SECTION 1 - Canadian Coast Guard

Canadian Coast GuardSafety First, Service AlwaysBusiness Plan2007 – 2010June 1, 2007

CCG AGENCY BUSINESS PLANFor further information, please contact Canadian Coast Guard, Integrated Business Management Services.

Table of ContentsCanadian Coast Guard Business Plan 2007-2010Message from the Commissioner ..............................................................................1Introduction .............................................................................................................3Section 1: Operational Framework.............................................................................4An Essential National Institution............................................................................................................. 4Mission and Mandate .............................................................................................................................. 4Vision and Values..................................................................................................................................... 5Operating Principles ................................................................................................................................ 5Section 2: Priorities 2007-2010................................................................................6Focus on Client Service ............................................................................................7Levels of Service Review ..................................................................................................................... 7Marine Services Fees Strategy............................................................................................................ 8Stronger Canadian Coast Guard Identity ............................................................................................. 8Strengthening Management ................................................................................................................ 9Continued Participation in the Federal Maritime Security Agenda ..................................................... 11Automatic Identification System/Long Range Identification and Tracking......................................... 11Focus on Efficiency and Effectiveness .....................................................................13Procurement of New Vessels ............................................................................................................ 13Improved Maintenance of the Existing Fleet...................................................................................... 14Fleet Operational Readiness ............................................................................................................. 15Aids to Navigation of the 21 st Century............................................................................................... 16The Integrated Technical Services Strategy Project........................................................................... 17Focus on People .....................................................................................................19Enhanced Human Resources and Succession Planning.................................................................... 19Standard Regional Organizations ...................................................................................................... 20Development of People ..................................................................................................................... 21Address Operational Issues .............................................................................................................. 21Section 3: Ongoing Services ...................................................................................23Performance Information ....................................................................................................................... 24Resource Profile..................................................................................................................................... 24www.ccg-gcc.gc.cai

Canadian Coast Guard Business Plan 2007-2010Services by PAA Sub-Activity ..................................................................................26Aids to Navigation Services .................................................................................................................. 26Reinvestment in the Asset Base ....................................................................................................... 27Waterways Management Services ........................................................................................................ 28Marine Communications and Traffic Services....................................................................................... 29Key Initiative...................................................................................................................................... 30Reinvestment in the Asset Base ....................................................................................................... 31Icebreaking Services ............................................................................................................................. 32Search and Rescue Services................................................................................................................. 34Key Initiatives .................................................................................................................................... 35Environmental Response Services ........................................................................................................ 37Key Initiatives .................................................................................................................................... 38Maritime Security .................................................................................................................................. 40Reinvestment in the Asset Base ....................................................................................................... 40Coast Guard Fleet Operational Readiness ............................................................................................ 42Science.............................................................................................................................................. 44Fisheries and Aquaculture Management — Conservation and Protection......................................... 45Key Initiatives .................................................................................................................................... 46Reinvestment in the Asset Base ....................................................................................................... 48Lifecycle Asset Management Services ................................................................................................. 49Key Initiatives .................................................................................................................................... 50Reinvestment in the Asset Base ....................................................................................................... 51Canadian Coast Guard College.............................................................................................................. 52International Activities ...........................................................................................53Section 4: Corporate Risk and Mitigation ................................................................54Section 5: Management Agenda .............................................................................55Section 6: Workforce..............................................................................................56Regional Distribution ............................................................................................................................. 56Language and Diversity ......................................................................................................................... 56Employment Tenure ............................................................................................................................... 57Occupational Group Distribution ........................................................................................................... 57Eligibility for Retirement........................................................................................................................ 58Projected Departures............................................................................................................................. 59Bargaining Agents ................................................................................................................................. 60iiwww.ccg-gcc.gc.ca

Canadian Coast Guard Business Plan 2007-2010The 2005 Public Service Employee Survey........................................................................................... 60Section 7: Financial Information..............................................................................62Improvements to Financial Stability...................................................................................................... 62Activity-Based Budgeting ................................................................................................................... 62The New Program Activity Architecture .............................................................................................. 62Refit Authority.................................................................................................................................... 63Capital Carry-Forward Authority.......................................................................................................... 63Financial Data.................................................................................................................................... 63Annex A: Reinvestment in the Asset Base ...............................................................69Annex B: Fleet Strategic Investment .......................................................................72Annex C: Proposed Program Activity Architecture....................................................75List of Acronyms.....................................................................................................76Index .....................................................................................................................79List of TablesTable 1: 2007-2008 Summary of Resource Profile by PAA Sub-Activity (thousands of dollars) ............... 24Table 2: 2007-2008 Planned Ship Support*(excluding fuel) by Region (thousands of dollars)............... 25Table 3: 2007-2008 Resource Profile, Aids to Navigation Services (thousands of dollars) .................... 27Table 4: 2007-2008 Resource Profile, Waterways Management Services (thousands of dollars)........... 28Table 5: 2007-2008 Resource Profile, Marine Communications and Traffic Services(thousands of dollars) ........................................................................................................ 30Table 6: 2007-2008 Resource Profile, Icebreaking Services (thousands of dollars).............................. 33Table 7: 2007-2008 Resource Profile, Search and Rescue Services (thousands of dollars) .................. 34Table 8: 2007-2008 Resource Profile, Environmental Response Services (thousands of dollars) .......... 38Table 9: 2007-2008 Resource Profile, Maritime Security (thousands of dollars) .................................. 40Table 10: 2007-2008 Resource Profile, Coast Guard Fleet Operational Readiness(thousands of dollars) ........................................................................................................ 43Table 11: 2007-2008 Fleet Operations Plan, Science.......................................................................... 45Table 12: 2007-2008 Fleet Operations Plan, Fisheries and Aquaculture Management (FAM) .................. 46www.ccg-gcc.gc.caiii

Canadian Coast Guard Business Plan 2007-2010Table 13: 2007-2008 Resource Profile, Lifecycle Asset Management Services (thousands of dollars)..... 50Table 14: 2007-2008 Resource Profile, Canadian Coast Guard College (thousands of dollars) ............... 52Table 15: Derivation of 2007-2008 Expected Year-end Budget from 2006-2007 ExpectedYear-end Budget ................................................................................................................ 64Table 16: 2007-2008 Financial Allocations by Sub-Activity (thousands of dollars) .................................. 65Table 17: 2007-2008 Financial Allocations by Region (thousands of dollars)......................................... 65Table 18: 2007-2008 Financial Allocations by Sub-Activity by Region (thousands of dollars) ................... 66Table 19: 2007-2008 National Programs by Sub-Activity (thousands of dollars) ..................................... 67Table 20: Total Number of CCG Full-time Equivalents (FTEs)................................................................. 68List of FiguresFigure 1: 2007-2008 Planned Vessel Use by Program (in non-weighted days) ....................................... 42Figure 2: 2007-2008 Planned Vessel Costs by Program ...................................................................... 44Figure 3: Regional Distribution, CCG Employees ................................................................................. 56Figure 4: Age Distribution, CCG Employees......................................................................................... 58Figure 5: Percentage of Occupational Groups Eligible to Retire by 2011 ............................................... 59Figure 6: CCG Employee Representation by Bargaining Agent............................................................... 60ivwww.ccg-gcc.gc.ca

Message from the CommissionerMESSAGE FROM THE COMMISSIONERThe Canadian Coast Guard is a national institution that providesimportant maritime programs and services to Canadians. It is astrong and visible presence on all three coasts with its distinctivered and white fleet and its many bases, stations and centres. Thestrength of the organization is the professional and dedicatedpeople who care about their jobs and who live by the motto of SafetyFirst, Service Always. The achievements of a number of theseindividuals are highlighted throughout this Business Plan.The Coast Guard is proud of its solid record of program and servicedelivery. While there is always room for improvement, it is effectivein delivering its core mandate. It continues to maintain one of thebest records in the world for search and rescue, notwithstanding thesize of our country and one of the harshest climates in the world.Key maritime programs such as icebreaking, aids to navigation,waterways management, and vessel traffic control facilitate themaritime traffic and commerce that is so critical to our economy.The Coast Guard has front-line responsibility for responding toenvironmental issues on the water. It provides significant support toother parts of the Department of Fisheries and Oceans on scienceand enforcement activities, and to other government departmentson various activities, increasingly on maritime security. Specifyinghow to deliver these core services as effectively and efficiently aspossible is the overarching goal of this Business Plan.There have been significant investments in the Coast Guard that are beginning to make adifference. For example, several years ago additional capital monies were provided tosupport our shore-based infrastructure; in 2006, additional funding was provided for someof our operational shortfalls, and the last two federal budgets have authorized the CoastGuard to acquire a total of 16 large vessels, 5 of which are additions to the base fleet.We are beginning to see the positive results from these investments, and more willbecome apparent as the new vessels come into service, beginning in 2009. Theseinvestments have helped us turn the corner and lay the foundation for a much strongernational Agency.Despite its solid record and the good work of its people, the Coast Guard has to facechallenges that are common to many organizations within and outside government. Forexample: Implementing new technology that facilitates greater operational efficiency but is costlyand complicated by widely varying technological capabilities among the users of ourservices. Hiring, in an increasingly competitive labour market, replacements for the manyemployees who will soon be retiring. Dealing with costs that are outside our control. For example, a fuel price increase of 1cent per litre costs the Coast Guard close to $700,000. Replacing aging infrastructure that is increasingly costly to maintain and more prone tobreakdown.Like any successful organization, the Coast Guard must take these factors into account inplanning its activities. CCG must also make faster progress on some of its modernizationwww.ccg-gcc.gc.ca Page 1

Canadian Coast Guard Business Plan 2007-2010initiatives to mitigate the risks these challenges pose to the delivery of programs andservices.There are also some significant management challenges that must be addressed. Theywere highlighted in an internal A-Base Review conducted in 2006 and in a report from theAuditor General issued in early 2007. The Coast Guard is still not functioning effectivelyas a single national Agency. It has not yet found the right balance between nationalconsistency for planning, administration and reporting and regional flexibility foroperations. In many areas, the frameworks, policies and systems necessary to transformthe Coast Guard into a true national Agency have not yet been fully developed. There arealso a number of weaknesses in maintenance and asset management that must beaddressed, not all of which are due to the age of the assets. In addition, through the2005 Public Service Employee Survey, our employees identified several areas where theywould like to see improvement. How these issues will be addressed over time is animportant part of this Business Plan.The Coast Guard has a “can do” attitude that has served it very well in its operations.However, this same attitude has in the past led CCG to take on too much and to try toaddress all challenges at once, and often in unrealistic timeframes. This Business Plandoes not try to address all challenges simultaneously. We have identified five overarchingpriorities and a manageable number of commitments for each priority; we have alsospecified the accountable manager for each commitment.In developing this Business Plan, we have sought input from the users of our services, thebargaining agents that represent our employees and the Office of the Auditor General.The resulting Business Plan takes a measured, incremental approach that will, over time,lead to the stronger national Agency we all want. I am confident that by working togetherwe will achieve the results we seek and maintain the confidence that Canadians have inthe Coast Guard.George Da PontCommissioner, Canadian Coast GuardPage 2www.ccg-gcc.gc.ca

IntroductionINTRODUCTIONThis document is the Canadian Coast Guard’s Business Plan for the years 2007 through2010. It is recognized that the plan is heavily focused on the nearer term, but CCG, overtime, will endeavour to improve its multi-year planning.The document has two major and quite distinct purposes: First and foremost, this document is the Coast Guard’s blueprint for action for the nextthree years. It amalgamates a number of separate plans, including the SpecialOperating Agency (SOA) Implementation Plan and plans responding to previous reportsof the Auditor General. It also responds directly to the 2007 Report of the AuditorGeneral, the 2006 A-Base Review, and the findings of the Public Service EmployeeSurvey. It presents the steps that CCG will be taking to serve its clients better and tobecome a true national Agency. Second, the document is a communications vehicle designed to convey the CCGmessage and commitments to its employees, stakeholders and the Canadian public.To achieve its goals over the 2007-2010 planning period, CCG will pursue a focused setof priorities while continuing to serve its clients.In the first section of this document, you will find some of the key elements of CoastGuard’s Operational Framework, including the Agency’s mission, mandate, vision, valuesand operating principles. The following two sections discuss the five priorities (Section 2)and detail with regard to ongoing services (Section 3) for each Program ActivityArchitecture Sub-Activity; these two sections form the bulk of the Business Plan.The remaining sections of the Business Plan present an analysis of corporate risks andmitigation strategies (Section 4); the Agency’s management agenda, which is consistentwith the 10 elements of the Management Accountability Framework (Section 5); adescription of Coast Guard’s workforce (Section 6); and details on recent improvementsto financial stability and relevant financial tables (Section 7). There are also threeannexes: Annexes A and B present information on reinvestment in the shore-based assetbase and fleet asset base respectively; Annex C presents CCG’s proposed ProgramActivity Architecture.The reader should take note that while this document contains expected results andperformance indicators for CCG programs, this is under review. Where appropriate, CoastGuard may change these in order to optimize accountability to all its stakeholders,including the Canadian public at large.A number of the initiatives and commitments described in this Business Plan areresponses to recent reviews and reports. For this reason, we have highlighted withacronyms the commitments related to our 2006 A-Base Review (A-Base), the February2007 Report of the Auditor General (OAG), and the findings of the Public Service EmployeeSurvey (PSES) conducted in late 2005.www.ccg-gcc.gc.ca Page 3

Canadian Coast Guard Business Plan 2007-2010SECTION 1: OPERATIONAL FRAMEWORKAn Essential National InstitutionThe Canadian Coast Guard is a national institution that visibly demonstrates Canada’sinfluence over its waters and coasts. It is instrumental to the Government fulfilling itsmaritime mandate. The Canadian Coast Guard: Is an essential contributor to the maintenance of a safe, secure, accessible andsustainable national maritime transportation system for the benefit of all Canadians; Is Canada’s civilian maritime organization and operator of the Government’s civilianfleet; Is a symbol of Canada’s sovereignty, delivering its own programs, supportingdepartmental priorities and the maritime mandates of other government departments;and Provides Canadians with a federal presence and sense of safety and security.Mission and MandateCoast Guard’s mission is: Excellence in maritime services.The mandate of Coast Guard derives from two pieces of legislation: the Oceans Act andthe Canada Shipping Act. Both of these have been enacted pursuant to the legislativeauthority granted by the Constitution Act, 1867, which gives the federal governmentexclusive jurisdiction over navigation, shipping, beacons, buoys and lighthouses.The Oceans Act gives the Minister of Fisheries and Oceans responsibility for services forthe safe, economical and efficient movement of ships in Canadian waters, through theprovision of: Aids to navigation; Marine communications and traffic management services; Icebreaking and ice management services; and Channel maintenance.The Act also gives the Minister responsibility for: Marine search and rescue; Marine pollution response; and The support of other government departments, boards and agencies through theprovision of ships, aircraft and other services.The Canada Shipping Act gives the Minister responsibilities, powers and obligations withrespect to: aids to navigation; Sable Island and St. Paul Island; search and rescue;pollution response; and vessel traffic services.In addition to this legislation and policies that have been adopted by the federalgovernment, Canada has ratified several international conventions. It has also signedprotocols and memoranda of understanding that relate to navigation and shipping.Page 4www.ccg-gcc.gc.ca

Operational FrameworkVision and ValuesAs an essential component of Canada’s sovereignty, the Coast Guard is a nationalinstitution, providing service in: Maritime safety (preparation, prevention and response); Protection of the marine and freshwater environment; Facilitating maritime commerce and sustainable development; Support of marine scientific excellence; and Support of Canada’s maritime priorities.Coast Guard is a national institution that exists to help ensure safe, secure andaccessible Canadian waterways for all users. In doing so, it is a leader in implementingthe values enunciated in the Values and Ethics Code for the Public Service, includinghonesty, loyalty, accountability, efficiency, integrity, respect, fairness and courtesy. Inaddition, it embraces the following values. Coast Guard strives for the highest standards of teamwork, collegiality, collaborationand professionalism. This includes developing its employees, attending to their wellbeing,and ensuring their continuing dedication to excellence. Coast Guard provides the best service possible, in the most efficient way, to all itsclients and stakeholders. This includes performing all tasks with courage anddedication, but not recklessly. Coast Guard will not sacrifice safety for efficiency. Coast Guard encourages creativity, initiative and innovation. This includes listening to,and responding to, all concerns and suggestions for improvement from employees,clients and stakeholders.Operating PrinciplesAll of Coast Guard’s service decisions and actions are guided by the following principles: Coast Guard takes risk-based decisions. This means that all service decisions focusfirst on clients but are balanced with a commitment to fiscal responsibility. Coast Guard is committed to continuous renewal and productivity improvement. Thisincludes a strong commitment to self-examination and a willingness to embrace anychange that will improve service delivery in a cost-effective way. Coast Guard embraces a results-based approach to service delivery. Coast Guard isfocused on achieving its mission through the establishment of priorities, serviceobjectives, performance targets, performance measures and linkages to resources. Coast Guard is committed to ongoing reallocation from lower to higher priorities. CoastGuard actions will always reflect the knowledge that funds allocated to it by Parliamentare done so in trust for the good of all Canadians.www.ccg-gcc.gc.ca Page 5

Canadian Coast Guard Business Plan 2007-2010SECTION 2: PRIORITIES 2007-2010Priority 1: Strengthening CCG as a Client-Focused National AgencyFocus on Client ServiceLevels of Service ReviewMarine Services Fees StrategyStronger Canadian Coast Guard identityStrengthening ManagementPriority 2: Support for Canada’s Maritime Security AgendaContinued Participation in the Federal Maritime Security AgendaFocus on Efficiency andFocus on PeopleEffectivenessAutomatic Identification System/Long Range Identification and TrackingPriority 3: Fleet RenewalProcurement of New VesselsImproved Maintenance of the Existing FleetFleet Operational ReadinessPriority 4: Continued Implementation of Modernization InitiativesAids to Navigation of the 21 st CenturyIntegrated Technical Services Strategy ProjectPriority 5: Effective Management of Our Workforce and WorkplaceEnhanced Human Resources and Succession PlanningStandard Regional OrganizationsDevelopment of PeopleAddress Operational issuesPage 6www.ccg-gcc.gc.ca

