Appropriation Bill No. 2, 2021-22
Third Reading
June 21, 2021
Honourable senators, when shall this bill be read the third time?
Honourable senators, with leave of the Senate and notwithstanding rule 5-5(b), I move that the bill be read the third time now.
Is leave granted, honourable senators?
Hon. Senators: Agreed.
Honourable senators, I rise today to speak to Appropriation Bill No. 2, 2021-22. The appropriation act is the mechanism by which necessary monies are withdrawn from the Consolidated Revenue Fund to cover expenses related to government programs and services. As a reminder, the interim supply bill, introduced in March 2021, included the amounts needed for each department and organization to operate from April to June of 2021. The bill provided funding for activities during that period while the Main Estimates were being studied.
The bill I am introducing today is the full supply bill that details the remaining monies to be released. The voted amounts represent maximum “up to” ceilings or estimates and, therefore, may not be fully spent during the course of the year. Actual expenditures will be found in the public accounts after the end of the fiscal year.
Through this supply bill, the government requests Parliament’s approval of the planned spending proposals that are detailed in the Main Estimates. The estimates include the Main Estimates, supplementary estimates, departmental plans and the departmental results reports in conjunction with the public accounts help parliamentarians scrutinize government spending.
I cannot overstate how important this information is to the functioning of our system of government. In fact, accountability is predicated on parliamentarians knowing how public funds are being spent so that they can hold the government to account for its actions.
With that in mind, it is my pleasure to speak to you about the 2021-22 Main Estimates, which forms the basis of this appropriation bill.
The purpose of these estimates is to seek funds to continue previously approved programs and services, as well as investments to support Canadians during the COVID-19 pandemic, in order to create the right conditions for a successful economic recovery.
The Main Estimates provide information on the proposed spending of $342.2 billion for 123 organizations. This amount may be divided into voted expenditures of $141.9 billion and statutory expenditures of $200.3 billion that have already been approved by existing legislation.
Of this spending, just over $22 billion has been allotted to measures to fight the COVID-19 pandemic. Also, investments outlined in these estimates include economic support for individuals and businesses in Canada, funding for vaccines, enhanced support for tools that provide mental health support in the context of the pandemic, virtual care and others.
The estimates include important payments to help Canadians better cope with the pandemic by bringing in, for example, the Canada Recovery Benefit, the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit.
An essential part of Canada’s fight against COVID-19 has been the financial support made available to Canadians and Canadian businesses by the federal government. Considering that Canada’s GDP grew by roughly 10% in the fourth quarter of last year, we see that as a good indication that government intervention in the economy was not only necessary, but also effective.
Honourable senators, I would like to go over some of the major expenditures in these estimates, highlighting six organizations that are seeking more than $5 billion each in voted budgetary expenditures.
One of these is the Public Health Agency of Canada, which is asking Parliament for authorization to spend $8.7 billion. PHAC will use the money to continue its important work helping Canadians get through the pandemic. This work includes investing in COVID-19 vaccines, therapeutic products, medical equipment and PPE, as well as closing gaps in biomanufacturing.
PHAC also maintains quarantine facilities managed by the federal government, strengthens its border and health travel program, and helps municipalities offer safe voluntary isolation sites to prevent the virus from spreading further.
Honourable colleagues, while the estimates reflect the government’s investments in response to the COVID-19 pandemic, they also demonstrate continued support for ongoing priorities that are vital to the interests of Canadians, such as national security and defence.
The Department of National Defence is presenting $22.8 billion in voted expenditures in the 2021-22 Main Estimates, which include investments in the Strong, Secure, Engaged defence policy as well as important funding for equipment upgrades.
National Defence is also funding the continued implementation of initiatives and programs set out in the Canadian Armed Forces Sexual Misconduct Response Strategy to ensure Canadian Armed Forces members affected by sexual misconduct have access to the supports and services they need.
I would now like to turn to the Department of Indigenous Services, which is seeking $13.4 billion. Included for Indigenous Services Canada in the estimates is a proposed net increase of $508.6 million to improve access to safe, clean drinking water in First Nation communities.
In addition, proposed spending includes increases of $122.6 million for supportive care in Indigenous communities, and $104.7 million for education programs at the elementary, secondary and post-secondary levels.
Honourable senators, the fourth organization I would like to highlight is the Treasury Board of Canada Secretariat, which is seeking $7 billion through these Main Estimates. These voted expenditures include several votes, which are centrally managed by Treasury Board ministers and total roughly $3.7 billion. The funds are allocated across federal organizations and facilitate the Treasury Board’s roles as the employer, general manager and expenditure manager for the government.
