Reference binder: Supplementary Estimates (A) 2019-20

Justification of funding request

• redacted funds in the amount of $3.8 million for the Housing Research and Data Initiative is related to the authority provided to support the delivery of the Housing Needs Data portion of the National Housing Strategy (NHS) – Research and Data Initiative.
• redacted funding for the First-Time Home Buyer Incentive and Shared Equity Mortgage Providers program in the amount of $2,782,353. This funding was approved to support the establishment of required operational processes and tools for program delivery.
• redacted funds in the amount of $1.7 million for the Human Rights-Based Approach to Housing is related to the authority provided to support the delivery of that program, more specifically the implementation of the Federal Housing Advocate and National Housing Council.
• The request of transfer of funds from Employment and Social Development Canada to CMHC in the amount of $1,009,868.00 to implement the modernized Youth Employment and Skills Strategy (YESS).

Key Messages Housing Research and Data Initiative

• This initiative is funding two new surveys: The Canada Housing Survey (CHS) and the Social and Affordable Housing Survey – Rental Structure (SAHS-RS),The reprofile reflects a delay in the first annual SAHS-RS survey, due in part to the delay in obtaining the necessary agreements with the all of the provinces.
• There was also funding for specific information technology projects scheduled to commence in 2018. The spending profile for these projects were pushed due to corporate priority IT infrastructure projects, on which these projects relied. Specifically, the timeline for the corporate information governance program was extended and in order to prevent duplicate work on data standards, these projects were delayed. The proof of concept for the Credit Data Development and Integration Analytics platform was delayed because contract negotiation took longer than expected, and IT infrastructure was upgraded which caused delays in certain projects which needed the upgrades before progressing. Despite these delays, the Housing Needs Data information technology projects have now commenced.

Key Messages First Time Homebuyer Incentive

• Every Canadian needs a safe and affordable place to call home, but today’s high house prices mean that more Canadians are struggling to find housing. For many young Canadians, home ownership seems increasingly out of reach.
• To help make homeownership more affordable for first-time home buyers, Budget 2019 introduced the First-Time Home Buyer Incentive.
• Buying a property is often the biggest investment Canadians make. The incentive will allow a 5 per cent or 10 per cent shared equity mortgage for a newly constructed home, or a 5 per cent shared equity mortgage for an existing home.
• The Incentive helps reduce monthly mortgage payments for qualified first-time homebuyers without adding to their financial burdens.
• The Incentive will allow eligible first-time home buyers who have the minimum down payment for an insured mortgage to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corporation.

Key Messages Human Rights Based Approach to Housing

• The National Housing Strategy Act was tabled in Parliament in April 2019 as part of Bill C-97 and amendments to that bill, which includes an expansion of duties for the Federal Housing Advocate to including monitoring of the housing policy and National Housing Strategy (NHS).
• The National Housing Council is to hold public hearings and produce a report on their findings and recommendations, which would then be tabled in Parliament. The legislation also confirmed that CMHC would provide administrative support to the Council and the Canadian Human Rights Commission would support the Advocate.
• The reprofile reflects the required funding for the expanded roles of the Federal Housing Advocate and National Housing Council.
• Our Government strongly believes that all Canadians should have access to safe and affordable housing. That is why we introduced Canada’s first ever National Housing Strategy and introduced legislation making sure future governments do the same.
• The National Housing Strategy Act, now passed into law, represents a historic milestone for housing in Canada. The NHS Act recognizes the right to adequate housing as a fundamental human right.
• The National Housing Strategy Act requires the federal government, and future governments, to develop, maintain and report on a National Housing Strategy that prioritizes the housing needs of the most vulnerable and taking into account key principles of a human rights-based approach to housing.

Key Messages Transfer from ESDC for Youth Employment and Skills Strategy

• As part of YESS, CMHC is delivering the Housing Internship Initiative for First Nation and Inuit Youth (HIIFNIY) to assist Indigenous youth to gain the work experience and abilities they need to make a successful transition into the labour market.
• CMHC awaits Indigenous engagement, led by Employment and Social Development Canada, on how the modernized YESS can best serve Indigenous youth before making further modifications or enhancements to the program. CMHC will also be exploring whether HIIFNIY could be expanded to serve Métis, urban/non-affiliated youth. In response to these consultations and to high demand for HIIFNIY that persistently exceeds available funding, it is possible that CMHC will seek expanded authority and additional funding. 
• CMHC awaits Indigenous engagement, led by Employment and Social Development Canada, on how the modernized YESS can best serve Indigenous youth before making further modifications or enhancements to the program. CMHC will also be exploring whether HIIFNIY could be expanded to serve Métis, urban/non-affiliated youth. In response to these consultations and to high demand for HIIFNIY that persistently exceeds available funding, it is possible that CMHC will seek expanded authority and additional funding. 

Issue

What are the key accomplishments in housing since budgets 2016?

Response

• Providing a safe and affordable home for all Canadians is a key objective of our government. That is why between 2015 and 2019 we have invested more than $8 billion to make housing more accessible and affordable across Canada.
• As a result, 41 800 new units have been or are being built, and 229 600 units have been or are being repaired.
• We will continue our work with Canada’s first-ever National Housing Strategy, a ten-year over $55+ billion plan that will give more Canadians a place to call home.
• To date, we have signed agreements with twelve provinces and territories representing $8.2 billion in housing investments.

Background

Issue

How will the National Housing Strategy help Canadians purchase their first home?

Key facts

• 80% of Canadian households’ housing needs are met through the marketplace.
• Typical First-Time Homebuyers are between the ages of 25 and 34.
• First-Time Homebuyers have an average annual household income of $74,000
• According to CMHC’s 2017 Mortgage Consumer Survey, the average down payment for FTHBs was $46,000.

Background

The housing needs of some 80 per cent of Canadian households are being met through the marketplace, supported by the government through CMHC commercial mortgage loan insurance and securitization activities, as well as guarantees of private mortgage insurers.

Typical First-Time Homebuyers are between the ages of 25 and 34, early in their careers, with average annual household incomes of $74,000, and limited wealth accumulation.

Prepared by
Hugo P. Fontaine Parliamentary Affairs
CMHC
613-748-2895

Approved by
Derek R. Antoine Manager
CMHC
613-748-2455

Lead Sector(s)
Client Operations

Date/Docket Number
October 29, 2019
QP190133

Issue

What is the Government doing to help preserve units for low income households living in community housing when operating agreements expire?

Key facts

Response

• Our government is taking concrete actions to protect the most vulnerable Canadians, and ensure that Canada’s federally administered community housing stock remains affordable and viable well into the future.
• As part of the National Housing Strategy, we announced $4.3 billion Canada Community Housing Initiative that is helping to protect and build community-based housing for some 330,000 households across the country.
• We are also investing $500 million over 10 years in the Federal Community Housing Initiative that is being implemented in two phases. The initiative will protect tenants and stabilize the operations of some 55,000 units in federally administered community housing projects.

Background

Stakeholders and community housing providers have been calling on the federal government to establish long-term funding solutions for social housing.

Community housing typically refers to housing that was built under federal legacy programs and that receive government subsidies through long term agreements. Community housing is any housing that is owned and operated by non-profits and co-operative housing organizations. The intent is that any new housing built in the future by these groups will be a new generation of housing, and thereafter be referred to as "community housing."

Community housing has been the backbone of Canada’s response to housing challenges for more than 60 years and provides an affordable place to live for thousands of Canadians.  Federal investments have supported the creation of community housing for low- and modest-income families and individuals.

In support of long-term operational improvements for the federally administered stock, housing providers with expiring agreements that apply for new funding under the Federal Community Housing Initiative need to meet minimum requirements under a new agreement related to the depth and duration of affordability, social inclusion, asset management, and governance, and ensure that projects are charging adequate rents relative to tenant incomes.

The FCHI has 2 components: rental assistance and temporary transitional assistance. Rental assistance is offered to housing providers to ensure low-income households continue to receive rental support to helps reduce or eliminate their housing need.

Some community housing providers may not be immediately able to demonstrate that they can meet minimum requirements. The two-year temporary extension of subsidies under FCHI Phase 1 provided time to housing providers to transition to the new program eligibility criteria. In addition, in the context of FCHI Phase 2, housing providers can work with the NHS Community Housing Transformation Centre for support to become more efficient and resilient in order to build their capacity to meet the minimum requirements and become eligible for funding.

The Government is investing all funding that would have expired back into community housing with the goal of stabilizing and preserving the total number of units currently receiving support.  These programs will specifically support low-income households that cannot afford market rents to ensure that federal funds go to those who need it most while promoting their participation and inclusion in society and the economy.

In Phase 1 of the Federal Community Housing Initiative, which was launched in April 2018, federally administered community housing providers with long-term operating agreements that have ended or are ending between April 1, 2016 and February 28, 2020 will continue to receive the same level of subsidy currently provided under existing agreements until March 31, 2020.

This will give community housing providers time to transition to the new rental assistance program, FCHI Phase 2, which will be implemented April 1, 2020. Phase 2 is not an extension or continuation of other programs or of these prior agreements. It will provide rental assistance funding from April 1, 2020 until March 31, 2028.

Prepared by
Hugo P. Fontaine Parliamentary Affairs
CMHC
613-748-2895

Approved by
Derek R. Antoine Manager
Parliamentary Affairs CMHC
613-748-2455

Lead Sector(s)
Client operations

Date/Docket Number
October 30, 2019
QP190135

Issue

What is the government doing to ensure housing is available for Canadians in need?

Key facts

• $27.2B for these three initiatives:
• $13.2B for new and improved supply under the federally-managed National Housing Co-Investment Fund.($4.52 billion in grants and $8.65 billion in low-interest loans.)
  • As of September 30, 2019, there has been 95 approved applications issued for $1,03 billion in requested loans and $772.9 million in requested contributions for a total commitment of close to 64,700 new and repaired units.
• $13.75B for the Rental Construction Financing initiative (RCFi)
  • The initiative provides loans that will run from 2017 to 2027 for the construction of 42,500 rental units in communities across Canada.
  • Borrowers benefit from loans with terms of 10 years combined with up-front CMHC mortgage loan insurance.
  • As of September 30, 2019, CMHC committed $4.3 billion under the RCFi to support the creation of 14,345 units, of which 9,608 will be affordable.
• $200 million over 5 years for the Affordable Housing Innovation Fund:
  • As of September 30, 2019, CMHC committed over $95.3 million to support the creation of 8,032 units, of which 7,119 will be affordable.
  • Over 1,400 units currently under construction.

Response

• The $13.2 billion National Housing Co-Investment Fund is at the core of the strategy. From shelters to affordable homeownership, the Fund covers a broad range of housing needs.
• Through a combination of contributions and low-cost loans, this Fund will invest in the growth of livable communities and contribute to the resilience of the community housing sector.
• The National Housing Co-Investment Fund is expected to build up to 60,000 new homes and repair up to 240,000 units of existing affordable and community housing.
• The National Housing Co-Investment Fund will be delivered in tandem with $13.75 billion Rental Construction Financing initiative and the $200 million Affordable Housing Innovation Fund.
• Combined, these three initiatives represent an investment of over $27.2 billion that will give more Canadians a place to call home.

Background

Issue

What is the status of initiatives under the National Housing Strategy?

Key facts

Response

• Affordable housing is a cornerstone of inclusive communities – this is why we are creating a new generation of housing in Canada giving more Canadians a place to call home.
• Our government launched Canada’s first ever National Housing Strategy in 2017, signaling a meaningful re-engagement by the federal government in housing, and will give more Canadians a place to call home.
• The Canada's National Housing Strategy has become a 10-year, $55+ billion plan that will give more Canadians a place to call home.
• The Strategy will deliver concrete results, helping to create over 125,000 new housing units and repair another 300,000.  It will remove as many as 530,000 households from housing need, and reduce chronic and episodic homelessness by 50 per cent.
• The Strategy will help those most in need, including women and children fleeing situations of domestic violence; seniors; Indigenous peoples; persons with disabilities;, those dealing with mental health and addiction issues; veterans; and young adults.

Background

Under embargo until tabling of the 2019-2020 Supplementary Estimates (A)

Question: How will the $5.0M requested by the Canada Revenue Agency in the Supplementary Estimates (A) for the Advisory Committee on the Charitable Sector and the Canada Workers Benefit be spent?

Source: Tabling in Parliament of the 2019-2020 Supplementary Estimates (A) expected for the week of December 2, 2019.

• The Canada Revenue Agency is a client-focused agency which exists to serve Canadians.
• The $5.0M will be used to support initiatives that will be administered by the Agency starting in 2019.
• Some of these initiatives include: 
  • establishing and supporting a permanent advisory committee on the charitable sector in order to modernize the legislative framework governing that sector; and
  • implementing legislative amendments to the Canada Workers Benefit, with an aim of making improvements that would facilitate its distribution to more Canadians.

Background:

Through the 2019-2020 Supplementary Estimates (A), the Canada Revenue Agency is seeking $5.0M in funding to support the Advisory Committee on the Charitable Sector and the Canada Workers Benefit.

Permanent Advisory Committee on the Charitable Sector:

• Establishing and supporting a permanent Advisory Committee on the Charitable Sector in response to the Panel Recommendation 4 from the Report of the Consultation Panel on the Political Activities of Charities to modernize the legislative framework governing the charitable sector.
• The Advisory Committee on the Charitable Sector will be a consultative forum for the Government to engage in meaningful ongoing dialogue with charities, to advance emerging issues relating to charities, and to ensure the regulatory environment supports the important work that charities do.

Canada Workers Benefit:

• Implement legislative amendments to the former Working Income Tax Benefit, now the Canada Workers Benefit (CWB), that include making improvements and redesigning Schedule 6 from the T1 income tax return, and updating the corresponding forms and publications.
• It has been estimated that 300,000 individuals who are seemingly eligible for the CWB do not make a claim. This proposal seeks funding to make improvements to the CWB to calculate the benefit even if the taxpayer does not complete Schedule 6 “Canada Workers Benefit”, of the T1 Income Tax and Benefit Return. The targeted outcome is to redesign the CWB to facilitate the distribution to more Canadians.

Prepared by:
Rachelle Reilly
Director General,
Resource Management Directorate
Finance and Administration Branch

In consultation with:
Michel El-Gharib
Acting Director,
Resource Planning and Reporting Division,
Finance and Administration Branch

Regional approval:
Not available

Approved by:
Janique Caron
Chief Financial Officer and
Assistant Commissioner,
Finance and Administration Branch

Under embargo until tabling of the 2019-2020 Supplementary Estimates (A)

How will be spent the $16 M requested by the Canada Revenue Agency in the Supplementary Estimates (A) for the federal fuel charge and the climate action incentive payment for Alberta?

Tabling in Parliament of the 2019-2020 Supplementary Estimates (A) expected for the week of December 2, 2019.

• We have a credible and affordable plan with over 50 measures to cut pollution, support clean growth and make life more affordable for Canadians.
• We put a price on pollution because it is a practical and affordable way to cut emissions and create good jobs, while leaving a majority of families better off.
• The CRA is responsible for the administration of the fuel charge in jurisdictions that do not meet the federal carbon pricing benchmark. This now includes the province of Alberta.
• The $16 million requested will allow the CRA to expand its activities on the implementation and administration of the carbon fuel charge to the province of Alberta.
• These activities include processing returns, carrying out compliance and enforcement actions, and responding to technical questions.
• Of the $16 million, $5 million is related to the delivery of the Climate Action Incentive payment, which will return the bulk of direct proceeds from the fuel charge to individuals in Alberta.

Background:

Through the 2019-2020 Supplementary Estimates (A), the Canada Revenue Agency is seeking $16.8 million in funding to administer the federal fuel charge and climate action incentive payment for Alberta.

In Budget 2017, the Government declared that it would put in place the federal carbon pricing system announced in the Pan-Canadian Framework on Clean Growth and Climate Change. The framework allows provinces and territories flexibility to introduce their own provincial / territorial carbon pricing. 

Environment and Climate Change Canada (ECCC) will administer the output-based pricing system. Industrial facilities that are subject to the output-based pricing system will have to register with ECCC and submit compliance reports.

The $16.8 million being sought by the CRA in the Supplementary Estimates (A) is in addition to funding already provided in the 2019-2020 Main Estimates to allow the CRA to accommodate the new federal carbon levy and administer the program for jurisdictions that do not meet the federal carbon pricing benchmark.

The initial funding request was for the implementation and administration of a fuel charge in all jurisdictions except the provinces of British Columbia, Alberta, Ontario and Quebec.

Since then, the province of Ontario and now the province of Alberta, have been added to the list of jurisdictions that do not have their own carbon pricing mechanisms that meets the federal benchmark.

The additional funding being requested through these Supplementary Estimates will allow the Agency to:

• Expand its activities on the implementation and administration of the federal fuel charge in the province of Alberta; and
• Return the bulk of direct proceeds, in the form of Climate Action Incentive (CAI) payments, directly to individuals in Alberta. This includes generating awareness of the CAI, through an advertising campaign, to ensure target audiences file their taxes to claim the payment.

Prepared by:
Rachelle Reilly
Director General,
Resource Management Directorate
Finance and Administration Branch

In consultation with:
Michel El-Gharib
Acting Director,
Resource Planning and Reporting Division,
Finance and Administration Branch

Regional approval:
Not available

Approved by:
Chief Financial Officer and Assistant Commissioner,
Finance and Administration Branch

Response Lines Only

Question: What is the Canada Revenue Agency doing to help Canadians living with disabilities?

• The Canada Revenue Agency (Agency) understands that living with a disability can have significant impacts on individuals and their families.
• The Agency is committed to administering tax measures for persons with disabilities in a fair, transparent, and accessible way.
• The disability tax credit (DTC) is a non-refundable tax credit that provides tax relief to persons with disabilities or their supporting family members.
• In November 2017, the Disability Advisory Committee (DAC) was re‑instated. On May 24, 2019, it released its first annual report entitled “Enabling Access to Disability Tax Measures”, which included 42 recommendations.
• More than half of the recommendations are administrative in nature, the majority of which will be addressed by Spring 2020.
• The Agency is modernizing the DTC application process, improving the client experience, and simplifying the determination of eligibility.
• The Agency completed about 240,000 determinations during the 2018 calendar year, with an approval rate of over 85%.
• Approximately 844,000 Canadians utilized the disability tax credit during the calendar year 2018, providing more than $1.38 billion in tax relief

Responses (per minister’s office)

Question: Is the Government of Canada willing to work constructively with the province of Quebec to allow its residents to file a single tax return?

• The Canada Revenue Agency and Revenu Québec have a long history of close collaboration. This relationship continues to grow, particularly through exchanging information and sharing best practices.
• The federal government had already committed to discussions with Quebec to find ways of making tax filing easier for taxpayers.
• The Government has previously stated it is not prepared to support a single tax return administered by Quebec. However, the Government is open to working with Quebec to make tax filing easier for taxpayers.

Remarks

Question: When will the Government disclose more information about the implementation of the measures to support Canadian journalism?

• I understand that work is underway at the Canada Revenue Agency on the process that will allow an organization to be designated as a qualitied Canadian journalism organization.
• In Budget 2019, the Government announced new tax measures to support a strong and independent media, which it recognizes as integral to a well-functioning democracy.
• The Journalism and Written Media Independent Panel of Experts was formed to provide recommendations in order to contribute to the effective and equitable implementation of the tax measures to support Canadian news media.
• The Government welcomed the Panel’s report and is in the process of considering the recommendations.
• The Canada Revenue Agency is in the process of operationalizing the program and will make additional information public in the near future.

Background:

Budget 2019 introduced three income tax measures to support Canadian journalism:

• a 25% refundable tax credit of labour costs, on eligible salaries or wages payable to an eligible newsroom employee for periods on or after January 1, 2019;
• a non-refundable personal income tax credit for digital news subscription costs charged by a qualified Canadian journalism organization (QCJO), which applies to qualifying amounts paid after 2019 and before 2025; and
• registration as a new type of qualified donee (registered journalism organization (RJO), which applies as of January 1, 2020.

Designation as a QCJO is a necessary condition for each of the tax measures, and the designation program is administered by the Canada Revenue Agency (CRA).

Budget 2019 also announced that an Independent Panel (Panel) would be formed to recommend criteria that will help with the implementation of the program and determinations of QCJO designation. The Panel submitted its report to the Government in July 2019.

The Government is in the process of considering the Panel’s recommendations.

Response Lines Only

Question: Can the Minister tell us more about Canada Revenue Agency’s efforts to combat tax evasion and avoidance?

• Tax evasion and aggressive tax avoidance are complex matters of global concern.
• The Canada Revenue Agency (Agency) is leveraging better data and new approaches for better results.
• The Agency is making progress in its efforts to combat tax evasion and avoidance in the following ways:
  • Country-by-country reporting
    • Country-by country reporting by multinational enterprises and individuals are now received automatically every year.
  • High Net Worth Taxpayers
    • The CRA’s audit function devotes significant attention to multinational enterprises and high net worth individuals; more than a third of its audit resources are responsible for scrutinizing high income earners.
    • The CRA has identified $4.5B more non-compliance in fiscal 2018‑2019 than in 2013-2014, with more than half resulting from large business and aggressive tax planning audits.
  • Criminal Investigations
    • One third of the CRA’s current inventory of criminal investigations have an offshore element. As these over 50 cases mature, the Agency expects that the convictions will increasingly reflect this focused approach.
  • International cooperation
    • International cooperation is key to these efforts, and the CRA plays key leadership roles with the OECD’s Forum on Tax Administration and JITSIC.

Issue

Why does Employment and Social Development (ESDC) require additional authorities in the 2019–20 Supplementary Estimates (A)? 

• Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year, including items that were unforeseen at the time the Main Estimates were prepared.
• ESDC is requesting adjustments for:
  • A. Voted appropriations
    1. Funding for retroactive salaries related to the resolution of a grievance on the Program Support Delivery Clerk Job Description – $28.4 million;
    2. Funding for Investing in Work-Integrated Learning for post-secondary students across Canada (SWILP) – $16.1 million;
    3. Funding to modernize federal labour standards under the Canada Labour Code – $12.6 million;
    4. Funding for Canada’s New International Education Strategy  –  $11.9 million
    5. Funding for renewing Canada approach to Cyber Security for the Student Work-Integrated Learning Program –  $2.7 million; and
    6. Funding for Canada's Social Innovation and Social Finance Strategy - Social Finance Fund Stream – $2.1 million.
  • B. Reprofiles
    1. Funding for Workforce Development Agreements – $81.4 million;
    2. Funding for Indigenous Early Learning and Child Care Transformation Initiative – Reprofile – $8.1 million;
    3. Funding for Supporting a Culture of Youth Service: Moving Forward with a Canada Service Corps – Reprofile – $6.5 million;
    4. Funding for investing in Early Learning and Childcare Innovation – Reprofile – $3.4 million;
    5. Funding for training and capacity building for early childhood educators – Reprofile - $1.5 million;
    6. Funding for Women in Construction Fund – Reprofile – $0.6 million; and
    7. Funding for Service Canada Call Centres (CPP SIS) – Reprofile – $0.4 million.
  • C. Transfers
    1. Transfer from the Department of Employment and Social Development to various organizations for the Youth Employment and Skills Strategy – $8.0 million;
  • D. Statutory authorities
    1. Adjustment to Contributions to employee benefit plans (EBP) – $9.9 million

Background

A. voted appropriations

1. Why is Employment and Social Development Canada requesting $28.4 million for retroactive compensation?

   Budget 2019 committed funds for the Results of Reclassification in Pensions and Integrity Operations, to enable the Department to meet obligations from a longstanding grievance concerning the Program and Service Delivery Clerk job description, which resulted in a reclassification.

