RESTRICTED
WORLD TRADE G/SCM/N/3/CAN/Rev.1
7February 1996
ORGANIZATION(96-0453)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
NOTIFICATIONS PURSUANT TOARTICLE XVI.1 OFTHE GATT 1994
AND ARTICLE 25OFTHE AGREEMENT ONSUBSIDIES AND
COUNTERVAILING MEASURES
CANADA
Thefollowing communication, dated 23January 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
Pursuant toCanada 'sobligations under Article 25.2oftheWTO Agreement onSubsidies and
Countervailing Measures andArticle XVI:1 oftheGATT 1994, Iampleased toprovide youwiththe
enclosed notification ofagricultural andindustrial programmes granted ormaintained byCanada.G/SCM/N/3/CAN/Rev.1
Page2
AGRICULTURAL PROGRAMMES
TABLE OFCONTENTS
I. GENERAL PROGRAMMES
1. Canadian Agri-Food Development Initiative (CAFDI)
2. Farm Income Protection Act(FIPA)
Components:
- NetIncome Stabilization Account (NISA)
- Gross Revenue Insurance Program (GRIP)
- Crop Insurance
- National Tripartite Stabilization Plan(NTSP)
- Dairy Stabilization
II. LIVESTOCK AND PRODUCTS
A. Livestock andMeat Products
1. Feed Freight Assistance Program
III. CROPS AND PRODUCTS
A. General
1. Farm Support andAdjustment Measures I&II(FSAM)
2. Cash Flow Enhancement Program (CFEP)
B. Grains andGrain Products
1. Western Grain Transportation Act(WGTA)
IV. TABLES
Table 1 Milk Products -Supply andDisposition
Table 2 Pork-Supply andDisposition
Table 3 Beef-Supply andDisposition
Table 4 Veal-Supply andDisposition
Table 5 Mutton andLamb -Supply andDisposition
Table 6 Grains andOilseeds -Supply andDisposition
Table 7 Fresh Fruits -Supply andDisposition
Table 8 Dried Beans
Note: Thetables reflect theproduction, consumption, import andexport statistics forawiderange
ofcommodities. They havenotbeenlinked toanyspecific programmes.G/SCM/N/3/CAN/Rev.1
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I.GENERAL PROGRAMMES
1. Canadian Agri-Food Development Initiative (CAFDI)
(a) Nature andExtent ofContribution
(i) Background andAuthority
CAFDIisafinancialcontributionprogrammeadministeredbyAgricultureandAgri-FoodCanada.
ItoperatesunderTermsandConditionsapprovedbyTreasuryBoardon28September1989andamended
on10April 1992. Theprogramme cameintoeffect in1990-9l andhasterminated asof31March 1995.
(ii) Incidence
Projects eligible forCAFDI funding include:
(A) Market Development projects which promote market opportunities forCanadian food
andagricultural products. Aswell, projects thatencourage costsaving andother
improvements tothemarketing system fortheCanadian agri-food industry.
(B) Production andProcessing Development projects which assist intheeffective evaluation
ofnewcrops andcropvarieties, andlivestock andpoultry production technologies
inCanada. Also, projects which accelerate thecommercial adoption ofnewagricultural
production technologies, andcontribute tothedevelopment ofsustainable agriculture
inCanada.
(C) Human Resources Development projects which enhance thelong-term viability ofthe
agri-food industry through thedevelopment andtraining ofitshuman resource base.
(iii) Amount oftheContribution
Funding maybeprovided upto50percentofeligible project coststoamaximum of$250,000
ayearor$750,000 overtheproject 'sduration. Maximum government assistance maynot
exceed 50percentfrom allfederal sources nor75percentfrom allgovernment sources
combined.
(iv) Estimated Contributions PerUnit
Generally, contributions areinthe$5,000-$50,000 range. Infiscal year1992-93, $1,177,229
wascommitted towards 97projects, in1993-94, $927,206 wascommitted towards 86projects,
andin1994-95 $2,037,453 wascommitted towards 95projects.
(b) Effect oftheProgramme
TheCAFDI encourages economic development intheCanadian agri-food sector byproviding
financial assistance forselected projects which contribute toimproved competitiveness, more market
responsiveness andgreater self-reliance intheagri-food sector. TheCAFDI encourages national policies
which reflect regional diversity andsustainable agricultural practices.G/SCM/N/3/CAN/Rev.1
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2. Farm Income Protection Act(FIPA)
(a) Nature andExtent oftheProgramme
(i) Background andAuthority
TheFarmIncomeProtectionAct(FIPA)providesincomestabilizationforfarmersacrossCanada.
Ittookeffect 1April 1991 andreflects acollective government-industry effort tocreate anintegrated
safety netforfarmers. Itincorporates:
(a) anetincome stabilization account programme (NISA);
(b) agross revenue insurance programme (GRIP);
(c) acropinsurance programme;
(d) arevenue insurance programme (e.g., National Tripartite Stabilization
Program (NTSP)); and
(e) dairy stabilization.
Collectively these programmes offercomplementary protection fortheagricultural industry.
These programmes areguided bytheprinciples of:
(i) market neutrality,
(ii) equity among commodities andrecognition ofregional diversity,
(iii) long-term social andeconomic sustainability offarmfamilies,
(iv) consistency withinternational obligations, and
(v) long-term economic andenvironmental sustainability.
Generally, these programmes aremanaged jointly bythefederal government, provinces and
producers. Byvirtue oftheirtripartite nature, theprogrammes share many common characteristics
suchasshared responsibility forfinancial contributions, policy andprogramme development.
These programmes:
- stabilize farmer incomes through market riskoryield protection,
- arenational, notregional inscope,
- arevoluntary withfarmers, whomaysignupforany,all,oracombination
(except forproducers subject toNTSP agreements),
- areestablished through federal-provincial agreements,
- areadministered andfunded through Agriculture andAgri-Food Canada and
theConsolidated Revenue Fund atthenational level,
- promote equity among regions andproducers, and
- address short termproduction andmarket riskswhile permitting farmers to
adjust tolong-term price andmarket trends.
Products covered byFIPA account for90percentofallfarmproduction, interms ofnumber
ofproducts, about 73percentofthevalue offarmproduction, measured byfarmcashreceipts, and
over99percentofCanada 'sseeded acreage.
(b) Effect ofFIPA
FIPA usesthesecomplementary agreements inorder tocreate acomprehensive riskprotection
programme. Theuseofseveral components isnecessary because thediversity ofproducts, prices,
costs, markets, cycles anddatacollection capabilities within theagricultural sector make itdifficultG/SCM/N/3/CAN/Rev.1
Page5
tostabilize farmincome through anysingle method. Individual components, which come under the
authority ofFIPA, aredescribed below.
Components ofFIPA:
NetIncome Stabilization Account (NISA) Programme
(a) Nature andExtent ofProgramme
(i) Background
TheNetIncome Stabilization Account (NISA) isanongoing program established in1991 to
assist producers instabilizing theirfarming income. Producers reporting farmincome/loss fortax
purposes areeligible toparticipate. Initially, coverage waslimited tograins, oilseeds, special crops,
edible andnon-edible horticulture, honey andranch furs. However, in1994 coverage wasextended
toallprimary agricultural commodities including redmeats, butexcluding dairy, poultry andegg
commodities. Thecommodities eligible forcontribution areprovince specific.
(ii) Incidence
Participants annually deposit upto2percentoftheireligible netsalesintotheirownindividual
stabilization account. Participants 'deposits arematched bycontributions fromthefederal andprovincial
governments at1percenteach. Producer participation isvoluntary.
Byagreement, governments mayenhance contribution ratesforselect commodities overafixed
period oftime. Forexample, forthe1993and1994stabilization years, producers ofedible horticulture
inOntario andBritish Columbia wereabletodeposit upto4percentoftheireligible netsaleswhich
were matched bygovernments at2percenteach.
