Committee of the Whole President of the Treasury Board 2019-20 Supplementary Estimates (A)
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Opening Statement and Presentation
Opening Statement (SCMA)
Notes for remarks the Honourable Jean-Yves Duclos
President of the Treasury Board at the House of Commons Committee of the Whole on Supplementary Estimates (A) 2019-20
Date TBD
Ottawa
Please check against delivery
Thank you, [[Mr./Madame]] Chair.
It is a pleasure to be here, and my thanks for providing me with the opportunity to discuss the recently-tabled Supplementary Estimates (A) with the Committee.
[[TBC introduce supporting officials]]
I would begin by introducing the officials from Treasury Board of Canada Secretariat who have accompanied me here today:
As the Committee is aware, Supplementary Estimates outline spending requirements that were not sufficiently developed in time for inclusion in the Main Estimates.
Supplementary Estimates may also include expenditure projections that were included in the Main Estimates, but that have been updated or refined to account for further development of particular programs and services.
If I may offer a bit more context — particularly for new members of the Committee — the first Supplementary Estimates would usually be presented to Parliament in the spring.
That changed after Parliament approved a two-year pilot project designed to create new opportunities for Parliamentarians to review government spending plans. This included altering the scheduling of the Main Estimates, allowing them to be tabled after the Budget, instead of before it.
Among other intended benefits, this pilot project allowed Budget items to be included in the Main Estimates — making it easier for Parliamentarians and Canadians to see how the spending estimates related to the big picture set out in the Budget forecast. In fact, this year’s Main Estimates, included 100% of the $5.6 billion in spending measures announced in Budget 2019. At this point, departments have obtained the necessary Treasury Board authorities to implement 83% the Budget funding.
So, with the Main Estimates following the Budget, the tabling of the first Supplementary Estimates would occur later in the year —and those are the Supplementary Estimates we are here for today.
This process was only in place for two years. For tabling of 2020-21 Main Estimates we will be returning to the previous procedural requirements: the Main Estimates must be tabled no later than March 1, with the first of the Supplementary Estimates tabled sometime in the spring.
While we return to the previous procedural processes, the government will review the results of the pilot project as it continues to work toward improving how we report to parliamentarians and be more transparent on government spending.
Turning to the Estimates themselves, as tabled in Parliament, the Supplementary Estimates (A) 2019-20 include a summary of the government’s incremental financial requirements, as well as an overview of major funding requests and horizontal initiatives.
The document also outlines new authority requirements and structural changes; funding details by organization; and a proposed schedule for the appropriation bill to be introduced in this Chamber in the coming days.
In keeping with the Government’s commitment to transparency, additional information related to the Supplementary Estimates will also be made available online.
This ranges from a detailed listing of legislated amounts reported through the Estimates to a complete breakdown of planned expenditures by standard object, such as personnel, professional services and transfer payments.
As I am sure the Committee will agree, there is more to transparency than simply throwing the information out there — steps have to be taken to make it comprehensible and meaningful to Canadians.
Our online information tools reflect our commitment to Canadians to understand where public funds are going, and how they will be spent.
And in that regard, these Supplementary Estimates make it clear that the Government is investing in addressing key priorities — priorities identified by Canadians themselves — including strengthening and enhancing prosperity for middle-class Canadians; supporting our veterans; and continuing to take meaningful action on climate change.
We expect these will be the first of two Supplementary Estimates this fiscal year before we introduce Main Estimates for 2020-21 by March 1.
In all, with the Supplementary Estimates (A) for the 2019-20 fiscal year, the Government is presenting to Parliament $4.9 billion in new voted spending and $88 million in total statutory expenditures.
Voted expenditures require annual approval from Parliament through an appropriation bill — also known as a supply bill. These types of expenditures include operating, capital and grants and contributions.
Statutory spending is different in that it does not require specific approval from Parliament — it is authorized through Parliamentary approval of legislation that sets out the amounts and time periods for payments to be made. It is included here in order to give Parliament detail on the federal government’s planned spending.
The $4.9 billion in planned expenditures would be allocated across 39 organizations.
A substantial amount of the total is going towards investments to Veterans Affairs Canada — $677 million to ensure our veterans have access to the demand-driven programs and services they have earned.
There is $101 million for settlement of the Toth class action suit related to disability pensions.
And there is $116 million to compensate RCMP members injured in the line of duty.
Other highlights include:
$296 million to Global Affairs Canada to help developing countries adapt to the impacts of climate change, as well as a further $165 million to be invested in Transport Canada’s zero-emission vehicle program;
$177 million to National Defence for the armoured combat support vehicle fleet;
$176 million to be allocated to Global Affairs Canada for the Crisis Pool Quick Release Mechanism to reinforce Canada’s capacity to respond to international humanitarian crises; and
In addition, listed under the Treasury Board Secretariat, there is $467 million to implement government-wide collective bargaining agreements that were recently concluded.
I would conclude my remarks by acknowledging the importance of the work of Parliamentarians in assuring the careful scrutiny of the spending of Canadians’ tax dollars.
Thank you for your time, and my officials and I look forward to answering any questions you may have.
Deck Presentation (EMS)
Supplementary Estimates (A), 2019-20
December 2019
Supplementary Estimates (A) Totals
In these Supplementary Estimates:
- A total of 39 organizations presenting additional planned budgetary voted expenditures of $4.86 billion.
- Statutory forecasts increase by $88 million.
$ billion (budgetary) | 2019–20 Authorities to Date | 2019–20 Supplementary Estimates (A) |
---|---|---|
Voted appropriations | 126.5 | 4.9 |
Statutory Items | 174.3 | 0.1 |
Total | 300.8 | 4.9 |
Major Voted Items
There are 8 items of $150M or more in these Estimates:
- Services for Veterans and their families: $676.9M
- Compensation adjustments: $466.7M
- Help developing countries address the impact of climate change: $296.0M
- Workload Migration and Cloud Architecture Programs: $197.2M
- Armoured combat support vehicles: $176.9M
- International assistance: $175.6M
- Reconciliation on Indigenous rights and fisheries issues: $171.0M
- Zero-Emission Vehicles Program: $165.5M
Changes to the Structure of Government
These Supplementary Estimates reflect a number of machinery changes:
New Organization | Previous Organization |
---|---|
Canadian Accessibility Standards Development Organization | Not applicable |
Canadian Energy Regulator | National Energy Board |
Department of Crown-Indigenous Relations and Northern Affairs | Department of Indian Affairs and Northern Development |
Impact Assessment Agency of Canada | Canadian Environmental Assessment Agency |
National Security and Intelligence Review Agency Secretariat | Security Intelligence Review Committee |
Office of the Intelligence Commissioner | Office of the Communications Security Establishment Commissioner |
Next steps
- December 2019
Introduction of the appropriation bill for Supplementary Estimates (A). - February 2020
Tabling of the 2019-20 Supplementary Estimates (B).
Tabling of the 2020-21 Main Estimates. - March 2020
Introduction of appropriation bills for the Supplementary Estimates (B) and Main Estimates, anticipating Parliamentary approval by March 31, 2020.
Overview – 2019-2020 Supplementary Estimates (A)
Issue
What spending measures are contained in the Supplementary Estimates (A), 2019-20?
Key Facts
- $4.9 billion in total planned spending (voted and statutory) is allocated across 39 federal organizations.
- This represents a 3.8% increase in voted authorities since the Main Estimates, bringing the total for this fiscal year to $131.3 billion
Response
- These Supplementary Estimates enable the government to continue delivering important programs and services to Canadians.
- The $4.9 billion in total planned spending (voted and statutory) is allocated across 39 federal organizations.
- The majority is going towards investments that support Canada's veterans, address public service wage negotiation, climate change, reconciliation, immigration, defence, and innovation.
Background
Through these Supplementary Estimates, the Government is seeking parliamentary approval for $4.9 billion in new spending for 39 organizations. This represents a 3.8% increase since the Main Estimates, bringing the total voted authorities for this fiscal year to $131.3 billion. The size of these Estimates reflect the significant value of decisions taken outside the budget process. Roughly half of this new spending is for these 11 items:
- $677 million to Veterans Affairs for demand-driven programs and services for veterans.
- $467 million to the Treasury Board for government-wide collective bargaining.
- $296 million to Global Affairs to help developing countries address the impact of climate change.
- $197 million to Shared Services for Workload Migration and Cloud Architecture Programs.
- $177 million to National Defence for the armoured combat support vehicle fleet.
- $176 million to Global Affairs for the International Assistance Envelope Crisis Pool Quick Release Mechanism.
- $171 million to 3 organizations – Crown-Indigenous Relations and Northern Affairs, Fisheries and Oceans, and Parks Canada – to advance reconciliation on Indigenous rights and fisheries issues.
- $166 million to Transport for the Zero-Emission Vehicles Program.
- $121 million to Immigration, Refugees and Citizenship for the Interim Housing Assistance Program.
- $116 million to the Royal Canadian Mounted Police Compensation for members injured in the performance of duty.
- $101 million to Veterans Affairs for the Toth class action settlement agreement.
2019-20 Supplementary Estimates (A) - Treasury Board of Canada Secretariat
Access to Information Processes – Changes
Issue
What has the Government done to improve access to information?
Key Facts
- In June, the Government brought into effect the most important changes to the Access to Information Act since 1983.
- More than 8,000 titles of memoranda have already been published online.
- A review of the Access to Information Act will be initiated by June 21, 2020.
Response
- In June, the Government brought into effect the most important changes to the Access to Information Act since 1983. As a result,
- The Information Commissioner now has the authority to order the release of government information;
- More than 8,000 titles of memoranda have been published online.
- This is just the start:
- In January, we will publish the Question Period notes of all Cabinet Ministers; and then, we'll publish the ministerial transition binders, and Parliamentary committee appearance binders.
- The Government will continue its unprecendented work to enhance openness and transparency by initiating a review of the Access to Information Act by June 21, 2020.
Background
In the previous mandate, the Government undertook to review the Access to Information Act in two phases:
- Phase I: targeted set of legislative amendments (Bill C-58)
- Phase II: full review of the Act.
On June 21, 2019, Bill C-58 received Royal Assent, bringing into force a number of changes, including:
- giving the Information Commissioner the power to make binding orders in relation to access to information requests, including the release of government records;
- eliminating all fees apart from the $5 application fee;
- requiring institutions to proactively publish specific information known to be of interest to the public, without the need for a request;
- allowing government institutions within the same ministerial portfolio to work together to process requests more efficiently.
Bill C-58 also requires the Government to initiate a review of the Access to Information Act within one year of Royal Assent, or by June 21, 2020, and every five years afterwards.
