2012-2013 Departmental Performance Report

Chairperson's Message

I am pleased to report on the activities of the Transportation Appeal Tribunal of Canada (the “Tribunal”) for 2012–2013. This year has seen a continuation of the high standards and results that Canadians expect of a public, quasi-judicial institution.

As the forum for reviewing enforcement and licensing decisions of the Minister of Transport, the Tribunal provides an accessible, transparent mechanism for communication and conflict resolution between the Federal Government and the national transportation industries that it regulates.

The Tribunal's success is built on a solid foundation of skilled Members who play a unique and active role in rendering decisions that have an impact on Canada's multi-modal transportation system. We remain guided by basic principles of independence, fairness and expertise in transportation administrative law.

It has been my privilege to serve Canadians as part of a thriving national institution that contributes to the Federal Government's commitment to a safe and secure Canada. The Tribunal continues to make progress in the context of an expanding mandate which now covers the aviation, marine, rail and international bridges and tunnels sectors.

The Tribunal hears matters related to licenses, certificates and other documents of entitlement, the issuance of railway orders, and the administration of monetary penalties under various federal statutes. Our adjudicative process of Reviews and Appeals also extends to transportation security issues and medical cases.

This year saw a continuing rise in the number of cases based on the economy, enhanced monitoring of federally-regulated transportation, and in particular the expanded mandate and increasing visibility that the Tribunal now has in the marine sector.

With this trend expected to continue in conjunction with ongoing regulatory amendments in other modes, Canadians can expect to further benefit from the increasing confidence that the Federal Government has placed upon the Tribunal. Canada's transportation sectors can be equally confident of an independent review process led by a Tribunal that is committed to meeting future challenges with the same professionalism and dedication demonstrated throughout its nearly three decades of service to the country.

J. Richard W. Hall
Chairperson & CEO
Transportation Appeal Tribunal of Canada

Section I: Organizational Overview

Raison d'être

The mandate and the jurisdiction of the Transportation Appeal Tribunal of Canada are provided for by the Transportation Appeal Tribunal of Canada Act. The Tribunal's principal mandate as a multimodal review body is to hold Review and Appeal Hearings at the request of interested parties with respect to certain administrative actions taken under various Federal transportation Acts.

Responsibilities

The Transportation Appeal Tribunal of Canada is a quasi-judicial body established pursuant to the Transportation Appeal Tribunal of Canada Act. The Tribunal replaced the Civil Aviation Tribunal, which was established under Part IV of the Aeronautics Act in 1986. Its jurisdiction extends to the marine, railway, and international bridges and tunnels sectors.

The Tribunal's jurisdiction is expressly provided for under the Aeronautics Act, the Canada Shipping Act, 2001, the Canada Marine Act, the Marine Transportation Security Act, the Railway Safety Act, the International Bridges and Tunnels Act, and the Canada Transportation Act.

The Tribunal provides the national transportation community with the opportunity to have enforcement and licensing decisions of the Minister of Transport reviewed by an independent body. The Minister's enforcement and licensing decisions may include the imposition of monetary penalties or the suspension, cancellation, refusal to renew or refusal to issue or amend documents of entitlement on medical or other grounds. The person or corporation affected is referred to as the document holder.

These decisions are reviewed through a two-level hearing process: Review and Appeal Hearings. All Hearings are to be held expeditiously and informally, in accordance with the rules of fairness and natural justice.

At the conclusion of a Hearing, the Tribunal may confirm the Minister's decision, substitute its own decision, or refer the matter back to the Minister for reconsideration.

Strategic Outcome and Program Alignment Architecture

paa-aap-eng.gif[Figure 1: text description]

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization.  These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Other Administrative Services.   Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Organizational Priorities

Priority Type Strategic Outcome
Hold hearings expeditiously and informally Ongoing To provide the Canadian transportation community with the opportunity to have administrative or enforcement actions under Federal transportation Acts reviewed by an independent body.
Summary of Progress
  • The environment in which the Tribunal operates is becoming increasingly challenging as the number of cases it reviews is growing considerably. The Tribunal was not able to meet its objective of rendering decisions within 90 days of the Hearing due to the growth in the number of Marine cases.
  • Reviewing/developing strategies to most effectively use funds (review of translation costs, combining hearings if possible, recruitment of additional members)
Priority Type Strategic Outcome
Increase awareness of the Tribunal with respect to its mission, mandate, role and results achieved Ongoing To provide the Canadian transportation community with the opportunity to have administrative or enforcement actions under Federal transportation Acts reviewed by an independent body.
Summary of Progress
  • Numerous presentations made by the Chairperson at various transportation seminars and conferences.
  • Publishing and distribution of the Annual Report
  • Revising and updating the web site
Priority Type Strategic Outcome
Recruit additional Members Ongoing To provide the Canadian transportation community with the opportunity to have administrative or enforcement actions under Federal transportation Acts reviewed by an independent body.
Summary of Progress
  • Seven new Members were appointed in 2012-13 

