Archived - Budget 2011

Annex 1: responsible spending (June 6, 2011)

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The Government is committed to delivering programs and services that are efficient and effective, aligned with the priorities of Canadians and financially sustainable over the long term.

To achieve these objectives, in 2007, the Government introduced the ongoing strategic review of existing spending. These reviews assess programs and initiate changes to ensure that programs are achieving their intended results, are effectively managed, and are appropriately aligned with the priorities of Canadians and with federal responsibilities.

2010 Strategic Reviews

In 2010, the last year of the first four-year cycle of strategic reviews, 12 organizations undertook strategic reviews of their programs and spending. In addition, the Department of National Defence used the strategic review process to identify the savings required to restrain the growth in its spending as mandated in Budget 2010. This round of strategic reviews, combined with targeted restraint in the growth of National Defence spending, has yielded savings of close to $1.6 billion in 2013–14, amounting to 4.9 per cent of the review base on an ongoing basis. As a result of these reviews, departments are streamlining operations, realigning their activities and transforming their organizations to deliver better programs and better results to Canadians. These reviews have presented opportunities to:

• Increase efficiency and effectiveness. Change the way the Government delivers programs and services to be more effective and efficient.
• Focus on core roles. Focus on providing programs that are consistent with federal roles and responsibilities, and ensure services are delivered by those best positioned to do so.
• Meet the priorities of Canadians. Align federal activities with the needs and priorities of Canadians and eliminate programs that are no longer necessary.

The savings resulting from the 2010 round of strategic reviews are being used to help return to balanced budgets.

Table A1.1
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Savings Identified
Atlantic Canada Opportunities Agency	5.9	10.8	15.2
Canada Economic Development for Quebec Regions	6.8	10.0	13.4
Fisheries and Oceans Canada	9.1	18.9	56.8
Human Resources and Skills Development Canada	80.5	140.7	273.9
Industry Canada	6.1	8.2	15.8
Infrastructure Canada	51.8	13.1	59.5
Marine Atlantic Inc.		1.2	5.4
Privy Council Office	2.0	3.1	6.6
Public Prosecution Service of Canada		0.5	3.6
Public Works and Government Services Canada	24.1	49.5	98.6
Treasury Board of Canada Secretariat	4.9	9.7	11.5
Western Economic Diversification Canada	3.2	5.7	8.9
Total of savings identified	194.5	271.4	569.2
Savings Mandated in Budget 2010
National Defence		525.0	1,000.0
Total Savings	194.5	796.4	1,569.2
Note: Totals may not add due to rounding.

Overall Savings

The Government has now completed the first four-year cycle of the strategic review exercise. Together with measures to restrain the growth in National Defence spending, the first cycle of strategic reviews has resulted in $11 billion of savings over seven years and more than $2.8 billion in ongoing savings. As part of the Government’s plan to return to balanced budgets over the medium term and in order to restrain the growth in spending, the Government will undertake a one-time Strategic and Operating Review to be conducted across all of government in 2011–12. The Government’s careful approach to spending will remain a key feature of its fiscal management strategy.

Table A1.2
Strategic Reviews—First Four-Year Cycle

	2008– 2009	2009– 2010	2010– 2011	2011– 2012	2012– 2013	2013– 2014	2014– 2015	Total
	(millions of dollars)
2007 strategic reviews	199	311	386	395	403	403	403	2,500
2008 strategic reviews		349	449	586	598	604	604	3,190
2009 strategic reviews			152	248	287	288	288	1,262
2010 strategic reviews				194	271	569	525	1,560
Subtotal	199	660	987	1,423	1,559	1,864	1,820	8,511
Department of  National Defence					525	1,000	1,000	2,526
Total Savings	199	660	987	1,423	2,084	2,864	2,820	11,037

Atlantic Canada Opportunities Agency

The Atlantic Canada Opportunities Agency (ACOA) works to create opportunities for economic growth in Atlantic Canada. It plays an important role in developing and supporting policies and programs that strengthen the region’s economy.

As a result of its strategic review, ACOA has identified opportunities to deliver its programs and services more efficiently, while ensuring that programs and funding are focused in the areas where they are most needed.