Accessible Canada Act
Issue
What is the Government of Canada doing on accessibility?
Key Facts
- The Treasury Board Secretariat established the Centralized Enabling Workplace Fund. It is designed to support scalable and replicable demonstration projects, as well as research to improve the workplace for public servants with disabilities.
Response
- The Government is committed to helping Canadians with disabilities fully participate in their workplaces and communities.
- With the passing of the Accessible Canada Act, the federal public service released Nothing without Us: An Accessibility Strategy for the Public Service, which sets out measures to demonstrate leadership as an accessible employer and service provider.
- An inclusive federal public service is more innovative, efficient, and productive, and better reflects the true diversity of the people it serves.
Background
Employment and Social Development Canada (ESDC) is the lead on the Government of Canada's accessibility agenda. The Treasury Board Secretariat has a critical role to play in leading by example on accessibility within the Government of Canada.
The Accessible Canada Act, which became law last June, aims to identify, remove and prevent barriers for persons with disabilities.
At the time of the passing of the Accessible Canada Act, the federal public service released Nothing without Us: An Accessibility Strategy for the Public Service, which sets out measures the federal public service will take to demonstrate leadership as an accessible employer and service provider
The Treasury Board of Canada Secretariat is collaborating with other government departments and agencies to build an inclusive and barrier-free work environment in which all persons have equal access to opportunities in the federal public service. Recruitment of persons with disabilities into the federal public service has decreased and departures of employees with disabilities outpace those of their non-disabled counterparts. It is reported that public servants with disabilities have less access to promotions and career development opportunities.
Results of the Public Service Employee Survey for persons with disabilities show higher rates of discrimination and harassment and lower rates of engagement compared to employees who do not self-identify as having a disability.
The Treasury Board Secretariat established the Centralized Enabling Workplace Fund. It is designed to support scalable and replicable demonstration projects, as well as research to improve the workplace for public servants with disabilities.
TBS Vote 1 Program Expenditures
Issue
How much is TBS seeking in its 2019-20 Supplementary Estimates (A) for Vote 1, Program Expenditures?
Key Facts
- The Treasury Board of Canada Secretariat is seeking parliamentary approval to increase its Vote 1, Program Expenditures authorities by $13.9 million in the 2019-20 Supplementary Estimates (A).
Response
- The information in the Supplementary Estimates ensures continued transparency and accountability in the use of public funds to deliver programs and services to Canadians.
- TBS is seeking parliamentary approval to increase its Vote 1, Program Expenditures authorities by $13.9 million.
- This funding will serve to advance the material management project, settle claims arising from the White class action, fund the Centre for Regulatory Innovation and increase the participation of Inuit firms in the bidding process for government contracts.
Background
TBS is seeking parliamentary approval to increase its Vote 1, Program Expenditures authorities by $13.9 million, for the following six initiatives:
- Funding for the Government of Canada Financial and Material Management Solution Project ($4.9 million);
- Funding to support a healthy, diverse and inclusive public service ($3.9 million);
- Funding to settle claims arising from the White class action settlement agreement ($2.8 million);
- Funding for the Centre for Regulatory Innovation ($1.3 million);
- Funding to increase the participation of Inuit firms in the bidding process for government contracts and business opportunities in the Nunavut Settlement Area ($0.7 million); and,
- Funding for the Employee Wellness Support Program ($0.3 million).
TBS Vote 10 Government-Wide Initiatives
Issue
Why is the Government requesting $46 million for Government-Wide Initiatives?
Key Facts
- $44 million to compensate current and former federal government employees for severe personal or financial hardship experienced arising from the Phoenix system and pay administration issues.
- $1.75 million for a Capacity Fund that will help federal organizations address economic and competitiveness issues in the design and implementation of regulations.
Response
- The Treasury Board is requesting funding for this central vote to compensate public servants for severe hardship resulting from pay administration issues, and to improve regulatory design.
- The Government of Canada continues to recognize the fact that employees have been impacted by the implementation of the Phoenix pay system. Compensation will be provided to those who have experienced severe personal or financial hardship.
- This funding also supports Canada's competitiveness by improving the design and implementation of regulations.
Background
Through this vote in the Supplementary Estimates, the Treasury Board Secretariat requests funds for 2 initiatives.
The first provides $44 million to compensate current and former federal government employees for severe personal or financial hardship experienced arising from the Phoenix system and pay administration issues. Allocations from TB Vote 10 will reimburse departments for actual payments processed.
An additional $1.75 million for a Capacity Fund will help federal organizations address economic and competitiveness issues in the design and implementation of regulations. Allocations will be made from TB Vote 10 as individual departmental proposals are finalized and approved.
Hot Issues for TBS
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In this section
Conflict of Interest Act
Digital Government
Environment
Estimates Reform
Government Finances
Lobbying Act
Mental Health
Pay
- Pay - Collective Bargaining (OCHRO)
- Pay Equity (OCHRO)
- Pay – Next Generation Pay System (OCIO)
- Pay – Phoenix – Damages (OCHRO)
- Pay – Stabilization (OCHRO)
- Pay - Total Compensation – Managing Costs
Public Servants Disclosure Protection Act
Regions
Regulatory Modernization
The Conflict of Interest Act
Issue
The Conflict of Interest Act required a one-time statutory review which was completed in 2014.
Key Facts
- The Conflict of Interest Act is administered, interpreted, and enforced by the Conflict of Interest and Ethics Commissioner, an independent officer of Parliament.
- The President of the Treasury Board is the responsible minister for the Conflict of Interest Act.
- The Conflict of Interest Act required a statutory review by a Parliamentary committee. This review was completed in 2014 by the Standing Committee on Access to Information, Privacy and Ethics (ETHI). No further reviews are required by law.
Response
- The Government is committed to ensuring that federal public office holders carry out their duties with integrity and impartially.
- The Conflict of Interest Act imposes strict rules to minimize the possibility of conflicts between private interests and the duties of public office holders.
- We welcome input from parliamentarians and the Commissioner on how well the Conflict of Interest Act is achieving its objectives.
Background
The Conflict of Interest Act establishes conflict of interest and post-employment rules for public office holders. Public office holders covered under the Act include ministers, ministerial staff, and Governor-in-Council appointees such as deputy heads. The Act plays an important role in maintaining public confidence in the integrity of public office holders and government decision-making.
The Conflict of Interest and Ethics Commissioner administers the Conflict of Interest Act by establishing compliance measures, investigating possible contraventions of the Act, and providing advice to public office holders on their obligations. The Commissioner is an officer of Parliament. Officers of Parliament are independent from the Government and report directly to Parliament. On January 9, 2018, Mario Dion was appointed as the second Conflict of Interest and Ethics Commissioner.
The Conflict of Interest Act came into force on July 9, 2007, which created, for the first time, a legislative regime governing the ethical conduct of public office holders. Prior to this date, public office holders were subject to non-statutory codes of conduct.
The Conflict of Interest Act required a one-time statutory review by a parliamentary committee. In 2014, the Standing Committee on Access to Information, Privacy and Ethics (ETHI) completed the review of the Act. ETHI recommended some changes to the law, including expanding the Act’s definition of public office holder, clarifying certain provisions, and adjusting the administration of the Act. Later that year, a regulation was enacted to add new positions subject to the Act (e.g., Governor of the Bank of Canada). The Act has not received any further substantive amendments.
Digital Government
Issue
The Prime Minister announced the appointment of a Minister for Digital Government.
Key Facts
- On November 20th, 2019 the Minister for Digital Government took on responsibility for Shared Services Canada.
- The Policy on Service and Digital will take effect April 1, 2020, creating a set of integrated rules that expresses how the Government of Canada will manage service delivery, information and data, information technology, and cyber security modernized in the digital era.
- At the 2019 Digital Nations Summit in Uruguay Canada formally accepted the 2020 chairmanship of the Digital Nations for 2020.
Response
- Digital Government is about meeting citizens' needs for modernized services using the right technology.
- In 2019, we launched the Policy on Service and Digital to reaffirm the Government's commitment to making the shift to a more digital government and better service delivery.
- And Canada is playing a leading role internationally, recently accepting the 2020 chairmanship of the Digital Nations -- an international forum dedicated to advancing digital innovation around the world.
Background
On November 20th, 2019 the Minister for Digital Government was given responsibility for Shared Services Canada under both the Shared Services Canada Act and the Financial Administration Act.
Through the Budget Act 2018, the Government of Canada amended the Financial Administration Act to formalize the role of the Chief Information Office of the Government of Canada in legislation and elevate his position to a deputy minister-level position.
This reflected a commitment of the Government of Canada to strengthening the management of information technology in the federal government.
The Policy on Service and Digital will take effect April 1, 2020, creating a set of integrated rules that expresses how the Government of Canada will manage service delivery, information and data, information technology, and cyber security modernized in the digital era.
Canada is looking to deepen its international collaboration on digital through its engagement with the Digital Nations. The Digital Nations are a collaborative network for leading digital governments to share best practices, collaborate on common problems, identify improvements to digital services, and support and champion their digital economies. At the 2019 Digital Nations Summit in Uruguay Canada formally accepted the 2020 chairmanship of the Digital Nations for 2020.
Greening Government
Issue
The government is transitioning to low-carbon and climate-resilient operations, while also reducing environmental impacts beyond carbon. Led by the Centre for Greening Government in TBS, the government will ensure that we are a global leader in government operations that are low-carbon, resilient and green.
Key Facts
- As of December 2019, departments have reduced emissions by 32% below 2005 levels. These reductions have come from Government of Canada facilities and its fleet.
Response
- Our Government is committed to leading on climate change, which includes taking action on reducing the greenhouse gas emissions generated from its own operations.
- We must lead by example. Our Greening Government Strategy aims to reduce GHG emissions from federal operations by 80% below 2005 levels, striving to be carbon neutral, by 2050. At the end of 2019, we were at 32%.
- The Government is also committed to taking action to reduce plastic waste. By 2030, at least 75% of plastic waste generated by federal operations will be diverted away from landfills.
Background
By issuing the Greening Government Strategy, the Government has reaffirmed its commitment in greening the government’s own operations to demonstrate its leadership on climate change. It committed to reducing its own greenhouse gas emissions by 40% by 2030 (with an aspiration to achieve this target by 2025) and 80% below 2005 levels by 2050 (with an aspiration to be carbon neutral).
In 2018-19, the government’s greenhouse gas reporting was extended to include all departments that own significant numbers of vehicles and buildings. Although additional departments were included, the federal government was able to maintain its course on emissions reduction. In fact, the government showed an overall reduction of 32% below 2005 levels, the same as the previous year. The result also indicates that departments took tangible steps to further reduce their emissions, because Canada experienced a hotter-than-average summer and a colder-than-average winter in 2018-19.
