2021-22 Departmental Plan: Main Report

From the Minister

The Canadian Northern Economic Development Agency (CanNor) and the Innovation, Science and Economic Development (ISED) portfolio are working to position Canada as an innovation leader on the global stage by fostering a diverse, growing, competitive, sustainable and inclusive economy for all Canadians.

While the Government of Canada's priority continues to be fighting COVID-19 and protecting Canadians' health and safety, the ISED portfolio is committed to fostering conditions for investment, enhancing Canadian innovation, and driving growth in key sectors. Together, we will strengthen the Canadian economy and restore consumer confidence through strategic actions, including investing in training for workers, and supporting Canadian businesses as they adapt and grow in a knowledge-based economy.

In support of these commitments, CanNor continues on its mission to develop a diversified, sustainable, and dynamic economy across Canada's territories. The Agency maintains and fosters partnerships to better respond to economic challenges and opportunities in the North, and also makes investments that advance economic recovery for businesses across the territories.

In 2021-2022, CanNor is continuing to focus on making strategic investments in the foundations and structures already in place, thereby helping the Northern economy be resilient. Through the Agency's relief and recovery funding, and its economic development programs such as Inclusive Diversification and Economic Advancement in the North (IDEANorth), CanNor is well-positioned to continue supporting businesses and contributing to the development of strong and sustainable economies in Nunavut, Northwest Territories and Yukon.

Finally, in tackling some of today's most pressing challenges, such as climate change, clean growth and a healthy society, ISED and its portfolio will continue to invest in science and research. We will also ensure that federal research is fully available to the public; that researchers can freely share their work; and that evidence-based approaches are utilized when the Government makes decisions. In doing so, we will facilitate the kind of new discoveries made by Canada's leading researchers and academics that help us all.

Together with Canadians of all backgrounds, regions and generations, we are building a strong culture of innovation to position Canada as a leader in the global economy. For more information, it is our pleasure to present the 2021-22 Departmental Plan for the Canadian Northern Economic Development Agency.

From the President

In 2021-2022, the Government of Canada is making strategic investments that will help Canada recover from the effects of COVID-19 on our economy. Canada's territories are significantly impacted by the pandemic, and CanNor was there for Northerners from the beginning with immediate support to small- and medium-sized businesses through our direct relief funding. Northerners continue to show their resiliency in the face of the pandemic, and we work alongside our partners and stakeholders to identify and make strategic investments in foundational economic development projects across the territories.

CanNor's Pan-Territorial Growth Strategy, a made-in-the-North plan for economic development, remains relevant and holds the keys to economic recovery in the territories with a focus on four key pillars: a skilled workforce, infrastructure investments, resource development and diversification and innovation.

Our commitment to build diversified and dynamic economies and foster long-term sustainability across the territories can only be achieved by working on the ground and in collaboration with Indigenous and territorial governments, communities, businesses and organizations. CanNor is paving the path for growth and economic prosperity across the territories by making investments that aim to strengthen the Northern economy. Through the Inclusive Diversification and Economic Advancement in the North (IDEANorth) program, CanNor supports sector and capacity development, business scale-up and productivity, and foundational and small-scale economic infrastructure. Our Northern Aboriginal Economic Opportunities Program (NAEOP) continues to foster the capacity of Indigenous businesses and communities, helping position them to contribute to economic recovery and growth. Additionally, CanNor's Northern Isolated Community Initiatives (NICI) fund supports innovative community-led projects for local and Indigenous food production that aim to address challenges in accessing healthy food in the territories.

CanNor's Northern Projects Management Office (NPMO) continues to play a coordinating and convening role which is an important part of the Agency's mandate in the North. NPMO facilitates federal participation in the environmental assessments of infrastructure and resource development projects, while ensuring the adequacy of Crown consultations with Indigenous communities.

