Journals of the Senate
49 Elizabeth II, A.D. 2000, Canada
Journals of the Senate
2nd Session, 36th Parliament
Issue 38 - Appendix "A"
Thursday, March 23, 2000
2:00 p.m.
The Honourable Gildas L. Molgat, Speaker
Thursday, March 23, 2000
The Standing Senate Committee on National Finance has the honour to present its
THIRD REPORT
Your Committee, to which were referred the Supplementary Estimates (B), 1999-2000, has, in obedience to the Order of Reference of 2 March, 2000, examined further the said estimates and herewith presents its report.
The Supplementary Estimates "B" 1999-2000, which were referred to the National Finance Committee on 2 March 2000, were examined on 21 March 2000. At that time Mr. Keith Coulter, Assistant Secretary at the Treasury Board presented a brief overview of the Supplementary Estimates. In their examination of the Supplementary Estimates, members continued to expressed an interest in a wide range of issues relating to the Government's planned expenditures for fiscal 1999-00.
During this phase of its study of the Estimates, the Committee notes the broad changes to the government's spending plans that are summarized in the two tables attached to this report. The first table at the end of the report, entitled "Summary of Expenditure Framework and Estimates for 1999-2000," provides a quick view of the changes proposed by the Supplementary Estimates "B". Total planned spending for this fiscal year is now expected to come in at about $157.09 billion, which is $5.53 billion more than the original amount listed in the Main Estimates last spring. Most of the extra spending sought is accounted for by a $5.48 billion increase in budgetary expenditures.
The second table, entitled Supply to Date for 1999-2000 summarizes the appropriations that have been approved to date and the new appropriations sought in the current supplementary estimates. Appropriation Act No 1 has approved $13.83 billion, while Appropriation Act No. 2 added a further $31.95 billion and Appropriation Act No. 3 gave approval for an amount of $3.86 billion. The Supplementary Estimates (B), 1999-2000, seek approval for an additional $3.8 billion. If approved, this amount will raise total appropriations to $52.75 billion.
The Committee continues to express a wide-ranging interest in the Estimates. On a general note, members sense that there may be too much reliance on the use of Supplementary Estimates, and that not enough effort is made to prepare initial estimates that will hold over time. Members wonder if departments and government agencies could increase their efforts to provide more accurate estimates in their initial estimates. Mr. Coulter reassured the Committee that every effort is made to obtain valid and final estimates at the time that the Main Estimates are prepared. However, it is not always possible to accurately forecast the cost of some items, and these will necessitate the use of Supplementary Estimates.
The Committee was also interested in a number of specific issues such as the $3.3 million requested by the National Gallery. Mr. Coulter explained that this amount was to provide a film of protection on the buildings windows to protect them in the event of an explosion at the U.S. embassy. The measure was recommended by various federal security agencies and uses the same material that is used to protect the windows in the Parliament buildings.
The Committee once again expressed an interest in Canada's overseas development assistance. The Treasury Board officials reviewed several aspects of Canada's foreign aid programs as they are administered by the Department of Finance and by the Canadian International Development Agency (CIDA). One item of concern was the $13.6 million loan forgiveness to Costa Rica by the Agency. Although Mr. Coulter explained that this is an initiative that originated at the Rio Summit, and is designed to provide incentives for Latin American nations to preserve their environments, there remains some uncertainty as to why CIDA is involved in foreign debt forgiveness programs.
Another item that caught the attention of the Committee is the $62 million grant that is to be provided to the Canadian Federation of Municipalities. The Department of Natural Resources will provide a further $62 million grant to the same group. The Officials explained that the money is part of a $125 million initiative of Natural Resources and Environment Canada, as announced in the "000 budget, for grants to the Federation of Canadian Municipalities to establish a green Municipal investment Fund ($100 million) and a Green Municipal Enabling Fund ($25 million). These initiatives will allow the Federation to support municipal infrastructure projects that improve air and water quality, minimise undesirable emissions and effluent, and encourage the sustainable use of renewable and non-renewable resources. There is a concern in the Committee regarding the role of the provinces, if any, in the administration of these programs.
The Committee noted that Genome Canada is to receive a $160 million grant from Industry Canada to support genomics research. Interest was express regarding how this money would be allocated and specifically whether any consideration was given on the share allocations across all regions of the country. The officials explained that a national office has been announced, but that neither the location of the other offices, nor the amounts set aside by region has been announced at this time.
Although the Kosovo Conflict is now over, the Committee has not seen a final figure on the cost of Canada's participation. The officials acknowledged that the total cost goes beyond the amounts spent by the Department of National Defence. They also agreed to provide this information to the Committee at a later date.
Members were interested in the $74.3 million grant to Marine Atlantic Inc. to finance the purchase of a vessel for its ferry fleet. The officials explained that this funding was required because of increased utilisation of the service. The ferry will provide both passenger and vehicle service between Newfoundland and Nova Scotia.
An interest was expressed in what would be done to replace the former student loan program that has been abandoned by the central banks. The officials assured the Committee that the Department of Human Resource Development would have an alternative source of funding in place by the beginning of the next academic year.
Respectfully submitted,
LOWELL MURRAY
Chairman