Appearance Before the Committee of the Whole in the House of Commons - Supplementary Estimates (B) 2021–22: Other Government Departments’ Material

Issue

An additional  $11.0 million in funding was sought through Supplementary Estimates (B) on behalf of the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy. What will this funding be used for?

Response

• The Privy Council Office, on behalf of the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy, sought an additional  $11.0 million in funding for 2021–22 via Supplementary Estimates (B), following approval of $6.0 million under Supplementary Estimates (A).
• The Joint Public Inquiry operates independently from the Privy Council Office, and its funds are within a Special Purpose Allotment. Total costs of the inquiry are shared jointly with the Province of Nova Scotia, with the funding requests through Supplementary Estimates representing the federal share only.
• The initial funding allocation was based on preliminary estimates for previous commissions of inquiry and enabled operations to launch immediately following the order-in-council. The supplemental funding was sought upon completion of a full costing of the Commission’s planned activities to fulfill its mandate.
• The additional funding will enable the Commission to:
  • support participation by the victims and victims’ families, and other parties granted standing
  • support expert research and policy work in order to explain the causes, context and circumstances of the event and make recommendations to help prevent and respond to similar incidents in the future
  • continue to operate with the confines of public health measures as they pertain to the ongoing COVID‑19 pandemic, which have resulted in increased costs across many areas of the Commission’s operations, as investigation and document review could not be completed remotely

Background

• The Joint Public Inquiry into the Nova Scotia April 2020 Tragedy was announced in October 2020 and will continue until December 15, 2022. As part of its mandate, the Commission will provide a preliminary report in May 2022 and a final report in November 2022.
• The initial funding allocation for the Commission was based on historical commissions, as a full costing had yet to be completed. Privy Council Office absorbed the federal share of costs within its existing authorities for 2020–21; however, it sought additional funding for future years.
• Upon establishing its planned activities to fulfill its mandate, and the identification of parties with standing requiring financial support, the Commission finalized a full costing and identified a shortfall in existing approved authorities. As a result, supplemental funding was requested from both the federal and provincial governments.

Issue

On October 18, Alberta held a referendum on equalization, asking voters “Should section 36(2) of the Constitution Act, 1982 – Parliament and the government of Canada’s commitment to the principle of making equalization payments – be removed from the Constitution?”

Response

• We respect the right of Albertans to voice their views. We value the contributions of Albertans to our national debates, including on federal transfer programs.
• Alberta’s legislative assembly adopted a motion on November 18 to confirm the results of the referendum.
• Such a constitutional amendment would require a high level of support to be adopted, including that of Parliament and seven provincial legislatures, representing at least 50% of the Canadian population.
• The Government of Canada remains committed to ensuring Canadians in all provinces and territories are able to receive the services they need.

Background

Elections Alberta has confirmed that of the 1.1 million people who cast ballots in the referendum, 61.7% voted yes and 38.3% voted no. Turnout was approximately 39%. (Albertans also voted in a referendum on Daylight Saving Time and elected three Senate nominees in conjunction with the October 18 municipal elections.)

A positive result in a constitutional referendum is binding on the Government of Alberta, which, pursuant to provincial legislation, must take steps as soon as practicable to pursue the constitutional change (that is, the legislative assembly adopting a resolution to initiate the general procedure for amending the Constitution).

To amend the Constitution, the resolution of the Alberta legislative assembly must be supported by resolutions from the Senate and the House of Commons, and two thirds of the provincial legislative assemblies, representing at least 50% of the Canadian population. These resolutions must come within three years of the resolution being adopted by Alberta’s legislature.

Premier Kenney introduced a motion in the legislative assembly on October 26 asking Members of the Legislative Assembly to ratify the referendum results. Debate took place on November 3, 17 and 18, and the motion was adopted on November 18.

Once a resolution is received from the Alberta legislature, the Government of Canada will determine through what forum it will be considered.

Issue

Canada’s Constitution requires that federal electoral districts be reviewed every 10 years to reflect changes and movements in Canada’s population.

On October 15, 2021, as per the representation formula found in the Constitution, the Chief Electoral Officer of Canada, Stéphane Perrault, announced that the number of seats allocated to the provinces and territories will increase from 338 to 342 as follows:

• Alberta: plus three seats
• British Columbia: plus one seat
• Ontario: plus one seat
• Quebec: minus one seat

Response

• As members of the Committee may know, Canada’s Constitution requires that federal electoral districts be reviewed every 10 years to reflect changes and movements in Canada’s population to ensure Canadians are well represented.
• The Chief Electoral Officer calculates the number of House of Commons seats allocated to each province using the formula set out in the Constitution, along with the latest population estimates provided by Statistics Canada.
• Seat allocations calculated by the Chief Electoral Officer are done independently, with no government involvement.
• The procedures for carrying out the redistribution of federal electoral districts based on the seat allocations are set out in the Electoral Boundaries Readjustment Act, including the establishment of independent electoral boundary commissions in each province, which study, consult and report to Parliament on changes required to electoral districts.
• The independent commissions will begin their work following the final release of census data expected early in 2022.
• The Government of Canada acknowledges the ongoing, independent and non-partisan work of Elections Canada in supporting the independent Electoral Boundary Commissions.

Background

Every 10 years, after the census is completed, electoral districts and their boundaries are revised to reflect changes and movements in populations across Canada.

The process begins with the calculation of the number of electoral districts (House of Commons seats) allocated to each province. This calculation is completed by the Chief Electoral Officer based on Statistics Canada population estimates and using the representation formula found in section 51 and 51A of the Constitution Act, 1867.

Electoral district boundaries are subsequently redrawn within each province according to the Electoral Boundaries Readjustment Act. The Act sets out the roles and responsibilities, the process and the criteria for redistribution, and establishes the 10 non-partisan, independent electoral boundary commissions (one for each province) tasked with reviewing districts, undertaking public consultations, and making final decisions with respect to changes to the electoral districts in each of the provinces.

The government does not appoint members to the commissions. Provincial chief justices and the Speaker of the House of Commons are responsible for independently appointing members to electoral boundary commissions within each province.

On October 15, 2021, the Chief Electoral Officer, Stéphane Perrault, calculated that the number of seats allocated to the provinces and territories in the House of Commons will increase from 338 to 342 as follows:

• Alberta: plus three seats
• British Columbia: plus one seat
• Ontario: plus one seat
• Quebec: minus one seat

The commissions were established through an order-in-council on November 1, 2021. The Governor in Council is also required to issue a proclamation, which was published in the Canada Gazette on November 24, 2021. The commissions will begin their work following the final release of census data, expected in early 2022. The 18- to 20-month process is highly prescriptive and is intentionally designed to mitigate partisan interference in the process.

The commissions study, consult and report on any changes required to electoral districts based on the seat count. They are also each required to hold public consultations on the proposed changes and submit a report on the new electoral district boundaries to the Speaker of the House of Commons, expected in December 2022. A study by parliamentary committee will follow where members of Parliament can voice their views; however, final decisions rest with the commissions.

The 2022 redistribution process is completed when the Governor in Council signs a representation order identifying Canada’s future electoral districts, expected in September 2023. Changes to electoral districts will be applied in the first general election called at least seven months after the representation order is proclaimed.

Issue

Public Services and Procurement Canada (PSPC) is working to ensure supplier diversity, particularly from under-represented groups.

Response

• The government is modernizing procurement practices in order to streamline contracting processes and to make procurement processes easier, faster and more accessible for suppliers, particularly those from under-represented groups, to do business with the government.
• The government is leveraging procurement to increase supplier diversity and to help address important socio-economic and environmental issues.
• Increasing the participation of Indigenous businesses in federal procurement is an important part of the government’s agenda to generate economic opportunities for Indigenous people.
• PSPC is working with Indigenous Services Canada and the Treasury Board of Canada Secretariat, as well as in close collaboration with Indigenous partners, to have at least 5% of the value of federal contracts awarded to Indigenous businesses.
• Budget 2021 proposed $87.4 million over five years, and $18.6 million ongoing, to modernize federal procurement and to create opportunities for specific communities such as Indigenous peoples, women, LGBTQ2+^{Footnote 1} Canadians, racialized Canadians and young people.
• PSPC will continue to examine greater opportunities, including the use of targeted approaches, to increase diversity in future procurements to support greater inclusion and representation in federal procurement.

Background

The government is committed to increasing diversity in procurement, pursuing economic empowerment for specific communities and supporting Black entrepreneurs.

Issue

The global nature of supply chains puts procurements at the potential risk of the goods having been produced using forced labour and human trafficking.

Response

• The Government of Canada is committed to addressing the risk of forced labour and human trafficking in federal procurement supply chains through the National Strategy to Combat Human Trafficking.
• In line with the National Strategy, PSPC updated the Code of Conduct for Procurement to clearly outline Canada’s expectations for suppliers regarding human and labour rights.
• The Government of Canada has also undertaken a risk assessment of forced labour in goods procured by PSPC, and is identifying next steps to further protect procurement supply chains from exposure to forced labour, human trafficking and child labour.
• In addition, PSPC has implemented new anti-forced labour contracting clauses to be used in all goods contracts. These clauses will allow the department to terminate a contract if a good has been produced in whole or in part by forced labour or human trafficking.

Background

In May 2021, Rights Lab provided its risk assessment report to PSPC. This work had been contracted to identify which goods purchased by PSPC are at risk of having been produced using human trafficking, forced labour, and/or child labour. Rights Lab is a multidisciplinary group with expertise in human trafficking, based in the University of Nottingham, in the United Kingdom. The report contained recommendations that are informing the development of an evidence-based approach to addressing labour exploitation in federal procurement supply chains.

As part of planned actions under the National Strategy to Combat Human Trafficking, PSPC will also create information resources for suppliers to become better aware of potential risks in their supply chains (2021 to 2022), and create requirements for suppliers of high-risk goods to address risks in their supply chain (2022 to 2023).

In July 2020, clauses on ethical procurement and origin of work were added in new personal protective equipment contracts and in all newly issued Request for Proposals for personal protective equipment. The origin of work clause requires bidders to provide the name, address and country of manufacturers of the item, including subcontractors. The ethical procurement clause requires bidders to certify that they and their first-tier subcontractors comply with the same human rights and labour standards set out in the Policy on the Ethical Procurement of Apparel.

In November 2021, new contract clauses were implemented by PSPC that contain new obligations for contractors with respect to forced labour. These obligations are comprised of seven new contracting clauses to be used in all new contracts for goods. More specifically, PSPC will be able to terminate a contract where goods have been produced by forced labour or human trafficking. The obligations also protect PSPC, or federal departments for which PSPC issued the contract, from financial liability if imported goods are not released at the border because their importation is prohibited under the forced labour prohibition in the Act entitled Customs Tariff.

Issue

Public servants were confronted with numerous and significant pay issues following the launch of Phoenix in 2016. In response, PSPC has taken significant steps to improve pay administration services and stabilize pay.

Response

• The Government of Canada is committed to supporting employees and continues to take action on all fronts to resolve public service pay issues.
• PSPC has put in place over 2,500 systems enhancements and fixes, which have helped move the pay system to a much steadier environment.
• As a result, PSPC has increased the overall system stability and improved performance in payroll processing.
• PSPC has increased its compensation workforce fourfold since 2016, to more than 2,100 employees. This has increased the department’s ability to process incoming work within service standards, as well as address backlog cases.
• As of October 27, 2021, the backlog of financial transactions beyond the normal workload has decreased by 67% since the peak of January 2018, representing a reduction of 259,000 transactions.
• Over the same period, the overall queue of transactions waiting to be processed at the Pay Centre has decreased by 53%, representing a reduction of 335,000 transactions.
• Financial support is and will remain available for employees missing any of their pay. This support includes an emergency salary advance or priority payment.
• Flexible measures have been put in place to help minimize financial hardships for employees for the repayment of overpayments related to Phoenix pay system issues.
• While there is still much work to do, the government continues to progress toward pay stabilization to ensure federal government employees across Canada are paid accurately and on time.