The Greening Government Fund, funded 13 projects in 2019-2020. The Fund promotes innovative approaches to reducing greenhouse gas emissions and provides funding for projects in departments and agencies to reduce greenhouse gases in their operations. The next round of project funding will be announced in April 2020.
In addition to the focus on reducing greenhouse gas emissions, the Greening Government Strategy includes commitments related to water consumption, waste, including new commitments on better managing the use and disposal of plastics, green procurement and resilience to the impacts of climate change.
In 2018, the Government announced new commitments to divert at least 75% of plastic waste generated by federal operations by 2030 by reducing unnecessary use of single-use plastics, increasing the reuse and recycling of plastic in government operations, buying more products made from recycled plastics, and reducing packaging waste.
Estimates Reform – Next Steps
Issue
What will be new or different in the Government's approach to the Estimates for the next fiscal year and their alignment with Budget 2020?
Key Facts
- This two-year change to the Standing Orders has now expired.
Response
- The Government is committed to supporting parliamentarians in their role to provide sound oversight, and make it easier for Canadians to understand how their tax dollars are spent.
- In 2017, a temporary change in Standing Orders allowed the Main Estimates to be tabled at a later date to reflect Budget measures.
- This two-year change to the Standing Orders has now expired.
- The Government will be taking stock of the changes made before proposing any next steps.
Background
There are currently no major changes planned for the upcoming fiscal year.
On Estimates processes:
- In 2017, provisional changes to House of Commons Standing Orders had allowed for Main Estimates to be tabled in the House of Commons by April 16.
- As these expired at the end of the last Parliament, the previous procedural requirements are back in place. Under these requirements, the President will table the 2020-21 Main Estimates in the House of Commons no later than February 28, 2020 as March 1st falls on a Sunday.
On Budget implementation in the Estimates:
- After the 2018 and 2019 federal Budgets, the next Estimates reflected the new voted spending in Treasury Board controlled budget implementation votes. This mechanism allowed for complete alignment and reconciliation of the accrual-based Budget with the cash-based Estimates.
- It also reduced the delay for departments to obtain Parliamentary authority for new spending, by securing the appropriation before the Treasury Board approved departmental submissions. Monthly online reporting ensured transparency on timing of Treasury Board approvals and the disposition of funds.
- However, there were mixed reviews of the implementation votes. Departments appreciated the flexibility in the timelines for obtaining Treasury Board approvals, and having fewer new approvals to risk-manage through the fiscal year.
- Many Parliamentarians perceived a reduced opportunity to influence or exert control over government spending – which greatly outweighed any process efficiencies the government achieved.
Public Accounts
Issue
The Public Accounts of Canada will be tabled in Parliament by the President of the Treasury Board.
Key Facts
- For the 21st year in a row, the Government of Canada has received a clean audit opinion for its consolidated financial statements.
Response
- The Government of Canada is committed to responsible financial management and oversight.
- The Public Accounts include the audited consolidated financial statements of the Government.
- For the 21st year in a row, the Government of Canada has received a clean audit opinion of its consolidated financial statements.
- This demonstrates the high quality of Canada’s financial reporting.
Background
Production and finalization of the Public Accounts of Canada is a joint responsibility between the Receiver General, the Office of the Comptroller General and the Department of Finance.
The Public Accounts reflect the Government’s audited consolidated financial statements and other detailed financial information for the fiscal year 2018-2019 that ended March 31, 2019.
- Volume I – includes the audited consolidated financial statements of the Government; the unmodified audit report from the Auditor General; a financial statements discussion and analysis, which presents 10 year comparative financial information; as well as details on certain financial statement components.
- Volume 2 – includes financial operations of the departments.
- Volume 3 – includes other supplementary information such as Losses, Ex Gratia payments and Ministers’ Office Expenditures.
The Auditor General is also expected to simultaneously table in Parliament, through the Speaker of the House, his observations on key financial audits. This year's focus will be on pay administration and National Defence's inventory of assets.
The Public Accounts are tabled in the House of Commons and undergo a review by the Public Accounts Committee.
The Public Accounts show a deficit of $14.0 billion for the fiscal year 2018-2019, from a budgetary deficit of $19.0 billion in 2017-18.
Budget 2018 projected a deficit of $15.8 billion for 2018-2019 (after deduction of the adjustment for risk).
Canadian Gender Budgeting Act
Issue
Under the Canadian Gender Budgeting Act, the President must make available analysis of impacts in terms of gender and diversity of existing Government programs on an annual basis.
Key Facts
- The program expenditure report (2019) is being produced as a sub-component of the 2018-19 Departmental Results Reports (DRRs). Each organization will post their GBA+ Supplementary Information Table on their own website.
Response
- The Government of Canada is committed to advancing gender equality and strengthening our use of gender-based analysis plus (GBA+) in our policy and decision-making.
- The new 2018 Canadian Gender Budgeting Act requires the government to make publicly available the analysis of impacts, in terms of gender and diversity, of government expenditure programs and tax expenditures.
- This information will be available through the 2018-19 Departmental Results Reports for each government organization. However, the Minister of Finance has already published his analysis in the 2019 Report on Federal Tax Expenditures.
Background
The Canadian Gender Budgeting Act received Royal Assent on December 13, 2018. The Act requires that: “Once a year, the President of the Treasury Board must make available to the public analysis of impacts in terms of gender and diversity of the existing Government of Canada expenditure programs that the President, in consultation with the Minister of Finance, considers appropriate.” Finance Canada has a separate obligation to report on the impact of tax expenditures.
GBA+ analysis supports the advancement of equality for all Canadians across many dimensions such as sex, sexual orientation, gender identity or expression, race, national and ethnic origin, Indigenous origin or identity, age, socio-economic condition, place of residence and disability.
The program expenditure report (2019) is being produced as a sub-component of the 2018-19 Departmental Results Reports (DRRs). Each organization will post their GBA+ Supplementary Information Table on their own website. The Tables will include information on their GBA+ governance structures, human resources devoted to GBA+ implementation, GBA+ results achieved under major initiatives, availability of administrative data for analysis, and summary of prior reporting on GBA+.
Finance Canada reported on the impact of tax expenditures by publishing “Gender-Based Analysis Plus of Existing Federal Personal Income Tax Measures”, included in the 2019 Report on Federal Tax Expenditures. This report examined the redistributive impact of the 2016 federal personal income tax system by gender and other intersecting identity factors.
Other than the requirement to publish once a year, other aspects of producing the CGBA report – including the specific form, contents, and timing – are at the discretion of the President, in consultation with the Minister of Finance.
Spending Reviews
Issue
The 2019 Electoral Platform included a commitment to a conduct a comprehensive review of spending and tax expenditures
Key Facts
- The 2019 Electoral Platform included a commitment to conduct a new comprehensive review of government spending and tax expenditures with expected savings of $2B in 2020-21, $2.5B in 2021-22 and 2022-23, and rising to $3B in 2023-24.
Response
- The Government of Canada remains committed to aligning its programs with the priorities and needs of Canadians, as they change over time.
- The continuous review of government resources and priorities is a sound management practice and good governance.
- These reviews also ensure that programs are delivering results for Canadians.
Background
The 2019 Electoral Platform included a commitment to conduct a new comprehensive review of government spending and tax expenditures with expected savings of $2B in 2020-21, $2.5B in 2021-22 and 2022-23, and rising to $3B in 2023-24.
During the last mandate, the government pursued a number of targeted departmental reviews and horizontal reviews led by the President of the Treasury Board and the Minister of Finance. The stated goal of these reviews was to ensure that programs were aligned with priorities and were delivering results for Canadians.
Budget 2019 announced the results of spending reviews undertaken during the last mandate. $221M of ongoing savings were achieved from reductions in advertising, professional services and travel, along with estimated savings of more than $3.0B annually starting in 2019–20 from changes to tax measures.
Overall, for Treasury Board, they identified concrete actions to improve the management of government programming and, to a limited degree, reduced spending on poorly targeted and inefficient programs.
The Lobbying Act
Issue
The Lobbying Act is required to be reviewed every five years and the last review was conducted in 2012.
Key Facts
- The Lobbying Act is administered, interpreted, and enforced by the Commissioner of Lobbying, an independent agent of Parliament.
- The President of the Treasury Board is the responsible minister for the Lobbying Act.
- The Lobbying Act requires a statutory review by a Parliamentary committee every five years.
- In its 2012 report on the previous statutory review of the Lobbying Act, the Standing Committee on Access to Information, Privacy and Ethics (ETHI) noted that the Act is generally working well in accordance with its objectives.
Response
- Lobbying is a legitimate part of our democratic system. The law recognizes the importance of free and open access to government and the need for Canadians to be able to know who is lobbying their government.
- The Government is committed to ensuring that the lobbying of federal office holders is conducted with the highest standards of integrity.
- We welcome opportunities to further the Lobbying Act’s transparency and accountability objectives.
Background
The purpose of the Lobbying Act is to ensure transparency and accountability in lobbying. The Act requires lobbyists to register and file returns on their communications with public office holders, which are published in the Registry of Lobbyists. The Lobbying Act is based on four key principles:
- Free and open access to government is an important matter of public interest.
- Lobbying public office holders is a legitimate activity.
- It is desirable that public office holders and the general public be able to know who is engaged in lobbying activities.
- The system of registration of paid lobbyists should not impede free and open access to government.
The Commissioner of Lobbying administers the Lobbying Act and develops the Lobbyists’ Code of Conduct, which governs the ethical conduct of lobbyists. The Commissioner is an independent agent of Parliament. Agents of Parliament operate at arms-length from the Government by carrying out duties assigned by statute and reporting directly to Parliament. On December 30, 2017, Nancy Bélanger was appointed to serve as the second Commissioner of Lobbying, for a seven-year term.
In 1989, the first federal lobbying law, the Lobbyists Registration Act, came into force. In 2008, the law was renamed the Lobbying Act and received several major amendments, including a five-year post-employment lobbying ban for certain senior public office holders.
The Lobbying Act requires a statutory review every five years by a parliamentary committee. In 2012, the Standing Committee on Access to Information, Privacy and Ethics (ETHI) completed the first statutory review of the Act. ETHI noted that the Act is generally working well in accordance with its objectives, but recommended some changes to the law. These recommendations included changes to lobbyists’ returns, banning the receipt of gifts from lobbyists, and adding administrative monetary penalties to the Act. However, no amendments were enacted. The Act is overdue for its next statutory review.
