2017-2018 Departmental Plan: Main Report

Institutional Head’s message

CanNor's work focuses on helping to build a diversified, sustainable and dynamic economy across the three territories, and in turn, contributing to Canada's prosperity.

The North is a region with much opportunity for economic development, with a young and vibrant population living across a vast area of land, rich with resource potential and growing skilled business capacity. However, building sustainable northern economies will continue to require an increased focus on investments that contribute to economic diversification and clean growth. To this end, the Agency supports opportunities to innovate, to diversify and to build on the natural assets of the North through a suite of contribution programs, the Northern Projects Management Office (NPMO), and by serving as a strong advocate for the North.

CanNor delivers a selection of programs and services in partnership with governments, Indigenous organizations, non-government organizations (NGOs), and the private sector across the three territories to maximize impacts in the North. Through its Northern Projects Management Office, the Agency plays an important role by facilitating federal involvement in the northern environmental review processes for proposed major resource development and infrastructure projects in northern Canada. The Office also provides issues management, path-finding and advice to industry and communities. CanNor also serves as a voice for the North, sharing its insights, knowledge and partnerships to help inform federal policy.

As CanNor looks ahead to the coming year, the Agency will continue to invest in the activities that help the development and diversification of the northern economy. Whether through supporting new and emerging industries or firms with growth potential, the development and adoption of northern clean technologies, or helping Northerners build the capacity needed to participate more fully in the labour market, CanNor will play a key role in the North's inclusion in the Government of Canada's Innovation Agenda. Finally, CanNor will focus on continuing to review its programs and processes with the objective of continuous improvement of our service delivery to ensure Northerners – and Canadians – are getting the most effective results.

Janet King
President of the Canadian Northern Economic

Plans at a glance

In 2017-18, CanNor will continue to help develop a diversified, sustainable, and dynamic economy across Canada's three territories. To do so, CanNor will direct contribution funding programs, and Northern Projects Management Office services, to support business and sustainable resource development, skills development and community development. The Agency will leverage opportunities for innovation and growth in areas including tourism, fisheries, mining and cultural industries; these activities are expected to result in new opportunities for northern businesses, communities, organizations and individuals to contribute their expertise, cultures and innovation to grow Canada's economy.

CanNor's focus for 2017-18 includes the following:

1. Support the development of the Innovation Agenda
   
   CanNor will ensure that its unique northern knowledge, presence and relationships are fully exercised in the implementation of the Government of Canada's Innovation Agenda. In 2017-18, the Agency will invest a minimum of $2 million in renewable energy and clean technologies. Investments in clean energy have the potential not only to lower the high cost of doing business, but would also help accelerate clean growth in the North. CanNor will also work to strengthen linkages between the northern innovation ecosystem and both northern and southern expertise, capital and markets, and help to provide Northerners with the skills they need to participate in the growing economy. These connections will help to develop and commercialize new products and services.
2. Advancing Northern Economic Development
   
   CanNor will advance northern economic development by supporting projects that contribute to economic growth and diversification. Through the Northern Aboriginal Economic Opportunities Program (NAEOP), CanNor supports increased participation of northern Indigenous communities and businesses in the economy. This year, the Agency will conclude an evaluation of NAEOP that will be used to strengthen program delivery and results-based outcomes. CanNor will continue to deepen its relationship with partner organizations that deliver Indigenous business funding and services on behalf of the Agency, ensuring that they can continue to assist Indigenous small and medium-sized enterprises (SMEs) to develop into sustainable companies with long-term growth potential.
   
   The Strategic Investments in Northern Economic Development Program (SINED), which aims to create the conditions for long-term sustainable economic development, will sunset on March 31, 2018. The Agency is reviewing the program with a view to determining how to best support long-term, sustainable economic development in the North.
3. Advancing Major Projects Across the North
   
   In 2017-18, CanNor's NPMO will continue to facilitate the advancement of approximately 30 major resource projects currently engaged in the environmental assessment process. These efforts help support sustainable resource development, a significant economic enabler for the three northern economies. The Northern Projects Management Office coordinates a transparent approach to the federal participation in the review and approval of major projects, including maintaining the official Crown consultation record. Over the long-term, these projects have the potential to generate 10,000 jobs for the North and $38 billion in capital investments.
   