Focus on Client ServiceFOCUS ON CLIENT SERVICEPriority 1: Strengthening CCG as a Client-FocusedNational AgencyThe Canadian Coast Guard became an Agency withinthe Department of Fisheries and Oceans to create astrong national institution focused on servicedelivery and its clients. Excellence in service iscentral to the Canadian Coast Guard motto, SafetyFirst, Service Always, and a core value for all CCGemployees in their day-to-day activities. However, theCoast Guard can do more to ensure consistentservice delivery to clients on a national basis.The first step is to take a more structured approachto client relationships both within and outside thefederal government. This has been done, and new orrevitalized advisory bodies are now in place. TheCoast Guard is committed to using these bodies toimprove communication, to work together on mattersof common interest, to discuss key strategic andservice delivery issues and to get feedback fromusers on its performance.Levels of Service ReviewBoth the 2007 Report of the Auditor General and theCoast Guard’s 2006 A-Base Review noted thatprogress in achieving up-to-date national policies,2006-2007 AccomplishmentsClient Relationships Put in place national and regional marine advisorybodies with the commercial shipping industry. Put in place a new strategic council with other federalgovernment departments that use Coast Guardservices. A Marine Services Fees industry/CCG Working Grouphas been established to assess options for theseservice fees.Coast Guard Identity Completed the design and planning of a memorial toemployees who lost their lives in the course of carryingout their duties. Established a new CCG Management Board UniformSub-Committee to develop guidelines and standards forwearing the CCG uniform. Held a Senior Manager’s Conference to develop acommon understanding of Agency priorities.Strengthening Management Completed a comprehensive A-base Review of theCoast Guard.standards and levels of service has been slow. While Levels of Service (LOS) Guidelineswere issued in 2004 for Aids to Navigation, Search and Rescue, Environmental Response,Icebreaking, Waterways Management and Marine Communications and Traffic Services,both the Report of the Auditor General and the A-Base Review noted that the Levels ofService were not being interpreted the same way throughout the Coast Guard and thattheir application varied from region to region.CCG is committed to having clear, precise levels of service that are understood in thesame way by all Coast Guard managers and stakeholders, and applied consistentlythroughout the country. To achieve this, CCG will ensure that the guidelines are clear andwill use the advisory bodies to develop a common understanding with both external andinternal users of its services. These discussions will also give CCG an opportunity toassess existing levels of service and any perceived gaps, as well as any requests forenhanced services. A dedicated team has been established to lead the LOS Review.A Search and Rescue (SAR) Needs Analysis is under way (see Section 3, page 35, fordetails). The Levels of Service Review will take the findings of this analysis into account.www.ccg-gcc.gc.ca Page 7

Canadian Coast Guard Business Plan 2007-20102007-2008CommitmentLeadCodify and reissue existing Levels of Service (LOS)Guidelines and, where applicable, existing servicestandards. Complete the Search and Rescue (SAR)Needs Analysis. Initial analysis and options will beavailable in June 2007.Start consultations with clients and stakeholdersthrough advisory bodies on LOS Guidelines and thefindings of the SAR Needs Analysis. This will identifyexisting variances in service delivery and take astructured approach to requests for enhancedservices.2008-2009Develop clear high-level service standards andperformance indicators for each service.Develop options and strategies to address theoutcomes of the consultations on LOS Guidelinesand the SAR Needs Analysis.OAGA-BaseOAGA-BaseOAGA-BaseOAGA-BaseDG, MaritimeServicesDG, MaritimeServicesDG, MaritimeServicesDG, MaritimeServicesMarine Services Fees StrategyThe intent of the Coast Guard’s Marine Services Fees Strategy is to collaborate with thecommercial shipping industry to develop options for the future of Marine Services Feesand to provide a common recommendation on these fees to the federal government. CCGwill consult with stakeholders on the future approach to Marine Services Fees to addressthe needs of both government and industry. A dedicated team is in place to lead thisinitiative.One key element will be to apply the newly developed departmental external chargingframework to Marine Services Fees. The framework is consistent with government policyand the direction of the Department’s external charging action plan.2007-2008CommitmentLeadDevelop proposed way forward, including different options andsecure government direction on recommended approach. Thisincludes addressing the Arctic Fee issue.2008-2009Implement government direction.DG, IntegratedBusinessManagementServices (IBMS)DG, MaritimeServicesStronger Canadian Coast Guard IdentityThe Canadian Coast Guard seeks to strengthen pride in its identity and traditions and toreinforce the values and culture required to operate effectively as a national Agency. CCGwill focus on developing common, consistent communications material and an Internetrenewal initiative. The objectives of the initiative are to provide consistent, streamlinedand fully integrated information to better serve clients and to use the Internet to furtherCCG’s business priorities and service delivery objectives. The CCG Internet site will alsohelp promote CCG’s identity. In addition, in response to issues raised in the 2005 PublicPage 8www.ccg-gcc.gc.ca

Focus on Client ServiceService Employee Survey, a national newsletter will be reinstated to improvecommunications with employees.CCG will finalize its Uniform Policy Guidelines so that a consistent approach is takenacross the country. The Agency will also dedicate a memorial at the Canadian CoastGuard College, in September 2007, coinciding with World Marine Day, to remember thosewho lost their lives in the service of the Coast Guard and their country.2007-2008CommitmentLeadBuild a nationally consistent Internet presence.Develop common communications material forexternal use and re-establish a twice-yearly nationalCCG newsletter.Finalize and implement Uniform Policy Guidelines.A-BasePSESExecutiveAdvisor,CommissionerDG, IBMSAssistantCommissioner(AC), Central andArcticStrengthening ManagementAs stressed in the 2007 Report of the Auditor General and our own 2006 A-Base Review,CCG must work toward national consistency in its planning, reporting and managementpractices. As an integral part of strengthening itself as a national Agency, the Coast Guardwill seek approval to revise its Program Activity Architecture (PAA) to demonstrate moreclearly how it spends its monies and how it contributes to the strategic objective ofproviding Canada with safe, secure and accessible waterways. CCG will also finalize andimplement a results-based management accountability framework that demonstrates howthe Coast Guard manages for results and ensures accountability. This will informdiscussions with our stakeholders and clients and facilitate decision-making. As well, theAgency will establish nationally consistent management practices and processes intargeted areas.2007-2008CommitmentLeadSeek approval of an amended Program ActivityArchitecture (PAA) for use in all internal andexternal planning documents and systems to betteralign with our programs and activities and providegreater transparency on how funds are spent.Develop a performance measurement andreporting framework in line with governmentprinciples regarding effective management andaccountability.Develop national practices and processes:• Consistent terminology and definitions for keyCCG assets and infrastructure.• A financial coding structure consistent withthe approved PAA.• Common protocols for salary data entry.OAGOAGOAGA-BaseOAGA-BaseOAGA-BaseDG, IBMSDG, IBMSDG, ITSDG, IBMSAC, Maritimeswww.ccg-gcc.gc.ca Page 9

Canadian Coast Guard Business Plan 2007-2010CommitmentLeadDevelop consistency in levels of support serviceprovided by DFO, Human Resources and CorporateServices (HRCS) to CCG regions:• Report on the relationship with HRCS andservice levels provided to the Agency in eachCCG region.2008-2009Implement the revised PAA in all internal andexternal planning documents and systems.Implement the performance measurement andreporting framework.Implement national practices and processes:• The new financial coding structure.• New protocols for salary data entry.Fully implement budgeting based on the approvedPAA.Develop consistency in levels of support serviceprovided by DFO, HRCS to CCG regions:• New SLA signed between the Agency & HRCSthat specifies minimum levels of serviceprovided and related performance measures.A-BaseOAGOAGOAGA-BaseOAGA-BaseOAGA-BaseAC, Newfoundlandand LabradorDG, IBMSDG, IBMSDG, IBMSDG, IBMSDG, IBMSAC, Newfoundlandand LabradorPage 10www.ccg-gcc.gc.ca

Canadian Coast Guard Business Plan 2007-2010The Long Range Identification and Tracking (LRIT) system is an integral part of theInternational Maritime Organization’s efforts to further enhance maritime security. LRITwill provide for the tracking of Safety of Life at Sea Convention (SOLAS) class vesselsentering Canada and of Canadian SOLAS class vessels operating internationally. Thissystem uses satellite technology to obtain positional data on implicated vessels. CCG istaking the lead within the international community to develop the technical specificationfor the international LRIT system, which is expected to be fully operational by 2009.See Annex A, on page 69, for further details.2007-2008CommitmentLeadContinue to participate in Government of Canada securityagenda discussions and develop options for CCG support asrequired.Continue work on implementation of the DND-led east andwest coast Marine Security Operations Centres (MSOCs), andon the development of the RCMP-led Great Lakes-St.Lawrence Seaway MSOC.Deliver enhanced Marine Security Enforcement Team (MSET)training to relevant CCG employees.DeputyCommissionerDeputyCommissionerDG, Fleet2008-2009Implement AIS and LRIT according to schedule.DG, ITSPage 12www.ccg-gcc.gc.ca

Focus on Efficiency and EffectivenessFOCUS ON EFFICIENCY AND EFFECTIVENESSPriority 3: Fleet RenewalThe goal of the Fleet Renewal priority is to procure newvessels to replace those that are beyond their useful life,to improve maintenance of existing vessels throughlifecycle management and to manage the fleet moreeffectively through better operational planning processesand the development of clear charging policies.Procurement of New VesselsBudget 2006 authorized the Coast Guard to acquire 10new vessels at a cost of $345 million; 6 of the 10 were toreplace existing vessels that were at or near the end oftheir useful life, and 4 were additions to the base fleet tosupport enhanced maritime security activities on the GreatLakes and St. Lawrence River. The objective is to managethese procurement processes on time and within budget.The target date is 2009 for the delivery of the first of the 8new mid-shore patrol vessels, 2011 for the first of the 2new offshore science vessels. In addition to the 10 newvessels, an Air Cushion Vehicle (ACV) is being acquired toreplace an older one in Quebec.Budget 2007 provided $324 million for procurement,operation and maintenance of an additional 6 vessels, 4more mid-shore patrol vessels, 1 additional offshore fishery science vessel, and 1offshore oceanographic vessel. Coast Guard will assess how to proceed with theseprocurement processes as quickly and efficiently as possible.2006-2007 AccomplishmentsProcurement of New Vessels Established a Major Crown Projects Office to procurenew vessels, a capacity that has not been in place forover 20 years. Secured Treasury Board approval for the procurementof eight new mid-shore patrol and preliminary projectapproval for two new off-shore science vessels. Secured funding in Budget 2007 for six new vessels.Improved Maintenance of the Existing Fleet Strengthened refit program planning and management.Fleet Operational Readiness Developed the concept of Fleet Operational Readiness. Developed a new Fleet Financial Framework andbudgetary process based on the concept of FleetOperational Readiness.Fleet Mission Readiness Expanded the Fleet National Coordination Centre.2007-2008CommitmentLeadIssue contracts for the mid-shore patrol vesselsapproved in Budget 2006.Finalize procurement strategies for the vesselsapproved in Budget 2007 and begin theprocurement process.2008-2009Issue contract for off-shore science vessels.2009-2010Delivery of first mid-shore patrol vessel (MSPV).OAGA-BaseOAGA-BaseDG, Major CrownProjectsDG, Major CrownProjectsDG, Major CrownProjectsDG, Major CrownProjectswww.ccg-gcc.gc.ca Page 13

Canadian Coast Guard Business Plan 2007-2010Improved Maintenance of the Existing FleetAcquiring new vessels will take a number of years. In the meantime, the existing fleetmust be kept as operationally ready as possible. CCG plans to seek approval for theestablishment of a new authority to consolidate all refit expenditures, which are now splitbetween capital and operating funds. CCG plans to spend $59.8 million for fleet assetrefits and refurbishments (vessels and helicopters) in 2007-2008. This will facilitatebetter planning and management of refit activities, which is critical to optimizing theavailability and reliability of an aging fleet.In the 2007 Report, the Auditor General noted that progress in implementing lifecyclemanagement has been slow and raised a number of issues regarding maintenancesystems and procedures. The Coast Guard will undertake a review of these issues toassess the matters raised and to develop concrete actions for quicker progress. Thereview will be completed before the end of the fiscal year. A dedicated team has beenestablished to lead this work.The Auditor General also noted that maintenance failures on vessels were linked to a lackof maintenance documents. About 20% of the standardized maintenance documentationmaterial has been developed, with the remaining 80% to be delivered within 4 years. Forall new vessels, the delivery of standardized documentation will be built directly into theprocurement process. For older vessels, where updating engineering and maintenancemanuals poses very significant challenges, a schedule will be developed to updatematerial where investment is warranted. The CCG Type 1100 class of vessels will be thepriority for the upcoming year. The ITS Strategy Project, described on page 17, furthersupports the effective lifecycle management of vessels.2007-2008CommitmentLeadSeek Treasury Board approval to establish new refitauthority, within the major capital envelope, tofacilitate planning and provide both in-year and yearover-yearbudget stability.Deliver a strategy and plan for the implementation ofa vessel survey program for use in developing refitwork packages and vessel replacement strategies.Develop and implement selected critical nationalstandard vessel maintenance documentation. This isto include 1) a set of standard refit specifications forthe Type 1100 class, 2) a plan for the developmentof standard refit specifications for remaining CCGvessel types and 3) a plan for the development ofstandard maintenance plans for critical ship’ssystems.Conduct a study relating to maintenance strategies,systems, procedures and operations to assess thecurrent situation and to inform effectiveimplementation of lifecycle management.OAGOAGOAGOAGDG, IBMSDG, ITSDG, ITSSpecial Advisorto theCommissionerPage 14www.ccg-gcc.gc.ca

Focus on Efficiency and EffectivenessFleet Operational ReadinessCCG is working toward implementing the concept of Fleet Operational Readiness. Thisconcept was developed in 2006 to establish the foundation forplanning the longer term capacity requirements of the CCG fleet forthe Government of Canada. Fleet Operational Readiness providesthe framework to resolve several of the issues raised by the AuditorGeneral in past reports such as: Allowing for a long-term fleet planning and funding horizon; and Service accords with Government of Canada clients and thecorresponding business model.Fleet Operational Readiness Positioning CCG for long-term fleetcapacity planning and management ofthe fleet funding envelope.The Fleet Operational Readiness concept is centred around thetheme of ensuring that CCG has the means and the ability to respond to the on-water andmarine related needs of Canadians and the Government of Canada in a safe, timely andeffective manner. This would not only include the marine response of a vessel orhelicopter but also indicate that CCG has mastered the appropriate managementfunctions (financial, operational, and technical) to ensure that any and all units safely andeffectively respond to on-water and marine-related needs, now and in the future.Some specific costs of having a fleet ready and able to go to sea were previouslydistributed among different Coast Guard programs, as well as DFO’s Science andConservation and Protection programs. As a result, the full cost of the CCG fleet was notclear, and complex discussions with clients regarding cost-allocation formulas werecommon. With the introduction of the readiness concept and the development of thecorresponding business framework (including charging, pricing policies and businessrules), the financial resources required to support an operationally ready fleet will betransparent to program clients.2007-2008CommitmentLeadDevelop new charging model and performanceindicators for internal clients based on the conceptof operational readiness.Improve coding and business rules for the FleetActivity Information System (FAIS) to meet fleet andclient information requirements.OAGOAGDG, FleetDG, FleetDefine requirements of fleet mission readiness. OAG DG, FleetDevelop new Enhanced Fleet Planning Processintegrated with Business Planning process.Publish a Fleet Annual Report for 2006-2007 thatclearly depicts quantitative and qualitative analysisof the fleet’s performance.2008-2009Develop and finalize a Fleet Management Manual.Implement mission readiness for fleet.Implement an improved Service Level Agreementwith internal clients based on new funding andcharging models.OAGOAGOAGDG, FleetDG, FleetDG, FleetDG, FleetDG, Fleetwww.ccg-gcc.gc.ca Page 15

Canadian Coast Guard Business Plan 2007-2010Priority 4: Continued Implementation of ModernizationInitiatives2006-2007 AccomplishmentsAids to Navigation of the 21st Century AToN 21 Team announced in January 2007. 4 out of 17 of Aids to Navigation Operational Directivesupdated. 8% reduction of large steel buoys (126 buoys). Additional 222 lighted buoys converted to Light EmittingDiode (LED) technology; 81% now converted. 72 year-round lighted spar buoys replaced seasonallighted buoys on the St. Lawrence Seaway.Integrated Technical Services Strategy Project Developed and approved four of five national processesto serve as the basis for national consistency andaccountability in the management of CCG’s AssetManagement Services. Developed and approved approximately 20% of theguidance manuals, operating procedures and standardsthat define the application of lifecycle management atthe working level.It will always be a priority of the Canadian Coast Guard toinvestigate and implement new ways of doing business thatallow it to realize greater efficiencies and bolster its resultsfor Canadians. In this regard, specific initiatives over thenext few years will include Aids to Navigation of the 21 stCentury (AToN 21), the improved maintenance of existingshore-based infrastructure, and finalization of the IntegratedTechnical Services (ITS) Strategy Project.Aids to Navigation of the 21 st CenturyUnder its Aids to Navigation of the 21 st Century initiative,CCG reaffirms its commitment to innovation and continuousimprovement — while maintaining CCG’s strong tradition ofservice and safety.The result of AToN 21 will be the delivery of a quality servicewhile maintaining safety in the ever-changing world oftechnology. It will be attained by considering the changingnavigational needs of users in Canadian waterways, byensuring the right mix of aids to navigation in thosewaterways, and by laying the foundation for an efficient andeffective aids to navigation service for the future.In moving forward with AToN 21, business cases that weigh the costs and benefits ofservice delivery options and new technology will be developed and used for consultationpurposes with relevant stakeholders before any decisions are taken. The Agencyrecognizes the importance of managing for results and effective consultation — withclients, stakeholders and unions. Consultations will be held at the regional level, and adedicated national web and e-mail address have been established to both provideinformation to and receive contributions from all stakeholders.AToN 21 is not about cuts in service or expenditures, although it is expected that, overtime, some savings may result from innovation and implementation of new technology. Novessel will be removed from service as a result of AToN 21, nor will any employee lose hisor her job, although the nature of some jobs may change.AToN 21 is a multi-year initiative with specific initiatives that will be undertaken each year.There will be clear accountability for implementation, tracking of results and regularreports of progress to users. A dedicated team has been established to lead the AToN 21initiative.Page 16www.ccg-gcc.gc.ca