There are also just over $3 billion for responsibilities as the employer. These expenditures will serve to make payments under the public service pension, benefit and insurance plans, including the employer’s share of health, income maintenance and life insurance premiums.
The Secretariat’s Main Estimates also include a net increase of $27 million to program expenditures. This is primarily to foster a diverse and inclusive public service and to allow the Canadian Digital Service to continue providing critical digital products and services related to the COVID-19 pandemic.
Another important priority of the government is international development and diplomacy. Through the proposed funding of $6.3 billion in these estimates, Global Affairs Canada will continue to implement Canada’s feminist foreign policy and support actions to reduce poverty and fragility in developing countries. Global Affairs Canada will also work with global partners to promote trade and continue to strengthen its consular program.
Honourable senators, Canadians care about how the government treats our veterans, and it expects the government to honour their service. These are the veterans who served to protect the very rights and freedoms we enjoy today.
With the proposed funding in these estimates of $6.2 billion, Veterans Affairs Canada will continue to deliver important services and ensure benefit programs continue to meet the needs of our veterans who have given so much on our behalf.
Esteemed colleagues, the government continues to make the presentation of these Main Estimates a priority by providing comprehensive documentation that is readily accessible online to parliamentarians and Canadians.
I would encourage my colleagues who have not already done so to consult GC InfoBase, an interactive online tool that displays a host of federal data in graphical format.
The ability to provide oversight is one of the most important roles parliamentarians take on on behalf of our citizens. To properly carry out this role, parliamentarians must have access to accurate and understandable information, in a timely manner, about government spending. GC InfoBase provides that information.
InfoBase contains the Main Estimates and other information about the government’s finances, people and results. Releasing data sets on spending by means of digital tools of this nature is essential to providing parliamentarians and Canadians with more information about the allocation of public funds and how they are spent.
Esteemed colleagues, the bill that I have the honour of introducing today is important for us to be able to move forward with the government’s commitment to the health and well-being of Canadians and other key priorities.
If COVID-19 has taught us anything, it is that we are all in this together.
I would like to thank all of you for working together to do what is required to protect Canadians in these extraordinary circumstances.
Colleagues, this has been an unprecedented year in reviewing money bills, and I want to thank all of you for the role you are playing in helping Canadians manage through this difficult period. We are moving toward an economic recovery, toward a time where we can reconnect with our friends and family and hopefully rediscover a sense of normalcy. It has been a long haul, but I believe we are turning the corner and turning toward a well-deserved summer break. Thank you, meegwetch.
Senator Mercer, do you have a question for Senator Gagné?
I want to raise an issue with Senator Gagné. Most colleagues who have been with me for the past 18 years will know that I raise the same question this time every year.
We’ll ask Senator Gagné if she will accept a question.
Senator Gagné, will you take a question?
Yes, I will take the question.
Thank you for taking my question. Each year I ask a question. In your speech you talked about the role of parliamentarians in providing oversight on behalf of Canadians. Oversight is measured in different ways and in time. Unfortunately, in this Parliament — not just this government; all four governments since I have been a member of the Senate have all done the same thing — they have given us not days, not months, not weeks, but have given us hours to officially fulfill our oversight role. Have you, as the person responsible for introducing this bill, expressed a concern to government officials that there’s not a lot of time here for the oversight that Canadians expect us to perform?
Thank you, Senator Mercer. I have not necessarily communicated that directly to the government. You can certainly ask my colleague Senator Gold if that is the case with his interventions. I must say that with the Main Estimates that have been tabled and studied and the interim supply that was also studied in March, we have been at this for quite a while, Senator Mercer. So that would be my response to your question.
Thank you, Senator Gagné, for your remarks and also to Senator Mercer for his very interesting question that I will address in my comments. I am going to start off by talking about the Main Estimates 2021-22 because it supports Bill C-33. In it the government is outlining its request for parliamentary approval to spend $142 billion.
In addition to the $142 billion requiring parliamentary approval, $204 billion in statutory spending is also being forecast. Parliamentary approval to spend this $204 billion is not being requested in this appropriation bill, Bill C-33, because it has been or will be approved by other legislation. Bill C-33 is the second appropriation bill for this fiscal year.
Honourable senators may recall that we passed the first appropriation bill for this year, Bill C-26, the interim supply bill, in March. I spoke to that bill. That bill effectively provided an advance so that the government would have enough funding to operate until this main supply bill is passed. In essence, of the $142 billion requiring parliamentary approval, Parliament already approved $59 billion in March. Parliamentary approval of the remaining $83 billion is being requested in this bill.