   The scale and scope of this exercise is complex: over 1,500 employees will be implicated, from 2006 to the present. Specifically, this funding will enable the establishment of a dedicated project team to undertake employment history reviews of those affected by the reclassification, oversee the implementation of retroactive payments to reclassified employees for work performed since 2006, and manage the adjustment of salaries going forward.

   ESDC is requesting authority to include $28,386,582 in Vote 1 (Operating expenditures, excluding EBP costs of $7,598,534) for retroactive compensation as part of the 2019–20 Supplementary Estimates (A).

2. Why is Employment and Social Development Canada requesting $16.1 million for Investing in Work-Integrated Learning for post-secondary students across Canada (SWILP)?

    Budget 2016 announced a one-time investment of $73 million over four years to better prepare post-secondary students for the world of work through support for new work-integrated learning (WIL) opportunities, with a focus on high-demand fields such as STEM and business. The Student Work-Integrated Learning Program (SWILP) was launched in April 2017. It was developed to bridge the gap between formal post-secondary learning and skill requirements of Canadian employers. Priority sectors with highly technical skills, critical labour shortages or skills gaps were targeted for the first phase of SWILP implementation.

   Budget 2018 allocated an additional $8.3 million to the Student Work Placement (SWP) Program (renamed from SWILP to align with the Program’s public messaging) from Canada’s new National Cyber Security Strategy funding to support the creation of 1,000 new WIL opportunities (refer to item 5).

   Budget 2019 builds on the momentum of the SWP Program by committing $631.2 million over five years to expand the Program to support the creation of up to 85,000 new WIL opportunities. The commitment extends to SWP Program to include post-secondary students from all disciplines. In addition, recognizing that WIL opportunities extend beyond traditional work placements, Budget 2019 dedicated funding of $150 million over 4 years starting in 2020–21 to engage with innovative businesses to support the creation of an additional 55,000 low-cost WIL opportunities which would be shorter in duration and more flexible to match the varying need of students and employers.

   ESDC is requesting authority to include $718,634 in Vote 1 (Operating expenditures, excluding EBP costs of $117,533) and $15,397,874 in Vote 5 (Contributions) to investing in Work-Integrated Learning for post-secondary students across Canada as part of the 2019–20 Supplementary Estimates (A).

3. Why is Employment and Social Development Canada requesting $12.6 million to modernize federal labour standards under the Canada Labour Code?

   ESDC has a mandate under the Canada Labour Code to administer industrial relations, occupational health and safety, and labour standards in federally regulated workplaces. A significant number of amendments to the Canada Labour Code and its administration have taken place since 2017. As a result, $50.7 million has been approved over four years, starting in 2019–20 and $12.2 million per year ongoing, to support regulatory and program development needed to modernize federal labour standards under the Canada Labour Code, to improve labour standards complaints processing times, to create a strategic enforcement regime, and to gather better information about employees in the federal jurisdiction.

   ESDC is requesting authority to include $12,590,682 in Vote 1 (Operating expenditures, excluding EBP costs of $1,659,368) to modernize federal labour standards under the Canada Labour Code as part of the 2019–20 Supplementary Estimates (A).

4. Why is Employment and Social Development Canada requesting $11.9 million for the International Education Strategy (horizontal item)?

    

   The 2018 Fall Economic Statement announced that ESDC and Global Affairs Canada will work together to develop new international education strategy. The Government proposed in Budget 2019 to invest $149.1 million over five years, starting in 2019–20, and $8 million per year ongoing to support the promotion of Canadian education and work/study opportunities abroad for Canadian youth. $95.0 million over five years was approved for ESDC for a new inclusive outbound student mobility pilot to support Canadian youth to gain skills essential to their careers and to Canada’s future. 

   The pilot will be delivered under a new umbrella program called “Supports for Student Learning Program”. It will help college and university undergraduate students gain portable skills and intercultural competencies to equip them to participate in the global labour market by supporting study and work abroad opportunities. It is estimated that approximately 11,000 Canadian post-secondary students will benefit from this initiative over the five-year pilot.

   The pilot would be delivered via targeted contribution agreements with Universities Canada and Colleges (UnivCan) and Institutes Canada (CiCan), who would in turn fund individual post-secondary institutions to deliver outbound mobility programs at their respective institutions. UnivCan and CiCan are uniquely positioned to deliver international experience programming given their extensive experience and expertise in the post-secondary education sector and their existing infrastructures and networks among colleges and universities across Canada. Students would apply for funding through their post-secondary institution and student eligibility will be determined based on their institution’s own selection criteria. Post-secondary institutions will be responsible for ensuring that students will receive credit and be paid for their work abroad. Students will receive up to $5,000 (up to $10,000 for underrepresented students) depending on their demonstrated needs and destination.

   Operating funds approved will be used to manage agreements, support policy analysis and development, monitor implementation, support evaluation and report on progress of the pilot.

   ESDC is requesting authority to include $1,927,153 in Vote 1 (Operating expenditures, excluding EBP costs of $251,075) and $10,000,000 in Vote 5 (Contributions) for the International Education Strategy as part of the 2019–20 Supplementary Estimates (A).

5. Why is Employment and Social Development Canada requesting $2.7 million for renewing Canada’s approach to cyber security for the Student Work-Integrated Learning Program?

   Budget 2018 proposed investing $507.7 million over five years and $108.8 million ongoing, to fund Canada’s new National Cyber Security Strategy to ensure that Canada has a strong federal cyber governance system to protect Canadians, their sensitive personal information and Canada’s critical infrastructure. Of this funding, $8.3 million over three years (from 2018–19 to 2020–21) was approved for ESDC for the Student Work Placement Program (formerly the Student-Work Integrated Learning Program) to support the creation of 1,000 new Work Integrated Learning opportunities (see item 2 for additional details on the Student Work Placement Program.

   ESDC is requesting authority to include $284,978 in Vote 1 (Operating expenditures, excluding EBP costs of $46,052) and $2,367,150 in Vote 5 (Contributions) for renewing Canada’s approach to cyber security for the Student Work Placement Program as part of the 2019–20 Supplementary Estimates (A).

6. Why is Employment and Social Development Canada requesting $2.1 million for the launching of Canadaʼs Social Innovation and Social Finance Strategy?

   The 2018 Fall Economic Statement committed to make available up to $755 million over the next ten years to establish a Social Finance Fund. The objective of the Fund is to help charitable, non-profit and other social purpose organizations access new financing, and to help connect them with private investors looking to invest in projects that will drive positive social change. In addition, the Government proposed to invest $50 million over two years in a related Investment and Readiness stream for social purpose organizations to improve their ability to successfully participate in the social finance market.

   Further details on the Social Finance Fund and the related Investment and Readiness stream were announced in Budget 2019. The Budget confirmed that the two-year, $50 million investment in the Investment and Readiness stream will be used to support more robust business planning, provide technical assistance and enable social purpose organizations to develop impact measurement tools to monitor progress achieved. This will be accomplished by providing the bulk of the Investment and Readiness grant and contribution funding to a small number of highly networked, high-capacity organizations. These funding recipients will undertake projects aimed at enabling social purpose organizations to become more investment ready.

   Resources were approved to begin launching the Social Innovation and Social Finance (SI/SF) Strategy, more specifically, the Investment Readiness Program as one of the foundational element of the SI/SF Strategy and to undertake activities in 2019–20 to support the establishment of other foundational elements of the Strategy, which include:

   • Design a Social Finance Fund to inject capital into Canada’s social market;
   • Establish a SI/SF Advisory Committee reporting to the Ministers of ESDC that would provide expertise, facilitate stakeholders engagement and consultation, and would report back on the Strategy’s implementation; and
   • Establish an Office for SI/SF within ESDC to coordinate the Strategy’s implementation and provide secretariat support to the Advisory Committee.

   ESDC is requesting authority to include $2,061,924 in Vote 1 (Operating expenditures, excluding EBP costs of $182,791) for the launching of Canadaʼs Social Innovation and Social Finance Strategy as part of the 2019–20 Supplementary Estimates (A).

B. Reprofiles

1. Why is Employment and Social Development Canada requesting $81.4 million for Workforce Development Agreements?

   Budget 2016 committed ESDC to consulting with provinces, territories and stakeholders to identify ways to improve these agreements and to help guide future investments to strengthen labour market programming. Drawing on these consultations, Budget 2017 committed to reforming the Labour Market Transfer Agreements. This included the creation of the new Workforce Development Agreements, consolidating the Canada Job Fund Agreements ($500 million annually), Labour Market Agreements for Persons with Disabilities ($222 million annually – expired March 2018) and the former Targeted Initiative for Older Workers ($24 million annually – expired March 2017).

   In addition to consolidating base funding already in place through the Canada Job Fund Agreements and the Labour Market Agreements for Persons with Disabilities, Budget 2017 commited to investing an additional $900 million over six years (2017–18 to 2022–23) in the Workforce Development Agreements. This includes funding to replace the previous allocation under the former Targeted Initiative for Older Workers. New Budget 2017 funding under the Workforce Development Agreements for 2018–19 specifically totaled $75 million, not including the funding already reprofiled from 2017–18 into 2018–19.

   Of the new funding announced in Budget 2017, ESDC is requesting a reprofile of $81,445,289 from fiscal year 2018–19 to 2019–20. This represents the sum of two amounts:  1) the difference between Quebec’s 2017–18 Workforce Development Agreement final maximum contribution and amounts paid to the province in 2017–18 under Quebec’s Canada Job Fund Agreement and their Labour Market Agreement for Persons with Disabilities and 2) the difference between the Quebec’s 2018–19 Workforce Development Agreement final maximum contribution and the amount paid to the province in 2018–19 under Quebec’s Canada Job Fund Agreement.

   Circumstances unique to Quebec prevented it from signing the new Workforce Development Agreements before March 31, 2019, including delays due to the provincial elections held in Quebec during the fall 2018. All other PTs have signed their new Agreement, allowing these jurisdictions to access funds without the need for a reprofile request.

   ESDC is requesting authority to include $81,445,289 Vote 5 (Other Transfer) for Workforce Development Agreements as part of the 2019–20 Supplementary Estimates (A).

2. Why is Employment and Social Development Canada requesting $8.1 million for Indigenous Early Learning and Child Care Transformation Initiative?

   The Indigenous Early Learning and Child Care (ELCC) Transformation Initiative aims to improve access and quality of ELCC services and supports for Indigenous children and families. High quality, culturally appropriate, flexible and affordable ELCC will ensure Indigenous children have the best possible start in life. This Initiative also upholds the Government’s commitment to reconciliation with Indigenous peoples. The Government of Canada has committed up to $1.705 billion over 10 years to strengthen ELCC programs and services for Indigenous children and families starting in 2018–19.

   The time required for engagement and co-development of an Indigenous ELCC Framework resulting in funds in 2018-19 not being fully spent. Funds not spent in 2018–19 are necessary at early stages of the initiative to support needed governance and capacity building; to establish and maintain the required relationships, and to uphold the principles laid out in the IELCC Framework between the Government of Canada and Inuit, First Nations and Métis Nation.

   Even with abbreviated timelines, Inuit, First Nations, and Métis (at national and regional levels) mobilized quickly to set-up governance structures, make allocation decisions, and identify plans and priorities to facilitate flow of funding however, it was not possible to bring all tables across the line in time, which has resulted in some slippage and the need for this reprofile. 

   Given this circumstance, it was requested that $20.4 million lapsed in 2018–19 be reprofiled to future years: $8.1 million into 2019–20 and $12.3 million into fiscal year 2020–21.

   ESDC is requesting authority to include $8,144,261 Vote 5 (Contributions) for Indigenous Early Learning and Child Care Transformation Initiative as part of the 2019–20 Supplementary Estimates (A).

3. Why is Employment and Social Development Canada requesting $6.5 million for the Canada Service Corps?

   Funded through Budget 2016, the Canada Service Corps (CSC - previously 'Youth Service Initiative'), is a national youth service program that provides grants and contribution funding to third parties (youth service delivery organizations) to create service placements for young Canadians (aged 15 to 30) across Canada. By empowering youth to be involved in service placements, the CSC enhances the culture of service in Canada, while contributing to local action on federal priorities to improve the social, economic and environmental well being of communities. Service placements are offered by both national and local/regional level organizations.

   Program implementation began with a design phase, launched in January 2018 until March 31, 2019, during which innovative ways to engage youth in community service were tested, and young people were directly engaged in co-creating the CSC to inform future program directions. Contribution agreements end in March 2020 to ensure service continuity between the design phase and future program phases.

   Employment and Social Development Canada (ESDC) is seeking to re-profile a portion of lapsing grants and contributions (Gs&Cs) funding from FY 2018-19 to FY 2019-20 that had been earmarked for local/regional projects to ensure that planned work to test the effectiveness of engaging youth via smaller-scale local/regional projects can be carried out.

   ESDC is requesting authority to include $6,500,000 Vote 5 (Contributions) for the Canada Service Corps as part of the 2019–20 Supplementary Estimates (A).

4. Why is Employment and Social Development Canada requesting $3.4 million for Early Learning and Childcare to support Innovation?

   Budgets 2016 and 2017 announced an investment of $7.5 billion over 11 years in ELCC of which $100 million over 10 years is dedicated to ELCC innovation.

   A Call for Concepts on ELCC innovation, under the Social Development Partnerships Program - Children and Families component, launched in June and closed in July 2018. Of the 305 concepts received, 177 met the mandatory eligibility requirements and were assessed and ranked. Due to the delay in launching the Call and a prolonged period of assessment resulting from the higher than anticipated number of applications and resulting delays in project approvals, projects from the Call for Concepts are anticipated to begin in July 2019 (2019–20 fiscal year).

   Reprofiling these funds will allow the Department to support a broader range of projects. This would ensure projects would have a meaningful duration and impact and could maximize innovative approaches.

   ESDC is requesting authority to include $3,406,114 Vote 5 (Contributions) for investing in Early Learning and Childcare Innovation as part of the 2019–20 Supplementary Estimates (A).

5. Why is Employment and Social Development Canada requesting $1.5 million for training and capacity building for early childhood educators?

   Budget 2018 announced $20 million in new funding for ESDC to support early childhood development initiatives in Francophone minority communities as part of the Action Plan for Official Languages. $13.15 million of this was allocated to training and capacity building for early childhood educators over five years (2018-2023), with $2.51 million each year in grants and contribution funding.

   The Department had already initiated discussions with stakeholders, but was unable to put in place an agreement before the end of the fiscal year 2018-2019. Through these discussions, it was determined that a pan-Canadian scan of training and education for early childhood educators in Francophone minority communities (available training, needs for educators in the community) was needed to help inform the distribution of remaining funds over the course of the Action Plan (2018-2023).

   In anticipation of the results of the scan, ESDC is working with stakeholder organizations (the Association des Collèges et Universités de la Francophonie Canadienne (ACUFC) and their partner, Commission Nationale des Parents Francophones (CNPF), collaborating with the Réseau de Développement Économique et d'Employabilité (RDÉE) and Société Santé en français (SSF)), to enter into a multi-year agreement whereby these organizations would act as an intermediary to fund projects related to the needs identified.

   ESDC is requesting authority to include $1,510,000 Vote 5 (Contributions) for training and capacity building for early childhood educators as part of the 2019–20 Supplementary Estimates (A).

6. Why is Employment and Social Development Canada requesting $0.6 million for Women in Construction Fund?

   Budget 2018 announced an investment of $10 million over three years for the Women in Construction Fund, which amounts to $9 million in contributions ($2.7 million in 2018–19, and $3.2 million for each of 2019–20 and 2020–21). The Fund supports projects that expend and replicate successful models to encourage more women to participate in apprenticeship and the skilled trades, and help them to train and skilled trades and succeed in construction jobs. 

   As a result of internal approval delays and the complexity of the negotiations, contribution agreements with the four organizations solicited could not be finalized and signed until March to May 2019. redacted

   ESDC is requesting authority to include $574,994 Vote 5 (Contributions) for Women in Construction Fund as part of the 2019–20 Supplementary Estimates (A).

7. Why is Employment and Social Development Canada requesting $0.4 million for Service Canada call centres?

   Being able to call and talk to their government remains the primary preferred interaction for Canadians and employers, who expect convenient, easy-to-access services, presently limited by outdated call centre technology. ESDC received approval through Budget 2019 to seek funding of $16.6 million over two years starting in 2019–20 to facilitate the replacement of end-of-life and end-of-support call centre technology for faster, quality services by phone as per the Investing in Service Canada measure.

   ESDC is requesting authority to include $357,295 in Vote 1 (Operating expenditures) for Service Canada call centres as part of the 2019–20 Supplementary Estimates (A).

C. Transfers

1. Why is Employment and Social Development Canada requesting a $8.0 million transfer to various organizations for the Youth Employment and Skills Strategy?

   In Budget 2018, the Government provided an additional $448.5 million over five years, starting in 2018–19, to the Youth Employment Strategy. Of this amount, $334.8 million over three years was dedicated to implement a modernized Youth Employment Strategy (YES).

   The modernized YESS supports youth in gaining access to programs that allow them to acquire the skills, learning experiences and opportunities they need to find and maintain employment or return to school. It aims to connect with youth (15-30) and the youth serving community to help young Canadians access training and jobs under three program streams: the Canada Summer Jobs, the Youth Employment and Skills Strategy Program (which replaces Skills Link, Career Focus and Summer Work Experience) and the Goal Getters program (to help youth younger than 15 years old and up to 30 years old facing barriers to complete high school and transition to post-secondary education and/or employment).

   The transfer of YESS funding from ESDC to partner departments is for one year only, and is to maintain previous overall funding in those other departments, lessening the impact of sun-setting funds while the new Youth Employment and Skills Strategy is being implemented.

   ESDC is requesting authority to include $3,213,965 in Vote 1 (Operating expenditures) and $4,771,368 in Vote 5 (Contributions) Transfer to OGD to implement the modernized Youth Employment and Skills Strategy as part of the 2019–20 Supplementary Estimates (A).  This represents the funding transfer for three of the partner departments.  The transfer of funds for the remaining partner departments will be included in Supplementary Estimates (B).

D. Statutory authorities

1. Why is Employment and Social Development Canada requesting an adjustment of $9.9 million to Contributions to employee benefit plans (EBP)?

   An adjustment of $9,855,353 to EBP costs related to six items requested in these Supplementary Estimates is being included in the 2019–20 Supplementary Estimates (A).
   The six items are:

   • Funding for retroactive salaries and implementation costs to enable the Department to meet obligations related to the resolution of a grievance on the Program Support Delivery Clerk Job Description ($7,598,534);
   • Funding for Modernization of Federal Labour Standards, Innovative Compliance, Improved Wage Earner Protection Program and Boosting the Capacity of the Federal Mediation and Conciliation Service ($1,659); 
   • Funding for Canada’s New International Education Strategy ($251,075);
   • Funding for Canada's Social Innovation and Social Finance Strategy - Social Finance Fund Stream ($182,791);
   • Funding for Investing in Work-Integrated Learning for post-secondary students across Canada (SWILP) ($117,533); and
   • Funding for renewing Canada approach to Cyber Security ($46,052).

Prepared by
Jennifer Moorehead
Senior Director, Planning and Expenditure Management
Chief Financial Officer Branch
(819) 654-6402

Key Contact
Jason Won
Deputy Chief Financial Officer
(819) 654-6583

Approved by
Mark Perlman
Chief Financial Officer
(819) 654-6634

Date
December 4, 2019

A. Voted appropriations

1. Funding for retroactive compensation – redacted  – $28.4 million

   Budget 2019 commited funds for the Results of Reclassification in Pensions and Integrity Operations, to enable the Department to meet obligations from a longstanding grievance concerning the Program and Service Delivery Clerk job description, which resulted in a reclassification.

   The scale and scope of this exercise is complex: over 1,500 employees will be implicated, from 2006 to the present. Specifically, this funding will enable the establishment of a dedicated project team to undertake employment history reviews of those affected by the reclassification, oversee the implementation of retroactive payments to reclassified employees for work performed since 2006, and manage the adjustment of salaries going forward.

   ESDC is requesting authority to include $28,386,582 in Vote 1 (Operating expenditures, excluding EBP costs of $7,598,534) for retroactive compensation as part of the 2019–20 Supplementary Estimates (A).

2. Funding to investing in Work-Integrated Learning for post-secondary students across Canada – redacted – $16.1 million

   Budget 2016 announced a one-time investment of $73 million over four years to better prepare post-secondary students for the world of work through support for new work-integrated learning (WIL) opportunities, with a focus on high-demand fields such as STEM and business. The Student Work-Integrated Learning Program (SWILP) was launched in April 2017. It was developed to bridge the gap between formal post-secondary learning and skill requirements of Canadian employers. Priority sectors with highly technical skills, critical labour shortages or skills gaps were targeted for the first phase of SWILP implementation.

   Budget 2018 allocated an additional $8.3 million to the Student Work Placement (SWP) Program (renamed from SWILP to align with the Program’s public messaging) from Canada’s new National Cyber Security Strategy funding to support the creation of 1,000 new WIL opportunities (refer to item 5).

   Budget 2019 builds on the momentum of the SWP Program by committing $631.2 million over five years to expand the Program to support the creation of up to 85,000 new WIL opportunities. The commitment extends to SWP Program to include post-secondary students from all disciplines. In addition, recognizing that WIL opportunities extend beyond traditional work placements, Budget 2019 dedicated funding of $150 million over 4 years starting in 2020–21 to engage with innovative businesses to support the creation of an additional 55,000 low-cost WIL opportunities which would be shorter in duration and more flexible to match the varying need of students and employers.

   ESDC is requesting authority to include $718,634 in Vote 1 (Operating expenditures, excluding EBP costs of $117,533) and $15,397,874 in Vote 5 (Contributions) to investing in Work-Integrated Learning for post-secondary students across Canada as part of the 2019–20 Supplementary Estimates (A).

3. Funding to modernize federal labour standards under the Canada Labour Code – redacted  –  $12.6 million

   ESDC has a mandate under the Canada Labour Code to administer industrial relations, occupational health and safety, and labour standards in federally regulated workplaces. A significant number of amendments to the Canada Labour Code and its administration have taken place since 2017. As a result, $50.7 million has been approved over four years, starting in 2019–20 and $12.2 million per year ongoing, to support regulatory and program development needed to modernize federal labour standards under the Canada Labour Code, to improve labour standards complaints processing times, to create a strategic enforcement regime, and to gather better information about employees in the federal jurisdiction.

   ESDC is requesting authority to include $12,590,682 in Vote 1 (Operating expenditures, excluding EBP costs of $1,659,368) to modernize federal labour standards under the Canada Labour Code as part of the 2019–20 Supplementary Estimates (A).