2007-2008CommitmentFocus on Efficiency and EffectivenessLeadThe national targets for AToN 21 are as follows:• Increase conversion from 81% to 85% of lightedfloating aids to Light Emitting Diodes (LEDs).• Increase conversion from 73% to 75% offloating aids to plastic.Develop business cases for:• Paint facilities.• Medium/large plastic versus steel buoys(national study).• Regional service delivery for buoys and fixedaids.Begin consultations.Take the following Lifecycle Management andEquipment Standardization actions:• Develop national standards for themaintenance of short-range aids to navigationequipment, towers and buoys.• Develop a fixed aids Service Delivery directive.• Develop specifications for small and mediumplastic buoys, 5-mile LEDs and SyntheticMoorings (SMs) under 600 lbs (272 Kg).• Develop guidelines for SMs exceeding 600 lbs.Develop draft of e-navigation vision for CCG for futureconsultations.Develop a strategy for the future of the LORAN-Cservice subject to the broader international approachto LORAN technology.2008-2009Consult with stakeholders through the advisorybodies about e-navigation vision.Implement decisions with respect to business casesfollowing full consultations.Produce annual progress report on AToN 21.OAGOAGDG, MaritimeServicesDG, MaritimeServicesDG, ITSDG, MaritimeServicesDG, MaritimeServicesDG, MaritimeServicesDG, MaritimeServicesDG, MaritimeServicesThe Integrated Technical Services Strategy ProjectThe Integrated Technical Services (ITS) Strategy Project, launched in April 2000, isdesigned to respond to government expectations with respect to asset management. Itspurpose is to develop and implement a national lifecycle materiel management systemthat will ensure that CCG assets are available, reliable and safe and are provided at thelowest lifecycle cost.The Auditor General’s 2007 Report expressed concern with regard to the progress beingmade on this initiative and cited examples of how the lack of fundamental lifecyclemanagement practices contributed to maintenance failures and increased costs. TheCoast Guard is committed to addressing these concerns. Part of the response iscompleting the Integrated Technical Services Strategy Project. Accordingly, the ITSwww.ccg-gcc.gc.ca Page 17

Canadian Coast Guard Business Plan 2007-2010Strategy Project will end in March 2008, having put in place the nationally consistentorganization and human resources (HR) framework, as well as underlying managementprocesses and procedures, to effectively deliver Lifecycle Asset Management Services topartners and clients. The Coast Guard recognizes, however, that more work will need tobe done to address the concerns of the Auditor General. As outlined on page 14, a studywill assess the current situation and provide a roadmap for moving forward in this area.2007-2008CommitmentLeadImplement a nationally consistent regionalorganization (see details on page 20).Deliver a focused plan for the targeted, phasedimplementation of the Maintenance InformationManagement System (MIMS).Complete Services Catalogue, with activity costs, todescribe the range of CCG’s Asset ManagementServices and allow the preparation of costed workplans and reliable business plan estimates.Deliver a guidance manual that establishes theprocedures and practices to ensure that resourcemanagement and the reporting of technical work arecompleted in a businesslike manner and conform tothe Department’s and CCG’s requirements.Complete the technical operating methodologies —Project Management, Risk Management and QualityManagement — that describe program managementprocedures and practices.2008-2009Deliver a project completion report for the ITSStrategy Project.OAGPSESOAGDG, ITSDG, ITSDG, ITSDG, ITSDG, ITSDG, ITSPage 18www.ccg-gcc.gc.ca

Focus on PeopleFOCUS ON PEOPLEPriority 5: Effective Management of Our Workforce andWorkplaceCCG has the confidence of Canadians because of itsprofessional, dedicated workforce. At both the national andinternational levels, the marine industry is experiencing ashortage of skilled mariners to deal with the continualincrease in the use of global marine transportation systems.This is also happening in many of our other technical andoperational categories of workers.Succession planning, staffing and recruitment strategies, aswell as employee development, are key initiatives forretaining specialized workers in a competitive market andaddressing the retirement of many of our most experiencedworkers over the next few years. Integrated business andhuman resource planning at all levels of the organization willhelp ensure that CCG continues to have the skilled andprofessional people it needs to deliver its programs andservices into the future.CCG is committed to creating a representative workforce anda workplace that is inclusive, respectful and free ofdiscrimination. CCG will exercise the flexibilities of the PublicService Employment Act to work toward achievingEmployment Equity results.2006-2007 AccomplishmentsHR and Succession Planning Established a Workforce Development Unit to develop abetter capacity to assess and monitor HR issues. Helda two-day national workshop to support HR planningactivities. Created an HR Sub-Committee of Management Boardto put more senior level focus on HR issues. Analyzed 2005 PSES results with a working groupconsisting of representatives from across CCG. TheCCG action plan is incorporated in this Business Planfor implementation.Standard Organization Established plans to develop National Model WorkDescriptions for 40% of CCG positions.Development of People Created and approved CCG Educational LeaveGuidelines.Operational Issues Increased intake of new officer cadets at the CoastGuard College from 22 in September of 2005 to 40 inSeptember of 2006 in anticipation of future needsassessed on a 10-year planning horizon.All initiatives affecting Coast Guard staff or their workenvironments will be undertaken with a view to addressingthe recommendations of the Public Service Employee Survey(PSES), the 2007 Report of the Auditor General and Coast Guard’s 2006 A-base Review.PSES is particularly vital to the management of Coast Guard human resources and workenvironments because it reflects the views and needs of Coast Guard employees, withoutwhom CCG would be unable to maintain its high standards of services to Canadians.Furthermore, as part of ensuring that employee perspectives and interests are taken intoaccount in the course of ongoing management, CCG will continue to build collaborativeworking relationships with relevant bargaining agents.Enhanced Human Resources and Succession PlanningThe Coast Guard will strengthen its capacity and process for human resources planningand succession planning. To accomplish this, CCG’s Workforce Development unit, underthe leadership of the Deputy Commissioner, will take on a strategic role in humanresources planning, working with all parts of the Coast Guard to foster planningrequirements for seagoing and shore-based personnel.www.ccg-gcc.gc.ca Page 19

Canadian Coast Guard Business Plan 2007-20102007-2008CommitmentLeadDevelop and implement one comprehensivenational HR plan for CCG that includes EmploymentEquity commitments and strategies for recruitmentand succession planning of critical groups.Seagoing Personnel Career Development Initiative— Build capacity and program.2008-2009Integrate HR planning in business planningprocess.Implement Seagoing Personnel CareerDevelopment Initiative.PSESDeputyCommissionerDG, FleetDG, IBMSDG, FleetStandard Regional OrganizationsBoth the 2007 Report of the Auditor General and the 2006 A-Base Review noted thedrawbacks of not having standard regional organizations. Employees also flagged relatedissues in the 2005 Public Service Employee Survey. CCG is committed to developing andimplementing a standard regional organization model that will be one of the underpinningsof our efforts to ensure national consistency. National Model Work Descriptions (NMWDs)will also be developed to help standardize core competencies and entrench them in theregional organization model where appropriate. In doing so, CCG will seek the input ofbargaining agents.CCG currently has 66 NMWDs that apply to 706 of the 6,687 * positions in the Agency.The Marine Communications and Traffic Services community was the first NMWD priority,and all 467 MCTSO positions have been standardized. In 2007-2008, CCG will continueto focus its NMWD efforts on positions in the technical and seagoing communities. In2008-2009 we will address the remaining shore-based positions.2007-2008CommitmentLeadObtain approval of standard regional organizationsand migration strategy from CCG ManagementBoard.Develop NMWDs for technical and seagoingpositions.2008-2009Begin migration to standard organizations (earlier ifpossible).Develop NMWDs for remaining shore-basedpositions.OAGA-BasePSESOAGA-BasePSESOAGA-BasePSESOAGA-BasePSESDGs and ACsDGs and ACsDGs and ACsDGs and ACs*This does not represent the number of positions that are staffed on an ongoing basis.Page 20www.ccg-gcc.gc.ca

2009-2010CommitmentFocus on PeopleLeadFinalize migration to standard organization.Conclude application of NMWD CCG-wide.OAGA-BasePSESOAGA-BasePSESDGs and ACsDGs and ACsDevelopment of PeopleTo deal with risks associated with demographic shifts and ensuing retirements, CCG willundertake learning and development initiatives to build and maintain a skilled, welltrained,knowledgeable and professional workforce. To help ensure the continuity ofcorporate knowledge and management capacity critical to its operations, as well as toaddress concerns expressed by employees in the Public Service Employee Survey, CCGwill establish senior developmental positions in the regions and develop a nationaltraining strategy.2007-2008CommitmentLeadCreate and staff one senior developmental positionwithin each Assistant Commissioner’s office to helpdevelop middle management capacity.Develop a national training strategy based on bestpracticesPSESPSESAC, Newfoundlandand LabradorAC, PacificAddress Operational IssuesOver the next three years, CCG will strive to address the most pressing operational humanresources requirements to ensure the effective continuity of its services and to respond tothe needs of its employees. The need to deal with operational issues with regard to itspeople is a concern highlighted in the 2005 Public Service Employee Survey, the 2006A-Base Review and the 2007 Report of the Auditor General. Steps for addressing some ofthe more pressing operational concerns include implementing a meaningful performancereview system, developing effective frameworks for Ships’ Crew collective bargaining anddeveloping a standard crewing matrix and competency profiles.Coast Guard is also committed to the health and safety of its employees. We will continueto participate in and support the departmental program for Occupational Health andSafety. Two key elements of the program are the Fleet Safety Management System andthe Health, Safety and Environmental Management System. These systems, when fullyimplemented, will allow Assistant Commissioners to exercise due diligence in the conductof operations ashore and afloat through nationally consistent application of DFO policies.www.ccg-gcc.gc.ca Page 21

Canadian Coast Guard Business Plan 2007-20102007-2008CommitmentLeadDevelop a plan for a phased national implementationof the Performance Review System used in QuebecRegion, which is a best practice.Develop strategic frameworks for collective bargainingwith Ships’ Crews.Develop strategic frameworks for collective bargainingwith Radio Operations (ROs).2008-2009Develop standardized crewing matrix and competencyprofiles.PSESOAGA-BaseDeputyCommissionerDG, FleetDG, MaritimeServicesDG, FleetPage 22www.ccg-gcc.gc.ca

SECTION 3: ONGOING SERVICESOngoing ServicesOn an average day, the Coast Guard: Saves 8 lives; Assists 55 people in 19 search and rescue cases; Handles 1,127 marine radio contacts; Manages 2,346 commercial ship movements; Services 55 aids to navigation; Escorts 4 commercial vessels through ice; Carries out 12 fisheries patrols, supports 8 scientific surveys and 3 hydrographicalmissions; Deals with 3 reported pollution events; and Surveys 5 kilometres of navigation channel bottom.CCG provides these and other servicesthrough the management of Canada’scivilian fleet and a broadly distributedshore infrastructure. CCG also providesextensive marine expertise whiledelivering its services and managing itsbusiness through regular collaborationwith public and private partners. Thereplacement value of the assets requiredto provide CCG services is currentlyestimated at $5.6 billion: $4.0 billion forfleet assets and $1.6 billion forequipment and moveable assets. Theworkforce required to support theseservices numbers approximately 4,600(see page 57 for more details). As anational institution, the Agency strives tomeet in a uniform manner theexpectations of a broad and varied clientbase including the general public,commercial shippers, ferry operators,fishers, recreational boaters and coastalcommunities.This section deals primarily with the coreprograms and services provided toCanadians by the Coast Guard, organizedaccording to a new proposed ProgramA-Base Review Team, recipients of the Commissioner'sCommendation, overcame enormous data collection,compilation and analysis requirements. They met tightdeadlines and the complexities of dealing with disparateinformation sources. They put forward results andrecommendations that will help guide the Coast Guard inthe future as it continues to maximize its efficient andeffective delivery of services.Members: Francine Cowley, Sandra Cunningham, SylvieDostie, Wayne Ellwood, Michelle Gosse, Dave Hunter,Lawrie Lachapelle, Suzie Pothier, Derek Rose, Anne-MarieSekerka, Wade Spurrell, Dave G. SmithPart-time members: Peter Ballard, Line Champagne, GregLick, David Sitland, Patrice TremblayAdditional Assistance: Laurene Boudreau, Tony Corneau,José Harvey, Pascal Nault, Matthew TaylorActivity Architecture (PAA), which has been submitted to Treasury Board for approval. ThePAA is the framework against which resources are allocated and results are reported. Thissection also highlights areas where significant investment is occurring and notes keyprojects aimed at improving the delivery of programs and services.www.ccg-gcc.gc.ca Page 23

Canadian Coast Guard Business Plan 2007-2010Performance InformationPerformance information in this section is presented in terms of the expected results andperformance indicators developed over the past several years. We are currently reviewingall of this performance information in light of the Treasury Board Secretariat’sManagement, Resources and Results Structure (MRRS) Policy. Aligning our performanceinformation with the MRRS policy is part of our commitment to improving the managementand accountability of the services we deliver to Canadians.The Coast Guard expects to have revised the expected results, performance indicatorsand performance targets for each of its services by October 2008.Resource ProfileThis section provides resource profiles for CCG’s 10 PAA sub-activities. These profilesinclude salary and Operations and Maintenance (O&M) costs. For CCG programs (Aids toNavigation Services, Waterways Management Services, Marine Communications andTraffic Services, Icebreaking Services, Search and Rescue, Environmental ResponseServices and Maritime Security), the resource profiles no longer include an allocation forthe fixed costs of the fleet, nor do they include an allocation for the lifecycle managementand maintenance costs of shore-based assets. Under the new proposed PAA, the fixedcosts of the fleet and the lifecycle management and maintenance costs are consolidatedin Fleet Operational Readiness and Lifecycle Asset Management.The following table summarizes the resource profile for each of CCG’s proposed PAAsub-activities.Table 1: 2007-2008 Summary of Resource Profile by PAA Sub-Activity(thousands of dollars)PAA Sub-ActivitySalaryOther Operations andMaintenance (O&M)TotalAids to NavigationServicesWaterways ManagementServicesMarine Communicationsand Traffic Services12,497.8 13,068.9 25,566.62,387.5 7,122.4 9,509.933,480.7 8,343.9 41,824.7Icebreaking Services 826.0 20,475.7 21,301.7Search and RescueServicesEnvironmental ResponseServices10,330.6 15,277.8 25,608.35,609.5 3,312.7 8,922.2Maritime Security 2,391.3 1,223.5 3,614.8Coast Guard FleetOperational ReadinessLifecycle AssetManagement Services161,562.0 60,432.0 221,994.060,393.8 28,779.7 89,173.5Coast Guard College 6,709.7 6,338.1 13,047.8Total CCG 296,189.0 164,374.6 460,563.6Page 24www.ccg-gcc.gc.ca

Ongoing ServicesTable 2 shows Ship Support costs that can be attributed to all internal clients (Scienceand Fisheries and Aquaculture Management) and to clients external to DFO (Other).Table 2: 2007-2008 Planned Ship Support*(excluding fuel) by Region(thousands of dollars)NewfoundlandandLabradorMaritimesQuebecCentral andArcticPacificTotalAids toNavigationServicesWaterwaysManagementServicesMarineCommunicationsandTrafficServices**IcebreakingServicesSearch andRescueServicesEnvironmentalResponseServicesMaritimeSecurity2,740.8 1,650.7 7,789.0 8,746.5 4,032.9 24,960.00.0 0.0 0.0 0.0 0.0 0.00.0 0.0 0.0 0.0 486.1 486.16,376.4 11,761.5 9,686.9 3,504.5 1,832.7 33,162.014,319.9 14,676.2 6,223.1 5,740.9 19,416.3 60,376.51.2 138.3 75.2 107.5 101.8 423.90.0 0.0 1,356.3 1,576.7 0.0 2,932.9Other*** 630.7 4,654.1 8,513.7 1,944.4 1,629.1 17,371.9Science 8,339.8 9,500.0 2,456.6 25.1 6,996.0 27,317.6Fisheries andAquacultureManagement3,506.5 3,620.9 1,926.2 0.0 3,448.9 12,502.4NAFO 5,472.6 0.0 0.0 0.0 0.0 5,472.6Total 41,387.8 46,001.8 38,026.9 21,645.6 37,943.9 185,006.1* Only the fixed costs associated with the ships are presented in this table. The difference between $185,006.1in this table and $221,994.0 reported elsewhere under Fleet Operational Readiness represents the shore-based($21,609.3), Helicopter ($10,378.6) and Small Craft Acquisition Plan ($5,000.0) costs included in FleetOperational Readiness.** Although ships do not normally provide support to Marine Communications and Traffic Services, they aresometimes used to assist in the calibration of radar equipment. This usage varies from region to region and yearto year.*** Other includes items that are in some cases recoverable through inter-departmental settlements such asthe Natural Sciences and Engineering Research Council of Canada, Natural Resources Canada, EnvironmentCanada Weather Buoys, and other special items such as the United Nations Convention on the Law of the Seaand International Polar Year.www.ccg-gcc.gc.ca Page 25

Canadian Coast Guard Business Plan 2007-2010SERVICES BY PAA SUB-ACTIVITYAids to Navigation ServicesThe Aids to Navigation Services programinvolves the provision of short-range In 2006-2007, Aids to Navigationmarine aids numbering 17,000-plus, Services…including visual aids (lighthouses and Replaced seasonal lighted buoys on the St.buoys) and sound aids (fog horns), asLawrence Seaway with 72 year-round lighted sparwell as radar aids (reflectors andbuoysbeacons) and long-range marine aids, Conducted cyclical Levels of Service reviews of itsincluding electronic aids such as theaids to navigation system, in consultation withDifferential Global Positioning Systemmarine users(DGPS). The benefit to mariners is safe,accessible and effective vessel transit inCanadian waters. This program isdelivered with the support of CCG’s operationally capable and ready fleet.Page 26www.ccg-gcc.gc.ca

