Journals of the Senate
52 Elizabeth II, A.D. 2003, Canada
Journals of the Senate
2nd Session, 37th Parliament
Issue 87 - Appendix
Wednesday, October 22, 2003
1:30 p.m.
The Honourable Daniel Hays, Speaker
Wednesday, October 22, 2003
The Standing Senate Committee on National Finance has the honour to present its
NINTH REPORT
Your Committee, to which were referred the Supplementary Estimates (A), 2003-2004, has, in obedience to the Order of Reference of September 24, 2003, examined the said estimates and herewith presents its report.
Respectfully submitted,
JOSEPH A. DAY
Deputy Chair
REPORT ON SUPPLEMENTARY
ESTIMATES (A), 2003-2004
INTRODUCTION
The Standing Senate Committee on National Finance, to which were referred Supplementary Estimates (A), 2003- 2004, has, in obedience to the Order of Reference of 24 September 2003, examined the said estimates and herewith presents its report.
The Committee held meetings on 30 September 2003 and 7 October 2003 to review these Supplementary Estimates. At these meetings, Mr. Mike Joyce (Assistant Secretary, Expenditure and Management Strategies Sector, the Treasury Board of Canada Secretariat) and Mr. Marc Monette (Acting Director, Expenditure Operations Division, the Treasury Board of Canada Secretariat) appeared as witnesses and provided three explanatory tables, which form part of this report. Together, the tables summarise the major changes in the federal government's financing requirements in fiscal 2003-2004. The Supplementary Estimates (A), 2003-2004 is the first of a set of supplementary estimates that will be issued in the fiscal year that ends on 31 March 2004. Unless otherwise stated, all page references are from the document entitled Supplementary Estimates (A), 2003-2004.
OVERVIEW
Three tables provided by the Treasury Board Secretariat are reproduced below. Together, they summarize the changes proposed by the Supplementary Estimates (A), 20032004. Table 1 indicates that of the $180.7 billion set out in the 2003 Budget, $178.7 billion has been listed in the estimates — Main and Supplementary — to date.
Table 1:
Summary of Expenditure Framework for 2003-2004
Expenditure Framework:
| Budgetary Main Estimates | $173.1 billion* |
| Budgetary Estimates To Date | $178.7 billion |
| Projected Budgetary Expenditures | $180.7 billion |
Source: Treasury Board of Canada.
* Budgetary Estimates will always differ from Projected Budgetary Expenditures due to adjustments not reflected in Estimates for such items as anticipated lapses, budgetary reductions and those expenditures already recognized in prior years.
Table 2 reveals that total planned spending will increase from $175.9 billion reported in the 2003-2004 Main Estimates to $181.6 billion. The $5.7 billion increase is made up of $5.5 billion listed in the Supplementary Estimates (A), 2003-2004 and $0.2 billion in unexpended funds.
The majority of the expenditures, $117.0 billion or 64.4%, are statutory expenditures that do not require a vote. However, all of the Supplementary Estimates ($5.5 billion in the Supplementary Estimates (A), 2003-2004) require Parliamentary approval. This increase proposed by the Supplementary Estimates (A), 2003-2004 represents a 3.1% increase over the 2003-2004 Main Estimates.
Table 2:
Estimates to Date for 2003-2004
| TO BE VOTED | STATUTORY | TOTAL | |
| (in thousands of dollars) | |||
| Main Estimates | |||
| Budgetary(*) | 58,828,853 | 114,226,324 | 173,055,177 |
| Non-Budgetary | 82,653 | 2,799,441 | 2,882,094 |
| 58,911,506 | 117,025,765 | 175,937,271 | |
| Supplementary Estimates (A) | |||
| Budgetary | 5,486,476 | — | 5,486,476 |
| Non-Budgetary | 15,100 | — | 15,100 |
| 5,501,576 | — | 5,501,576 | |
| Unexpended Funds(**) | |||
| Budgetary | 203,121 | — | 203,121 |
| Non-Budgetary |
— |
— |
— |
| 203,121 | — | 203,121 | |
| Total Estimates To Date(***) | |||
| Budgetary | 64,518,450 | 114,226,324 | 178,744,774 |
| Non-Budgetary | 97,753 | 2,799,441 | 2,897,194 |
| TOTAL | 64,616,203 | 117,025,765 | 181,641,968 |
Source: Treasury Board of Canada.