Coroner's Report on Death of CRA Employee and Mental Health
Issue
The Quebec Coroner’s Office issued a report in October 2019 relating to the death in 2017 of a former public servant, Linda Deschâtelets. The report made two recommendations for the Treasury Board Secretariat (TBS):
- that each federal institution apply the National Standard for Psychological Health and Safety in the Workplace; and
- that TBS work with unions to ensure employees’ pay-related issues are quickly resolved to improve workplace wellbeing and eliminate psychological stress.
TBS is reviewing the coroner's recommendations.
Key Facts
- Budget 2018 committed $71.9 million over six years and $3.6 million ongoing for Wellness, Inclusion and Diversity. This includes funding for the Centre of Expertise on Mental Health in the Workplace.
Response
- Our hearts go out to the friends and family of Madame Deschâtelets, and all other public servants who are struggling with mental health issues.
- The government is reviewing the coroner’s report and will provide a response.
- We are aware of ongoing significant efforts in the federal government to make mental health a priority in the workforce. Clearly there is more to be done.
- We are seized with the importance of our work to ensure a healthy public service, which includes affording all our employees personalized attention to resolve their pay files, whether related to the current pay system challenges or not.
Background
In January 2013, the Mental Health Commission of Canada, the Canadian Standards Association and the Bureau de normalisation du Québec launched the National Standard of Canada for Psychological Health and Safety in the Workplace (the Standard)—the first of its kind in the world.
The standard itself is voluntary, intended as a framework that provides tools, not rules, to help organizations in establishing a psychological health and safety management system contextualized to their workplace.
In March 2015, the former President of the Treasury Board and the Public Service Alliance of Canada (PSAC) reached an agreement to establish a Joint Task Force to address mental health in the federal public service.
Between December 2015 and January 2018, the Joint Task Force produced three reports, which include recommendations and guidance for federal organizations on culture change, leadership and engagement, education, training and workplace practices, communication and promotion, and measurement and accountability.
The third report is a roadmap to establish and maintain a Psychological Health and Safety Management System (PHSMS) in the federal public service, in alignment with the standard. The Centre of Expertise on Mental Health in the Workplace (CoE) provides advice, guidance and support to federal organizations in their efforts to implement a PHSMS aligned with the standard.
The CoE is a collaborative initiative between departmental officials and bargaining agents, and was a key recommendation from the Joint Task Force and employee consultations. Two co-chairs oversee the work of the CoE: one representing the Employer, the other Bargaining Agents.
Established in 2017, the CoE was initially supported through TBS internal reallocations; Budget 2018 confirmed funding for Wellness, Inclusion and Diversity ($71.9 million over six years and $3.6 million ongoing), the envelope through which the CoE is now funded.
Pay – Collective Bargaining
Issue
When does the Government expect to conclude collective agreement negotiations for the 2018 round of bargaining? How does the negotiation impasse declared by the Public Service Alliance of Canada impact this round of negotiations?
Key Facts
- To date, 34 agreements have been signed that cover close to 70,000 federal public service employees.
- No agreement has been reached with the Public Service Alliance of Canada; Public Interest Commission hearings are scheduled throughout this month.
- The government will prepare for all possible outcomes, including failure to reach an agreement.
Response
- The Government of Canada is honouring its commitment to negotiate in good faith with all public sector unions to reach agreements.
- To date, 34 agreements have been signed that cover close to 70,000 federal public service employees.
- We hope to continue to reach agreements for all employees that are reasonable for taxpayers and offer fair wage adjustments and provisions reflective of today’s work environment.
- We are disappointed that PSAC rejected a fair offer that included wage adjustments and provisions in line with the recent agreements signed by 34 other bargaining units.
- The Government of Canada remains open to returning to the bargaining table with the Public Service Alliance of Canada.
Background
Core Public Administration (CPA)
To date, 26 out of 28 groups covering 99% of the represented employees in the Core Public Administration (CPA) have served notice to bargain for the 2018 round. The Aircraft Operations (AO) and Ships’ Officers (SO) groups have not yet served notice to bargain.
On , the PSAC declared impasse for a second time and filed a request for conciliation (Public Interest Commission (PIC)) with the Federal Public Sector Labour Relations Board (FPSLREB).
In summer 2019, the Government reached agreements with 17 groups representing approximately 53,000 employees in the CPA.
Between to , TBS and the PSAC re-entered negotiations in an effort to reach a new collective agreement for the PA group and to discuss an agreement on damages caused by the Phoenix pay system for all PSAC members. The PSAC decided not to accept the Employer offers on either matter. The PIC proceedings are therefore continuing.
Treasury Board Secretariat (TBS) is preparing for the PIC hearings, scheduled as follows:
- PA group (-)
- EB group (-)
- TC group (-)
- SV group (-)
The parties may continue negotiating at any time during the PIC process toward reaching a settlement in advance of any recommendation by the PIC chair.
According to the Federal Public Sector Labour Relations Act (FPSLRA), the PIC chair must issue non-binding recommendations within 30 days of the hearing date. Taking into consideration a traditional Holiday period closure at the FPSLREB, the earliest date a PIC recommendation could be made is mid-January 2020, after which the parties may resume negotiations.
The government will prepare for all possible outcomes, including failure to reach an agreement. TBS and departments are ensuring that there are contingencies in place, including Essential Services Agreements (ESAs), should labour action be taken by the PSAC.
The PSAC cannot strike until seven days after the issuance of the PIC report and the conduct of a strike vote. The FPSLREB could release non-binding reports as early as one month after each hearing so PSAC should not be in a strike position until late January at the earliest. More likely, reports would be released in the spring of 2020. Nevertheless, they are able to engage in demonstrations and marches at any time.
Separate Agencies
Notice to bargain has been served by all groups in Separate Agencies (32 groups in total). Most negotiations commenced in the fall of 2018 or the winter of 2019.
To date, six Separate Agencies have reached 17 tentative agreements with groups representing close to 17,000 employees, or approximately 28% of the population in Separate Agencies.
The PSAC has also declared impasse for four separate agencies with PIC dates scheduled as follows:
- Union of Taxation Employees (UTE): &
- Union of National Employees and the Union of Canadian Transportation Employees: -
- Communications Security Establishment: -
- Canadian Food Inspection Agency: -
Pay Equity
Issue
What will the Government of Canada, as one of Canada’s largest employers, do to ensure men and women receive equal pay for work of equal value?
Key Facts
- The Pay Equity Act, received royal assent on , and will be brought into force by Order in Council at a later date.
- The Act will cover about 1.3 million individuals employed in federally-regulated workplaces, including the federal public service.
Response
- Canadians expect women to be full participants in the economic, social and democratic life of our country.
- The Government of Canada is moving forward with a multi-faceted strategy on gender equality and addressing the gender wage gap, strengthening the right to equal pay for work of equal value.
- In , Parliament passed the Pay Equity Act to address the systemic undervaluing of work performed by women.
- The Treasury Board Secretariat is supporting Employment and Social Development Canada to develop the regulations required to implement this legislation in federally regulated industries, including the federal public service.
Background
The Pay Equity Act, received royal assent on 8.
The Act also amends the Parliamentary Employment and Staff Relations Act so as to incorporate proactive pay equity requirements, and repeals the Public Sector Equitable Compensation Act, which is not currently in force.
The Pay Equity Act and the related amendments will be brought into force by Order in Council at a later date.
The legislation will cover about 1.3 million individuals employed in federally-regulated workplaces, including the federal public service.
Until the new legislation comes into force, the current system for public service pay equity complaints under the Canadian Human Rights Act continues to apply.
The Government is managing its response to existing pay equity complaints filed under the Canadian Human Rights Act, to the extent possible, in a way that is aligned with its agenda for pay equity reform. This includes taking measures to expedite pay equity litigation, reach negotiated settlements whenever warranted, and use informal dispute resolution.
Pay – Next Generation Pay System
Issue
To provide an update on the Next Generation HR and Pay system.
Key Facts
- In June, following an innovative and agile procurement process, the government announced it had selected Ceridian, SAP, and Workday as the qualified vendors for the Next Generation solution.
- In September, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.
Response
- We continue to work towards creating a long-term, sustainable, and efficient solution to meet the diverse needs of federal employees across Canada. Our priority remains delivering an integrated HR and Pay system that will pay our employees accurately and on time.
- In , the government committed $117 million to the NextGen HR and pay solution. We are committed to investing what is necessary to pay employees and to this end we have established a list of qualified vendors – Ceridian, SAP and Workday.
- We will establish partnerships with one or more of these vendors for pilot projects to test solutions against the real complexity of federal government HR and pay needs.
- The Government is currently working to identify a preferred vendor to conduct these pilot projects.
Background
Budget 2018 announced the government’s intention to move away from Phoenix and begin development of a pay system that will be better aligned with the complexity of the federal government’s human resources and pay structure.
The Treasury Board Secretariat received $16 million over two years, beginning in 2018-19, to explore replacement options for a next generation human resources and pay solution.
Ongoing stabilization efforts of the Phoenix Pay System remains a top priority for the government and is being pursued by Public Services and Procurement Canada, even as the Treasury Board Secretariat develops options for the next generation system to eventually replace Phoenix.
These options are being identified through a new, gated agile procurement process.
In June, following an innovative and agile procurement process, the government announced it had selected Ceridian, SAP, and Workday as the qualified vendors for the Next Generation solution. These vendors will continue to work with the government to identify the path forward in preparation for the replacement of Phoenix.
In September, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.
The government continues to work with stakeholders, such as bargaining agents, employees, and HR and pay practitioners, and will continue to engage in an open and transparent manner, so that the new solution can address the needs of a modern public service and its employees as soon as possible.
Pay – Phoenix - Damages
Issue
In , the Government of Canada announced that it finalized a joint agreement with bargaining agents, with the exception of the Public Service Alliance of Canada (PSAC), to compensate current and former employees who may have been impacted by the Phoenix pay system.
Key Facts
- In , the Government of Canada finalized a joint agreement with bargaining agents, with the exception of PSAC, to compensate current and former employees who may have been impacted by the Phoenix pay system.
- In , TBS went back to the negotiation table with PSAC on the issue of damages. The negotiations were unsuccessful.
- Full implementation of the agreement is expected by 2020.
Response
- Canada’s public servants deserve to be paid properly for their important work and the Government of Canada continues to take action on all fronts to resolve pay issues.
- The Government of Canada recognizes the fact that employees have been impacted, either directly or indirectly, by the implementation of the Phoenix pay system.
- We have reached an agreement with most bargaining agents to compensate current and former employees of the core public administration for damages caused by the Phoenix pay system.