Ongoing ServicesExpected Result*• Safe and effective vessel transits andmovements and access to ports* CCG performance information is under review.Performance Indicator*• Number of incidents attributed to aids tonavigationTable 3: 2007-2008 Resource Profile, Aids to Navigation Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador*3,211.4 1,815.2 5,026.6Maritimes 1,040.5 2,465.9 3,506.4Quebec 658.4 1,658.5 2,316.9Central and Arctic 969.1 2,433.9 3,403.0Pacific* 4,102.7 2,911.0 7,013.8National Programs** 0.0 298.0 298.0National Capital Region(NCR)2,515.6 1,486.3 4,001.9Total 12,497.8 13,068.9 25,566.6Ship Support 21,378.0 3,582.0 24,960.0* Salary differences between regions are largely due to variations in activities related to lighthouses. Of 246Canadian major lighthouses, 51 are staffed. CCG maintains 23 staffed lighthouses in the Newfoundland andLabrador Region, 27 in the Pacific Region, and, for sovereignty reasons, 1 in the Maritimes Region. Canada isone of the few countries that continue to staff lighthouses.** National Programs consists of $298.0K in research and development.Reinvestment in the Asset BaseSeveral major refurbishment projects are currently under way to ensure compliance withvarious codes and standards, including health and safety codes and Canadian StandardsAssociation (CSA) standards, and to address potential liability issues. For a fulldescription of the reinvestment, see Annex A.ProjectShort-Range Fixed AidsReplacement/RefurbishmentFixed Aids Major StructuresReplacement/RefurbishmentFloating Aids to NavigationRefurbishment2007-20082008-20092009-2010FutureYearsCost(millions ofdollars)3.9 3.6 3.7 7.3 18.53.8 3.7 3.7 7.2 18.43.8 3.8 3.8 6.1 17.5www.ccg-gcc.gc.ca Page 27

Canadian Coast Guard Business Plan 2007-2010Waterways Management ServicesThe Waterways Management program provides waterways management to ensure safetyand accessibility of waterways. Throughthis program, CCG provides channeldredging of the Great Lakes connectingchannels under a Canada-U.S.agreement, manages dredging of the StLawrence River on a cost-recovery basis,monitors channel bathymetry andcontributes to international control ofwater levels in the St. Lawrence River.The program also enables CCG toprovide users with marine safetyinformation, including water-depthforecasts. Waterways Managementsustains navigable channels, reducesIn 2006-2007, Waterways ManagementServices… Provided industry with advice and guidance on thesafe design and use of navigation channels forthe new generation of large ships beingintroduced on trade routes to Canada Surveyed the bottom of Canada’s main navigationchannels and provided users with information onthe condition of the bottom and hazards in thechannelsmarine navigation risks and supports environmental protection. This program is deliveredwith the support of CCG’s operationally capable and ready fleet.Expected Result• Safe and effective vessel transits andmovements and access to portsPerformance Indicator• Number of incidents attributed towaterways conditionsTable 4: 2007-2008 Resource Profile, Waterways Management Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador0.0 50.0 50.0Maritimes 625.2 921.5 1,546.7Quebec* 1,087.9 3,742.3 4,830.2Central and Arctic 79.5 1,333.3 1,412.8Pacific 221.7 904.3 1,126.0National Programs 0.0 0.0 0.0NCR 373.3 171.0 544.3Total 2,387.5 7,122.4 9,509.9Ship Support 0.0 0.0 0.0* Includes $4,400.0K for dredging that is fully recovered through vote-netted revenue.Page 28www.ccg-gcc.gc.ca

Marine Communications and Traffic ServicesOngoing ServicesThe Marine Communications and Traffic Services (MCTS) program provides marinedistress and safety communications, conducts vessel screenings, regulates vessel trafficmovement and provides information systems and public correspondence on a 24/7 basis.Through the MCTS program, search and rescue responders have increased knowledge ofpersons or vessels in distress, mariners at risk have greater opportunity to be detectedand CCG has enhanced information on vessel transit for maritime security domainawareness. MCTS improves the safety of life at sea, the efficient movement of shipping inwaterways and the provision of essential information to mariners.The MCTS program is delivered through a network of 22 MCTS centres and supportingremote sites (radio towers, radar sites, etc.).In 2006-2007, MCTS… Completed the installation, training and commissioningof the Global Maritime Distress and Safety System(GMDSS) VHF/DSC service in the St. Lawrence River upto Montreal Developed an Operational Statement of Requirementsfor the Vessel Traffic Management Information Systems(VTMIS) national project Completed a review of the MCTS Staffing Standard forMCTS Officers (operational) positionswww.ccg-gcc.gc.ca Page 29

Canadian Coast Guard Business Plan 2007-2010Expected Result*• Minimized number and severity ofmaritime incidents with human, propertyand environmental consequences• Efficient movement of shippingPerformance Indicator*• Number of incidents detected; shippingaccidents — collisions, groundings andstrikings• Vessel movements per incident* CCG performance information is under review.Table 5: 2007-2008 Resource Profile, Marine Communications and Traffic Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador5,306.6 899.4 6,205.9Maritimes 5,550.9 742.1 6,293.0Quebec 6,177.2 545.0 6,722.2Central and Arctic* 4,409.7 1,868.6 6,278.3Pacific** 9,003.3 1,719.0 10,722.4National Programs*** 343.0 1,026.7 1,369.7NCR 2,690.0 1,543.1 4,233.1Total 33,480.7 8,343.9 41,824.7Ship Support 396.5 89.6 486.1* Central and Arctic Region O&M resources are higher than those in the other regions because of the Northernhousing allowance and travel costs to the North.** Pacific Region salary dollars are higher because of the need to staff more MCTSOs in response to theregion’s marine traffic volume.*** National Programs consists of $1,369.7K in the Automatic Identification System project.Key InitiativeNAVAREAsA NAVAREA is a geographical sea area designated to co-ordinate the transmission ofmarine safety information. NAVAREAs have been established to cover all the Earth’s seaareas except, until now, the polar regions. In 2007-2008, through enhanced CCGoperations in the North, Canada is to manage two of the five new NAVAREAs in the Arctic.One of these is to be in the Western Arctic, a second in the Eastern Arctic. In addition toproviding safety information to mariners, contributing to safe transportation and helping toprevent pollution, this initiative will have the added benefit of asserting Canadiansovereignty in the North while meeting international commitments.A decision about whether to assume this responsibility for responding to internationalprocesses had to be made quickly; otherwise, another country would have been able totake up the opportunity. CCG has allocated sufficient funding for this activity for this fiscalyear from its planned carry-forward. In the course of the year, it will seek a permanentfunding source for the function. The initiative is expected to cost about $1.9 million overfive years.Page 30www.ccg-gcc.gc.ca

2007-2008CommitmentOngoing ServicesLeadFinalize relevant documentation and implementation issueswith the International Maritime Organization to obtain finalinternational endorsement for Canada to implement GMDSSNAVAREAS in the Arctic.DG, MaritimeServicesReinvestment in the Asset BaseThe Canadian Coast Guard is making substantial investments in assets related to MCTS.There are 14 separate projects under way, most of which are multi-year. For a fulldescription and a complete list of projects, see Annex A. The following table shows onlythe major projects that are new or in the initial stages of start-up.ProjectMCTS CommunicationControl System (CCS)Equipment ReplacementNational Vessel TrafficManagement InformationSystems (VTMIS)PreviousYears2007-20082008-20092009-2010FutureYearsTotal Cost(millions ofdollars)2.4 0.8 12.8 11.1 20.7 47.8— 2.2 1.7 0.7 — 4.6www.ccg-gcc.gc.ca Page 31

Canadian Coast Guard Business Plan 2007-2010Icebreaking ServicesThe Icebreaking program of CCG provides icebreaking and related services to facilitate theinformed, safe and timely movement of maritime traffic through and around ice-coveredCanadian waters for the benefit of industry and communities. This program activityincludes providing ice information and escorting ships through ice-covered waters, freeingbeset vessels in ice, conducting harbour breakouts, providing advice and ice informationand reducing the risk of flooding on the St. Lawrence River through monitoring, preventionand breaking up of ice jams.The Icebreaking program contributes to Arcticsovereignty through the re-supply of Northerncommunities, providing support to othergovernment agencies and organizations inice-infested waters and a visible federalgovernment marine presence in the CanadianNorth. This program is delivered with thesupport of CCG’s operationally capable andready fleet. Every year the Coast Guard has 6icebreakers, including one from Pacific Region,in the Arctic between June and November.In 2006-2007, IcebreakingServices… Implemented the Ice InformationServices National Action Plandeliverables of partnering withTransport Canada (pollution patrol) andCanadian Ice Service (aerial icereconnaissance) using the sameaircraft/personnel and hired andtrained 12 Ice Service Specialists Installed the Icebreaking OperationsData Information System mobileonboard icebreakersIce information is provided according to the IceInformation Service Partnership Agreement(IISPA) with the Canadian Ice Service (CIS) of Environment Canada. Four regionaloffices — located in St. John’s, NL, Dartmouth, NS, Quebec City, QC, and Sarnia, ON —ensure that the ice information is disseminated via various systems such as radio,Internet and fax. These same offices task CCG icebreakers to provide direct services suchas vessel escort and icebreaking for flood control. A zonal approach is used for taskingicebreakers to where they are required, rather than within a single region.Expected Result*• Safe, timely and efficient vessel transitsand movements through ice-infestedwaters• Reduced flooding caused by ice jams(further resulting in less propertydamage and shore erosion)• Enhanced Arctic sovereigntyPerformance Indicator*• Number of vessels damaged by ice• Number of flood control taskings• Number of route assistance and iceinformation requests• Icebreaker availability* CCG performance information is under review.Page 32www.ccg-gcc.gc.ca

Ongoing ServicesTable 6:2007-2008 Resource Profile, Icebreaking Services (thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador62.2 2,045.3 2,107.4Maritimes 91.2 4,584.0 4,675.2Quebec 159.4 3,401.0 3,560.4Central and Arctic 82.0 657.4 739.5Pacific 0.0 238.1 238.1National Programs* 0.0 9,300.0 9,300.0NCR 431.2 249.9 681.1Total 826.0 20,475.7 21,301.7Ship Support 26,581.3 6,580.8 33,162.0* National Programs consists of $9,300.0K for the national agreement with Environment Canada to provide theIce Reconnaissance Service.www.ccg-gcc.gc.ca Page 33

Canadian Coast Guard Business Plan 2007-2010In 2006-2007, SAR Services… Completed 75% of the national SARNeeds Analysis Carried out a comprehensive reviewon the partnering arrangements withthe Canadian Coast Guard Auxiliary(CCGA) and found a better way tomanage that partnershipSearch and Rescue ServicesThe federal Search and Rescue (SAR) Program, led by the Ministerof National Defence, is a co-operative effort by federal, provincial,and municipal governments. CCG’s SAR program, in conjunctionwith the Canadian Coast Guard Auxiliary, leads, delivers andmaintains preparedness for the 5.3 million square kilometremaritime component of the federal SAR system. Through distressmonitoring, communication and search and rescue activities, theCCG SAR program increases the chances of rescue for peoplecaught in dangerous on-water situations. This program is deliveredwith the support of CCG’s operationally capable and ready fleet.The program is delivered through Joint Rescue Co-ordinationCentres (JRCCs) located in Halifax, Trenton and Victoria; theprogram operates under the control of DND and is jointly staffedwith DND and CCG personnel. Additionally, the Coast Guardoperates two Marine Rescue Sub-Centres (MRSCs) (St. John’s andQuebec City) that report to a JRCC. In support of SAR operations,CCG operates a total of 114 multi-tasked vessels, all with SARresponsibilities. This includes 39 lifeboats, 1 ACV (air cushionedvehicle) and 7 primary large patrol vessels multi-tasked to otherprograms. In addition, there are 24 in-shore rescue boats during thesummer season. The Coast Guard is further supported by CCGA,which consists of 4,500 volunteer members using 1,298 vessels.First Officer Leslie Palmer received theCross of Valour, awarded for acts of themost conspicuous courage in circumstancesof extreme peril, for saving the lives of twomen on the shores of Grenville Channel,near Prince Rupert, British Columbia. FirstOfficer Palmer is the first member of theCanadian Coast Guard to receive the Crossof Valour, Canada’s highest civilian honourfor bravery.The Coast Guard co-ordinates about 6,000 maritime incidents ayear. The majority of these calls involve mechanical breakdownsand other situations where lives are not at risk. In an average year,the Coast Guard saves about 2,900 lives; this represents about97% of the lives at risk, and it is one of the best records in theworld. On average, CCGA responds to 25% of all maritime incidents.Expected Result*• Minimized loss of life and injuries topeople at risk in marine incidents• Reduced number and severity of searchand rescue incidentsPerformance Indicator*• Percentage of lives saved relative to livesat risk* CCG performance information is under review.Table 7: 2007-2008 Resource Profile, Search and Rescue Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador1,919.6 4,093.6 6,013.2Maritimes 2,857.4 4,384.7 7,242.1Quebec* 847.8 2,414.8 3,262.6Page 34www.ccg-gcc.gc.ca

Region Salary O&M TotalCentral and Arctic 1,908.2 994.8 2,903.0Pacific 1,557.7 2,236.8 3,794.5National Programs** 0.0 248.9 248.9NCR 1,240.0 904.1 2,144.1Total 10,330.6 15,277.8 25,608.3Ship Support 51,212.6 9,163.9 60,376.5Ongoing Services* In the Québec Region, SAR services are co-delivered with Operational Services; the associated salary dollarsare under the Fleet Operational Readiness sub-activity.** National Programs consists of $248.9K under the New Initiative Fund.Key InitiativesSAR Needs AnalysisThe goals of this project are to assess the SAR program resources needed to respond toincidents in the maritime areas for which Canada has accepted responsibility and tovalidate the existing level of service or propose changes.This comprehensive analysis is expected to identify the demand for maritime SAR servicesand determine an equitable approach to delivering SAR services across Canada.The established levels of service are delivered to different service standards acrossCanada. The SAR needs analysis will review, update and assess all relevant factors (e.g.,traffic, meteorological, incident trends) affecting existing SAR levels of service. A reportwith recommendations will be delivered as part of this initiative. There will beconsultations as part of the Levels of Service initiative (as described on page 7) beforeany decisions are taken on adjustments to the SAR program.2007-2008CommitmentLeadComplete the SAR review and begin consultations as part ofthe Levels of Service Review.DG, MaritimeServicesRenewal of the CCGA Contribution AgreementThe Minister of Fisheries and Oceans maintains a formal Contribution Agreement witheach of the five regional CCGA Associations and the CCGA National Council for a total ofsix agreements. Each Association has operational boundaries consistent with those of theCCG administrative regions, and each is a legal entity separate from the Government ofCanada and CCG. CCGA thus has an arm’s length relationship with CCG.The five-year Contribution Agreements specify the conditions under which CCGA membersare reimbursed when called upon to provide assistance to CCG, as well as the level ofadministrative and operational support to be provided by CCG.The current Contribution Agreement has been extended up to a total of $4.9 million forthe 2007-2008 fiscal year under the authority of the Minister. During 2007-2008, theCoast Guard will complete the process for renewing these Contribution Agreements.www.ccg-gcc.gc.ca Page 35

Canadian Coast Guard Business Plan 2007-20102007-2008CommitmentLeadRenew the CCGA Contribution AgreementsDG, MaritimeServicesPage 36www.ccg-gcc.gc.ca

Ongoing ServicesEnvironmental Response ServicesJohn Butler, AssistantCommissioner, was awardedthe 2006 APEX partnershipaward because he hasdevoted considerable timeand energy to buildinginnovative alliances to protectthe marine environment,enhance inter-agencypreparedness to deal withmarine crises and develop thegovernment’s marinecapacity.CCG is the lead federal agency for ship-source oil-spill responsethat mitigates marine pollution and oil spills in Canadian waters,and other countries under international agreement. Following thenotification of a spill, CCG monitors the effectiveness of theprivate-sector response, assumes control of the incident ifnecessary or directly uses CCG resources such as vessels andother specialized pollution countermeasures equipment that areheld in reserve to assist or respond to those spills when thepolluter is unknown, unwilling or unable to respond.Environmental Response Services, through preparedness andresponse, contribute to decreasing the environmental, economicand public safety impacts of marine spills; increase awareness;and demonstrate due diligence by the Canadian and globalmarine community to prevent pollution. This program isdelivered with the support of CCG’s operationally capable andready fleet.The program has approximately 80 response personnel andstrategically placed equipment depots. CCG EnvironmentalResponse maintains duty officers 24/7 in all regions and onaverage deals with over 1,200 reported incidents a year.In 2006-2007, Environmental Response Services… Finalized the Environmental Response Management Systemand piloted the first course Developed the M/V Brigadier General Zalinski action plan todeal with the 1946 wreck located in the Grenville ChannelExpected Result*• Minimized adverse impacts of marinepollution incidentsPerformance Indicator*• Effectiveness of response to number ofspills* CCG performance information is under review.www.ccg-gcc.gc.ca Page 37

Canadian Coast Guard Business Plan 2007-2010Table 8: 2007-2008 Resource Profile, Environmental Response Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador959.3 513.6 1,472.9Maritimes 1,021.3 348.9 1,370.2Quebec 787.6 467.2 1,254.8Central and Arctic* 1,272.0 792.2 2,064.2Pacific 922.3 663.7 1,586.0National Programs** 0.0 60.0 60.0NCR 647.0 467.0 1,114.0Total 5,609.5 3,312.7 8,922.2Ship Support 349.8 74.2 423.9* Central and Arctic Region has a higher salary budget than the other regions because its organization is slightlylarger to cover the services provided in the Arctic. This cost also includes isolated post allowances that are notpaid in other regions.** National Programs consists of $60.0K in research and development.Key InitiativesCCG Environmental Response ReviewDomestic and international obligations require Canada to maintain considerablepreparedness capacity for domestic and potential international response and to serve asa strategic reserve for industry capability south of 60 degrees latitude. However, thecurrent and future ability to deliver on these statutory obligations is questionable,particularly in the case of multiple spills or situations where clean-up might take three tofour months. To ensure an effective, long-term Environmental Response program, theAgency is reviewing the National Environmental Response Strategy, including arejuvenated training and exercise program plan and an evaluation of current capacity. Inthe shorter term, the review will identify what operational changes are requiredimmediately to mitigate increasing risk through infrastructure investment and deploymentof first-response systems to support the Coast Guard’s initial response to an incident.This initiative is expected to ensure that the Canadian Coast Guard enhances its efficacyas the lead federal Agency for managing the response to marine pollution incidents.2007-2008CommitmentLeadReview the National Environmental Response StrategyDG, MaritimeServicesPage 38www.ccg-gcc.gc.ca