Background

Issue

PSPC continues to work with the Public Health Agency of Canada, Health Canada, and Innovation, Science and Economic Development Canada, along with the COVID‑19 Vaccine Task Force, to procure COVID‑19 vaccines, therapeutic drugs and related supplies.

Response

• Since July 2021, Canada has maintained a steady supply of doses for every eligible person who wants one.
• As an ongoing priority, PSPC continues to work with vaccine suppliers to manage the delivery of doses to Canadians, the supply for future needs, as well as donations of surplus doses to support international efforts.
• Earlier this year, Canada secured future supply deals with Pfizer and Moderna that include access to pediatric doses to ensure timely vaccination of Canadian children.
• The Government of Canada and Pfizer announced an agreement for an accelerated delivery schedule for pediatric doses, which received regulatory approval on November 19, 2021.
• Through this agreement, Canada received 2.9 million doses the week of November 22, enough supply to administer first doses for all eligible children five to 11 years old.
• Canada is continuing to evolve its vaccine procurement strategy based on the best scientific advice available, which includes working with vaccine suppliers to secure new formulations for variants, boosters and pediatrics as they become available.

Background

The federal government has allocated over $9 billion for vaccine procurement, and the Public Health Agency of Canada is responsible for managing this funding. Pfizer, Moderna, AstraZeneca and Johnson & Johnson vaccines have been approved. Vaccine candidates from Sanofi, Medicago and Novavax have started their regulatory submissions. Through this process, Health Canada will review the safety, efficacy, and manufacturing quality for each vaccine to determine whether individual vaccines will be approved for use in Canada.

The Government of Canada has signed agreements in principle with the following companies to obtain access to their products:

• AstraZeneca: 20 million doses of its viral vector vaccine Vaxzevria
• Sanofi and GSK: up to 72 million doses of their protein subunit vaccine candidate
• Johnson & Johnson: up to 38 million doses of its viral vector vaccine Ad26.COV2.S
• Novavax: up to 76 million doses of its protein subunit vaccine candidate NVX-CoV2373
• Pfizer: up to 50 million doses of its mRNA vaccine Comirnaty, plus future supply of up to 185 million doses from 2022 to 2024
• Moderna: 44 million doses of its mRNA vaccine Spikevax, plus future supply of up to 105 million doses from 2022 to 2024
• Medicago: up to 76 million doses of its plant-derived coronavirus virus-like particle vaccine candidate (CoVLP)
• Serum Institute of India/Verity Pharmaceuticals: supplied 500,000 doses of the Oxford-AstraZeneca vaccine produced under licence and marketed as COVISHIELD

Issue

The National Shipbuilding Strategy is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy and Canadian Coast Guard, create a sustainable marine sector, and generate economic benefits for Canadians. Cost increases and schedule delays are expected for many projects due to COVID‑19-related disruptions and other factors.

Response

• The National Shipbuilding Strategy is about Canadians and Canadian businesses working together to strengthen and renew Canada’s naval and coast guard fleets.
• So far, five large vessels and numerous small ships have been delivered, and many more are under construction across Canada.
• As of September 30, 2021, the Government of Canada has awarded $20.87 billion in National Shipbuilding Strategy–related contracts to businesses throughout the country.
• National Shipbuilding Strategy contracts are estimated to contribute approximately $20.07 billion ($1.82 billion annually) to Canada’s gross domestic product and create or maintain close to 16,931 jobs annually, through the marine industry and its Canadian suppliers and consumer spending, between 2012 and 2022.

If pressed on Auditor General and Parliamentary Budget Officer reports

• Shipbuilding is highly complex, and the Government of Canada continues to build on lessons learned and work closely with the shipyards and industry to address ongoing challenges, including costs, estimated timelines and productivity.

If pressed on COVID‑19 impact on shipbuilding

• The Government of Canada is committed to protecting the health and safety of Canadians and keeping our workforces safe.
• Due to COVID‑19, several defence procurement projects have slowed, including the construction and maintenance of ships, and we are continually assessing the impact of these delays on the delivery of major procurement projects.

Background

Under the National Shipbuilding Strategy, the Government of Canada is building large vessels at Irving Shipbuilding Inc. in Halifax, Nova Scotia, and at Seaspan’s Vancouver Shipyards Co. Ltd. in Vancouver, British Columbia. These shipyards were selected in October 2011 following an open and fair competitive process. A process to select a third National Shipbuilding Strategy shipyard is underway.

Issue

Supplementary Estimates present information on additional spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have been subsequently adjusted to account for developments in programs and services.

Response

• Shared Services Canada will invest additional funding to provide modern, reliable and secure information technology (IT) infrastructure in support of government priorities and digital delivery of programs and services to Canadians.
• With the approval of Supplementary Estimates (B), Shared Services Canada’s authorities to date will increase by $44.0 million, from $2.27 billion to $2.31 billion. This increase is attributable to the following item included in Shared Services Canada’s Supplementary Estimates (B):
  • new funding of $44.0 million, including $0.4 million for the Employee Benefit Plan, to enhance the reliability and security of Government of Canada IT networks
• This funding will support the Secure Cloud-to-Ground operational activities and thereby support Shared Services Canada in delivering up to Protected B secure cloud connectivity to partner departments.

Background

With the approval of Supplementary Estimates (B), Shared Services Canada’s authorities to date will increase by $44.0 million, from $2,265.2 million to $2,309.2 million.

The $44.0 million (Vote 1:  $20.3 million; Vote 5: $23.3 million; Statutory (Employee Benefit Plan): $0.4 million) increase in the Supplementary Estimates (B) is attributable to the following:

Issue

There are concerns that when large numbers of public servants return to the worksite, the underlying IT infrastructure will not function effectively.

Response

• From the onset of the COVID‑19 pandemic, Shared Services Canada rapidly and effectively responded through enabling remote work for thousands of public servants, ensuring continued service delivery to Canadians.
• In fact, over 16 days between March and April 2020, Shared Services Canada grew the capacity on the Canada Revenue Agency’s systems from being able to support 1.5 million daily Canadian logins on the agency portals to 4 million daily logins, and up to 1.5 million daily Canada Emergency Response Benefit applications.
• Prior to pandemic, only roughly 135,000 simultaneous remote connections were possible. During the pandemic, Shared Services Canada quickly increased this to permit over 300,000 concurrent connections, thereby ensuring the public service could continue serving Canadians.
• Shared Services Canada will continue to ensure service delivery to Canadians by public servants, whether it is from their home-based office or Government of Canada worksites, all while following the guidance from the Treasury Board Secretariat Office of the Chief Human Resources Officer.
• Shared Services Canada is also collaborating with partner departments to prioritize Government of Canada worksites to enable a smooth return for its public servants, and will continue to work with departments to ensure that government services and will continue to work with departments to ensure that government services and resources have the ability to be accessed remotely by Canadians.

Background

Video conferencing, mostly via Microsoft Teams, has become the de facto communication channel given the work from home environment.

These technologies use much more bandwidth. As a result, the same user experience cannot be supported from within Government of Canada buildings, nor is it clear that extensive video conferencing will be required post return to worksite.

There are in excess of 3,500 buildings connected to the Government of Canada’s network.

It is not required, feasible or cost-effective to upgrade all of the sites. Shared Services Canada is focused on prioritizing, with our client departments, the most critical sites in support of Canadians and government operations.

The work required to address return to worksite is not solely Shared Services Canada’s. Each department must engage in proactive testing, analysis of their respective operations and implementing best practices.

Issue

Update on the Next Generation Human Resources and Pay initiative

Response

• Every public servant should be paid accurately and on time.
• Shared Services Canada is testing HR and pay systems to replace 34 HR systems across government and the current pay system.
• Next Generation Human Resources and Pay will be a user-centric, accessible and flexible cloud-based solution. It will work on an enterprise scale and meet the complex needs of the Government of Canada and the diverse needs of federal employees throughout Canada, now and into the future.
• The Government of Canada has a contract in place with Ceridian to deliver the services to support the design and experimentation phase of the Next Generation Human Resources and Pay pilot.
• Any testing undertaken will not affect employees’ actual pay. All testing for the Next Generation Human Resources and Pay initiative will continue to take place in parallel with existing systems, and all testing has been designed to ensure the protection of privacy and personal information.
• At the end of the test period in 2023, we hope to have enough information to make informed recommendations for the path forward.
• Ongoing stabilization of the current Government of Canada pay system (Phoenix) remains a top priority for the government and is being managed by PSPC.

Background

Budget 2018 announced the government’s intention to move away from the current pay system and begin the development of a new one that will be better aligned with the complexity of the federal government’s human resources and pay structure.

The Treasury Board of Canada Secretariat received $16 million over two years, beginning in 2018–19, to explore replacement options for a Next Generation Human Resources and Pay (NextGen HR and Pay) solution.

In summer 2019, the government announced it had selected SAP, Workday and Ceridian as the vendors deemed qualified to deliver a NextGen HR and Pay solution for the Government of Canada.

In September 2019, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.

In March 2020, after extensive evaluation, and testing, it was announced that SAP had been selected to work with our team on a pilot for a new HR and Pay solution.

Effective April 1, 2020, leadership for NextGen HR and Pay was transitioned from Treasury Board of Canada Secretariat to Shared Services Canada.

On October 14, 2020, the selection of Canadian Heritage for the exploratory phase of the Next Generation HR and Pay initiative was announced.

Throughout this process, the NextGen HR and Pay team is engaging with public service employees, leaders, HR advisors and technical specialists, as well as working hand in hand with bargaining agents in the development of a user-centric HR and pay solution.

The exploratory phase was completed in April 2021.

A pilot expansion was announced on July 27, 2021, to include the following testing departments for future pilots: Fisheries and Oceans Canada, the Canadian Coast Guard, and Canada Economic Development for Quebec Regions.

A contract amendment with Ceridian was signed on September 14, 2021, and posted to Buyandsell.gc.ca on September 21, 2021. The Government of Canada followed a fair, open and transparent, agile procurement process in the negotiation of this contract.

Through the design and experimentation phase, a pilot exercise will first be conducted with Canadian Heritage to assess whether the Ceridian solution could potentially support the Government of Canada with regards to HR and Pay.

Leading up toward March 2023, the NextGen HR and Pay initiative will carry out additional tests, layering on complexity and a feasibility study.

Issue

As Shared Services Canada modernizes Government of Canada IT service delivery, it must also capitalize on opportunities to use available levers and think bigger with respect to how government can achieve greater social value, strengthen innovation, and promote green and inclusive growth.

Response

• In fulfilling its role to stabilize, maintain and enhance digital capacity across government, Shared Services Canada ensures that supplied goods are of high quality, procured at the best value and provided in a timely fashion.
• Shared Services Canada conducts fair, open and transparent procurement processes in compliance with domestic and international trade agreements and within the government’s procurement policy framework.
• Whenever possible, Shared Services Canada uses competition to get the best value for Canadians, and adheres to open government principles by proactively disclosing all contracts over $10,000.
• As government IT service delivery is modernized, the Government of Canada is making procurement more agile, collaborative and inclusive to promote social values, as well as environmental sustainability.

If pressed on sole sourcing

• Occasionally, it is necessary for Shared Services Canada to issue a non-competitive contract where equipment must be compatible with existing IT infrastructure, but such contracts are avoided wherever possible.
• Shared Services Canada executed 2,855 procurement processes for the Government of Canada in fiscal year 2020–21. Of these, 79% were made through the use of open, fair and transparent competitive processes, for a total spend of roughly $795 million.
• In fiscal year 2020–21, 67% of contracts awarded by Shared Services Canada went to small and medium-sized enterprises (SMEs).

