Section I: Organizational Expenditure Overview

Organizational Profile

Minister:  The Honourable Lisa Raitt, P.C., M.P.

Deputy head:  Louis Lévesque

Ministerial portfolio:  Transport Canada

Year established:  1936

Main legislative authorities:  Department of Transport Act ^Endnote (R.S., 1985, c. T-18)

Transport Canada administers over 50 laws related to transportation^Endnote and also shares the administration of many others. Access to the full text of federal acts and regulations is provided by Justice Canada, which is responsible for maintaining the Consolidated Statutes of Canada^Endnote .

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^Endnote 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.

The federal Government, with Transport Canada in the lead, has sole responsibility for matters such as aviation safety and security; for other matters, we share responsibility with provincial, territorial and municipal governments. We must also work with trading partners and in 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 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 world-wide work together effectively and efficiently.

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

• 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 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.

Strategic Outcomes and Program Alignment Architecture (PAA)

As illustrated in Figure 1, Transport Canada's 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 sixteenth Program, Internal Services supports all three strategic outcomes.

To better align itself to the Government of Canada outcome areas^Endnote   the department has modified its Program Alignment Architecture. Revisions from 2013–14 to 2014–15 include the following:

• Transfer of Program 1.4, Transportation Analysis and Innovation under Program 1.1, Transportation Marketplace Frameworks to create a new sub-program 1.1.5, Transportation Analysis and Innovation; and
• Deletion of sub-program 3.1.3, Airports Capital Assistance program, and merging of activities within sub sub-program 1.3.1.3, Small Aerodrome Support.

Figure 1: Transport Canada 2014–15 Program Alignment Architecture (PAA)

 

[Text Version of Figure 1]

Organizational Priorities

Transport Canada has identified five priorities for 2014–15. These priorities are aligned with Government of Canada (GoC) priorities, support the achievement of its 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? Implement standardized multimodal oversight guidelines to support the consistent application of national procedures, refine risk-based inspection planning/reporting and mandate key components of quality assurance programs; Implement an action plan for transportation of dangerous goods by rail including enhanced risk-assessment tools to identify and adapt to changing patterns of trade; Develop comprehensive human resources plans for strengthening recruitment and training regimes for inspectors, technical experts and regulators to ensure all modes have the required skills and competencies to deliver on our current and future activities; and Develop a plan for multimodal enforcement.

 

Priority	Type	Strategic Outcomes and Programs
Continue to contribute to the Government's Responsible Resource Development agenda	Ongoing	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? Implementing measures to support responsible resource development that will strengthen tanker safety, the nation's oil-spill preparedness and response regime, and safe and environmentally responsible marine shipping; and Advancing an integrated Transport Canada approach to transportation 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 1.2 ) 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 and contributes to Canadians' quality of life. Having adequate infrastructure for our key trade corridors is essential for the transportation system. What are the plans for meeting this priority? Advancing the Detroit River International Crossing (DRIC) project through the procurement stage; Advancing the New Bridge for the St.Lawrence in Montreal through the procurement stage; Supporting the efficiency of Canada's gateways through stakeholder engagement, system fluidity analysis, and strategic investment; and Carrying out Beyond the Border Action Plan initiatives related to cross-border transportation facilitation and security.

 

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 strategic 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? Reviewing government policies, programs and regulations related to the air sector with a view to current and future economic prosperity and service levels; Reviewing current policies related to the marine sector with a view to supporting economic growth; Developing an integrated Transport Canada approach to northern transportation that aligns with initiatives by other government departments (OGDs) and other jurisdictions (e.g., Northern Strategy Phase II, Arctic Council shipping agenda, territorial transportation plans) and strengthens transportation as an enabler of economic development without compromising the northern environment; Implementing actions to strengthen climate change adaptation knowledge and capacity, and improving how Transport Canada integrates adaptation into decision making; Refining and implementing the long-term airports and ports infrastructure strategies, including the devolution of assets to local communities; and Promoting good governance in Crown corporations and other arm's-length entities in the Transport Canada portfolio.