Ongoing ServicesBrigadier General M.G. ZalinskiOver the next two years, CCG will play a key role in addressing an oil-pollution threatposed by the wreck of the Brigadier General M.G. Zalinski, a U.S. vessel that sank in theGrenville Channel in British Columbia in September 1946, entombing a cargo of munitionsand an estimated 700 tonnes of Bunker C fuel. The wreck, which lay largely forgotten,began leaking the fuel in 2003. Remedial action has been challenged by the presence ofmunitions; pending implementation of a formal action plan, CCG will continue to monitorthe site commensurate with the preliminary appreciation of risks.2007-2008CommitmentLeadConduct an assessment and develop a risk-based action planto deal with the matter.2008-2009Implement the plan, subject to funding availability.DG, MaritimeServicesDG, MaritimeServicesCanada Shipping Act (CSA) 2001Coast Guard will meet with Transport Canada on issues arising from the formalpromulgation of the Canada Shipping Act (CSA) 2001, which will occur on completion ofTransport Canada’s regulatory framework, early in the planning period. Specific positionswithin Environmental Response and Marine Communications and Traffic Services will beexamined to ensure that functional specialists have the appropriate training, powers andtools to deliver pollution prevention and response services.2007-2008CommitmentLeadEnsure functional specialists have the training, authoritiesand tools needed to deliver CCG’s pollution prevention orresponse activities on the formal promulgation of CSA 2001.DG, MaritimeServiceswww.ccg-gcc.gc.ca Page 39

Ongoing ServicesProjectAutomatic IdentificationSystem (AIS)/ Long RangeIdentification and TrackingSystem(LRIT)PreviousYears2007-20082008-20092009-2010FutureYearsTotal Cost(millions ofdollars)3.0 14.0 3.0 — — 20.0Stephen Stringer, Commissioner's Commendation recipient. Mr.Stringer was nominated for a Commissioner's Commendationbecause he has completed significant work on Maritime Securitysince 9/11 in support of both CCG and broad government objectives.www.ccg-gcc.gc.ca Page 41

Canadian Coast Guard Business Plan 2007-2010Coast Guard Fleet Operational ReadinessThe Coast Guard Fleet Operational Readiness program involves the provision of safe,reliable, available and operationally capable ships and helicopters with competent andprofessional crews ready to respond to on-water and marine-related needs. This programactivity involves fleet management, fleet acquisition, refit and maintenance, and theprovision of fleet personnel. Through the Coast Guard Fleet Operational Readinessprogram, the CCG Agency will ensure that the Government of Canada’s civilian fleet meetsthe current and future needs of Canadians and the Government of Canada.In addition to its support to most Coast Guardprograms and to the Science and FisheriesEnforcement programs of DFO, the CCG fleetdelivers civilian marine services on behalf ofother federal government departments or insupport of other federal agencies andorganizations in the achievement of their ownspecific maritime priorities. These clientsinclude the Department of National Defence,Environment Canada, the Royal CanadianMounted Police, the Department of ForeignAffairs, Transport Canada, Natural ResourcesCanada, and the Natural Sciences andEngineering Research Council of Canada.Expected Result*• Client services delivered in a safe,efficient and effective mannerIn 2006-2007, Fleet Services… Through CCGS Henry Larsen, played a major role inOperation LANCASTER, a domestic Canadian sovereigntyoperation led by DND that took place August 12-25,2006, in Canada’s Eastern Arctic Implemented several changes in procedures, equipmentand training to improve helicopter safety for employees Implemented short-term planning improvements such asadvancing the planning schedule to better reflect thebudgetary cycle, including vessel refit as a program, andadopting a national program (client focus)Performance Indicator*• Safe delivery — number, type and levelof risk of hazardous occurrences;number and nature of non-conformities• Timely delivery — actual CCG and clientdelays• Effective delivery — actual servicedelivery percentage* CCG performance information is under review.Figure 1: 2007-2008 Planned Vessel Use by Program (in non-weighted days)CCG ProgramsCCG Programs63%63%DFO ScienceDFO Science16%16%FAM & NAFOFAM & NAFO15%15%OGDsOGDs3%3%Maritime SecurityMaritime Security2%2%0 5,000 10,000 15,000 20,000 25,0000 5,000 10,000 15,000 20,000 25,000Non-weighted DaysNon-weighted DaysPage 42www.ccg-gcc.gc.ca

Ongoing ServicesTable 10: 2007-2008 Resource Profile, Coast Guard Fleet Operational Readiness(thousands of dollars)Region Salary O&M Total*Newfoundland andLabrador36,062.1 13,476.0 49,538.1Maritimes 37,955.9 13,121.0 51,076.8Quebec 27,886.7 9,086.7 36,973.4Central and Arctic 18,966.7 4,799.6 23,766.3Pacific 34,013.9 12,302.6 46,316.5National Programs** 0.0 5,000.0 5,000.0NCR 6,676.7 2,646.1 9,322.8Total 161,562.0 60,432.0 221,994.0* Includes all ship costs, excluding fuel.** National Programs consists of $5,000.0K for the Small Craft Acquisition Plan.2007-2008 Distribution of Vessels and Helicopters in Operation by Regionwww.ccg-gcc.gc.ca Page 43

Canadian Coast Guard Business Plan 2007-2010Figure 2: 2007-2008 Planned Vessel Costs by ProgramFAM & NAFOFAM & NAFO10.1%10.1%DFO ScienceDFO Science14.0%14.0%OGDsOGDs10.9%10.9%CCG ProgramsCCG Programs65.0%65.0%MCTSMCTS0.3%0.3%Aids to NavigationAids to Navigation12.8%12.8%Maritime SecurityMaritime Security1.5%1.5%IcebreakingIcebreaking20.6%20.6%Search andSearch andRescue/ERRescue/ER29.8%29.8%ScienceThe CCG fleet supports the at-sea scientific vessel and helicopter needs of a variety ofgovernment departments and agencies including: DFO Science Program Canadian Hydrographic Service (CHS) Environment Canada Natural Resources Canada (NRCan) Research supported by the Natural Sciences and Engineering Research Council ofCanada (NSERC)Arctic ScienceIn addition to the scheduled science program support provided by the fleet, CCG providessupport to science on an opportunity basis in the Arctic. For example, the CCG fleetdelivered approximately 110 days of opportunity-based science in 2005-2006 and 150days in 2004-2005 in the Arctic. This opportunity-based support will be minimal for thenext two to three years, as icebreaker schedules are heavily committed to support theInternational Polar Year and United Nations Convention on the Law of the Sea missions(see below).United Nations Convention on the Law of the Sea and International Polar YearFor the next three years, the Canadian Coast Guard is providing icebreaker support togovernmental science priorities related to Canada's obligations regarding seabed mappingassociated with the United Nations Convention on the Law of the Sea (UNCLOS) andInternational Polar Year (IPY) — a rare opportunity for international co-operation inscientific research in the Arctic and Antarctic regions. Canadian IPY research will focus onthe areas' climate-change impacts and adaptations and on the health and quality of life ofNorthern Canadians.Page 44www.ccg-gcc.gc.ca

Ongoing ServicesTable 11: 2007-2008 Fleet Operations Plan, ScienceNational DFO Science SummaryOperationalDaysHoursTotal Cost*(thousands ofdollars)Newfoundland and LabradorVessels 688 10,000.1Helicopters 30 59.6MaritimesVessels 1272 12,882.0Helicopters 123 353.3QuébecVessels 1,534 2,321.6Helicopters 152 377.2Central and ArcticVessels 686 1,421.5Helicopters 0 0PacificVessels 1,106 8,949.5Helicopters 0 0National TotalVessels 5,286 35,574.7Helicopters 305 790.1* Includes the fixed portion of Natural Resources Canada and Environment Canada costs in the Central andArctic Region.Fisheries and Aquaculture Management — Conservation andProtectionNorthwest Atlantic Fisheries Organization (NAFO)Canada has the right and responsibility to monitor and inspect the vessels of other stateparties to ensure compliance with the rules of fisheries conventions of which Canada is amember, such as the Northwest Atlantic Fisheries Organization (NAFO). Inspections offishing activities in the NAFO Regulatory Area (NRA) are carried out by fishery officersacting as NAFO inspectors operating primarily from Canadian Coast Guard vessels. CCGwill provide the operational days outlined in the table below, with the objective ofmaintaining two vessels in the NRA year-round.Seal HuntAlthough CCG has provided services in support of the annual seal hunt, this fiscal yearmarks the first year this requirement has been incorporated into the National FleetOperations Plan. Monitoring of the annual seal hunt is normally supported by CCGicebreakers and helicopters in fishing zones 4S/4T/4R (Gulf) and south western 2J andnorth western 3K (the Front).www.ccg-gcc.gc.ca Page 45

Canadian Coast Guard Business Plan 2007-2010Fisheries EnforcementConservation and Protection activities are designed to ensure compliance with thelegislation, policies and fishing plans relating to the conservation and sustainable use ofthe resource. Patrol vessels are required for patrolling closed and boundary areas, and forconducting inspections at sea to ensure compliance with all of the regulations designed toensure orderly fisheries.Table 12: 2007-2008 Fleet Operations Plan, Fisheries and Aquaculture Management(FAM)National FAM SummaryOperationalDaysHoursTotal Cost(thousands ofdollars)Newfoundland and Labrador*Vessels 400 4,643.7Vessels — NAFO 488 6,965.6Helicopters 100 353.3MaritimesVessels 1,166 3,696.1Helicopters 0 0QuébecVessels 503 531.9Helicopters 0 0Central and ArcticVessels 676 2,321.3Helicopters 50 120.7PacificVessels 1,861 4,423.8Helicopters 0 0National TotalVessels 4,606 15,616.8Vessels — NAFO 488 6,965.5Helicopters 150 473.9* Taken together, the days planned for Conservation and Protection (C&P) and NAFO in the Newfoundland andLabrador Region provide year-round two-ship coverage in the NRA.Key InitiativesFleet Management ImprovementsImprovements in fleet management will continue to address long-standing issuesregarding organizational effectiveness and connectivity to regions and clients. RegionalFleet Management Organizational Structures have been standardized across the countryand are being implemented this fiscal year. Headquarters (HQ) fleet management is beingrationalized to ensure competencies are in place to effectively manage the comingdemographic challenges and anticipated increased competition for scarce qualifiedPage 46www.ccg-gcc.gc.ca

Ongoing Servicesmaritime personnel. Planning and reportingfunctions are being clarified and strengthened; atthe same time, improvements are being made toensure financial frameworks are in place to managespecially controlled fleet budget items, including thecosting and charging functions and relationshipswith fleet clients.Fleet Human Resources ManagementOf critical importance to the Coast Guard fleet is theeffectiveness and well-being of its officers andcrews. CCG is undertaking many human resourcesrelatedactivities designed to have a positive impacton the operational readiness of its fleet, whichfaces particular challenges in terms of maintainingseagoing personnel qualification and retention.Edward CamilleriMr. Camilleri was awarded aCommissioner's Commendation for hisoutstanding work over the past three yearson the Phase II 47-foot motor lifeboatconstruction project.Primacy of operations and operational readiness mean that the safety of our seagoingpersonnel, procedures and orders are in place for occupational health and safety, incidentmanagement, and contingency human resource planning. Operations at sea by their verynature require well-trained crews and well-maintained equipment, coupled with sounddecision-making in support of successful operations and service to our program clients.Information ManagementThe information systems used to plan operations with clients and those used to capture,collate and measure performance data are essential to sound management of the CoastGuard fleet. Modifications to these systems are being planned to incorporate newprograms such as CCG support to Maritime Security. In addition, clients are demandingadditional in-year information reports; this will need to be addressed in the new fiscalyear. Furthermore, the transfer of financial responsibilities to the Fleet Executive Boardwill have a major impact on the existing fleet information systems. The demand forinformation related to the costs associated with the use of specific fleet assetsunderlines the need to develop new information systems and modify older applications. Ofparticular importance is the need to monitor fuel consumption and expenditures and crewsalary cost allocations.Ultimately, the purpose of enhancing fleet systems is to maintain or improve theavailability, quality, reliability and integrity of information. Better performance informationshould result in improved management and better use of fleet assets (people, ships andhelicopters); it should also result in clients receiving better quality data on the use ofvessels in program delivery.Redeployment of Heavy IcebreakersOver the next two years, CCG is redeploying two of its heavy icebreakers, CCGS Terry Foxand CCGS Louis S. St-Laurent, from the Dartmouth base in the Maritimes Region to,respectively, St. John’s and Argentia in the Newfoundland and Labrador Region. The CoastGuard has taken this decision in keeping with the principle that as an Agency, it mustoperate more like a business, and resources and assets are to be used as effectively aspossible to meet increasing client demands while spending taxpayers’ dollars wisely.These transfers are being made to avoid the significant additional infrastructure costsassociated with keeping the vessels in the Maritimes Region, given that there is nooperational need to base the two vessels in the Halifax area and that sufficientinfrastructure exists in Newfoundland to accommodate them. Investments would havewww.ccg-gcc.gc.ca Page 47

Canadian Coast Guard Business Plan 2007-2010included not only the initial capital investment but also the ongoing costs that come withmaintaining any infrastructure. CCG will continue to pay for the crew changes during thefive-year transition period. Given that the vessels are being redeployed over the next twoyears, a period of co-crewing between the two regions will occur. Over time, as the existingcrews leave, transfer to other vessels or choose to move, crew members from the twoicebreakers will be reassigned a homeport. It must be stressed that no indeterminateemployees currently assigned to either vessel will lose their job or be forced to move. ARedeployment Transition Working Group has already been established.Reinvestment in the Asset BaseIn the past few years, the government has made significant investments in the fleet assetbase. As it acquires new vessels, the Coast Guard continues to invest in its existing fleetto optimize its availability and reliability. Twelve fleet long-term capital projects funded for2007-2008 for a total of $34 million are currently under way (including replacements andvessel life extensions). Seven other long-term capital projects are waiting to begin in2007-2008 should funding become available. The reinvestment in the Coast Guard’s fleettotals $122.1 million for fiscal year 2007-2008. For a full description and a complete listof projects, see Annex B.Page 48www.ccg-gcc.gc.ca

Ongoing ServicesLifecycle Asset Management ServicesThe Coast Guard Lifecycle Asset Management Services program involves the effectivelifecycle management of the CCG asset base. The program provides lifecycle engineering,acquisition, maintenance and disposal services in support of CCG’s non-fleet assets andlifecycle engineering in support of CCG’s fleet assets (with vessel acquisition andmaintenance funded through the Fleet Operational Readiness program). This programactivity ensures that asset capability, reliability, availability and value are satisfied atminimum lifecycle cost, thereby improving the efficiency of CCG program delivery toCanadians.CCG manages a total of approximately$5.6 billion (estimated replacement value) In 2006-2007, Lifecycle Assetin physical assets. The estimatedManagement Services…replacement value of the fleet assets Completed the ITS national organization design(including major vessels, small craft andto the lead hand/foreman levelhelicopters) is $4 billion, while that Worked with multiple internationalof the equipmentorganizations to pave the way for theand other moveable assets isimplementation of the Long Rangeapproximately $1.6 billion. These assetsIdentification and Tracking (LRIT) of ships; theRegulation, Performance Standards andrange from large icebreakers and radioSpecifications for LRIT have now been adoptedtowers to electronic communication andnavigation systems to small, hand-heldradios and fixed and floating aids to navigation.Asset management services are delivered by approximately 1,056 engineers, technicians,technologists, trades people, managers and support staff from over 70 workshops andoffices across five regions and national headquarters.Expected Result*• CCG Assets are available, reliable and fitfor intended purpose at minimum lifecycle costPerformance Indicator*• Condition of assets (index)• Reliability of assets (index)• Re-investment rate* CCG performance information is under review.www.ccg-gcc.gc.ca Page 49

Canadian Coast Guard Business Plan 2007-2010Table 13: 2007-2008 Resource Profile, Lifecycle Asset Management Services(thousands of dollars)Region Salary O&M TotalNewfoundland andLabrador9,378.7 2,612.2 11,990.9Maritimes 11,814.2 3,543.0 15,357.1Quebec 10,444.2 7,037.5 17,481.7Central and Arctic 10,113.1 3,459.9 13,573.0Pacific 11,680.0 5,058.7 16,738.8National Programs 0.0 0.0 0.0NCR* 6,963.6 7,068.4 14,032.0Total 60,393.8 28,779.7 89,173.5* Includes funding for the INNAV program that will be transferred to Quebec. This transfer was not complete atthe time this business plan was published because the amounts had not been finalized. The NCR is alsoresponsible for the National Engineering function, as well as for the lifecycle management of several nationallyused CCG information systems.Key InitiativesImproved Maintenance of Existing Shore-based InfrastructureAs it does with its seagoing vessels, the Canadian Coast Guard will continuously improvemaintenance of its shore-based physical assets in line with government expectations ofasset capability, reliability, availability and value at minimum lifecycle cost. Of particularinterest over the next three years will be gaining an understanding of the condition of keyassets through site-condition assessments to prioritize and deliver maintenance plans,practices and documentation for the sites most in need of maintenance.In addition, CCG will be exploring the concept of establishing Centres of EngineeringExpertise within its regions to leverage best practices in design, engineering andmaintenance. Two pilot projects will be run and assessed for potential broader applicationover the next two years.2007-2008CommitmentLeadEstablish Centres of Engineering Expertise pilot projects ineach of the Québec and Pacific regions.Ensure that standardized maintenance documentation isacquired with the purchase of all new CCG shore-basedassets.Develop the plan to assess high-risk remote navigation andcommunication sites; based on the plan, produce aninventory with the assessment of prioritized actions that maybe required.Develop the plan for the development of maintenance plansfor shore-based infrastructure.DG, ITSDG, ITSDG, ITSDG, ITSPage 50www.ccg-gcc.gc.ca