* Budgetary Estimates will always differ from Projected Budgetary Expenditures due to adjustments not reflected in Estimates for such items as anticipated lapses, budgetary reductions and those expenditures already recognized in prior years.
** This amount represents unexpended funds that were appropriated in 2002-2003 for the Canada Customs and Revenue Agency and Parks Canada and which will be spent in 20032004.
*** Totals may differ from those shown in the Estimates due to rounding.
Finally, Table 3 summarizes the appropriations that have been approved to date. Appropriation Act No. 1 has approved $17.8 billion to date, while Appropriation Act No. 2 approved an additional $41.1 billion, for a total appropriation of $58.9 billion. The appropriation sought in the Supplementary Estimates (A), 2003-2004 would add a further $5.5 billion, to increase the total appropriations to $64.4 billion.
Table 3:
Supply to Date for 2003-2004
| Unexpended funds appropriated in 2002-2003 which will be spent in 2003-2004 | $203,121,162.00 |
| Two Appropriation Acts have been approved in respect of the Estimates for 2003-2004: | |
| Appropriation Act No. 1, 2003-2004 | |
| Granted Interim Supply for the 2003-2004 Main Estimates
equal to an initial allocation of 3/12ths for all votesand 41 votes received additional proportions |
$17,783,880,759.74 |
| Appropriation Act No. 2, 2003-2004(*) | |
| Granted Full Supply for the 2003-2004 Main Estimates | $41,127,623,420.26 |
| Total Approved to Date | $58,911,504,180.00 |
| Supply Awaiting Approval: | |
| For the whole of Supplementary Estimates (A), 2003-2004 | $5,501,576,467.00 |
| Supply to date for 2003-2004 | $64,413,080,647.00 |
Source:Treasury Board of Canada.
* Includes the reduction of $1,000 to the Department of Justice Vote 45 by the House of Commons Standing Committee on Government Operations and Estimates.
The Supplementary Estimates (A), 2003-2004 provide estimates of the spending requirements for departments or agencies of the federal government. Senators showed interest in both the general spending plans and specific items in these new estimates.
Mr. Joyce provided background documentation, which outlined some of the significant changes in the Supplementary Estimates (A), 2003-2004. Among the larger items are:
Horizontal items affecting more than one organization including:
$233.7 million to strengthen research and innovation in Canada as announced in the 2003 Budget for: Industry Canada ($105.3 million), the Canadian Institutes for Health Research ($56.5 million), the Natural Sciences and Engineering Research Council ($48.3 million), and the Social Sciences and Humanities Research Council ($23.6 million);
$193.5 million for the Treasury Board Secretariat to distribute funds to departments and agencies to compensate them for the impact of recent collective agreements and related adjustments to terms and conditions of employment;
$150 million for program implementation related to climate change to: Natural Resources Canada ($126.5 million) and Environment Canada ($23.5 million); and
$130.4 million in assistance to the Canadian softwood lumber sector to: Industry Canada to establish the Softwood Industry and Community Economic Adjustment Initiative ($105.9 million) and the Economic Development Agency of Canada for the Regions of Québec to fund research projects to assist Canadian workers and communities affected by the softwood lumber conflict ($24.5 million).