Background

In all instances where bids are not solicited, the legal authority to use an exception to soliciting bids must be fully justified with a reference to the applicable exception to competitive bidding which may apply under the Government Contracts Regulations.

With respect to procurements subject to one or more trade agreements, Shared Services Canada may award a contract without soliciting bids, only if one or more of the limited tendering reasons stated in each applicable trade agreement can be applied.

During fiscal year 2020–21, Shared Services Canada awarded 8,881 contracts valued at approximately  $1.86 billion, and 58% of the volume of contracts (83% of the value) was awarded through a competitive process.

Shared Services Canada also considers the provisions under Comprehensive Land Claim Agreements.

Shared Services Canada proactively discloses all awarded contracts over $10,000.

While work is already in motion to modernize procurement so that it is more agile, collaborative and inclusive, there are significant opportunities to continue to “buy better” and transform how IT procurement and service delivery is done within Canada:

• Diversity and inclusion: Establish an exemplary model for IT procurements and service delivery to drive fair and inclusive business practices in Canada, and level the playing field for SMEs as well as Indigenous and under-represented groups, and vendors operating across Canada, including in rural and remote communities, and broaden participation in IT service design and delivery.
• Greening Government Strategy: Send strong market signals that government is serious about protecting the environment, incentivize an accelerated transition to greening and circularity for the IT sector and beyond by setting ambitious greening targets and requirements, and take action to ensure new private sector accountabilities.
• Innovation, growth and digital enablement: Strategically establish Shared Services Canada as a convener of IT innovators and service providers, a first-in-class adopter of emerging technology and IT infrastructure, and a catalyst for the digital enablement of all Canadians.

Issue

2021–22 Supplementary Estimates (B): Funding to advance a National Action Plan to End Gender-based Violence (Budget 2021)

Response

• The Government of Canada is committed to building a country free of gender-based violence.
• Budget 2021 invests $601.3 million over five years, starting in 2021–22, to advance toward a National Action Plan to End Gender-Based Violence.
• Through Supplementary Estimates (B), Women and Gender Equality Canada is requesting adjustments to the funding it received in the Supplementary Estimates (A) to advance toward a National Action Plan to End Gender-Based Violence to align with the funding profile approved in June 2021.
• No new funding is resulting from this reallocation.

Background

• Supplementary Estimates are part of the normal parliamentary approval process to ensure that previously planned government initiatives receive the necessary funding to move them forward, therefore meeting the needs of Canadians.
• These are the second Supplementary Estimates to be published in 2021–22 and, as such, are identified as Supplementary Estimates (B). It is expected that the Appropriation Act will receive royal assent in December 2021.
• The department received $103 million in funding via Supplementary Estimates (A) to advance toward a National Action Plan to End Gender-Based Violence. This funding was allocated based on the information available at the time of the approval of Supplementary Estimates (A) and prior to obtaining approval of a funding profile.
• Following the approval of the funding in June 2021 related to the Budget 2021 item, Advancing a National Action Plan to End Gender-Based Violence, some adjustments are required in Supplementary Estimates (B) to properly reflect the funding authorized. No new funding will result from this reallocation.
• The result of these adjustments is an increase to the department’s grants and contributions (Vote 5) of $7.1 million via:
  • a reduction of $5.5 million from its Operating Expenditures vote
  • a reduction of the Statutory Vote of  $1.6 million
• To note, the funding announced in Budget 2021 for the LGBTQ2^{Footnote 3} Secretariat ($7.1 million over three years) and the LGBTQ2 Projects Fund ($15 million over three years) is not included in the Supplementary Estimates (B). The department is in the process of obtaining approvals to secure the funding.

Issue

How is Women and Gender Equality Canada addressing the gendered impacts of COVID‑19?

Response

• The Government of Canada is committed to addressing the gendered impacts of the COVID‑19 pandemic, as we know that different populations, particularly women, have been disproportionately affected.
• To respond, Women and Gender Equality Canada:
  • delivered approximately $100 million to organizations providing critical supports and services to women and children experiencing violence during the pandemic
  • is ensuring that response measures are informed by gender-based analysis plus
  • is investing $100 million through the Feminist Response and Recovery Fund
• Overall, the Government of Canada is committed to tackling systemic barriers, reversing the “she-cession” and removing obstacles to women’s full participation in the economic recovery by:
  • investing $601.3 million over five years, starting in 2021–22, to advance toward a new National Action Plan to End Gender-Based Violence
  • investing $30 billion to establish a Canada-Wide Early Learning and Child Care Plan to drive economic growth and increase women’s participation in the workforce
  • investing  $146.9 million to strengthen the Women Entrepreneurship Strategy to increase access to financing, mentorship and training

Background

Issue

How is the Government of Canada working to end gender-based violence?

Response

• Everyone has the right to live free from violence. The COVID‑19 pandemic has amplified and reinforced the need for and urgency of a National Action Plan to End Gender-Based Violence.
• Budget 2021 includes more than  $3 billion over five years and close to $200 million ongoing to advance initiatives that prevent and address gender-based violence, including:
  • $601.3 million over five years to advance a new National Action Plan to End Gender-Based Violence, including  $415 million for Women and Gender Equality Canada
  • $2.2 billion over five years and $160.9 million ongoing to build a safer, stronger and more inclusive response to the tragedy of missing and murdered Indigenous women and girls
  • $236.2 million over five years and $33.5 million ongoing to National Defence and Veterans Affairs Canada. This includes $158.5 million over five years and $29.9 million per year ongoing from existing resources to expand work to eliminate sexual misconduct and gender-based violence in the military and support victims and survivors
• This will complement ongoing work under It’s Time: Canada’s Strategy to Prevent and Address Gender-Based Violence, launched in 2017, which committed more than $200 million over five years and over $40 million per year ongoing, to advance efforts to prevent gender-based violence, support survivors and their families, and promote responsive legal and justice systems.

Background

Gender-based violence is one of the most pervasive, deadly and deeply rooted human rights violations of our time, and the Government of Canada is committed to preventing and addressing it. Gender-based violence is a significant barrier to achieving gender equality, and it is preventable.

Certain populations are at significantly greater risk of experiencing gender-based violence, including women and girls, and more specifically, young women and girls, Indigenous women and girls, two-spirit, LGBTQQIA+ and gender-non-binary individuals, women living in northern, rural and remote communities, and people living with disabilities. Qualitative research also suggests that Black, other racialized and newcomer women to Canada may experience high levels of gender-based violence.

Issue

How is the government supporting Canada’s youth?

Response

• Youth in Canada are more diverse, socially engaged and educated than ever before.
• The Government of Canada is committed to ensuring youth are at the centre of Canada’s recovery.
• We are advancing several measures to invest in their future success, and the future success of our economy, including:
  • Canada’s Youth Policy, which reflects the values and priorities of young Canadians, amplifies the voices of young people on matters of importance to them, and creates more opportunities for young people to build a stronger and more inclusive Canada
  • the Prime Minister’s Youth Council, which is a platform for youth to share their perspectives with the Prime Minister and the Government of Canada on issues of importance to them, to their communities and to all Canadians
  • the Student Work Placement Program, which creates quality work placements for post-secondary students in all disciplines through partnerships between industry and post-secondary institutions
  • the Youth Employment and Skills Strategy, which provides skills training, supports and work opportunities for youth who face multiple barriers to employment
  • Canada Summer Jobs, a key program under the strategy, which provides more youth, particularly youth who are under-represented in the labour market, with access to their first job experiences
  • the Canada Service Corps, which promotes civic engagement among young people through access to meaningful volunteer service opportunities

Background

“Youth” is generally defined as the stages between adolescence to early adulthood, and is often culturally seen as a transition toward autonomous adulthood and its associated responsibilities and practices. Youth (the most expansive definition being ages 10 to 34) represent up to one third of the population of Canada. For the Youth Employment and Skills Strategy, youth between 15 and 30 are eligible for programs.

Question

Why are the Innovation Science and Economic Development (ISED) portfolio organizations under your responsibility requesting $165.7 million in funding through Supplementary Estimates (B)?

Response

• Four organizations under the Innovation, Science and Economic Development portfolio are requesting a total of $165.7 million through these Estimates:
  • Innovation, Science and Economic Development: $20.3 million
  • National Research Council Canada: $114.8 million
  • Natural Sciences and Engineering Research Council of Canada: $22.6 million
  • Social Sciences and Humanities Research Council of Canada: $8.0 million
• The funding requested supports priority Budget 2021 investments. To name a few:
  • $1.4 billion over four years to ISED for the new Canada Digital Adoption Program to support Canadian SMEs. This program falls under the purview of the Minister for International Trade, Export Promotion, Small Businesses and Economic Development.
  • $500 million over five years, and $100 million per year ongoing to increase National Research Council Canada’s Industrial Research Assistance Program’s funding to support up to 2,500 additional Canadian innovative SMEs. The Industrial Research Assistance Program provides advice, connections and funding to help Canadian small and medium-sized businesses increase their innovation capacity and take ideas to market.
  • $46.9 million over two years to the Natural Sciences and Engineering Research Council of Canada to research partnerships between colleges, CEGEPs, polytechnics and businesses.

Background

Issue

The Government of Canada is working toward supporting a transition toward the electrification of the transportation sector. Challenges impacting a path forward include the COVID‑19 pandemic, the semiconductor shortage, natural disasters and changes in consumer preferences.

Response

• The government is aware of the strength of Canada’s automotive sector and the importance of the sector for the economy, environment and for Canadians.
• The government is committed to leading Canada’s transition toward electrification and is working closely with stakeholders to ensure that it aligns with the Government of Canada’s commitments and the sector’s needs.
• The government has demonstrated a strong commitment toward Canada’s automotive manufacturing sector, and the sector has responded with unprecedented levels of investment in recent years, including supporting the introduction of battery-electric vehicle production at Canadian assembly plants, but we know electrification brings uncertainty and change.
• Ensuring we navigate this change with industry is paramount, and the government has instituted a number of federal initiatives, including significant investments in charging and refuelling infrastructure, the Zero-Emission Vehicles Program and awareness efforts.
• We have also made key investments within the sector to help transform vehicle manufacturing, including $295 million for Ford to retool their Oakville Assembly Complex to produce up to five battery electric vehicles and $50 million for Lion Electric to construct a battery pack assembly plant.

Background

The COVID‑19 pandemic has brought significant uncertainty for the global automotive sector, with sales experiencing significant declines and supply chain disruption. Automotive manufacturers have been faced with having to find efficiencies and to rethink their planned investments to adapt to the new fiscal and supply chain realities.

Running parallel to the global pandemic, there has been the push by leading automotive manufacturing jurisdictions to accelerate electrification of the industry to meet Paris Agreement commitments, many of which have been enhanced in the preceding years. This has led to significant investments by automakers in production, innovation and setting the stage for an entirely new battery and critical mineral supply chain.

For example, Ford has committed to investing $1.8 billion in its Oakville plant to produce up to five electric vehicles, including the associated electric vehicle battery packs. These electric vehicles are expected to roll off the line between 2025 and 2028. Similarly, Stellantis has indicated that it will invest between $1.3 billion and $1.5 billion in Windsor, Ontario, adding a new line capable of producing electric vehicles. The manufacturing of zero-emissions vehicles (ZEVs) in Canada will also have positive effects on the Canadian supply chain for parts suppliers of ZEV components, including battery manufacturing and the mining of critical minerals.