Reinvestment in the Asset BaseOngoing ServicesThe expenditure forecast for reinvestment in the CCG asset base is $164 million for fiscalyear 2007-2008.The average age and deteriorated physical condition of the asset base is diminishingreliability and performance, and is creating conditions for escalating year-over-yearoperating and maintenance costs. Effective cost management is further strained by theincreasing need to manage both old and new assets, as old technologies are retainedeven while new technologies are adopted.The goal of the Coast Guard reinvestment strategy is to refurbish and replace existingassets that have deteriorated over time. In addition to ongoing reference levels expressedin the Long-Term Capital Plan (LTCP) for projects to replace or extend the life of criticalassets, funding support was obtained through the 2003 Federal Budget, which providedan additional $47.3 million in annual funding for asset refurbishment managed asNational Capital Spending Plan (NCSP) projects.The results of this reinvestment strategy are expected to be capital investment plans thatare strategically focused on bringing the asset base back to its original baseline operatingcondition. Improving the condition of capital assets will have a direct impact on the qualityand extent of CCG service delivery and associated ongoing operating and maintenancecosts. The Coast Guard will also be consulting with the Treasury Board Secretariat and theDepartment of Finance on the feasibility of expanding its capital carry-forward authority,from 5% to 15%, to facilitate the management of capital funds on a multi-year basis andto ensure that resources are applied to the highest priorities in accordance with theLong-Term Capital Plan.See Annex A for more information.www.ccg-gcc.gc.ca Page 51

In 2006-2007, the Canadian CoastGuard College… Graduated 50 officer cadets (including 15foreign nationals) and 21 marinecommunications and traffic officers Provided other courses to 231 Coast GuardpersonnelCanadian Coast Guard Business Plan 2007-2010Canadian Coast Guard CollegeOperating as CCG’s national, bilingual, degree-conferring traininginstitution, the Canadian Coast Guard College (CCGC) educatesthe world-class marine professionals necessary to deliver themandated programs of CCG in support of its mission andmandate in marine safety, security and environmental protection.The College teaching staff comprises 37 instructors, and theCollege offers four training programs: the Coast Guard OfficerTraining program, the Marine Communications and TrafficServices Officer program, the marine maintenance andequipment training and the professional development program.Given that trainees are housed on campus, the College has staff dedicated to hostelling,property management, academic support and general administration and management ofthe institution.• TBDExpected Result*• TBDPerformance Indicator** CCG performance information is under review.Table 14: 2007-2008 Resource Profile, Canadian Coast Guard College(thousands of dollars)Salary O&M Total6,709.7 6,338.1 13,047.8In 2007-2008, the Coast Guard College will continue its renewal process to enable thedelivery of its mandate as the CCG training authority.2007-2008CommitmentLeadTransfer the recruitment and Officer-cadet Managementprograms from fleet Headquarters to the College.Develop strategies to recruit high-quality instructors for allprograms.Develop a plan to meet the training needs of the Agency inconjunction with the findings of the CCG HR Plan.Executive Director,CCG CollegeExecutive Director,CCG CollegeExecutive Director,CCG CollegePage 52www.ccg-gcc.gc.ca

INTERNATIONAL ACTIVITIESOngoing ServicesCCG supports the Government of Canada’s priority to build stronger multilateral andbilateral relationships with our international friends and allies. In particular, CCG has acomprehensive working partnership with the United States Coast Guard through jointexercises, operations, planning and delivery of services to mutual clients andstakeholders. An annual Canada--United States Coast Guard Summit is held to provide thenational leadership necessary to guide partnership. CCG leads a multi-departmental teamat the North Pacific Coast Guard Forum, a sixnationorganization working to ensure safe andsecure waters in the North Pacific region throughimproved multilateral information sharing.2006-2007 Accomplishments CCG hosted the annual Canada - UnitedStates Cost Guard Summit in Halifax. CCG successfully led, on behalf of theGovernment of Canada, multi-departmentalteams to the North Pacific Coast GuardForum March Experts Meeting and OctoberSummit Meeting hosted by China. CCG successfully participated in annualCanada - U.S. Contingency Plan Search andRescue (SAR) joint exercises andinternational SAR skills competitions.CCG helps advance Canada’s interests by workingco-operatively with international organizations todevelop international rules, regulations, policy andtechnology for safe and secure transportation onthe world’s waterways. CCG is a member of thegoverning bodies for several global maritimeorganizations, including the United Nation’sInternational Maritime Organization (IMO), theInternational Association of Lighthouse Authorities(IALA) and the International Navigation Association(PIANC). The Coast Guard also regularlyco-ordinates and shares best practices with the Coast Guards of other countries.Among a number of IMO committees and working groups, CCG contributes to work on aLong Range Identification and Tracking (LRIT) regulation and technical solution andprovides representation on the Global Maritime Distress Safety System Working Group.Historically a valued contributor to IALA, CCG helps develop and recommend technicalstandards for aids to navigation and automated identification systems, both subject areasvery relevant to CCG domestic work. CCG represents Canada at PIANC Council and serveson PIANC working groups. PIANC provides guidance for designers and engineers in thefield of inland, maritime and recreational navigation and environmental issues.Commissioner George Da Pont with his counterparts from the People's Republic of China, Japan, Republic ofKorea, Russia and the United States at the signing of the Sanya Declaration, a joint agreement to enhanceco-operation between member countries of the North Pacific Coast Guard Forum. (2006)www.ccg-gcc.gc.ca Page 53

Canadian Coast Guard Business Plan 2007-2010SECTION 4: CORPORATE RISK AND MITIGATIONCCG is committed to incorporating risk into its priority-setting and decision-makingprocesses. In 2006, CCG undertook an exercise to identify the key risk areas that couldaffect the achievement of its objectives. The following table provides a description ofareas posing the highest risk to the Coast Guard and identifies the initiatives in this planthat serve to mitigate these risks.CCG Corporate Risk ResponseRisk Potential Risk Event Risk ResponseHuman ResourcesInvestment in AssetBaseInformation forDecision-makingThird-party RelianceBecause of shifting demographicsand resulting competitiveness in thelabour market for skilled workers,there is a risk that CCG will beunable to sustain a sufficientlyrepresentative and capableworkforce.Because of insufficient investment inits asset base in past years, theincreasing maintenancerequirements and costs of agingexisting vessels, and governmentconstraints on how capital ismanaged, there is a risk that CCGwill be unable to recapitalize andmeet its needs in a timely manner.Because of the lack of a cohesiveperformance managementframework, related processes andconsistent treatment of data, there isa risk that information will beinsufficient for effective decisionmaking,including that dictatingbusiness prioritization and resourceallocation to core services.Because of a heavy reliance onshared departmental corporateservices (e.g., HR, Finance), andreliance on the co-deliverers of CCGservices (e.g., DND, TransportCanada, and the Canadian CoastGuard Auxiliary), there is a risk thatCCG will be unable to fully meet itsaccountabilities if such partners areunable to deliver on their agreeduponcontributions.PRIORITY 4• Integrated Technical Services StrategyProjectPRIORITY 5• Enhanced Human Resources andSuccession Planning• Standard Regional Organizations• Development of People• Address Operational IssuesPRIORITY 3• Procurement of New Vessels• Improve Maintenance of the ExistingFleet• Fleet Operational ReadinessPRIORITY 1• Strengthening ManagementPRIORITY 3• Fleet Operational ReadinessPRIORITY 4• Integrated Technical Services StrategyProject• Issues related to common servicesprovided to CCG by DFO are not uniqueto CCG. The Departmental ManagementCommittee is taking a departmentalapproach to this issue. Options arebeing considered for both shorter andlonger term approaches to addressissues of capacity in DFO's corporateservices.• Renewal of the CCG AuxiliaryContribution Agreement.• Communication and collaboration withfederal government clients andpartners will be strengthened throughtheir participation on a CCG StrategicAdvisory Council.Page 54www.ccg-gcc.gc.ca

SECTION 5: MANAGEMENT AGENDAManagement AgendaThe Coast Guard has a clear management agenda that is consistent with the broader Management Accountability Framework (MAF) that applies toall departments and agencies (http://www.tbs-sct.gc.ca/maf-crg/documents/booklet-livret/text-texte_e.asp#g1). The following chart lists initiativesand activities that the Coast Guard is undertaking over the next three years that relate to the 10 elements of the MAF.Governance andStrategicDirections• Implement proposedProgram ActivityArchitecture (PAA)• Regular use ofeffective advisorystructures• Manage activitiesbased on the CCGAgency BusinessPlan• Development of CCGPerformanceManagementFramework• Support to GoCMaritime SecurityAgenda — supportto DND- andRCMP-ledimplementation ofMSOCsPublic Service Values• Stronger CCG identity through common internal communications material and uniform guidelines• Commemorative memorial at CCG College to honour employees who have lost their lives in the course of dutyPolicy and Programs• Address commitments in the DFOSustainable Development Strategy(SDS)• Provide the government withMarine Services Fees optionsRisk Management• CCG Corporate Risk Frameworkconsulted in business planningprocess and priorities that mitigaterisks identified in the BusinessPlanPeople• National CCG HR plan — includesstrategies for succession planningand Employment Equity for criticalgroups• Regular “Notes from the Desk ofthe Commissioner” and “TownHalls” for all staff• Regular Union-ManagementConsultation Committee meetingsStewardship• Complete the ITS Strategy Projectand further implementation ofasset lifecycle management• New vessel procurementsmanaged through the CCG MajorCrown Projects Directorate• Implement new financial codingstructure based on the PAA• Implement Fleet OperationalReadiness concept• Pursuit of new capital flexibilitiesand refit authorityCitizen-focused Service• Renewal of the CCG AuxiliaryContribution Agreement• Improve service delivery through Aidsto Navigation of the 21st Century(AToN21)• Consultations on developing clear,transparent Levels of Service (LOS)• SAR Needs Analysis• Review national environmentalresponse strategy• Renewal of CCG internet presenceAccountability• Integrate Business Plan prioritiesand commitments into managementAccountability Accords• Develop a standard performancereview systemResults andPerformance• Reporting onBusiness Plancommitments atmid-year andyear-end• Introduction of FleetAnnual ReportLearning, Innovation and Change Management• CCG national training strategy based on best practices• Integrate Public Service Employee Survey (PSES) Action Plan into the CCG Agency Business Plan• Integrate a high-level HR Plan with the CCG Agency Business Planwww.ccg-gcc.gc.ca Page 55

Canadian Coast Guard Business Plan 2007-2010SECTION 6: WORKFORCECCG relies on a diverse, professional and dedicated workforce to deliver on its objectiveof safe and accessible waterways. This section provides information on the compositionof our workforce and workplace. Demographic information is as of September 30, 2006.Regional DistributionCCG has 4,645 employees in five regions, at the CCG College and at headquarters.Figure 3: Regional Distribution, CCG EmployeesMaritimesMaritimesPacificPacificNfldNfldQuebecQuebecC&AC&ANCRNCRCollegeCollege6%6%3%3%22%22%21%21%19%19%17%17%12%12%0% 5% 10% 15% 20% 25%0% 5% 10% 15% 20% 25%Percentage of EmployeesPercentage of EmployeesLanguage and DiversityEnglish is the first official language of 79% of CCGemployees; French is the first official language of theremaining 21%.Of CCG’s employees, 24% — or 1,112 employees —have self-identified as part of an employment equitygroup. To reflect the availability of these groups in theCanadian labour market, this proportion would need tobe 30%. The largest gap between representation withinCCG and labour market availability is among women,followed by visible minorities, Aboriginal peoples andpersons with disabilities.Lynda Hendrickson, Commissioner's Commendation Recipient. As a crewing officer,she was the catalyst of the Tseycum First Nation Work Experience Project Pilot,which provided work experience both ashore and at sea for First Nationsparticipants. Successful candidates were added to the inventory and introduced tothe CCG fleet when positions became available. The second First Nation WorkExperience Program is currently under way.Page 56www.ccg-gcc.gc.ca

EmploymentEquity GroupRepresentationAvailabilityNumber Percentage Number PercentageWorkforceGap(Number)Women 732 16.7 947 21.7 -215VisibleMinoritiesAboriginalPeoplesPersons withDisabilities101 2.3 145 3.3 -44112 2.6 132 3.0 -20167 3.8 175 4.0 -8Employment TenureCCG employs 4,056 indeterminate employees and 589 determinate employees. SinceSeptember 2004, the proportion of determinate and indeterminate employees hasremained consistent, varying within a 6% range.NumberPercentageIndeterminate 4,056 87.3Indeterminate 3,771 81.2Seasonal 285 6.1Determinate 589 12.7Term >3 months 316 6.8Term < 3 months 106 2.3Casual 141 3.0Student 26 0.6Total 4,645 100.0Occupational Group DistributionThe CCG workforce encompasses administrative, professional and operational staff. Over60% of CCG employees work in areas that provide key services twenty-four hours a day,seven days a week. This includes Ships’ Crew and Ships’ Officers, who work at sea, andMCTS Officers, who provide marine communications and traffic services.Occupational Group Number PercentageShips’ Crew 1,551 33.4Ships’ Officer 913 19.7Radio Operations 372 8.0General Labour and Trades 332 7.1General Technical 315 6.8Electronics Technologists 273 5.9Administrative Services 240 5.2Clerical and Regulatory 212 4.6Lightkeepers 122 2.6www.ccg-gcc.gc.ca Page 57

Canadian Coast Guard Business Plan 2007-2010Occupational Group Number PercentageEngineering and Land Survey 65 1.4Engineering and ScientificSupport 47 1.0Executive Group 37 0.8Other 166 3.6Total 4,645 100Eligibility for RetirementApproximately 50% of CCG employees are between 40 and 54 years of age, and theaverage age of CCG employees is 45. Over the next five years, over 20% of the existingCCG indeterminate workforce will be eligible to retire.Figure 4: Age Distribution, CCG EmployeesAge GroupAge Group45-4945-4950-5450-5440-4440-4455-5955-5935-3935-3925-2925-2930-3430-3460+60+< 25< 25131399776644331616222221210 5 10 15 20 250 5 10 15 20 25Percentage of CCG WorkforcePercentage of CCG WorkforceYear of Eligibility forRetirementNumberPercentage ofIndeterminate WorkforcePercentage of TotalWorkforce2007 128 3.2 2.82008 156 3.8 3.42009 181 4.5 3.92010 212 5.2 4.62011 217 5.4 4.7Total 894 22.0 19.2A significant percentage of the total population of several CCG occupational groups iseligible for retirement between now and 2011. For example, this percentage is 57% withinthe executive group; 40% or higher among lightkeepers, engineer and land surveyors,Page 58www.ccg-gcc.gc.ca

Workforcegeneral labour and trades workers, electrical workers, and engineering and scientificsupport workers; and over 25% for ships’ crew and ships’ officers — or 562 seagoingemployees.Figure 5: Percentage of Occupational Groups Eligible to Retire by 2011Executive GroupExecutive Group5757LightkeepersLightkeepers5252Electrical WorkersElectrical Workers4343Engineering and Scientific SupportEngineering and Scientific Support4343Engineering and Land SurveyEngineering and Land Survey4141General Labour and TradesGeneral Labour and Trades4040OtherOther3737General TechnicalGeneral Technical3333Administrative ServicesAdministrative Services3232Ships' CrewShips' Crew2828Clerical and RegulatoryClerical and Regulatory2727Ships' OfficersShips' Officers2626Radio OperationsRadio Operations242400101020203030404050506060Percentage Eligible to Retire by 2011Percentage Eligible to Retire by 2011Projected DeparturesAttrition projections are based on departures over the past five years and eligibility forretirement. The greatest forecast attrition between now and 2009 will be among seagoingpersonnel, with 59 projected departures (37 Ships’ Crew and 22 Ships’ Officers). Theexecutive group and the administrative services group have attrition rates greater than5%.Occupational GroupProjected Number ofDepartures(2007-2009)TotalWorkforceAttrition Rate(Percentage)Ships’ Crew 37 1,551 2.4Ships’ Officer 22 913 2.4Administrative Services 17 240 7.0Radio Operations 13 372 3.5Electronics Technologists 12 273 4.3Clerical and Regulatory 11 212 5.0General Labour and Trades 10 332 3.0General Technical 10 315 3.3www.ccg-gcc.gc.ca Page 59

Canadian Coast Guard Business Plan 2007-2010Occupational GroupProjected Number ofDepartures(2007-2009)TotalWorkforceAttrition Rate(Percentage)Lightkeepers 5 122 4.5Executive Group 4 37 10.3Engineering and ScientificSupport2 47 3.7Engineering and Land Survey 3 65 4.4Bargaining AgentsCCG has a diversified workforce, and employees are therefore represented by a number ofbargaining agents. Approximately 0.02% of employees are represented by the Associationof Financial Officers; 0.24% by the Canadian Association of Professional Employees; 8%by Canadian Auto Workers Local 2182; 19% by the Canadian Merchant Service Guild(Ships’ Officers); 6% by the International Brotherhood of Electrical Workers; 61% by thePublic Service Alliance of Canada; and 2% by the Professional Institute of the PublicService of Canada.Figure 6: CCG Employee Representation by Bargaining AgentNot affiliatedNot3.73%affiliated3.73%Professional Institute oftheProfessionalPublic ServiceInstituteofofthe PublicCanadaService of2.00%Canada2.00%Canadian Association ofProfessionalCanadian AssociationEmployeesofProfessional0.25%Employees0.25%Association of FinancialAssociationOfficersof Financial0.02%Officers0.02%Canadian Auto WorkersCanadianLocalAuto2182WorkersLocal8.00%21828.00%Canadian MerchantCanadianService GuildMerchantService19.00%Guild19.00%Public Service AlliancePublicofServiceCanadaAlliance61.00%of Canada61.00%InternationalBrotherhoodInternationalofElectricalBrotherhoodWorkersofElectrical6.00%Workers6.00%The 2005 Public Service Employee SurveyThe Public Service Employee Survey (PSES) was conducted throughout CCG in Novemberand December 2005. Results were published in the summer of 2006, and a CCG nationalworking group was established to determine how to respond to the survey findings. Theemployee response rate was similar to that in 2002, at 42%.Page 60www.ccg-gcc.gc.ca