Specific items affecting a single organization including:
$1,288 million for the Department of National Defence: to sustain Canada's military and to maintain the existing defence capability ($792.7 million) as announced in the 2003 Budget; for the incremental costs associated with the deployment of troops to Afghanistan ($387.7 million); and for Canadian Forces' non- commissioned members and general service officers, as well as medical and dental officers, to maintain pay comparability with the public service and to ensure that the Canadian Forces has an adequate number of doctors and dentists ($107.6 million);
$376.8 million to the Canadian International Development Agency (CIDA): to increase the grant ceiling for several class grants to allow CIDA to implement programming in Afghanistan and Iraq and to make additional grants to the World Food Program, the United Nations High Commissioner for Refugees (UNHCR) and the International Committee for the Red Cross, as well as for other international aid programming ($172 million); for international assistance programming as part of the 8% increase to the International Assistance Envelope announced in the 2003 Budget ($131 million); and for the Canada Fund for Africa, the purpose of which is to provide grants and contributions for the economic and social development of Africa ($73.8 million);
$354 million to Agriculture and Agri-Food Canada for the Agricultural Policy Framework to provide assistance to the Canadian agricultural sector in five areas: business risk management, the environment, food safety and food quality, renewal, and science and innovation ($294.3 million); and for the Spring Credit Advance Program to provide financial assistance, through loan guarantees, to Canadian producers for spring planting costs ($59.7 million);
$224.9 million to the Social Sciences and Humanities Research Council to help universities, colleges, and their affiliated research hospitals and institutions defray the indirect costs associated with conducting federally supported research;
$190.4 million to Health Canada to strengthen the sustainability of delivery of health services to First Nations and Inuit through investments in: Non-Insured Health Benefits, nursing, immunization, health facilities development, health system reporting and water quality monitoring;
$152.8 million to the Department of Indian Affairs and Northern Development for out-of-court (pre-trial) settlements ($81.3 million); and to improve water quality for First Nations communities across the country ($71.5 million);
$121.3 million to the Office of Infrastructure of Canada to provide contributions towards public infrastructure investments across Canada pursuant to the 2001 Budget; and
$103.2 million to Human Resources Development Canada for the renewal of the National Homelessness Initiative to support activities to help alleviate and prevent homelessness across Canada.
SUMMARY OF HEARINGS
Senators were interested in the details of numerous issues contained in the Supplementary Estimates (A), 2003-2004. However, they also had general comments on the presentation and format of the Supplementary Estimates. Specifically, they would like to see, within Part II of the Estimates, more information on what the figures represent in terms of activity or acquisition programs. While there are numerous figures, there is not enough information to enable Parliamentarians to understand the reasons for new appropriations. The Treasury Board Secretariat officials agreed that some of the information provided in the Supplementary Estimates is rather cryptic. However, they reminded the Committee that the federal government, in the 2003 Budget, undertook to look at the clarity, transparency and usefulness of the Estimates documents. They assured the Committee that discussions are currently underway at the Treasury Board Secretariat on how to improve the reporting process.
A. National Capital Commission
An example of an item that provides insufficient information in support of the data occurs on page 36 of the Supplementary Estimates (A), 2003-2004 where the National Capital Commission (NCC) seeks an appropriation of $31.1 million for capital expenditures. This request is a 96.3% increase over the amount listed in the 2003-2004 Main Estimates, and is for the purpose of acquiring real property in Gatineau, Québec. Mr. Joyce explained that the funds would be used to acquire the Scott Paper Limited lands that are adjacent to the Canadian Museum of Civilization along the bank of the Ottawa River. These lands are situated almost directly across from the Parliament buildings and the Supreme Court of Canada. It is considered a once-in-a-lifetime opportunity to reinstate and consolidate federal ownership of the shoreline along Confederation Boulevard. The National Capital Commission has identified the lands as being of particular significance, and considers them essential to the development of the National Capital Region. Consequently, the National Capital Commission announced on 3 October 2003 that it has signed an agreement with the owner, George Weston Ltd., to buy the property for $36.1 million. The amount will be made up of the $31.1 million sought in these Supplementary Estimates and $5 million raised from the NCC's budget. The current owner will continue to have use of the land for 25 years and will pay the National Capital Commission $29 million in rent.
