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Annex 3

Overview

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

To achieve these objectives, the Government introduced a new approach to managing spending, a central element of which is the ongoing review of existing spending. These reviews assess whether programs are achieving their intended results, are effectively managed, and are appropriately aligned with the priorities of Canadians and with federal responsibilities. This exercise is about good management and responsible spending.

Strategic Reviews

In 2008, 21 departments and agencies undertook strategic reviews of their programs and spending. In total, ministers examined departmental spending amounting to $25 billion, or about 27 per cent of total direct program spending.

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. Consistent with the estimated savings included in the Economic and Fiscal Statement, the reviews have identified ongoing savings totalling $586 million per year that stem from 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 resulting savings are being redirected to fund new initiatives as part of the Economic Action Plan, both within review departments and to broader spending areas in Budget 2009.

Table A3.1
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Savings Identified	349.1	448.9	586.1
Reinvestments
Strategic review reinvestments	34.3	50.8	81.6
Budget 2009 reinvestments in review departments	2,141.5	2,040.6	400.0
Other investments in Budget 2009 priorities			104.5
Total	2,175.8	2,091.4	586.1
Note: Totals may not add due to rounding.

Health

Health Canada and the Public Health Agency of Canada have undertaken full reviews to better align programs, science and research activities to support Canadians’ health priorities and a strengthened Canadian health care system. As a result of these reviews, the Government is refocusing its programs to better deliver on its core federal role in health, is realigning existing resources and programs to improve management of risks to human health, and is pursuing innovative domestic and international partnerships.

The savings realized will be used to help strengthen First Nations and Inuit health care and make strategic investments in health care infrastructure through Canada Health Infoway, a not-for-profit corporation that is working to accelerate the use of electronic health records in Canada.

Table A3.2
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Realigning programs and internal resources   to gain efficiencies and improve results	17.0	25.0	32.0
Realigning resources where objectives   have been achieved	8.5	7.5	9.4
Leveraging internal and broader federal   capacity for improved service delivery	1.1	1.1	1.1
Focusing on Core Role
Aligning program activities to core mandate	13.3	14.5	14.8
Meeting the Priorities of Canadians
Realigning partnerships to achieve the   priorities of Canadians	2.3	2.3	11.5
Refocusing research to take advantage   of advancements in science	0.5	2.4	3.4
	42.7	52.9	72.2
Reinvestments in Budget 2009
First Nations and Inuit health	202.3	237.5
Canada Health Infoway1	200.0	200.0	100.0
Note: Totals may not add due to rounding. 1 Notional cash allocation.

Granting Councils

The Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council of Canada and the Social Sciences and Humanities Research Council of Canada are streamlining operations and aligning programs with the objectives of the Government’s Science and Technology Strategy and national research priorities. Through closer coordination, these agencies are improving the effectiveness of existing programs, aligning their programs with their core roles and fostering the development of innovative new programs.

These savings will be used in this budget to support repairs at post-secondary institutions, to upgrade key Arctic research facilities, to expand the Canada Graduate Scholarships program and graduate internships, and to support new world-class research facilities. This budget also sets aside $750 million to support the current and future activities of the Canada Foundation for Innovation.

Table A3.3
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Streamlining research support activities to   reduce overlap in granting programs	1.9	8.8	36.3
Aligning funding with actual needs and making   better use of other programs with similar objectives	10.2	22.5	34.2
Focusing on Core Role
Reducing programs that overlap with the mandate   of other federal organizations to focus on priorities	5.6	11.6	16.8
	17.7	43.0	87.2
Reinvestments in Budget 2009
Improving infrastructure at universities and colleges	1,000.0	1,000.0
Canada Foundation for Innovation		50.0	75.0
Canada Graduate Scholarships	35.0	35.0	17.5
Industrial R&D Internships	2.5	1.0
Arctic research infrastructure	35.8	51.2
Institute for Quantum Computing	50.0
Note: Totals may not add due to rounding.

National Research Council Canada

As a result of its review, the National Research Council Canada has more closely aligned its programs with the objectives of the Government’s Science and Technology Strategy and national research priorities as well as considered alternative service delivery models for certain activities that are not aligned with its core role. National Research Council Canada is now better positioned to play its role in supporting innovation in Canada and to adapt to the rapidly evolving science and technology information environment.