Allproducer deposits areeligible fora3percentinterest bonus which iscost-shared byfederal
andprovincial governments.
Producer withdrawals fromtheiraccounts areallowed iftheircurrent yeargross margin declines
relative totheiraverage margin fortheprevious fiveyearperiod. Also, withdrawals areallowed if
theirnetincome fromallsources isbelow aminimum threshold of$10,000 (or$20,000 forafamily).
(iii) Amount ofPayment
These amounts represent federal andprovincial government payments intoproducer NISA
accounts fortheidentified taxyear:
Contributions ($million)
Stabilization Year* Federal Provincial
1992 $65.9 $64.7
1993 (estimate) $70.0 $70.2
1994** (forecast) $109.7 $100.5
*Thestabilization yearextends from 1January to31December.
**NISA wasextended tocover most primary agricultural commodities.G/SCM/N/3/CAN/Rev.1
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(iv) Payments perAccount (federal andprovincial)
Stabilization Year* $account
1992 $969.0
1993 (estimate) $1,124.0
1994** (forecast) $2,161.0
*The stabilization yearextends from 1January to31December.
**NISA wasextended tocover most primary agricultural commodities.
(b) Effect oftheProgramme
Theprogramme allows producers theopportunity tostabilize theirincome overthelongterm
bysetting aside money ingood years foruseinlower income years.
Gross Revenue Insurance Plan(GRIP)
(a) Nature andExtent oftheProgramme
(i) Background
Attheclose ofthe1990-91 cropyear, theWestern Grain Stabilization Act(anActtoprovide
incomestabilitytograinsandoilseedsproducersintheCanadianWheatBoarddesignatedareaofWestern
Canada) wasrepealed andsuperseded bytheFarm Income Protection Actwhich provides thelegislative
authority fortheGross Revenue Insurance Programme. GRIP currently includes grains, oilseeds and
specialty crops. Thefederal-provincial implementing agreement istheNational Agreement Establishing
aTripartite Gross Revenue Insurance PlanforCrops (1991).
(ii) Incidence
GRIP isavoluntary planconsisting oftwocomponents: cropinsurance andarevenue protection
component. These canbedelivered asasingle integrated programme ortwoseparate components.
Bothcomponents, which arefunded through tripartite premium contributions, aredescribed below.
Crop insurance :
"Crop insurance" stabilizes afarmer 'sincome bymoderating theeconomic effects ofcrop
lossescausedbynaturalevents.Producersandgovernmentspaypremiumsintocropinsuranceaccounts.
Payouts arebased onafarmer 'saverage cropyield andaretriggered when afarmer suffers ayield
lossduetoacovered hazard. FIPA authorizes cropinsurance asanoption under GRIP orthrough
separate cropinsurance agreements. Theproducer share ofcropinsurance premiums is50percent
andthefederal andprovincial government shares areeach25percent, under bothcropinsurance
agreements andthecropinsurance option ofGRIP.
Revenue Protection Component:
TheRevenue Protection Component stabilizes afarmer 'sincome bymoderating theeconomic
effects oflosses duetoshort-term market risks. Itisprovided through agreements thatestablish funds
intowhich producers andgovernments paypremiums. Under these agreements premiums paidby
governments andproducers plusinterest mustequal payouts overtime. Atarget revenue andpremiumsG/SCM/N/3/CAN/Rev.1
Page7
areestablished eachyearusing theIndexed Moving Average Price (IMAP). Payments aretriggered
when themarket revenue foranenrolled cropfallsbelow thetarget revenue. Thefarmer receives
apayment making upthedifference.
Producers contribute atleast331/3percentofthepremiums required andthefederal and
provincial governments share theremainder ofthepremiums, 412/3percentbythefederal government
and25percentbyprovincial governments.
(iii) Amount ofFederal Contributions ($million)
Crop Year* Crop insurance
contributions**GRIP
contributions**
1992-1993 134.59 570.63
1993-1994 123.78 463.86
1994-1995*** 113.17 412.30
(iv) Federal Contributions perInsured Producer
Crop Year* Crop insurance
contributions**GRIP
contributions**
1992-1993 $951 $4,825
1993-1994 $952 $3,973
1994-1995*** $912 $3,619
*Thecropyearextends from 1August to31July.
**These contributions apply topremiums, andnotadministration costs.
***Projected figures.
(b) Effect ofProgramme
GRIP stabilizes theincome offarmers through income andyield protection andrepresents a
combination ofrevenue insurance andcropinsurance.
Crop Insurance
(a) Nature andExtent oftheProgramme
(i) Background
Crop Insurance provides production riskprotection toproducers byminimizing theeffects
ofcroplosses caused bynatural hazards suchasdrought, flood, hail,frost, excessive moisture and
insects.
TheCrop Insurance Actof1959, revised in1990, enabled theFederal Government toenter
intoanagreement withanyprovince tomake contributions towards thepremium, orthepremium and
theadministration costs ofthatprovince 'sinsurance scheme. Risk-sharing arrangements could also
bemade bywayofloans orreinsurance ofpartoftheprovince 'sliability whenever indemnities greatlyG/SCM/N/3/CAN/Rev.1
Page8
exceeded premiums andreserves. InApril 1991, theCrop Insurance Actwasrevoked, leaving the
cropinsurance programme under theauthority ofFIPA, asanoption under GRIP orthrough separate
cropinsurance agreements.
(ii) Incidence
Thefederal andprovincial governments eachpay25percentofthetotalpremiums withthe
producers contributing theremaining 50percent. Provincial administrative costs areshared equally
bythefederal andprovincial governments.
(iii) Amount ofFederal Contributions
SeeGross Revenue Insurance Plan(GRIP) above.
(iv) Federal Contributions perInsured Producer
SeeGross Revenue Insurance Plan(GRIP) above.
(b) Effect oftheProgramme
Crop Insurance stabilizes afarmer 'sincome bymoderating theeconomic effects ofcroplosses
caused bynatural events.
National Tripartite Stabilization Plan(NTSP)
(a) Nature andExtent oftheProgramme
(i) Background
TheNational Tripartite Stabilization Programme (NTSP) stabilizes returns forapples andsugar
beets toreduce income lostbyproducers fromsignificant market fluctuations. Theprogramme cost
isshared equally between thefederal government, theprovince andproducers, therefore government
contributions represent 2/3oftotalpayments. TheNTSP willbeterminated attheendofAugust 1997.
(ii) Incidence
Thesupport levels forapples andsugar beets aresetatapercentage oftheIndexed Moving
Average Price(IMAP). TheIMAP isthenational average market price, adjusted toaccount forinflation
forthepreceding 10years forapples, and15years forsugar beets.G/SCM/N/3/CAN/Rev.1
Page9
(iii) Total Amount ofPayment ($000)
Crop Year*
Apples 1991 0
1992 11,936
1993 0
Sugar beets 1991 2,493
1992 0
1993 2,257
(iv)Total Payment PerUnit($/tonne)
Crop Year*
Apples 1991 $0
1992 $5.50 inBritish Colombia
$26.77 inOntario
$41.03 inNova Scotia
$13.62 inNewBrunswick
$40.28 inQuebec
1993 $0
Sugar beets 1991 $2.23
1992 $0
1993 $1.74 inManitoba
$3.16 inAlberta
*Thecropyearextends from 1August to31Julyforapples andfrom 1September to31August forsugar beets.
(b) Effect oftheProgramme
Paymentshelpstabilizeproducers'incomebyreducingtheimpactofshort-termpricedisruptions
inmarket conditions.
