2023 Minister’s Transition Book 2: Portfolio overview
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Canada Post Corporation
In this section
Mandate
The Canada Post Corporation became a Crown corporation in 1981 and has 3 subsidiaries:
- Purolator
- SCI Group
- Innovapost
The Canada Post Group of Companies, consisting of Canada Post and its 3 subsidiaries, has annual revenues exceeding $10.1 billion and employs over 83,600 people (full-time and part-time employees, including temporary, casual, and term employees) across the country.
The Canada Post Corporation Act mandates the establishment and operation of a financially self-sustaining postal service for all Canadians with the exclusive privilege to collect, transmit and deliver letters up to 500 grams (gm) within Canada.
The Canada Post Corporation reports to Parliament through the minister of Public Services and Procurement. It is arm’s length with respect to operations, but it takes policy direction from the minister in terms of its priorities. The minister is accountable for providing guidance and oversight to ensure that the overall direction and performance of the corporation aligns with the government’s policies and objectives. This is normally communicated via an annual letter of expectation.
Key activities
In 2022, the Canada Post group of companies delivered 6.7 billion pieces of mail, parcels, and messages to over 17 million address in urban, rural, and remote locations across Canada.
Canada Post is the largest segment of the group of companies with revenue of $7.2 billion in 2022. Canada Post is the country’s postal administration, serving every address in Canada. Its core services include delivery of letters, bills, statements, invoices, parcels, direct marketing products and periodicals.
Purolator Holdings Ltd., 91% owned by Canada Post, is Canada’s leading integrated freight and parcels solutions provider with revenue of $2.8 billion in 2022.
SCI Group Inc., 99% owned by the group of companies, is one of Canada’s largest providers of supply chain solutions with revenue of $327 million in 2022.
Innovapost Inc., 98% owned by the group of companies, is a shared services organization, providing company specific information systems and information technology services exclusively to the Canada Post group of companies.
Partners and stakeholders
Canada Post works closely with its sole shareholder, the Government of Canada. It receives $22.2 million in annual appropriations for 2 programs on behalf of the Government of Canada:
- Government mail free of postage (parliamentary mail)
- Materials for the use of the visually impaired
Canada Post’s unions are key stakeholders; they are a voice for employees and act as bargaining representatives during negotiations. They include:
- Association of Postal Officials of Canada (APOC)
- Canadian Union of Public Postal Workers (CUPW)
- Public Service Alliance of Canada (PSAC) / Union of Postal Communications Employees (UPCE)
- Canadian Postmaster and Assistants Association (CPAA)
Key considerations
The Canada Post Corporation Act requires the Canada Post Corporation to operate on a self-sustaining financial basis, but the Corporation has been experiencing financial challenges as a result of declining mail volumes which have resulted in a reduction of 64% in the annual number of pieces delivered per address since 2006. Canada Post’s financial challenges were further exacerbated by the negative impacts of the COVID-19 pandemic which increased costs to protect employee health and safety and negatively impacted Canada Post’s Lettermail and direct marketing business lines. In 2022, the Canada Post Group of Companies reported a before tax loss of $292 million; while the Canada Post segment reported a before tax loss of $548 million.
Canada Lands Company Limited
In this section
Mandate
The mandate of Canada Lands Company Limited, an agent federal Crown corporation, is to ensure the commercially oriented, orderly disposition of surplus strategic real properties, optimizing financial and community value, and the holding of certain properties. It accomplishes this by purchasing strategic surplus properties from federal departments and agencies at fair market value, then improving, managing or selling them in order to produce the optimal benefit for the Company’s shareholder, the Government of Canada, and local communities. Canada Lands Company Limited defines optimal benefit to include both non-financial and financial results.