The Main Estimates document that supports Bill C-33 was tabled before Budget 2021 and, therefore, neither the Main Estimates document nor this bill includes funding for any new budget initiatives.
Funding for the new budget initiatives will be included in Supplementary Estimates (A), (B) or (C), or they have already received or will receive parliamentary approval by the budget implementation act, Bill C-30 — which we have to pass later this week — the Economic Statement Implementation Act, 2020, Bill C-14 — which we passed earlier this year and which I spoke to — or other statutes.
There are 123 organizations requesting funding in Main Estimates, and 6 are requesting more than $5 billion each. Senator Gagné spoke to that. These organizations are the departments of National Defence; Indigenous Services; Foreign Affairs, Trade and Development; and Veterans Affairs. The other two organizations are the Public Health Agency of Canada, which is requesting $8 billion, and Treasury Board Secretariat, which is requesting $7 billion. Of the $142 billion in total funding requested, Treasury Board has indicated that just over $22 billion is COVID related.
Unlike the supplementary estimates documents last year, the Main Estimates document this year does not identify COVID-related initiatives. Subsequent to the tabling of the Main Estimates, the government included on its website a listing of the COVID-related initiatives.
I have commented many times on the difficulty in tracking government spending, including COVID-related spending. I have raised the matter with Senator Gold on several occasions in this chamber, as well as with the Minister of Finance, the President of the Treasury Board and with government officials when they appeared before the Standing Senate Committee on National Finance.
While this has been an issue for me, the government’s own website acknowledges the problem. The website reads:
Do you understand the process the government uses to spend your tax dollars? If you’re a little foggy about it, you’re not alone. Many Canadians don’t understand how public money is directed to programs and services, or how to track government spending.
That’s why, over the past few years, we have taken steps to demystify the process and make it easier for people to hold the government to account for its spending decisions. . . .
The website goes on to reference the estimates reform project, which was initiated around 2016. One of the objectives of the project was to better align the Main Estimates with the federal budget. This was an ongoing problem for parliamentarians, and the government was committed to resolving the problem.
Prior to 2018, and again this year, the Main Estimates were tabled before the budget. This year, for example, the Main Estimates were tabled in February and the budget was tabled in April. As a result, the Main Estimates do not include any new budget initiatives; rather, budget initiatives are to be included in future supplementary supply bills.
This presents a problem because we have to continually cross-reference the budget document with future supply bills. This year is extra challenging because the budget initiatives included in Supplementary Estimates (A) are not all identified.
In addition, the format of the budget has changed this year, so it is not evident which organization is to receive funding for each budget initiative. We have to go back and read the commentary on each budget initiative to identify which organization or organizations are to receive the funding.
In 2018, as part of the estimates reform project, the government tried to better align Main Estimates with the budget by tabling the Main Estimates after the budget. All budget initiatives were included in Main Estimates in one vote, called “vote 40.” Treasury Board managed vote 40, and as each initiative was developed and subsequently approved, Treasury Board transferred the money out to the respective organizations.
The following year, 2019, the government further refined the process. Each budget measure had its own vote in its respective organization, and a brief description of the budget initiative was included under the respective organization in the Main Estimates document. The funds were held separately until the program details were approved. This process not only identified the budget initiative in the estimates document, but it also provided parliamentarians with a better opportunity to examine individual budget initiatives and provide oversight.
However, when the Senate Finance Committee met with the President of the Treasury Board after the 2019 Main Estimates had been tabled, she told us that the estimates reform project was a two-year pilot, that the pilot had now ended and that future initiatives would rest with the new Parliament. Unfortunately, the estimates reform project has been abandoned and we are back to the same situation that existed prior to 2018, trying to align the budget with the estimates document.
This year, Treasury Board provided a chart in the Main Estimates document, reconciling the Main Estimates with the expenses in the Fall Economic Statement. In the Supplementary Estimates (A) document, Treasury Board has similarly provided a chart reconciling Supplementary Estimates (A) with the expenses in the budget. However, these charts are merely a tool to help us navigate our way as we review the government’s spending plans.
There have been a few improvements. The government finally reinstated the COVID-19 reports that were discontinued last August, but we had to wait eight months for their reinstatement. The individual COVID-related initiatives, which were not identified in this year’s Main Estimates, have now been disclosed on the government website. The individual Budget 2021 initiatives, not all of which were identified in this year’s Supplementary Estimates (A) document, were provided at the request of the Senate National Finance Committee.