 

Priority	Type	Strategic Outcomes and Programs
Adopt the Government of Canada's efficiency and renewal measures	New	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 resource efficiency. In this regard, Transport Canada is working towards achieving excellence in public service. What are the plans for meeting this priority? Engage employees in the Clerk of the Privy Council's initiative to develop the public service of the future, Blueprint 2020; Improve the consistency of employee-performance management to enhance productivity; Improve business processes within the department and contributing/adopting whole-of-government solutions to find efficiencies; andEnhance 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

The external and internal risk and opportunity drivers that we expect will affect Canada's transportation system over the 2014–15 planning horizon are outlined in the following paragraphs. They were identified through an environmental scan in Spring 2013, as part of our integrated planning and reporting process.

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

Transport Canada has a highly knowledgeable, skilled, experienced, age-diverse workforce, and extensive collaborative networks and partnerships. However, there is an opportunity to better align safety and security practices and mechanisms between modes and across Transport Canada organizations. 

Web and mobile technologies, as well as access to government and partner data could help to increase work productivity/efficiency and flexibility, improve engagement and knowledge transfer; and provide accurate and timely delivery of information and services to citizens/clients. Security threats, affecting all modes of the transportation system, will require continued vigilance, and governments and industry will need to adapt quickly to changes in the environment and to incidents in order to maintain public confidence towards transportation.

Key Risks and Risk Responses

The analysis of challenges and opportunities that could affect Canada's transportation system sets the context in which Transport Canada must identify the range of possible risks, 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. Risk management is integrated in all facets of Transport Canada's activities. The risks that have the most significant potential to affect the department's objectives are identified in the Corporate Risk Profile (CRP).

Transport Canada has identified four key risk areas in its current CRP. The department has also identified and implemented mitigation measures, or risk responses. The identification of risks and the development of risk responses contribute to making decisions related to setting departmental priorities, planning, allocating resources, developing policies, managing programs and reporting on performance. The four key risk areas and their impact and likelihood placement are shown below:

Transport Canada's Corporate Risk Profile 2013-14

 

[Text Version of Transport Canada's Corporate Risk Profile 2013-14]

The key elements of our risk response strategy are presented in the following table:

Risk	Risk Response Strategy	Link to Program Alignment Architecture
R1.Safety and Security Oversight Effectiveness	The regulatory framework must remain current in the context of continuing change, and Transport Canada's internal governance and processes must adequately support oversight of the national transportation system. Oversight also requires accountability and effective management by all partners in the safety/security chain. Key responses include: Strengthen and refine Transport Canada's oversight of the Canadian transportation system by developing and adopting a Transport Canada Directive to industry on safety and security oversight; Strengthen and implement 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 as set out in the 2013 Fall Report of the Auditor General; Enhance the consistent application of national and modal risk-based inspection planning/reporting and enforcement regimes/strategies; Develop and adopt a program of regulatory capacity building; 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. This will also involve mapping business functions to IM/IT applications to identify a model business architecture for the rationalization of systems.	SO3 – A safe and secure transportation system
R2.People Management	Continuing change, including implementation of new action plans consistent with recommendations from the Office of the Auditor General or the Transportation Safety Board, increases the inherent people management risk. Other risk factors that impact people management are:  change in the nature of the work and related competencies, workload pressures, and workplace issues. Key responses include: People management strategies integrated to workforce planning and learning/development for all three Strategic Outcomes and Internal Services.	Across all three SOs and Internal Services
R3.Transportation System Efficiency and Reliability	Maintaining safety and security requirements and transportation system fluidity is critical. 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 (DRIC) project and the new Bridge for the St. Lawrence in Montreal Review Government policies, programs and regulations related to the air, marine and rail sector; Carry out Beyond the Border Action Plan initiatives; and Take steps to strengthen 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 remains critical. 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 implement the Beyond the Border Action Plan security initiatives; Continue to closely monitor cyber threats to Transport Canada's mission-critical infrastructure by working with key government partners and putting action plans in place; Enhance departmental response plans and arrangements (e.g., Incident Management Team, Crisis Management Team); Strengthen security program capacity, including the Marine Security Oversight and Enforcement program, as well as the Surface and Intermodal Security Oversight program; and Assess instruments for rail security and strengthen those as appropriate.	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 (Planned Spending—dollars)