Established in 2016, Pilimmaksaivik (the Federal Centre of Excellence for Inuit Employment in Nunavut), hosted within CanNor, leads a government-wide approach to Inuit employment in Nunavut by providing coordination, monitoring and reporting, outreach and awareness, on Inuit employment for federal departments and agencies pursuant to Article 23 of the Nunavut Agreement.  Looking ahead, Pilimmaksaivik will continue to address barriers to Inuit employment and advancement by working with partners to advance strategic recruitment initiatives and deliver innovative new training and supports.

As we continue on the road to economic recovery, CanNor remains committed to working with Northerners to make sure communities stay resilient, have opportunities to grow and prosper, and that we fulfil our commitments to Indigenous reconciliation.

By working together, we ensure a strong and bright future for the North, which in turn contributes to the success of Canada as a whole.

Plans at a glance

The Canadian Northern Economic Development Agency (CanNor) will continue working with partners to advance economic development in Canada's territories. The Agency supports and advocates for national, territorial and community level economic development; fosters growth and innovation; contributes to building capacity; and invests in foundational economic development projects in the territories.

Much like all other parts of Canada, the territories were subject to a range of economic challenges due to the COVID-19 pandemic throughout 2020-21. Impacts across sectors, and from one territory to another, have not been uniform, and uncertainties still exist for the territorial economies.

Mining operations, which make up the largest private-sector employers in the territories, have faced increased costs and challenges in operating at capacity, and have faced delays in environmental assessment processes. The construction industry, which is tied to resource extraction and the availability of fly-in fly-out workers, has experienced delays and constraints. The tourism sector, an important source of economic diversification for the North, was hardest hit of all sectors in 2020.

In order to help pave the way for economic recovery, CanNor will continue to make investments that advance various sectors of the economy by providing Northerners with the tools, skills, and infrastructure that they need in order to capitalize on opportunities. In doing so, the Agency will take into consideration the unique circumstances of each territory in the recovery process.

In 2021-22, CanNor will continue its role as a convener of federal, territorial and other partners based on the priorities in the Agency's Pan-Territorial Growth Strategy over the five-year period ending in 2023-24.

The Strategy has four interrelated areas of action that are relevant to economic recovery and will foster long-term sustainability, helping the territories improve their overall self-reliance and continue on a path of prosperity:

• Skilled Workforce: Strengthen the northern workforce by equipping Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.
• Infrastructure Investments and Development: Leverage future investments in, and the ongoing operation of, major infrastructure projects to maximize local and regional economic opportunities.
• Resource Development: Support the sustainable development of the mining and energy sectors throughout the development cycle to increase community capacity, maximize jobs and wealth within the territories, and produce positive economic impacts in northern communities.
• Diversification and Innovation: Foster sustainable growth in other economic sectors with a focus on strengthening entrepreneurship, northern innovation, and tourism.

CanNor's suite of economic development programs will help to advance these priorities. These programs include focused Indigenous programming, support to food systems, and our flagship program, Inclusive Diversification and Economic Advancement in the North (IDEANorth), which invests in foundational and small-scale economic infrastructure, sector development and capacity building to help position Northerners to take advantage of Canada's innovation economy.  In 2021-22, as a result of Budget 2019 investments, CanNor will have an additional $15 million in contribution funding under IDEANorth, allowing the Agency to invest in a wider range of initiatives to address the higher the cost of doing business in the territories.

Resource development is a significant driver of the territorial economy. CanNor, through the Northern Projects Management Office (NPMO), will continue to play an important role by providing support, guidance, and advice to proponents and Indigenous communities as well as coordinating Crown consultation for federal regulators during the environmental assessment of major projects.

In addition to targeted actions in the territories, CanNor will work with other federal departments to help advance broader Government of Canada commitments, including economic reconciliation with Indigenous peoples, the continued implementation of the Arctic and Northern Policy Framework and the advancement of the United Nations 2030 Agenda for Sustainable Development.

Through its work, CanNor will help to position the territories for success, as a strong territorial economy benefits all of Canada.

For more information on CanNor's plans, priorities and planned results, see the "Core responsibilities: planned results and resources, and key risks" section of this report.