- Implementing the terms of the damages agreement co-developed with federal public service unions in June 2019 remains a priority.
Background
In , the Government of Canada ratified a joint agreement with members of the joint Union-Management sub-committee on damages for compensation for employees impacted by the implementation of the Phoenix Pay system. A number of separate agencies have since signed a similar agreement.
PSAC, who represents 140,000 employees, has rejected the agreement, stating the compensation is insufficient.
The agreement includes up to five days of additional annual leave for employees and a cash pay-out equivalent to this leave for former employees or the estates of deceased employees
Additional compensation, evaluated on a case-by-case basis, will be provided for those who missed opportunities to earn interest on savings accounts or other investments; experienced delays in receiving severance or pension payments; and/or experienced severe personal or financial hardship due to Phoenix pay issues.
Over the summer, federal organizations credited eligible employees with additional vacation days for damages caused by Phoenix. This leave represents general compensation for financial and/or non-financial damages caused by Phoenix, including but not limited to general stress, aggravation and lost time.
Treasury Board of Canada Secretariat worked with bargaining agents to launch an online claims process by which former employees can request a payment for general compensation for damages, which is a payment equivalent to the leave credited to current employees. These former employees can now go online and access what is owed to them.
Other provisions for damages for current and former employees will be implemented in the months to come. These provisions will address the severe personal or financial hardship some experienced due to Phoenix pay issues, such as delays in receiving pension payments or lost investment income.
Pay – Stabilization
Issue
The government has been working on a number of fronts to address ongoing issues with the Phoenix pay system. In parallel, Budget 2018 committed to move away from the Phoenix pay system, and toward developing the next generation human resources and pay solution.
Key Facts
- In June, following an innovative and agile procurement process, the government announced it had selected Ceridian, SAP, and Workday as the qualified vendors for the Next Generation solution.
- In September, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.
Response
- Canada’s public servants deserve to be paid properly for their important work and the Government of Canada continues to take action on all fronts to resolve pay issues.
- The Government of Canada recognizes the fact that employees have been impacted, either directly or indirectly, by the implementation of the Phoenix pay system.
- In addition to ongoing investments in stabilization and our continuing work to advance the Next Generation pay solution, the government is implementing an agreement reached with 15 bargaining units to compensate more than 140,000 employees who have been impacted by the Phoenix pay system, with similar agreements negotiated by separate agencies with their respective bargaining agents.
- TBS is committed to providing annual updates on the government’s Phoenix pay system expenditures through its Departmental Results Report (DRR), which will be tabled in the coming months.
Background
The Transformation of Pay Initiative was implemented in 2016, to:
- Replace the government’s 40-year old payroll system with Phoenix; and,
- Implement a new centralized compensation service model, with consolidated capacity within a Public Services and Procurement Canada Pay Centre (PSPC).
Difficulties with the implementation of Phoenix have since resulted in thousands of employees experiencing problems with their pay. Since 2017, a joint PSPC and Treasury Board of Canada Secretariat (TBS) integrated team has been working on actions to stabilize the pay system, including: adopting a robust governance and reporting structure, engaging with key stakeholders including public service bargaining agents, increasing compensation advisor capacity, leading select business process changes across government, and implementing timeliness standards for HR actions that lead to pay.
Budget 2018 committed $431.4 million over five years to continue addressing current Phoenix issues, including the hiring of additional staff to support the pay system.
Budget 2019 provided an additional $523.3 million over five years, starting in 2019-20, to ensure that adequate resources are dedicated to addressing pay issues. Canada Revenue Agency (CRA) received an additional $9.2 million in 2019-20 to quickly and accurately process income tax reassessments for federal government employees that are required due to Phoenix pay issues, and to support related telephone enquiries.
Budget 2019 also referenced accelerated progress on NextGen work, noting that TBS has been able to identify options with the potential to successfully replace the Phoenix pay system with an integrated HR and Pay solution. This work has been underway since Budget 2018 announced the Government’s intention to eventually move away from Phoenix and provided $16 million over two years (2018-19 and 2019-20) to begin development of options and recommendation for the next generation of the federal government’s Integrated HR and Pay system.
Pay – Total Compensation – Managing Costs
Issue
Total compensation costs have grown in recent years and reached a record high in 2017-18. The federal government is taking appropriate actions to ensure costs are effectively managed.
Key Facts
- $60.3 billion in total compensation costs in fiscal year 2017-18
- 34 collective bargaining agreements recently concluded, covering 65,000+ federal employees
Response
- The Government is committed to ensuring that overall employee compensation, including benefits, is reasonable, affordable, and aligned with that offered for similar occupations in the Canadian labour market.
- The Government will continue to ensure that employees and pensioner benefits plans are managed effectively and efficiently.
- We will continue to negotiate in good faith with all public sector unions to reach agreements that work for public servants and Canadians.
Background
Total compensation costs reached $60.3 billion in fiscal year 2017-18, up from $54.2 billion in the previous year.
The increase in compensation costs in recent years has largely been driven by decreases in interest rates, which have led to a re-assessment of the federal government’s liability for pensions and benefits.
- Changes in interest rates are beyond the control of the federal government.
- Over time, the return of interest rates to more typical levels can be expected to moderate future compensation costs.
The federal government’s significant investment in benefits for veterans of the Canadian Armed Forces have also led to higher costs in recent years. In particular, the introduction of Pension for Life for veterans led to a significant one-time cost in 2017-18.
Through good faith collective bargaining, the federal government has reached 34 agreements during the current round of negotiations, covering more than 65,000 employees in the federal public service.
- This includes 17 agreements with 11 bargaining agents representing employees in the core public administration, as well as 17 agreements with four bargaining agents representing employees working in separate agencies.
- These agreements, which include economic wage increases over four years at 2% for each of the first two years and 1.5% for each of the remaining two years, are reasonable for taxpayers and offer employees fair wage adjustments and provisions reflective of today’s work environment.
The federal government will continue to negotiate in good faith with remaining bargaining agents with the goal of achieving further reasonable results.
Public Servants Disclosure Protection Act Review – Implementation of Government Response Commitments
Issue
In 2017, recommendations for legislative amendments to the Public Servants Disclosure Protection Act were made. What has been done so far to improve the internal disclosure regime?
Key Facts
- Since 2015, there has been an increase in disclosures of 34.5%, however the percentage leading to findings of wrongdoing has remained stable, indicating employees are increasingly comfortable with the process. In the same period, there has been a 3.5% increase in the number of federal public servants.
- The OCHRO has undertaken a number of activities to foster an environment where public servants feel safe and protected to come forward, including:
- conducting outreach and education activities to inform public servants about the disclosure of wrongdoing process and protection against acts of reprisal
- establishing a Centre of Expertise on Mental Health in the Workplace
- establishing a Centre for Wellness, Inclusion and Diversity
Response
- The Government is committed to promoting a positive and respectful public sector culture that is grounded in values and ethics.
- The Public Servants Disclosure Protection Act helps to sustain an ethical workplace culture and supports the integrity of the federal public sector.
- At the request of the President of the Treasury Board, the Standing Committee on Government Operations and Estimates undertook a review of the Public Servants Disclosure Protection Act. That committee tabled a report in 2017 containing 15 recommendations.
- In response, the Government of Canada has made, and continues to make, meaningful improvements to the federal disclosure process.
- These include enhancing reporting, providing guidance on the disclosure process, and hosting training sessions—all of which support organizations and protect public servants who disclose wrongdoing.
Background
In , the Standing Committee on Government Operations and Estimates tabled its report on their independent review of the Public Servants Disclosure Protection Act. The report contained 15 recommendations covering issues such as the definition of terms, training, protection of whistleblowers, research and assessments.
In , the Government committed to implement improvements to the administration and operation of the internal disclosure process and to protection from acts of reprisal. The Government did not commit to legislative amendments, given the complexity of the Act and consultation required.
In , the Standing Committee on Government Operations and Estimates adopted a motion to invite the President of the Treasury Board to provide a briefing on the progress made by the Government in implementing the recommendations made by the Committee in its statutory review of the Public Servants Disclosure Protection Act.
The Office of the Chief Human Resources is leading the implementation of activities in support of these commitments. More generally, we have taken a number of actions to foster an environment where public servants feel safe and protected to come forward, including:
- conducting outreach and education activities to inform public servants about the disclosure of wrongdoing process and protection against acts of reprisal;
- establishing a Centre of Expertise on Mental Health in the Workplace, helping implement the National Standard of Canada for Psychological Health and Safety in the Workplace;
- establishing a Centre for Wellness, Inclusion and Diversity, providing public servants with a platform for engaging with these issues and conducting research and analysis;
- taking steps to address harassment and violence in the workplace, including providing guidance to deputy heads, managers, departmental advisors and public servants on what constitutes harassment as well as how to prevent and resolve harassment in the workplace; and
- completing the first phase of Policy Suite Reset for the Policy on People Management and the Policy on the Management of Executives, which sets the foundation for the ongoing adaptation of policies to better support an ethical workplace culture in which public servants feel safe to come forward without fear of reprisal.
In addition, we have kept a pulse on this issue by:
- monitoring departmental activities via the Management Accountability Framework as it relates to people management; and
- monitoring public servant sentiment via the annual Public Service Employee Survey.
Equalization and fiscal Stabilization
- Some provinces are pressing for reforms to the Equalization and Fiscal Stabilization programs. The Premier of Alberta has identified Fiscal Stabilization as a priority for Alberta and has requested retroactive changes to the program that he estimates would result in a payment to Alberta of $2.4 billion.
Key Messages
Fiscal Stabilization
- The Government appreciates the gravity of the situation in Alberta and Saskatchewan.
- I have also heard the concerns raised by our colleagues in these provinces about the Fiscal Stabilization program.
- The Minister of Finance will be launching a discussion on the objectives and the parameters of the Fiscal Stabilization program at the upcoming December Finance Ministers’ Meeting, with a view to considering any appropriate adjustments.
Equalization
- As set out in the Constitution, Equalization’s objective is to help provincial governments to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.
- The Minister of Finance will be consulting with provincial and territorial Finance Ministers on their priorities for the next renewal of Equalization and Territorial Formula Financing, as well as the Stabilization program.
Background
- The legislation governing the Equalization program was renewed for a five-year period beginning through Budget 2018. The current legislation expires in March 2024.
- Equalization totalled $19.8 billion in 2019-20. It is paid out of federal revenues from taxes collected across the country and is unconditional. Provincial governments do not contribute to Equalization. Since 2009-10, the total Equalization payout is legislated to increase in line with nominal GDP.