Table A1.3
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Find efficiencies in the delivery of programs  and streamline service delivery	2.3	3.1	3.9
Improve alignment of program funding with actual needs	1.2	3.0	4.2
Improve use of internal resources and administrative efficiency	2.4	4.7	7.1
Total Savings	5.9	10.8	15.2
Note: Totals may not add due to rounding.

Canada Economic Development for Quebec Regions

Canada Economic Development for Quebec Regions (CEDQ) promotes the long-term economic development of the regions of Quebec by providing assistance to enterprises, communities and organizations.

Through its strategic review, CEDQ has realized savings from improving the efficiency of its operations and refocusing activities on core responsibilities and emerging priorities.

As a result, CEDQ is reducing the administrative burden on its clients and will continue to support the regions and small and medium-sized enterprises to help them participate in and take advantage of emerging opportunities.

Table A1.4
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Align funding with program demand and eliminate duplication	6.5	4.5	4.5
Improve use of internal resources and administrative efficiency		0.4	1.0
Focusing on Core Role
Align program activities with core mandate	0.3	5.1	7.9
Total Savings	6.8	10.0	13.4
Note: Totals may not add due to rounding.

Fisheries and Oceans Canada

Fisheries and Oceans Canada is responsible for developing and implementing policies and programs in support of Canada’s scientific, ecological, social and economic interests in oceans and fresh waters. Fisheries and Oceans Canada also includes the Canadian Coast Guard, a special operating agency.

By modernizing its fisheries management and marine infrastructure, aligning programs with the department’s core mandate, and improving program delivery, the department is increasing its capacity to achieve better results for Canadians.

These changes will ensure that Fisheries and Oceans Canada is better equipped to deliver services effectively and efficiently and is able to focus on emerging government priorities.

Table A1.5
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve efficiency and the delivery of programs and services	0.2	0.6	3.8
Consolidate activities and eliminate duplication	5.5	6.1	7.1
Find efficiencies through improved procurement processes  and use of technology	1.4	2.1	7.6
Focusing on Core Role
Eliminate outdated technologies and consolidate operations		0.1	3.2
Align program activities with core mandate	1.1	5.3	14.7
Reduce or eliminate activities that duplicate or overlap with  the mandate of other organizations	1.0	1.8	3.4
Meeting the Priorities of Canadians
Modernize the management of fisheries to reflect current priorities		2.8	17.0
Total Savings	9.1	18.9	56.8
Note: Totals may not add due to rounding.

Human Resources and Skills Development Canada

Human Resources and Skills Development Canada (HRSDC) is responsible for facilitating labour market participation, income security and social development. As part of Canada’s Economic Action Plan, HRSDC is delivering quality services in a timely manner and supporting Canadians when most needed.

The Labour Program, for which the department is also responsible, underwent its strategic review in 2009 and results were included in Budget 2010.

Through its strategic review, HRSDC has identified ways to better align services and resources with most important needs and priorities. These changes will improve HRSDC’s capacity to support Canada’s competitiveness and deliver efficient services that meet the needs of Canadians.

Table A1.6
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve alignment of program funding with actual needs	49.0	69.0	69.0
Find efficiencies through improved program management and  use of technology	1.8	10.7	50.2
Improve use of internal resources  and administrative efficiency	18.1	30.1	47.7
Focusing on Core Role
Align program activities with core mandate	3.6	20.7	39.1
Meeting the Priorities of Canadians
Refocus programming to benefit all Canadians	8.0	10.2	67.9
Total Savings	80.5	140.7	273.9
Note: Totals may not add due to rounding.

Industry Canada

Industry Canada helps Canadian industry become more productive and competitive in the global economy through a number of activities including developing industry and technology capability, promoting investment and trade, fostering scientific research, and setting rules that support the effective operation of the marketplace. Industry Canada is also responsible for implementing several initiatives announced as part of Canada’s Economic Action Plan.

Through its strategic review, Industry Canada has identified opportunities to improve the effectiveness and efficiency of its activities while continuing to respond to the changing nature of the Canadian economic landscape.