The savings realized will be used in this budget to increase support for small and medium-sized businesses to innovate.

Table A3.4
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Achieving efficiencies at National Research Council Canada	5.8	5.8	5.8
Focusing on Core Role
Exploring alternative service delivery models for services   that are not aligned with National Research Council   Canada’s core mandate			10.3
	5.8	5.8	16.1
Reinvestments in Budget 2009
Industrial Research Assistance Program	100.0	100.0
Note: Totals may not add due to rounding.

Canadian Space Agency

Through its review, the Canadian Space Agency assessed its programs to ensure they continue to meet government priorities, align with the Government’s Science and Technology Strategy and deliver economic benefits to Canada. The Agency will focus on the development of programs and technologies required for future space missions by strengthening its relationships with the space industry and universities to build specialized expertise and leading-edge technology.

The savings generated by the Canadian Space Agency will be directed toward the development of terrestrial prototypes for space robotic vehicles, such as the Mars Lander and Lunar Rover, and for the further development of other technologies and space robotics.

Table A3.5
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Moving to a more collaborative approach with industry   and academia to build capacity for space technology	1.4	2.5	6.0
	1.4	2.5	6.0
Reinvestment in Budget 2009
Space robotics research and development	20.0	60.0	30.0
Note: Totals may not add due to rounding.

Public Safety

Through the strategic review process, the Correctional Service of Canada, the National Parole Board and the Royal Canadian Mounted Police assessed their programs and services to identify better ways of delivering them while ensuring public safety and maintaining Canadians’ confidence in our justice system. As a result of the review, the Government is realizing efficiencies by streamlining programs and centralizing internal services within these organizations, and ensuring that programs and funding are focused in the areas where they are most needed.

The savings realized will be reinvested in this budget to enhance capacity and improve results in the areas of community supervision, correctional interventions and custody.

Table A3.63
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Streamlining programs and centralizing internal   services to achieve efficiencies and economies of scale	9.5	24.0	60.5
Realigning of capital expenditures and support	38.5	38.7	18.3
Meeting the Priorities of Canadians
Refocusing programs to support reintegration   of inmates into communities	0.5	1.6	9.3
	48.5	64.3	88.0
Reinvestments in Budget 2009
Strengthening public safety	16.4	28.7	48.8
Note: Totals may not add due to rounding.

Public Sector Management

Six central human resources organizations conducted a horizontal review of the central human resources management and policy functions they deliver with a view to ensuring the efficiency and effectiveness of these functions. The six organizations are: the Canada Public Service Agency, the Canada School of Public Service, the Public Service Commission, the Public Service Labour Relations Board, the Public Service Staffing Tribunal and the Treasury Board of Canada Secretariat. In addition, the Treasury Board Secretariat reviewed its approach to managing employee and pensioner benefits with a view to increasing cost-effectiveness and enhancing accountability.

As a result of the review, roles and responsibilities across the central human resources management organizations have been aligned to reduce duplication and overlap. Changes have also been made to reduce the costs of managing and administering benefit programs, and to better align benefit programs to employee and pensioner needs.

The Government will direct the savings realized toward creating and maintaining a modern public service that has a knowledge-based workforce and a forward-looking, productive work environment to better deliver on the priorities of Canadians.

Table A3.7
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Realigning programs to gain efficiencies   and improve results	63.4	65.6	77.8
Making better use of internal resources   and administrative efficiencies	7.9	10.2	11.0
Focusing on Core Role
Aligning programs with core mandate	18.9	31.6	24.4
	90.3	107.4	113.2
Reinvestments in Budget 2009
New human resources governance strategy	17.8	22.1	32.8
Note: Totals may not add due to rounding.

 

Agriculture and Agri-Food Canada

Through its strategic review, Agriculture and Agri-Food Canada is replacing or reducing programs that no longer meet the needs of clients and further aligning its programs with its mandate and the new Growing Forward policy framework. Through these changes, Agriculture and Agri-Food Canada is better positioned to help build a more profitable and globally competitive agriculture and agri-food sector that can manage risks better.