- The federal government also provides financial assistance through the Fiscal Stabilization program to provinces that are facing significant year-over-year declines in their revenues resulting from extraordinary economic downturns. For a given fiscal year, the payment to a province is limited to $60 per capita. This limit was put in place in 1987 and has not been updated since. Alberta’s payments for 2015-16 and 2016-17 were constrained by this per capita limit.
- For fiscal year 2015-16, Newfoundland and Labrador received a payment of $32 million and Alberta received a payment of $251 million.
- For fiscal year 2016-17, Saskatchewan received a payment of $20 million and Alberta received a payment of $251 million.
- On , the Council of the Federation expressed support for removing the cap on the Fiscal Stabilization program indicating that “Changes could include, but are not limited to, removing the per capita cap, lowering the non-resource revenue threshold and retroactive payments over the last five years”.
- The Premiers of Alberta and Saskatchewan have been critical of these programs. The Premier of Alberta claims it is unfair that Equalization payments continue to increase while Stabilization payments are subject to a cap. He has asked that the $60 per capita limit on payments under the Fiscal Stabilization program be lifted retroactively and estimated this would deliver assistance of $2.4 billion to Alberta. He has also threatened to hold a referendum on removing Equalization from the Constitution.
Regulatory Modernization
Issue
In response to stakeholders and businesses, Canada needs to improve its regulatory system.
Key Facts
- Understanding the importance of this work to Canadian businesses, the Government announced a series of new initiatives through Budget 2018, the 2018 Fall Economic Statement, and Budget 2019, focused on enhancing agility in the regulatory system and innovation in Canada.
Response
- Our recent consultations have shown that Canada’s regulatory system needs to be more efficient and agile, and less burdensome.
- The 2018 Fall Economic Statement and Budget 2019 announced initiatives and funds to show our commitment to reshape the regulatory system in Canada.
- The Government is taking steps to simplify regulations, eliminate regulatory barriers, and encourage innovation.
- This will help Canadian businesses to grow, while continuing to protect Canadians’ health, safety, security and the environment.
Background
Budget 2018 provided funding for an online regulatory consultation portal, for regulatory cooperation work with provinces and territories, and three years of funding for targeted regulatory reviews in key economic sectors. It also set out the first tranche of reviews in the health and biosciences, agri-food and aquaculture, and transportation and infrastructure sectors.
In its 2018 Fall Economic Statement, the Government announced a set of new initiatives focused on enhancing agility in the regulatory system:
- exploring making competitiveness part of regulators’ mandates;
- announced the review of the Red Tape Reduction Act;
- introducing an annual Regulatory Modernization Bill;
- establishing an External Advisory Committee on Regulatory Competitiveness;
- launching a Centre for Regulatory Innovation; and
- $10 million fund to build regulatory capacity within the Government.
Budget 2019 expanded on this work by announcing the completion of the first round of targeted regulatory reviews in key economic sectors. Regulatory Roadmaps were released shortly thereafter with the results of the reviews, with over $200 million in funding allocated in support of the Roadmaps. The second round of targeted regulatory reviews is focussing on: clean technology; digitalization and technology neutrality; and international standards.
Budget 2019 also provided permanent funding to TBS to continue its leadership in promoting regulatory cooperation.
The Government introduced the first annual Regulatory Modernization Bill, through the Budget Implementation Act 2019, to eliminate outdated legislative requirements that are barriers to regulatory modernization. On , the Government established the External Advisory Committee on Regulatory Competitiveness, as first outlined in the 2018 Fall Economic Statement. The Committee, which brings together business leaders, academics and consumer representatives from across the country, has already provided two recommendation letters to the President of Treasury Board, including with respect to the second round of Targeted Regulatory Reviews.
2019-20 Supplementary Estimates (A) - Government-Wide / Major Items
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In this section
Defence and Foreign Affairs
- Fleet Renewal – Coast Guard (DFO) (EMS)
- Fleet Renewal – Marine Atlantic (DFO) (EMS)
- Global Affairs (GAC) (EMS)
- National Defence (DND) (EMS)
- Security Issues (CBSA, CATSA, CSE, DND, NSIRA, RCMP) (EMS)
Environmental Issues
- Environmental Issues - Environmental and Indigenous Concerns around the Trans Mountain Expansion Project (DFO, Transport) (EMS)
- Environmental Issues - Environmental Protection and Contaminated Sites Management (GAC, Transport, CIRNA/ISC, CRA, DFO, Parks, PSPC) (EMS)
- Zero-Emission Vehicle Program (Transport) (EMS)
Government Operations
- Vote 5 - Government Contingencies during the Election Period (TBS) (EMS)
- Workload Migration and Cloud Architecture Programs (SSC) (EMS)
Pay
- Pay - Funding for the Government's Pay System (PSPC) (EMS)
- Pay - TBS Vote 15 Compensation Adjustments (TBS) (EMS)
Pensions, Veterans Affairs and Settlements
- Veterans Affairs (VAC) (EMS)
- Indexation of Disability Pensions (VAC, RCMP) (EMS)
- Out-of-Court Settlements (VAC, CIRNA, Health, RCMP, STATCan, TBS) (EMS)
Reconciliation
- Indigenous Issues (DFO, CIRNA, Parks) (EMS)
- Indigenous Issues - Missing and Murdered Indigenous Women (PCO) (EMS)
Regions, Immigration, Social and Cultural Issues
Fleet Renewal – Coast Guard
Issue
Why is the Government requesting funds for the Canadian Coast Guard?
Key Facts
- $72 million for Fisheries and Oceans for recapitalization of the Canadian Coast Guard fleet.
Response
- The Canadian Coast Guard saves lives, protects the environment, and helps our economy grow, while also keeping Canada’s waters safe, secure, and open.
- The Coast Guard fleet is aging and most of its ships are beyond their normal life expectancy.
- This proposed funding would address the urgent need to renew the fleet so that the Coast Guard can continue its essential and life-saving work.
Background
In , the Prime Minister announced the renewal of the Canadian Coast Guard fleet. As a first step, this renewal will provide up to 18 new large ships built in Canadian shipyards, helping the Coast Guard continue to deliver its important services, and creating good, middle class jobs across the country.
Total funding for the 18 large ships is forecast at $15.7 billion, which represents early estimates of project budgets including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship will be announced following contract negotiations.
These Supplementary Estimates include $72 million for the Department of Fisheries and Oceans to begin the definition phase of this project.
Fleet Renewal – Marine Atlantic
Issue
Why is the Government requesting funds to renew the Marine Atlantic fleet?
Key Facts
- In 2017-18, federally funded ferry services in eastern Canada helped move more than 800,000 passengers and 100,000 commercial vehicles.
Response
- The Government is committed to maintaining safe and reliable ferry services in Canada.
- In Eastern Canada, ferry services help move hundreds of thousands of hard-working Canadians and commercial vehicles each year.
- Funding in these Supplementary Estimates will be used by Marine Atlantic to begin to implement its long-term fleet strategy, including the procurement of a new vessel.
Background
Marine Atlantic is a Crown corporation tasked with fulfilling the constitutional mandate of offering freight and passenger service between North Sydney, Nova Scotia and Port aux Basques, Newfoundland and Labrador.
Marine Atlantic operates a fleet of ice-class vessels – ferries with additional strengthening and specifications to enable navigation through sea ice.
To maintain safe and reliable ferry services, Budget 2019 proposed to invest in eastern Canada ferries, including Marine Atlantic.
These Supplementary Estimates include $3 million for Marine Atlantic to begin to implement its long-term fleet strategy, including the procurement of a new vessel.
The new vessel is expected to enter service in fiscal year 2023-24.
Global Affairs
Issue
What spending measures are included in these Supplementary Estimates for Global Affairs Canada?
Key Facts
- $565 million to Global Affairs Canada.
Response
- Canada plays a leading role in the world by standing up for, and providing assistance to, some of the world’s most vulnerable citizens.
- That is why we are allocating additional funding to support Canada’s broader global humanitarian efforts to provide assistance when crises and unforeseen events occur.
- New funding for climate change allows Canada to support developing countries in strengthening their climate actions.
Background
These Supplementary Estimates provide $565 million to Global Affairs Canada. Two significant initiatives account for most of these funding requirements:
- $296 million is to help developing countries address the impact of climate change.
- In , Canada announced $2.7 billion to help developing countries tackle climate change over five years. Funding in these Supplementary Estimates will be used for contributions to the International Fund for Agricultural Development and to the World Bank.
- $176 million is provided for the crisis pool under the International Assistance Envelope Crisis Pool Quick Release Mechanism.
- This funding will be used to provide humanitarian assistance in response to major international crises such as natural disasters, food crises, conflict, political upheaval, and sudden intensification of lower-level crises or other unforeseen events.
- The department responds to these complex emergencies through grant and contribution payments to United Nations agencies, the Red Cross Movement, and Canadian and international non-government organizations.
National Defence
Issue
What spending measures are included in these Supplementary Estimates for National Defence?
Key Facts
- $427 million to National Defence ($243 million for capital expenditures and $185 million for operating expenditures)
Response
- Canada’s security and prosperity go hand in hand, and we have always been ready to share the burden and responsibility of making the world a safe place.
- Support for a capable military with the ability to operate effectively is an important instrument of Canada’s national defence and foreign affairs policies.
- This funding supports investments in the maintenance and modernization of defence capital, such as vehicles, vessels and their supporting infrastructure.
- Additional operating funds provide compensation and benefits to the personnel who serve in the Canadian Forces and cover the costs of departmental operations in Canada and peacekeeping missions abroad.
Background
These Supplementary Estimates provide $427 million to National Defence.
- $243 million is for capital expenditures, including for example:
- $177 million to support and upgrade the armoured combat support vehicle fleet. Funding will be used to purchase 360 armoured combat support vehicles, which are expected to be delivered between 2020 and 2025.
- $27 million to recapitalize the A/B jetty at Canadian Forces Base Esquimalt.
- $26 million for the definition phase of the Hornet Extension Project, with the goal of ensuring that the CF-18 Hornet fighter fleet is operational until 2032.
- $8 million for the Remotely Piloted Aircraft System to provide an enhanced intelligence, surveillance and reconnaissance in Canada’s Defense Policy.
- $185 million is for operating expenditures, including:
- $94 million for compensation and benefits for Canadian Armed Forces personnel;
- $48 million to increase the number of regular Force and Reserve members on the Defence Team; and
- $42 million to cover costs incurred for Operation Presence, the UN Peacekeeping Operation in Mali, which was completed in .
Security Issues
Issue
How much of the funding in Supplementary Estimates is for security?