Key activities
Canada Lands Company Limited was created in 1956 to hold, develop and dispose of Government of Canada real property. It is a shell corporation that has 3 subsidiaries:
- Canada Lands Company was created in 1995 to optimize the financial and community value of strategic surplus Government of Canada properties. Canada Lands Company is considered to be the real estate arm of the company and handles almost all the real estate purchases and sales. It also operates the CN Tower in Toronto. When a surplus federal property is identified as being strategic, the land is sold to the Canada Lands Company so that it can develop it and derive further value
- Parc Downsview Park was created in 1998 to hold the former Canadian Forces Base in Toronto, with the purpose of using these lands primarily as a unique urban recreational green space. The Downsview property consists of 572 acres of land which is largely comprised of park land but also includes a number of existing and proposed neighbourhoods and facilities
- The Old Port of Montreal Corporation was created in 1981 to promote development of the Old Port of Montreal lands and to administer, manage and maintain the property as an urban recreational site. The port also manages the Montreal Science Centre
Partners and stakeholders
Canada Lands Company Limited works with local municipalities, relevant stakeholders and partners in various infrastructure projects across the county. Among other things, it facilitates the provision of affordable housing units in its projects. It is a partner in the Federal Lands Initiative, a part of the National Housing Strategy, with Public Services and Procurement Canada (PSPC) and the Canada Mortgage and Housing Corporation.
Canada Lands Company Limited strives to maintain strong partnerships with Indigenous peoples. It has entered into agreements of various forms with 6 First Nations covering projects on 5 properties in Vancouver, Winnipeg, Ottawa, and Halifax as of 2023.
Key challenges
In 2022 to 2023, Canada Lands Company Limited rebounded financially after 2 years of major disruptions caused by the COVID-19 pandemic. Their attractions at the CN Tower, Montréal Science Centre, and Downsview Park operated uninterrupted for the entire fiscal year.
Canada Lands Company Limited has a number of large development projects across Canada, including:
- a number of collaboration projects with PSPC including the Tremblay Road Campus (470 Tremblay Road), Tunney’s Pasture, and Confederation Heights to deliver federal office space in Ottawa
- a number of projects that support the Government of Canada’s housing priorities as a partner in the Canada Mortgage and Housing Corporation’s Federal Lands Initiative facilitating the creation of more than 1,900 affordable housing units across the country
- the implementation of the initial phase of the Old Port of Montréal Master Plan, which will enhance the visitor experience and improve access to the waterfront, public safety and accessibility for all
- the Wateridge Village development in Ottawa, which will create more than 300 affordable housing units in Ottawa
National Capital Commission
In this section
Mandate
The National Capital Commission is a federal Crown corporation created by Canada’s Parliament in 1959 under the National Capital Act. It is the long-term planner and principal steward of significant public places, and a partner in the development, conservation and improvement of Canada’s National Capital Region.
Key activities
The National Capital Commission is the main federal urban planner in Canada’s National Capital Region. In this role, the commission works in collaboration with stakeholders to set the long-term planning direction for federal lands, identifies and manages lands of national interest, approves design and land use changes involving federal lands in the National Capital Region, and facilitates federal involvement in transportation planning.
In its stewardship and protection role, the commission manages and develops federal lands and assets, such as the official residences, in the capital region and manages the public places that are unique to Canada’s symbolic, natural and cultural heritage. It owns and manages 11% of all land in the National Capital Region with a total replacement value of $2.2 billion, including:
- 6 official residences
- 1,000 buildings
- 145 bridges (including the Champlain Bridge and the Portage Bridge)
- 425 km of parkways and pathways
- the Gatineau Park (361 km2)
- the Greenbelt (200 km2)
- 23 urban parks
- 65 commemorations and public art displays
Partners and stakeholders
The commission works closely with a number of key partners:
- PSPC on:
- interprovincial crossings in the National Capital Region, including key files, such as the Alexandra Bridge replacement, the additional Crossing, the Long-Term Integrated Interprovincial Crossing Plan, and the proposed Société de transport de l’Outaouais interprovincial tramway loop
- the Parliamentary Precinct Rehabilitation project, notably through the commission’s mandated role to approve land use and design through the federal land, use, design, transaction and approval process
- Department of Canadian Heritage for monument planning and design
- mayors and city councils of the cities of Ottawa and Gatineau
- the mayors of Ottawa and Gatineau are ex-officio members of the National Capital Commission Board of Directors
Key considerations
The Gatineau Park Master Plan (2021) outlines conservation and planning goals for Gatineau Park. The park, Canada’s second most-visited, does not have the same legal protections as other national parks under the Parks Canada Act. The master plan calls for legislative protections for Gatineau Park that specify its protected status, an update to the technical description of the park’s boundaries, and to clarify the powers of the managers of Gatineau Park.