Senators generally support the acquisition of this land by the National Capital Commission. however, they are dissatisfied with the lack of transparency in the implementation of this federal initiative. Specifically, they would like to have more information available through the estimates, which would permit them to assess the merits of the proposed activity for which the National Capital Commission is seeking funding. More importantly, they are concerned about the timing of these actions by the Commission. The public announcement gave the impression that the transactions were finalized before the NCC had obtained Parliament's approval for the funds that it required. In reality, the National Capital Commission and the George Weston Ltd only completed an agreement to purchase subject to approval by the government. In order to avoid future confusion, federal government departments and agencies should avoid public announcements that are contingent on obtaining the approval of Parliament for appropriations, or they should ensure that Parliamentarians are fully informed of the status of the activities for which funding is sought.
There are two further concerns arising from this purchase of the Scott Paper lands. The first is whether the revenues of the City of Gatineau will be adversely affected now that the city will be receiving federal payments in lieu of taxes for this industrial land. The second is a lack of detail on the rent schedule. Mr. Joyce could not respond to these questions but indicated that he would look into the matter and inform the Committee at a later date.
B. Softwood Lumber
Some Senators were interested in the federal government's assistance to the Canadian softwood lumber sector, listed as $105.9 million on page 61. The information provided in the Supplementary Estimates (A), 2003-2004 is not clear regarding how this money will be used to assist an industry that has been seriously affected by the decline in its ability to serve the American market. However, on page 62 there is an entry for "Contributions under the softwood industry and community economic adjustment initiative;'' this program was announced in October 2002 but did not appear in the 2003-2004 Main Estimates, although it was mentioned in the 2003-2004 Part III, Plans and Priorities of Industry Canada. As the Plans and Priorities documents are issued within one month of the Main Estimates, Senators questioned why the figures were not shown in the 2003-2004 Main Estimates. It seems to some Senators that there are elements in the Supplementary Estimates (A), 2003-2004 that were known at the time of the release of the 2003-2004 Main Estimates but were not included. Mr. Joyce explained that the Plans and Priorities documents are intended to address the broad, threeyear plans of the department as consistently as possible with the Budget. Therefore, these documents are intended to ensure that the information given to Parliament to accompany the Main Estimates is as complete as possible with respect to the spending plans that the federal government has announced in the Budget. There are occasions when there will be explicit reference in the Plans and Priorities documents to initiatives that the federal government has announced but where there is no mention of the initiatives in the Estimates. Before an item is recommended to the Treasury Board for inclusion in the Estimates, the Treasury Board Secretariat must be satisfied that the affected department or agency provides all relevant details of its request for appropriations.
Continuing with the question of assistance to the softwood lumber industry, some Senators were interested in the planned distribution of the funds among the regions of the country and the form that such assistance will take. They were also interested in the delivery mechanism to be used, particularly which department or agency will be responsible for delivering the assistance to the industry. Mr. Joyce noted that there have been three announcements of assistance to the softwood lumber industry by the federal government: in May 2002, in October 2002 and in December 2002. The announced assistance of $134 million is divided between Industry Canada, which has $105.9 million to establish the Softwood Industry and Community Economic Adjustment Initiative, and $24.5 million provided to the Economic Development Agency of Canada for the Regions of Québec. Mr. Joyce added that while the Industry Canada program is a national program designed to address the adjustment and transition needs of all forestdependent communities across Canada, it would in fact be delivered by the regional economic development agencies. The breakdown of funds among the regions is dependent on the forecasted job losses in each region. At the end of the program, the actual level of job losses will determine the actual amount allocated to each region. At this time, it is forecasted that the Atlantic Canada Opportunities Agency will receive $1 million, the Economic Development Agency of Canada for the Regions of Québec $38 million, the Federal Economic Development Initiative for Northern Ontario $7 million and Western Economic Diversification Canada $59 million.