Key Facts
- $868 million for the Canada Border Services Agency, the Canadian Air Transport Security Authority, the Communications Security Establishment, National Defence, the National Security and Intelligence Review Agency Secretariat and the RCMP.
Response
- The Government of Canada is committed to keeping Canadians safe from a range of risks and threats.
- Canada’s safety and security needs to continue to evolve and our focus is on strengthening transportation security, protecting ports of entry, investigating threats, and supporting intervention and enforcement initiatives.
- Funding will also help improve the government’s Passenger Protect Program to reduce airport delays and to enhance security of air travel.
Background
These Supplementary Estimates include:
- $67 million for the Canada Border Services Agency;
- $23 million for the Canadian Air Transport Security Authority;
- $20 million for the Communications Security Establishment;
- $464 million for the Department of National Defence;
- $20 million for the National Security and Intelligence Review Agency Secretariat;
- $274 million for the Royal Canadian Mounted Police.
These amounts include $17.4 million for the Passenger Protect Program which screens commercial flights for individuals who have been listed as threats to aviation security.
- This funding will support operations of the Program and the introduction of a redress program to prevent false matches of people with names on the list.
Environmental Issues – Environmental and Indigenous Concerns around the Trans Mountain Expansion Project
Issue
Why is the Government requesting funds for the Trans Mountain Expansion Project?Key Facts
- $76 million to strengthen environmental protections and address concerns raised by Indigenous groups.
Response
- The environment and the economy go hand in hand. In approving the Trans Mountain Expansion, the Government committed to investing every dollar it earned from the project in Canada’s clean energy transition.
- Strong environmental protections have been and continue to be put in place; additional funding in these Supplementary Estimates represent steps towards mitigating the effects of the project by implementing the recommendations outlined by the National Energy Board, along with the Oceans Protection Plan and the national climate plan.
- This funding also responds to new accommodation measures and conditions to appropriately address potential impacts on Indigenous rights and concerns expressed by Indigenous communities.
Background
These Supplementary Estimates include $76 million to strengthen environmental protections and address concerns raised by Indigenous groups regarding the Trans Mountain Expansion Project:
- $44 million to Fisheries and Oceans for additional departmental capacity and transfer payments, in order to engage with Indigenous communities and deliver on regulatory review responsibilities; and
- $32 million to Transport for transfer payments to Indigenous communities for work on marine safety considerations.
In June 2019, the Government published the Trans Mountain Expansion Project Crown Consultation and Accommodation Report. It describes the engagement process with Indigenous groups, detailing the process and content of consultations and the accommodation measures that emerged.
Environmental Issues – Environmental Protection and Contaminated Sites Management
Issue
How much funding is the government providing in these supplementary Estimates for measures to protect the environment?
Key Facts
- $542 million for a variety of environmental protection and remediation measures.
Response
- Tackling climate change is one of the defining environmental challenges of our time.
- These Supplementary Estimates provide over $450 million to address climate change, including almost $300 million to help developing countries address the impacts of climate change.
- Funding will also be used to assess, manage and remediate federal contaminated sites, to protect the Southern Resident Killer Whale population, to develop new national parks and national marine conservation areas and to reduce plastic waste.
- These funding items support immediate actions Canada can take to protect the environment, wildlife and natural places and the transition to a cleaner economy.
Background
These Supplementary Estimates include $542 million for a variety of environmental protection and remediation measures:
- $296 million for Foreign Affairs, Trade and Development to help developing countries address the impact of climate change;
- $166 million for Transport for the Zero-Emission Vehicles Program;
- $42 million for Crown-Indigenous Relations and Northern Affairs and Indigenous Services Canada to assess, manage and remediate federal contaminated sites;
- $17 million for Canada Revenue Agency to implement and administer the federal fuel charge and the climate action incentive payment for Alberta;
- $16 million for Fisheries and Oceans, Transport and the Parks Canada Agency to protect the Southern Resident Killer Whale population;
- $3 million for the Parks Canada Agency to develop new national parks and national marine conservation areas; and
- $2 million for Crown-Indigenous Relations and Northern Affairs, Fisheries and Oceans and Public Works and Government Services for research, regulations, and measures to reduce plastic waste and to promote the reuse and recycling of plastics.
Zero-Emission Vehicle Program
Issue
What is the Zero-Emission Vehicles Program? Why did the department receive an allocation from TB Vote 5, Government Contingencies, for this program?
Key Facts
- Over 25,000 Canadians and Canadian businesses have benefited from this Program’s rebates since its launch in May 2019.
- Zero-emission vehicle sales have increased 32% since last year.
Response
- The Government is supportive of transitioning to a low carbon future and encouraging more Canadians to use zero-emission vehicles.
- This program helps make zero-emission vehicles more affordable and available for Canadians.
- Public demand for zero-emission vehicles and this program were higher than expected; additional funding helps us to continue supporting electric vehicle adoption in Canada.
Background
The program provides point-of-sale rebates for purchases and leases of eligible zero-emission vehicles, “ZEVs”.
There are two types of rebates; both are paid as grants to dealerships. Battery electric, hydrogen fuel cell and longer-ranged plug-in vehicles are eligible for a $5,000 rebate. Shorter-ranged plug-in vehicles are eligible for a $2,500 rebate.
Since its launch in May 2019, over 25,000 Canadians and Canadian businesses have benefited from these rebates. ZEV sales have increased 32% since last year. redacted
Vote 5 – Government Contingencies during the Election Period
Issue
Several items are tagged to say that they received funding from Treasury Board Vote 5, Government Contingencies. What does this mean?
Key Facts
- The Treasury Board uses Vote 5, Government Contingencies, to help organizations when they do not have enough spending authority to meet immediate requirements.
Response
- Treasury Board’s Government Contingencies vote is used to help organizations when they do not have enough spending authority to meet immediate requirements.
- It can also be used to provide authority for new grants, or increases to existing grants if approved by the Treasury Board.
- Similar to a loan, a federal organization is required to “repay” the amount, once the supply is granted by Parliament.
Background
The Treasury Board uses Vote 5, Government Contingencies, to help organizations when they do not have enough spending authority to meet immediate requirements.
The vote may also be used to authorize new or increased grants, redacted listed in these Supplementary Estimates:
- to Transport for the Zero-Emission Vehicles Program – for $79 million of the $165 million listed, to provide timely payments of the grants (incentives) to purchase these vehicles.
- to Immigration, Refugees and Citizenship for the Interim Housing Assistance Program – for $19 million of the $121 million listed, for the grants paid to provinces and municipalities.
- to Crown-Indigenous Relations and Northern Affairs to renew fiscal transfer arrangements to 25 self-governing Indigenous nations – for $67 million of the $95 million listed, for the grants to implement these agreements.
- to Natural Sciences Engineering Research Council for the Centres of Excellence for Commercialization and Research and the Canada Excellence Research Chairs Program – for $7 million of the $17 million listed, for these granting programs.
- to Parks Canada for an Inuit Impact and Benefit Agreement – for the $6 million listed, for the grants to implement these agreements.
- to the Canadian Institutes of Health Research for the Canada Excellence Research Chairs Program – for $950,000 of the $4 million listed, for this granting program.
- to Public Safety for Canadian Red Cross response to the 2019 spring flood events – for the $3 million listed, to make a grant payment.
- to the Social Sciences and Humanities Research Council for the Canada Excellence Research Chairs – for $250,000 of the $2 million listed, for this granting program.
These allocations were made after full supply for Main Estimates, between June and November.
They are similar to loans, in that they will be “repaid” once Parliament approves supply to these Supplementary Estimates.
Workload Migration and Cloud Architecture Programs
Issue
Why is the Government requesting funds for workload migration and cloud architecture?
Key Facts
- $197 million for the Shared Services Canada Workload Migration and Cloud Architecture Programs.
Response
- IT (information technology) modernization and the adoption of cloud computing will help the Government maintain IT service excellence during a period of increasing demand for digital services and timely access to emerging technologies.
- The funding request helps federal organizations move their aging IT services to modern hosting environments and to responsibly adopt cloud services.
- Support for these investments helps to put Canadians and their needs at the centre of our modernization work and our path to becoming a world class digital government.
Background
These Supplementary Estimates include $197 million for the Shared Services Canada Workload Migration and Cloud Architecture Programs.
The Workload Migration Program focuses on working closely with customer organizations to move applications from legacy data centres to more modern stable hosting environments.
The Cloud Architecture Program helps departments to move their applications to the cloud.
In keeping with the Government's cloud-first policy, Shared Services will work with customer organizations to prioritize and relocate applications and data directly to a cloud-hosted solution, or to a modern data centre.
The operating and capital expenditures included in these Supplementary Estimates will provide information technology services and infrastructure for both programs.
Cloud computing represents a fundamental shift in the delivery of information technology services. As cloud computing enters its second decade, the Government needs to start using it in delivering IT services. Adopting cloud computing will help the Government maintain IT service excellence during a period of increasing demand for digital services and timely access to emerging technologies.
Key Quotes
“The future of government service delivery is digital, and digital has everything to do with people. It's about giving Canadians the services they need, when and where they need them. The changes to these policies will ensure the government continues making strides toward realizing this vision of digital service delivery.” - The Honourable Scott Brison, Former President of the Treasury Board (Source: TBS News Release, March 29, 2018)
Pay - Funding for the Government’s Pay System
Issue
Why is the Government requesting funds for the pay system?
Key Facts
- $39 million for Public Services and Procurement Canada.
Response
- The government takes its responsibility to pay our employees accurately and promptly very seriously.
- Great effort is being made to resolve current pay issues and develop options for a new human resources and pay solution.
- I look forward to working with my colleague at Public Services and Procurement Canada on this critical matter.
Background
These Supplementary Estimates include $39 million for Public Services and Procurement to continue work on the government's pay system and to reduce the number of pay transactions waiting in the queue.
The additional personnel and contracted capacity will help to stabilize the system and improve efficiencies. The department continues to work towards achieving a steady state where public servants are paid accurately and within reasonable service standards.
Pay – TBS Vote 15 Compensation Adjustments
Issue
Why is the Treasury Board Secretariat requesting $470 million for compensation adjustments?
Key Facts
- Funding is for the incremental costs related to 17 recently concluded collective bargaining agreements and changes to the terms and conditions of employment of 2 unrepresented groups.
Response
- The Government of Canada respects the collective bargaining process and negotiates with unions to reach agreements that are fair that employees and to taxpayers.
- A number of collective agreements have been reached and the government is committed to concluding collective agreements for all its employees.
- Canada’s public servants deserve to be paid properly for their important work.
Background
TB Vote 15 supports the role of the Treasury Board as the employer of the federal government.