As a result, Industry Canada is better positioned to promote innovation, help Canadians acquire the skills needed to compete in a knowledge-based economy and enhance business and communities’ competitiveness.

Table A1.7
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Realign resources to eliminate duplication	0.7	2.3	5.5
Focusing on Core Role
Align program activities with core mandate			7.0
Meeting the Priorities of Canadians
Ensure efficient programming focused  on current priorities	5.4	5.9	3.3
Total Savings	6.1	8.2	15.8
Note: Totals may not add due to rounding.

Infrastructure Canada

Infrastructure Canada leads federal efforts to enhance public infrastructure through partnerships with provincial, territorial and municipal governments, First Nations, and other partners. Through Canada’s Economic Action Plan, Infrastructure Canada is accelerating the delivery of federal infrastructure funding and supporting public infrastructure projects across Canada.

As a result of its review, Infrastructure Canada has identified opportunities to focus on core priorities and deliver its programs and services more efficiently, while continuing to deliver government investments in Canada’s public infrastructure.

Table A1.8
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Consolidate activities	0.7	0.7	0.7
Improve efficiency and the delivery of programs and services	39.0	5.2	45.0
Focusing on Core Role
Reduce or eliminate activities that duplicate or overlap with the  mandate of other organizations	2.7	2.7	2.7
Meeting the Priorities of Canadians
Ensure efficient programming focused on current priorities	9.5	4.5	11.1
Total Savings	51.8	13.1	59.5
Note: Totals may not add due to rounding.

Marine Atlantic Inc.

Marine Atlantic provides a safe, environmentally responsible and reliable ferry service between the Island of Newfoundland and the Province of Nova Scotia.

As part of its strategic review, Marine Atlantic assessed its programs and services to identify more efficient ways of delivering services to Canadians while ensuring public safety and appropriate utilization of resources. As a result, the corporation is making changes to optimize its fleet efficiency and streamline its procurement practices.

Table A1.9
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve efficiency and the delivery of programs and services			3.1
Find efficiencies through improved procurement process		1.2	2.3
Total Savings		1.2	5.4
Note: Totals may not add due to rounding.

Privy Council Office

The Privy Council Office (PCO) provides professional, non-partisan advice and support to the Prime Minister and the Cabinet. PCO also supports the Clerk of the Privy Council who, in his role as Clerk, Head of the Public Service and Secretary to the Cabinet, serves as the principal link between the Prime Minister and the public service.

As a result of its strategic review, PCO is making better use of technology and internal resources to enhance its support to government decision making and further align its activities with its core responsibilities.

Table A1.10
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Find efficiencies through improved program management  and use of technology	1.8	2.6	3.5
Improve use of internal resources and administrative efficiency			0.8
Focusing on Core Role
Reduce or eliminate activities that are not part  of the department’s core role	0.2	0.5	2.3
Total Savings	2.0	3.1	6.6
Note: Totals may not add due to rounding.

Public Prosecution Service of Canada

The Public Prosecution Service of Canada (PPSC) fulfills the responsibilities of the Attorney General of Canada by prosecuting criminal offences under federal jurisdiction and by contributing to strengthening the criminal justice system.

Through its strategic review, the PPSC examined its programs and operations, and has identified efficiencies and improvements in its operations.

Table A1.11
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Consolidate regional presence		0.5	0.5
Improve efficiency and the delivery  of programs and services			3.1
Total Savings		0.5	3.6
Note: Totals may not add due to rounding.

Public Works and Government Services Canada

Public Works and Government Services Canada (PWGSC) supports the delivery of Government of Canada programs by providing vital services to federal departments, agencies and institutions.

Through its strategic review, PWGSC has identified opportunities to improve the effectiveness and efficiency of its activities by making better use of technology and internal resources.

PWGSC is also aligning its services with its core mandate and eliminating duplication and overlap across a range of its programs and services.