In January 2022, the National Capital Commission Board of Directors approved the Long-term Interprovincial Crossing Plan, which set forth the vision, policies, and infrastructure priorities for sustainable interprovincial travel in the National Capital Region for the 2050 planning horizon. The sixth interprovincial crossing refresh summary report, released in June 2020, focused on technical elements of a potential sixth interprovincial crossing but did not recommend a preferred corridor. The commission is currently working to refresh its long-term interprovincial crossing plan with updated data which is scheduled to be approved and subsequently released in 2024.
In the 2022 Fall Economic Statement, the commission received funding for Protecting Heritage Assets. The department is working with National Capital Commission to ensure this new funding will address the deferred maintenance within the official residences (see separate briefing on official residences).
Defence Construction Canada
In this section
Mandate
Defence Construction Canada is a Crown corporation that assists the Government of Canada with military procurements and delivers defence infrastructure projects. Its activities aim to meet the needs of the Department of National Defence and the Canadian Armed Forces for infrastructure, management or real property and environmental services by advising on, collaboratively planning, procuring and managing defence contracts.
Key activities
Defence Construction Canada’s work covers a broad range of activities, from project needs planning to building decommissioning. The Corporation’s service delivery resources are organized among the following 5 service lines:
- contract services
- contract management services
- environmental services
- project and program management services
- real property management services
Activities with which Defence Construction Canada is engaged include demolishing underused or obsolete buildings; renovating and improving facilities on bases and wings, such as housing for military personnel; and building new infrastructure for major Canadian Armed Forces programs. It is self-financing, operating on a fee-for-service basis. DCC delivers approximately $1.1 billion in contract payments on a yearly basis and manages a contract portfolio worth $8.4 billion.
Some of its most noteworthy projects include the following:
- a recapitalization project at the Canadian Force Base Esquimalt
- future fighter capability project in Cold Lake, Alberta and Bagotville, Quebec
- northern facilities maintenance and support services contract covering 80 buildings in Inuvik, the Northwest Territories, and Rankin Inlet, Iqaluit, Nunavut
- energy performance contracts aiming to reduce the greenhouse gas emission in Bagotville, Quebec, Petawawa and Kingston, Ontario, Greenwood, Nova Scotia, Esquimalt, British Columbia
Partners and stakeholders
According to the Defence Production Act, Defence Construction Canada is restricted to providing services to and for the minister of National Defence, the Department of National Defence and the Canadian Forces.
Key challenges
Defence Construction Canada expects to face significant generational turnover with over one-fifth of construction workers on track to retire in 10 years. In order to remain an employer of choice, address the demographic realities of the future labour market and retain top talent, Defence Construction Canada has instituted a comprehensive Human Resources Strategy.
Defence Construction Canada is taking actions to support business opportunities for Indigenous peoples and to achieve long-term, sustainable and meaningful economic benefits for Indigenous peoples. It developed a joint Indigenous Procurement Strategy to enhance the Department of National Defence’s efforts to engage Indigenous businesses and is implementing its Indigenous Relation Policy. In 2021 to 2022 it surpassed the Government of Canada’s goal to direct at least 5% of spending contracts to indigenous businesses and reached 7.3%.
