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Office of the Auditor General of Canada
Ottawa, Canada

For release after tabling (expected at 2 p.m. on
3 December 2002)

Previous commitments tie Canadian Space Agency's hands
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Chapter 7: Canadian Space Agency -- Implementing the
           Canadian Space Program 

Ottawa, 3 December 2002 -- Despite stable funding, the Canadian Space 
Agency is unable to carry out its required activities under the 
Canadian Space Program because of funding obligations that predate its 
creation, and the situation is likely to worsen in the next five 
years, says the Auditor General of Canada, Sheila Fraser, in her 
Report tabled today in the House of Commons.

"The hands of the Canadian Space Agency are tied," says Ms. Fraser. 
"It is unable to meet its existing commitments under the 
government-approved Canadian Space Program, and new initiatives must 
compete with existing programs for resources."

Perhaps best known for the Canadarm2 and the astronaut program, the 
Agency is highly visible both nationally and internationally. It 
co-ordinates civil space-related research, science, and technology; 
industrial development; and international co-operation for the federal 
government.  The Agency's core business is managing projects involving
industry, universities, and specialized research institutes; these 
contracts represent about 75 percent of the Agency's budget.

The Agency received $300 million in annual funding beginning in 
2002-03. However, it has experienced significant cost increases in 
projects with international partners. In the next five years, Canada's 
share of the costs of operating the International Space Station will 
consume about a third of the Agency's annual budget, making fewer 
resources available for projects under the Canadian Space Program.

The Report recommends that the Agency develop a new strategic plan 
that would clearly outline objectives and funding requirements for 
ongoing projects and new ones it considers essential. The Auditor 
General notes that the Agency is in the process of significantly 
increasing its permanent workforce, a move she considers premature.

"It's up to the Canadian Space Agency to make the case for its 
projects and up to Parliament to decide how much Canada should invest 
in space research," says the Auditor General.  "Only then should the 
Agency increase its permanent workforce."

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The chapter "Canadian Space Agency - Implementing the Canadian
Space Program" is available on the Office of the Auditor
General of Canada Web site,
   http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20021207ce.html

[Or available as a PDF file (656KB) at
http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20021207ce.html/
$file/20021207ce.pdf]

Information:

Communications
Tel.: (613) 952-0213, ext. 6292 
E-mail: communications{at}oag-bvg.gc.ca

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