Dairy Stabilization
(a) Nature andExtent oftheProgramme
(i) Background
TheFederalGovernmentsupportsthepricereceivedbydairyfarmersthroughanoffer-to-purchase
program complemented byadairy subsidy. Agovernment agency, theCanadian Dairy Commission,
supports theprice ofindustrial milkthrough offering topurchase butter andskimmilkpowder ata
support priceincombination withadirect payment sufficient tomaintain thetarget return setfordairy
farmers. Milkproduction inCanada isrestricted through farmlevelproduction quotas. ThenationalG/SCM/N/3/CAN/Rev.1
Page10
supply management system forindustrial milkisgoverned byajointfederal/provincial agreement
administered bytheCanadian Dairy Commission.
InJuly1990, theMinister ofAgriculture gavetheCanadian Dairy Commission themandate
toestablish dairy target andsupport prices from 1August 1990 onwards. Prior tothisdate, federal
cabinet determined theseprices. Thisdelegated authority hasbeenextended tothe1994-95 dairy year.
(ii) Incidence
Federal dairy support policy consists ofsupporting themarket prices ofbutter andskimmilk
powder through anoffer-to-purchase programme andmaking direct payments under aquota system
tofarmers formilkandcream usedforthemanufacture ofindustrial dairy products.
(iii) Amount ofPayment
For1994-95, theamount ofdirect subsidy payments bytheCDC onindustrial milkandcream
wassetatarateof$5.43 perhectolitre ofmilkmeasuring 3.6kilograms ofbutterfat. Following
reductions outlined intheFebruary 1995 Federal Budget, programme expenditures willbereduced
by15percenton1August 1995andanother 15percenton1August 1996foratotalof30percent.
Dairy Year* ($million)
1991-92 238.185
1992-93 238.728
1993-94 222.907
(iv) Support Prices: ($/Kg)
Dairy year* Butter Skim milk
powder
1992-93 5.317 3.304
1February 1993** 5.363 3.339
1993-94 5.324 3.498
1994-95 5.324 3.708
*Thedairy yearextends from 1August to31July.
**CDC announcement toincrease support price forbutter andskim milkpowder.
(b) Effect ofProgramme
Thefundamental objectives oftheCanadian dairy stabilization program aretoprovide efficient
milkproducers withtheopportunity toobtain afairreturn fortheirlabour andinvestment andtoprovide
consumers ofdairy products withacontinuous andadequate supply ofhighquality dairy products.G/SCM/N/3/CAN/Rev.1
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II. LIVESTOCK AND PRODUCTS
A. Livestock andMeat Products
1. Feed Freight Assistance Programme
(a) Nature andExtent oftheProgramme
(i) Background andAuthority
Underthisprogramme,theFederalGovernmentpaysaportionofthetransportationcostsincurred
inshipping feedgrains tousers infeeddeficit areas ofBritish Columbia, theYukon, Northwest
Territories,AtlanticCanadaandtheperipheralregionsofOntario(suchasNorthernOntario)andQuebec
(such asGaspé). Thisprogramme isadministered byAgriculture andAgri-Food Canada.
(ii) Incidence
Thefreight assistance ratesaresetforeligible individual destinations based upon theweighted
average costoftransportation overtheleastcostroute.
(iii) Amount ofthePayment
Expenditures onfeedfreight assistance were $17.7 million in1991-92 on1.4million tonnes
ofgrain; $17.5 million in1992-93 on1.4million tonnes ofgrain and$17.8 million in1993-94 on
1.4million tonnes ofgrain. Thediscontinuation ofthisprogram wasannounced intheFebruary 1995
Federal Budget. Thecurrent FFAtransportation subsidy program willbeterminated in1995-96 and
discussions willbeheldwithprovinces andindustry onalternative usesforthe$60million available
toencourage agriculture andagri-food development, during the10-year phase outperiod .
(iv) Estimated Payment PerUnit
Theaverageexpenditurepertonneshippedwas$12.27in1991-92,$12.25in1992-93,and$12.97
in1993-94.
(b) Effect oftheProgramme
TheFFAprogramme reduces thefreight costoftransporting feedgrains toeligible areasinorder
tohelpmaintain theviability ofthelivestock industry, especially inthegrain deficit regions ofCanada.
III.CROPS AND PRODUCTS:
A.GENERAL
1. Farm Support andAdjustment Measures I&II
(a) Nature andExtent oftheProgramme
(i) Background andAuthority
InApril 1991, theFarm Support andAdjustment Measures I(FSAM I)wasannounced, providing
financial assistance toproducers ofgrains andoilseeds, special crops andhorticulture. Itprovided
additional income andcashflowstability toproducers through initiatives thatcomplemented safetyG/SCM/N/3/CAN/Rev.1
Page12
netprograms, encouraging greater producer participation intheGross Revenue Insurance Program
(GRIP), andtheNetIncome Stabilization Account Program (NISA).
TheFSAM IIinitiative wasannounced inOctober 1991, toprovide financial assistance to
producers ofgrains andoilseeds, special crops, horticulture andother commodities. FSAM IIwas
developed primarily inresponse tothedevastating effects oftheongoing downward trend inprices
forgrains aswellasthepoormarket returns received byhorticulture producers andother commodity
growers.
Theshort-term income assistance initiatives addressed farmers 'immediate income needs through
measures which builtonlonger-term adjustment andincome stabilization programmes thusbridging
thegapbetween short-term needandlong-term protection.
(ii) Incidence
FSAM Iprovided aGRIP premium reduction, anincentive forNISA participation, anextension
oftheCashFlowEnhancement Program, anenhancement ofthePermanent Cover Program, andspecial
measures forthehorticulture sector.
FSAM IIwasalmost entirely anacreage payment tograin producers.
(iii) Amount ofPayment
FSAM I/II
Fiscal year* Total payment**
($'000)
1992-93 $475,497
1993-94 $24,746
1994-95 $4,671
*Thefiscal yearextends from 1April to31March.
**Onacashaccounting basis.
(iv) Payment perUnit
Given thevariation inthecomponents ofFSAM, average payments perproducer orperunit
arenotmeaningful.
(b) Effect oftheProgramme
Whileassistingproducerswhowereexperiencingsignificantincomedeclines,FSAMIandFSAM
IIwere partially responsible forhighlevels ofparticipation inthelongtermsafety netprogrammes
suchasGRIP andNISA.G/SCM/N/3/CAN/Rev.1
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2. Cash Flow Enhancement Program (CFEP)
(a) Nature andExtent ofthePayments
(i) Background andAuthority
CFEP provides rebates ofinterest onadvances oflessthan$60,000 forparticipants intheAdvance
Payments forCrops Act(APCA) andthePrairie Grain Advance Payments Act(PGAPA). Itwas
developed forthe1990-91 cropyear, asproducers wereexperiencing cashflowdifficulties because
ofdepressed markets. Theprogramme hassince beenextended onayeartoyearbasis. ForCFEP
IV(1993-94), theinterest costwasshared onalladvances withtheproducer paying thefirst2¼per
centandthefederal government paying thebalance onthefirst$60,000 ofadvances repaid.
APCA :APCA isavoluntary programme enacted in1977andapplies toallstorable crops grown
inCanada, except wheat andbarley grown intheCanadian Wheat Board designated area(seenext
section onPGAPA). Itprovides guarantees onprincipal andinterest thereby allowing producer
organizations tomake acashadvance tomembers upto$250,000. Advances arerepaid when the
crops aremarketed. Thecommodity secured loanprovides producers withfinancial flexibility todefer
marketing tomore favourable times. Producer organizations usetheloanguarantee tonegotiate more
favourable interest ratesfrom commercial lending institutions.
PGAPA: PGAPA isavoluntary programme enacted in1957 andapplies towheat andbarley
grown intheCanadian Wheat Board (CWB) designated area. ThePGAPA allows producers toreceive
acashadvance prior tocropsales/delivery when salesopportunities arerestricted duetodelivery and
marketing problems.