2014-15Footnote 2 Main Estimates	2014-15 Planned Spending	2015-16 Planned Spending	2016-17 Planned Spending
1,655,682,494	1,667,473,998	1,400,768,405	951,202,623

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)

2014-15	2015-16	2016-17
5,222	5,172	5,003

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)

The following tables present:

• the forecasted spending for 2013–14 and planned spending for the next three fiscal years, by Program, in support of each Strategic Outcome;
• the total departmental spending for all Programs forecasted for 2013–14 and planned for the next three fiscal years; and
• the Strategic Outcomes 1, 2 and 3 Program contribution alignments to the Government of Canada outcomes.

Strategic Outcomes, Programs and Internal Services	Government of Canada Outcomes	2011-12 Expenditures	2012-13 Expenditures	2013-14 Forecast Spending	2014-15 Main Estimates	2014-15 Planned Spending	2015-16 Planned Spending	2016-17 Planned Spending
Strategic Outcome 1:  An Efficient Transportation System
1.1 Transportation Marketplace Frameworks	A fair and secure marketplace	20,956,118	18,509,599	25,260,044	24,854,622	24,854,622	24,469,049	22,428,601
1.2 Gateways and Corridors	Strong economic growth	200,212,375	395,779,631	385,912,970	702,272,494	702,272,494	464,388,875	82,834,845
1.3 Transportation Infrastructure	An innovative and knowledge-based economy	398,295,633	341,302,631	387,805,067	333,815,823	333,815,823	321,806,362	321,796,669
Strategic Outcome 1 Subtotal		619,464,125	755,591,861	798,978,081	1,060,942,939	1,060,942,939	810,664,286	427,060,115
Strategic Outcome 2:  A Clean Transportation System
2.1 Clean Air from transportation	A clean and healthy environment.	13,861,144	18,757,426	27,363,666	38,992,028	38,992,028	25,567,021	1,514,038
2.2 Clean Water from transportation	A clean and healthy environment.	7,411,839	6,947,514	18,714,336	18,074,900	18,074,900	15,986,890	13,620,627
2.3 Environmental Stewardship of transportation.	A clean and healthy environment.	23,206,885	20,059,193	33,657,212	29,171,557	29,171,557	32,807,561	10,697,815
Strategic Outcome 2 Subtotal		44,479,869	45,764,133	79,735,214	86,238,485	86,238,485	74,361,472	25,832,480
Strategic Outcome 3:  A Safe and Secure Transportation System
3.1 Aviation Safety	A safe and secure Canada.	189,468,575	166,997,248	169,558,382	170,709,221	170,709,221	168,384,202	167,941,964
3.2 Marine Safety	A safe and secure Canada.	75,594,201	56,523,301	60,743,567	56,003,982	56,003,982	54,913,444	50,230,092
3.3 Rail Safety	A safe and secure Canada.	32,660,772	33,764,015	33,087,889	34,265,437	34,265,437	34,227,368	33,809,216
3.4 Motor Vehicle Safety	A safe and secure Canada.	23,838,054	22,907,051	25,892,771	20,905,007	20,905,007	21,226,354	19,928,917
3.5 Transportation of Dangerous Goods	A safe and secure Canada.	13,961,560	12,766,509	12,665,370	14,727,734	14,727,734	14,793,190	14,576,040
3.6 Aviation Security	A safe and secure Canada.	43,011,088	33,684,478	30,062,162	31,672,052	31,672,052	29,778,292	29,503,436
3.7 Marine Security	A safe and secure Canada.	18,026,402	14,022,948	12,837,208	12,788,946	12,788,946	12,780,880	12,691,055
3.8 Surface and Intermodal Security	A safe and secure Canada.	5,618,868	3,967,849	4,229,483	4,739,231	4,739,231	4,671,670	4,541,375
3.9 Multimodal Safety and Security	A safe and secure Canada.	0	0	11,778,992	11,153,164	11,153,164	10,969,705	10,864,344
Strategic Outcome 3 Subtotal		402,179,519	344,633,398	360,855,823	356,964,774	356,964,774	351,745,105	344,086,439
Internal Services Subtotal		215,067,453	186,488,777	174,443,597	151,536,296	163,327,800	163,997,542	154,223,589
Total		1,281,190,966	1,332,478,169	1,414,012,715	1,655,682,494	1,667,473,998	1,400,768,405	951,202,623