Some Senators observed that, in October 2002, the federal government announced that $110 million would be available to assist the softwood lumber industry. They also noted that in December of that year the Minister of Natural Resources announced that the initiative had been implemented and that the program would be delivered by Western Economic Development Canada. What concerns some Senators is that neither the Treasury Board nor Parliament appears to have approved these expenditures. Mr. Joyce explained that a department is able to shift its priorities if there is a change in the environment in which it is working and some aspects of that environment require immediate action. The issue in such a situation for the department question will be: Can it shift its priorities and change its plans in respect of the way in which it had planned to spend, allocate or transfer money? Furthermore, he noted that the department involved must determine if the required action falls within both its mandate and the expenditure authorities that Parliament has granted to it. When a department is responding to an urgent issue which is within its mandate, and can shift its priorities to do that, there is no reason to expect the department to have to seek authorization from the Treasury Board. However, if the department required authorities pursuant to the policies of the Treasury Board, such as a change in transfer payment programs where new terms and conditions apply, then it would have to seek approval of the Treasury Board. Regardless of the approach taken, Mr. Joyce assured the Committee that the officials of the Treasury Board Secretariat responsible for the oversight of the department in question would be discussing the matter with the officials of the department to determine whether additional authority is required to support their change in spending plans.
C. Canadian Firearms Centre
The Canadian Firearms Centre (page 88) was again a topic of discussion in this Committee. Specifically, Senators were interested in the $10 million in new appropriations requested by the Centre in Vote 7a. Mr. Joyce pointed out that the Supplementary Estimates (A), 2003-2004 identifies this amount as the operating budget carry forward for the Department of Justice designated for the Canadian Firearms Centre. Mr. Joyce informed the Committee that the Canadian Firearms Centre has a carry forward of $10 million because the expenditures that they had planned for the new licensing and registration system did not proceed as quickly as they had planned. It was a delay in planned expenditures necessitated by the fact that the legislation to which it was responding (Bill C10A) has not proceeded as quickly as they had foreseen.
Senators also wanted additional information on the operations of this government agency. Specifically, they wanted information with respect to: the use of carry-over provisions in government; the number of employees at the Canadian Firearms Centre; the use of consultants by the Canadian Firearms Centre; the distribution of funds among the participating provinces; and the methodology used by the Treasury Board to record a transfer of funds between government departments.
Senators were interested in the procedure used to record the transfer of $105.4 million from the Department of Justice to the Department of the Solicitor General. They noted that other transfers did not result in a positive total for the total of all transfers listed on page 14 of the 2003-2004 Supplementary Estimates (A). Mr. Joyce acknowledged that the method used to report the transfer of the $105.4 million between the Department of Justices and the Office of the Solicitor General did not follow the usual past practices, which involve the recording of an offsetting debit in the column. He gave the Committee his assurances that the next time such transactions will be reported in a consistent manner in the Estimates.
Continuing with the Canadian Firearms Centre, Mr. Joyce reported that the Centre had a staff complement, at the end of August 2003, of 279 persons, of which 100 are indeterminate staff, 161 are casual and term employees, and 18 are secondment or interchange arrangements with other organizations. The employees at the Canadian Firearms Centre are made up of 10 senior managers, 22 persons in the administrative services group, 93 professionals and 153 clerical workers. The forecasted salary cost for this workforce in 2003-2004 is $22.5 million. This does not include any personnel that were transferred to the Royal Canadian Mounted Police. Some Senators were struck by the fact that these figures yield an average salary or cost per employee of around $81,000 per annum. In view of the fact that 153 of the 279 employees held clerical positions, such a cost seemed relatively high. Mr Joyce agreed to look into the matter and report his findings to the Committee at a later date.