Theprogramme isadministrated bytheCWB. Under thePGAPA, advances toindividual
producers areavailable upto$250,000 minus advances taken under theAdvance Payments forCrops
Actbased oncrops instorage. Theadvances arerepaid asthecrops aresold, either bydeduction
fromCWB initial payments orbycash. ThePGAPA provides afederal guarantee onthefunds advanced
andassociated interest costs.
(ii) Incidence
During 1993-94, advance payments under theAPCA wereavailable toproducers ofpotatoes,
carrots, rutabagas, onions, cabbage, apples, pears, sunflower seeds, oats,corn, barley, honey, rye,
tobacco, soybeans, canola, alfalfa seed, leeks andflax. Advance payments under thePGAPA were
available toproducers ofwheat andbarley grown intheCanadian Wheat Board (CWB) designated
area.
Forthe1993-94 cropyear, theinterest-shared provisions ofthecashadvances applied toall
crops covered under thePGAPA andtheAPCA, uptoamaximum of$60,000 forbothprogrammes.G/SCM/N/3/CAN/Rev.1
Page14
(iii) Amount ofPayment
Total Interest Costs ($million)
Crop year* APCA PGAPA
1991-92 $8.3 $45.1
1992-93 $4.0 $42.0
1993-94 $2.0 $13.0
(iv) Estimated Payment PerProducer
Forthe1993-94 cropyear, 44,631 producers under PGAPA and5,560 producers under APCA
participated intheCFEP programme.
Interest CostperProducer
Crop year* APCA PGAPA
1991-92 $767 $743
1992-93 $550 $769
1993-94 $347 $291
*ThecropyearforthePGAPA extends from1August to31July. The12month cropyearfortheAPCA varies according
tothecropharvested.
(b)Effect oftheProgramme
Theprogramme helpseasecashflowdifficulties forproducers byfacilitating cashadvances under
theAPCA andPGAPA andprovides income assistance through theinterest-free benefit.
B.GRAIN AND GRAIN PRODUCTS
1. Western Grain Transportation Act(WGTA)
(a) Nature andExtent oftheProgramme
(i) Background andAuthority
Until January 1984, freight ratesongrains moving outofWestern Canada werebased onlevels
firstsetin1897. Although thesefixedratesoriginally covered therailways 'costsoftransporting grain,
bythe1960'ssignificant problems began tooccur. These problems included large annual railway
revenue losses onhauling grain, reluctance bytherailways toinvest inthegrain transportation system,
andagricultural production distortions inWestern Canada. TheWestern Grain Transportation Act
(WGTA), which became effective 1January 1984, wasdesigned toalleviate these problems.G/SCM/N/3/CAN/Rev.1
Page15
(ii) Incidence
Under theWGTA, thefederal government isrequired topayabasic portion oftotalrailway
costsoftransporting grains thatisbased onthedifference which existed incropyear1981/82 between
thetotalcostoftransporting grain andwhat shippers were thenpaying fortotransport theirgrain.
Thefederal government canalsoberequired topayanadditional amount asaresult oftheinflation-
sharing provision oftheWGTA. Theshipper share limitation provision limited theshipper share of
thefreight rateto10percentoftheaverage selling price ofgrain, however, thisprovision hasnever
beentriggered.
Forbudgetary reasons, theforecasted expenditures totheWGTA werereduced by10percent
inthe1993/94 cropyearandbyanadditional fivepercent, toatotalof15percentin1994/95.
(iii) Amount ofPayment
ThegovernmentpaymenttotheWGTAwas$690.2millionin1992/93,$638.3millionin1993/94
andisforecast at$560.6 million in1994/95. TheFebruary 1995 Federal Budget announced thatthe
WGTA would beterminated asof31July1995.
(iv) Estimated Payment perUnit
Thegovernment payment was$21.98 pertonne in1992/93, $19.64 pertonne in1993/94 and
isforecast at$16.34 pertonne in1994/95.
(b) Effect oftheProgramme
TheWGTA increases theportion oftransportation costspaidbyprairie grain shippers; provides
therailways with adequate revenue toensure railsystem viability, including funds forcapital
expenditures; andpartially reduces thedistortions affecting prairie agriculture, caused byartificially
highgrain prices which aretheresult ofshippers paying onlyaportion oftransportation costs.G/SCM/N/3/CAN/Rev.1
Page16Table 1
MILK PRODUCTS -SUPPLY AND DISPOSITION (inmetric tonnes)
Commodities Calendar year Beginning stocks Production Imports Domestic
disappearanceExports Ending stocks
Creamery butter 1992 15,557 85,129 182 80,005 10,569 10,294
1993 10,294 83,557 919 85,555 3,695 5,520
1994 5,520 88,774 408 83,622 2,280 8,800
Cheddar cheese 1992 32,273 109,799 503 103,948 7,731 30,896
1993 30,896 110,742 683 109,300 6,198 26,823
1994 26,823 117,633 1,307 110,541 4,235 30,987
Variety cheese 1992 9,796 154,104 16,745 165,421 5,045 10,179
1993 10,179 159,768 16,847 173,201 2,671 10,922
1994 10,922 163,849 15,776 177,892 2,930 9,725
Concentrated
whole milk1992 2,957 51,348 135 44,321 6,288 3,831
1993 3,831 48,115 100 43,657 4,986 3,403
1994 3,403 43,647 59 39,852 4,926 2,331
Skim milk
powder1992 15,262 53,489 731 29,112 34,052 5,528
1993 5,528 55,016 4,655 37,114 19,001 9,084
1994 9,084 58,128 6,348 31,144 32,720 9,696
Source: "Dairy Review". Catalogue number 23-001, Statistics Canada.G/SCM/N/3/CAN/Rev.1
Page17Table 2
PORK -SUPPLY AND DISPOSITION (inmetric tonnes)
Calendar
yearBeginning
stocksProduction Imports for
consumptionTotal supply Exports Ending
stocksManufacturing Waste Domestic
disappearance
1992 14,124 1,208,924 15,813 1,238,861 295,628 12,767 27,806 96,714 805,946
1993 12,767 1,195,254 22,138 1,230,159 302,952 10,827 27,491 95,620 793,269
1994 10,827 1,233,623 27,259 1,271,709 298,237 15,186 28,373 98,690 831,223
Source: "Livestock statistics". Catalogue number 23-603E, Statistics Canada.
Table 3
BEEF -SUPPLY AND DISPOSITION (inmetric tonnes)
Calendar year Beginning
stocksProduction Imports for
consumptionTotal supply Exports Ending stocks Domestic
disappearance
1992 15,018 855,262 217,840 1,088,120 156,099 14,666 917,355
1993 14,666 822,711 265,748 1,103,125 187,977 23,311 891,837
1994 23,311 865,352 280,783 1,169,446 216,118 29,349 923,979
Source: "Livestock statistics". Catalogue number 23-603E, Statistics Canada.G/SCM/N/3/CAN/Rev.1
Page18Table 4
VEAL -SUPPLY AND DISPOSITION (inmetric tonnes)
Calendar year Beginning
stocksProduction Imports for
consumptionTotal supply Exports Ending stocks Domestic
disappearance
1992 395 42,371 3,243 46,009 3,042 643 42,324
1993 643 37,547 3,801 41,991 2,497 647 38,847
1994 647 38,420 5,247 44,314 3,825 1,281 39,208
Source: "Livestock statistics". Catalogue number 23-603E, Statistics Canada.