4. Funding for the International Education Strategy – redacted – $11.9 million

   The 2018 Fall Economic Statement announced that ESDC and Global Affairs Canada will work together to develop new international education strategy. The Government proposed in Budget 2019 to invest $149.1 million over five years, starting in 2019–20, and $8 million per year ongoing to support the promotion of Canadian education and work/study opportunities abroad for Canadian youth. $95.0 million over five years was approved for ESDC for a new inclusive outbound student mobility pilot to support Canadian youth to gain skills essential to their careers and to Canada’s future. 

   The pilot will be delivered under a new umbrella program called “Supports for Student Learning Program”. It will help college and university undergraduate students gain portable skills and intercultural competencies to equip them to participate in the global labour market by supporting study and work abroad opportunities. It is estimated that approximately 11,000 Canadian post-secondary students will benefit from this initiative over the five-year pilot.

   The pilot would be delivered via targeted contribution agreements with Universities Canada and Colleges (UnivCan) and Institutes Canada (CiCan), who would in turn fund individual post-secondary institutions to deliver outbound mobility programs at their respective institutions. UnivCan and CiCan are uniquely positioned to deliver international experience programming given their extensive experience and expertise in the post-secondary education sector and their existing infrastructures and networks among colleges and universities across Canada. Students would apply for funding through their post-secondary institution and student eligibility will be determined based on their institution’s own selection criteria. Post-secondary institutions will be responsible for ensuring that students will receive credit and be paid for their work abroad. Students will receive up to $5,000 (up to $10,000 for underrepresented students) depending on their demonstrated needs and destination.

   Operating funds approved will be used to manage agreements, support policy analysis and development, monitor implementation, support evaluation and report on progress of the pilot.

   ESDC is requesting authority to include $1,927,153 in Vote 1 (Operating expenditures, excluding EBP costs of $251,075) and $10,000,000 in Vote 5 (Contributions) for the International Education Strategy as part of the 2019–20 Supplementary Estimates (A).

5. Funding for renewing Canada’s approach to cyber security for the Student Work-Integrated Learning Program Security – redacted – $2.7 million

   Budget 2018 proposed investing $507.7 million over five years and $108.8 million ongoing, to fund Canada’s new National Cyber Security Strategy to ensure that Canada has a strong federal cyber governance system to protect Canadians, their sensitive personal information and Canada’s critical infrastructure. Of this funding, $8.3 million over three years (from 2018–19 to 2020–21) was approved for ESDC for the Student Work Placement Program (formerly the Student-Work Integrated Learning Program) to support the creation of 1,000 new Work Integrated Learning opportunities (see item 2 for additional details on the Student Work Placement Program.

   ESDC is requesting authority to include $284,978 in Vote 1 (Operating expenditures, excluding EBP costs of $46,052) and $2,367,150 in Vote 5 (Contributions) for renewing Canada’s approach to cyber security for the Student Work Placement Program as part of the 2019–20 Supplementary Estimates (A).

6. Funding for the launching of Canadaʼs Social Innovation and Social Finance Strategy – redacted  –  $2.1 million

   The 2018 Fall Economic Statement committed to make available up to $755 million over the next ten years to establish a Social Finance Fund. The objective of the Fund is to help charitable, non-profit and other social purpose organizations access new financing, and to help connect them with private investors looking to invest in projects that will drive positive social change. In addition, the Government proposed to invest $50 million over two years in a related Investment and Readiness stream for social purpose organizations to improve their ability to successfully participate in the social finance market.

   Further details on the Social Finance Fund and the related Investment and Readiness stream were announced in Budget 2019. The Budget confirmed that the two-year, $50 million investment in the Investment and Readiness stream will be used to support more robust business planning, provide technical assistance and enable social purpose organizations to develop impact measurement tools to monitor progress achieved. This will be accomplished by providing the bulk of the Investment and Readiness grant and contribution funding to a small number of highly networked, high-capacity organizations. These funding recipients will undertake projects aimed at enabling social purpose organizations to become more investment ready.

   Resources were approved to begin launching the Social Innovation and Social Finance (SI/SF) Strategy, more specifically, the Investment Readiness Program as one of the foundational element of the SI/SF Strategy and to undertake activities in 2019–20 to support the establishment of other foundational elements of the Strategy, which include:

   Design a Social Finance Fund to inject capital into Canada’s social market;

   Establish a SI/SF Advisory Committee reporting to the Ministers of ESDC that would provide expertise, facilitate stakeholders engagement and consultation, and would report back on the Strategy’s implementation; and Establish an Office for SI/SF within ESDC to coordinate the Strategy’s implementation and provide secretariat support to the Advisory Committee.

   ESDC is requesting authority to include $2,061,924 in Vote 1 (Operating expenditures, excluding EBP costs of $182,791) for the launching of Canadaʼs Social Innovation and Social Finance Strategy as part of the 2019–20 Supplementary Estimates (A).

B. Reprofiles

1. Funding for Workforce Development Agreements –$81.4 million

   Budget 2016 committed ESDC to consulting with provinces, territories and stakeholders to identify ways to improve these agreements and to help guide future investments to strengthen labour market programming. Drawing on these consultations, Budget 2017 committed to reforming the Labour Market Transfer Agreements. This included the creation of the new Workforce Development Agreements, consolidating the Canada Job Fund Agreements ($500 million annually), Labour Market Agreements for Persons with Disabilities ($222 million annually – expired March 2018) and the former Targeted Initiative for Older Workers ($24 million annually – expired March 2017).

   In addition to consolidating base funding already in place through the Canada Job Fund Agreements and the Labour Market Agreements for Persons with Disabilities, Budget 2017 commited to investing an additional $900 million over six years (2017–18 to 2022–23) in the Workforce Development Agreements. This includes funding to replace the previous allocation under the former Targeted Initiative for Older Workers. New Budget 2017 funding under the Workforce Development Agreements for 2018–19 specifically totaled $75 million, not including the funding already reprofiled from 2017–18 into 2018–19.

   Of the new funding announced in Budget 2017, ESDC is requesting a reprofile of $81,445,289 from fiscal year 2018–19 to 2019–20. This represents the sum of two amounts:  1) the difference between Quebec’s 2017–18 Workforce Development Agreement final maximum contribution and amounts paid to the province in 2017–18 under Quebec’s Canada Job Fund Agreement and their Labour Market Agreement for Persons with Disabilities and 2) the difference between the Quebec’s 2018–19 Workforce Development Agreement final maximum contribution and the amount paid to the province in 2018–19 under Quebec’s Canada Job Fund Agreement.

   Circumstances unique to Quebec prevented it from signing the new Workforce Development Agreements before March 31, 2019, including delays due to the provincial elections held in Quebec during the fall 2018. All other PTs have signed their new Agreement, allowing these jurisdictions to access funds without the need for a reprofile request.

   ESDC is requesting authority to include $81,445,289 Vote 5 (Other Transfer) for Workforce Development Agreements as part of the 2019–20 Supplementary Estimates (A).

2. Funding for the Indigenous Early Learning and Child Care Transformation Initiative – Reprofile – $8.1 million

   The Indigenous Early Learning and Child Care (ELCC) Transformation Initiative aims to improve access and quality of ELCC services and supports for Indigenous children and families. High quality, culturally appropriate, flexible and affordable ELCC will ensure Indigenous children have the best possible start in life. This Initiative also upholds the Government’s commitment to reconciliation with Indigenous peoples. The Government of Canada has committed up to $1.705 billion over 10 years to strengthen ELCC programs and services for Indigenous children and families starting in 2018–19.

   The time required for engagement and co-development of an Indigenous ELCC Framework resulting in funds in 2018-19 not being fully spent. Funds not spent in 2018–19 are necessary at early stages of the initiative to support needed governance and capacity building; to establish and maintain the required relationships, and to uphold the principles laid out in the IELCC Framework between the Government of Canada and Inuit, First Nations and Métis Nation.

   Even with abbreviated timelines, Inuit, First Nations, and Métis (at national and regional levels) mobilized quickly to set-up governance structures, make allocation decisions, and identify plans and priorities to facilitate flow of funding however, it was not possible to bring all tables across the line in time, which has resulted in some slippage and the need for this reprofile. 

   Given this circumstance, it was requested that $20.4 million lapsed in 2018–19 be reprofiled to future years: $8.1 million into 2019–20 and $12.3 million into fiscal year 2020–21.

   ESDC is requesting authority to include $8,144,261 Vote 5 (Contributions) for Indigenous Early Learning and Child Care Transformation Initiative as part of the 2019–20 Supplementary Estimates (A).

3.  Funding for the Canada Service Corps 6,500,000 – Reprofile – $6.5 million

   Funded through Budget 2016, the Canada Service Corps (CSC - previously 'Youth Service Initiative'), is a national youth service program that provides grants and contribution funding to third parties (youth service delivery organizations) to create service placements for young Canadians (aged 15 to 30) across Canada. By empowering youth to be involved in service placements, the CSC enhances the culture of service in Canada, while contributing to local action on federal priorities to improve the social, economic and environmental well being of communities. Service placements are offered by both national and local/regional level organizations.

   Program implementation began with a design phase, launched in January 2018 until March 31, 2019, during which innovative ways to engage youth in community service were tested, and young people were directly engaged in co-creating the CSC to inform future program directions. Contribution agreements end in March 2020 to ensure service continuity between the design phase and future program phases.

   Employment and Social Development Canada (ESDC) is seeking to re-profile a portion of lapsing grants and contributions (Gs&Cs) funding from FY 2018-19 to FY 2019-20 that had been earmarked for local/regional projects to ensure that planned work to test the effectiveness of engaging youth via smaller-scale local/regional projects can be carried out.

   ESDC is requesting authority to include $6,500,000 Vote 5 (Contributions) for the Canada Service Corps as part of the 2019–20 Supplementary Estimates (A).

4.  Funding for investing in Early Learning and Childcare Innovation – Reprofile – $3.4 million

   Budgets 2016 and 2017 announced an investment of $7.5 billion over 11 years in ELCC of which $100 million over 10 years is dedicated to ELCC innovation.

   A Call for Concepts on ELCC innovation, under the Social Development Partnerships Program - Children and Families component, launched in June and closed in July 2018. Of the 305 concepts received, 177 met the mandatory eligibility requirements and were assessed and ranked. Due to the delay in launching the Call and a prolonged period of assessment resulting from the higher than anticipated number of applications and resulting delays in project approvals, projects from the Call for Concepts are anticipated to begin in July 2019 (2019–20 fiscal year).

   Reprofiling these funds will allow the Department to support a broader range of projects. This would ensure projects would have a meaningful duration and impact and could maximize innovative approaches.

   ESDC is requesting authority to include $3,406,114 Vote 5 (Contributions) for investing in Early Learning and Childcare Innovation as part of the 2019–20 Supplementary Estimates (A).

5. Funding for training and capacity building for early childhood educators – Reprofile – $1.5 million

   Budget 2018 announced $20 million in new funding for ESDC to support early childhood development initiatives in Francophone minority communities as part of the Action Plan for Official Languages. $13.15 million of this was allocated to training and capacity building for early childhood educators over five years (2018-2023), with $2.51 million each year in grants and contribution funding.

   The Department had already initiated discussions with stakeholders, but was unable to put in place an agreement before the end of the fiscal year 2018-2019. Through these discussions, it was determined that a pan-Canadian scan of training and education for early childhood educators in Francophone minority communities (available training, needs for educators in the community) was needed to help inform the distribution of remaining funds over the course of the Action Plan (2018-2023).

   In anticipation of the results of the scan, ESDC is working with stakeholder organizations (the Association des Collèges et Universités de la Francophonie Canadienne (ACUFC) and their partner, Commission Nationale des Parents Francophones (CNPF), collaborating with the Réseau de Développement Économique et d'Employabilité (RDÉE) and Société Santé en français (SSF)), to enter into a multi-year agreement whereby these organizations would act as an intermediary to fund projects related to the needs identified.

   ESDC is requesting authority to include $1,510,000 Vote 5 (Contributions) for training and capacity building for early childhood educators as part of the 2019–20 Supplementary Estimates (A).

6. Funding for Women in Construction Fund – Reprofile – $0.6 million

   Budget 2018 announced an investment of $10 million over three years for the Women in Construction Fund, which amounts to $9 million in contributions ($2.7 million in 2018–19, and $3.2 million for each of 2019–20 and 2020–21). The Fund supports projects that expend and replicate successful models to encourage more women to participate in apprenticeship and the skilled trades, and help them to train and skilled trades and succeed in construction jobs.

   As a result of internal approval delays and the complexity of the negotiations, contribution agreements with the four organizations solicited could not be finalized and signed until March to May 2019. redacted  

   ESDC is requesting authority to include $574,994 Vote 5 (Contributions) for Women in Construction Fund as part of the 2019–20 Supplementary Estimates (A).

7. Funding for Service Canada call centres – Reprofile – $0.4 million

   Being able to call and talk to their government remains the primary preferred interaction for Canadians and employers, who expect convenient, easy-to-access services, presently limited by outdated call centre technology. ESDC received approval through Budget 2019 to seek funding of $16.6 million over two years starting in 2019–20 to facilitate the replacement of end-of-life and end-of-support call centre technology for faster, quality services by phone as per the Investing in Service Canada measure.

   ESDC is requesting authority to include $357,295 in Vote 1 (Operating expenditures) for Service Canada call centres as part of the 2019–20 Supplementary Estimates (A).

C. Transfers

1. Transfer to various organizations for the Youth Employment and Skills Strategy – $8.0 million

   In Budget 2018, the Government provided an additional $448.5 million over five years, starting in 2018–19, to the Youth Employment Strategy. Of this amount, $334.8 million over three years was dedicated to implement a modernized Youth Employment Skills Strategy (YESS).

   The modernized YESS supports youth in gaining access to programs that allow them to acquire the skills, learning experiences and opportunities they need to find and maintain employment or return to school. It aims to connect with youth (15-30) and the youth serving community to help young Canadians access training and jobs under three program streams: the Canada Summer Jobs, the Youth Employment and Skills Strategy Program (which replaces Skills Link, Career Focus and Summer Work Experience) and the Goal Getters program (to help youth younger than 15 years old and up to 30 years old facing barriers to complete high school and transition to post-secondary education and/or employment).

   The transfer of YESS funding from ESDC to partner departments is for one year only, as is to maintain previous overall funding in those other departments, lessening the impact of sun-setting funds while the new Youth Employment and Skills Strategy is being implemented. 

   ESDC is requesting authority to include $3,213,965 in Vote 1 (Operating expenditures) and $4,771,368 in Vote 5 (Contributions) Transfer to OGD to implement the modernized Youth Employment and Skills Strategy as part of the 2019–20 Supplementary Estimates (A).  This represents the funding transfer for three of the partner departments.  The transfer of funds for the remaining partner departments will be included in Supplementary Estimates (B).

D. Statutory Authorities

1. Adjustment to Contributions to employee benefit plans (EBP) – $9.8 million

   An adjustment of $9,855,353 to EBP costs related to six items requested in these Supplementary Estimates is being included in the 2019–20 Supplementary Estimates (A).

   The six items are:

   • Funding for retroactive compensation ($7,598,534);  
   • Funding for modernize federal labour standards under the Canada Labour Code ($1,659,368);     
   • Funding for Canada’s New International Education Strategy ($251,075);
   • Funding for the launching of Canadaʼs Social Innovation and Social Finance Strategy ($182,791);
   • Funding to invest in Work-Integrated Learning for post-secondary students across Canada ($117,533); and  
   • Funding for Funding for renewing Canada’s approach to cyber security for the Student Work-Integrated Learning Program ($46,052).

Issue

Why is Employment and Social Development Canada (ESDC) requesting $6.5 million for the Canada Service Corps in the 2019–20 Supplementary Estimates (A)?

Response

• Initially funded through Budget 2016, Canada Service Corps (CSC), previously 'Youth Service Initiative', is a national youth service program that provides contribution funding to create community service placements for youth across Canada.
• On January 16 2018, program implementation began with a design phase, which tested ways to engage youth in community service.
• A portion of funding was allocated to support regional projects in delivering youth service opportunities.
• Given the significant interest in the program, the call for proposals was extended resulting in a high volume of applications from organizations.  This required additional time to negotiate and finalize agreements.
• There are currently 99 regional projects in place, in communities across Canada.
• Building on the success of the design phase, Budget 2019 provided for $314.8 million to the Canada Service Corps to 15,000 placements per year by 2023-24.

Key facts

• Budget 2016 provided $105 M over five years to create the Canada Service Corps, and $25 M per ongoing.  In January 2018, the Prime Minister launched the design phase of the program.
• During this time, ESDC funded a coalition of 13 national organizations and launched a call for proposal for regional organizations to offer service opportunities to youth. 1,000 youth received micro-grants to lead their own service projects.
• National Projects
  • A coalition of pan-Canadian organizations create national projects that involve youth directly in immersive full time or part time flexible service opportunities. These projects are being implemented in the field by the following twelve organizations: 4-H Canada; 4Rs Youth Movement; Apathy is Boring; Boys and Girls Club of Canada; Canadian Roots Exchange; Canadian Wildlife Federation; Chantiers jeunesse; Duke of Edinburgh’s International Award – Canada; Katimavik; mindyourmind; Ocean Wise; and the YMCA.
• Regional Projects
  • The Department issued an open Call for Proposals (CFP) on January 16, 2018, for eligible organizations across Canada to propose local or regional-scale service projects.
  • The CFP was launched in January 2018, to coincide with the launch of the design phase by the Prime Minister. This was later than originally anticipated. 
  • In addition, given the interest in the program, and a desire to reach smaller organizatios, the CFP was extended to close in March 2018, and received over 500 applications.
  • While the assessment period was completed in 3 months as planned, succesful projects included many smaller-scale and lower-capacity organizations, requiring more time to negotiate individual agremeents, resulting in a lapse of $6.5M.
  • Ninety-nine (99) organizations across Canada were funded to deliver regional projects, with representation of every Province and Territory.  These service opportunities are part time flexible service placements.
• Micro-grants
  • Youth also accessed micro-grants to lead their own small-scale community projects ($250-$1,250, with a limited number of $5,000 micro grants available)
  • Building on the success of the design phase, Budget 2019 proposed to invest up to an additional $314.8 million over five years, starting in 2019–20, with $83.8 million per year ongoing, to make the Canada Service Corps Canada’s signature national youth service program.
• Additional investment to the Canada Service Corps Program will allow for the:
  • Scale up to 15,000 service placements by 2023-24
  • Continued delivery of at least 1,000 annual micro-grants
  • Development of new incentives and supports, co-created with young people, to address barriers to participation in volunteer service programs.
  • Creation of a new digital platform that will integrate with the Government’s new youth digital gateway to allow young people to identify, manage and share experiences from service placements.

Background

Evaluation

• An evaluation of the Canada Service Corps is scheduled to be completed in 2023-24.

key quotes

Prepared by
Not available

Key Contact
Jocelyne Voisin,
Director General
819-654-6732

Approved by
Rachel Wernick, SADM
819-654-5991

and

Mark Perlman
Chief Financial Officer
819-654-6634

Date
2019-11-29

Issue

Why is Canadian Accessibility Standards Development Organization (CASDO) requesting an adjustment of $0.8 million in funding to the statutory item “Contributions to employee benefit plans” in the 2019–20 Supplementary Estimates (A)?

Response

• Changes to statutory items are presented in the Supplementary Estimates for information purposes only as Parliament has already approved the purpose of the statutory expenditures and the terms and conditions under which they may be made through other legislation (other than Appropriation Acts).
• Contributions to employee benefit plans include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.
• Canadian Accessibility Standards Development Organization request an adjustment of $774,439 for the Contributions to employee benefit plans.

Prepared by
Jennifer Moorehead
Senior Director, Planning and Expenditure Management
Chief Financial Officer Branch
(819) 654-6402

Key Contact
Jason Won
Deputy Chief Financial Officer
(819) 654-6583

Approved by
Mark Perlman
Chief Financial Officer
819-654-6634

Date
Not available

Issue

Why is $9.2 million requested to create the Canadian Accessibility Standards Development Organization (CASDO)?

Response

• The Government of Canada aims to create a truly accessible and inclusive Canada.
• The Accessible Canada Act created the Canadian Accessibility Standards Development Organization (CASDO).  CASDO will develop accessibility standards and promote research on the identification and removal of barriers to accessibility.
• CASDO will move Canada from a system where persons with disabilities have to fight every day for basic access, to a new model that will proactively address barriers to accessibility and the structures that perpetuate these barriers.  CASDO’s mandate will make a significant contribution to Canada’s capacity to harness the skills and talents of persons with disabilities in this country.
• $9.2 million is being invested in 2019-2020 to establish the new organization, to begin creating accessibility standards, and to start research on barrier identification, prevention and removal.
• This amount includes $5.9 million in Vote 1 (Operating Expenditures) to get CASDO up and running, in order to meet its legislated mandate and achieve progress on accessibility standards.
• It also includes $3.3 million in Vote 5 (Grants and Contributions) to advance accessibility standards research that will inform future accessibility standards.

Key facts

• On July 11, 2019, the Accessible Canada Act came into force.
• The Accessible Canada Act represents the most significant Government of Canada disability rights legislation in over 30 years.
• Working within federal jurisdiction, the purpose of the Bill is to benefit all persons, especially persons with disabilities, through the progressive realization of a Canada without barriers.
• The Accessible Canada Act creates several new organizations including CASDO.
• CASDO’s Board of Directors and Chief Executive Officer were appointed on August 26, 2019.  The majority of CASDO’s Board of Directors are required to be persons with disabilities.  CASDO is the first federal institution to be led by persons with disabilities.
• CASDO is a separate departmental corporation within the federal government.  It must arrange for all its own corporate services like other government departments and corporations. 
• With the Accessible Canada Act, the Government of Canada is taking a proactive approach to get ahead of systemic discrimination across all areas of federal jurisdiction and achieving the progressive realization of a Canada without barriers.
• Only 59 percent of Canadians with disabilities, aged 25 to 64, are employed, compared to 80 percent of Canadians without disabilities (2017 Canadian Survey on Disability, or 2017 CSD).
• Persons with disabilities are more likely to be unemployed, to live in poverty and to earn less than people without a disability (2017 CSD).
• It is estimated that there are 645,000 persons with disabilities aged 25 to 64 who are not working, but who have the potential to do so (2017 CSD).

Background

Funding

Allocation of Funds

• CASDO will be established as a separate, departmental corporation.  The governance of the organization will be solidified, foundational corporate services will be established, accessibility standards will begin to be developed, and funding for accessibility standards research will be awarded.
• CASDO has a Governor-in-Council appointed Board of Directors.  The majority of the Board of Directors are required to be persons with disabilities to embody the “Nothing about us without us” philosophy.  The Board is responsible for providing strategic direction to the organization, for ensuring that the organization is set up quickly, that the work of the organization reflects the priorities and diverse experiences of persons with disabilities, and that there is transparency and accountability to Canadians.
• CASDO will have the autonomy to decide which projects it will lead or fund other organizations to undertake. Project intake may include open calls, solicited and unsolicited projects and CASDO will be responsible for negotiating agreements, monitoring agreements, and results reporting (including collecting performance information from organizations it funds through sub-agreements).