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.  Funding levels for these programs normally fluctuate based on planned projects and start decreasing in 2015–16 as the programs reach their end date. Planned spending in Transportation Infrastructure peaked in 2011–12 as a result of one time grants to first nations for the Port of Prince Rupert development. 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 increases in 2013–14 as a result of changes in project cash flows for the Federal Contaminated Sites Action Plan. Planned spending peaks in 2014–15 as projected cash flows for the Next Generation of Clean Transportation program are at a maximum.  Funding for both of these programs ends in 2015-16 resulting in a drop in planned spending from 2015–16 to 2016–17.

A Safe and Secure Transportation System: Planned spending for A Safe and Secure Transportation System peaked in 2011–12 and decreased in the following years 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 to better align expenditures with Transport Canada's Program Alignment Architecture.

Internal Services: Planned spending for Internal Services peaked in 2011–12 and drops 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.

Alignment to Government of Canada Outcomes

2014-15 Planned Spending by Whole-of-Government-Framework Spending Area (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	702,272,494
	A clean and healthy environment	86,238,485
	An innovative and knowledge-based economy	333,815,823
Social Affairs	A safe and secure Canada	354,712,574
International Affairs	Not applicable	0
Government Affairs	Not applicable	0

Departmental Spending Trend

For the 2014–15 fiscal year, Transport Canada plans to spend $1,667 million to meet the expected results of its programs activities and to contribute to its Strategic Outcomes. This represents a net increase in planned spending of $253 million over the 2013–14 forecast spending level of $1,414 million.

The difference is related primarily to a planned spending increase in the Gateways and Corridors Program and specifically, the Gateway and Borders Crossing Fund that is partially offset by a planned reduction in spending for the Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund.

Transport Canada will contribute to the Economic Action Plan's commitment to refocus government and programs; make it easier for Canadians and business to interact with government; and modernize and streamline the back office.  In 2012–13, Transport Canada saved a total of $37 million.  In 2013–14, the savings will increase to $47 million, with ongoing savings of $62.1 million by 2014–15.

Figure 2 Spending Trend for Transport Canada

 

[Text Version of Figure 2]

Estimates by Vote

To learn more about our organizational appropriations, please see the 2014-15 Main Estimates publication.^Endnote

Contribution to the Federal Sustainable Development Strategy (FSDS)

The 2013-16 Federal Sustainable Development Strategy (FSDS)^Endnote , tabled on November  4,  2013, guides the Government of Canada's 2013-16 sustainable development activities. The FSDS articulates Canada's federal sustainable development priorities for a period of three years, as required by the Federal Sustainable Development Act (FSDA). 

Transport Canada ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the federal Strategic Environmental Assessment (SEA) process, any new policy, plan, or program initiative must include an analysis of its impact on attaining the FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the department's commitment to achieving the FSDS goals and targets.

Transport Canada contributes to Theme I – Addressing Climate Change and Air Quality; Theme II - Maintaining Water Quality and Availability; Theme III - Protecting Nature and Canadians; and Theme IV - Shrinking the Environmental Footprint – Beginning with Government, as denoted by the visual identifiers below.

 

These contributions are part of the following Program activities and are further explained in Section II:

• 2.1 Clean Air from Transportation;
• 2.2 Clean Water from Transportation
• 2.3 Environmental Stewardship of Transportation; and
• 3.5 Transportation of Dangerous

You will find more details on Transport Canada's activities to support sustainable development in Section II of this RPP and on the departmental website on Sustainable Development^Endnote . For complete details on the Strategy, please visit the Federal Sustainable Development Strategy^Endnote website.