Although the industry quickly ramped up to full production in late spring 2020 with positive forecasts for a strong recovery, the sector has been plagued by an ongoing shortage of semiconductors, which has limited production capacity and reduced sales. Several factors have played a role in driving the shortage, including increased demand for consumer electronics, supply chain issues, natural disasters, and more recently, a COVID‑19 outbreak in Malaysia, where the final assembly of many semiconductors occurs. Throughout 2021, forecasted impacts have continued to worsen, with recent estimates suggesting that close to 8 million units of production will be lost globally and will cost the automotive industry US$210 billion in foregone revenue by year-end.

Despite this, the Government of Canada continues to leverage its existing strengths to forge a path forward. In June 2021, the Government of Canada revised its 100% ZEV sales target from 2040 to 2035 and will work with partners to develop targets for 2025 and 2030. The government also publicly committed to align with the most stringent emission standard in North America (federal or state level).

A key strength is Canada’s natural resources. Canada is one of the only countries in the western hemisphere with all of the minerals (cobalt, graphite, lithium and nickel) required for batteries, a key piece to supporting the acceleration of the transition of Canada’s existing automotive and transportation sector to support electrification. The government is committed to supporting Canada’s companies become more competitive and supporting the attraction of new players in the electric vehicle space.

Issue

The Guidelines on the National Security Review of Investments were updated in March 2021 to include new factors (sensitive technology areas, sensitive personal data, and critical minerals) that may give rise to a national security order under the Investment Canada Act.

Response

• Foreign investment fuels innovation and helps businesses enabling economic growth that benefits all Canadians. At the same time, we have a responsibility to ensure that foreign direct investment does not bring with it national security threats.
• In March 2021, the government updated the Investment Canada Act’s national security guidelines to provide increased transparency and certainty for Canadian businesses and investors.
• This update specifically addresses national security concerns relating to investments involving potentially sensitive technologies, sensitive personal data, and the security of critical mineral supply chains, as well as investments by foreign-owned or influenced investors.
• The government’s actions are based on facts and evidence, and the advice of Canada’s security and intelligence agencies.
• We never have and never will compromise Canada’s national security, and will take action where necessary to protect national security.

Background

In addition to economic net benefit reviews, the Act provides for the national security review of all foreign investments. This process is undertaken in consultation with the Minister of Public Safety and Canada’s national security and intelligence agencies. Information on the administration of the Act’s national security provisions has been published in the Act’s annual report since 2016, and in the Guidelines on the National Security Review of Investments, which were first published in 2016 and were updated in March 2021. The guidelines include a non-exhaustive list of factors that are considered in assessing the national security risks of a transaction and information on how to engage the regulatory process. The guidelines do not change any existing authorities under the Act.

The update to the guidelines followed the April 2020 Policy Statement on Foreign Investment Review and COVID‑19 on the enhanced scrutiny of certain investments, which will remain in place until the economy recovers from the pandemic. The updated guidelines include additional information on potentially sensitive technology areas, sensitive personal data and critical minerals. They also indicate that the enhanced scrutiny of all investments by state-owned enterprises and private investors assessed as being closely tied to or subject to direction from foreign governments, originally announced in the COVID‑19 Policy Statement, will continue.

The guidelines strongly encourage foreign investors, particularly where they are state-owned or subject to state influence, or in cases where the factors listed in the guidelines may be present, to contact the government at the earliest stages of the development of their investment projects to discuss their investment and, where applicable, to file a notification or an application for net benefit review at least 45 days prior to planned implementation.

Issue

Canadians are concerned about the price of cellphone services and government efforts to reduce these prices.

Response

• The Government of Canada has been clear that greater affordability, competition and innovation in the Canadian telecommunications sector is important.
• That’s why the government has introduced measures to make wireless services more affordable, including through our spectrum policies and keeping providers accountable for their pricing.
• The government continues to build on the progress made to promote competition and further reduce prices.

Background

Issue

How is the Government of Canada supporting competition and innovation among Internet service providers?

Response

• Having the right wholesale framework will help ensure competitive options, while maintaining continued investment in high-quality networks and expanded access for all Canadians.
• Pro-consumer measures are also in place. This includes the Wireless Code, which has provisions against “bill shock,” and the Commission for Complaints for Telecom-television Services, which is empowered to address consumer complaints.
• Billions of dollars have been committed via programs like the Universal Broadband Fund to support affordable high-speed Internet across Canada.
• Furthermore, the government’s Connecting Families initiative is an important public-private partnership that allows low-income Canadian families to access discounted home Internet services.

Responsive on CRTC wholesale rates and associated appeals

• The government is following the process under the Telecommunications Act and reviewing the decision to ensure it aligns with our priorities of affordability, competition and innovation in the sector.

Background

Federal-Provincial Broadband Funding Agreement

The governments of Canada and Quebec signed a  $920 million co-funding agreement to connect 166,000 households in the province to high-speed Internet by September 2022. All of the Universal Broadband Fund funding for the fiscal year 2021–22, including for Quebec, has been secured through Supplementary Estimates (A).

Response

• The Government of Canada launched the $2.75 billion Universal Broadband Fund in November 2020, with a goal of connecting 98% of Canadians to high-speed Internet by 2026 and all Canadians by 2030.
• The Government of Quebec shares our goal of closing the digital divide in rural and remote areas.
• The Government of Quebec approached the Government of Canada with a set of pre-approved broadband projects which met the terms and conditions of the Universal Broadband Fund program including coverage, Internet speeds and timeline.
• Together, we jointly announced Canada–Quebec Operation High Speed, and are each committing half of the $920 million fund to connect more than 166,000 households in the province.
• We are committed to working with the Government of Quebec to ensure all Quebecers are connected to high-speed Internet. The Government of Quebec set an ambitious timeline, and we look forward to watching the progress against our significant commitment.
• We have also made a significant announcement with the Government of Ontario for co-funding of $1.2 billion to connect 280,000 households.
• We continue to work closely with provinces and territories, and look forward to being able to confirm our plans for projects all across Canada.

Background

Issue

What funding is the Government of Canada providing to Black-led businesses?

Response

• Many Black entrepreneurs and business owners face systemic barriers on a daily basis when they operate their venture. They have also been disproportionately affected by the COVID‑19 pandemic.
• The Government of Canada has acted to address those systemic barriers to create stronger economic opportunities for the Black Canadian business community and build a more inclusive future for everyone.
• Last year, the government created the first-ever Black Entrepreneurship Program with an investment of up to $265 million, including an investment of $130 million from the Business Development Bank of Canada in the Black Entrepreneurship Loan Fund to support the next generation of Black Business Development Bank of Canada entrepreneurs
• Black entrepreneurs and business owners make invaluable contributions to Canada’s economy every day. For far too long, they have been confronted by barriers that have hindered their progress.
• The government announced an initial investment of $50 million over four years starting in 2021–22 through the Black Entrepreneurship Program Ecosystem Fund to provide funding to Black Canadian business support organizations. As a result of tremendous response to the call for concepts, Budget 2021 invested an additional $50 million in this important program. The Regional Development Agencies announced the first batch of Ecosystem Fund recipients in August 2021, and continue to review applications with the view to announcing another set of successful recipients.
• The loan fund, now a total investment of $160 million, aims to provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada. The loan fund is administered by the Federation of African Canadian Economics, in partnership with the Business Development Bank of Canada. The fund started accepting applications on May 31, 2021.
• The successful recipient of the Knowledge Hub will be announced in the coming weeks.

Background

The Black Entrepreneurship Program is an investment of up to $265 million over four years, in partnership with the Business Development Bank of Canada, that will help address the systemic barriers that Black business owners and entrepreneurs face, providing targeted support and increased access to capital.

Originally announced in September 2020, the Black Entrepreneurship Program is composed of three main components, with funding as follows:

• Up to $100 million (including $50 million from Budget 2021) to develop and implement a new National Ecosystem Fund to support Black-led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services and business training.
• Up to $30 million in support through the new Black Entrepreneurship Loan Fund that will provide loans of up to $250,000 for Black business owners and entrepreneurs. The government is also partnering with the Business Development Bank of Canada ($130 million).
• Up to $5 million to create and sustain a new Black Entrepreneurship Knowledge Hub that will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success as well as opportunities for growth. The hub will be run by Black-led community and business organizations, in partnership with educational institutions.

In addition to increasing funding available to Black entrepreneurs through the Black Entrepreneurship Loan Fund, the Black Entrepreneurship Program will help Black business owners and entrepreneurs by strengthening business and mentorship supports in their communities through Black-led business organizations (National Ecosystem Fund) and by better capturing the experiences and challenges of doing business as a Black Canadian through the new Black Entrepreneurship Knowledge Hub.

The Loan Fund includes a pilot micro-loan program for Black entrepreneurs and business owners in British Columbia and Ontario seeking micro-loans between $10,000 and $25,000. The pilot, delivered by the Federation of African-Canadian Economics in partnership with credit unions Vancity and Alterna Savings, will help address a critical gap in the marketplace for Black businesses who need less financial support to start up and grow.

Issue

To provide an update on the Canada Digital Adoption Program, a $1.4 billion investment over four years, starting in 2021–22, to help SMEs adopt new digital technologies.

Response

• As part of Budget 2021, the Government of Canada announced the Canada Digital Adoption Program to help Canadian SMEs move into the digital era. There are two complimentary components to the program: Grow Your Business Online and Boost Your Business Technology.
• Grow Your Business Online will assist up to 90,000 small, consumer-facing businesses take advantage of e-commerce opportunities by providing advisory services, as well as micro-grants of up to  $2,400 to help with the costs related to adopting digital technologies.
• It will also support up to 11,200 young Canadians who will be trained as youth digital advisors and deployed to these small businesses to facilitate the implementation of their e-commerce strategies.
• Boost Your Business Technology will assist up to 70,000 small and medium-sized businesses that require more complex technology adoption. These businesses will be able to access a grant to cover up to 90% of the cost of advisory services to develop a digital adoption plan, to a maximum grant value of $15,000.
• The business will then have access to a zero-interest loan of up to $100,000 through the Business Development Bank of Canada to implement their digital adoption plan. Budget 2021 earmarked an additional $2.6 billion for the Business Development Bank of Canada for Canada Digital Adoption Program loans. This stream will also support work placements for up to 16,800 Canadian youth to work with Canada Digital Adoption Program companies that are undertaking digital transformation.
• The calls for applications from not-for-profit organizations to provide youth placement services are closed for both streams, and the selection of intermediaries is currently underway. It is expected that Canada Digital Adoption Program program services will be available in winter 2022.
• The Boost Your Business Technology stream will be delivered through a combination of support measures. The Call for Registration for Digital Advisory Services was launched on August 13, and as of November 15, 192 applications have been received. The Canada Digital Adoption Program Portal is in development, which will allow small and medium-sized businesses to apply for the grant, complete the Digital Needs Assessment tool and access the digital advisor marketplace.

Background

Budget 2021 announced the creation of the Canada Digital Adoption Program to help SMEs adopt new digital technologies. It is a $1.4 billion investment over four years, starting in 2021–22, for ISED to:

• work with organizations across Canada to provide access to skills, training and advisory services for all businesses accessing this program
• provide micro-grants to smaller businesses to support costs associated with technology adoption
• help larger businesses with the development and implementation of digital adoption strategies
• create training and work opportunities for as many as 28,000 young people to help small and medium-sized businesses across Canada adopt new technology

Budget 2021 also announced $2.6 billion on a cash basis over four years, starting in 2021–22, to the Business Development Bank of Canada to help SMEs finance technology adoption, bringing the government’s total investment to help move SMEs into the digital age to $4 billion.