Risk Analysis

Risk Risk Response Strategy Link to Program Alignment Architecture Link to Organizational Priorities
Increasing number of marine cases
  • Identified in 2012-13 RPP
  • Response was to review operations and identify efficiencies to maximize limited budget
Review and Appeal Hearings Hold hearings expeditiously and informally
Availability of qualified persons to be appointed as Members
  • Identified in 2012-13 RPP
  • Response was to increase awareness of Tribunal and intensify recruitment efforts
Review and Appeal Hearings Recruit additional Members
Increasing complexity of cases
  • Provide in depth training to Members
  • Creating a Legal Counsel position with the Tribunal to review decisions
Review and Appeal Hearings Hold hearings expeditiously and informally

There were three main risks that could have impacted the Tribunal's core activity of holding expeditious Review and Appeal Hearings this year. As identified in the 2012-13 RPP, scheduling and hearing the increasing number of marine cases on time and within a limited budget was a primary concern. In response, the Tribunal, as part of a continuing review of its operations, identified efficiencies in order to maximize the available funds. While the actual number of hearings and activities remained constant and comparable to the previous year, the Tribunal worked on more cases this year. It should also be noted that previous risk mitigation strategies contributed to a reduced lapse time between the conclusion of Appeal Hearings and the issuance of determinations this year.

Finding qualified persons to be appointed as Members was another identified risk in the 2012-13 RPP. The Tribunal's response was to increase awareness of its role and services within the professional community and the transportation industry, and to intensify recruitment efforts. As a result, the Tribunal was able to recruit seven new Members this year.

Lastly, the Tribunal provided in-depth training for Members and created a Legal Counsel position in order to mitigate the risks associated with the increasing complexity of cases that came before the Tribunal this year.

Summary of Performance

Financial Resources – Total Departmental ($ thousands)
Total Budgetary Expenditures
(Main Estimates)
2012
13
Planned Spending
2012
13
Total Authorities
(available for use)
201213
Actual Spending
(authorities used)
201213
Difference (Planned vs. Actual Spending)
1,412 1,412 1,658 1,585 173
Human Resources (Full-Time Equivalents— FTEs)
Planned 2012–13 Actual 2012–13 Difference 2012–13
12 11 1

Performance Summary Table for Strategic Outcome (s) and Program (s) ($ thousands)

Strategic Outcome 1: To provide the Canadian transportation community with the opportunity to have administrative or enforcement actions under Federal transportation Acts reviewed by an independent body.

Program Total Budgetary Expenditures (Main Estimates 201213) Planned Spending Total Authorities (available for use) 201213 Actual Spending (authorities used) Alignment to Government
of Canada Outcomes
201213 201314 201415 201213 201112 201011
Review & Appeal Hearings 1,072 1,072 1,080 1,083 1,322 1,243 1,375 1,389 A safe and secure Canada 
Strategic Outcome 1: Sub-Total 1,072 1,072 1,080 1,083 1,322 1,243 1,375 1,389  
Performance Summary Table for Internal Services ($ thousands)
Internal Services Total Budgetary Expenditures (Main Estimates 201213) Planned Spending Total Authorities (available for use)
201213
Actual Spending (authorities used)
201213 201314 201415 201213 201112 201011
  340 340 340 340 340 342 481 343
Sub-Total 340 340 340 340 340 342 481 343
Total Performance Summary Table ($ thousands)
Strategic Outcome(s) and Internal Services Total Budgetary Expenditures (Main Estimates 201213) Planned Spending Total Authorities
(available for use)
201213
Actual Spending (authorities used)
201213 201314 201415 201213 201112 201011
  1,412 1,412 1,423 1,423 1,658 1,585 1,856 1,732
Total 1,412 1,412 1,423 1,423 1,658 1,585 1,856 1,732

There was a variance in actual spending versus planned spending at the Tribunal this year. This was due to the increased amount of cases, particularly in the marine sector, which generated a moderate increase in program spending versus planned spending. Likewise and for the same reason, there was a negligible increase in spending for Internal Services. The Tribunal was provided with additional authorities in order to deal with the increasing caseload and associated costs, which also included the creation of a Legal Counsel position that has been filled.