Core responsibilities: planned results and resources, and key risks

This section contains detailed information on the department's planned results and resources for each of its core responsibilities. It also contains information on key risks related to achieving those results.

Internal Services: planned results

Spending and human resources

This section provides an overview of the department's planned spending and human resources for the next three consecutive fiscal years and compares planned spending for the upcoming year with the current and previous years' actual spending.

Planned spending

Departmental spending 2018–19 to 2023–24

This spending trend graph demonstrates total spending, voted spending, and statutory spending from 2018-19 to 2023-24:

• In 2018-19, total spending was $45,823,015 of which $44,582,877 was voted and $1,240,138 was statutory.
• In 2019-20, total spending was $67,162,468 of which $65,575,001 was voted and $1,587,467 was statutory.
• In 2020-21, total funding available is $110,263,555 of which $103,190,239 is voted and $7,073,316 is statutory.
• In 2021-22, total funding available is $79,550,701 of which $77,588,382 is voted and $1,962,319 is statutory.
• In 2022-23, total funding available is $73,196,260 of which $71,172,819 is voted and $2,023,441 is statutory.
• In 2023-24, total funding available is $70,152,139 of which $68,128,698 is voted and $2,023,441 is statutory.

Various funding initiatives announced in Budget 2019 ($14.7 million in 2019–20 to $24.7 million by 2022–23, and $22.7 million in 2023–24) account for the significant increase in actual, forecasted, and planned spending that began in 2019–20. Specifically, the three funding Measures Announced in Budget 2019 include (i) A Food Policy for Canada – $15 million over five years; (ii) Launching a Federal Strategy on Jobs and Tourism – $5 million over two years; and (iii) Strong Arctic and Northern Communities – $75 million over five years.

To address the economic impact of COVID-19, funding of $37.3 million ($32.3 million voted and $5.0 million statutory) accounts for the additional increase in forecast spending in 2020–21.

The sunsetting of NABEP ($4.9 million), partially offset by a portion of the funding measures announced in the Fall Economic Statement released November 2020 ($1.9 million), accounts for the majority of the net decrease in planned spending beginning in 2022–23.

The following table shows actual, forecast and planned spending for CanNor's core responsibility and to Internal Services for the years relevant to the current planning year.

Budgetary planning summary for core responsibilities and Internal Services (dollars)

Core responsibilities and Internal Services	2018–19 expenditures	2019–20 expenditures	2020–21 forecast spending	2021–22 budgetary spending (as indicated in Main Estimates)	2021–22 planned spending	2022–23 planned spending	2023–24 planned spending
Economic Development in the Territories	39,227,565	59,410,413	103,771,239	73,066,784	73,066,784	66,477,948	63,433,827
Subtotal	39,227,565	59,410,413	103,771,239	73,066,784	73,066,784	66,477,948	63,433,827
Internal Services	6,595,450	7,752,055	6,492,316	6,483,917	6,483,917	6,718,312	6,718,312
Total	45,823,015	67,162,468	110,263,555	79,550,701	79,550,701	73,196,260	70,152,139

Economic Development in the Territories and Internal Services experience the greatest variability in actual, forecast and planned spending relevant to the current planning year, largely as a result of the additional funding measures announced in Budget 2019 of up to $24.7 million through 2022–23, and $22.7 million in 2023–24.

Economic Development in the Territories reflects an additional $37.3 million in forecast spending in 2020–21 to address the economic impact of the COVID-19 global pandemic, as well as a portion of the funding measures announced in the Fall Economic Statement released November 2020 ($1.9 million) to come into effect in 2022-23. This increase is offset slightly by the sunsetting of NABEP ($4.9 million).

Corporate information

Reporting framework

The Canadian Northern Economic Development Agency's approved departmental results framework and program inventory for 2021–22 are as follows.