As noted above, the Canada Digital Adoption Program consists of two complementary components of support for businesses:

• The first stream, Grow Your Business Online, is designed to help customer-facing businesses, including restaurants, tourism and recreation-based businesses, digitize and take advantage of e-commerce opportunities. It will be delivered by third-party, not-for-profit intermediaries who will be responsible for providing micro‑grants and e‑commerce advisory services as well as hiring, training and assigning job placements to youth digital advisors. The call for applications from not-for-profit organizations closed on August 6, 2021.
• The second stream, Boost Your Business Technology, will help larger SMEs, such as small manufacturing and food processing operations, who require more support to adopt more complex technology. Support for these businesses will emphasize advisory expertise for technology planning and financing options needed to put these technologies to use. Businesses can receive grants to develop the digital adoption plans for up to 90% of the cost of the plan to a maximum of $15,000. In addition, businesses will be able to apply for 0% financing of up to $100,000 from the Business Development Bank of Canada to help implement their digital adoption plans as well as leverage a wage subsidy of up to $7,300 for a youth work placement for businesses that are undertaking digital transformation.

The Canada Digital Adoption Program will support as many as 160,000 SMEs (up to 90,000 through Stream One and up to 70,000 through Stream Two) adopt new digital technologies and provide work opportunities for up to 28,000 young Canadians (up to 11,200 through Stream One and up to 16,800 through Stream Two).

Issue

General supports to small and medium-sized enterprises (SMEs) are key to ensuring an inclusive economic recovery and fuelling job growth. In addition to the pressures of COVID‑19, government supports are vital to help SMEs in the face of persistent, predictable challenges such as labour shortages, aging demographics, adopting digital tools for business, accessing capital, as well as navigating administrative irritants and regulatory burden.

What is the Government of Canada doing to support the economic recovery of SMEs?

Response

• Small businesses are the heart of Canada’s communities and the engine of Canada’s economy.
• Since the beginning of the pandemic, the Government of Canada has been introducing measures to support small businesses survive, and many of these business and income support measures have been extended to the spring.
• Budget 2021 measures will further support their inclusive economic recovery. For example, investments in the Canada Digital Adoption Program, the Women Entrepreneurship Strategy, Black Entrepreneurship Program and the Small Business and Entrepreneurship Development Program will revitalize the economy and provide Canada’s entrepreneurs access to new opportunities to succeed.
• Budget 2021 also enabled changes to the Canada Small Business Financing Program to improve access to working capital for entrepreneurs.
• The Government of Canada also provides programming and general business supports that respond to unique needs of entrepreneurs, including those who have been historically under-served.
• As pandemic measures wind down, these government supports will be vital to help SMEs and entrepreneurs start, grow and maintain their businesses.

Background

SMEs represent almost a 100% of employer businesses in Canada. This constitutes 89% of total private sector employment, representing over half (54%) of Canada’s gross domestic product (GDP). SMEs continue to be adversely impacted by COVID‑19, with businesses reporting challenges with managing debt, recruiting and retaining skilled employees, rising costs, and fluctuations in demand.

ISED has been extending supports for SMEs through a variety of strong inclusive and diverse programming designed to respond to the unique needs of Canadians, including those who have been historically under-served by traditional supports:

• the Canada Digital Adoption Program helps SMEs digitize and boost their e-commerce presence, and provides training and work opportunities for young Canadians
• the Canada Small Business Financing Program enhances access to capital by working with Canadian financial institutions to risk share small business loans
• the Women Entrepreneurship Strategy helps increase women-owned businesses’ access to the financing, talent, networks and expertise they need to start up, scale up and access new markets
• the Small Business and Entrepreneurship Development Program enables delivery of funding to SMEs and entrepreneurship support organizations across Canada
• the Black Entrepreneurship Program helps Black business owners and entrepreneurs grow their businesses and succeed now and into the future
• Futurpreneur Canada helps young entrepreneurs aged 18 to 39 access financing, mentoring and business supports for every business stage
• the Mobilizing SMEs to Export Initiative (Trade Accelerator Program) helps prepare businesses for expansion into international markets

Other key federal supports for SMEs include:

• Business Development Bank of Canada financing which provides a full spectrum of financial supports (for example, direct lending, growth and transition capital, venture capital and securitization) and non-financial support, including consulting services
• the Aboriginal Entrepreneurship Program and the Indigenous Women’s Entrepreneurship Initiative provide supports via a network of Aboriginal financial institutions to help Indigenous-owned businesses (that is, First Nations, Métis and Inuit communities) attract investment
• Canada’s Regional Development Agencies help create and grow businesses, cultivate partnerships, and build strong and innovative communities through targeted business development programs
• BizPaL is an online service that provides information about business permits, licences and other requirements, from all levels of government, needed to establish, operate and grow a business
• Innovation.canada.ca is a one-stop site capturing over a 1,000 business supports across various levels of government, making it simple for Canada’s innovators and entrepreneurs to find the right programs and services by answering a few questions
• the Canada Business App makes it easier for small business owners to navigate government services by providing tailored recommendations and personalized notifications on funding applications

Issue

How will the government help Canadians recover from the “steepest and fastest economic contraction since the Great Depression”?^{Footnote 6}

Response

• Our government aims to finish the fight against COVID‑19 and put Canada on a solid footing for a robust economic recovery and growth that brings all Canadians along.
• We will continue to put people first, create jobs, grow the middle class, and set a track for long-term growth to benefit all Canadians, in all regions, and all sectors of the economy.
• We aim to secure an economic future for Canada that is equitable, resilient, cleaner and greener.
• We will continue to support both industry and Canadians to help them manage through an uncertain and changing landscape created by the pandemic.
• This includes support businesses in our most affected sectors, such as tourism, and accelerate investment in digital transformation of small and medium-sized businesses.
• So too will working toward achieving inclusive economic participation so that economic benefits are shared and support a diverse, skilled workforce prepared for the jobs today and in the future.
• Our focus will also be on a green recovery that fights climate change and builds a net-zero economy by investing in world-leading technologies that make industry cleaner and greener.

Background

Prior to the COVID‑19 pandemic, Canada was doing well compared to its Group of Seven (G7) counterparts, placing second in GDP growth and featuring historically low unemployment. The COVID‑19 pandemic created an unprecedented economic shock to the global and the Canadian economies. In Canada, real GDP fell by 13% in the first half of 2020 and the labour market was exceptionally hard hit; about 3 million workers had lost their job, and another 2.5 million Canadians were working significantly reduced hours in April 2020. The economic impacts of the pandemic have been asymmetrical across sectors, regions and groups of workers, with some sectors facing only a modest decline (for example, digital/green) while others significant (for example, air transportation and tourism).

The government in the last mandate provided unprecedented support to Canadian workers and businesses to meet their immediate liquidity needs. In comparison to its G7 counterparts, Canada’s response, including Budget 2021 investments, has been one of the largest and fastest among G7 countries. At the time of the release of Budget 2021, COVID‑19-related fiscal support amounted to 23% of Canada’s GDP.

Issue

The 2021–22 Supplementary Estimates (B) for Immigration, Refugees and Citizenship Canada (IRCC)

Response

• The department’s 2021–22 Supplementary Estimates (B) include voted authorities of $334.1 million for IRCC, which is mainly comprised of funding for the resettlement commitment for the evacuation and immigration of Afghan nationals to Canada ($166.6 million), the Immigration Levels Plan 2021–23 ($139.8 million), upholding and improving client services ($18 million), as well as the re-profiled funding from last fiscal year into 2021–22 for protecting people from unscrupulous and fraudulent immigration and citizenship consultants ($5.1 million) and stabilizing the Global Case Management System for future digital platform transformation ($4.6 million).
• In addition, these Supplementary Estimates include $16.1 million in statutory funding related to contributions to employee benefit plans to recognize increases in salary for the resettlement commitment for the evacuation and immigration of Afghan nationals to Canada, the Immigration Levels Plan 2021–23, and for upholding and improving client services.
• A transfer from contributions of $3.0 million to the grant for the International Migration Capacity Building Program is also included in these Supplementary Estimates.
• Taking into account spending authorities reflected in 2021–22 Main Estimates, Supplementary Estimates (A) and (B), as well as Treasury Board central vote allocations, IRCC’s financial authorities for 2021–22 will increase to $3.7 billion in total.

Background

Funding included in these Supplementary Estimates is comprised of the following items:

Issue

Canada’s immigration response to the crisis in Afghanistan

Response

• In August 2021, the Taliban took control of Afghanistan. Canada continues to be deeply concerned by the deteriorating humanitarian and security situation in the country and the risks it poses for many vulnerable Afghans. Canada remains committed to Afghanistan and the Afghan people, and it will continue to do all it can to support them.
• Canada evacuated more than 3,000 persons out of Kabul before the air bridge closed at the end of August, including Canadian citizens, permanent residents and their family members.
• As of November 17, 2021, IRCC has approved applications for more than 9,530 under our Special Immigration Measures to resettle Afghan nationals who assisted the Government of Canada (for example, locally engaged staff, interpreters), along with their family members. Approximately 3,460 Afghans are already beginning their new lives in Canada under these measures.
• In addition, over 440 refugees have been approved through Canada’s humanitarian program to date, aimed at resettling vulnerable Afghan nationals, including priority groups such as women leaders, human rights advocates, LGBTI ^{Footnote 7} individuals, persecuted religious and ethnic minorities, and journalists, with approximately 400 having already arrived in Canada.
• Significant work persists in resettling Afghan refugees as quickly as possible. A key challenge observed revolves around how many at-risk Afghans remain in Afghanistan and are unable to leave. Due to the ongoing situation in Afghanistan, processing applications and facilitating departure remains extremely complex.
• The Government of Canada has most recently committed to welcoming 40,000 Afghan refugees to Canada, including the existing commitment. My department is currently working diligently to implement this plan while continuing to resettle refugees from other populations.

Background

Issue

Canada Immigration Levels Plan 2021–23

Response

• The Immigration Levels Plan 2021–23, tabled in October 2020, set out a path for increases to immigration targets to help offset the shortfall of admissions in 2020 caused by the pandemic. To support economic recovery, about 60% of admissions were allocated to the economic class.
• The Immigration Levels Plan 2021–23 will help cement Canada’s place among the world’s top destinations for talent, while reuniting family members with their loved ones and fulfilling Canada’s humanitarian commitments.
• To maximize the achievement of levels targets during exceptional circumstances, exceptional efforts were required for Canada to continue welcoming newcomers who bring the skills our economy needs to help recover and keep growing as we move forward, including new, time-limited pathways to permanent residence for temporary residents already in Canada.
• With an aging population and declining fertility rates, as well as labour shortages and economic recovery, Canada will rely even more on immigration over the long term.

Background

• The Immigration Levels Plan 2021–23 (Levels Plan) was tabled in Parliament on October 30, 2020, with targets of 401,000 permanent residents in 2021 (range: 300,000 to 410,000); 411,000 in 2022 (range: 320,000 to 420,000); and 421,000 in 2023 (range: 330,000 to 430,000).
• The Levels Plan increased admissions to offset the impacts of COVID‑19. Unlike previous plans, the 2021–23 plan features significantly lowered ranges in each year to provide flexibility for potential ongoing pandemic-related impacts like travel restrictions.
• The Multi-Year Levels Plan has three broad objectives:
  1. achieving long-term benefits for Canada
  2. contributing to short-term economic growth and addressing labour market needs for different regions
  3. ensuring a well-managed migration system that can maintain public confidence

Issue

Inventories and processing times for Immigration, Refugees and Citizenship Canada (IRCC)

Response

• Despite processing and admitting a historic number of permanent residents over the last few months, inventories have increased beyond capacity, resulting in aging applications and longer processing times for clients.
• The department has improved service and made significant progress in the remote processing of citizenship and immigration applications with the introduction of various digital tools such as piloting a digital intake portal for certain lines of business and digitizing certain paper files for remote work.
• Improvements are also being considered to the Processing Times Tool so that clients can better plan their travel to and stay in Canada. New information is now posted on the IRCC website for many lines of business to provide information to clients that we are finalizing applications received by a certain date so clients have a good idea where we are at.