Table 5
MUTTON &LAMB -SUPPLY AND DISPOSITION (inmetric tonnes)
Calendar year Beginning
stocksProduction Imports for
consumptionTotal supply Exports Ending stocks Domestic
disappearance
1992 2,432 10,347 12,214 24,993 24 2,004 22,965
1993 2,004 10,648 13,520 26,172 79 1,759 24,334
1994 1,759 10,359 14,484 26,602 97 2,800 23,705
Source: "Livestock statistics". Catalogue number 23-603E, Statistics Canada.G/SCM/N/3/CAN/Rev.1
Page19Table 6
GRAIN AND OILSEEDS -SUPPLY AND DISPOSITION (inmetric tonnes)
Grain
andcrop
years (a)Beginning
stocksProduction Imports Total
supplyExports
(b)Food and
industrial
use(c)Other
domestic
useDomestic
disappearanceTotal
ending
stocksAverage
price
($/tonnes)
DURUM
1991-92 1,567 4,586 0 6,152 3,090 188 668 856 2,206 135.32
1992-93 2,206 3,138 0 5,344 2,279 180 828 1,008 2,057 158.36
1993-94 2,057 3,358 7 5,423 2,905 166 687 852 1,666 228.00
ALL WHEAT EXCLUDING DURUMS
1991-92 8,718 27,360 22 36,101 22,297 1,979 3,966 5,945 7,860 134.14
1992-93 7,860 26,733 23 34,616 18,064 2,078 4,213 6,291 10,261 156.82
1993-94 10,261 23,873 20 34,154 16,375 2,229 6,004 8,234 9,544 164.00
ALL WHEAT
1991-92 10,285 31,946 22 42,253 25,387 2,167 4,634 6,801 10,066 -
1992-93 10,066 29,871 23 39,960 20,343 2,258 5,041 7,299 12,318 -
1993-94 12,318 27,232 27 39,577 19,280 2,395 6,691 9,087 11,210 -G/SCM/N/3/CAN/Rev.1
Page20BARLEY
1991-92 2,646 11,617 2 14,265 3,685 334 7,633 7,967 2,614 84.90
1992-93 2,614 11,028 3 13,645 3,013 428 6,934 7,361 3,271 86.50
1993-94 3,271 12,972 8 16,250 4,266 344 8,252 8,595 3,389 90.30
CORN
1991-92 1,534 7,413 198 9,144 986 1,274 5,365 6,639 1,520 101.10
1992-93 1,520 4,883 1,239 7,641 184 1,347 4,861 6,208 1,250 108.90
1993-94 1,250 6,501 561 8,311 493 1,371 5,767 7,138 680 129.60
OATS
1991-92 945 1,794 2 2,741 351 65 1,784 1,849 542 103.20
1992-93 542 2,823 3 3,368 776 114 1,790 1,904 689 109.50
1993-94 689 3,549 2 4,240 1,204 87 2,043 2,130 906 105.60
RYE
1991-92 324 339 0 663 226 82 162 244 193 100.70
1992-93 193 278 0 471 215 76 100 176 81 114.00
1993-94 81 319 0 400 154 79 63 142 104 113.10
MIXED GRAINS ("Mixed grains" iscalculated asaresidual)
1991-92 0 618 0 618 0 0 0 618 0 -
1992-93 0 604 0 604 0 0 0 604 0 -
1993-94 0 708 0 708 0 0 0 708 0 -G/SCM/N/3/CAN/Rev.1
Page21TOTAL -COARSE GRAINS
1991-92 5,580 21,780 201 27,431 5,248 1,755 15,560 17,315 4,868 -
1992-93 4,868 19,616 1,245 25,730 4,187 1,964 14,288 16,253 5,290 -
1993-94 5,290 24,049 570 29,909 6,117 1,881 16,883 18,714 5,079 -
CANOLA
1991-92 420 4,224 42 4,664 1,894 1,829 207 2,037 734 274.5
1992-93 734 3,872 112 4,719 1,876 1,913 237 2,151 692 321.6
1993-94 692 5,480 23 6,195 3,348 2,196 343 2,538 309 391.6
FLAXSEED
1991-92 345 635 0 993 458 n.c. 100 100 435 199
1992-93 435 337 0 772 436 n.c. 85 85 250 255.9
1993-94 250 627 0 878 605 n.c. 115 115 158 262.6
SOYBEANS
1991-92 200 1,460 72 1,743 252 975 326 1,301 189 227.7
1992-93 189 1,455 226 1,871 411 1,000 346 1,346 114 256.5
1993-94 114 1,851 57 2,022 488 1,050 392 1,442 93 313.2
TOTAL -OILSEEDS
1991-92 965 6,319 114 7,400 2,604 2,804 633 3,437 1,358 -
1992-93 1,358 5,664 338 7,361 2,723 2,913 669 3,582 1,057 -
1993-94 1,057 7,958 80 9,095 4,440 3,246 850 4,095 559 -G/SCM/N/3/CAN/Rev.1
Page22TOTAL -GRAINS AND OILSEEDS
1991-92 16,832 60,045 337 77,083 33,238 6,726 20,828 27,553 16,293 -
1992-93 16,293 55,152 1,606 73,051 27,253 7,136 19,998 27,134 18,665 -
1993-94 18,665 59,239 678 78,581 29,837 7,522 24,394 31,896 16,848 -
n.c.notcalculated
(a)Grain andCrop Years extend from 1August to31July.
(b)Includes exports ofwheat andbarley products. Excludes exports ofoilseed products.
(c)Grand totalexcludes foodandindustrial useofoilseeds.
Source: "Cereal andOilseeds Review". Catalogue number 22-007, Statistics Canada.G/SCM/N/3/CAN/Rev.1
Page23
Table 7
FRESH FRUITS -SUPPLY AND DISPOSITION (inmetric tonnes)
Commodity Crop year
(a)Production Imports Fresh
exportsProcessed Available
forfresh
use
Apples 1991-92
1992-93
1993-94513,251
563,954
473,65783,868
97,469
98,35491,660
73,996
50,196171,973
197,165
164,883333,486
390,262
356,932
Cherries
(sweet and
sour)1991-92
1992-93
1993-9410,125
10,896
9,51310,051
5,552
7,617282
341
3426,159
8,198
5,29613,735
7,909
11,492
Pears 1991-92
1992-93
1993-9419,788
21,145
18,25246,630
48,961
54,237130
252
2,1924,799
5,924
4,08961,489
63,930
66,208
Plums 1991-92
1992-93
1993-944,644
3,148
2,94129,660
26,330
27,12111
20
1897
120
11234,196
29,338
29,932
Peaches 1991-92
1992-93
1993-9433,852
39,984
39,25224,681
20,275
24,107264
835
2006,182
7,572
5,85152,087
51,852
57,308
(a) Theperiod forwhich thecropyearextends varies according tothecrop.
Source: "Imports byCommodity". Catalogue number 65-007, Statistics Canada.
"Exports byCommodity". Catalogue number 65-004, Statistics Canada.
"Fruit andVegetable Production". Catalogue number 22-003, Statistics Canada.
Table 8
DRY BEANS (inmetric tonnes)
Year* Production Imports Exports
1992 73,260 8,211 132,967
1993 111,807 10,918 79,770
1994 135,265 9,543 122,178
* Calendar yearbasis.
Note: Production dataisfrom Agriculture andAgri-Food Canada.
Drybeans include mung, black orgreen gram beans; small redoradzuki beans; white
peabeans; kidney beans; broad andhorse beans; andother drybeans.G/SCM/N/3/CAN/Rev.1
Page24
INDUSTRIAL PROGRAMMES
I. ABORIGINAL ECONOMIC PROGRAMS
1. Programme: TheAboriginal Business Development andJointVenture andAboriginal Capital
Corporation Programs.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective ofthese programmes istoincrease commercial enterprise activity byAboriginal
Canadians asamajor steptowards enhancing theireconomic self-reliance, byproviding financial
andadvisory assistance atvarious stages andforseveral aspects ofenterprise development.