Mr. Joyce also reported that the Canadian Firearms Centre will be spending $58.9 million on professional and special services. He informed the Committee that approximately $46 million has been earmarked for development and certification of a new licensing and registration system, pursuant to the passage of Bill C-10A. In terms of the principal contractors receiving a share of the $58.9 million, the Committee learned that the DLS St. Joseph Company will receive $2.1 million for the warehousing and distribution of forms and publications, and the St. Joseph Print Group will receive $3.2 million for printing and mailing services. Another company, EDS, is providing hardware and software maintenance support for the current registry system at a cost of $8.8 million. Hewlett Packard will receive $2.3 million for the maintenance and support of the HP service, which is part of the current system. NEX Innovation is receiving $2.1 million for general hardware maintenance and support services. The largest item is $32.4 million, which has been set aside for CGI Information System as part of the $46 million earmarked for the development of the new system.
With respect to the Canadian Firearms Centre's $16.5 million item listed as contributions to the provinces, Mr. Joyce explained that this money is for provinces that are engaged in the delivery or administration of the firearms program. The amount is divided among Nova Scotia ($0.8 million), New Brunswick ($0.9 million), Prince Edward Island ($0.2 million), Quebec ($8.6 million), Ontario ($4.9 million) and Aboriginal communities and not-for-profit organizations ($1.1 million).
D. Public Service Modernization
In an earlier appearance before the Committee, the Honourable Lucienne Robillard, P.C., M.P., explained that the Treasury Board Secretariat would set aside approximately $40 million to introduce measures that would allow the Public Service Commission to eliminate its reliance on geographic limitations in the recruitment of federal public service employees. Some Senators were interested in identifying the location of such funds within the 2003-2004 Main Estimates and within the Supplementary Estimates (A), 2003-2004. Mr. Joyce explained that the amount existed in the planned expenditures of the federal government for the fiscal year 20032004, but since they are dependent on the passage of Bill C-25, the Public Service Modernization Act, they could not yet be specified in any of the Estimates.
E. Health Research
Senators noted that a substantial amount of funding in the Supplementary Estimates (A), 2003-2004 has been earmarked for the Canadian Health Institutes of Research. Mr Joyce explained that the Canadian Institutes of Health Research encompasses 13 "virtual'' institutes. The term "virtual'' is used because these are not formal federal organizations, nor are they formally incorporated. However, a scientific director who is resident in an existing university or research hospital heads each of the "virtual'' institutes. The host institution of each of these institutes receives a grant of $1 million annually to support the operations of the institute. Institute staffs are actually employed by the host institution. The 13 institutes cover research in the areas of: Aboriginal peoples' health, aging, cancer research, circulatory and respiratory health, gender and health, genetics, health services and policy research, human development, child and youth health, infection and immunity, musculoskeletal health and arthritis, neurosciences, mental health and addiction, nutrition, metabolism and diabetes, and population and public health. Collectively, these institutes administer more than $633 million in transfer payments allocated through peer-reviewed competitions to research proposals.
F. Federal Funding of Foundations
The issue of the use of funds provided by the federal government to foundations also arose during the meetings. Specifically, the Senators noted that the Trans Canada Trail Foundation will receive $15 million and the National Aboriginal Achievement Foundation will receive $12 million (page 33). In neither instance did the Supplementary Estimates (A), 20032004 indicate the nature of these foundations. Mr. Joyce explained that the Trans Canada Trail Foundation would be receiving a grant to establish a fund to be expended in support of community-based trail- building projects over a six-year period.
On the other hand, the National Aboriginal Achievement Foundation, which has a mandate to recognize Aboriginal scholastic and lifetime achievements, will be receiving a onetime endowment by the Government of Canada. The Government is providing this funding in recognition that, despite steady gains in educational achievement, the percentage of Aboriginal Canadians with postsecondary degrees lags the average for all Canadians. The income generated from the endowment is expected to yield between 100 and 300 scholarships annually. Mr. Joyce also added that, prior to the payment of the grant to the National Aboriginal Achievement Foundation, a funding agreement will be set out between the Foundation and the Minister of Canadian Heritage that will clearly identify the purpose of the grant, the reporting and accountability obligations of the Foundation, any restrictions on the use of the funds, and the return of both the capital and any unspent interest to the government should the Foundation cease operations for any reason.