Text alternative for the CanNor's Departmental Results Framework and Program Inventory of record table

This Reporting Framework Table demonstrates CanNor's Departmental Results Framework and Program Inventory of record for 2021-22:

• Departmental Results Framework
  • Core Responsibility: Economic Development in the Territories
    • Departmental Result: People and communities participate in the economy in the Territories
      • Indicator: Labour participation rate for women and Indigenous peoples in the Territories
      • Indicator: Amount leveraged per dollar invested in community projects in the Territories
    • Departmental Result: Business are developing in the Territories
      • Indicator: Number of businesses by business locations in the Territories
      • Indicator: Number of investments in clean tech projects supported by CanNor in the Territories
    • Departmental Result: Efficient and Predictable Environmental Review process in the Territories
      • Indicator: Number of companies provided advisory services (Pathfinder) including issues management and support in the environmental assessment and governance processes in the Territories
      • Indicator: Percentage of environmental assessments in the Territories that are completed within the scheduled time frame
• Program Inventory
  • Program: Community Development
  • Program: Business Development
  • Program: Policy and Advocacy
  • Program: Northern Projects Management

Supporting information on the program inventory

Supporting information on planned expenditures, human resources, and results related to Canadian Northern Economic Development Agency' program inventory is available in the GC InfoBase.

Supplementary information tables

The following supplementary information tables are available on the Canadian Northern Economic Development Agency's website:

• Departmental Sustainable Development Strategy
• Details on transfer payment programs
• Gender-based analysis plus
• Up‑front multi‑year funding

Federal tax expenditures

The Canadian Northern Economic Development Agency's Departmental Plan does not include information on tax expenditures that relate to its planned results for 2021–22.

Tax expenditures are the responsibility of the Minister of Finance, and the Department of Finance Canada publishes cost estimates and projections for government‑wide tax expenditures each year in the Report on Federal Tax Expenditures. This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis. The tax measures presented in this report are solely the responsibility of the Minister of Finance.

Organizational contact information

Mailing address
Allavvik Building
1106 Inuksugait Plaza
Iqaluit, Nunavut
X0A 0H0
Canada

Telephone: 1-855-897-2667

Email: CanNor.InfoNorth.InfoNord.CanNor@canada.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)
A report on the plans and expected performance of a department over a 3 year period. Departmental Plans are tabled in Parliament each spring.

departmental priority (priorité ministérielle)
A plan or project that a department has chosen to focus and report on during the planning period. Departmental priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result (résultat ministériel)
A consequence or outcome that a department seeks to achieve. 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)
A framework that consists of the department's core responsibilities, departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)
A report on a department's actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

Experimentation (expérimentation)
The conducting of activities that seek to first explore, then test and compare, the effects and impacts of policies and interventions in order to inform evidence-based decision-making, and improve outcomes for Canadians, by learning what works and what doesn't. Experimentation is related to, but distinct form innovation (the trying of new things), because it involves a rigorous comparison of results. For example, using a new website to communicate with Canadians can be an innovation; systematically testing the new website against existing outreach tools or an old website to see which one leads to more engagement, is experimentation.

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.

Gender-based analysis plus (GBA+) (analyse comparative entre les sexes plus [ACS+])
An analytical process used to assess how diverse groups of women, men and gender-diverse people experience policies, programs and services based on multiple factors including race, ethnicity, religion, age, and mental or physical disability.

Government-wide priorities (priorités pangouvernementales)
For the purpose of the 2021–22 Departmental Plan, government-wide priorities refers to those high-level themes outlining the government's agenda in the 2020 Speech from the Throne, namely: Protecting Canadians from COVID-19; Helping Canadians through the pandemic; Building back better – a resiliency agenda for the middle class; The Canada we're fighting for.

Horizontal initiative (initiative horizontale)
An initiative in which two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

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.

Plan (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.

Planned spending (dépenses prévues)
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts 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.

Program (programme)
Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

Program inventory (répertoire des programmes)
Identifies all of the department's programs and describes how resources are organized to contribute to the department's core responsibilities and results.

Result (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.

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.