Anticipated Results

• The establishment of CASDO will allow the organization to create accessibility standards.  Accessibility standards will move Canada from a system where persons with disabilities have to fight every day for basic access, to a new model that will proactively address barriers to accessibility and the structures that perpetuate these barriers.  The accessibility standards will also serve as a resource to governments and businesses outside of the federal jurisdiction, and could be applied internationally as accessibility best practices.  CASDO’s mandate will make a significant contribution to Canada’s capacity to harness the skills and talents of persons with disabilities.
• The creation of the Advancing Accessibility Standards Research fund will support and promote research into the identification and removal of barriers to accessibility and the prevention of new barriers, and to inform the next generation of model accessibility standards.  The fund will support the establishment of a national network of accessibility standards expertise.

Monitoring and Measurement

• CASDO will provide an annual report to the Minister on its activities in that fiscal year.  The Minister will table that report in each House of Parliament.
• CASDO will create a departmental results framework, a program inventory and performance information profiles.  CASDO will report annually on its performance against these plans as required by Treasury Board Secretariat.

Evaluation

• CASDO will pursue accreditation as a standards development organization.  CASDO will be required to participate in accreditation cycle activities at regular intervals to maintain accreditation.
• CASDO will be required to conduct evaluations required by the Treasury Board Policy on Results.
• The Advancing Accessibility Standards Research fund will undergo a periodic evaluation to comply with the Treasury Board Policy on Results.

Key quotes

• Canadians with disabilities face barriers that affect their ability to fully participate in many daily activities and that limit their social and economic inclusion.
• A key principle of the disability community is “nothing about us, without us.” For years, persons with disabilities have underlined that full participation and equality of opportunity can only be realized when people with disabilities are meaningfully involved in the planning, development, and implementation of legislation, policies, and strategies that affect their lives.
• The Canadian Accessibility Standards Development Organization is the first federal institution to be led by persons with disabilities and will be the federal leader in establishing accessibility standards. CASDO’s mandate will make a significant contribution to Canada’s capacity to harness the skills and talents of persons with disabilities in this country.
• CASDO will move Canada from a system where persons with disabilities have to fight every day for basic access, to a new model that will proactively address barriers to accessibility and the structures that perpetuate these barriers. 

Prepared by
Kevin Whitehouse,
DG, CASDO
Implementation Branch
(613) 437-1735

Key Contact
Kevin Whitehouse,
DG, CASDO
Implementation Branch
(613) 437-1735

Approved by
Philip Rizcallah,
Chief Executive Officer, CASDO
(613) 437-1730

Mark Perlman
Chief Financial Officer, ESDC
(819) 654-6634

Date
28 Nov 2019

Issue

Why is Employment and Social Development Canada (ESDC) requesting $2.7 million for renewing Canada approach to Cyber Security for the Student Work-Integrated Learning Program in the 2019–20 Supplementary Estimates (A)?

Response

• To support the ongoing creation of new cybersecurity student work placements under the Student Work Placement (SWP) Program, in support of the Government’s National Cyber Security Strategy, the Department is requesting $2.7 million through SUPPS A.
• Budget 2018 announced $8.3 million over three years to support the creation of up to 1,000 new work-integrated learning opportunities in the cybersecurity sector through the SWP Program, as part of Canada’s National Cyber Security Strategy.
• Through the SWP Program the Department of Employment and Social Development plays an important role in developing cyber skills and knowledge by working  with employers in the information and communication technology sector:

key facts

• In 2016, the Government of Canada undertook a Cyber Review to assess current measures to protect critical infrastructure and Canadians from cyber threats. Participants consistently stressed the need to uphold all Canadians’ privacy rights, the need for stakeholders to collaborate with one another (i.e. governments, private sector, law enforcement, academia, non-profit organizations) and the need to rely on cyber security experts.
• redacted
• Budget 2018 proposed investing $507.7 M over five years, and $108.8 M per year ongoing, to fund Canada’s new National Cyber Security Strategy to ensure that Canada has a strong federal cyber governance system to protect Canadians, their sensitive personal information, and Canada’s critical infrastructure. The overall funding allotment included $8.3 M over three years to support the creation of 1,000 new student work placements in fields related to cyber security, through the SWP Program, as part of Canada’s National Cyber Security Strategy. 
• The SWP Program works with two employer consortia in order to deliver wage subsidies to employers in the cybersecurity field. The subsidies are between $5,000 and $7,000 for each new student work-integrated learning (WIL) opportunity created.
• Employer consortia partners have advised the Program that employers across all sectors are recruiting skilled cyber security talent with the right blend of skills needed to identify security issues, respond to data breaches, ensure safety and reliability of online transactions, and safeguard data transmission.

Background

Evaluation

• The SWP Program’s evaluation will be completed by December 2021.

Prepared by
Sarah Plouffe,
Director

Key Contact
Jocelyne Voisin,
Director General
819-654-6732

Approved by
Rachel Wernick, SADM
819-654-5991

Mark Perlman,
CFOB
819-654-6634

Date
2019-11-29
Approved in SADMO

Issue

Why is Employment and Social Development (ESDC) requesting an adjustment of $9.9 million in funding to the statutory item “Contributions to employee benefit plans” in the 2019–20 Supplementary Estimates (A)?

Response

• Changes to statutory items are presented in the Supplementary Estimates for information purposes only as Parliament has already approved the purpose of the statutory expenditures and the terms and conditions under which they may be made through other legislation (other than Appropriation Acts).
• Contributions to employee benefit plans include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.
• The adjustment of $9,855,353 is for six items included in these Supplementary Estimates:
  • Funding for retroactive compensation ($7,598,534);         
  • Funding to modernize federal labour standards under the Canada Labour Code ($1,659,368);      
  • Funding for Canada’s New International Education Strategy ($251,075);
  • Funding for the launch of Canadaʼs Social Innovation and Social Finance Strategy ($182,791);
  • Funding to invest in Work-Integrated Learning for post-secondary students across Canada ($117,533); and         
  • Funding for renewing Canada’s approach to cyber security for the Student Work-Integrated Learning Program ($46,052).

Prepared by
Jennifer Moorehead
Senior Director, Planning and Expenditure Management
Chief Financial Officer Branch
(819) 654-6402

Key Contact
Jason Won
Deputy Chief Financial Officer
(819) 654-6583

Approved by
Mark Perlman
Chief Financial Officer
819-654-6634

Date
Not available

Issue

Why is Employment and Social Development Canada (ESDC) requesting $8.1 million for the Indigenous Early Learning and Child Care Transformation Initiative in the 2019‑20 Supplementary Estimates (A)?

Response

• $8.1 million is being requested through 2019-2020 Supplementary Estimates (A) for the Indigenous Early Learning and Child Care (IELCC) Transformation Initiative.
• The request reflects 2018-2019 IELCC funding that was reprofiled for use over the next two years (i.e. $8.1 million in 2019-2020 and $12.2 million in 2020‑2021).
• In support of the Indigenous ELCC Framework, the Government of Canada committed up to $1.7 billion over 10 years to strengthen early learning and child care programs and services for Indigenous children and families starting in 2018‑2019. This is part of a broader commitment of $7.5 billion over 11 years the Government has made to support and create high-quality affordable child care across the country.

Key facts

• In September 2018, the Government of Canada released the co-developed IELCC Framework alongside leaders from the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council. It went on to commit $1.7 billion over 10 years to support implementation of the Framework through the IELCC Transformation Initiative.
• Despite abbreviated timelines, First Nations, Inuit, and Métis mobilized quickly to establish national and regional governance structures; identify Indigenous ELCC plans/priorities; and, obtain leadership endorsed allocation decisions to advance 2018-2019 funding. As a result, $100 million in new IELCC funding was advanced to communities in fiscal year 2018-2019.
• Unfortunately, some jurisdictions were not able to achieve consensus on Indigenous ELCC plans and allocations before the end of the 2018-2019 fiscal year. Those funds have since been reprofiled and are being sought via Supplementary Estimates (A) for use in 2019-2020 and 2020-2021.
• The following is a list of jurisdictions who did not achieve consensus within 2018-19 timelines and who will benefit from the reprofile:
  • First Nations: Ontario, Québec, Northwest Territories and Yukon,
  • Métis: Northwest Territories, Métis Settlements of Alberta; and
  • Inuit: Nunavut (7 sites) and Ottawa (1 site).

Background

Evaluation

redacted

Key Quotes

Prepared by
Barbara D’Amico
Manager
873-396-2813

Key Contact
Cheri Reddin
Executive Director

Approved by
Catherine Adam
Senior Assistant Deputy Minister

and

Mark Perlman
Chief Financial Officer
819-654-6634

Date
Date approved

Issue

Why is Employment and Social Development Canada (ESDC) requesting $11.9 million for Canada’s New International Education Strategy in the 2019–20 Supplementary Estimates (A)?

Response

• As part of the new International Education Strategy, Employment and Social Development Canada is seeking funding for a new five-year Outbound Student Mobility Pilot to equip young Canadians to succeed in the new economy. Funding sought today is to support year-one planned spending for the Pilot. redacted
• This Pilot will help up to 11,000 Canadian college and undergraduate university students to study or work abroad, with a specific focus on supporting Indigenous students, students with disabilities and low-income students, who would not otherwise be able to benefit from international opportunities.
• Through these opportunities, students will develop the kinds of skills that employers are increasingly looking for in graduates and is another example of how the Government of Canada is working to ensure that all Canadians have the same opportunities to benefit from post-secondary education.
• This funding will begin supporting Canadian college and undergraduate university students to study or work abroad in Autumn 2020. The majority of funding will support direct grants to students.

Key facts

• Few Canadians go abroad compared to peer countries. Only about 10% of Canadian undergraduate students study abroad and those who do tend to go to culturally familiar destinations such as the United States, the United Kingdom, Australia and France (Statistics Canada, 2018). The United States, Australia, and the European Union have implemented outbound mobility strategies to meet objectives such as addressing skills gaps, increasing their competitiveness in emerging markets, and increasing diplomatic relations with key countries. (Study Group on Global Education, “Global Education for Canadians: Equipping Young Canadians to Succeed at Home & Abroad,” 2017).
• Benefits associated with outbound mobility include: enhanced labour market outcomes after graduation, such as better employability and higher wages.
• Budget 2019 proposed to invest $147.9 million over five years, starting in 2019–20, and $8.0 million per year ongoing to develop a new International Education Strategy:
  • Employment and Social Development Canada – $95 million over five years for a new Outbound Student Mobility Pilot to help provide more Canadian students with opportunities to study or work abroad, which in turn will help them gain portable skills and intercultural competencies.
  • Global Affairs Canada – $34 million over five years ($6.4 million ongoing) for additional scholarships and a digital marketing strategy.
  • Immigration, Refugees and Citizenship Canada – $20 million over five years ($1.5 million ongoing) to offer faster processing of student permit applications to prospective international students, improve client services, and increase promotion of International Experience Canada.

Background

Program’s Objectives

The Outbound Student Mobility Pilot will support Canadian college and undergraduate university students to study or work abroad, with a focus on supporting those who would not otherwise be able to afford it or who face additional barriers to participation, so that they can gain necessary skills sought by employers.

During the announcement of the new International Education Strategy on August 22, 2019, Universities Canada and Colleges and Institutes Canada were identified as delivery organizations for the Pilot, given their experience leading similar projects. Contribution agreements were signed in October 2019 with both organizations to support necessary design and ensure that post-secondary institutions are ready to implement ($1 million between October 2019 and March 2020). Key activities include: engagement with post-secondary institutions and key stakeholders, establishing and Advisory Committee to provide strategic advice and guidance, development of a monitoring and evaluation framework, and creating a branding and communications plan. In spring 2020, a call for proposals will be issued to post-secondary institutions, after which select post-secondary institutions will receive funding to distribute directly to students, so that they can begin studying and working abroad in fall 2020.

Undergraduate and college students at designated post-secondary institutions will be eligible to receive funding. Grant amounts could be up to $10,000, depending on students’ needs and students may receive funding to study or work abroad for varying lengths of time. The Pilot will also include a strong monitoring and evaluation component to track and report on outcomes.

Issue

Why is Employment and Social Development Canada (ESDC) requesting $28.4 million for retroactive compensation in the 2019–20 Supplementary Estimates (A)?

Response

• ESDC worked collaboratively with managers, employees and the union to resolve a longstanding job description grievance.
• With the Budget 2019 investment of $101.7M over two years, ESDC will be able to meet its financial obligations to its employees through timely payment of retroactive salaries as it settles this long-standing grievance, while ensuring no significant and direct impact on service delivery to Canadians.

Key facts

• ESDC received funds committed in Budget 2019 redactedto enable the Department to meet obligations from a longstanding grievance concerning the Program and Service Delivery Clerk job description, which resulted in a reclassification.
• The scale and scope of this exercise is complex: over 1,500 employees will be implicated, from 2006 to the present. Specifically, this funding will enable the establishment of a dedicated project team to undertake employment history reviews of those affected by the reclassification, oversee the implementation of retroactive payments to reclassified employees for work performed since 2006, and manage the adjustment of salaries going forward.

Background

The Program Support Delivery Clerk (PSDC) job description was implemented across Employment and Social Development Canada (ESDC) effective September 14, 2006. The job description was classified at the CR-04 group and level.

Job content and/or classification grievances were filed against the PSDC job description from 2008 from employees who worked in the Pensions (Canada Pension Plan (CPP) and Old Age Security (OAS)) and Integrity (CPP, OAS, and Employment Insurance) business lines.

Following a third level grievance in March 2013, the Department committed to revising the job description and to submit the revised version for a classification review.
In September 2018, management concluded the consultation process with the various stakeholders. The resulting job description was signed on September 13, 2018 and sent for classification evaluation (consistent with the Government of Canada’s Directive on Classification).

The classification committee classified the job description and also observed that in fact there were two specific streams of work undertaken by PSDCs. The Department agreed with the committee and created a second job description in January 2019 to recognize this fact and it too was sent for classification evaluation.

As a result, the Department informed employees who were impacted by the decision about the creation of the two new job descriptions. Program Services Officer at the PM-01 group and level and Program Support Clerk at the CR-04. Employees were informed in late February 2019.

The Department is working with all stakeholders to implement the new job descriptions, and to pay any salary retroactivity to those employees who are entitled. The Department is following Treasury Board policy on Retroactive Reclassifications and Appointments.

Moving forward, the Department will work in collaboration with the Treasury Board Secretariat (TBS) and the Department of Finance to access ongoing funding related to the increase in salary costs once these are better defined.

Issue

Why is Employment and Social Development Canada (ESDC) requesting $0.4 million for Service Canada call centres in the 2019–20 Supplementary Estimates (A)?

Response

• ESDC provides more than $100 billion in benefits annually to support approximately 8 million Canadians at all stages of their lives. This magnitude of benefits and interactions with Canadians highlights the importance of strong service delivery and improved service quality that ensures clients have timely access to their entitled benefits.
• ESDC is migrating nine contact centres and one stand-alone interactive response system onto modern, hosted contact centre platforms which will ensure that our clients can continue to access our services by phone, and provide capabilities for new and modern ways for Canadians to interact with their government.
• To date, ESDC has migrated the internal National Service Desk, the Employer Contact Centre, and the Canada Pension Plan & Old Age Security Call Centres onto a modern platform.
• The migrations of the Employment Insurance Call Centres, Canada Education Savings Contact Centre and Canada Student Loans Contact Centre are anticipated in 2019-2020.
• ESDC is continuing to plan further migrations of its remaining contact centres.

Key facts

• On July 13, 2018, the Government of Canada Pilot site for the Hosted Contact Centre Solution (HCCS), Shared Services Canada’s (SSC) End User Service Desk (EUSD) successfully migrated onto the HCCS platform.
• On August 17, 2018, the Departmental Pilot site for HCCS, ESDC’s National Service Desk (NSD) successfully migrated onto the HCCS platform.
• On October 28, 2018, the Employer Contact Centre (ECC) migrated successfully to the HCCS platform.
• On May 11, 2019, the Canada Pension Plan & Old Age Security (CPP & OAS) call centres migrated successfully to the HCCS platform.

Background

Issue

Why is Employment and Social Development Canada (ESDC) requesting $2.1 million for Canada's Social Innovation and Social Finance (SI/SF) Strategy - Social Finance Fund Stream in the 2019–20 Supplementary Estimates (A)?

Response

• In the 2018 Fall Economic Statement and in Budget 2019, the Government of Canada committed to establish the foundational elements of Canada’s first-ever (SI/SF) Strategy, including a $50 million Investment Readiness Program, a $755 million Social Finance Fund, and a Social Innovation Advisory Council to support the implementation of the Strategy.
• Funding for the implementation of the Investment Readiness Program was included in the 2019–20 Main Estimates process.
• This request is for funding to implement the other elements of the (SI/SF) Strategy. The funding will allow the Department of Employment and Social Development Canada (ESDC) to hire new employees with expertise in areas including social finance, social impact measurement, and gender-lens investing to work on the design of the Social Finance Fund and to facilitate the establishment of the Social Innovation Advisory Council.
• It will also allow ESDC to procure specialized expertise to inform the financial parameters of the Social Finance Fund and to invest in data collection and research projects needed to evaluate and measure the performance of the Social Finance Fund.

Key Facts

• Social innovation is about developing new solutions to social or economic challenges. It can improve people’s quality of life through collaborating with new partners, testing creative ideas and measuring their impact. It often involves collaboration across different levels of government, charities, the not-for-profit and private sectors to act on a common social issue.
• Social finance is a tool that seeks to mobilize private capital for the public good. It creates opportunities for investors to finance projects that benefit society and for community organizations to access new sources of funds.
• In the 2018 Fall Economic Statement and in Budget 2019, the Government of Canada committed to establish the foundational elements of Canada’s first-ever (SI/SF) Strategy, including a $50 million Investment Readiness Program (beginning in 2018-19), a $755 million Social Finance Fund (beginning in 2019-20), and a Social Innovation Advisory Council to support the implementation of the Strategy (beginning in 2019-20).
• Budget 2019 announced additional details on the Social Finance Fund:
  • Funding will be managed through professional investment managers with expertise in social impact reporting and a proven ability to promote inclusive growth and diversity in the social finance market, to be selected through a competitive selection process.
  • The fund manager(s) will invest in existing or emerging social finance intermediary organizations that have leveraged private or philanthropic capital for co-investment.
  • The fund manager(s) will be required to leverage a minimum of two dollars of non-government capital for every dollar of federal investment, with the exception of investments for Indigenous-led or Indigenous-owned funds.
• The Social Innovation Advisory Council, in turn, will provide technical and sectoral expertise to inform the early implementation and further development of a federal (SI/SF) strategy. The Council will also provide an important perspective from within the stakeholder community, as well as monitor progress and emerging issues in relation to the (SI/SF) Strategy. A call for applications has been completed, and applications are being assessed for Ministerial decision on the composition of the Council.

Background

Evaluation

• An evaluation of the (SI/SF) Strategy will be conducted within five years of the launch of the Social Finance Fund, and every five years thereafter.
• Performance measures for the (SI/SF) Strategy will be developed to support continuous program improvement and determine impacts and outcomes.

Key Quotes

"We in the charitable sector believe Canada can better address its most pressing challenges when innovation is sparked among all sectors — public, private and charitable," said Community Foundations of Canada CEO, Andrew Chunilall. "The Social Finance Fund will attract increased investment to help vulnerable people and to solve pressing challenges like climate change, housing affordability, technological disruption of jobs, and other national and local priorities."
(Community Foundations of Canada, Imagine Canada, MaRS, McConnell Foundation, Philanthropic Foundations of Canada, United Way Centraide Canada - Joint Press Release, November 22, 2018).

“The Chantier de l’économie sociale supports the economic statement tabled today by Canada’s Minister of Finance Bill Morneau. Specifically, the Chantier is pleased with both the announcement of concrete measures and the willingness to pursue efforts to promote a global (SI/SF) strategy. … The focus on women, in particular women entrepreneurs and those wishing to be, is also welcome. On that point, it is worth remembering that collective entrepreneurship is a route favoured by many women, and it is therefore important to ensure that social economy businesses can benefit from all of these measures.”
(Chantier de l’économie sociale – news release, November 21, 2018).

“The creation of a Social Finance Fund is an important first step towards a (SI/SF) strategy for Canada that will accelerate innovative solutions to our most complex social challenges. We welcome the government’s commitment to strengthening social investment and readiness”
(Michael Toye, CCEDNet Executive Director – November 22, 2018).

Issue

Why is Employment and Social Development Canada (ESDC) requesting $16.1 million for Investing in Work-Integrated Learning for post-secondary students across Canada (SWILP) in the 2019–20 Supplementary Estimates (A)?

Response

• The $16.1 million requested in the 2019-2020 Supplementary Estimates (A) represents the third year of the program’s funding, redacted
• Through Budget 2019, the Government announced additional investments totalling $798.2 million over the next 5 years to increase work integrated learning (WIL) opportunities for post-secondary students in Canada. These investments will go towards expanding the Student Work Placement Program to all disciplines, providing innovative WIL opportunities with businesses, and supporting the Business Higher Education Roundtable in forging new partnerships to create more WIL opportunities.
• Together, these efforts will generate up to 84,000 new WIL opportunities for Canadian post-secondary students, ensuring that all post-secondary students who want a placement can be provided with that opportunity.
• The Student Work Placement program provides employers a wage subsidy between $5,000 and $7,000 for each new work placement created for post-secondary education (PSE) students in a variety of disciplines.
• Activities related to the expansion of the SWP Program have begun.  As of September 2019, opportunities were available to post-secondary students in over 150 colleges and universities across the country.

Key facts

• Work-Integrated Learning (WIL), also referred to as experiential learning builds on the successful co-op model but includes other forms of work-based learning such as internships or practicums, applied problem solving, etc.
• WIL is an effective and efficient way to acquire on-the-job experience, improve skills, and connect to employers in a given area of study.
• Research shows co-op graduates at both the college and university levels experience lower unemployment rates.  Bachelor level graduates with co-operative work experience have higher earnings than other graduates.
• The expansion of the Student Work Placement (SWP) Program, together with other federal WIL programs, signals federal commitment to this goal, and addresses roughly over half of the cited gap, creating significant change in employer culture.

Background

Evaluation

• The SWP is a new initiative; there is no historical data with respect to evaluations of the program. The SWP will undergo a formal evaluation by December 2021.

Issue

Why is Employment and Social Development Canada (ESDC) requesting $0.6 million for the Women in Construction fund in the 2019–20 Supplementary Estimates (A)?

Response

• redacted
• The Fund was introduced in late 2018 to increase participation of women in construction trades where they have been traditionally under-represented.
• Given the relatively short period of time allocated to launch the new program, money could not be fully spent in the first year.

Key facts

• Apprenticeship is a key means to access good quality jobs in the skilled trades. Despite significant investments in apprenticeship, there are a number of persistent barriers to improving inclusiveness in the trades workforce, particularly for women.
• Significant federal infrastructure investments and changing demographics (e.g. aging workforce) are expected to drive the need for skills trades workers. Women make up only 3.7% of the direct construction workforce.
• A 2016 Canadian Apprenticeship Forum report identified barriers that women face to entering and succeeding in the trades, including cultural stereotypes about gender norms and workplace discrimination, absence of mentors and role models, and lack of facilities for women and unwelcoming workplaces.