Itisexpected thatAboriginal Canadians cangainsubstantial advantages fromtheseprogrammes
intheform ofanincrease intherateofenterprise formation, aswellasgreater survival and
growth, andbetter performance ofenterprises.
4. Assistance isprovided under thelegislative authority oftheDepartment ofIndustry Act.
5. Assistance isprovided intheformofrepayable ornon-repayable contributions. Theprogrammes
haveanumber ofspecific elements, withspecific maximum cost-sharing ratiorelated toeach.
In1992/93, theaverage contribution represented 33percentoftheproject cost.
6. Theprogrammes provide assistance tobusiness development promoted, andjointventures and
capital corporations owned byAboriginal Canadians.
7. Industry Canada disbursed $63,986,521 inFiscal Year (FY) 1992/93, and$69,440,182 in
FY1993/94.
8. Theprogrammes were created in1990.
II. ADVANCED MANUFACTURING TECHNOLOGY APPLICATION PROGRAM
1. Programme:TheAdvancedManufacturingTechnologyApplicationprogram(AMTAP).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. AMTAP wasdesigned tostimulate firms toimprove theirinternational competitiveness
through theadoption ofadvanced manufacturing technologies byproviding arange of
services tohelpthem identify, acquire andimplement these technologies.
4. Thisprogramme waspreviously administered under thelegislative authority ofthe
Department ofIndustry, Science andTechnology Actbutwastransferred inApril 1993,
from Industry Canada totheNational Research Council ofCanada.
5. Assistance isprovided intheformofnon-repayable contributions. Theprogramme has
several elements withspecific maximum cost-sharing ratiorelated toeach. Asof1992,
maxima were either 60percentor75percenttoamaximum of$15,000 perfirm.
6. Theprogram provided financial assistance forcompanies toengage outside resources
inorder toreview theircurrent operations withrespect tolongtermstrategy, defineG/SCM/N/3/CAN/Rev.1
Page25
areas ofimprovement, analyse costs andbenefits ofalternatives andprepare an
implementation plan.
7. Theprogramme expenditures totalled $2,965,005 inFiscal Year (FY) 1992/93, and
$1,250,315 inFY1993/94.
8. Theprogramme wascreated in1988.
III. ADVANCED TRAIN CONTROL SYSTEM PROGRAM
1. Programme: TheAdvanced Train Control System (ATCS) Program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective istohelpfirms financially carry outresearch, development andtesting
ofcomponents andsubsystems insupport oftheintroduction ofadvanced traincontrol
technology inNorth America.
4. Assistance isprovided under thelegislative authority oftheDepartment ofIndustry,
Science andTechnology Act,which hasbeenreplaced withtheIndustry Act.
5. Assistance isprovided intheform ofrepayable ornon-repayable contributions toa
maximum of40percentofeligible costs.
6. Assistance isintheformofcontributions towards thedevelopment costsandprototype
testing ofATCS incollaboration withtheCanadian railways.
7. Theprogramme expenditures totalled $733,275 inFiscal Year (FY) 1992/93, and
$149,357 inFY1993/94.
8. Theprogrammewascreatedin1987.Thelastdateforgovernmentfinancialcommitments
under thisprogramme was31December 1991.
IV. ATLANTIC ENTERPRISE PROGRAM
1. Programme: TheAtlantic Enterprise Program (AEP).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective oftheAEPwastoencourage long-term economic growth intheAtlantic
region ofCanada through assistance measures which promote capital investment.
4. Theassistance wasprovided under thelegislative authority oftheDepartment ofIndustry,
Science andTechnology Act,which hasbeenreplaced withtheDepartment ofIndustry
Act.
5. Assistance wasprovided tobusiness intwoforms: contributions toreduce interest costs
byupto6percentage points; andspecial loaninsurance which covered upto95per
centofthevalue ofaloanwiththeconcurrence ofMinister ofFinance (normal maximum
85percent). Loan Insurance issubject toanannual insurance feeof1percentpayable
bythelender.G/SCM/N/3/CAN/Rev.1
Page26
6. TheAEPprovided financial assistance tobusinesses intheAtlantic Canada region across
awide range ofindustry sectors. Theprogram wasdirected attheestablishment of
economically viable facilities aswellasexpansion ormodernization projects which could
nototherwise becarried out.
7. Theprogramme expenditures totalled $1,182,463 inFiscal Year (FY) 1992/93, and
$862,334 inFY1993/94.
8. Theprogrammewascreatedin1986.Thelastdateforgovernmentfinancialcommitments
under thisprogramme was31December 1990.
V. CANADIAN INSTITUTE FOR ADVANCED RESEARCH
1. Programme: TheCanadian Institute forAdvanced Research (CIAR) programme.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjectives ofthefinancial assistance toCIAR arefortheenhancement ofnational
productivity inresearch, development andeducation, productivity improvement inthe
manufacturing andservice industries, andthedevelopment offuture generations of
information technologies.
4. Theprogramme isadministered under thelegislative authority oftheDepartment of
Industry Act.
5. Financial assistance isgranted totheCanadian Institute forAdvanced Research which
isanon-profit private institution. From 1986through 1993, assistance wasintheform
ofgrants. Since 1994, assistance hasbeenintheformofnon-repayable contributions.
Theformula forcalculating federal assistance hasvaried overtheyears. Itiscurrently
calculated onthelesser of(a)50percentofeligible costs, (b)50percentoftotal
revenues received byCIAR from allnon-federal sources, or(c)afixed amount
(approximately $3.5million).
6. TheInstitute supports networks ofoutstanding researchers across Canada toexplore long-
term, complex problems ofscientific, social andeconomic significance.
7. Theprogramme expenditures totalled $3,750,000 infiscal year(FY) 1992/93, and
$3,940,000 inFY1993/94.
8. Theprogramme wasestablished in1986.
VI. CANADIANNETW ORKFORTHEADVANCEMENTOFRESEARCH,INDUSTRYAND
EDUCATION (CANARIE)
1. Programme: TheCanadian Network fortheAdvancement ofResearch, Industry and
Education (CANARIE) Program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjectives are(a)enhancement ofnational productivity inresearch, development
andeducation; (b)productivity improvement inthemanufacturing andservice industries;
and(c)development offuture generations ofinformation technologies.G/SCM/N/3/CAN/Rev.1
Page27
4. Assistance isprovided under thelegislative authority oftheDepartment ofIndustry Act.
5. Assistance isprovided intheformofnon-repayable contributions. Maximum assistance
iseither 50percentor100percentofeligible costs depending onthetypeofproject.
6. Financial assistance isprovided toCANARIE Inc., anot-for-profit organization
responsible forplanning, implementation andmanagement oftheCANARIE network
forresearch anddevelopment projects thataddress thedevelopment andtesting offuture
generations ofinformation technologies, andthediffusion andapplication ofthese
technologies throughout industry andtheeconomy atlarge.
7. Theexpenditures totalled $3,500,000 infiscal year(FY) 1993/94.
8. Theprogramme wasapproved inApril 1993andgovernment commitments willbemade
untilMarch 1999.
VII. R&DINCENTIVE PROGRAM FOR THE MONTREAL AREA
1. Programme: TheR&D Incentive Program fortheMontreal Area.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective wastohelpbusinesses inCanada todevelop critical mass andunique
expertise, andtoencourage them tobecome leaders inmedia technologies, electronic
datainterchange, andadvanced communications.
4. Thisprogramme wasadministered under thelegislative authority oftheDepartment of
Industry, Science andTechnology Act.
5. Theprogramme hasseveral elements, however onaverage thesharing ratiois50per
centofeligible costs.