Expenditure Profile

Departmental Spending Trend

Departmental Spending Trend[Figure 2: text version]

Actual spending in 2010-11 and 2011-12 increased due to the rise in the number of cases for the Tribunal. While the caseload continued to increase in 2012-13, spending decreased due to operational efficiencies that were found and implemented this year. It should also be noted that the Tribunal does not have any sunsetting programs.

Estimates by Vote

For information on the Transportation Appeal Tribunal of Canada's organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2013 (Volume II). An electronic version of the Public Accounts 2013 is available on the Public Works and Government Services Canada website (http://www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html).

Strategic Environmental Assessment

As a non-FSDS department, the Transportation Appeal Tribunal of Canada considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome

The Tribunal's strategic outcome is to provide the Canadian transportation community with the opportunity to have administrative or enforcement actions under Federal transportation Acts reviewed by an independent body.

Review and Appeal Hearings Program

The Tribunal's main activity is to hold Review and Appeal Hearings, providing an independent review process at the request of document holders in the aviation, marine, rail and international bridges and tunnels sectors. The Tribunal represents the only forum ensuring that document holders have access to an independent assessment governed by considerations of natural justice. Its role does not overlap with, nor is it duplicated by, any other Federal agency, board, commission or tribunal. It is unique in the transportation field in that its function is entirely adjudicative.

A number of factors accounted for the slight variance between the targeted timeframe for rendering decisions and the actual average timeframe that resulted. These factors included the availability of Members, the increase in the number of cases, and a backlog of Decisions awaiting review and final approval. Combined with scheduling delays due to the unavailability of both parties concurrently, this resulted in hearings not always being conducted in a timely manner.

A shift in priorities, combined with content reconsideration and revisions, accounted for the postponement of the revised web site launch.

Financial Resources – For Review and Appeal Hearings Program ($ thousands)
Total Budgetary Expenditures
(Main Estimates) 2012–13
Planned Spending
2012–13
Total Authorities
(available for use)
2012–13
Actual Spending (authorities used)
2012–13
Difference
2012–13
1,072 1,072 1,322 1,243 171
Human Resources (FTEs) – For Review and Appeal Hearings Program
Planned 2012–13 Actual 2012–13 Difference 2012–13
9 8 1
Performance Results – For Review and Appeal Hearings Program
Expected Results Performance Indicators Targets Actual Results
Access to an independent assessment governed by considerations of natural justice. Hearings conducted in a timely manner. 100% of decisions rendered within 120 days of a Hearing. Decisions rendered within 137 days for Reviews and 124 days for Appeals
Improved awareness and better information among the Transportation community and key stakeholders with respect to the Tribunal's mandate, services and decisions. Tribunal information accessible to the lay person in a timely manner. Ongoing Information is accessible in a timely manner
Participating in conferences and trade association meetings to enhance citizen engagement and public access to the Tribunal's program. Ongoing The Tribunal regularly participates in conferences and trade association meetings to enhance citizen engagement.
Promote the Tribunal's program in public events. Ongoing The Tribunal regularly participates in conferences and trade association meetings to promote the Tribunal's program
Building and maintaining communication partnerships with the Transportation community to help meet diverse needs. Ongoing The Tribunal regularly participates in conferences and trade association meetings to build its relationship with the Transportation community
Redesigning the Tribunal's Web site. Tribunal's Web site updated by March 31, 2013. The Tribunal's revised website was completed on July 5, 2013.

Performance Analysis and Lessons Learned

The program's effectiveness can be measured by its ability to provide the Canadian transportation community with the opportunity to have Ministerial decisions reviewed fairly, equitably and within a reasonable period of time.

The Tribunal encourages the use of pre-hearing conferences to assist the parties appearing before it, to identify the issues for determination by the Tribunal and to disclose and exchange documents. This reduces the length of the hearings and avoids last-minute adjournments necessitated by late disclosure of information.