WorkforceIn the fall of 2006, CCG employees were consulted on the results of the survey. Theyidentified five areas in critical need of improvement within CCG as well as suggestedactions: Communication• Increase face-to-face communication with management; establish a central pointof information for general public and media inquiries by improving the CCGInternet website.Learning, training and career development• Develop long-term succession plans, and conduct annual performance appraisals;ensure the fair distribution of training dollars.Retention• Staff vacant positions; offer job shadowing opportunities to foster development,and allow time for knowledge transfer.Workload• Determine an appropriate and realistic workload for every position; improveworkload distribution and set priorities.Leadership• Increase training opportunities for managers to develop their leadership skills;ensure stability by creating a national organizational structure, and establish aclear mandate and direction under the new Special Operating Agency.A national action plan was developed to respond to the results of the survey and to thesubsequent employee consultations.All approved short-term and long-term actions have been integrated in the relevantsections of this business plan and have been specifically linked to PSES.For example, over the next couple of years, CCG will be focusing on the creation andimplementation of national organizational structures. This will help standardize the corecompetencies of our national institution and address some of the leadership concernsraised in the survey.Another of the key initiatives CCG will undertake to retain our workforce is to develop andimplement a national HR plan that will include EE commitments, strategies for therecruitment and succession planning of critical groups, etc.To build and maintain a skilled, knowledgeable and professional workforce, CCG willdevelop a national training strategy, implement a national performance review system andcreate five senior developmental positions, one in each AC office. In fact, each of these isa direct response to recommendations from the employee consultations.www.ccg-gcc.gc.ca Page 61

Canadian Coast Guard Business Plan 2007-2010SECTION 7: FINANCIAL INFORMATIONImprovements to Financial StabilityIn fiscal year 2006-2007, the Coast Guard addressed the issue of financial stabilitythrough a number of initiatives, including the A-Base Review and a new approach tobudget allocation. This new approach was intended to be used as an interim measurewhile the A-base Review identified areas where efficiencies and common practices couldbe implemented to achieve the goal of long-term financial stability. For the most part, thistwo-pronged approach was successful. Nevertheless, moving toward long-term financialstability will require change over the planning period to ensure that decisions, impacts andrisks can be fully understood by management. In 2007-2008, this interim approach will betaken one step further with the introduction of Activity-Based Budgeting. Additionally, CCGwill be seeking authority to revise its Program Activity Architecture (PAA) as describedbelow. CCG will also be seeking approval for a new refit authority and will be requesting anew capital carry-forward authority.Activity-Based BudgetingTo support planning, analysis and decision processes from a national perspective, CCGhas adopted an activity-based budgeting process. The goal of activity-based budgeting isto align resources with results. This alignment will ensure that CCG is transparent in thecost of its service to Canadians and accountable for that service. This process places theemphasis on the activities that the organization performs rather than on the geographicallocation.For fiscal year 2007-2008, the internal budget allocation has been developed by activity,for the most part. All budgets, with the exception of specially controlled items andmanagement and direction activities, have been allocated by activity and region.As a consequence, managers and staff within the organization will see a more clearlydefined link between (1) the way Parliament appropriates funds (Report on Plans andPriorities (RPP) and Main Estimates); (2) the internal planning processes (FleetOperational Plan and the Agency Business Plan); (3) the internal budget allocation; and (4)the year-end reporting to Parliament through Public Accounts and the DepartmentalPerformance Report (DPR). Furthermore, it is expected that this structure will betterfacilitate in-year performance reporting, both operational and financial.The New Program Activity ArchitectureActivity-based budgeting is a key component in the building of financial stability for CCG.Another component is the Program Activity Architecture (PAA); see Annex C. The CoastGuard is proposing to introduce two key concepts in the new PAA — Fleet OperationalReadiness and Lifecycle Asset Management. By establishing these functions as activitiesin their own right, CCG is recognizing that a significant portion of our efforts and resourcesare directed to these two activities, although they both still support Coast Guard activitiesand those activities in DFO and other government departments. Furthermore, byseparating the resources associated with these activities from those of the otheractivities (such as Aids to Navigation Services, Waterways Management Services orMCTS), the new proposed PAA enables us to better communicate to Parliamentarians andCanadians what we do and how we do it. It is this change that allows CCG to adoptactivity-based budgeting while maintaining accountability.Page 62www.ccg-gcc.gc.ca

Financial InformationIt is expected that the proposed PAA will significantly reduce the need for complicatedallocation processes now performed in the Departmental Activity Costing System (DACS)for the purposes of reports to Parliament. This means that amounts appearing in reportsto parliament (such as the RPP and DPR) will more closely resemble the budgets managedin-year by managers in the organization. Nevertheless, these allocations will still benecessary for other information requirements, such as those of the User Fees Act.Refit AuthorityIn addition to the changes to the PAA, we have identified the need to better allocate andmanage the resources associated with fleet refit (including helicopters). In the past, refitfunding has been provided from both operating and capital resources (Votes 1 and 5),leading to uncertainty as to the funding available and inefficiencies in the planning andmanagement of refit activities.In 2007-2008, we will seek authority to create a refit authority within the capital (Vote 5)funding envelope. The establishment of this refit authority and appropriate funding levelwould provide an appropriate level of investment to maintain critical fleet assets, facilitatethe planning and management of refit activities, and provide the flexibility to respond tothe increasing maintenance demands of the aging CCG fleet. It would better focusavailable resources on critical maintenance and repair priorities, thus mitigating impactson vessel and helicopter availability and reliability that could jeopardize program deliveryand the provision of services to Canadians. Removing the uncertainty of the fundingsource for this critical program would improve transparency in the management of thiscritical asset category.Capital Carry-Forward AuthorityCCG will consult the Treasury Board Secretariat and the Department of Finance on thefeasibility of increasing its capital carry-forward authority. Given the size and complexity ofthe capital investments required for fleet and other assets, together with uncertaintiesthat can arise in the implementation of capital projects, the current capital carry-forwardauthority does not facilitate the effective management of multi-year capital projects. Toooften, scarce capital resources are directed to lower priority projects simply because thereis insufficient room within the existing capital carry-forward limits and issues have arisenafter the standard Annual Reference Level Update (ARLU) reprofiling process.In attempting to live under the carry-forward authorities that currently exist, we frequentlyask contractors to delay projects such as ship refits or new vessel construction tomanage within available resources in future years, introducing a greater risk in verycomplex and necessary projects. This can increase the project’s costs (sometimessignificantly) and cause delays in meeting key project milestones or deliverables. Theultimate user of Coast Guard Agency programs and services is negatively affected whenvessel or other asset maintenance or replacement is delayed, often by several years.Financial DataThe following tables are the basis upon which this Business Plan was constructed.www.ccg-gcc.gc.ca Page 63

Canadian Coast Guard Business Plan 2007-2010Table 15: Derivation of 2007-2008 Expected Year-end Budget from2006-2007 Expected Year-end Budget(Millions of Dollars) Salary O&MCapitalG&CSubtotalSubtotalVote-NettedRevenueTotal2006-2007 ARLU 246.5 151.0 397.5 106.3 4.9 508.7 (50.1) 458.6Permanent Changes:Reductions included in2006--2007 Initial BudgetAdditions included in2006-2007 Initial BudgetReversal of 2006-2007Temporary Items— (11.7) (11.7) (11.7) (11.7)5.2 23.0 28.2 38.8 67.0 67.0— 0.4 0.4 (5.1) (0.4) (5.0) (5.0)Collective Bargaining 1.9 1.9 1.9 1.9Other Adjustments (TBrounding, etc.)(0.3) (0.8) (1.1) (1.1) (1.1)2007-2008 Reprofiles — 5.8 5.8 5.8International Polar Year 5.9 5.9 5.9 5.9Mid-shore Patrol VesselReprofile— (6.9) (6.9) (6.9)MSOC 0.6 0.0 0.6 0.6 0.6MSET 0.0 (0.1) (0.0) (0.0) (0.0)NIF Partial Sunset (0.2) (0.2) (0.2) (0.2)2007-2008 ARLU 254.0 167.5 421.5 138.9 4.5 564.9 (50.1) 514.9Net Capital Reprofiles — 1.2 1.2 1.22006-2007 Carry-Forward 5.0 5.0 5.0 10.0 10.0Other DFO Funding 37.1 25.3 62.4 62.4 62.4Real Property — 2.1 2.1 2.1 2.1Transfer of Refit to Capital(2007-2008 Supps A)Planned SalaryConversion(23.0) (23.0) 23.0 — —5.1 (6.2) (1.1) (1.0) (1.0)International Polar Year* (5.9) (5.9) (5.9) (5.9)Planned G&C Conversion(2007-2008 Supps A)2007-2008 PlannedSpending(0.4) (0.4) 0.4 — —296.2 164.4 460.6 168.1 4.9 633.6 (50.1) 583.5Items Excluded from the Planning:2006-2007 Carry-Forward(Earmarked)5.0 5.0 5.0 5.0International Polar Year 5.9 5.9 5.9 5.92007-2008 RevisedExpected Year-end Budget296.2 175.5 647.0 168.1 4.9 644.5 (50.1) 594.4* IPY amount of $5.9 million was excluded for business planning allocations.Page 64www.ccg-gcc.gc.ca

Financial InformationTable 16: 2007-2008 Financial Allocations by Sub-Activity (thousands of dollars)Sub-Activity Salary O&M Sub-Total Capital G&C TotalAids toNavigationServicesWaterwaysManagementServicesMarineCommunicationsand TrafficServicesIcebreakingServicesSearch andRescue ServicesEnvironmentalResponseServicesMaritimeSecurityFleetOperationalReadiness*Lifecycle AssetManagementServicesCoast GuardCollege12,497.8 13,068.9 25,566.6 25,566.62,387.5 7,122.4 9,509.9 9,509.933,480.7 8,343.9 41,824.7 41,824.7826.0 20,475.7 21,301.7 21,301.710,330.6 15,277.8 25,608.3 4,901.0 30,509.35,609.5 3,312.7 8,922.2 8,922.22,391.3 1,223.5 3,614.8 3,614.8161,562.0 60,432.0 221,994.0 122,210.8** 344,204.860,393.8 28,779.7 89,173.5 45,845.1 135,018.66,709.7 6,338.1 13,047.8 13,047.8Total 296,189.0 164,374.6 460,563.6 168,055.9 4,901.0 633,520.5* Includes all ship support (excluding fuel).** Includes planned conversion from O&M for refit and carry-forward.Table 17: 2007-2008 Financial Allocations by Region (thousands of dollars)Region Salary O&M TotalNewfoundland and Labrador 56,899.8 25,505.3 82,405.1Maritimes 60,956.6 30,111.1 91,067.7Quebec 48,049.3 28,611.7 76,660.9Central and Arctic 37,800.2 16,604.9 54,405.1Pacific 61,501.7 26,034.3 87,535.9Coast Guard College 6,709.7 6,338.1 13,047.8National Programs 1,346.4 16,132.1 17,478.5NCR 22,925.3 15,037.2 37,962.5Total 296,189.0 164,374.6 460,563.6www.ccg-gcc.gc.ca Page 65

Canadian Coast Guard Business Plan 2007-2010Table 18: 2007-2008 Financial Allocations by Sub-Activity by Region (thousands of dollars)Sub-ActivityNewfoundlandand LabradorMaritimes QuébecCentral andArcticPacific College NCRNationallyManagedTotalAids toNavigationServices5,026.6 3,506.4 2,316.9 3,403.0 7,013.8 4,001.9 298.0 25,566.6WaterwaysManagementServices50.0 1,546.7 4,830.2 1,412.8 1,126.0 544.3 0.0 9,509.9MarineCommunicationsand TrafficServices6,205.9 6,293.0 6,722.2 6,278.3 10,722.4 4,233.1 1,369.7 41,824.7IcebreakingServices2,107.4 4,675.2 3,560.4 739.5 238.1 681.1 9,300.0 21,301.7Search andRescue Services6,163.2 7,392.1 3,412.6 3,053.0 4,019.5 2,144.1 4,324.9 30,509.3EnvironmentalResponseServices1,472.9 1,370.2 1,254.8 2,064.2 1,586.0 1,114.060.0 8,922.2MaritimeSecurity0.0 0.0 258.8 265.0 0.0 1,889.2 1,201.9 3,614.8Fleet OperationalReadiness63,943.9 69,500.1 46,333.5 30,062.5 73,904.9 9,322.8 51,137.0 344,204.8Lifecycle AssetManagementServices15,393.9 17,505.6 21,874.2 18,824.8 24,818.9 14,032.0 22,569.2 135,018.6Coast GuardCollege13,047.8 0.0 13,047.8Total 100,363.9 111,789.5 90,563.5 66,103.1 123,429.4 13,047.8 37,962.5 90,260.7 633,520.5Page 66 www.ccg-gcc.gc.ca

Table 19: 2007-2008 National Programs by Sub-Activity (thousands of dollars)Financial InformationSub-ActivityIceReconnaissanceSmall CraftAcquisitionPlanNewInitiativesFundMarineSecurityOperationsCentresAutomaticIdentificationSystemResearchandDevelopmentSub-TotalMajorCapitalG&C TotalAids to Navigation Services 298.0 298.0 298.0Waterways ManagementServices0.0 0.0Marine Communications andTraffic Services1,369.7 1,369.7 1,369.7Icebreaking Services 9,300.0 9,300.0 9,300.0Search and Rescue Services 248.9 248.9 4,076.0 4,324.9Environmental ResponseServices60.0 60.0 60.0Maritime Security 1,201.9 1,201.9 1,201.9Fleet Operational Readiness 5,000.0 5,000.0 46,137.0 51,137.0Lifecycle Asset ManagementServices0.0 22,569.2 22,569.2Coast Guard College 0.0 0.0Total 9,300.0 5,000.0 248.9 1,201.9 1,369.7 358.0 17,478.5 68,706.2 4,076.0 90,260.7www.ccg-gcc.gc.ca Page 67

Canadian Coast Guard Business Plan 2007-2010Table 20: Total Number of CCG Full-time Equivalents (FTEs)Service*O&M FTEsMajor CapitalFTEsTotal FTEsAids to Navigation Services 195.0 195.0Waterways ManagementServicesMarine Communications andTraffic Services37.2 37.2522.3 522.3Icebreaking Services 12.9 12.9Search and Rescue Services 161.2 161.2Environmental ResponseServices87.5 87.5Maritime Security 37.3 37.3Fleet Operational Readiness 2,520.4 2520.4Lifecycle Asset ManagementServices942.2 82.2 1024.4Coast Guard College 104.7 104.7Total 4,620.7 82.2 4702.9* The total number of FTEs for the Coast Guard was allocated to the sub-activities based on the total distributionof salary. This total differs from the figures reported in Section 6 because it is a measure of employee utilizationduring the year that accounts for differences in tenure; by contrast, the total number of employees in Section 6is a count of employees at a given point in time.Page 68www.ccg-gcc.gc.ca

Annex A: Reinvestment in the Asset BaseANNEX A: REINVESTMENT IN THE ASSET BASEMarine Communications and Traffic Services (MCTS) projects focus on improving andmodernizing existing communications and information systems, or on providing enhancedmarine security and improved safety of navigation in Canadian water. The (funded)forecast expenditures in this category are $20.3 million for the Long-Term Capital Plan(LTCP) projects and $12.3 million for the National Capital Spending Plan (NCSP) projectsfor 2007-2008.Aids and Waterways Services projects focus on ensuring CCG’s compliance withstandards and general mariner safety, and with providing safe access and navigationcapabilities within Canadian waters. The (funded) forecast expenditures in this categoryare $11.5 million for the NCSP projects for 2007-2008.ProjectDescriptionTotal EstimatedCost (millions ofdollars)Capital Projects Currently Under Way (LTCP) – FundedMarine Communications and Traffic Services (MCTS)Automatic IdentificationSystem (AIS)MCTS National Vessel TrafficManagement InformationSystems (VTMIS)MCTS CommunicationControl System (CCS)Equipment ReplacementVery High Frequency (VHF) /Digital Selective Calling(DSC) Great Lakes and St.LawrenceMCTS Tofino RadarRefurbishment• Implement a National VHF AIS Service and a LongRange Identification and Tracking Service in Canadato enhance marine security and improve the safetyof navigation in Canada.• Upgrade the existing National Information System onMarine Navigation (INNAV) to meet the PacificRegion's operational requirements by incorporatingthe essential functionalities of the Vessel TrafficOperator Support System (VTOSS), and thenimplement the resultant VTMIS in each of the CCGMCTS centres across the country, as well as at theCCG College. As an integral part of this project, theexisting VTOSS system and related equipment in thePacific Region will be replaced by the new VTMISsystem and equipment.• Replace Communications Control System (CCS)equipment at 22 Marine Communications and TrafficServices (MCTS) centres, along with the associatedconsoles, radio remote control equipment at remotesites and two simulators at the new technicaltraining facilities required at the CCG College, inSydney, NS. Use of the latest digital technology willenable multifunction switching and simultaneouscommunications on different radio frequencies.• Install shore-based Global Marine Distress andSafety System (GMDSS) VHF/DSC at select MCTScentres and Remote Control Outlets (RCOs), alongthe Great Lakes (Central and Arctic Region) and theSt. Lawrence River (Québec Region).• Replace the existing “dark room” radar displays withdigitized daylight displays and complete other minorrenovations and infrastructure modifications toenable daylight operations at the Tofino MCTS centrein the Pacific Region.20.04.647.88.53.0www.ccg-gcc.gc.ca Page 69