6. Thisprogramme promoted economic growth intheMontreal Region andprosperity
throughout Canada byencouraging businesses tobecome orremain competitive.
7. Theexpenditures totalled $5,410,833 inFiscal Year(FY)1992/93, and$5,872,321 in
FY1993/94.
8. Theprogramme wascreated in1992, andterminated inFebruary 1995.
VIII. DEFENCE INDUSTRY PRODUCTIVITY PROGRAM
1. Programme: TheDefence Industry Productivity Program (DIPP).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. TheprimaryobjectiveofthisprogrammeistoenhanceCanada'seconomicgrowththrough
thepromotion ofviable defence ordefence-related products. Supporting objectives are
toprovide adefence industrial baseandtodevelop andmaintain adefence technological
capability.G/SCM/N/3/CAN/Rev.1
Page28
4. Theprogramme isadministered under thelegislative authority oftheDepartment of
Industry Act.
5. Assistance isprovided intheform ofcontributions, repayable contributions or
conditionally repayable, which represent upto50percentofeligible costs.
6. Assistance isforresearch anddevelopment (defence anddefence-related products and
associated technologies), source establishment (qualified Canadian suppliers ofdefence
anddefence-related products), capital assistance (theacquisition ofadvanced product
equipment andmodernization orupgrading ofengineering ormanufacturing capabilities)
andmarket feasibility studies (specifications fordefence-related products andmarket
characteristics forproducts).
7. Theexpenditures totalled $233,030,127 inFiscal Year(FY)1992/93, and$248,233,763
inFY1993/94.
8. DIPP wasdeveloped in1959andhasundergone numerous modifications sincethattime.
IX. ENVIRONMENTAL TECHNOLOGY COMMERCIALIZATION PROGRAM
1. Programme: TheEnvironmental Technology Commercialization (ETC).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective istoprovide newsolutions toenvironmental problems andstimulate
Canadian economic activity bysharing thefinancial risksofdeveloping, demonstrating
andcommercializing new technologies through theuseoffirst-time pilot and
demonstration projects.
4. Theprogramme isadministered under thelegislative authority oftheDepartment of
Industry Act.
5. Maximum contributions forstudies arethelesser of75percentofeligible costs or
$50,000; andfordevelopment/demonstration projects, thelesser of50percentofeligible
costs or$5million. When thesupport exceeds $100,000, theassistance isrepayable,
usually through profits generated bytheexploitation ofthetechnology.
6. Theprogramme provides financial assistance tojointventures andconsortia formed by
for-profit corporations. Thepartners mayinclude environmental industry firms,
universities andresearch institutions. Thegroup musthavethecapability tosuccessfully
demonstrate andcommercialize newenvironmental technologies.
7. Theexpenditures totalled $191,987 inFiscal Year (FY) 1992/93, and$1,540,553 in
FY1993/94.
8. This programme started inOctober 1991, and,subject toavailable funding, new
applications maybeaccepted until31March 1997.
X. INDUSTRIAL AND REGIONAL DEVELOPMENT PROGRAM
1. Programme: TheIndustrial andRegional Development program.G/SCM/N/3/CAN/Rev.1
Page29
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjectivewastopromoteregionalindustrialdevelopmentthroughsupportofprojects,
industries andtechnologies having thegreatest potential foreconomic return, sustained
growth andinternational competitiveness.
4. Theassistance isprovided under theIndustrial andRegional Development Act.
5. Theprogramme made financial assistance available tobusiness andnon-profit
organizationsthroughgrants,contributions,repayablecontributions,andloanguarantees.
Maximum grants andcontributions varied between 25percentand100percent;
maximum loanguarantees were 90percentofprinciple andinterest.
6. Theprogramme provided assistance toawidevariety ofprojects, including feasibility
studies, product andprocess innovation, newplant establishment, modernization or
expansion ofexisting plant facilities andmarketing.
7. Guarantee payments amounted to$97,580,676 inFiscal Year (FY) 1992/93, and
$2,486,594 inFY1993/94. Grants andcontributions (repayable andnon-repayable)
totalled $7,267,312 infiscal year(FY) 1992/93, and$3,405,095 inFY1993/94.
8. Theprogrammewascreatedin1983.Thelastdateforgovernmentfinancialcommitments
was30June1988.
XI. MICROELECTRONICS AND SYSTEMS DEVELOPMENT PROGRAM
1. Programme: TheMicroelectronics andSystems Development program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective ofthisprogramme istoenhance theinternational competitiveness and
growth ofthemanufacturing, processing andservice industries inCanada. The
programme strategy istoencourage Canadian systems development andmicroelectronics
companies tofurther theobjective bysharing withthemtheriskofdeveloping appropriate
advanced microelectronic technologies andinformation technologies andsystems.
4. Theprogramme isunder thelegislative authority oftheDepartment ofIndustry Act.
5. Programme assistance isintheform ofcontributions andrepayable contributions toa
maximum of50percentofeligible costs, (25percentforcosts ofspecial purpose
equipment).
6. Assistance isforallcompanies within-house systems engineering capabilities, companies
specializinginsystemsintegration,anddevelopersofadvancedmicroelectronicssystems.
7. Expenditures totalled $15,291,236 inFiscal Year (FY) 1992/93, and$7,979,609 in
FY1993/94.
8. Theprogramme wascreated in1987.G/SCM/N/3/CAN/Rev.1
Page30
XII. NORTHERN ONTARIO DEVELOPMENT INITIATIVES
1. Programme: TheBusiness Incentive program andtheCooperative Tourism Marketing
Initiative.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjectives aretoencourage thegrowth anddiversification oftheNorthern Ontario
economy byproviding financial assistance andother support tosmall- andmedium-sized
private sector businesses andsupporting tourism activities intheNorthern Ontario.
4. Assistance isprovided under thelegislative authority oftheDepartment ofIndustry Act.
5. Assistance isintheformofcontributions orrepayable contributions. Theprogramme
hasanumber ofelements eachwithspecific maximum sharing ratios andthese have
varied overtheyears between 35percentand90percent.
6. Assistance isprovided tosmall- andmedium-sized businesses inNorthern Ontario.
Eligibleprojectsinclude:researchanddevelopment;quality,technologyandmanagement
development;establishingnewbusinesses;expandingormodernizingexistingbusinesses;
marketing; andfeasibility studies.
7. Expenditures totalled $8,882,566 inFiscal Year (FY) 1992/93, and$8,757,436 in
FY1993/94.
8. Theinitiatives were created in1987.
XIII. SATELLITE COMMUNICATIONS DEVELOPMENT PROGRAM
1. Programme: TheSatellite Communications Development program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective istopromote thedevelopment ofadvanced communications services for
Canadians.
4. Thisprogram wasunder thelegislative authority oftheDepartment ofIndustry, Science
andTechnology Act.
5. Assistance wasintheform ofnon-repayable contributions. Although theprogramme
hadnospecific maximum sharing ratio, normally, thelevelofcost-sharing was50per
centofproject cost.
6. Theprogramme shared thecostofresearch anddevelopment oftheCanadian satellite
communications industry.
7. Expenditures totalled $2,725,439 million inFiscal Year(FY)1992/93, and$2,843,026
inFY1993/94.
8. Theprogramme, which wascreated in1986, wasterminated inFebruary 1995.G/SCM/N/3/CAN/Rev.1
Page31
XIV. SECTOR CAMPAIGNS (SECTOR COMPETITIVENESS INITIATIVES)
1. Programme: TheSector Campaigns Program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective oftheSector Campaigns wastoenhance theinternational competitiveness
ofCanadian industry inselected sectors through cooperation between government and
industry. Itwastoenhance thecompetitive position ofcertain industrial sectors through
leverageofincreasedR&Dactivityundertakenbycompanies,suppliers,researchinstitutes
anduniversities. Itshifted government support away fromnewcapacity orconventional
technology toward increased R&D andinnovation andmarket development.