Background

Evaluation

• WCF is a new initiative; there is no historical data with respect to evaluations of the program.
• Given its short-term nature and small size, it is not expected that the WCF will be evaluated as a stand-alone initiative. The UTIP formal evaluation is planned for 2020 and consideration will be given to incorporating an assessment of the WCF outcomes and lessons learned.

Key quotes: n/a

Issue

Why is Employment and Social Development Canada (ESDC) requesting $81.4 million for Workforce Development Agreements in the 2019-2020 Supplementary Estimates (A)?

Response

• This is the outstanding amount owing to Quebec following the signing of its new Workforce Development Agreement (WDA).
• Quebec signed its WDA on July 10, 2019. As a result, the province is now eligible to receive additional funding announced in Budget 2017 for fiscal years 2017-2018 and 2018-2019. The province is also eligible to receive WDA base funding from 2018-2019 equivalent to its portion from the former Labour Market Agreement for Persons with Disabilities. The $81.4 million is the sum of these amounts.
• This ensures that Canadians from all provinces and territories, including those in Quebec, can take full advantage of the additional Budget 2017 investments in the WDAs.

Key facts

• The new Workforce Development Agreements (WDAs) consolidate and replace the Canada Job Fund Agreements, the Labour Market Agreements for Persons with Disabilities and the Targeted Initiative for Older Workers.
• The WDAs provide provinces and territories $722 million in base funding annually, with no end date.
• As announced in Budget 2017, the Government is investing an additional $900 million over six years (2017-2018 to 2022-2023) through the WDAs.
• New WDAs were negotiated and signed with all provinces and territories before the end of fiscal year 2017-2018 except Nunavut and Quebec.
• The Nunavut WDA was signed in July 2018. The Quebec WDA was signed in the 2019-2020 fiscal year. The province is now eligible to receive its share of the additional investments announced in Budget 2017. The province is also eligible to receive WDA base funding from 2018-2019 that it did not receive as a result of the expiration of the former Labour Market Agreement for Persons with Disabilities on March 31, 2018.
• As a result, $81.4 million is re-profiled from 2018-2019 to 2019-2020. This amount is equal to the sum of Quebec’s share of additional Budget 2017 investments for fiscal year 2017-2018 and 2018-2019 and an amount equivalent to its annual Labour Market Agreement for Persons with Disabilities allocation.

Background

Evaluation

• An evaluation of the WDAs is scheduled to be completed in 2021-2022.

Issue

Why is Employment and Social Development Canada (ESDC) requesting $8.0 million for transfers from the Department of Employment and Social Development to others departments to implement the modernized Youth Employment and Skills Strategy in the 2019–20 Supplementary Estimates (A)?

Response

• The Youth Employment and Skills Strategy (YESS) helps young people obtain the information and skills needed to make a successful transition to the workplace. Ensuring that Canadian youth have the resources they need to enter the labour market is a key priority of the Government of Canada.
• Employment and Social Development Canada (ESDC) leads the YESS in collaboration with 10 federal departments and agencies.
• Incremental funds received through Budget 2016 and 2017 sunset (in 2018-2019) for most YESS partner departments.
• In order to offset the impact from this funding decrease and ensure all partners are equipped to deliver on the commitments of the modernized YESS during its first year of implementation, ESDC is requesting to transfer $43.5 million to its partners rather than request additional funding from the fiscal framework. Out of this amount, $8.0 million is being requested to transfer through Supplementary Estimates (A). The remaining funding will be transferred through the following Supplementary Estimates (B)

Key facts

• Through Budgets 2018 and 2019, the government provided an additional $498 million over six years to provide additional resources for a modernized YESS, as well as using a portion of these funds to support the creation of up to 70,000 placements through Canada Summer Jobs in the summer of 2019.
• The total spending for all departments through the Youth Employment Strategy in fiscal year 2017-2018 was $536,456,691.
• The total number of youth served through the Youth Employment Strategy in fiscal year 2017-2018 was 90,403.

Background

Evaluation

• The YESS is subject to section 42.1 of the Financial Administration Act requiring every department to conduct a review every five years of the relevance and effectiveness of each ongoing program for which it is responsible. Accordingly, summative evaluations of the YESS occur on a five-year cycle with the next Summative Horizontal Evaluation of the YESS to be produced in 2020 covering program years 2010-2011.
• The first Summative Horizontal Evaluation of the YESS that will include a review of modernized YESS programming will be produced in 2025.

Issue

Why is Employment and Social Development Canada (ESDC) requesting $3.4 million for investing in Early Learning and Childcare Innovation in the 2019–20 Supplementary Estimates (A)?

Response

• To help Canadian children get the best start in life and better support Canadian families, Budgets 2016 and 2017 announced an investment of $7.5 billion over 11 years in Early Learning and Child Care (ELCC) of which $100 million over 10 years is dedicated to innovation.
• ESDC received a very high number of applications, which led to cause delays in project approvals. Consequently, ESDC was unable to allocate all funds in 2018-19 and is requesting to have $3.4M available in 2019-20.
• These funds will be used to maximize innovation practices to increase high-quality, accessibility, affordability, flexibility and inclusivity of early learning and child care across Canada.

Key facts

• One in four children have access to regulated early learning and child care (ELCC) nationally.
• Budget 2016 and 2017 announced an investment of $7.5 billion over 11 years, starting in 2017-2018, to support and create more high-quality, affordable child care across the country, particularly for families more in need. This includes investments of:
  • $95 million to close data gaps to better understand child care challenges and needs and track progress;
  • $100 million in ELCC Innovation; and
  • $1.7 billion over 10 years starting in 2018-19 to strengthen culturally appropriate early learning and child care for Indigenous children under the Indigenous Early Learning and Child Care Framework.
• The Government entered into three-year bilateral agreements with each province and territory and is providing $1.2 billion from 2017-2018 to 2019-2020. These investments are supporting the creation of up to 40,000 more affordable child care spaces by March 2020. An additional 21,205 more affordable child care spaces have been established already, representing over half (53%) of the March 2020 target of 40,000 spaces. Families in need have particularly benefitted. As a result, thousands of parents are more likely to enter the labour force once child care is made more affordable.

Background

• The Multilateral Early Learning and Child Care Framework sets the foundation for governments to work towards a shared long term vision where all children across Canada can experience the enriching environment of quality early learning and child care. Governments have committed to increase the quality, accessibility, affordability, flexibility, and inclusivity in early learning and child care, in particular for families that need child care the most.
• The Government of Canada continues to work with provincial and territorial governments through three-year bilateral funding agreements totalling $1.2 billion and address their specific early learning and child care needs. Additionally, $95 million will go towards closing data gaps to better understand what child care looks like in Canada and to track progress and $100 million for innovative practices on early learning and child care.
• The Government of Canada has committed $100 million over 11 years for innovation in early learning and child care, starting with $10 million over two years in 2018-19 and 2019-20. A call for concept applications for early learning and child care innovation projects was launched in June 2018.  As a result, 26 projects were funded to explore innovative practices to address ELCC needs in Canada.

Evaluation

Key quotes (in language of quote)

Issue

Why is Employment and Social Development Canada (ESDC) requesting $ 12.6 million to Modernization of Federal Labour Standards under the Canada Labour Code in the 2019–20 Final Supplementary Estimates?

Response

• The Labour Program is responsible for ensuring that working conditions are fair and inclusive, that enforcement measures are effective and that clients receive high-quality, timely and efficient services.
• Further to recent amendments to the Canada Labour Code (Code), the requested funds are committed to modernizing labour standards and innovating the compliance and enforcement regime under the Code to ensure safe, fair, and productive workplaces.
• While the majority of funds will be allocated to service delivery, funding is also allocated to the improved administration of the Wage Earner Protection Program to achieve stable industrial relations in the federally regulated private-sector.
• Funds are important to ensuring that the legislative amendments can be implemented effectively and to ensure that employees in federally regulated workplaces are protected by a robust set of labour standards and that they receive protections in a timely manner.

Key facts

• Over the last decade, experts, as well as internal evaluations have recommended that the Code should be updated and modernized, that service delivery times should be improved and that compliance activities strengthened.
• Recent legislative amendments have laid the groundwork to modernize the Code and its compliance and enforcement regime, including the addition of a new administrative monetary penalties, the new right to request flexible work arrangements and new leaves, and the extension of labour standards protections to interns as well as a suite of robust and modern labour standards.
• The Budget Implementation Act, 2018, No. 2 (BIA 2018 No. 2) also included amendments to the Wage Earner Protection Program Act expanding its eligibility and increasing the WEPP maximum payment from four to seven weeks of maximum insurable earnings under the Employment Insurance Act.
• Budget 2019 announced permanent new funding to increase the Federal Mediation and Conciliation Services’ (FMCS) capacity to promote cooperative labour relations. FMCS is a statutory program supporting Canadian workers, unions and employers in achieving constructive settlements of industrial disputes, leading to good working conditions and sound labour-management relations.

Background

Evaluation

Modern Labour Standards and Innovative Compliance – A 2018 program evaluation provided some recommendations, such as that the labour standards should be modernized and that targeted proactive activities should be improved. This initiative supports these recommendations. The next evaluation will take place in fiscal year 2023-2024.

Wage Earner Protection Program - A 2014 evaluation of the WEPP provided a number of recommendations related to streamlining the administration; exploring ways to assist trustees and receivers and examining options for reducing the processing time for applications that are under review or in appeal. All of these recommendations were addressed. Another evaluation of WEPP is planned for 2020-2021.

Federal Mediation and Conciliation Service – A 2018 evaluation recommended that FMCS promote dispute prevention services and outreach to clients; establish clearer accountability matrices; and improve data collection, monitoring and reporting of dispute prevention activities. Phase II of the FMCS evaluation covering conciliation and mediation services is currently underway. All recommendations are being implemented

Key quotes

• “Providing additional vacation time and leave provisions, as well as new scheduling notice protections, are important steps that will lift employment standards for Canadian workers”
  (Hassan Yussuff, President of the Canadian Labour Congress, CLC Website, October 30, 2018).

• “Quality jobs are an important driver of increased labour force participation, productivity and economic performance.”
  (OECD website, accessed on March 16, 2017)

• “Better jobs can promote other policy goals such as promoting higher labour force participation and increasing the supply of skilled labour, worker commitment and, ultimately, strong and sustainable economic performance.“
  (OECD Labour and Employment Ministerial meeting, Ministerial Statement, January 15, 2016)

• “Countries investing in high quality jobs can make economic leaps.”
  (ILO website, World of Work 2014 Report, accessed on March 16, 2017)

Issue

Why is Employment and Social Development Canada (ESDC) requesting $1.5 million for training and capacity building for early childhood educators in the 2019–20 Supplementary Estimates (A)?

Response

• Early learning and child care can have a profound influence on children’s overall development including their language skills and identity.
• As part of the Government’s commitment to supporting official languages, Budget 2018 announced $400 million over five years in support of the Action Plan for Official Languages 2018-2023.
• These funds will allow ESDC to support a variety of initiatives for early childcare and education in francophone minority communities.

Key facts

• Early learning and child care can have a profound influence on children’s overall development including their language skills and identity.
• Budget 2018 announced $400 million over five years, starting in 2018-19, in support of the Action Plan for Official Languages 2018-2023. Of this amount, $20 million has been dedicated to a variety of early learning and child care initiatives. This includes activities such as training and capacity building for early childhood educators and support for entrepreneurship capacities of early childhood educators in official language minority communities.
• redacted ESDC has requested that some of the 2018-19 funds be available in 2019-20 to maximize benefits to official languages minority communities.

Background

• The Government understands the challenges that official language minority communities are facing, and has developed an Action Plan for Official Languages 2018-2023 to help address some of these challenges. In addition to serving existing communities, providing services and initiatives in both official languages is key to improving the integration and settlement of new immigrants. By promoting official bilingualism and empowering our communities to tell their stories, we strengthen Canada’s diversity, strengthen our communities and increase our influence around the world.
• Employment and Social Development Canada takes a number of measures to fulfill its legal obligations under Part VII of the Official Languages Act. The Department’s main contribution resides in the Government of Canada’s Action Plan for Official Languages 2018-2023. As part of the Action Plan, ESDC is responsible for the implementation of initiatives that will support early childhood development in Francophone minority communities in collaboration with stakeholders, including training and capacity building for early childhood educators.
• Budget 2018 announced $20M in new funding over five years (2018-2023) in support of a variety of early learning and child care (ELCC) initiatives. Of this, $13.15 over five years was allocated to training and capacity building for early childhood educators, with $2.5M in Grants and Contributions allocated for 2018-19.
• Funding for this ELCC initiative is delivered through an existing grants and contributions program, the Social Development Partnerships Program at ESDC, and aims at supporting training and capacity building for early childhood educators in Francophone official language minority communities (OLMCs).
• The Government of Canada announced in June 2018 a partnership with the Association des collèges et universités de la francophonie canadienne (ACUFC) for a multi-year funding project amounting to $12 million over 4 years for the training of early childhood educators and capacity building for the French minority communities.

Evaluation

• According to the findings of the evaluation of the Roadmap for Canada's Official Languages 2013 to 2018: Education, Immigration, Communities, and the evaluation of the coordination program, published on May 29, 2017, it was found that greater support for early childhood is required to assist with the emerging needs of official language minority communities.

Key quotes

Issue

Budget 2019 announced the Government’s continued efforts to enrich the quality of gender based analysis plus which works to narrow the gaps that exist not only between women and men, but also among historically underrepresented groups, such as Indigenous Peoples, visible minorities and person with disabilities.

Talking points

• Department of Finance will help inform policy makers and ensure policy decisions are evidence-based and promote an inclusive economy and society.
• Funding will support the addition of two full-time equivalents and related operating requirements.
• 5 year financial arrangement with Statistics Canada for data access and the development of new indicators to strengthen and help the government achieve its gender-equality and shared-growth objectives.

New card

• The AIIB is a multilateral development bank (MDB) focused on infrastructure financing.
• As we have experienced in Canada, investing in quality infrastructure helps economic growth and encourages sustainable development.
• As a shareholder in the AIIB, Canada can work with other nations, including many key trading partners, to advance important priorities all across Asia, such as inclusive economic growth and equality.
• The Government of Canada is also actively working to identify more opportunities for Canadian businesses in AIIB projects and operations.

Background

• Established in January 2016 and based in Beijing, the AIIB is a multilateral development bank (MDB) focused on infrastructure financing in Asia. As of November 2019, the AIIB had 75 member countries, and 25 prospective ones. Members include Australia, China, France, Germany, India, Italy, South Korea and the UK. The United States and Japan have not joined the Bank.
• Canada joined the AIIB in March 2018, with the Minister of Finance serving as Canada's Governor. Canada is currently serving a two-year term, slated to end next July, as one of twelve Directors on the AIIB Board of Directors. Canada holds approximately 1 per cent shareholding and voting power at the AIIB.
• To date, the AIIB has financed projects in various sectors including transport, energy, and water and sanitation. As of November 2019, the AIIB had provided USD 10 billion across over 50 projects, largely in South Asia. The OECD defines 85 per cent of AIIB’s financing as Official Development Assistance.
• AIIB projects offer commercial opportunities for Canadian firms. For example, Canadian firm Hatch is providing consulting services on an AIIB-financed project. In addition, Canadian firms and staff are engaged with core functions of the Bank. For example, TD Securities helped manage the AIIB’s first bond issuance in May 2019.
• Being a member of the AIIB helps to strengthen Canada's relations with the Asia-Pacific region and multilateral institutions. Through the AIIB, Canada is also able to advance important government priorities, including mobilizing private capital for development, gender equality and innovative financing.
• Canada’s participation in the AIIB has not garnered significant domestic public interest, although the issue appears at regular intervals in the national media. There was one large letter writing campaign asking the Government to withdraw from the AIIB in the fall of 2018 (1000+ emails/letters). The Conservative Party of Canada has opposed Canadian participation in the AIIB, and included a commitment to withdraw from the institution in its latest electoral platform.

Updated card

• As set out in the Constitution, Equalization’s objective is to enable provincial governments to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.
• The Government appreciates the gravity of the situation in Alberta and Saskatchewan and has heard the concerns raised by our colleagues in these provinces. 
• 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 April 1, 2019 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. 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.
  • [to be confirmed – Decision under way] For fiscal year 2016-17, Saskatchewan received a payment of [$20 million] and Alberta received a payment of [$251 million]. (Payments will be finalized on November 29, 2019.)
• 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 to deliver assistance of $1.7 billion to Alberta. He has also threatened to hold a referendum on removing Equalization from the Constitution.

Background

• Canada has taken substantial action to phase out a number of tax preferences available for the extraction of oil and gas and coal:
  • Phase-out of the accelerated capital cost allowance for tangible assets in oil sands projects (Budget 2007; completed in 2015).
  • Reduction in the deduction rates for intangible capital expenses in oil sands projects, to align with rates for conventional oil and gas (Budget 2011; completed in 2016).
  • Phase-out of the Atlantic Investment Tax Credit for investments in the oil and gas and mining sectors (Budget 2012; completed in 2017).
  • Phase-out of the accelerated capital cost allowance for tangible assets in mines (including coal mines) (Budget 2013; to be completed by 2021).
  • Reduction in the deduction rate for pre-production intangible mine development expenses (including coal mines), to align with rates for the oil and gas sector (Budget 2013; completed in 2017).
  • Announcing that the accelerated capital cost allowance for liquefied natural gas (LNG) facilities would expire as scheduled in 2025 (Budget 2016).
  • Phase out of the tax preference that allows small oil and gas companies to reclassify certain development expenses as more favorably treated exploration expenses (Budget 2017; to be completed by 2020).
  • Rationalization of the tax treatment of expenses for successful oil and gas exploratory drilling (Budget 2017; to be completed by 2021).

Remarks (Update to existing card)

• The Canadian economy is sound and supported by a strong labour market and healthy consumer confidence.
• Canadians have created over 1 million new jobs since November 2015, the unemployment rate is at its lowest levels in more than four decades and Canadian wages are growing at their fastest in a decade.
• The OECD and IMF project solid growth for 2019 and 2020, with Canada expected to be the second-fastest growing economy among the Group of Seven countries in both years.
• Investments the Government has made over the last years, to support households, promote export development and business investment, are expected to promote growth now and in the future.

Background

• The global economy likely grow at its slowest pace in 2019 since the Great Recession as ongoing trade tensions have reduced business investment and manufacturing activity.
• Against a backdrop of slowing global growth, the Canadian economy continues to grow at a solid pace.
• Economic growth in Canada is on-track to average 1.5 per cent in 2019 and 1.7 per cent in 2020—this would make Canada the second fastest growing economy in the G7 in both 2019 and 2020.
• Labour market conditions in Canada are the strongest in decades. The unemployment rate stands at its lowest levels in over forty years while the labour force participation rate of working-age Canadians reached an all-time high.
  • Over the last year, employment gains have averaged close to 40,000 per month, almost twice the pace seen in recent years.
  • While this is good news, the economy will be challenged to maintain this pace of job creation going forward.
• Along with the increasing tightness of the labour market, wage growth has picked up to its fastest pace since 2008. Together with strong employment growth, these wage gains will mean higher incomes for Canadian households.
• While the overall growth picture in Canada is sound, growth remains uneven across regions of the country, reflecting ongoing challenges facing the oil and gas sector.
• Looking ahead, the Canadian economy likely saw soft growth in the second half of 2019, as exports and business investment continue to face ongoing challenges in the energy sector and related to global trade tensions – however, growth is expected to pick up in 2020.

Issue

At the December 2, 2019 meeting of the Council of the Federation, Premiers unanimously reiterated previous calls for the escalator of the Canada Health Transfer to be increased to 5.2 per cent, “consistent with independent analysis by the Conference Board of Canada of budget pressures”.

Key points

• The Canada Health Transfer is our country’s largest federal transfer to provinces and territories. This year, our Government will provide over $40 billion dollars through the transfer to support the delivery of health care services.
• This transfer program ensures equitable funding across the country so that all Canadians, regardless of the province or territory they reside in, can receive comparable treatment.
• Since its growth rate was tied to gross domestic product in 2017, the Canada Health Transfer has grown largely in line with provincial and territorial health expenditure growth over that same period.
• In addition to the growing transfer amounts, the Government is providing the provinces and territories with $11 billion over ten years, which started in 2017-18, to support better home care and mental health initiatives.
• Our Government has also committed to providing an additional $6 billion over the coming four years to further help address gaps in our health care system, to ensure that it meets the needs of Canadian families now and into the future.

Background

The Canada Health Transfer (CHT) is the largest major federal transfer program and provides provinces and territories with long-term, predictable funding to assist them in the provision of health care. The Canada Health Transfer is a conditional block transfer, which supports the five principles of the Canada Health Act: universality, comprehensiveness, portability, accessibility and public administration.

The CHT funds are transferred on an equal per capita basis. Provincial and territorial governments are fully responsible for the design and delivery of the related programs and are accountable to their citizens and legislatures for outcomes achieved and dollars spent.

Beginning in 2017-18, the Canada Health Transfer was legislated to grow annually in line with a three-year moving average of nominal gross domestic product (GDP), with funding guaranteed to increase by at least 3 percent per year. The legislation does not have an expiry date.

Since growth was tied to GDP, the CHT has seen yearly increases of 3.8 per cent, on average, largely in line with recent provincial and territorial health expenditure growth (pending 2019-20 expenditure data). See Table 1 for historical growth rates compared to Provincial and Territorial health expenditure growth (using Canadian Institute for Health Information data).

In 2019-20, under the CHT, the Government will provide $40.4 billion to the provinces and territories. This is an increase of approximately $1.8 billion from the previous year.

In addition to the growing CHT amounts, the Government is providing the provinces and territories with an additional $11 billion over 10 years, which started in 2017-18, to support better home care and mental health initiatives. Specifically, as indicated in Budget 2017, the Government will invest $6 billion over 10 years for home care and $5 billion over 10 years to support mental health initiatives.

Background

Canada’s first-ever National Housing Strategy was introduced in 2017 and expanded in Budget 2019. The Strategy is a $55+ billion, 10-year plan that will strengthen the middle class, cut chronic homelessness in half and fuel our economy.

Budget 2019 introduced measures to reduce barriers to homeownership for first-time home buyers, boost housing supply, and increase fairness in the sector, while also maintaining the prudent safeguards that protect consumers and promote responsible home purchase decisions:

• First-Time Home Buyer Incentive: The Incentive enables homebuyers to reduce the amount of money required from an insured mortgage without increasing the amount they must save for a down payment.
• BC Expert Panel on the Future of Housing Supply and Affordability: The Expert Panel will consult with stakeholders to identify and evaluate measures to build on recent investments and initiatives to increase the supply of housing in BC.
• Home Buyers’ Plan: the Home Buyers’ Plan withdrawal limit was increased from $25,000 to $35,000 to provide first-time homebuyers with greater access to their Registered Retirement Savings Plan savings to buy a home.
• Rental Construction Financing Initiative: An additional $10 billion over nine years in financing through the Rental Construction Financing Initiative, extending the program until 2027–28. With this increase, the program will support 42,500 new units across Canada, particularly in areas of low rental supply.