Departments, agencies and appropriation-dependent Crown corporations will receive allocations from this vote to cover the incremental costs related to 17 recently concluded collective bargaining agreements, and changes to the terms and conditions of employment of 2 unrepresented groups.
The funding included in these Supplementary Estimates is related to agreements concluded between April 1, 2019 and October 18, 2019.
Veterans Affairs
Issue
What spending measures are included in these Supplementary Estimates for Veterans Affairs Canada?
Key Facts
- $857 million to Veterans Affairs ($677 million is for demand-driven programs and services and $101 million is for the Toth class action settlement agreement).
Response
- Canada's veterans have bravely defended our country's values of openness, democracy, human rights and the peace and security we enjoy today.
- We continue to provide income support and stability with funding to eligible veterans experiencing service-related illness or injuries, and their families.
- In addition, funding is provided to fulfill the Government's obligation to settle claims arising from the Toth class action.
Background
These Supplementary Estimates provide $857 million to Veterans Affairs. Two significant initiatives account for most of these funding requirements:
- $677 million is for demand-driven programs and services which provide support to eligible Veterans and their families.
- The department provides several disability benefits, financial benefits and health care and rehabilitation support programs to eligible Canadian Armed Forces members, Veterans and their families.
- The main program cost driver leading to this request is Pain and Suffering Compensation, which is part of the new Pension for Life Program.
- The requested funds result from an increased number of Veterans accessing support.
- $101 million is for the Toth class action settlement agreement.
- This class action was originally filed in 2014. It challenged the reductions made to certain Veterans income support benefits between 2012 and 2017.
- The department expects to make payments to approximately 15,000 individual claimants between June 2019 and December 2020.
Indexation of Disability Pensions
Issue
Why is the Government requesting funds for disability pensions? What was the indexation error that is being corrected?
Key Facts
- $65 million for Veterans Affairs.
- $6 million for the Royal Canadian Mounted Police.
Response
- The government is requesting funds to correct an error in the calculation of disability pensions for Canadian veterans and former RCMP members.
- This proposed funding is for eligible beneficiaries who were significantly underpaid from 2003 to 2010.
- Supporting veterans and members in these circumstances also underlines our commitment to transparency and accountability.
Background
These Supplementary Estimates include $65 million for Veterans Affairs and $6 million for the Royal Canadian Mounted Police to correct an error in the calculation of disability pensions.
The Office of the Veterans Ombudsman found an accounting error while analyzing the change to the disability pension. Because the provincial basic tax credit had not been taken into account, eligible beneficiaries were significantly underpaid from 2003 to 2010.
Disability pensions provide monthly tax-free payments to eligible: war service veterans of the Second World War or the Korean War; civilians who served in close support of the Armed Forces during war time; current and former members of the RCMP; and certain members and veterans of the Canadian Armed Forces.
CAF members and veterans who applied for benefits after April 2006 may be eligible for disability awards under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
Out-of-Court Settlements
Issue
Why are there out-of-court settlements listed under several departments in these Supplementary Estimates?
Key Facts
- $301 million for out‑of‑court settlements among six federal organizations.
Response
- Funding in these Supplementary Estimates is requested to allow the Government of Canada to honour its out-of-court settlement agreements.
- Approved funding will be allocated to six federal organizations to make payments for settlements related to their portfolios.
- Each federal organization making a settlement payment is also responsible for reporting these expenses in the appropriate Public Accounts.
Background
The Attorney General of Canada is responsible for advancing the public interest through the oversight and conduct of litigation involving the federal government. However, the final settlement of these claims falls to the organizations whose portfolios are affected.
These Supplementary Estimates include roughly $301 million for out‑of‑court settlements:
- to Veterans Affairs – $101 million for the Toth class action settlement agreement
- to Crown-Indigenous Relations and Northern Affairs – $73 million for the Indian Residential Schools, Sixties Scoop and other settlement agreements
- to Health – $70 million for various agreements
- to the Royal Canadian Mounted Police – $50 million for the Merlo Davidson class action settlement agreement
- to Statistics Canada – $4 million for the Statistical Survey Operations Settlement
- to Treasury Board Secretariat – $3 million for the White class action settlement agreement
Payments of these claims against the Crown are recorded as operating expenditures of the organizations and reported in the Public Accounts in the fiscal years in which the payments are made.
Indigenous Issues
Issue
How do these Supplementary Estimates advance reconciliation with Indigenous peoples?
Key Facts
- $171 million to 3 organizations to advance the Government's reconciliation strategy.
Response
- We continue to make steady progress by advancing reconciliation with Indigenous Peoples across the country.
- These new investments address fundamental issues of Indigenous title, rights, jurisdictions, in relation to fisheries and national parks.
- We will continue supporting Indigenous Peoples by making historic investments, advancing self-determination and self-governance, and enabling quality-of-life improvements.
Background
These Supplementary Estimates provide $171 million to 3 organizations to advance the Government's reconciliation strategy.
- $132 million to Fisheries and Oceans – to implement an August 2019 agreement with the Elsipogtog [El-zi-BUK-tuk “Big Cove”] and Esgenoôpetitj [Ez-ki-noh-BUH-dihj “Burnt Church”] First Nations in Nova Scotia on a long-term plan to advance reconciliation in the fisheries; and to continue engaging with Indigenous communities and stakeholders on fisheries policies.
- $37 million to Crown-Indigenous Relations and Northern Affairs – mainly to implement a July 2019 agreement with the Heiltsuk [HEL-sic] Nation in British Columbia agreement on title, rights and inherent jurisdiction.
- $2 million to Parks Canada – to implement agreements with the Mi'kmaq, Maliseet and Peskotomuhkati [Passamaquoddy] Nations in Nova Scotia and New Brunswick on harvesting rights and the operation of park co-management boards.
The Government is committed to a renewed relationship with Indigenous peoples, based on the recognition of rights, respect, cooperation and partnership. This means working to support Indigenous capacity building and Indigenous peoples’ vision of self-determination – including in the areas of fisheries, oceans, aquatic habitat and marine waterways.
Indigenous Issues – National Inquiry into Missing and Murdered Indigenous Women and Girls
Issue
Why is the Government requesting funds for the National Inquiry into Murdered and Missing Indigenous Women and Girls?
Key Facts
- $9.9 million for the Privy Council Office
Response
- Reducing the rates of violence against Indigenous women and girls, and Indigenous LGBTQ and two-spirit people is a priority for the Government of Canada.
- In 2016, the government launched the National Inquiry into Missing and Murdered Indigenous Women and Girls to identify concrete actions to address the systemic causes of violence against Indigenous women, girls, LGBTQ and two-spirit people and end this national tragedy.
- We are grateful to the many First Nations, Inuit and Métis families and survivors, as well as knowledge keepers and experts, who participated in the Inquiry and courageously told their stories.
- We will conduct a thorough review and work with Indigenous partners to turn the Inquiry’s Calls for Justice into real, meaningful, Indigenous-led action.
Background
These Supplementary Estimates include $10 million to the Privy Council Office for the National Inquiry into Missing and Murdered Indigenous Women Girls.
The Inquiry concluded its consultation and engagement activities, and delivered its final report in June 2019.
Funds requested in these Supplementary Estimates will be used to cover salary, contract and contribution costs incurred in winding down the Inquiry’s activities.
Some activities were operational. Others involved engaging with communities from coast to coast to present the final report and to hold events to being the processes of commemoration and healing.
French Feature Films
Issue
Why is the Government requesting funds for the French-language feature film program?
Key Facts
- $7.5 million for Telefilm's French-language feature film program.
Response
- Canada is committed to supporting its creative industries and the key role they play in promoting culture, identity and reflecting our many values.
- This new funding will support filmmakers for the production of new French-language feature films.
- We will continue to encourage and support the energy and exuberance of francophone artists and their future filmmaking projects.
Background
These Supplementary Estimates include $7.5 million for Telefilm's French-language feature film program.
Telefilm Canada is a crown corporation whose mandate is to foster and promote the development of the Canadian audiovisual industry.
Telefilm’s provincial counterpart in Quebec, the Société de development des entreprises culturelles, recently increased funding for Quebec films.
Most French-language films also require funding from the federal government to be viable, which places pressure on Telefilm to follow suit.
This funding will support additional French language films that would not otherwise have been funded.
Interim Housing Assistance Program
Issue
Why is the Government requesting funds for the Interim Housing Assistance Program?
Why did this program receive an allocation from Government Contingencies?
Key Facts
- $121 million for Immigration, Refugees and Citizenship Canada.
Response
- Since 2017, Canada has experienced an increase in the total number of asylum claims by irregular migrants at our borders.
- This situation has increased the demand for provincial and municipal governments to provide temporary (interim) housing to eligible asylum claimants.
- This funding builds on previous investments and commitments to support provincial and municipal governments currently managing pressures on their temporary housing markets.
- We will continue improving Canada's asylum system with other levels of government to ensure it remains available to those in need of support and protection.
Background
These Supplementary Estimates include $121 million for Immigration, Refugees and Citizenship Canada for the Interim Housing Assistance Program.
Through the department's Asylum Program, provinces and municipalities receive grants to reimburse costs incurred to provide temporary lodging for asylum claimants while they look for permanent housing arrangements.
The department received an allocation of $18.5 million from TB Vote 5, Government Contingencies, because payments that were due earlier in the fall exceeded grant authority listed in the Main Estimates. The department will repay this amount to TB Vote 5 upon supply for these Supplementary Estimates.
Canada-Québec Accord on Immigration
Issue
Why is the Government seeking funding for the Canada Quebec Accord on Immigration?
Key Facts
- $32 million for Immigration, Refugees and Citizenship Canada for a payment under the Accord.
Response
- Canada has a strong reputation as a fair and welcoming country with a world-class immigration system.
- This funding is to continue support to a long-standing agreement between the Government of Canada and the Government of Quebec to cooperate on helping new immigrants and foreign nationals settle in Quebec.
- Our continued work with provinces is critical to enhancing and strengthening Canada’s immigration system.
Background
The Canada–Quebec Accord on Immigration is a legal agreement concerning immigration issues between the federal government of Canada and the government of Quebec.
Canada compensates annually Québec for reception and integration services offered by the province to immigrants. The compensation consists of a base amount and an incremental amount calculated annually.
The incremental amount is based on the number of non-Francophone immigrants that settle in Quebec and the overall increase in federal government expenditures, excluding debt service payments.
These Supplementary Estimates include $32 million for Immigration, Refugees and Citizenship Canada for a payment under the Accord. Including this amount, Canada will transfer $592 million to Quebec in 2019-20 under this Accord.
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