4. ThisprogrammewasunderthelegislativeauthorityoftheDepartmentofIndustry,Science
andTechnology Act.
5. Assistance wasintheform ofcontributions orrepayable contributions. Maximum
contributionratiosforthevariouselementsvariedovertheyearsbutweretypically50per
centor75percent.
6. Theinitiatives provided assistance for:consultation, information exchange, advocacy,
innovation projects andstudies. Theassistance wasprovided tothefollowing industrial
sectors: advanced manufacturing technologies, automotive components, environmental
industries, fashion apparel, furniture, forest products, medical devices, microelectronics,
telecommunications equipment, andsoftware products.
7. Expenditures totalled $19,577,399 inFiscal Year (FY) 1992/93, and$24,501,570 in
FY1993/94.
8. Theprogramme began in1988 andwasterminated inFebruary 1995.
XV. SMALL BUSINESS LOANS ACT
1. Programme: TheSmall Business Loans Act(SBLA).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Itsobjective istoencourage private sector lenders toincrease theavailability ofloans
forthepurpose oftheestablishment, expansion, modernization andimprovement ofsmall
business enterprises.
4. Assistance isprovided under theSBLA.
5. Upto$250,000 canbeborrowed inrespect ofequipment, landandpremises. The
maximum termofthese business improvement loans istenyears. Lenders arelevied
a2percentguarantee feewhich isnominally passed ontotheborrowers inrespect of
allloans made andthegovernment/lender sharing ratioforloanlosses isaratioof90:10.
Farming businesses arenoteligible under SBLA. Allloans, made after31March 1995,
aresubject toanannual feeof1.25percentcalculated ontheaverage amount ofloans
outstanding andpayable bythelender tothegovernment tomake theprogramme cost
recoverable.G/SCM/N/3/CAN/Rev.1
Page32
6. Afirmiseligible forconsideration forabusiness improvement loanifitestimates that
itsgross revenues willnotexceed $5million intheyeartheloanisapproved bythe
lender.
7. Expenditures totalled $13,456,030 inFiscal Year (FY) 1992/93, and$8,343,510 in
FY1993/94.
8. TheSmall Business Loans Act(SBLA) hasbeeninforce since January 1961.
XVI. ST.LAWRENCE RIVER ENVIRONMENTAL TECHNOLOGY
DEVELOPMENT PROGRAM
1. Programme:TheSt.LawrenceRiverEnvironmentalTechnologyDevelopmentprogram.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective wastoencourage Canadian companies toparticipate intheSt.Lawrence
River Action Planbysharing withthem theriskofdeveloping andapplying newand
improved technologies thatwould achieve industrial pollution abatement.
4. ThisprogrammewasunderthelegislativeauthorityoftheDepartmentofIndustry,Science
andTechnology Act.
5. Assistance wasintheformofnon-repayable contributions ofupto50percentofeligible
costs toamaximum of$2million perproject.
6. Theprogramme encompassed twoelements: (1)feasibility studies thatsupported initial
studies conducted overa6-month period, either toinvestigate thetechnical feasibility
ofprojects ortodetermine theproduction, ortheeconomic market feasibility oftargeted
technological products; (2)development andapplication projects which supported the
development andapplication ofinnovation technologies forusebyindustry inthevicinity
oftheSt.Lawrence River.
7. Expenditurestotalled$5,521,388infiscalyear(FY)1992/93,and$3,365,222in1993/94.
8. Theprogramme wascreated in1988. Thelastdateforgovernment commitments was
31December 1992.
XVII. STRATEGIC TECHNOLOGIES PROGRAM
1. Programme: TheStrategic Technologies program.
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective ofthisprogramme istoenhance theinternational competitiveness of
Canadian industry through thedevelopment, acquisition, application anddiffusion of
technology. Theprogramme encourages andsupports pre-competitive R&D alliances
andtechnology application alliances designed toaccelerate thetransition tobuilding the
technology baseessential forcompetitiveness.
4. Theprogramme isunder thelegislative authority oftheDepartment ofIndustry Act.G/SCM/N/3/CAN/Rev.1
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5. Assistance isintheform ofnon-repayable contributions toamaximum of50percent
ofeligible costs (25percentofspecial purpose equipment).
6. Theassistance isprovided tostrategic technology fields, namely advanced industrial
materials, biotechnology, andinformation technologies.
7. Expenditures totalled $13,623,858 inFiscal Year (FY) 1992/93, and$20,767,892 in
FY1993/94.
8. Theprogramme wascreated in1988
XVIII. TECHNOLOGY OUTREACH PROGRAM /TECHNOLOGY OPPORTUNITIES IN
EUROPE PROGRAM
1. Programme:TheTechnologyOutreachprogram(TOP)andtheTechnologyOpportunities
inEurope program (TOEP).
2. Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective ofTOPwastoimprove theproductivity andcompetitiveness ofCanadian
industrybyprovidingasupportinginfrastructuretoacceleratetheacquisition,development
anddiffusion oftechnology andcritical skills within Canadian industry, especially in
thesmall- andmedium-sized business sector.
Theobjective ofTOEP wastocontribute tothegrowth ofastrong hightechnology
industry inCanada through thedevelopment ofnewtechnology andexpertise inCanadian
firmsandthroughthepromotionofindustrialcooperationbetweenCanadianandEuropean
firms.
4. TOPandTOEP werebothadministered under thelegislative authority oftheDepartment
ofIndustry, Science andTechnology Act.
5. Assistance under TOEP wasintheform ofrepayable ornon-repayable contributions.
Although theabsolute maximum (inexceptional circumstances) under thatprogramme
was100percent, generally thesupport wasat50percentorless. Assistance under
TOP wasintheform ofnon-repayable contributions toamaximum of50percent
averaged overafive-year period. Maximum contributions forparticular elements varied
overtheyears between 50percentand90percent.
6. TOPprovided assistance tofoster thedevelopment ofamore integrated national network
oftechnology diffusion support incooperation withindustry, universities, provincial
research organizations andfederal agencies operating internal technology centres.
TOEP wastofacilitate theparticipation ofCanadian firms inEureka hightechnology
projects.
7. Total expenditures under these twoprogrammes totalled $16,703,392 inFiscal Year
(FY) 1992/93, and$16,249,603 inFY1993/94.
8. Both TOPandTOEP were created in1986. TOP wasterminated inFebruary 1995.
Thelastdateforreceipt ofapplications under TOEP was31March 1989.G/SCM/N/3/CAN/Rev.1
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XIX. WESTERN TRANSPORTATION INDUSTRIAL DEVELOPMENT PROGRAM
1. Programme: TheWestern Transportation Industrial Development program (WTIDP).
2 Thenotification covers thefiscal years 1992/93 and1993/94.
3. Theobjective wastopromote industrial development andeconomic diversification in
thefourwestern provinces (Manitoba, Saskatchewan, Alberta andBritish Columbia)
inmanufacturing, processing andrelated service industries.
4. Theprogramme wasadministered under theDepartment ofIndustry, Science and
Technology Act.
5. Assistance wasprovided intheform ofnon-repayable contributions. Maximum
contributions forparticular elements varied between 25percentand75percent.
6. Small,mediumorlargebusinesseslocatedinWesternCanadawereeligibleforassistance.
Theprogram provided assistance toenhance research anddevelopment activities, funded
studies onlong term industrial development strategies, andextended industrial
development incentives.
7. Expenditures amounted to$286,208 inFiscal Year (FY) 1992/93, and$593,630 in
FY1993/94.
8. Theprogramme wascreated in1984. Theprogram hasexpired. Theexpenditures
mentioned above arefrom commitments made prior toApril 1988.