The Minister of Finance and the Office of the Superintendent of Financial Institutions are monitoring and safeguarding financial stability. The impacts of the mortgage rules are reducing the number of highly indebted households, which also strengths the stability of the financial system.

Background

• The Minister of Finance is responsible for establishing the minimum qualifying mortgage rate (stress test) for insured mortgages (i.e., borrowers with a down payment of less than 20 per cent), whereas the Office of the Superintendent of Financial institutions (OSFI), sets the minimum qualifying rate (stress test) for uninsured mortgages (i.e., borrowers with a down payment of 20 per cent or greater).
• The insured mortgage stress test, set by the Minister of Finance, is the greater of the: Borrower’s Contract Rate; or the Bank of Canada 5-Year Benchmark Posted Mortgage Rate. Whereas, the stress test on uninsured mortgages, set by OSFI, is the greater of the: Borrower’s Contract Rate + 2.00 per cent; or the Bank of Canada 5-Year Benchmark Posted Mortgage Rate.
• Mortgage rules, including the insured and uninsured mortgage stress tests, have led to stronger underwriting standards and reduced household debt, as intended. They will help to mitigate the potential impacts of economic shocks, e.g., ongoing global trade wars which may produce employment shocks in Canada, in particular in economic regions most sensitive to global trade flows.
• The stress tests provide a buffer to protect both borrowers and lenders against various risks, including income loss, higher interest rates, unexpected expenses contributing to non-mortgage debt, divorce, and other unforeseen events. High household debt, however, remains elevated and is expected to diminish only gradually, as it takes time for the improved quality of new mortgages to be reflected in the overall stock of debt.
• The stress tests have helped housing affordability in key housing markets. Loosening the stress tests now would serve to stoke demand and drive up housing prices. This would reduce affordability, but also leave many borrowers across the country more exposed in the event of an economic downturn. This is particularly the case where household debt is highest.
• Household debt as a percentage of income is highest in British Columbia and Alberta, and lowest in the Atlantic Provinces collectively. Credit stress has been rising in the prairies, reflecting local economic conditions given weaker commodity prices and trade frictions. Mortgage arrears are highest in Saskatchewan and Alberta, and are above their historical averages.
• The stress tests have led to improved risk management practices at federally regulated financial institutions, with the quality of new lending improving. That is, the stress tests help to ensure that lenders are responsible in their lending practices so borrowers do not take on more debt than they can handle.
• In addition to contributing to market stability through prudential measures, the Government has taken significant actions to enhance affordability through the First Time Home Buyer Incentive, which launched September 2, 2019 and the Budget 2019 enhancement to the Home Buyer’s Plan; and to maintain and improve access to affordable housing on the supply side through the $55 billion National Housing Strategy, including the Rental Construction Financing Initiative. The Housing Supply Challenge, announced in Budget 2019 will be launched in the spring, and the federal - BC Experts Panel on Housing Supply and Affordability launched in September.

Background

Issue

Supplementary Estimates (A) 2019-2020

New

December 5, 2019

Source

Budget 2019

Synopsis

The tabling of the 2019-20 Supplementary Estimates (A) is planned for December 5, 2019 and represents a total increase of $68.0 million for the department.

Facts

Treasury Board Secretariat (TBS) chose items to be included in the fall Supplementary Estimates and some of those items belong to the Department of Canadian Heritage.

The net impact for Canadian Heritage is a Vote 1 – Operating increase of $9.5 million, a Vote 5 – Grants and Contributions increase of $58.3 million and an increase of $0.2 million in statutory items.

Background

The net increase for the department of Canadian Heritage is mainly explained by funding to support the following items:

Issue

Protocol for Agreements in Education

Reviewed

December 4, 2019

Source

n/a

Synopsis

The Protocol for Agreements for Minority-Language Education and Second-Language Instruction between the Government of Canada and provinces and territories has recently been concluded for 2019-2023. Negotiations are underway with the provinces and territories to conclude new bilateral education agreements.

Recommended response

• The Government of Canada is proud to collaborate with the provinces and territories to support education in minority- language and second-language instruction, while respecting areas of jurisdiction.
• Moreover, in March 2019, the Government of Canada announced that an additional 60 million dollars was set aside to support minority-language education until 2023.
• A new Protocol for agreements with the provinces and territories is now concluded and we will sign new bilateral education agreements in the coming months.

Background

• The “Protocol for Agreements for Minority-Language Education and Second-Language Instruction” is concluded between the Government of Canada and the provinces and territories. This multilateral framework sets the key parameters for collaboration between the two orders of government on official languages in education, and provides a mechanism through which the Government of Canada contributes to the costs incurred by the provinces and territories in the delivery of minority-language education and second-language instruction. Under the parameters of the protocol for agreements in education, each province and territory must negotiate a bilateral agreement that is tailored to its priorities to access its funding.
• The protocol for agreements in education was first implemented in 1983. Since then, it has been renegotiated every four to five years to reflect changing circumstances.
• Education is an area of provincial and territorial jurisdiction. The provincial and territorial governments are responsible for establishing plans, determining the objectives and priorities, and defining the contents for their programs in education.
• In August 2019, an agreement in principle was reached with the provincial and territorial governments for the renewal of the protocol for agreements in education for a period of four years (2019-2020 to 2022-2023). So far, it has been signed by several of the 12 signatory provinces and territories.
  • While it shares the main objectives of the Protocol in education, the Government of Quebec is not a signatory to it. A bilateral agreement is currently being negotiated with Québec.
• Pursuant to the bilateral education agreements, the Government of Canada provides
  235.5 million dollars annually to provinces and territories. This includes 148.7 million dollars per year for education in the language of the minority and 86.8 million dollars for second-language instruction.
• To this amount, an additional 15 million dollars per year was set aside from 2019-2020 to 2022-2023 to increase support for minority-language education. This additional support, announced in Budget 2019, is conditional upon provinces and territories committing to improved consultation with stakeholders and transparency in reporting.

Prepared by: Sarah Boily (819-934-9195)
Director of Communications: Annick Hector (819-994-2570)
Director General: Denis Racine (819-994-0943)
Assistant Deputy Minister: Maia Welbourne (819-934-2200)

Issue

Federal Support for Journalism

Update

December 4, 2019

Source

Various articles pertaining to recent closures and layoffs in the industry.

Synopsis

The print media industry continues to face serious challenges despite the announcements made in the 2019 budget. The most recent series of events that occurred in the industry have been Group Capital Media’s announcement of filing for bankruptcy, layoff of 15 journalists in La Presse’s newsroom and Torstar who announced that it will cease production of its StarMetro free dailies (formerly Metro) which estimates suggest that 73 workers will loose their jobs.

Recommended response

• The new tax measures are based on two fundamental principles: first, that any mechanism designed to support the news industry must be independent from the Government of Canada, and second, it must be based on the creation of original content.
• An independent group of experts was established in May for the very purpose of ensuring that the key eligibility criteria are defined by experts with thorough knowledge of journalism and print media. The group of experts published its report on July 16, 2019.
• The Government is working on the implementation of the tax measures. More details will be announced in the near future.
• The Government also launched in May 2019 the Local Journalism Initiative, with an annual budget of $10 million, to increase the journalistic coverage in underserved communities.

Background

• Budget 2019 reaffirmed and clarified three measures to support Canadian journalism that were previously announced in the 2018 Fall Economic Statement:
  • Adding registered journalism organizations as a new category of qualified donors, enabling them to receive donations and issue official donation receipts;
  • Introducing a new refundable tax credit of 25 percent on salaries or wages paid to eligible newsroom employees in qualifying Canadian journalism organizations (QCJO). Labor costs will be subject to a cap of $55,000 per employee, for a total tax credit of $13,750 per employee, per year (broadcasters and Canada Periodical Fund recipients are ineligible); this measure applies to expenditures incurred as of January 1, 2019; and
  • Introducing a new temporary, non-refundable tax credit of 15 percent for subscriptions to Canadian digital news media. Individuals will be able to claim up to $500 in costs paid toward eligible digital subscriptions, for a total tax credit of $75 annually. This measure will apply as of January 1, 2020.
• These measures are estimated to cost $595 million over five years.
• To preserve the independence of the press, an independent panel was established to recommend eligibility criteria for these measures.
• On May 22 2019, the Minister of Canadian Heritage announced that eight organizations representing Canadian newspaper editors and journalists were invited to each provide the name of a candidate to sit on the independent panel of experts mandated to make recommendations on:
  • Eligibility criteria allowing news organizations to obtain Qualified Canadian Journalism Organization (QCJO) status;
  • Criteria related to the labour tax credit;
  • The composition of the group responsible for the evaluation of the admissibility of news organizations as QCJOs.
• The panel’s report was released publicly on July 16, 2019, and the Government is working on the implementation of the tax measures.

Issue

Sport - Responding to the Calls to Action of the Truth and Reconciliation Commission of Canada

Update

December 4, 2019

Source

n/a

Synopsis

In December 2015, the Truth and Reconciliation Commission of Canada released its Final Report, which included five Calls to Action that pertain directly to sport and other actions that address specific social development outcomes to which sport can contribute.

Recommended response

• No relationship is more important to our Government than the one with Indigenous Peoples.
• Budget 2017 provided new funding in support of the Aboriginal Sport Circle to support Indigenous sport leadership and assist the provinces and territories in the delivery of culturally relevant Indigenous sport programming, as well as provide stable, ongoing funding for the North American Indigenous Games.
• Budget 2018 announced investments to expand the use of sport for social development in more than 300 Indigenous communities for the purpose of achieving outcomes in the areas of health, education, at-risk behaviour, and/or employability.

Background

• There are five Calls to Action pertaining to sport contained in the TRC Final Report.
• These sport-related Calls to Action are:
  • 87: tell the national story of Aboriginal athletes in history;
  • 88: government support of long term Aboriginal athlete development and funding of the North American Indigenous Games;
  • 89: ensure all federal sport policies and legislation are inclusive of Aboriginal peoples;
  • 90: provide access and support for Aboriginal athletes, coaches and sport officials throughout the Canadian sport system; and
  • 91: ensure Indigenous peoples are engaged and territorial protocols are respected at major international sport events hosted in Canada and abroad.
• Budget 2017 announced investments of $18.9 million over five years, starting in 2017-2018, and ongoing funding of $5.5 million every four years thereafter to support Indigenous youth and sport initiatives.
• The four-point approach of the Indigenous Youth and Sport investment captures the essence of the Calls to Action and is designed to address systemic barriers that prevent Indigenous children and youth from participating in sport by investing in the following areas 1) Indigenous Sport Leadership 2) Culturally Relevant Sport Programming 3) The North American Indigenous Games, and 4) Data and Research.
• Budget 2018 announced investments of $47.5 million over five years, and $9.5 million per year ongoing, to expand the use of sport for social development in more than 300 Indigenous communities
  • The Budget 2018 announcement does not relate directly to the Calls to Action 87-91 on Sport, but rather Calls to Action that speak to social development, notably:
  • 7: eliminate educational and employment gaps between Aboriginal and non-Aboriginal Canadians;
  • 19: identify and close the gaps in health outcomes, between Aboriginal and non-Aboriginal communities; and
  • 38: eliminate the overrepresentation of Aboriginal youth in custody.
• The announcement resulted in the May 31, 2019, launch of the Sport for Social Development in Indigenous Communities component of the Sport Support Program, delivered by the Department of Canadian Heritage (Sport Canada branch).
• The objectives of the initiative address four social outcomes:
  • Improved Health;
  • Improved Education;
  • Reduction of at-risk behaviour; and
  • Improved Employability.

Prepared by: Mike McWhinney (613-715-2237)
Director of Communications: Adèle Blanchard (819-956-9795)
Director General: Vicki Walker (819-956-8153)
Assistant Deputy Minister: Andrew Campbell (819-953-2597)

Issue

Multiculturalism Program

Update

December 4, 2019

Source

Budget 2018

Synopsis

Budget 2018 announced $23 million over two years to increase funding for the Multiculturalism Program and $9 million over three years to address the challenges faced by Black Canadian youth.

Recommended response

• Diversity remains Canada’s strength and a cornerstone of our identity, but challenges continue to exist.
• To support events and projects that help individuals and communities come together, the Government committed $23 million over two years in Budget 2018. We allocated additional funding in 2019 through “Building a Foundation for Change: Canada’s Anti-Racism Strategy 2019-2022”.
• In Budget 2018, the Government also announced $9 million over three years to address the unique challenges faced by Black Canadian youth.
• Funding is delivered through the Community Support, Multiculturalism and Anti-Racism Initiatives Program, which has funded more than 200 community-based projects to date.

Background

• In Budget 2018, the Government announced $23 million over two years, starting in 2018-19, to increase funding for the Multiculturalism Program administered by Canadian Heritage (PCH). Funding was also committed to conduct cross-country engagement to inform a new federal anti-racism approach, bringing together experts, community organizations, citizens and interfaith leaders to find new ways to collaborate and combat discrimination. Cross-country engagement ended in early March 2019.
• Budget 2018 also committed $9 million over three years to PCH and $10 million over five years to the Public Health Agency to address the challenges faced by Black Canadians. The $9 million administered by PCH will be used to fund community supports for Black Canadian youth, such as after-school programs, scholarships to post-secondary education, and community programs. It will also enable funding for engagement activities, education and awareness initiatives, research on data gaps, and the development of a robust performance measurement framework that could inform a potential future federal anti-racism approach.
• Following Budget 2018, multiculturalism funding is being delivered through the Community Support, Multiculturalism, and Anti-Racism Initiatives (CSMARI) Program at PCH, which supports initiatives promoting intercultural understanding and equal opportunity for individuals of all origins.
• CSMARI funding is delivered through three streams:
  • Events, which supports community-based events that create concrete opportunities for interaction among cultural, faith or ethnic communities;
  • Projects, which provides funding for community development, anti-racism initiatives, and engagement projects that promote diversity and inclusion; and
  • Community Capacity Building, which will contribute to the recipient’s ability to promote diversity and inclusion.
• A separate initiative, Community Support for Black Canadian Youth, provides funding for projects addressing the unique challenges faced by Black Canadian youth.
• Through the 2018 CSMARI intake, the Projects component provided approximately $13 million in funding to support 93 initiatives (239 applications were received); the Community Capacity Building component allocated approximately $4.9 million to 78 projects (169 applications were received); while the Black Canadian Youth initiative provided more than $8 million to 58 projects (161 applications were received). The Program also supported 260 events so far this year (2019-20) as compared to 291 last year. 
• Building on commitments made in Budget 2018, Budget 2019 provided $45 million in funding to the Multiculturalism Program, beginning in 2019-20, for Building a Foundation for Change: Canada’s Anti-Racism Strategy 2019-2022, which will aim to counter racism in its various forms, with a strong focus on community-based projects. The Strategy has been designed to support the following three principles: 1) Demonstrating Federal Leadership; 2) Empowering Communities; 3) Building Awareness and Changing Attitudes. At the core of this Strategy is the new Anti-Racism Secretariat that will demonstrate leadership in overseeing a coherent whole-of-government approach on combating racism and discrimination, ensuring comprehensive and coordinated actions with measurable impact, and fostering continuing dialogue with provinces, territories and our diverse communities.
• Since the official launch of the Strategy in June 2019, PCH has begun to implement the key components of the Strategy, including the establishment of the Federal Anti-Racism Secretariat, mechanisms to deliver new community-based projects and programming, and approaches to build awareness through improved data and evidence.
• Created through “Building a Foundation for Change: Canada’s Anti-Racism Strategy 2019-2022”, the Anti-Racism Action Program (ARAP) is an important means by which the Government of Canada implements the Strategy by addressing barriers to employment, justice and social participation among Indigenous Peoples, racialized communities and religious minorities.

Prepared by: Amanda Sharaf (819-997-6998)
Director of Communications: Annick Hector (819-994-2570)
Director or Director General: Lisa-Marie Inman (819-934-0721)
Assistant Deputy Minister or Regional Executive Director: Charles Slowey (819-997-2832)

Issue

Modernization of Grants and Contributions

New

December 5, 2019

Source

n/a

Synopsis

The Grants and Contributions Modernization Project received total funding of $21M from Management Reserve in 2016, following a Treasury Board submission. The department plans to seek carry-forward for the remaining of the fund, $6,383,746, for fiscal years 2020-21 and 2021-22, to complete the project.

Recommended response

• Canadian Heritage has improved its service to Canadians by streamlining its internal processes and reducing processing times of applications to funding programs.
• The Department has tested an online application system and over 1,000 applications are now received each year. Annually, the Department delivers close to $1.2 billion in Grants and Contributions funding via 30 programs.
• The final phase of this project is now underway. The Department will deliver an online portal for Canadians to apply for funding and track the status of their applications.
• The revised timeline extends to March 2022, while the funding level for the project remains the same ($21 million in total).

Background

• Annually, the Department of Canadian Heritage (PCH) delivers approximately $1.2 billion in Grants and Contributions (Gs&Cs) funding to 30 programs (more than 90 program components), which are designed to support and promote Canadian culture, arts, heritage, official languages, citizenship, Indigenous languages and culture, youth, and sports initiatives. The funding delivered by PCH programs touches millions of Canadians and visitors to Canada each year.
• In accordance with the Government of Canada’s (GC’s) efforts to improve the delivery of Gs&Cs programs across the public sector, the modernization of PCH’s Gs&Cs was launched in 2010, comprising a number of multi-year, horizontal initiatives designed to ensure that PCH programs operate sustainably, efficiently, responsibly and effectively. In the first phase of its plan, it put all programs on a common workflow based on a common GC business reference model for grants and contributions. Using that model, it developed an innovative, risk-based approach to assessment, and implemented that innovation through modest extensions to its legacy technology application for processing grants and contributions. The risk-based workflow improved service delivery efficiency and enabled PCH to revisit, publish and report on service standards.
• Phase II focused on the modernization of the client interface through the development of an online portal and enablement of an online service delivery channel. Three programs (Canada Arts Training Fund (CATF), Canada Book Fund (CBF) and Building Communities Through Arts and Heritage (BCAH) were successfully onboarded to this platform allowing applicants to apply online for grants and contributions through the online portal (CHOS - Canada Heritage Online System).
• The third phase of the modernization effort started in January 2017, named the Grants and Contribution Modernization Project (GCMP). In 2016-17 and 2017-18 the project focused on business process re-engineering, user experience research, and the development of a risk-based model that would facilitate the modernization of the business workflow and standardize business processes along with data requirements.
• The Department is taking a user-centric and agile approach for the final phase of the project, allowing it to focus on client experience while building a digital platform that houses both legacy and new systems and to transition all funding programs over time.

Prepared by: Erica Ren (819-994-8217)
Director of Communications: France Langlois (819-997-3011)
Director /Director General: Erica Ren (819-994-8217)
Assistant Deputy Minister or Regional Executive Director: David Dendooven (819-994-3046)

Issue

TV5 Multilateral Partnership and Creation of a Francophone Digital Platform

Update

December 4, 2019

Source

Various

Synopsis

The Government of Canada is one of the five funding governments of the TV5 Multilateral partnership. In 2018 and 2019, Canada has been chairman of TV5’s work. On November 21, 2018, in the Fall Economic Statement, the Government of Canada announced its investment of $14.6 million over five years, beginning in 2019-2020, for the creation of a francophone digital platform.

Recommended response

• TV5 provides francophone Canadian creators, artists and producers with a privileged showcase on the international market.
• As President of TV5’s work in 2018 and 2019, Canada used this forum to showcase Canadian Francophonie.
• In order to protect and promote the French language internationally, we must ensure the presence of strong francophone voices in cyberspace.
• Our Government supports the creation of a francophone digital platform that brings together public broadcast of TV5MONDE with a new financial investment.
• This past fall, in providing the $6 million planned towards this new francophone digital platform, our Government has fulfilled its commitment.

Background

• The Charte de la Francophonie designates TV5 as a direct and recognized operator of the Francophonie Summit.
• TV5 was created in 1984 out of a partnership between France, Switzerland and the Wallonia-Brussels Federation (WBF). Canada and Quebec joined the Partnership in 1986. TV5 is the largest French-language television network in the world managed by two channel operators: TV5MONDE and TV5 Québec Canada (TV5QC).
• TV5MONDE receives financing from five funding governments based on a formula of ninth parts: 6/9 France, 1/9 WBF, 1/9 Switzerland, and 1/9 Canada (60 percent) and Quebec (40 percent) gathered. Current financing is about 100 million euros (approximately $155 million) out of a total budget of 110 million euros (approximately $165 million). In 2018, Canada paid 5,054,200 euros (approximately $7,834,010), while Quebec paid 3,302,800 euros (approximately $5,119,340).
• TV5QC receives financing from the governments of Canada and Quebec governed by a rule of 60 percent (Canada) and 40 percent (Quebec). Current funding from both governments is over $2.3 million, or $1,380,000 from Canada and $920,000 from Quebec, out of a total budget of more than $16.7 million. Managed by TV5QC’s management team, UNIS does not receive funding from governments.
• The two governments also contribute $1,460,000 (Canada) and $880,000 (Quebec) respectively for the release of the rights to Canadian programs broadcast on the various TV5MONDE signals and its digital platforms. For 2019, these two governments will contribute an additional one-time sum of $150,000 from Canada and $100,000 from Quebec.
• Since January 2018, Canada has been chairing TV5’s work and will do so until the end of 2019. This responsibility is assumed in turn by each of the partner governments. It is reflected in the hosting of the annual meetings of senior officials responsible for TV5 and possibly a ministerial conference.
• The next meeting of senior officials responsible for TV5 will take place on December 2 and 3, 2019 in Banff at which Canada will hand over the responsibility of the presidency to France for 2020 and 2021.
• In October 2018, during the Francophonie Summit held in Erevan (Armenia), the Canadian Prime Minister and the President of France expressed their desire to work with TV5 partners towards the creation of a new world-wide digital francophone platform as a concrete step towards protecting and promoting the French-language on the Internet.
• On November 21, 2018, during the fall Economic update, the Government of Canada announced an investment of $14.6 million over five years beginning in 2019-2020 towards the creation of a new francophone digital platform bringing together TV5MONDE’s public broadcasters.
• Canada's goals in supporting the development of the platform is aimed to increase the presence of French-language content on-line, as well as to offer increased visibility of Canadian content and increased distribution opportunities for Canadian creators and producers. In addition, it will increase “discoverability” and ease access to French-language and Canadian programs on the world stage.
• The launch of the francophone digital platform "TV5MONDEplus" is expected for the foreign market in September 2020. Although the platform will not be available in Canada, its content will be partially available through other means, such as TV5QC. These restrictions are intended to avoid competition with Canadian broadcasters regarding Canadian programming.
• TV5 NUMÉRIQUE is subsidiary of TV5QC which was created in the fall of 2019 for a five-year term specifically to administer the Canadian investment of Francophone digital platform. The first meeting of its Annual General Meeting of Members (AGM) was held on October 21 and its first Board of directors was held on October 22, 2019.
• In fall 2019, the Government of Canada fulfilled its commitment regarding this new francophone digital platform by providing to TV5 NUMÉRIQUE $6 million: $1,752,084 (September 5, 2019) and $4,247,916 (November 27, 2019).