Background

Issue

The Courts Administration Service re-profiled funding totalling $1.8 million in Supplementary Estimates (B) for a new Courts Registry Management System and the Budget 2019 measure Supporting the Delivery of Justice through the Courts Administration Service.

Response

• In Supplementary Estimates (B), the Courts Administration Service re‑profiled $1.8 million from 2020–21 to 2021–22. This amount is related to a new Courts and Registry Management System, as well as some facilities infrastructure work supporting the delivery of justice.
• The Courts Administration Service received funding in 2019–20 to procure and implement a new Courts and Registry Management System to replace the current legacy systems used to manage the business of the Federal Court of Appeal, the Federal Court, the Court Martial Appeal Court of Canada and the Tax Court of Canada.
• The re-profile is to continue work to properly define the project.
• The new Courts and Registry Management System is a central element in plans to modernize the court system and its services.

Background

Issue

The Office of the Information Commissioner had no specific funding for advancing the cloud migration project in 2021–22. In light of this and the need to retain the IT consultants hired in the second half of 2020–21, the Office of the Information Commissioner requested that the surplus funds created by various unexpected delays outside of Office of the Information Commissioner’s control in fiscal year 2020–21 be re-profiled.

Response

• The Office of the Information Commissioner would direct $876,292 in re-profiled funds to activities that provide direct and important support to investigations.
• Specifically, the funds would be used to complete IT and information management projects related to establishing a secure Office of the Information Commissioner cloud computing environment.
• In turn, this would allow the Office of the Information Commissioner to develop, as per Treasury Board of Canada Secretariat guidelines, a new centralized records management database, introduce a new collaborative platform, purchase new/additional secure IT equipment and software, and train investigators on the use of these new tools.

Background

The funds would offset the cost of IT consultants hired in fiscal year 2020–21 that are continuing with the Office of the Information Commissioner in fiscal year 2021–22 during the crucial development, testing and implementation phases of the cloud migration project. These consultants are key to the project’s success, since the Office of the Information Commissioner does not have the technical expertise and capacity in house to complete the deliverables on time and on budget. The Office of the Information Commissioner was only able to hire the consultants late in the fiscal year, due to the pandemic. In addition, these professionals are in considerable demand across government, resulting in high hourly rates. Together, these factors have created significant funding pressure for fiscal year 2021–22. The funding request would allow the Office of the Information Commissioner to continue the work started in fiscal year 2020–21 with no interruption.

These activities would improve the efficiency and effectiveness of investigations, and enhance the ability of investigators to work remotely and virtually and to collaborate with colleagues at the office (once normal operations return).

Issue

Most Canadian courts were quick to adapt to these unprecedented times. By setting up protocols, leveraging technology and adapting equipment and protocols, courts continue to hear cases and maintain essential services to Canadians.

Response

• In March 2020, unprecedented measures were taken in order to limit the spread of COVID‑19. These measures included the closure of most physical courtrooms.
• An Action Committee on Court Operations in Response to COVID‑19 was created in May 2020, co-chaired by the Chief Justice of Canada and the Minister of Justice and Attorney General of Canada, and comprised of key stakeholders in the administration of justice and the Public Health Agency of Canada.
• The Action Committee provides national leadership to support the work of provincial and territorial governments, individual courts, and court administrators in progressively restoring the full operation of Canada’s courts while ensuring the safety of court users and staff.
• Lessons learned are now emerging, and courts are looking not only at the short term, but also at how to leverage some of the practical adaptations and innovations used to respond to the pandemic.
• We intend to reintroduce former Bill C‑23, An Act to amend the Criminal Code and the Identification of Criminals Act and to make related amendments to other Acts (COVID‑19 response and other measures).
• The Courts Administration Service (federal courts) received $5.7 million to fund the courts’ critical operating requirements impacted by COVID‑19. In addition, the Office of the Registar of the Supreme Court of Canada received $0.5 million.
• At this time, the courts are not staying criminal proceedings due to delays solely caused by the pandemic. Reported trial court decisions to date suggest that delays specifically due to the pandemic constitute “exceptional circumstances” for the purpose of the Supreme Court test in the Jordan decision.

Background

As a result of the COVID‑19 pandemic, courts have been forced to significantly curtail operations in response to physical distancing and other public health and safety requirements.

In response, the Right Honourable Richard Wagner, Chief Justice of Canada and Chairperson of the Canadian Judicial Council, and the Honourable David Lametti, Minister of Justice and Attorney General of Canada, established an Action Committee on Court Operations in Response to COVID‑19. The Action Committee provides national leadership to support the work of provincial and territorial governments, individual courts, and court administrators in restoring the full operation of Canada’s courts while ensuring the safety of court users and staff. This gives decision-makers the best possible health and safety information, and promotes information-sharing on innovative solutions and best practices adopted by courts in various jurisdictions to help restore their operations.

In the 2016 R. v. Jordan decision (Jordan), the Supreme Court of Canada set out presumptive numeric ceilings beyond which delay is presumptively unreasonable. The time limit between the laying of charges and the conclusion of a trial is 18 months for cases heard in provincial courts and 30 months for cases heard in superior courts or cases going to trial in provincial courts after a preliminary inquiry. If the ceilings are exceeded, charges would be stayed if the Crown does not establish the presence of “exceptional circumstances.” Under this test, the delays caused by “exceptional circumstances” can be deducted as long as these delays lie outside the control of the Crown or the justice system, in that they are not reasonably foreseeable or avoidable and cannot reasonably be remedied. As the system continues to deal with the effects of the COVID‑19, the Crown and the justice system will be expected to demonstrate that they are continually adopting reasonable measures, including further embracing new technologies, to mitigate delays so as to ensure the constitutional right of an accused to trial within a reasonable time is respected.

According to the most recent available data from Statistics Canada, after recording a stable year prior to the pandemic, the percentage of adult cases that exceeded the Jordan limit has steadily increased since the start of the pandemic. It increased from 4% in the last quarter of 2019–20 to 9.5% in the last quarter of 2020–21 (Statistics Canada, 2021). This trend is similar for youth criminal cases. In adult cases, Criminal Code traffic offences (12%), crimes against the person (11%) and other federal statute offences (10%) had the highest percentage of cases exceeding the Jordan limit (Statistics Canada, 2021). For youth cases, crimes against the person (12%), other Criminal Code offences (7%) and crimes against property (6.5%) were the violations with the highest percentage of cases exceeding the Jordan limit (Statistics Canada, 2021).

The government has committed to reintroduce former Bill C‑23, An Act to amend the Criminal Code and the Identification of Criminals Act and to make related amendments to other Acts (COVID‑19 response and other measures).

Issue

Systemic racism and the over-representation of Black, Indigenous and marginalized populations in the criminal justice system continue to be prominent topics of discussion, with a number of calls for reform being made to address these issues.

Response

• Our government is committed to addressing systemic inequities in the criminal justice system. We intend to reintroduce sentencing reforms proposed in former Bill C‑22, An Act to amend the Criminal Code and the Controlled Drugs and Substances Act.
• We are also investing in a broad range of initiatives aimed at addressing systemic discrimination and the over-representation of Indigenous people, Black Canadians and members of other racialized groups in the criminal justice system.
• These initiatives include the creation of an Indigenous Justice Strategy, supporting the increased use of Gladue reports and Impact of Race and Culture Assessments in all jurisdictions, and Community Justice Centre pilot projects across Canada.

Background

Systemic racism and over-representation of Black, Indigenous and marginalized populations in the criminal justice system continue to be prominent topics of discussion, with a number of calls for reform being made to address these issues. For instance, the final report of the Truth and Reconciliation Commission of Canada called for the elimination of Indigenous over-representation in correctional institutions over the next decade (Call to Action 30), as well as amendments to the Criminal Code, allowing judges to depart from mandatory minimum penalties and restrictions on the use of conditional sentence orders (Call to Action 32). Similarly, the National Inquiry into Missing and Murdered Indigenous Women and Girls called for the government to evaluate the impact of mandatory minimum penalties on the over-incarceration of Indigenous women, girls and 2SLGBTQQIA^{Footnote 8} people, and to take appropriate action to address their over-incarceration (Call for Justice 5.14). In June 2020, the Parliamentary Black Caucus issued a statement that included a number of reform proposals, including “reform [of] the justice and public safety systems to weed out anti-Black racism, systemic bias, and make the administration of justice and public security more reflective of and sensitive to the diversity of our country.”

The government committed to reintroduce former Bill C‑22 in the first 100 days of its mandate. Bill C‑22 proposed reforms to repeal mandatory minimum penalties for all drug offences, one tobacco-related offence, and 13 firearm-related offences. It also proposed changes that would allow for a greater use of conditional sentences and encourage diversion for simple drug possession offences.

Budget 2021 proposes to provide:

• $74.8 million over three years to improve access to justice for Indigenous people and support the development of an Indigenous justice strategy to address systemic discrimination and the over-representation of Indigenous peoples in the justice system
• of this amount, $24.2 million to support engagement with Indigenous communities and organizations on the development of legislation and initiatives that address systemic barriers in the criminal justice system, including collaboration on an Indigenous justice strategy
• $31.5 million to support the co-development of an action plan with Indigenous partners to implement the United Nations Declaration on the Rights of Indigenous Peoples Act
• $27.1 million to help Indigenous families navigate the family justice system and access community-based family mediation services
• $21.5 million over five years for a Racialized Communities Legal Support Initiative to support organizations that provide free public legal education and information as well as organizations that provide legal services and advice to racialized communities

The 2020 Fall Economic Statement proposes a number of important investments to address systemic racism in the criminal justice system, including:

• $49.3 million over five years to support the application of Gladue principles and integration of Gladue report-writing in the justice system
• $6.6 million over five years and $1.6 million of ongoing funding to support the implementation of Impact of Race and Culture Assessments, which allow sentencing judges to consider the disadvantages and systemic racism that contributed to racialized Canadians’ interactions with the criminal justice system
• $28.6 million over five years would support Community Justice Centre pilot projects in British Columbia, Manitoba and Ontario, as well as consultations to expand the Community Justice Centre concept to other provinces and territories

Issue

Implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act

Response

• In May 2016, the Government of Canada committed to implementing the United Nations Declaration on the Rights of Indigenous Peoples in Canada (UN Declaration). Implementing the UN Declaration is a significant step forward on the shared path of reconciliation, and responds to the Truth and Reconciliation Commission’s Call to Action 43, and the National Inquiry into Missing and Murdered Indigenous Women and Girls Calls for Justice.
• Enacted on June 21, 2021, An Act respecting the United Nations Declaration on the Rights of Indigenous Peoples (UN Declaration Act) affirms the UN Declaration as an international human rights instrument that can help interpret and apply Canadian law. The Act also provides a framework to advance implementation of the UN Declaration at the federal level.
• The UN Declaration Act requires the Government of Canada to work in consultation and cooperation with Indigenous peoples to develop an action plan to achieve the objectives of the UN Declaration, to take all necessary measures to ensure that federal laws are aligned with this Declaration, and to table annual reports to Parliament on the progress made. Budget 2021 announced funding for the process of developing an action plan as part of implementing the Act (that is, $31.5 million over two fiscal years: 2021–22 and 2022–23). The official launch is expected on December 3, 2021, for two years of funding in the amount of $23.6 million that has been allocated for Indigenous participation in the consultation process on the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan.
• This funding will be used to support a broad, inclusive and distinctions-based consultation and cooperation process with Indigenous peoples. The Department of Justice Canada, with support from other government departments, including Crown-Indigenous Relations and Northern Affairs Canada, will be initiating such a process shortly. This process will take place over the next 18 months and will take into account the diversity of Indigenous peoples.