The Government will redirect the savings realized to the new suite of non-business risk management programs under Growing Forward as well as the new AgriFlexibility program, intended to improve competitiveness in the agricultural sector. Savings will also be used to strengthen slaughterhouse capacity across the country to support the beef and dairy industries and other livestock producers.

Table A3.8
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Sunsetting or reducing programs that have achieved   their objectives or can be delivered with fewer resources	3.0	15.6	15.3
Meeting the Priorities of Canadians
Replacing programs with new programs that   better meet the needs of clients	127.3	127.5	128.3
	130.2	143.2	143.6
Reinvestments in Budget 2009
Growing Forward programming	70.0	70.0	70.0
AgriFlexibility program	65.0	125.0
Slaughterhouse capacity	20.0	15.0	15.0
Note: Totals may not add due to rounding.

Justice Canada

Through its strategic review, Justice Canada assessed all areas of its operations to find ways to improve service delivery and streamline processes in developing policies, laws and programs, to maintain Canadians’ confidence in our justice system. Justice Canada is changing the way legal services are delivered across government by implementing a more risk-based approach in using legal resources.

The savings generated by Justice Canada will be used to strengthen and improve access to the family justice system by assisting families seeking information on their legal rights and obligations.

Table A3.9
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Making sure the right skills are used at the right place   to deliver quality legal services within government	2.0	5.0	12.5
	2.0	5.0	12.5
Reinvestments
Family Law (as announced Sept. 6, 2008)	24.4	24.4	24.4
Note: Totals may not add due to rounding.

Transport Canada

Transport Canada is shifting to a more effective regulatory approach to safety and security, strengthening its leadership to meet global challenges in support of trade and security priorities, and refocusing its operations on national and essential services. As a result, Transport Canada is strengthening its capacity to advance transportation safety in Canada and to promote a more efficient, effective and environmentally clean transportation system.

The savings realized by Transport Canada will be used in this budget to support capital projects on federal bridges, to support rail capital projects, to improve rail safety across the country, and to support significant enhancements to the security of aviation in Canada.

Table A3.10
Strategic Review Savings

	2009–10	2010–11	2011–12
	(millions of dollars)
Increasing Efficiency and Effectiveness
Restructuring internally to better manage safety   and security systems	1.6	2.6	7.3
Adopting new approaches to lease management   and capital investment to achieve greater   efficiencies and effectiveness	0.3	0.9	1.8
Focusing on Core Role
Phasing out certain subsidies to   major Canadian airports	4.6	14.3	14.3
	6.5	17.7	23.3
Budget 2009 Reinvestments
Rail safety	9.7	13.4	16.1
Rail capital projects	14.5	19.3	15.0
Bridge infrastructure	11.8	23.0	21.2
Aviation security	280.5	15.8	15.8
Note: Totals may not add due to rounding.

Veterans Affairs Canada

Veterans Affairs Canada examined its programs to identify improvements and efficiencies while maintaining the level of services and benefits to Canada’s veterans and their families. These increased efficiencies will help the Government to continue to provide care, treatment and support for veterans and to commemorate their achievements and sacrifices. Veterans Affairs Canada’s activities represent an annual expenditure of nearly $3.4 billion.

In Budget 2008, the Government invested $302 million over five years in Veterans Affairs Canada to extend support to survivors of war veterans, building on the $30 million per year provided in Budget 2007 for Operational Stress Injury Clinics, the new Veterans’ Ombudsman and enhanced services for veterans.

Table A3.11
Strategic Review Savings

			2009–10	2010–11	2011–12
			(millions of dollars)
Increasing Efficiency and Effectiveness
Making better use of internal resources   and administrative efficiencies			3.9	4.5	6.5
Improving alignment of programs   and services with actual needs				2.8	17.5
			3.9	7.3	24.0
	2007–08	2008–09	2009–10	2010–11	2011–12
	(millions of dollars)
Recent Investments
Budget 2008	259.0	12.0	11.2	10.4	9.5
Budget 2007	29.0	30.0	30.0	30.0	30.0
Note: Totals may not add due to rounding.

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