Prepared by: Lucie Lépine (819-953-2409)
Director of Communications: Roxane Marchand (819-934-1786)
Director /Director General: Isabelle Ringuet (819-934-0280)
Senior Assistant Deputy Minister: Jean-Stéphen Piché (819-997-3009)

Issue

Broadcasting Act

Update

November 21, 2019

Source

N/A

Synopsis

On June 5, 2018, the departments of Canadian Heritage and Innovation, Science and Economic Development announced the launch of the review of the Broadcasting Act, the Telecommunications Act, and the Radiocommunication Act. The Broadcasting and Telecommunications Legislative Review Panel has completed its consultations and is expected to publish its final report by the end of January 2020.

Recommended response

• The Government is committed to supporting a strong, competitive broadcasting and media sector in Canada.
• We are seized with the challenges currently faced by this sector.
• The review of the Broadcasting Act is how we will ensure our Canadian companies can compete in a global market. The panel responsible for this review will complete their work by the end of January 2020.

Background

• New technology, like streaming services, has changed the way that Canadians discover, access, and consume content. Now more than ever, Canadians go online. To keep up with these changes, our legislative framework needs to be modernized so that Canadian creators, consumers and broadcasters can adapt and thrive in a changing environment.
• As committed to in Budget 2017, the Minister of Innovation, Science and Economic Development and the Minister of Canadian Heritage, announced on June 5, 2018, the launch of a review of the Broadcasting Act, the Telecommunications Act and the Radiocommunication Act.
• The review is looking at ways to update and modernize the legislative framework in a balanced way that takes into account the realities of Canadian consumers, creators, and broadcasters. The review is also addressing how to best promote competition and affordability for internet and mobile services.
• It is examining how to best support the creation, production and distribution of Canadian content in both French and English, and is focusing on updating and modernizing the broadcasting system by exploring how all players are reflected within it and can contribute to it.
• As a response to a unanimously passed motion in the House of Commons, the review is guided by the principle of net neutrality. It explores opportunities to further enshrine this principle in all internet services.
• The review is being led by a panel of external experts including Janet Yale (Chair), Peter S. Grant, Hank Intven (until June 28, 2019), Marina Pavlovic, Monique Simard, Monica Song and Pierre Trudel.
• On September 25, 2018, the panel launched a written consultation process with a deadline of January 11, 2019. On June 26, 2019, the review panel released its What We Heard Report which summarizes the input received during the consultation period. The panel’s final report and recommendations are expected by January 31, 2020.
• Many of the challenges currently facing the broadcasting sector are described in the Canadian Radio-television and Telecommunications Commission’s report entitled Harnessing Change: The Future of Programming Distribution in Canada published on May 31, 2018.
• The report confirms, among other things, that video and audio content is a significant majority of the content flowing over Canada’s broadband networks. It also notes that traditional services like conventional TV still play an important role, but that role is declining. As a result, if the status quo is maintained, traditional support mechanisms for the production of Canadian programming may eventually be unable to support the production or discovery of Canadian programming, including French-language programming and programming by and for Indigenous peoples and official language minority communities.
• The report argues that future legislative, regulatory and policy approaches should focus on production and promotion; recognizes the social and cultural responsibilities of operating in Canada; and, be nimble, innovative and adaptable to change. It sets out policy options that the CRTC argues could help ensure a continued vibrant domestic market, including:
  • replacing prescriptive licensing with comprehensive binding service agreements (that could include incentives) for all video and audio services offered in Canada and drawing revenue from Canadians; and
  • a restructured funding strategy that would aim to keep the amount of contributions to the Canadian broadcasting system at about the same overall amount, but would come from an expanded set of players – including television service providers, radio stations, mobile wireless telecommunications companies and Internet service providers.
• As intended, the report will feed into the Government’s review of the Broadcasting Act and Telecommunications Act.

Prepared by: Miska Têtu (819-997-7349)
Communications: Roxane Marchand (819-934-1786)
Director/Director General: Drew Olsen (819-934-2825) / Owen Ripley (819-934-1507)
Assistant Deputy Minister: Jean-Stéphen Piché (819-997-3009)

New OR Update

November 21, 2019

Source

Various articles

Synopsis

Some stakeholders have expressed concerns that CBC/Radio-Canada competes with the private sector for advertising revenues, and recommend that the Government should impose stricter guidelines on CBC/Radio‑Canada with regard to its mandate and focus.

On November 14, 2019, CBC/Radio-Canada announced workforce reductions of approximately 30 positions, most of them in the Corporation’s newsroom in Toronto. On November 20, 2019, CBC/Radio-Canada announced that it is reversing its decision to consolidate local radio newscasts in Yukon, Northwest Territories and Nunavut, in light of backlash from staff, listeners and politicians, including the Yukon Premier and Finance Minister.

Recommended response

• As the national public broadcaster, CBC/Radio-Canada plays a vital role in providing access to programs and services in the digital era. That is why in Budget 2016 the Government reinvested $675 million in CBC/Radio-Canada over five years, and $150 million per year on an ongoing basis.
  
  The review of the Broadcasting Act is how we will position CBC/Radio-Canada to be a leading partner among Canada’s cultural and news organizations.

Background

• CBC/Radio-Canada is a Crown corporation that operates at arm’s length from the Government, but it reports annually to Parliament through the Minister of Canadian Heritage. The Treasury Board approves the capital budget annually, and the Auditor General of Canada audits the financial statements in CBC/Radio-Canada’s Annual Report.
• CBC/Radio-Canada has two revenue streams: parliamentary appropriations and self-generated revenues, mainly from advertising and subscriptions (to discretionary services, for example). CBC/Radio-Canada received $1.21 billion in parliamentary appropriations for the year-ending March 31, 2019. This figure includes $150 million additional annual funding that was announced in Budget 2016 to support investments in enhanced services including digital Canadian content, and will be provided on an ongoing basis.  The Corporation also earned $490 million in revenue, including $249 million from advertising.  
• The Canadian broadcasting system is undergoing structural changes, which affect most significantly the advertising market, one of television’s major revenue sources. In response to this shift in the ecosystem, the Corporation announced in 2014, in its five-year strategic plan, A space for us all, that it was reducing its workforce, real estate footprint, local programming, in house production and seeking to maximize self-generated revenues.
• In Budget 2016, the Government reinvested $675 million in CBC/Radio-Canada over five years, and $150 million per year on an ongoing basis, to enable the CBC/Radio-Canada to create  Canadian content which will be more digital, local and ambitious in scope.”
• On May 22, 2019, CBC/Radio-Canada shared its three-year strategic vision, Your Stories, Taken to Heart. CBC/Radio-Canada continues to transform into a modern national public broadcaster that Canadians value by focusing on three themes: 1. strengthening trust in news and democracy; 2. building a lifelong connection with all Canadians; and 3. promoting and supporting Canadian culture and values at home and around the world.
• On November 14, 2019, CBC/Radio-Canada announced the elimination of approximately 30 positions, most of which are situated in the Corporation’s newsroom in Toronto. 
• On November 20, 2019, CBC/Radio-Canada announced that it is reversing its decision to consolidate local radio newscasts in Yukon, Northwest Territories and Nunavut, in light of backlash from staff, listeners and politicians, including the Yukon Premier and Finance Minister. The Corporation also indicated that is it committed to getting out into more northern communities.

Prepared by: Jennifer Hughes Doucet (819-934-7147)
Director of Communications: Roxane Marchand (819-934-1786)
Director or Director General: Owen Ripley (819-934-1507)
Assistant Deputy Minister: Jean-Stéphen Piché (819-997-3009)

Update

November 21, 2019

Source

Various

Synopsis

The Parliamentary review of the Copyright Act was launched in March 2018 under the leadership of the Standing Committee of Industry, Science and Technology. To support the review, the Standing Committee on Canadian Heritage conducted a study on remuneration models for artists and creative industries.

Recommended response

• We would like to thank the members of the Industry, Science and Technology Committee in the last Parliament for their review of the Copyright Act and their report.
• We would equally like to thank the members of the Heritage Committee in the last Parliament for their work on remuneration models for artists and creative industries and their report entitled Shifting Paradigms.
• The Government has been reviewing these recommendations, and will continue to do so with a view to ensuring that Canada has a healthy copyright marketplace in which creators and rights holders can reap the full rewards of their work and investments in Canada’s creative marketplace, and where Canadians have access to a variety of content.

Background

Update

November 21, 2019

Source

n/a

Synopsis

The Government acknowledges that there are no Indigenous Languages that are considered to be safe in Canada, and three-quarters of Indigenous languages in Canada are endangered.  The Government has committed to ensuring that the Indigenous Languages Act is fully implemented in order to preserve, promote, and revitalize Indigenous languages in Canada and committed to move forward with long term, predictable, and sufficient funding to support the full Implementation of the Act.

Recommended response

• On June 21, 2019, the Indigenous Languages Act received Royal Assent. This legislation is historic. It recognizes Indigenous peoples’ language rights and outlines how we will support them.
• Budget 2019 announced an investment of $333.7 million for five years with $115.7 million ongoing to support the implementation of the Act.
• We are looking forward to collaborating with Indigenous communities across the country on the important work needed to implement the legislation.

Background

• On June 21, 2019, the Indigenous Languages Act received Royal Assent and on August 29, 2019 parts of the Act, essentially other than the parts of the legislation dealing with the operation of the Office of the Indigenous Languages Commissioner, came into effect.  The balance of the Act will come into force on the earlier of the date the Commissioner is appointed or October 1, 2020.
• Budget 2019 provided $333.7 million over 5 years and $115.7 million on-going to support the implementation of the Act.
• The Assembly of First Nation has expressed its concern that the Budget 2019 funding does not meet the commitment to “adequate” funding expressed in the Act and wishes to discuss the Government’s approach to funding for Indigenous languages.
• The Act supports the meaningful implementation of Calls to Action 13, 14 and 15 of the Truth and Reconciliation Commission of Canada, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the federal government’s commitment to a nation-to-nation, government-to-government, or Inuit-Crown relationship. In particular, the introduced legislation recognizes and supports all Indigenous languages in Canada and contains mechanisms to:
  • establish measures for the provision of long-term, sustainable funding of Indigenous languages;
  • advance the objectives of the UNDRIP;
  • support the reclamation, revitalization strengthening and maintenance of Indigenous languages in Canada;
  • support and promote the use of Indigenous languages;
  • work with provinces, territories, Indigenous representative organizations and Indigenous governments to create effective support for Indigenous languages in Canada through a variety of mechanisms;
  • facilitate meaningful opportunities for Indigenous governments, Indigenous governing bodies and other Indigenous organizations to collaborate on policy development relating to the Act; and
  • establish an Office of the Commissioner of Indigenous Languages.
• The Act also requires that the Minister consult with a wide variety of Indigenous governments, organizations and governing bodies on adequate, sustainable and long-term funding to support Indigenous languages as well as on the appointment of the Indigenous Languages Commissioner.
• Canadian Heritage officials have formed a Joint Implementation Steering Committee with the Assembly of First Nations, the Inuit Tapiriit Kanatami and the Métis National Council to discuss implementation of the Act.  There has also been outreach to other Indigenous organizations such as the National Association of Friendship Centres and the First Nations Confederacy of Cultural and Education Centres to seek their perspectives.  In addition, Canadian Heritage is working with officials at Crown-Indigenous Relations for advice on a respectful approach to seeking the views of self−governing communities and modern treaty signatories.

Prepared by: Stephen Gagnon (819-934-2907)
Director of Communications: Annick Hector (819-994-2570)
Director or Director General: Christopher McDonell (418-951-5529)
Assistant Deputy Minister: Charles Slowey (819-997-2832)

Update

November 21, 2019

Source

Various

Synopsis

Various stakeholders have called for the Government to apply its sales tax rules to foreign-based digital service providers that operate in Canada. Other stakeholders have called for levelling of the playing field where foreign-based digital service providers that operate in Canada would need to contribute to the broadcasting system in an appropriate, equitable manner. At the establishment of their Canadian production house, Netflix committed to invest at least $500 million CAD over the next five years in original productions in Canada.

Recommended response

• Our Government is committed to creating a fair and equitable broadcasting system.
• The review of the Broadcasting Act is almost complete. Determining how all players can contribute to support the creation, production and distribution of Canadian content in both official languages is a priority for our Government.

Background

• Netflix is a subscription-based video distribution service that provides content that can be viewed on a wide variety of devices connected to the Internet. Netflix launched in Canada in September 2010 and is available to all Canadians with a broadband connection for a monthly subscription fee.
• The CRTC is responsible for regulating the broadcasting system and requires that programming services (e.g., CTV, TVA, RDI) contribute to Canadian programming through quotas and by requiring expenditures on Canadian programming. Further, broadcasting distribution companies (e.g., Vidéotron) are required to contribute five percent of their broadcasting revenues to Canadian programming, including production funds, such as the Canada Media Fund.
• In Canada, as a result of the CRTC’s Exemption Order for Digital Media Broadcasting Undertakings, companies such as Netflix are not required to contribute to Canadian programming either by quotas, expenditure requirements, or revenue contributions.
• Netflix and other foreign-based digital service providers that operate in Canada are not required to collect federal or provincial sales taxes (with the exception of the provinces of Québec and Saskatchewan) on monthly subscriptions for Canadian consumers. Currently, it falls to consumers to fill out a form and remit the tax. However, in reality, few do so. Netflix has said that they would comply with any changes in federal legislation, as they have provincially.
• The spring 2019 report from the Auditor General of Canada on the Taxation of E-Commerce found that the Government of Canada lost $169 million in potential GST revenues in 2017, on foreign digital products and services.
• Canadian private broadcasters complain that they do not compete on a level playing field with OTT platforms such as Netflix both because they charge sales tax and because of the regulatory requirements for financial contributions to Canadian programming noted above.
• Taxation policy falls within the purview of the Minister of Finance.
• In June 2018, the Government asked a panel of experts to review the Broadcasting and Telecommunications Acts. It is expected that the Panel’s Final Report, to be published in January 2020, will include recommendations to suggest how over-the-top (OTT) services could support Canadian content and contribute to the objectives of the Broadcasting Act.
• In its 30-page submission to the Panel, Netflix challenged its categorization as a “broadcaster”, submitting that it does not consider online services to be broadcasters, nor does it support the regulation of online services as broadcasters.
• On September 28, 2017, the Minister of Canadian Heritage announced that she had approved the establishment of a new Canadian business in the film and television production sector, Netflix Canada, following a review under the Investment Canada Act. Key undertakings offered by Netflix include: an investment of at least $500 million Canadian over the next five years in original productions in Canada, a CAD $25 million investment to support Canadian French-language content on the Netflix platform through a market development strategy for Canada, and promoting Canadian films and television shows on Netflix’s global platform.
• In September 2019, Netflix released an update on their production investment activities in Canada stating that it had “exceeded the minimum commitment of $500 million.”

Prepared by: Miska Têtu (819-997-7349)
Director of Communications: Roxane Marchand (819-934-1786)
Director/Director General: Drew Olsen (819-934-2825) / Owen Ripley (819-934-1507)
Assistant Deputy Minister: Jean-Stéphen Piché (819-997-3009)

Update

November 21, 2019

Source

Women and Girls in Sport, Report of the Standing Committee on Canadian Heritage, September 2017
Women in Sport—Fueling a Lifetime of Participation, Dairy Farmers of Canada, March 2016
Actively Engaged: A Policy on Sport for Women and Girls, Canadian Heritage, 2009

Synopsis

Canadian women and girls have a rich history of participation and leadership in sport; however, they continue to face barriers to full participation and representation in the Canadian sport system, at all levels and in all capacities.

Recommended response

• Our government is committed to creating an environment where women and girls can engage in sport at all ages and all levels.
• Budget 2018 dedicated $30 million to increase the representation and participation of women and girls in sport.
• A Gender Equity Secretariat has been created to deliver a Gender Equity Strategy and support initiatives aimed at attracting and retaining women and girls in sport.

Background

• The Gender Equity Secretariat has been tasked with developing, implementing, and monitoring a Gender Equity Strategy.
• Through the Secretariat, Sport Canada will be supporting, administering and monitoring existing and emerging gender equity initiatives and programs aimed at attracting and retaining women and girls in sport, as well as initiatives to introduce women and girls to sport at all levels, including as athletes, coaches, officials, and leaders.

Participation of Women and Girls in Sport

• On September 27, 2017, the Committee tabled its seventh report which contains
  16 recommendations for the Government of Canada’s actions grouped into six themes: 1) overview of the legal and policy framework of Sport Canada; 2) sport participation of women and girls in Canada; 3) issues relating to female coaches and referees; 4) women as leaders in sport; 5) the media and women in sport; and 6) sexual harassment and transgender inclusion in sport.
• According to the research, 84% of Canadian women are missing out on the benefits of sport (e.g. 41% of girls between the ages of 3‑17 and 84% of adult women do not participate in sport).
• Other key findings showed that only 24% of all Athletic Director positions and 17% of all head coaching spots in Canadian Interuniversity Sport (CIS) are held by females. Moreover, among national and multi-sport organizations, only 38% of senior staff and 29% of board members are female. A review of programming data from Canada’s primary national sports networks concluded that of approximately 35,000 hours in programming in 2014, only 4% went towards the coverage of women’s sports, with over half of that percentage due to women’s professional tennis coverage and the Sochi Olympics. Only 5% of the total of top national print media sports coverage researched was dedicated to women.
• The Working Group on Gender Equity in Sport, comprised of 12 expert members, met four times in 2018. Members of the Working Group discussed challenges and proposed solutions to eliminate barriers and increase participation, and submitted a final report with their recommendations in December 2018.
• Sport Canada officials contributed to the Federal-Provincial/Territorial Work Group on Women and Girls in Sport that was established to provide recommendations on initiatives aimed at increasing the participation of women and girls in all facets of sport. Three years of work by this group culminated with Federal-Provincial/Territorial Ministers responsible for sport, physical activity and recreation accepting the majority of the recommendations contained in the work group’s Recommendation Report at their recent meeting in Red Deer, Alberta, on February 14 and 15, 2019.
• On February 22, 2019, Sport Canada launched the Innovation Initiative, which will provide funding to eligible organizations for testing innovative approaches to encourage women and girls to participate and remain in sport.
• Through Budget 2018, the Government is setting a target to achieve gender equality in sport at every level by 2035, and proposes to provide an initial $30 million over three years to support data and research, and innovative practices to promote women’s and girls’ participation in sport, and provide support to national sports organizations to promote the greater inclusion of women and girls in all facets of sport.
• Using funds from the Budget 2018 announcement, the Canadian Association for the Advancement of Women in Sport and Physical Activity (CAAWS) is receiving $3 million over four years for multiple initiatives aimed at increasing the participation of women and girls in sport and increasing women in leadership positions such as coaches, officials, and sport organization leaders. These initiatives include: gender-based analysis plus training; a gender equity audit service; gender equity action plans; a system-wide report card; scaled-up Women and Leadership and Female Coach Mentorship programs; an empathy-based campaign; and a scaled-up Women in Sport Encouragement Fund.

Prepared by: Craig Andreas (819-953-9667)
Director of Communications: Kariane Lusignan, 819-953-7753
Director or Director General: Vicki Walker, 819-956-8153
Assistant Deputy Minister: Andrew Campbell, 819-953-2597)

Update

November 21, 2019

Source

Various

Synopsis

The Government of Canada continues to assume a leadership role to ensure participants at all levels of the system have access to sport in an environment free from harassment, abuse, discrimination and maltreatment.

Recommended response

• The safety and security of athletes, coaches, and officials is our top priority.
• The government has sent clear messages to federally funded sport organizations that they must implement comprehensive measures to create a workplace free from harassment, abuse or discrimination of any kind.
• We announced new funding to enable sport organizations to implement those measures, including a safe place for the disclosure of cases, as requested by athletes.

Background

• Budget 2019 provides $30 million over five years, starting in
  2019–20, with $6 million per year ongoing, to enable Canadian sports organizations to promote accessible, ethical, equitable and safe sports.
• On June 19, 2018, the following measures were announced to enhance the existing policy framework in these areas: Federally funded sport organizations must:
• Take all necessary measures to create a workplace free from harassment, abuse or discrimination of any kind.
• Immediately disclose any incident of harassment, abuse or discrimination that could compromise the project or programming to the Minister of Sport.
• Make provisions—within their governance framework—for access to an independent third party to address harassment and abuse cases.
• Provide mandatory training on harassment and abuse to their members by April 1, 2020.
• On February 14 and 15, 2019, during the meeting of federal, provincial, and territorial Ministers responsible for sport, physical activity, and recreation, ministers endorsed the Red Deer Declaration for the Prevention of Harassment, Abuse and Discrimination in Sport. As part of this declaration, Ministers will develop a collaborative approach to increase awareness, prevention, identifying and reporting, and monitoring to address harassment, abuse, and discrimination in sport. Ministers also agreed to make "safety and integrity in sport" a standing agenda item for future meetings.
• In March 2019, the Sport Dispute Resolution Centre of Canada (SDRCC) launched of a pilot project for a helpline for referral and for an investigation unit to extend its expertise and services to offer an independent third-party service to investigate harassment and abuse complaints, directed by a National Sport Organization (NSO), a Multisport Service Organization (MSO) or a Canadian Sport Centre (CSC). The SDRCC will evaluate the pilot-projects in April 2020.
• Sport Canada supported the Coaching Association of Canada (CAC) to host a series of nationwide consultations on the development of the Universal Code of Conduct (UCC) to address harassment and abuse in Canadian sport.
• The resulting draft Components of a UCC , which includes general principles, definitions of misconduct, prohibited behaviours, and an approach to sanctions has been endorsed in-principle by the majority of national-level sport organization. The final version of the UCC will be available soon and could be shared at the SPAR Ministers Conference in Whitehorse in March 2020.
• Sport Canada has stated its commitment to engage the national sport community in a process to identify the most appropriate and effective approach to implementing the UCC at the national level once the document is completed.

Prepared by: Jocelyn East, 819-953-5184
Director of Communications: Kariane Lusignan, 819-953-7753
Director or Director General: Vicki Walker, 819-956-8153
Assistant Deputy Minister: Andrew Campbell, 819-953-2597

Update

November 20, 2019

Source

Budget 2019

Synopsis

Barriers to full and equitable participation in the economic, social and political spheres still exist in Canada. There is also a concern that Canada is seeing a rise in hate groups, hate-motivated crime, and racist and discriminatory sentiments. The Government of Canada introduced, in June 2019, Building a Foundation for Change: Canada’s Anti-Racism Strategy 2019-2022, with $45 million over three years in new investments to address racism and discrimination.

Recommended response

• Canada’s commitment to diversity and inclusion, while tackling racism and discrimination, is unwavering.
• Budget 2019 allocated $45 million over three years to support a new anti-racism strategy. The purpose of the strategy is to find ways to counter racism in its various forms, with a strong focus on community-based projects. 
• The new Anti-Racism Secretariat, established as part the Strategy, will support other government departments as they work towards addressing issues of racism and discrimination. It will engage and work with provinces and territories, non−government partners, Indigenous Peoples and communities to identify and develop further areas for action.