Background

On May 10, 2016, the Minister of Indigenous and Northern Affairs announced that Canada is now a full supporter of the UN Declaration on the Rights of Indigenous Peoples (UN Declaration), without qualification, and that Canada will adopt and implement it in accordance with the Canadian constitution. Both the Truth and Reconciliation Commission of Canada and the National Inquiry into Missing and Murdered Indigenous Women and Girls have called on all levels of government to adopt the UN Declaration as a framework for reconciliation (Calls to Action 43, 44, 46; Call for Justice 1.2v), including through a national action plan, strategies, and other concrete measures.

On December 3, 2020, the Minister of Justice introduced Bill C‑15, An Act respecting the United Nations Declaration on the Rights of Indigenous Peoples (UN Declaration Act), which came into force on June 21, 2021, on National Indigenous Peoples Day. The UN Declaration Act affirms the Declaration as a universal, international human rights instrument with application in Canadian law and provides a framework for the Government of Canada’s implementation of the UN Declaration.

The UN Declaration Act creates a legislated framework to help advance self-determination, self-government, inclusion, economic participation and equality for Indigenous peoples. Three key legal obligations are stipulated in the UN Declaration Act, which are to be carried out in consultation and cooperation with Indigenous peoples:

• developing an action plan that includes measures required by the Act (section 6(2)(a)(b)), as well as other measures related to monitoring implementation of the plan and reviewing and amending the plan (section 6(3))
• identifying measures to ensure consistency of federal laws with the Declaration (section 5)
• submitting annual reports on progress to Parliament (section 7)

The obligation to report annually means the first annual report is due to be completed on or before June 30, 2022. Initial development of an action plan that includes specific measures as set out in the UN Declaration Act must be completed by June 21, 2023 (within two years of royal assent).

A broad and distinctions and diversity-based consultation and engagement process will be launched as part of implementing the UN Declaration Act. It will include national and regional Indigenous organizations, Indigenous rights holders, modern treaty and self-governing nations, women’s and youth organizations, 2SLGBTQQIA+ Indigenous persons, urban Indigenous people, Indigenous persons with disabilities, Elders and youth, and other identified Indigenous groups, as well as provinces and territories, industry and others. A call for proposals will also be launched at the same time to provide funding to Indigenous peoples, organizations and communities in order to support Indigenous participation in the consultation and engagement process.

Issue

FedNor will be seeking parliamentary approval for funding totalling $21.86 million as part of Supplementary Estimates (B) to support key economic development and recovery initiatives in Northern Ontario. This includes $16.23 million from Budget 2021.

Response

• FedNor is seeking access to program funding of  $21.86 million through its Supplementary Estimates (B) submission toward Northern Ontario’s economic recovery.
• Of the total, $7.35 million is for the Jobs and Growth Fund to help businesses recover from the COVID‑19 pandemic by supporting their transition to the green economy and supporting scale-up and market expansion.
• Another $5.25 million is for the Tourism Relief Fund to stimulate and diversify the region’s tourism offerings and experiences, and to help businesses seize opportunities in the domestic market and prepare the sector to welcome back international tourists when demand returns.
• Another $2.79 million is for the Canada Community Revitalization Fund, to address the ongoing needs of communities as they recover from the pandemic, aiming to stimulate local economies, create jobs, and improve the quality of life for Northern Ontarians.
• As well, $675,000 is to support the region’s aerospace sector, while FedNor will flow $170,000 to further help Black entrepreneurs and business organizations through mentorship, financial planning services and business training.
• Finally, FedNor is requesting to re-profile $4.84 million for the continued implementation of the Regional Air Transportation Initiative, which aims to ensure businesses and communities have reliable and affordable access to critical/local airport and air carrier services. This funding will also help regional air sector ecosystems and businesses in the aerospace supply chain adapt to new realities in order to better serve the socio-economic needs of the region.

Background

FedNor will be seeking parliamentary approval for funding totalling $21.86 million as part of Supplementary Estimates (B) to support key economic development and recovery initiatives in Northern Ontario. This includes $16.23 million from Budget 2021.

This funding will support recovery by investing in key regional sectors such as tourism and aerospace, and community economic development where existing programs and regionally specific existing networks can be leveraged to help address the challenges of recovery. The Supplementary Estimates (B) submissions for FedNor are broken down as follows:

• $7.35 million through the Jobs and Growth Fund to support businesses in Northern Ontario as catalysts for long-term growth and job creation, as well as $178,000 requested for program administration. The fund will assist businesses and their regional ecosystems in recovering from the global pandemic by transitioning to a green economy and support scale-up and market expansion activities.
• $5.25 million through the Tourism Relief Fund to stimulate and diversify Canada’s tourism offerings and experiences, as well as $299,000 requested for program administration. Funding through Tourism Relief Fund will provide strategic investments in tourism experiences and destination planning, and offer liquidity support where other relief measures are insufficient due to the unique needs and structures of tourism businesses, helping businesses seize opportunities in the domestic market, and prepare the sector to welcome back international tourists when demand returns.
• $2.79 million through the Canada Community Revitalization Fund to address the needs of communities to recover from the pandemic, stimulate economies, create jobs, and improve the quality of life for Northern Ontarians, as well as $219,000 requesting for program administration.
• $675,000 through the Aerospace Regional Recovery Initiative to support projects to maintain and improve global competitiveness by contributing to innovation and commercialization through the lengthy anticipated recovery of the sector, as well as $91,000 requested for program administration.
• $170,000 for the continued implementation of the Black Entrepreneurship Program to assist Black-led business organizations across Northern Ontario through mentorship, financial planning services and business training.
• A re-profile of $4.84 million for the continued implementation of the Regional Air Transportation Initiative, which aims to ensure businesses and communities have reliable and affordable access to critical/local airport and air carrier services. It will also help regional air sector ecosystems and businesses in the aerospace supply chain adapt to new realities in order to better serve the socio-economic needs of the regions.

Issue

How has FedNor responded to help clients, businesses, communities and significant regional industries deal with the impacts of the COVID‑19 pandemic?

Response

• Through the Regional Relief and Recovery Fund,  $123 million was invested through FedNor and partner Community Futures Development Corporations to help more than 1,200 Northern Ontario businesses and organizations mitigate the impacts and recover from the COVID‑19 pandemic, helping to maintain nearly 5,000 jobs in the region.
• FedNor is also delivering another $22.46 million allocated through the Regional Air Transportation Initiative in order to help regional air transportation ecosystems affected by the economic impacts of COVID‑19 to remain operational and to support the economic growth in the region.
• In addition to these investments, FedNor also received additional specific funding to further support women-owned and -led businesses and Black entrepreneurs. This includes $863,000 in additional funding to fund projects through the Women Entrepreneurship Strategy Ecosystem Fund and an additional $1.19 million to support the implementation of the Black Entrepreneurship Program in the region.
• FedNor now also delivers four additional recovery programs, announced as part of Budget 2021 and launched earlier this summer, that will inject $83 million in new funding into the region over the next few years. They are:
  • the Canada Community Revitalization Fund ($19.14 million over two years)
  • Tourism Relief Fund ($25.3 million over two years)
  • Jobs and Growth Fund ($26.6 million over three years)
  • the Aerospace Regional Recovery Initiative ($11.88 million over three years)

Background

FedNor delivered its initial $49.5-million Regional Relief and Recovery Fund allocation, received back in May 2020, prioritizing liquidity support to key sectors contributing to the economic well-being of Northern Ontario businesses and organizations.

As part of that allocation, FedNor provided $25.5 million in Regional Relief and Recovery Fund funding to the region’s 24 Community Futures Development Corporations to support businesses, particularly rural main-street businesses and small/micro enterprises.

On October 2, 2020, the government announced a  $22.3-million top-up in Regional Relief and Recovery Fund funding for Northern Ontario, and FedNor worked with stakeholders and partner Community Futures Development Corporations to immediately allocate this funding. Through the November 2020 Fall Economic Statement, the government announced an additional  $29 million in support of Regional Relief and Recovery Fund in Northern Ontario, raising total Regional Relief and Recovery Fund investments to more than $100 million.

As part of Budget 2021, FedNor was allocated $83 million in new funding to deliver four additional programs that will inject into the region over the next few years. These new programs were launched earlier this summer and include the Canada Community Revitalization Fund, the Tourism Relief Fund, the Jobs and Growth Fund and the Aerospace Regional Recovery Initiative.

In addition to investments through the Regional Relief and Recovery Fund, its regular programs and the four new programs that were recently launched, FedNor is also delivering $23.5 million over two years through the Regional Air Transportation Initiative to help key transportation players remain operational through COVID‑19. The Regional Air Transportation Initiative runs until March 2022.

In response to the unique challenges faced by women entrepreneurs during the COVID‑19 crisis, the government approved an additional  $15 million in funding to the funding already available for the Women Entrepreneurship Strategy Ecosystem Fund in fiscal year 2020–21. As a result, FedNor received $863,000 in additional funding.

FedNor is working along with the other Regional Development Agencies on the Black Entrepreneurship Program, which will help thousands of Black business owners and entrepreneurs across the country recover from the COVID‑19 pandemic and grow their businesses.

To help clients maintain cash flow, FedNor also deferred payments for all clients and waived associated interest until January 1, 2021.

Issue

The Office of the Auditor General has undertaken a number of audits to examine government spending in response to the COVID‑19 pandemic. As part of this work, they examined how Innovation, Science and Economic Development (ISED) as well as selected Regional Development Agencies designed and delivered the Regional Relief and Recovery Fund program from March 15, 2020, to June 30, 2021, and reported on results.

Response

• As part of Canada’s COVID‑19 Economic Response Plan, the Regional Relief and Recovery Fund was quickly designed and delivered under emergency circumstances to provide financial assistance to businesses and organizations across Canada that did not qualify for other programs.
• To help keep more people employed and to sustain more employers for recovery, the Government of Canada invested over $2 billion through the Regional Relief and Recovery Fund, 25% of which was earmarked for the tourism sector. The application period for this fund closed on June 30, 2021.
• In Northern Ontario, $123 million in relief funding was delivered to over 1,200 businesses and organizations in critical need of support.
• The audit covered the period of March 15, 2020, to June 30, 2021. The Office of the Auditor General worked with Regional Development Agencies to communicate their findings and recommendations. These are included in the final report tabled on December 9, 2021.
• The Regional Development Agencies have reviewed the report and provided a coordinated response to each of the recommendations. These will be included in the published report.

Background

• The Regional Relief and Recovery Fund was announced on April 17, 2020, to provide support for businesses and organizations that were unable to access other federal pandemic support or needed additional assistance.
• The program was delivered directly by the Regional Development Agencies and through Community Futures organizations in rural areas.
• Over $2 billion was allocated to the program, with applications accepted until June 30, 2021.
• Because the Regional Relief and Recovery Fund was a backstop program under Canada’s COVID‑19 Economic Response Plan, its original design was revised throughout the pandemic to adjust to changes in the other programs under the plan.
• The audit also included the Western Economic Diversification Canada (now Pacific Economic Development Agency of Canada (PacifiCan)) and Prairies Economic Development Canada (PrairiesCan), the Federal Economic Development Agency for Southern Ontario as well as ISED. ISED is included for its previous responsibility for FedNor and for the support it provides in the design and delivery of the program, including the coordination of the reporting of Regional Relief and Recovery Fund results.

Issue

FedNor was established as a stand-alone Regional Development Agency on August 12, 2021. Stakeholders may have questions about the impact of FedNor’s new agency status and the benefits of the change for the economy of Northern Ontario.