G. Federal Reallocation of Budget Spending
Some Senators noted that a recent Treasury Board press release, entitled "President of the Treasury Board Reports on Reallocation,'' explains that the federal government has reallocated $1 billion to higher priorities for the current fiscal year. More than $800 million of that amount is being reallocated internally, i.e., within departments. A list of the amounts involved is provided in two tables in the press release. The first table provides transfers of funds within individual departments and totals $825 million. Mr. Joyce explained that these reallocations reflect changing priorities within departments. The meaning of the second table is less clear. At first, it was believed that the amounts listed in the second table represent funds that each department no longer requires and that will be available for reallocation to other departments. According to Mr. Joyce, this interpretation may not be accurate. The amounts in the second table represent funds that are available for reallocation to the funding of high priorities identified in the 2003 Budget.
The Senators also wanted information on the nature of these reallocations within the Supplementary Estimates (A), 2003-2004. They noted that some departments were declaring sums that were available for reallocation while requesting additional appropriations in the Supplementary Estimates (A), 2003-2004. For instance, the Privy Council declared $4 million for reallocation. However, in the Supplementary Estimates (A), 2003-2004 (page 80), it seeks $26 million in new appropriations. Mr. Joyce could not fully explain this discrepancy. However, he noted that in the Supplementary Estimates (A), 2003-2004 there have been some reductions made, which take into account the fact that the Treasury Board has removed the spending authority from departments' budgets. The reallocations have had the effect of reducing the amount that had to be allocated to new priorities.
H. Official Languages
Some Senators requested details of new appropriations for the Public Service Commission (PSC) totalling about $14.5 million in the areas of official languages and human resources modernization (page 39). Officials from the Treasury Board Secretariat explained that the action plan for official languages is a horizontal item that affects a number of entities in the federal government; the total cost of $28.6 million accounts for a portion of the federal government's investment in the strengthening of Canada's linguistic duality announced in the 2003 Budget. With respect to new appropriations for human resources modernization, officials stated that these funds reflect work that needs to be done to prepare for the possible passage of Bill C-25, the Public Service Modernization Act.
I. Canadian Television Fund
The Committee was also interested in an $87.1 million contribution to the Canadian Television Fund (CTF) under the Department of Canadian Heritage (page 33). Some Senators wished to know whether the item listed in the Supplementary Estimates (A), 2003-2004 contradicted an announcement made by the Minister of Finance in which annual funding for the CTF was to be reduced. Treasury Board Secretariat officials made it clear that the contribution to the CTF was consistent with the 2003 Budget announcement that the federal government would continue to finance the Fund for two additional years by providing $87.5 million in 2003-2004 and $62.5 million in 2004-2005. Senators observed that, while the end result was a reduction of $50 million over two years, the uneven decrease in funding — $12.5 million in the first year and $37.5 million in the second year — was intended to mitigate this year's effects of the reduction in funding.
J. Canadian Landmine Fund
Some Senators expressed the view that it is difficult to ascertain the total amount committed to certain items that spread across departments. An example of this difficulty is the total commitment to the Canadian Landmine Fund, which is spread over four different votes — two for the Department of Foreign Affairs and International Trade (page 45), one for the Department of National Defence (page 76) and one for the Canadian International Development Agency (page 47). Treasury Board Secretariat officials stated that $12.1 million is to be appropriated to the Canadian Landmine Fund in total. Officials went on to say that the Backgrounder, which accompanied the Supplementary Estimates (A), 2003-2004 was intended to identify the major horizontal items but that further suggestions would be made to improve the presentation. Perhaps a list of such expenditures items could be included in future Supplementary Estimates.