   For more information on CanNor's plans, priorities and the planned results, see the "Planned results" section of this report.

Raison d'être, mandate and role: who we are and what we do

Operating context: conditions affecting our work

Canada's territories are home to approximately 114,000 people, half of whom are Indigenous, living across over 40% of Canada's landmass. The northern governance landscape is composed of various settled and unsettled land claims and self-governing Indigenous organizations.

Economic development and growth throughout the territories is challenging due to a sparse and widely distributed population, cyclical downturns due to a dependence on natural resource extraction, a significant infrastructure deficit, high energy costs and labour-market challenges. These challenges inform CanNor's activities and operations, and impact how it delivers on its mandate.

The North's natural resources will continue to be a strong foundation for economic growth. According to the Conference Board of Canada's latest Territorial Outlook, northern Gross Domestic Product (GDP) is forecasted to grow moderately during 2017. Regional differences, however, are pronounced with positive percentage changes forecast in GDP growth for NWT and Nunavut (4.9% and 15.6% respectively), as new mines are expected. Whereas the forecast for the Yukon is a negative percentage change in GDP (-7.7%), given that there are currently no operating mines. Over the medium- and long-term, it is expected that resource development will increase, however building sustainable northern economies will continue to require an increased focus on investments that contribute to economic diversification and ultimately, clean growth.

Many northern communities have a significant infrastructure deficit, including a lack of affordable and reliable connectivity when compared to southern Canada. With nearly 70% of northern communities relying on aging diesel generators for power, the high price of energy drives up the cost of doing business in the North, which impedes economic development efforts. Increased investments in clean technologies and information technology (IT) infrastructure will present new economic development opportunities for the North to grow and diversify and may help to lower the overall cost of doing business.

Climate change is bringing both challenges and opportunities to the northern economy. Warming temperatures have led to permafrost degradation resulting in the deterioration of some infrastructure and has shortened the operating season and load capacity of winter roads with associated challenges to businesses and communities. However, melting ice conditions in the high Arctic provides opportunity for increased international shipping and tourism.

CanNor works closely with ISED and its portfolio organizations, and across government departments, to implement the roll out of national activities, such as targeted support for clean technology activities, the Accelerated Growth Service (AGS) and the Canada 150 Community Infrastructure Program (CIP 150). This continued collaboration will support the Agency's efforts as it advances plans and priorities in support of northern economic development.

Key risks: things that could affect our ability to achieve our plans and results

While the North presents opportunities for economic development, growth and innovation, factors including its vast and remote geography, lack of infrastructure, connectivity challenges, the cost and access to energy, and shortage of skilled labour all contribute to a challenging operating environment. These factors present added challenges for businesses and also prevent Northerners from fully benefiting from economic development opportunities.

CanNor's key risks and response strategies:

Planned results: what we want to achieve this year and beyond

Spending and human resources

Planned spending

Text description of the Departmental spending trend graph

	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
Sunset Programs- Anticipated	0	0	33,862,292	28,168,000	2,357,461	2,465,964
Statutory	1,462,388	1,339,601	1,735,689	1,381,597	1,107,342	1,107,342
Voted	47,658,173	45,608,819	20,482,779	20,531,586	20,531,586	20,531,586
Total	49,120,561	46,948,420	56,080,760	50,081,183	23,996,389	24,104,892

Sunsetting of both the Strategic Investments in Northern Economic Development Program ($19.8 million) and the Canada 150 Community Infrastructure Program ($6.4 million) in 2017-18 make up the majority of the overall reduction from 2018-19 onward. Decisions regarding the extension, reduction or enhancement of programs and funding will be reflected in the Agency's future budget exercises and Estimate documents.