Response

• FedNor is the key Government of Canada partner for regional economic development in Northern Ontario.
• First created as a federal initiative in 1987 with a mandate to assist in the expansion and diversification of the economy of Northern Ontario, FedNor was established as a stand-alone Regional Development Agency on August 12, 2021.
• This transformation confirms the importance of the role of Regional Development Agencies across Canada.
• It will allow the federal government to better tailor the implementation of its priorities – inclusive, sustainable and fair economic development – to the needs of Northern Ontario.
• The move also responded to a need identified by community and business leaders over the years who felt Northern Ontario needed its own Regional Development Agency.
• While continuing to support the long-term growth of Northern Ontario’s economy, FedNor, along with its partner Regional Development Agencies across Canada, is also implementing several federal measures to help businesses, organizations and communities in the region affected by the economic impacts of the COVID‑19 pandemic, supporting them toward recovery.

Background

Following through on its commitment in Budget 2021, the Government of Canada announced the creation of FedNor as a stand-alone agency on August 10, 2021. FedNor was formally established through orders-in-council on August 12, 2021. FedNor previously operated as an initiative of ISED.

As part of Canada’s COVID‑19 Economic Response Plan, FedNor has demonstrated its ability to quickly deliver special programs such as the Regional Relief and Recovery Fund to support businesses and organizations impacted by the pandemic.

In addition to its regular programming, FedNor is also delivering four additional programs that will inject nearly $83 million in new funding into the region over the next few years. These new programs were launched earlier this summer and include the Canada Community Revitalization Fund ($19.14 million over two years), the Tourism Relief Fund ($25.3 million over two years), the Jobs and Growth Fund ($26.6 million over three years) and the Aerospace Regional Recovery Initiative ($11.88 million over three years).

Issue

FedDev Ontario has included $63.3 million in the Supplementary Estimates (B).

Response

• From the outset of the pandemic, the Government of Canada and our Regional Development Agencies have been on the ground, helping businesses and communities weather the effects of the pandemic.
• The Government of Canada remains committed to supporting businesses, organizations and communities as we work toward a resilient and inclusive economic recovery that creates jobs and growth for Canadians.
• Budget 2021 announced that Regional Development Agencies would be delivering funding across the country to regain momentum in areas of economic strength, lift up businesses in hard-hit sectors, support communities impacted by the pandemic, and drive a clean and inclusive recovery.
• To support economic recovery across Southern Ontario, Budget 2021 announced multi-year funding for a total of $652.2 million for FedDev Ontario. This includes $629 million in grants and contribution,  $17.6 million in operating funding $3.5 million in employee benefit plans.
• These Supplementary Estimates seek $63.3 million of this funding for 2021–22 to support a suite of programs that includes the Canada Community Revitalization Fund, the Major Festivals and Events Support Initiative, the Jobs and Growth Fund, the Tourism Relief Fund, the Aerospace Regional Recovery Initiative and the Black Entrepreneurship Program.

Background

• Budget 2021 identified $652.2 million in multi-year funding for FedDev Ontario that extends over four fiscal years and ends in 2024–25. A total of $63.3 million of this funding is requested through the 2020–21 Supplementary Estimates (B). This represents:
  • $57.5 million for grants and contributions
  • $4.8 million in operating funding
  • $1.0 million for employee benefit plans
• The $57.5 million in grants and contributions requested to directly support the Budget 2021 programs includes:
  • $21.9 million for the Canada Community Revitalization Fund, supporting communities, towns and cities across Southern Ontario as they invest in infrastructure that will assist with community vitality, support social and economic cohesion, and help communities recover and reanimate following the pandemic
  • $20.0 million for the Major Festivals and Events Support Initiative, providing financial support to Canada’s major festivals and flagship events to mitigate possible closure, offer alternate activities in light of constraints imposed by the pandemic, and position themselves for the future
  • $8.4 million in support for the Jobs and Growth Fund (support for small and medium-sized businesses), providing funding under four priority areas:
    1. enhancing Canada’s competitiveness and future-proofing SMEs through digital adoption
    2. re-shoring critical sectors and protecting Canadian capacity
    3. transitioning to the green economy
    4. fostering inclusive growth
  • $5.5 million for the Tourism Relief Fund, supporting tourism entities to strategically adapt their products and services to adjust to public health requirements, while planning for, and investing in, recovery efforts for future growth
  • $3.4 million for the Aerospace Regional Recovery Initiative, supporting projects that maintain and enhance innovation, productivity and competitiveness of aerospace SMEs to ensure the sector emerges from the pandemic with the capacity to compete globally
  • $3.1 million for the Black Entrepreneurship Program, providing additional support under the Black Entrepreneurship Program National Ecosystem Fund to assist not-for-profit, Black-led organizations to develop new services or expand those they already offer such as mentorship, networking, financial planning and business training for Black entrepreneurs
• The $4.8 million in operating funding is mainly attributed to salary to support the design, launch and delivery of this new programming.
• The $1 million is statutory funding for employee benefit plans.

Issue

What measures has the Federal Economic Development Agency for Southern Ontario taken to support business and communities in response to the COVID‑19 pandemic?

Response

• FedDev Ontario has been allocated over $1.1 billion to support economic relief and recovery in Southern Ontario.
• FedDev Ontario and its partners delivered more than $500 million through the Regional Relief and Recovery Fund to help businesses and organizations in Southern Ontario through the pandemic.
• The Regional Relief and Recovery Fund supported more than 40,000 SMEs and organizations, helping them maintain more than 70,000 jobs in the region through the worst of the pandemic.
• Through the Regional Relief and Recovery Fund, FedDev Ontario also worked with partners to support sectors that were hit hardest by the pandemic, including tourism, retail and main street businesses, as well as under-represented groups that have been disproportionately affected by job losses.
• As regional economies emerge from the COVID‑19 pandemic, FedDev Ontario is focusing on economic recovery, delivering over $600 million through a series of initiatives that will drive a diverse and inclusive recovery, and support hard-hit sectors, businesses and communities.
• The agency took a number of steps to support the hard-hit tourism sector in Southern Ontario, such as providing targeted support through the Regional Relief and Recovery Fund, and allocating regular program funding to help tourism-dependent communities in the region.
• The agency’s Regional Relief and Recovery Fund funding included support to key partners across Ontario to use their expertise to help main street businesses and SMEs transform their operations so that they can compete now and prosper in the post-COVID‑19 economy.
• Since March 2020, the agency provided support and additional flexibilities to existing client businesses, such as repayment deferrals, advance project payments and support for personal protective equipment, to support their operations through the worst of the pandemic, resulting in almost $40 million in cash flow relief for these companies.
• The agency also delivered $4.7 million via the Women Entrepreneurship Strategy Ecosystem Fund to help women-led businesses during the pandemic, and is delivering about $23 million through the Regional Air Transportation Initiative to support regional airports and air carriers that have been impacted by the pandemic.

Background

• FedDev Ontario has been allocated more than $1.1 billion to support economic relief and recovery efforts in Southern Ontario, including:
  • more than $500 million to deliver the Regional Relief and Recovery Fund
  • about  $23 million to deliver the Regional Air Transportation Recovery Initiative
  • more than $600 million to deliver COVID‑19 recovery initiatives announced in Budget 2021
  • about  $4.7 million to deliver a top-up of the Women’s Entrepreneurship Strategy Ecosystem Fund
• In Southern Ontario, FedDev Ontario is delivering more than $600 million through Regional Development Agency recovery initiatives that were launched in summer 2021, including:
  • $224 million of the Jobs and Growth Fund to help create jobs, support inclusive and clean growth, and lift up struggling businesses and communities
  • $144 million of the Canada Community Revitalization Fund to support communities, towns and cities as they invest in infrastructure that will assist with community vitality, support social and economic cohesion and help reanimate communities
  • $128 million of the Tourism Relief Fund to help tourism entities strategically adapt their products and services to adjust to public health requirements, while planning for, and investing in, recovery efforts for future growth
  • $70 million of the Major Festivals and Events Support Initiative to offer financial support to Canada’s major festivals and flagship events to mitigate possible closure, offer alternate activities in light of constraints imposed by the pandemic, and position themselves for the future
  • $67 million of the Aerospace Regional Recovery Initiative to support projects aimed at maintaining and enhancing innovation, productivity and competitiveness of aerospace SMEs
• FedDev Ontario was allocated more than $500 million to deliver the Regional Relief and Recovery Fund to help businesses and organizations in Southern Ontario impacted by the pandemic.
• As of September 28, FedDev Ontario’s delivery of the Regional Relief and Recovery Fund in Southern Ontario resulted in:
  • the direct delivery of more than $420 million to help over 40,000 SMEs maintain more than 70,000 jobs
  • support delivered through Southern Ontario’s 36 Community Futures Development Corporations totalling $76 million that in turn helped close to 2,000 SMEs in the region’s rural communities maintain over 6,000 jobs
• FedDev Ontario’s Regional Relief and Recovery Fund investments include:
  • more than $158 million in over 800 projects supporting tourism businesses
  • more than $155 million in over 1,450 projects supporting women-owned or -operated businesses
  • nearly $10 million in over 130 projects supporting Indigenous businesses

FedDev Ontario approved over $9.1 million in repayable contributions toward projects that directly support the production of personal protective equipment, such as medical-grade surgical masks, N-95 masks, as well as ventilators and other essential medical devices.

Issue

How has the Federal Economic Development Agency for Southern Ontario impacted the region?

Response

• FedDev Ontario’s mandate is to strengthen Southern Ontario’s capacity for innovation, economic development and growth, and promote the development of a strong and diversified regional economy.
• Since November 2015, the agency has invested more than $1.2 billion to support over 1,000 projects with Southern Ontario firms and organizations in the region, not including COVID‑19 relief and recovery measures.
• These investments have demonstrated strong results, such as helping to create or maintain nearly 80,000 jobs, and leveraging more than $2.5 billion in additional investment in the region.
• The agency was there for more than 40,000 businesses and organizations in Southern Ontario during the COVID‑19 pandemic, providing more than $500 million in liquidity relief that helped maintain more than 70,000 jobs in the region.
• FedDev Ontario is an essential part of the government’s plan to create jobs and economic growth in Southern Ontario, a dynamic and diverse region that is a driver of Canada’s economic growth and prosperity.
• A Statistics Canada analysis showed that businesses directly supported by FedDev Ontario grew faster than similar non-assisted companies in terms of revenues, employment, productivity and R&D expenditures, and were more likely to still be in operation three years after receiving assistance.
• Another analysis by the Conference Board of Canada found that every $1.00 from FedDev Ontario’s regular program investments generates an additional $3.50 in value in the broader regional economy.
• In addition to its core role of delivering regional and national programming to support government priorities, business growth, innovation and communities in Southern Ontario, FedDev Ontario is also a convenor, pathfinder and champion for the region, working across federal departments and other levels of government to align efforts for sustainable economic growth and development across Southern Ontario.

Background

• FedDev Ontario was established in August 2009 in response to the 2008 financial crisis and subsequent economic recession.
• The agency had an initial five-year mandate to provide stimulus funding in Southern Ontario, an economic driver of the Canadian economy and the country’s most populous region.
• FedDev Ontario’s mandate has evolved, and the agency’s mandate expanded to strengthening Southern Ontario’s economic capacity for innovation, economic development and growth, and promoting the development of a strong and diversified Southern Ontario economy.
• Made permanent in 2019, the agency is an essential part of the government’s plan to create jobs and economic growth. It makes strategic investments to deliver on government priorities, is a strong federal presence in Southern Ontario that brings the region’s perspective to national policy, and is a convenor of key stakeholders to identify opportunities to spur economic growth.
• The agency delivers ongoing and national programs that are tailored to Southern Ontario’s strengths and can be leveraged to invest in opportunities to promote business growth, innovation, and community development and diversification.
• It is also delivering a number of COVID‑19 relief and recovery programs designed to support the region’s SMEs through the pandemic, help the region regain momentum in Southern Ontario’s areas of economic strength, lift up businesses in hard-hit sectors, support communities impacted by the pandemic, and drive a clean and inclusive recovery.