Table A1.12
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Realign programs to gain efficiencies  and improve results	3.2	3.8	4.5
Improve efficiency and the delivery of programs  and services	10.9	13.1	44.6
Improve use of internal resources  and administrative efficiency	18.1	28.7	43.1
Focusing on Core Role
Reduce programs that overlap with the mandate  of other federal organizations		0.6	1.3
Align program activities with core mandate	-10.0		0.5
Meeting the Priorities of Canadians
Refocus the activities of the Government  Exhibitions Program to achieve priorities of Canadians	1.9	3.3	4.7
Total Savings	24.1	49.5	98.6
Note: Totals may not add due to rounding.

Treasury Board of Canada Secretariat

The Treasury Board of Canada Secretariat supports the Treasury Board and acts as management board, budget office and employer of the Government of Canada. The Secretariat is responsible for setting management expectations, monitoring performance, providing oversight of expenditures, and fostering a strong and dynamic public service.

As a result of its strategic review, the Secretariat is realizing efficiencies by consolidating its policy capacity, scaling back in mature areas and aligning its activities to better meet its core role. Changes have also been made to reduce duplication and focus internal processes to support the organization in meeting its responsibilities.

The Secretariat is well positioned to continue to provide oversight and monitoring in a more efficient and effective way.

Table A1.13
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve use of internal resources and administrative efficiency	0.6	1.3	2.8
Focusing on Core Role
Reduce or eliminate activities that are not part  of the department’s core role	4.2	8.3	8.6
Total Savings	4.9	9.7	11.5
Note: Totals may not add due to rounding.

Western Economic Diversification Canada

Western Economic Diversification Canada (WED) is responsible for policies and programs that promote the development and diversification of the Western Canadian economy.

As a result of its strategic review, WED is realizing efficiencies by streamlining programs and ensuring that programs and funding are focused in the areas where they are most needed.

These changes will ensure a greater focus on innovation, technology commercialization and the needs of Western Canada’s small and medium-sized enterprises.

Table A1.14
Strategic Review Savings

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve alignment of program funding with actual needs	2.1	3.9	4.6
Improve use of internal resources and administrative efficiency	0.1	0.3	0.7
Focusing on Core Role
Improve loan activity	1.1	1.6	3.7
Total Savings	3.2	5.7	8.9
Note: Totals may not add due to rounding.

National Defence

The primary responsibility of the Department of National Defence and the Canadian Forces is to protect Canada and Canadian interests and values while contributing to international peace and security. This is achieved through the Government’s defined roles for the Canadian Forces outlined in the Canada First Defence Strategy: defending Canada by delivering excellence at home; jointly defending North America in partnership with the United States; and contributing to international peace and security by projecting leadership abroad.

As a key element of the Government’s plan to restrain the growth in overall spending and return to budgetary balance over the medium term, Budget 2010 reduced the growth in National Defence’s budget by $525 million in 2012–13 and $1 billion annually beginning in 2013–14. The Department of National Defence used the 2010 strategic review process to examine its spending in order to realize these savings.

The Department of National Defence is making changes to streamline departmental operations, optimize efficiencies, and align programs with core missions and government priorities. As a result of these changes, the Department is better able to focus resources to achieve long-term sustainability in order to fulfill commitments made in the Canada First Defence Strategy and to deliver as capable, agile and sustainable a defence organization as possible.

The Department has identified savings proposals and is on track to achieve its targeted savings.

Table A1.15
Budget 2010 Savings Identified Through the Strategic Review Process

	2011–12	2012–13	2013–14
	(millions of dollars)
Increasing Efficiency and Effectiveness
Improve efficiency and the delivery of programs  and services		86.3	220.3
Increase efficiency through modernization  of education and training programs		4.4	37.8
Find efficiencies through use of technology		36.0	63.3
Focusing on Core Role
Eliminate redundant and outdated equipment			58.0
Rationalize the procurement process			10.2
Optimize infrastructure		1.8	43.2
Align program activities with core mandate		225.8	307.3
Increase efficiency through consolidation of activities		1.8	5.3
Meeting the Priorities of Canadians
Modernize and refocus policies to reflect current priorities		78.0	164.1
Savings to be Identified		90.8	90.5
Total Savings		525.0	1,000.0
Note: Totals may not add due to rounding.

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