Budgetary planning summary for Programs and Internal Services (dollars)

Programs and Internal Services	2014–15 Expenditures	2015–16 Expenditures	2016–17 Forecast spending	2017–18 Main Estimates	2017–18 Planned spending	2018–19 Planned spending	2019–20 Planned spending
Economic Development	38,684,842	36,670,762	44,961,514	39,880,184	39,880,184	13,761,172	13,761,172
Policy and Alignment	3,955,430	3,949,912	4,294,927	4,222,127	4,222,127	4,259,896	4,368,399
Subtotal	42,610,272	40,620,674	49,256,441	44,102,311	44,102,311	18,021,068	18,129,571
Internal Services	6,480,289	6,327,746	6,824,319	5,978,872	5,978,872	5,975,321	5,975,321
Total	49,120,561	46,948,420	56,080,760	50,081,183	50,081,183	23,996,389	24,104,892

• From 2014-15 to 2015-16, significant adjustments included the reduction of funding for the Northern Adult Basic Education Program by $3.0 million, and an increase of $1.4 million in the second year of the Centre for Northern Innovation in Mining initiative.
• From 2015-16 to 2016-17, the majority of the increase to the Agency's overall budget was due to new funding for the Canada 150 Community Infrastructure Program ($6.4 million). This was partially offset by a reduction of $1.3 million funding for the Centre for Northern Innovation in Mining. Other minor program adjustments also occurred during program renewal. A carry-forward of $720,000 was included in 2016-17.
• The Northern Adult Basic Education Program and the Centre for Northern Innovation in Mining initiative are expected to sunset on March 31, 2017 which accounts for the decrease in 2017-18.

 

Supplementary information

Supporting information on lower-level programs

• Supporting information on lower-level programs is available on CanNor's website and in the TBS InfoBase.

Supplementary information tables

The following supplementary information tables are available on CanNor's website.

• Details on transfer payment programs of $5 million or more
• Upcoming evaluations over the next five fiscal years
• Upcoming internal audits for the coming fiscal year

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in this report are the responsibility of the Minister of Finance.

Organizational contact information

Head Office:
Allavvik Building
1106 Inuksugait Plaza IV
Iqaluit, Nunavut
X0A 0H0
Canada

Telephone: 1-855-897-2667
Email: InfoNorth@cannor.gc.ca
Email the Northern Projects Management Office: npmo.bgpn@cannor.gc.ca
Website: cannor.gc.ca

Appendix: definitions

appropriation (crédit)
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Core Responsibility (responsabilité essentielle)
An enduring function or role performed by a department. The intentions of the department with respect to a Core Responsibility are reflected in one or more related Departmental Results that the department seeks to contribute to or influence.

Departmental Plan (Plan ministériel)
Provides information on the plans and expected performance of appropriated departments over a three-year period. Departmental Plans are tabled in Parliament each spring.

Departmental Result (résultat ministériel)
A Departmental Result represents the change or changes that the department seeks to influence. A Departmental Result is often outside departments' immediate control, but it should be influenced by program-level outcomes.

Departmental Result Indicator (indicateur de résultat ministériel)
A factor or variable that provides a valid and reliable means to measure or describe progress on a Departmental Result.

Departmental Results Framework (cadre ministériel des résultats)
Consists of the department's Core Responsibilities, Departmental Results and Departmental Result Indicators.

Departmental Results Report (Rapport sur les résultats ministériels)
Provides information on the actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

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

government-wide priorities (priorités pangouvernementales)
For the purpose of the 2017–18 Departmental Plan, government-wide priorities refers to those high-level themes outlining the government's agenda in the 2015 Speech from the Throne, namely: Growth for the Middle Class; Open and Transparent Government;  A Clean Environment and a Strong Economy; Diversity is Canada's Strength; and Security and Opportunity.

horizontal initiatives (initiative horizontale)
A horizontal initiative is one in which two or more federal organizations, through an approved funding agreement, work toward achieving clearly defined shared outcomes, and which has been designated (e.g. by Cabinet, a central agency, etc.) as a horizontal initiative for managing and reporting purposes.

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

non-budgetary expenditures (dépenses non budgétaires)
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

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

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

performance reporting (production de rapports sur le rendement)
The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

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

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

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

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

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

Program Alignment Architecture (architecture d'alignement des programmes)
A structured inventory of an organization's programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

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

statutory expenditures (dépenses législatives)
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

Strategic Outcome (résultat stratégique)
A long-term and enduring benefit to Canadians that is linked to the organization's mandate, vision and core functions.

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

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

voted expenditures (dépenses votées)
Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.