Facilitating discussions between the parties has also been particularly effective in settling licence suspensions and the refusal to renew on medical grounds without the necessity of a Review Hearing. Cases settled by the parties without the need for a hearing increased by 10 per cent this year. For those cases that proceed to a hearing, the Tribunal Registrars contact the parties to schedule mutually agreed-to hearing dates to the extent possible to avoid unnecessary adjournments.

In 2011-12, the Tribunal referred 6 cases back to the Minister of Transport for reconsideration, pursuant to section 7.1 of the Aeronautics Act. In 2012–13, the Tribunal referred 5 cases back to the Minister for reconsideration, in light of the Tribunal lacking the power to substitute its own decision for that of the Minister in those cases. The average lapsed time between the conclusion of a Review Hearing and the issuance of a determination is 137 days and 124 days for an Appeal Hearing.

Lessons Learned

To promote communication between the parties with a view to settlement, the Registry encourages early disclosure of documents to the Document Holder or the Applicant. In order to resolve outstanding issues that may delay the scheduling of a Review or Appeal Hearing, the Registry will arrange a teleconference with a Tribunal Member.

In addition, experiences in aviation sector cases will prove valuable as marine and rail sector cases increase in complexity and frequency and will provide precedents in training sessions for new Members.

Internal Services

Financial Resources – For Internal Services ($ thousands)
Total Budgetary Expenditures
(Main Estimates) 2012–13
Planned Spending
2012–13
Total Authorities
(available for use)
2012–13
Actual Spending (authorities used)
2012–13
Difference
2012–13
340 340 340 342 2
Human Resources (FTEs) – For Internal Services
Planned 2012–13 Actual 2012–13 Difference 2012–13
3 3 3

The Tribunal underwent a Core Control Audit during the course of this fiscal year. The Audit Report is available on the Tribunal's web site. The Tribunal has taken note of the deficiencies outlined in the Report and is committed to working to improve its controls by seeking advice from its service partners. Through the advice received from third parties, the Tribunal will continue to implement changes to improve the delivery of its Internal Services.

Section III: Supplementary Information

Financial Statements Highlights

Condensed Statement of Operations and Departmental Net Financial Position

Condensed Statement of Operations and Departmental Net Financial Position (Unaudited) for the Year Ended March 31, 2013 (in dollars)
  2012–13 Planned Results 2012–13 Actual 2011–12 Actual $ Change (2012–13 Planned vs. Actual) $ Change (2012–13 Actual vs. 2011–12 Actual)
Total expenses 1,673,300 1,824,247 1,949,390 150,497 (125,143)
Total revenues - 39 - 39 39
Net cost of operations before government funding and transfers 1,673,300 1,824,208 1,949,390 150,908 (125,182)
Departmental net financial position (46,390) (50,547) (51,385) (1,157) 838

Condensed Statement of Financial Position

Condensed Statement of Financial Position (Unaudited) as at March 31, 2013 (in dollars)
  2012–13 2011–12 $ Change
Total net liabilities 259,275 193,151 66,124
Total net financial assets 193,791 133,600 60,191
Departmental net debt 65,484 59,551 5,933
Total non-financial assets 14,937 8,166 6,771
Departmental net financial position (50,547) (51,385) 838

Net liabilities consists mainly of accounts payable, accrued vacation pay and employee future benefits.Net assets consists mainly of amounts due from the Consolidated Revenue Fund.

Financial Statements

http://www.tatc.gc.ca/s2/s29/eng/financial-statements

Core Control Audit Report:

http://www.tatc.gc.ca/s2/s45/eng/audits

Supplementary Information Tables

All electronic supplementary information tables listed in the 2012–13 Departmental Performance Report can be found on the Transportation Appeal Tribunal of Canada's website.

Tax Expenditures and Evaluations Report

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits.  The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication.  The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

Section IV: Other Items of Interest

Organizational Contact Information

Transportation Appeal Tribunal of Canada
333 Laurier Avenue West, Room 1201
Ottawa, ON K1A 0N5
Telephone: 613-990-6906
Fax: 613-990-9153
Web Site: www.tatc.gc.ca

J. Richard W. Hall – Chairperson and CEO
Sonny Kim – Director, Corporate Services
Mary Cannon – Registrar (Ontario, Prairie & Northern and Pacific Regions)
Monique Godmaire – Registrar (Headquarters, Quebec and Atlantic Regions)