K. International Financial Institution Fund Accounts
Some Senators wanted more information on the nature and function of the International Financial Institution Fund Accounts, which is listed as an item under the Canadian International Development Agency (page 47). Treasury Board Secretariat officials explained that these international financial institutions are also known as regional development banks. In this instance, Canada is supporting a fund, which makes money available to low-income members at low rates of interest and with long repayment periods. Officials specified that the $97.0 million in note issuances would be used as follows: $67.2 million for the African Development Fund; $14.5 million for the International Fund for Agriculture Development; $9.1 million for the Caribbean Development Bank and the Special Development Fund; and $6.2 million for the Multilateral Fund for the implementation of the Montreal Protocol on substances that deplete the ozone layer.
L. Office of Indian Residential Schools Resolution of Canada
In response to some Senators' questions concerning the contribution of churches towards the total settlement forecast by the Office of Indian Residential Schools Resolution of Canada (page 86), officials from the Treasury Board Secretariat explained that the federal government has agreements with two of the four churches — the Anglican Church and the Presbyterian Church. Under these agreements, the federal government will pay 70% of the compensation for claims prior to the 1969 fiscal year, with the Anglican and Presbyterian Churches contributing the remaining 30% of the compensation up to a fixed maximum of $25.0 million and $2.1 million respectively. After the 1969 fiscal year, the federal government is responsible for 100% of compensation for claims. Regarding the two churches without agreements with the federal government (the Catholic Church and the United Church), the Office of Indian Residential Schools Resolution of Canada will contribute 70% of compensation to settlements of individual claims and the claimant will retain the option of pursuing the church for the balance of the compensation. The Committee was told, however, that 65% of these claims with the Catholic and United Churches have been settled out of court.
M. Severe Acute Respiratory Syndrome (SARS)
In response to Senators' requests for details on the $27.5 million in assistance provided to businesses and regions affected by the Severe Acute Respiratory Syndrome (SARS) (page 61), officials from the Treasury Board Secretariat identified three main components: $13.5 million for Industry Canada, which was then divided between the Toront03 Tourism Recovery Alliance ($10.0 million) to promote the Greater Toronto Area and the Ontario tourism corridor as a tourist destination and the Toronto Waterfront Revitalization Corporation ($3.5 million) to help fund the July 2003 Rolling Stones Concert; $12.5 million for the Canadian Tourism Commission to develop a marketing campaign promoting tourism in Canada; and $1.5 million for Human Resources Development Canada to provide income relief to health-care workers who have been isolated, quarantined or have contracted SARS and who are either ineligible or do not qualify for Employment Insurance benefits.
N. Canadian Legal Aid
With respect to new appropriations of $44 million for the renewal of Canadian legal aid under the Department of Justice (page 71), Treasury Board Secretariat officials explained that the renewal strategy, which had been announced in the 2003 Budget, would total $133 million over three years. This information was not included in the 2003-2004 Main Estimates because the Secretariat did not have sufficient information about the renewal of the legal aid program at that time.
O. Mission to Afghanistan
Some Senators expressed an interest in the projected total cost of Canada's mission to Afghanistan. The officials from the Treasury Board Secretariat told the Committee that they did not have a complete answer on the matter of the federal government's total commitment to the mission in Afghanistan, and that they would provide the Committee with a complete answer at a later date.
P. Support to Alleviate Homelessness
Senators were interested in obtaining more information on the request by Human Resources Development Canada for $103.2 million for "Activities to help alleviate and prevent homelessness.'' Mr. Joyce revealed that an evaluation of a previous, similar initiative indicated that such activities had put a solid emergency-need network in place. It was a communitybased approach that allowed communities to select the delivery model best suited to their situation. Since the experience had been positive, the department requested an additional $103.2 million to renew and extend the initiative.