Federal Public Sector Labour Relations and Employment Board
In this section
Mandate
The Federal Public Sector Labour Relations and Employment Board is an independent quasi-judicial statutory tribunal created by the Federal Public Sector Labour Relations and Employment Board Act, which came into force on November 1, 2014. It merged the former Public Service Labour Relations Board and the Public Service Staffing Tribunal.
Key activities
The board is responsible for administering the collective bargaining and grievance adjudication systems in the federal public service, the Royal Canadian Mounted Police, and employees of Parliament and the Senate. It is also responsible for the resolution of staffing complaints and layoffs in the federal public service. It offers mediation services helping parties reach collective agreements, manage their relations under collective agreements, and resolve disputes and complaints without resorting to a hearing.
In 2021 to 2022, the board closed almost 3,000 cases, held 144 grievance mediations and 121 hearings.
Partners and stakeholders
The Federal Public Sector Labour Relations and Employment Board serves approximately 305,000 federal public service employees, including Royal Canadian Mounted Police ranked members and reservists, as well as employers and bargaining agents and Parliamentary and Senate employees. It also works closely with the Canadian Human Rights Tribunal as some of the issues they are dealing with can overlap.
Key challenges
The board has been dealing with an increased workload over the past few years due to pay related grievances linked to the federal Phoenix pay system, legislative changes expanding its authority and COVID-19 operational challenges (in person versus virtual hearings).
Office of the Procurement Ombudsman
In this section
Mandate
The Office of the Procurement Ombudsman was created in 2006 as a neutral organization to promote fairness, openness, and transparency in federal procurement, and helps resolve contracting disputes between businesses and the federal government. The office operates independently from PSPC and reports directly to the minister of Public Services and Procurement. The office provides an independent avenue for stakeholders to have procurement concerns addressed, however departments are not required to participate in these services and the Procurement Ombudsman’s recommendations are non-binding.
Key activities
The office’s key responsibilities include:
- reviewing procurement practices of departments and making recommendations to improve them
- reviewing complaints respecting the award of contracts for the acquisition of goods below $30,300 and services below $121,200
- reviewing complaints respecting the administration of contracts regardless of dollar value
- ensuring that alternative dispute resolution services are available
- undertaking any other duty or function respecting the practices of departments for acquiring material and services at the request of Governor in Council or the minister
Partners and stakeholders
The Office of the Procurement Ombudsman works with independent suppliers, federal departments, and others interested in federal procurement.
While the office operates independently from PSPC, the Financial Administration Act does not provide for the Office of the Procurement Ombudsman to be a separate entity. Therefore, many of its corporate services, including the funds management function, are carried out by PSPC and governed by a Memorandum of Understanding, which is signed by the Procurement Ombudsman and the deputy minister of Public Services and Procurement Canada.
Key challenges
The Office of the Procurement Ombudsman has included in public reports, recommendations of legislative and regulatory amendments to the Public Works and Government Services Act and the Procurement Ombudsman regulations, most of which relate to the authorities of the Procurement Ombudsman. The department is engaging with the Office of the Procurement Ombudsman to work through these proposed changes.
Payments in Lieu of Taxes Dispute Advisory Panel
Mandate
The Payments in Lieu of Taxes (PILT) Dispute Advisory Panel (DAP) provides advice to the minister of Public Services and Procurement to resolve disputes about payments in lieu of taxes between the federal government and local taxing authorities.
The panel has the mandate to provide advice pertaining to the resolution of disputes about property value, property dimension or effective rate used to calculate payments in lieu of taxes, or about a claim for a late payment supplement.
The panel also provides advice to the heads of Crown corporations who exercise their own discretion concerning their respective corporation's payments in lieu of taxes.
Key challenges
Governor in council appointments
Reaching full membership on the panel has been challenging given the very specific requirements under the Payments in Lieu of Taxes Act and the compensation to members that has not been reviewed since 2004.The Department is exploring resolution of the compensation issues.
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