Background

• Canada's population has become more diverse as the proportion of Canadians who report being foreign-born, non-Christian, or gay, lesbian, bisexual or in a same-sex relationship continues to grow. For example, one-fifth of Canada's population was foreign-born in 2016 and, by 2036, between 31 and 36percent of the population will belong to a visible minority group.
• Statistics and research confirm that racism and discrimination continue to exist in Canadian society. On July 22, 2019, Statistics Canada released its annual police-reported hate crime statistics for 2018.
• For the first time in five years, the number of police-reported hate crimes in Canada decreased from 2,073 in 2017 to 1,798 in 2018 (a 13 percent reduction). Despite this decline, the number of hate crimes in 2018 remains higher than any other year since 2009 (with the exception of 2017). Hate crimes motivated by race or ethnicity accounted for 43 percent of all hate crimes in Canada in 2018 (780 incidents), remaining consistent with the proportion reported in 2017 (42 percent).
• Building on commitments made in Budget 2018, Budget 2019 provided $45 million in funding to the Multiculturalism Program, beginning in 2019-20, for Building a Foundation for Change: Canada’s Anti−Racism Strategy 2019-2022, which will aim to counter racism in its various forms, with a strong focus on community-based projects. The Strategy has been designed to support the following three principles:
• Demonstrating Federal Leadership: The Government of Canada must take a leading role in addressing systemic racism and discrimination, establishing a new Anti-Racism Secretariat to lead federal institutions to identify and coordinate responsive initiatives, identify gaps, assist in developing new initiatives, and consider the impacts of new and existing policies, services and programs on communities and Indigenous Peoples. The Secretariat will also report on whole-of-government outcomes, and continue to engage and work with provinces and territories, non-government partners, Indigenous Peoples and communities to identify and develop further areas for action;
• Empowering Communities: The Government of Canada must support racialized communities, religious minorities and Indigenous Peoples on the ground who have expertise in addressing various forms of racism and discrimination. The new Anti-Racism Action Program is one important means by which the Government is implementing the Strategy by delivering community funding to address barriers to employment, justice and social participation among Indigenous Peoples, racialized communities and religious minorities; and
• Building Awareness and Changing Attitudes: Public education and awareness are essential to the elimination of racial discrimination and inequality. The Strategy will support a National Public Education and Awareness Campaign based on regional and demographic needs that will be informed and developed with impacted communities and Indigenous Peoples. Its goal will be to increase public awareness and understanding, in both urban and rural areas, of the historical roots of racism and its different impacts on Indigenous Peoples, as well as racialized and religious minority communities.
• Since the official launch of the Strategy in June 2019, Canadian Heritage (PCH) has begun to implement the key components of the Strategy, including the establishment of the Federal Anti−Racism Secretariat, mechanisms to deliver new community-based projects and programming, and approaches to build awareness through improved data and evidence. 

Prepared by: Amanda Sharaf (819-997-6998)
Director of Communications: Annick Hector (819-994-2570)
Director or Director General: Lisa-Marie Inman (819-934-0721)
Assistant Deputy Minister: Charles Slowey (819-997-2832)

Update

November 22, 2019

Source

n/a

Synopsis

On June 6, 2018, the Prime Minister committed to modernizing the Official Languages Act. Consultations were held and a review is underway towards modernizing the Official Languages Act.

Recommended response

• The Government of Canada is committed to modernizing the Official Languages Act, so that it may continue to serve Canadians well.
• Over the course of the year, we have gathered the views of many Canadians on line as well as at round tables, forums and a major symposium. We have also taken note of the work of the two parliamentary committees on official languages and of the Commissioner of Official Languages on modernization.
• We are working hard to prepare for the next steps in the modernization of the Official Languages Act.
  

Background

• On June 6, 2018, the Prime Minister stated that “the Official Languages Act is important to our party and also to our country. Protecting Canada’s linguistic minorities is at the core of who we are as a country. […]. I can confirm that we are preparing to modernize the Official Languages Act. We will work with all Canadians to ensure we get it right.”
• In 2019, which marks the 50th anniversary of the Official Languages Act, a public engagement exercise was conducted to gather the views of the population on its modernization. Canadians expressed their views by email, online or in person at one of 12 round tables and five forums held across the country. Nearly 1,500 Canadians took part in this exercise and shared their ideas on the future of the official languages. These engagement efforts culminated in a major symposium on official languages held in Ottawa in May 2019.
• In August 2019, Canadian Heritage published a document summarizing the views expressed during the public engagement exercise.
• In 2019, the Standing Senate Committee on Official Languages, the House of Commons’ Standing Committee on Official Languages, and the Commissioner of Official Languages all released reports requesting the modernization of the Official Languages Act.
• On March 5, 2019, the Fédération des communautés francophones et acadiennes du Canada, with the support of the Quebec Community Groups Network, released its proposed bill for modernizing the Official Languages Act.
• An interdepartmental working group on the modernization of the Official Languages Act has been established. It is co-presided by Canadian Heritage, Treasury Board Secretariat, and the Department of Justice, with participation from the Privy Council Office. Eight sub-groups are conducting detailed reviews of specific themes: 1) preamble and purpose, 2) governance, 3) powers of the Commissioner of Official Languages, 4) administration of justice, 5) communication with and service to the public, 6) language of work, 7) advancement of English and French, and 8) miscellaneous proposals that do not fall under any of the previous categories.
• The Official Languages Act came into force in 1969 and granted equal status to English and French not only in Parliament and the courts, but also throughout the federal administration. In September 1988, the second Official Languages Act incorporated and clarified linguistic rights and principles set out in the Constitution of 1867, and enshrined in the 1982 Canadian Charter of Rights and Freedoms. The most recent milestone in the evolution of the Official Languages Act was adopted in 2005, with the addition of obligations to implement the commitment contained in Part VII.

Prepared by: Sarah Boily (819-934-9195)
Director of Communications: Annick Hector (819-994-2570)
Director General: Denis Racine (819-994-0943)
Assistant Deputy Minister: Maia Welbourne (819-934-2200)

Update

November 21, 2019

Source

n/a

Synopsis

On March 28, 2018, the Government of Canada unveiled its 2018-2023 Action Plan for Official Languages, which includes nearly 500 million dollars in new funding over five years. Implementation of the Action Plan’s new initiatives is well underway. The majority of the new initiatives have been rolled-out.

Recommended response

• The 2018-2023 Action Plan for Official Languages represents an additional investment of 500 million dollars, and is a testament to our commitment to official languages.
• The majority of the Action Plan’s new initiatives have now been fully rolled-out.

Background

• On March 28, 2018, the Government of Canada unveiled its 2018-2023 Action Plan for Official Languages: Investing in Our Future (Action Plan). The Action Plan represents close to
  $500 million in new funds over five years, and focuses on three pillars: Strengthening our Communities ($267 million); Strengthening Access to Services ($129 million); and Promoting a Bilingual Canada ($100 million).
• These funds are in addition to the ongoing program funds, notably those of the 2013-2018 Roadmap, for an unprecedented investment of $2.7 billion over five years.
• By initiating and leading the development and implementation of the new Action Plan within the Government of Canada, Canadian Heritage is assuming its role of horizontal coordination of official languages.
• Timelines have been respected. Some of the Action Plan’s new initiatives were implemented in 2018-2019, others have been implemented early in 2019-2020. A few initiatives will be launched in the coming months.
• Status of the Action Plan’s new initiatives associated with Canadian Heritage’s Official Languages Support Programs:
• Additional Funding for Community Organizations: completed in 2019-2020.
• Enhancement of the Community Cultural Action Fund: completed in 2019-2020.
• Fund for Quebec English-Speaking Communities: completed in 2019-2020.
• Community Media Strategic Support Fund: completed in 2019-2020.
• Minority Community Media Internships: completed in 2018-2019.
• Support for Community Spaces – Infrastructure: completed in 2019-2020.
• Strengthening Strategic Investment Capacity: completed in 2019-2020.
• Support to Civic Community School Initiative: ongoing (FJCF identified to manage « Vice versa » fund, expected to launch by December 31, 2019).
• Teacher Recruitment Strategies for French-Language Minority Community Schools and French as a Second Language: completed in 2019-2020 (project analysis underway).
• Enhanced Support for French-language Services in the Territories: completed in 2016-2017.
• The Mauril: Canadian Cultural Program for Learning English and French as Second Languages: ongoing (agreement in place for the development of the solution).
• Enhanced Support to Explore and Odyssey programs: completed in 2018-2019.
• Bursaries for Post-Secondary Education in French as a Second Language: ongoing (ACUFC identified to manage funds; launch expected by January 31, 2020.
• Additional Support for Young Canada Works: completed in 2018-2019.
• Other federal departments and agencies are partners of the Action Plan. In particular, the Action Plan announced new initiatives at Employment and Social Development Canada, Health Canada, Immigration, Refugees and Citizenship Canada, the Department of Justice and Statistics Canada. These federal partners remain responsible for the implementation of their activities and for their reporting. The implementation of these new initiatives is well underway and the majority are in place.

Prepared by: Sarah Boily (819-934-9195)
Director of Communications: Annick Hector (819-994-2570)
Director General: Denis Racine (819-994-0943)
Assistant Deputy Minister: Maia Welbourne (819-934-2200)

New

December 5, 2019

Source

National Film Board announcement.

Synopsis

On December 5, 2019, the National Film Board (NFB) announced an organizational restructuring, which involves the merger of all 11 NFB studios within the French and English Programs. The restructuring will eliminate three Executive Director positions, two management positions (Chief Digital Officer and the Executive Director of Operations and Production, Digital), and one administrative positon. The NFB will also announce its intention to appoint an Indigenous person to serve as an external advisor on Indigenous affairs.

Recommended response

• Canada’s audiovisual sector, including the National Film Board, is a dynamic component of our economy and our Canadian identity.
• As a Departmental agency, the National Film Board operates at arm’s length from the government. As such, it makes its own operational decisions.

Background

• Founded in 1939, the National Film Board of Canada (NFB) has a mandate to produce and distribute audiovisual works that reflect Canadian values and perspectives to Canadians and the world.
• The NFB is a departmental agency that operates at arm’s length from the Government, overseen by the Government Film Commissioner who is also the Chair of a Board comprised of six Trustees. Although the National Film Act stipulates that the Minister of Canadian Heritage shall control and direct the operations of the NFB, there is a longstanding tradition whereby the Minister does not intervene in the day-to-day operations of the organization.
• Claude Joli-Coeur is the current Government Film Commissioner and Chairperson. His appointment was renewed on June 27, 2019, for a term of three years.
• The NFB has two main business lines: (i) audiovisual production and (ii) accessibility and audience engagement. The vast majority of the NFB’s productions are documentaries or animation films. As well, the NFB continues to digitize its film collection (one of the world’s largest, with 13,000 titles) in order to make it accessible to audiences worldwide. The public face of the NFB’s digital transformation is its online screening room, NFB.ca, which offers free viewing of close to 3,000 NFB productions.
• Budget 2016 provided the NFB with $13.5 million over five years to increase support for the production of Canadian documentaries, animation, and digital content.
• The NFB received a parliamentary appropriation of $68.4 million for 2019-20. This parliamentary appropriation includes a $4.6 million cash advance for the relocation of the NFB's head office, for which the total loan is $14.4 million from the Government, repayable over twelve years from 2020-21.
• The NFB recently completed the move of its headquarters in Montreal to a new building in the Quartier des Spectacles entertainment district.
• For some time now, a group of over 200 freelance directors who create films and audiovisual works for the NFB has raised an issue regarding a decline in funding for production at the NFB. They claim that over the past 16 years, there has been a decline in funding for production at the NFB, that fewer films are being made, budgets have plummeted and filmmakers are paid less now than they were twenty years ago, and far less than most NFB employees. The group also criticized what they perceive to be a stark difference between the working conditions of the filmmakers, and those enjoyed by NFB staff and management.
• On December 5, 2019, the National Film Board (NFB) announced an organizational restructuring, which involves the merger of all 11 NFB studios within the French and English Programs with a view to:
• Better share expertise and practices in documentary, auteur animation films, and interactive and immersive works;
• Enable more direct collaboration between the executive producers of the English and French Programs;
• Increase the decision-making power and increased accountability of executive producers in studios; and
• Simplify decision-making and management processes.
• More specifically, the restructuring will eliminate three Executive Director positions, two management positions (Chief Digital Officer and the Executive Director of Operations and Production, Digital), and one administrative positon. Five employees will be affected in total. Rather than reporting to Executive Directors, executive producers in studios will report directly to the Director General of Creation and Innovation, a position that is currently vacant and will be filled in the coming months.
• The NFB will also announce its intention to appoint an Indigenous person to serve as an external advisor on Indigenous affairs.
• Between January and March 2020, the NFB will undertake a series of cross-country consultations with creators and professional associations in the Canadian audiovisual sector to inform development of the NFB’s 2020–2023 Strategic Plan.
• These consultations will take place in partnership with the Canadian Media Producers Association, the Documentary Organization of Canada, the Directors Guild of Canada, the Association des réalisateurs et réalisatrices du Québec, and ONF/NFB Creation.

Prepared by: Colin Boyd (819-993-9370)
Director of Communications: Marie-Eve Thérien (819-994-5598)
Director or Director General: Colin Boyd (819-993-9370)
Assistant Deputy Minister: Andrew Campbell (819-953-2597)

Issue

Shared Services Canada plays a key role supporting public servants who require accessible technology through the Accessibility, Accommodations and Adaptive Computer Technology program. This program assists Public Service employees with disabilities, injuries or ergonomic requirements with their integration into the workplace, providing access to systems, programs, information, computers and other resources.

Response

• Shared Services Canada is pivotal to building the government-wide foundation that supports accessibility in a digitally-enabled Public Service and in delivery of the best possible digital services that Canadians can rely on and expect.
• Shared Services Canada is investing in the Accessibility, Accommodation and Adaptive Computer Technology (AAACT) program to position it as a showcase solution and a key enabler of accessible Government of Canada workplaces.

If pressed on specific initiatives:

• Through funding provided in Budget 2019, the Accessibility, Accommodations and Adaptive Computer Technology (AAACT) program is prepared to support the needs of 5,000 additional persons with disabilities that the Government of Canada intends to hire over the next five years, as per the Public Service Accessibility Strategy.
• A lending library of assistive technology pilot project is underway in partnership with the Treasury Board of Canada Secretariat in order to rapidly onboard public servants with disabilities, such as casuals, students and term employees. If successful, this pilot would be made available to all public servants across the country.
• Shared Services Canada is preparing and will publish its first departmental Accessibility Plan, as required by the Accessible Canada Act, in advance of Government of Canada regulations.

Background

Shared Services Canada is committed to achieve the vision of Government’s 2018 Digital Operations Strategic Plan by using digital technologies that are inclusive and accessible. The department is doing this by proactively using world-recognized accessibility standards (EN 301 549) in all its information technology procurements, to ensure that the digital technologies that we buy, build or commission are accessible from the start.

Shared Services Canada is also leading several transformational projects (e.g. Lending Library of Assistive Technologies, Trusted Testers, Microsoft Adaptive Xbox Controller Hackathon) that will profoundly impact employees by giving them the opportunity to do their best work to succeed in their careers.

Furthermore, Shared Services Canada is co-chairing the Interdepartmental Accessible Information and Communication Technology (ICT) Working Group with Treasury Board of Canada Secretariat. In this role, we are working to ensure that Government of Canada clients and employees will be able to access and use all information and communications technology, regardless of ability or disability.

Finally, Shared Services Canada is home to Accessibility, Accommodation and Adaptive Computer Technology (AAACT). We have unique accessibility expertise and have been providing services to the Government of Canada for over 25 years.

Prepared by
Shannon Archibald
DG, Chief Information Officer

Key contact
Georges Fattouche
Director, Cabinet and Parliamentary Affairs
613-670-7995

Approved by
Stéphane Cousineau
SADM, Corporate Services
613-670-1758

Date
2019-11-18

Issue

The Government of Canada Cloud first policy requirement recommends Cloud as the preferred option for delivering IT services. Shared Services Canada brokers Cloud services (for unclassified and Protected B data) for Government of Canada departments.

Key Facts

• Shared Services Canada offers Cloud brokering services for unclassified and Protected B data to Government of Canada departments
• Shared Services Canada is responsible for Cloud service supply, readiness, enablement and standardization and acts as the liaison between qualified Cloud service providers and Government of Canada departments.

Response

• By adopting Cloud computing, the Government of Canada supports a digitally enabled workforce and provides improved digital services to Canadians.
• Cloud computing is a proven option for hosting data and applications, often offering greater flexibility, mobility and efficiency.
• The Government of Canada has twenty-six contracts in place for commercially available unclassified Cloud services and three contracts for Protected B.
• Cloud services are available through the Cloud Brokering Portal for on-demand consumption and are based on actual usage.
• The protection and privacy of Government of Canada data stored and processed in the Cloud is a top priority for the Government of Canada.

If pressed on Cloud Security:

• Privacy and security of information remains a top priority for the Government of Canada. The procurement process for cloud services ensures that protected B information will remain within Canada’s borders.
• Shared Services Canada works with security partners (such as the Canadian Centre for Cyber Security) to ensure its service offerings meet specified Government of Canada security requirements to mitigate the confidentiality, integrity and availability of data and business processes.
• Shared Services Canada monitors compliance to Government of Canada-specified security requirements to ensure they remain in place.
• Canadians can rest assured that their data is safe in the Cloud.
• The Government of Canada has policies in place that enforce where data resides (residency), how it is controlled (sovereignty).
• The Government of Canada will not award contracts unless all of the security requirements are met.

Background

Shared Services Canada offers Cloud brokering services for unclassified and Protected B data to Government of Canada departments. Cloud services provide access to shared information technology resources through “pay for use” models, similar to those for water and electricity utilities.

Shared Services Canada is responsible for Cloud service supply, readiness, enablement and standardization and acts as the liaison between qualified Cloud service providers and Government of Canada departments. Government of Canada departments can review, purchase and provide public Cloud services through Shared Services Canada’s Cloud brokering service portal. The Treasury Board of Canada Secretariat offers Government of Canada Right Cloud Selection Guidance to help departments decide which Cloud model is right for them.

Shared Services Canada uses a procurement process which will enable Cloud service providers to offer cloud-based services to the Government of Canada for unclassified and Protected B data.

The Cloud services contracts were put in place through a collaborative procurement process, which responded to industry feedback allowing for the Government of Canada to have access to a wide range of secure, scalable, and rapidly-available cloud computing capabilities.

Prepared by
Dinesh Mohan
Director General, CTOB

Key contact
Georges Fattouche
Director, Cabinet and Parliamentary Affairs
613-670-7995

Approved by
Luc Gagnon
ADM CTOB
613-670-1639

Date
019-11-18

Issue

The Government of Canada is working to make the public service more agile and efficient through improvements to workplace technology, including the implementation of digital collaboration tools and elimination of outdated technology.

Response

• Shared Services Canada will continue to modernize the Government of Canada Information Technology infrastructure, to provide a platform to support the delivery of digital government to Canadians.
• Shared Services Canada is expanding the digital communications tools and services available to the Government of Canada.
• In that regard, Shared Services Canada will modernize end-of-life landline voice services into Voice over Internet Protocol (or VoIP), as well as email and digital communications, to improve service reliability and greater functionality.
• Shared Services Canada will provide client departments with access to Office 365, thus modernizing the suite of tools they rely on to deliver timely and citizen-centered services to Canadians.
• These projects will provide modern tools to Government of Canada employees to better serve Canadians in today’s digital environment.

If pressed on Workplace Modernization:

• Shared Services Canada works closely with departments to ensure that aging technology is replaced on an ongoing and cyclical basis.
• Shared Services Canada’s Information Technology Refresh Program keeps current infrastructure assets up to date, through hardware and software updates and identifies assets that need upgrading or replacing.
• In an effort to keep pace with the rapidly changing information technology environment, in January 2019 Shared Services Canada created a Chief Technology Officer Branch. The Branch’s mandate is to ensure that federal programs for Canadians benefit from the latest available digital technologies.
• The Digital Communications Program, which included the Email Transformation Initiative, has been revamped to become the Government of Canada Digital Communications and Collaboration Platform in order to better provide public servants with improved access to digital communications tools.

Background

In order to modernize Shared Services Canada’s information technology infrastructure, the Department is working on improving and modernizing information technology and digital communications tools, all of which require strong network connectivity, security, and information management. This Digital Communications and Collaboration Platform, along with the Workplace Communication Services initiative, are important parts of Shared Services Canada’s efforts to consolidate and modernize the government’s telecommunications infrastructure.

Steps that are being taken to modernize telecommunications within the Government of Canada include the email migration initiative, the adoption of Microsoft’s cloud-based Office 365 service, and a shift from traditional landline telephones to Voice over Internet Protocol (VoIP) technology and mobile services.

Email migration focused on shifting the email service for 23 departments to the “Your Email Service” platform, a project that led to the recognition of a greater need for collaboration tools and digital services beyond email.

Office 365 will meet the government’s mandate of accessibility needs and of becoming an increasingly digital government by providing seamless communications, increased collaboration and a better user experience.

Voice over IP telephone services are replacing end-of-life traditional landline services in order to minimize outages as well as challenges with obsolete technology and hardware.

These projects will provide government employees with access to the digital tools required to better serve Canadians in the modern digital environment, while also meeting government-wide initiatives, such as Workplace 2.0 and Blueprint 2020, that aim to modernize the work environment by making use of new technologies to improve networking, productivity, mobility, and collaboration.

Issue

Critical applications for delivering services to Canadians are sometimes hosted in aging legacy data centres, depend on older coding languages, and run on legacy information technology infrastructure that requires significant maintenance. For these reasons, Shared Services Canada’s is supporting the Government of Canada in assessing, prioritizing and ensuring the health and stability of these critical applications.

Key facts

• Nearly 720 legacy data centres required consolidation in 2011. To date, over 200 legacy data centres have been consolidated in the cloud or in one of four enterprise data centres.

Response

• In order to deliver reliable services to partner departments, Shared Services Canada has established a comprehensive Workload Migration program and Data Centre Closure initiative that is consolidating and closing data centres at an ever increasing rate.
• To date, over 200 data centres have been closed through consolidation to the Cloud, to one of four Enterprise Data Centres, or into a more reliable location until they can be moved more permanently to an Enterprise Data Centre or the Cloud.

If pressed on speed of consolidation:

• In order to fulfil its obligation to have an inventory of information technology infrastructure assets, Shared Services Canada has implemented an Asset Discovery and Inventory Management Initiative.
• This initiative is providing the department with an inventory of information technology infrastructure assets so that they can accurately rank at-risk aging data centres for closure based on business needs and potential impacts to services that are essential to Government of Canada operations.
• This initiative has also increased the speed of consolidation of data centres. For example, in fiscal year 2018-2019, Shared Services Canada closed 56 legacy data centres, and this fiscal year, Shared Services Canada is working to close another 75 legacy data centres.

Background

Prepared by
Jay Amdur
Director General, Facilities Management

Georges Fattouche
Director, Cabinet and Parliamentary Affairs
613-670-7995

Key contact
Georges Fattouche
Director, Cabinet and Parliamentary Affairs
613-670-7995

Approved by
Ken Canam
Senior Assistant Deputy Minister, Data Centre Services
613-862-1837

Date
2019-11-26