridors	Strong economic growth	336,988,453	448,362,484	418,075,232	259,603,003	259,603,003	73,688,846	5,952,711
1.3 Transportation Infrastructure	Strong economic growth	363,848,205	455,366,393	423,180,139	415,437,562	415,437,562	338,824,026	316,037,849
1.4 Transportation Analysis and InnovationFootnote5		12,885,608	0	0	0	0	0	0
Strategic Outcome 1 Subtotal		725,639,561	932,019,683	869,023,256	696,752,243	696,752,243	434,204,277	343,732,810
Strategic Outcome 2: A Clean Transportation System
2.1 Clean Air from transportation	A clean and healthy environment	27,755,589	24,011,027	20,685,970	12,017,045	12,017,045	1,891,550	1,949,269
2.2 Clean Water from transportation	A clean and healthy environment	16,198,195	24,421,705	29,956,004	29,181,758	29,181,758	18,477,551	15,430,906
2.3 Environmental Stewardship of transportation	A clean and healthy environment	29,431,954	44,745,522	42,353,164	13,132,224	13,132,224	13,682,558	12,692,776
Strategic Outcome 2 Subtotal		73,385,738	93,178,254	92,995,138	54,331,027	54,331,027	34,051,659	30,072,951
Strategic Outcome 3: A Safe and Secure Transportation System
3.1 Aviation Safety	A safe and secure Canada	184,628,770	188,941,065	181,032,638	179,090,581	179,090,581	207,063,210	171,137,428
3.2 Marine Safety	A safe and secure Canada	59,638,305	69,847,859	68,217,817	56,814,328	56,814,328	54,016,429	53,514,853
3.3 Rail Safety	A safe and secure Canada	29,250,946	35,333,175	113,556,467	35,124,187	35,124,187	35,124,187	35,124,187
3.4 Motor Vehicle Safety	A safe and secure Canada	26,152,233	25,940,392	25,213,507	22,077,988	22,077,988	20,498,202	19,204,255
3.5 Transportation of Dangerous Goods	A safe and secure Canada	14,663,095	22,740,646	28,138,291	15,841,719	15,841,719	15,939,456	16,022,578
3.6 Aviation Security	A safe and secure Canada	29,743,295	32,722,389	29,068,147	29,781,105	29,781,105	29,770,900	29,604,144
3.7 Marine Security	A safe and secure Canada	12,331,970	14,429,160	12,332,233	12,950,665	12,950,665	12,818,042	12,818,042
3.8 Surface and Intermodal Security	A safe and secure Canada	4,280,788	5,096,531	5,121,377	4,586,439	4,586,439	4,586,439	4,586,439
3.9 Multimodal Safety and Security	A safe and secure Canada	10,722,526	19,315,574	20,799,423	11,363,639	11,363,639	10,889,503	10,889,503
Strategic Outcome 3 Subtotal		371,411,928	414,366,791	483,479,900	367,630,651	367,630,651	390,706,368	352,901,429
Internal Services Subtotal		170,195,608	165,516,583	176,508,944	147,193,676	147,193,676	143,975,701	137,878,916
Total		1,340,632,835	1,605,081,311	1,622,007,238	1,265,907,597	1,265,907,597	1,002,938,005	864,586,106

Trend Analysis

An Efficient Transportation System

Planned spending in An Efficient Transportation System is mostly impacted by cash flow changes in projects under the Asia-Pacific Gateway and Corridor Initiative^Endnotexiv and the Gateways and Border Crossings Fund^Endnotexvi. Funding levels for these programs normally fluctuate based on planned projects; however, funding levels start decreasing in 2015–16 as the programs reach their maturity or sunsetting date. For example, a peak in planned spending under Transportation Infrastructure occurred in 2014–15, due to the purchase of a replacement ferry vessel, followed by a gradual decline as a result of expected decreases in statutory payments to the St. Lawrence Seaway Management Corporation and sunsetting programs such as the Ports Asset Transfer Program^Endnotexvii and the Ferry Services Contribution Program^Endnotexviii.

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 decreases for the Federal Contaminated Sites Action Plan^Endnotexviii (Environmental Stewardship of Transportation Program) and the Next Generation of Clean Transportation^Endnotexix (Clean Air from Transportation Program), as funding for these initiatives ends March 31, 2016, while funding for the Smart Oceans Contribution Program (Clean Water from Transportation Program) ends March 31, 2017.

A Safe and Secure Transportation System

Planned spending for A Safe and Secure Transportation System varies over the planning horizon as a result of some internal funding reallocations, in order to better align expenditures with Transport Canada’s Program Alignment Architecture. Spending also varies 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 (e.g. Rail Safety). Forecast spending in 2014–15 and 2015–16 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 increase for Rail Safety in 2015–16 is the result of a one-time out-of-court settlement included in the 2015–16 forecast expenditures. The increase for Aviation Safety in 2017–18 is the result of capital funding for the Federal Infrastructure Initiative. Operating and Grants & Contributions funding is expected to remain fairly consistent after 2016–17, while 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 reduced funding levels for the internal services component of sunsetting programs. Spending can also vary from year to year as a result of changes in the type and number of investment projects undertaken each year.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2016-17 Planned Spending With the Whole-of-Government Framework^Endnotexxi (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	675,040,565
	A clean and healthy environment	54,331,027
	A fair and secure marketplace	21,711,678
Social affairs	A safe and secure Canada	367,630,651
International affairs	Not applicable
Government affairs	Not applicable

Departmental Spending Trend

For the 2016–17 fiscal year, Transport Canada plans to spend $1,266 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 $356 million from the 2015–16 forecast spending level of $1,622 million.

The decrease from 2015–16 to 2016–17 is the result of reduced spending plans on projects such as the Federal Contaminated Sites Action Plan, the Next Generation of Clean Transportation, the Ferry Services Contribution Program, and the Ports Asset Transfer Program, as funding for these projects approaches or reaches its maturity date. Other factors contributing to the decrease include the transfer of the Detroit River International Crossing project and team to Infrastructure Canada as well as a one-time, out-of-court settlement included in the 2015–16 forecast expenditures. These decreases are offset by an increase in planned spending for the Federal Infrastructure Initiative.

Overall, spending plans continue to decline after 2016–17, mostly as a result of a reduction in planned spending for the Asia-Pacific Gateway and Corridor Initiative, the Gateways and Border Crossings Fund and the Federal Infrastructure Initiative, as these initiatives reach their maturity dates.

Figure 3: Spending Trend for Transport Canada

 

[Text Version of Figure 3: Spending Trend for Transport Canada]

Estimates by Vote

For information on Transport Canada’s organizational appropriations, consult the 2016–17 Main Estimates^Endnotexxi on the Treasury Board of Canada Secretariat website.