Canadian Coast Guard Business Plan 2007-2010ProjectConfiguration Managementand Technical DataManagement System(CMTDMS)Description• Develop and implement a system to supportenhanced material acquisition and life cycle througha nationally managed information infrastructure.Total EstimatedCost (millions ofdollars)10.4Capital Projects Currently Under Way (NCSP) – FundedAids and Waterways ServicesShort-Range Fixed AidsReplacement/RefurbishmentFixed Aids Major StructuresReplacement/RefurbishmentFloating Aids to NavigationRefurbishment• Replace, remove, relocate, redesign and/or refurbishmany critical short-range fixed aids to navigation andassociated site infrastructure in all CCG regions toaddress high-risk items associated with structurefailure and health and safety codes.• Replace, remove or refurbish the larger structuressupporting short-range fixed aids to navigation in allregions to address codes/standards, health andsafety, due diligence and potential departmentalliability issues.• Replace or refurbish the floating aids to navigationand associated equipment to address codes andstandards, health and safety, due diligence andpotential departmental liability issues in all regions.Marine Communications and Traffic Services (MCTS)VHF Radio Refurbishment toBaselineArctic TelecomRefurbishmentMCTS CommunicationTowers Refurbishment(Phase 2)MCTS Site Refurbishment• Refurbish to baseline condition the MCTS very highfrequency (VHF) radios, in all regions, that areobsolete or at risk of failure.• Bring the Arctic Telecommunicationsnetwork/infrastructure back to baseline condition, byreplacing obsolete HF, MF, VHF, UHF and satellitecommunications equipment.• Refurbish to baseline condition those MCTScommunication towers that have been identified asthe highest priority in April 2006. The towersidentified are those that do not meet currentoperational requirements or are at high risk of failuredue to rust-out and overloading.• Refurbish existing MCTS communication sites usedby CCG across Canada, to baseline condition. Workincludes replacing or refurbishing equipment,buildings, trailers, roads, and transmission lines, aswell as replacing fuel tank systems and spillcontainmentstructures and physical security to meetnational and regional standards.Planned Capital Projects (LTCP/NCSP) – Approved, awaiting fundingMarine Communications and Traffic Services (MCTS)MCTS Continuous MarineBroadcast RefurbishmentMCTS Communication SiteRefurbishment• Replace existing outdated Continuous MarineBroadcast (CMB) equipment, including a completelyautomated text-to-speech capability, at CanadianMCTS centres across Canada.• Refurbish existing MCTS communication sites usedby CCG across Canada to baseline condition. Workincludes replacing or refurbishing equipment,buildings, trailers, roads, and transmission lines, andreplacing fuel tank systems and spill containmentstructures and physical security to meet national andregional standards.18.518.417.517.616.718.715.14.416.7Page 70www.ccg-gcc.gc.ca

Annex A: Reinvestment in the Asset BaseProjectMCTS Information LoggingSystemCommunications SystemsRefurbishmentDescription• Replace the outdated Message Data System andautomatic message broadcasting system(MDS/NAVTEX) with a new MCTS Logging System at22 MCTS centres.• Refurbish communications systems and associatedinfrastructure, including MF-HF receivers andtransmitters, VHF-DF antenna systems and satellitelinks, radars, UPS and test infrastructure, in allregions. It also includes consolidating the PrinceRupert Microwave Network by adding two microwavesites and includes four microwave links.Total EstimatedCost (millions ofdollars)4.818.1www.ccg-gcc.gc.ca Page 71

Canadian Coast Guard Business Plan 2007-2010ANNEX B: FLEET STRATEGIC INVESTMENTThere are four main categories that address reinvestment in the fleet asset base: MajorCrown Projects (MCP), Long-Term Capital Plan (LTCP), National Capital Spending Plan(NSCP) and Refit; these total $122.1 million for 2007-2008.The new Major Crown Projects Directorate (MCPD) manages the new funding and procuresthe new vessels approved under the Fleet Renewal initiative. As such, they manage two ofthe existing fleet capital projects (i.e., mid-shore and off-shore vessels), as well as theacquisition of a new Air Cushion Vehicle. These projects total $28.3 million for 2007-2008.The Fleet Long-Term Capital Plan addresses the replacement of small vessels, as well asvessel life extensions (VLEs), to ensure that they meet client requirements for programdelivery. Twelve capital projects funded for 2007-2008 for a total of $34 million arecurrently under way (including replacements and VLEs); three of these projects are nearingcompletion (marked with asterisks in the table below). Seven other LTCP projects arewaiting to begin in 2007-2008 should funding become available.The National Capital Spending Plan Phases I and II are addressing the refurbishment offleet vessels to baseline condition. A total of $13.6 million is funded in 2007-2008 torefurbish the various categories of fleet vessels in our regions. Finally, there is totalproposed funding of $46.2 million to refit fleet vessels and helicopters (fleet vessels$40.6 million, helicopters $5.6 million) to ensure that the vessels can be certified, fulfilmission requirements and operate efficiently. Our Refit Plan includes all of our fleet’sfunded NCSP projects, as well as refit projects for our vessels (including helicopters) for acombined total of $59.8 million for 2007-2008.ProjectDescriptionTotal EstimatedCost(millions of dollars)Capital Projects Currently Under Way (MCP) – FundedMid-Shore Patrol Vessels(MSPV)Off-Shore FisheriesScience Vessels (OFSV)CCG Air Cushion Vehicle(ACV) Acquisition• Mid-shore patrol vessels.• (4) Maritime Security - (4) CCG Replacement ofCCGS Quebecois, CCGS Atlin Post, CCGS SookePost, CCGS Cumella.• Offshore Fisheries Science Vessels (2).Replacement of CCGS Alfred Needler, CCGS W. E.Ricker.• Acquire an ACV model AP1-88/400, replacing anAP1-88/200 in Quebec Region; construction isongoing.Capital Projects Currently Under Way (LTCP) – FundedCCGS Louis S. St-Laurent -Main Engine Repair(Amend. EPA included)*CCGS Sir Wilfrid LaurierVessel Life Extension(VLE)CCGS John P. Tully VesselLife Extension (VLE)• Repair of No.1 engine (MAK) EPA - (120m).• The main engine was damaged after a routine testrun; project 90% completed.• Undertake VLE on CCGS Sir Wilfrid Laurier (ArcticIcebreaker (83m)), as the vessel is now 20 yearsold and equipment/systems need to bereplaced/upgraded.• Undertake VLE on CCGS John P. Tully, which is now21 years old. Offshore Science Research Vessel(69m).146.5187.027.95.924.815.8Page 72www.ccg-gcc.gc.ca

ProjectDescriptionAnnex B: Fleet Strategic InvestmentTotal EstimatedCost(millions of dollars)CCGS Alfred NeedlerVessel Life Extension(VLE)Integrated NavigationSystemsHalon 1301 ReplacementProgramSAR LifeboatReplacement — Phase II*CCGS Shark ReplacementE-Mail Aboard ShipsCCG College SimulatorsFleet LifeboatStandardization Plan*CCGS Edward CornwallisVessel Life Extension(VLE)• Undertake the work necessary to ensure CCGSAlfred Needler remains operationally available andmission capable until such time as its replacementis brought into service through the OffshoreFisheries Research Vessel (OFSV) Project.• Procure and install a Shipboard UniversalAutomatic Identification System (UAIS), DGPS andElectronic Chart System (ENC) onboard selectedFisheries and Oceans/Canadian Coast Guardvessels.• Acquire and install ozone-safe fire-fighting systemsto replace the existing Halon 1301 systems on allCCG vessels within all Coast Guard regions asrequired to meet EC regulations by 2010.• Construct 16 SAR vessels (47 footer) and 8 SARstations. Within the same project, 8 additional SARvessels were built as per Program Integrityapproval.• Construct and deliver, to Central and Arctic Region,a vessel to meet Science Program requirements asa replacement for CCGS Shark.• Deliver the capability for all shipboard personnelon the designated 55 vessels to receive personallyaddressed e-mail from any other person or agencyashore, as well as providing both intranet andInternet access.• Modernize two of the CCG College’s simulators:the Marine Propulsion Plant Simulator and theBlind Pilotage Radar Simulator, both of which arenow beyond the normal 10-year industry hardwareand software support.• There are disparities between the 7 lifeboats builtunder the first and second contract. This projectwill standardize all new lifeboats.• Ensure that the ship’s machinery, equipment andinfrastructure are fully compliant with thestatement of operational requirements andfunction effectively until the vessel’s plannedreplacement in 15-20 years.Capital Projects Planned (LTCP) – Approved, awaiting fundingCCGS J.L. HartReplacement (In-ShoreScience Vessel) –Unfunded EPACCGS Harp Vessel LifeExtension (VLE) –Unfunded EPAFAIS – Re-engineeringCCGS Shamook -Replacement (formerISVR) - PPA• Replace the Inshore Fisheries Research Vessel(20m) J.L. Hart with a more modern vessel that canperform the required missions more efficiently andprovide more multi tasking capability.• Hull Lengthening and VLE - EPA - SAR and Multi-Task ice strengthened cutter (25m).• Re-engineer the CCG Fleet's Activity InformationSystem (FAIS). Among other things, this will providea secure environment, timely information andensure compliance with Treasury Board policies.• Replace this Multi-disciplinary Inshore FisheriesScience vessel (25m).5.910.210.441.15.99.15.92.014.78.27.22.78.0www.ccg-gcc.gc.ca Page 73

Canadian Coast Guard Business Plan 2007-2010ProjectDescriptionTotal EstimatedCost(millions of dollars)CCGS Louis S. St-Laurent— VLE - PPACCGS Martha L. Black —Vessel Life Extension(VLE) - PPACCGS Pandalus III(Replacement) — PPA• Undertake major repairs/upgrades. Heavy GulfIcebreaker.• Perform VLE of the Light Icebreaker - Major NavaidsTender (83m).• Replace the Small Multi-Task Science Vessel(13m).Refit PlanRefurbishments (NCSP) – Funded (2007-2008)Phase I • Refurbish Air Cushioned Vehicles (project #V6NC1).10.0• Refurbish Icebreakers (project # V6NC2). 2.1• Refurbish Light Icebreakers/Major NavaidsTenders (project #V6NC3).• Refurbish Program Boats (project #V6NC6). 1.0• Refurbish Research Vessels (project #V6NC7). 1.1• Refurbish Offshore Research Vessels (project#V6NC8).Phase II • Refurbish Air Cushioned Vehicles (project #V6SP1).Refit Projects – Funded• Refurbish Marine Service Vessels (project#V6SP4).• Refurbish Patrol Vessels (project #V6SP5). 2.1Refit Vessels in 5 Regions 40.6Helicopter Repair andOverhaul in All Regions6.31.50.51.91.61.12.15.6Page 74www.ccg-gcc.gc.ca

Annex C: Proposed Program Activity ArchitectureANNEX C: PROPOSED PROGRAM ACTIVITYARCHITECTUREAids to Navigation ServicesWaterways ManagementServicesMarine Communications andTraffic ServicesIcebreaking ServicesSearch and Rescue ServicesEnvironmental ResponseServicesMaritime SecurityCoast Guard FleetOperational ReadinessLifecycle Asset ManagementServicesCoast Guard Collegewww.ccg-gcc.gc.ca Page 75

Canadian Coast Guard Business Plan 2007-2010LIST OF ACRONYMSACAssistant CommissionerACVAir Cushion VehicleAISAutomatic Identification SystemARLUAnnual Reference Level UpdateAToN 21 Aids to Navigation of the 21st CenturyCCGACanadian Coast Guard AuxiliaryCCGCanadian Coast GuardCCGCCanadian Coast Guard CollegeCCSCommunication Control SystemCHSCanadian Hydrographic ServiceCISCanadian Ice ServiceCMBContinuous Marine BroadcastCMTDMS Configuration Management and Technical Data Management SystemC&PConservation and ProtectionCSACanadian Standards AssociationDACSDepartmental Activity Costing SystemDFRadio Direction FindingDFODepartment of Fisheries and OceansDGPSDifferential Global Positioning SystemDNDDepartment of National DefenceDPRDepartmental Performance ReportDSCDigital Selective CallingDGDirector GeneralECEnvironment CanadaENCElectronic Navigational ChartEPAEffective Project ApprovalEREnvironmental ResponseFAISFleet Activity Information SystemFAMFisheries and Aquaculture ManagementFTEFull Time EquivalentGMDSS Global Maritime Distress and Safety SystemHFHigh FrequencyHRHuman ResourcesIALAInternational Association of Lighthouse AuthoritiesIBMSIntegrated Business Management ServicesIISPAIce Information Service Partnership AgreementINNAVIntegrated Information System on Marine NavigationIMOInternational Maritime OrganizationIPYInternational Polar YearISVRInshore Science Vessel ReplacementPage 76www.ccg-gcc.gc.ca

List of AcronymsITSJRCCLEDLOSLRITLTCPMAFMCPDMCTSMDSMFMIMSMRRSMRSCMSETMSOCMSPVNAFONCRNCSPNMWDNRANRCanNSERCO&MOAGOFSVPAAPIANCPPAPSESRCMPRORPPSARSDSSLASMSOLASUAISUNCLOSIntegrated Technical ServicesJoint Rescue Co-ordination CentreLight Emitting DiodeLevels of ServiceLong Range Identification and TrackingLong-Term Capital PlanManagement Accountability FrameworkMajor Crown Projects DirectorateMarine Communications and Traffic ServicesMessage Data SystemMedium FrequencyMaintenance Information Management SystemManagement, Resources and Results StructureMarine Rescue Sub-CentreMarine Security Enforcement TeamMarine Security Operations CentreMid-Shore Patrol VesselNorthwest Atlantic Fisheries OrganizationNational Capital RegionNational Capital Spending PlanNational Model Work DescriptionNAFO Regulatory AreaNatural Resources CanadaNatural Sciences and Engineering Research Council of CanadaOperations and MaintenanceOffice of the Auditor GeneralOff-Shore Fisheries Science VesselsProgram Activity ArchitectureInternational Navigation AssociationPreliminary Project ApprovalPublic Service Employee SurveyRoyal Canadian Mounted PoliceRadio OperationsReport on Plans and PrioritiesSearch and RescueSustainable Development StrategyService Level AgreementSynthetic MooringInternational Convention for the Safety of Life at SeaUniversal Automatic Identification SystemUnited Nations Convention on Law of the Seawww.ccg-gcc.gc.ca Page 77

Canadian Coast Guard Business Plan 2007-2010UPSVHFVLEVNRVTMISVTOSSUltraviolet Photoelectron SpectroscopyVery High FrequencyVessel Life ExtensionVote-Netted RevenueVessel Traffic Management Information SystemsVessel Traffic Operator Support SystemPage 78www.ccg-gcc.gc.ca

IndexINDEXAA-Base Review · 2, 3, 7, 9, 20, 21, 62Aids and Waterways Services · 69, 70Arctic · 8, 9, 25, 27, 28, 30, 31, 32, 33, 35,38, 40, 43, 44, 45, 46, 50, 65, 66, 69,70, 72, 73Asset Management Services · 18, 24, 49,50, 65, 66, 67, 68Auditor General · 2, 3, 7, 9, 14, 15, 17, 19,20, 21, 77CCanadian Coast Guard Auxiliary · 34, 54, 76Canadian Coast Guard College · 9, 52, 76CCG Workforce · 3, 6, 19, 21, 23, 54, 56, 57,58, 59, 60, 61Coast Guard Identity · 8Corporate Risk · 3, 54EEnvironmental Response Services · 24, 25,37, 38, 65, 66, 67, 68FFinancial Information · 62Fisheries and Aquaculture Management · 25,45, 46, 76Fleet · 1, 3, 4, 6, 12, 13, 14, 15, 20, 21, 22,23, 24, 25, 26, 28, 32, 34, 35, 37, 40,42, 43, 44, 45, 46, 47, 48, 49, 52, 54,62, 63, 65, 66, 67, 68, 72, 73, 76Fleet Operational Readiness · 6, 15, 24, 25,35, 42, 43, 49, 54, 62, 65, 66, 67, 68Fleet Renewal · 6, 13, 72Fleet Strategic Investment · 72Focus on Client Service · 6, 7Focus on Efficiency and Effectiveness · 6, 13Focus on People · 6, 19HHuman Resources · 6, 10, 19, 47, 54, 76IIcebreaking Services · 24, 25, 32, 33, 65,66, 67, 68Integrated Technical Services · 6, 16, 17, 54,77International Activities · 53LLevels of Service · 6, 7, 8, 10, 35, 77Lifecycle Asset Management Services · 18,24, 49, 50, 65, 66, 67, 68Long Range Identification and Tracking · 6,11, 12, 40, 41, 53, 69, 77MManagement Agenda · 3, 55Marine Communications and Traffic Services· 7, 20, 24, 25, 29, 30, 39, 52, 65, 66,67, 68, 69, 70, 77Marine Security Operations Centre · 11, 12,40, 64, 67, 77Maritime Security · 1, 6, 11, 12, 13, 24, 25,29, 40, 47, 65, 66, 67, 68, 72Maritime Services · 4, 8, 17, 22, 31, 35, 36,38, 39OOngoing Services · 3, 23PPerformance Information · 24, 27, 30, 32,34, 37, 40, 42, 47, 49, 52Priority 1 · 6, 7Priority 2 · 6, 11Priority 3 · 6, 13Priority 4 · 6, 16Priority 5 · 6, 19Program Activity Architecture · 3, 9, 10, 23,24, 26, 62, 63, 75, 77Public Service Employee Survey · 2, 3, 9, 18,19, 20, 21, 22, 60, 61, 77www.ccg-gcc.gc.ca Page 79

Canadian Coast Guard Business Plan 2007-2010RReinvestment in the Asset Base · 27, 31, 40,48, 51, 69Royal Canadian Mounted Police · 11, 12, 42,77SUUnited States Coast Guard · 11, 53WWaterways Management Services · 24, 25,28, 62, 65, 66, 67, 68Science · 15, 25, 42, 44, 45, 72, 73, 74, 76,77Search and Rescue Services · 24, 25, 34,65, 66, 67, 68Page 80www.ccg-gcc.gc.ca

Canadian Coast Guard Business Plan 2007-2010CCG AGENCY BUSINESS PLANFor further information, please contact Canadian Coast Guard, Integrated Business Management Services.www.ccg-gcc.gc.ca Page 81