However, more remains to be done. This is not a problem just for parliamentarians. The government itself has acknowledged the problem. The government should reinstate the estimates reform project, pick up where they left off in 2019 and engage with parliamentarians on this important issue: understanding how to track government spending.
The Standing Senate Committee on National Finance commenced its review of the Main Estimates on May 4 and we will continue our review into the fall. However, the committee has received testimony from three departments, and I will briefly comment on some of those discussions. I won’t repeat what Senator Gagné said in her opening remarks, but I would like to make reference to a couple of departments.
The first is the Department of Transport, which is requesting $1.8 billion. In addition to the Department of Transport, the minister is also responsible for VIA Rail, $769 million; the Canadian Air Transport Security Authority, $567 million; and Marine Atlantic, $149 million. Each of these organizations has their own funding requests in the Main Estimates, and departmental officials were able to provide information in response to questions on these organizations. Of the $1.8 billion requested by the department, $960 million is for grants and contributions, $742 million is for operating and $122 million is for capital expenditures.
Officials informed us that the Minister of Finance, and not the Minister of Transport, was the lead department for the recent agreement with Air Canada, although the Department of Transport does provide support. Discussions with other airlines, such as WestJet, are ongoing and, as officials said:
. . . assistance can be available to those airlines, but that also depends upon ensuring that customers are able to access refunds for any tickets they might have purchased and have not been able to use.
While $58 million is being requested for air services support to remote communities, officials indicated that discussions are ongoing and include a restart of a number of routes that had been discontinued during the pandemic. This $58 million is in addition to a number of initiatives outlined in the Fall Economic Statement, including $206 million for the Regional Development Agencies for a new Regional Air Transportation Initiative and $186 million for the Airports Capital Assistance Program, which is intended to support small and regional airports in investing in health and safety infrastructure.
Officials also reassured the committee that part of the negotiations with Air Canada included restarting routes that Air Canada had served previously, including Air Canada entering into interline agreements with other carries to provide service. Transport officials said they were “committed” to ensuring that service is available to these communities.
Many senators have received emails or other correspondence from employees of NAV CANADA concerned about layoffs. Officials said that NAV CANADA is a private, not-for-profit company, and while NAV CANADA reports are tabled in Parliament by the Minister of Transport, there is no direct oversight.
However, the department said they are working closely with NAV CANADA to ensure essential coverage in remote communities during the pandemic, even though the number of flights and passengers have declined.
Departmental officials provided an update on the Lac-Mégantic bypass, which is estimated to cost $133 million. The department is working with CP Rail to obtain the necessary regulatory approval to ensure construction starts in the spring of 2022 to meet the completion date of 2023. The federal government has indicated that they will pay 60% of the cost of this project. They also indicated that they are taking a number of measures since the tragedy by hiring more inspectors and carrying out thousands of inspections on tracks. Efforts will also be made to collect data to identify the areas that are at the highest risk.
The other agency I’d like to comment on is the Public Health Agency of Canada. Senator Gagné also spoke regarding that organization. They are requesting $8.7 billion in these Main Estimates compared to $641 million in the Main Estimates last year. That indicates the financial impact that COVID-19 has had on the Public Health Agency of Canada.
Of the $8.7 billion, $5 billion is for vaccines and $1.7 billion is for protective and medical equipment, including PPE, medical equipment and supplies to meet the needs of provinces, territories and Indigenous communities. The remaining $2 billion is for a number of other initiatives, including new positions related to the response to COVID; border and travel health measures and isolation sites; vaccine deployment; and vaccine information campaigns.
That concludes my remarks on Bill C-33, but I would like to end by saying that having met with departmental officials and also the minister at times, they are responsive to the requests for additional information. However, I do really feel that the pilot project for estimates reform needs to start up again.
It would also be advantageous to the government if they spoke to parliamentarians who are using these financial documents to ask what kind of suggestions they might have to make the documents more easily understandable, as well as how to track different types of schedules and different types of expenditures.
I know that, personally, we did go back. In the Standing Senate Committee on National Finance I asked for a breakdown of some of the numbers in the Main Estimates or supplementary estimates, and they responded and provided the information. However, if they were to come and solicit information from parliamentarians, they could provide other suggestions that would really have a big impact on how we review those documents.
Thank you very much, honourable senators.
Are senators ready for the question?
Is it your pleasure, honourable senators, to adopt the motion?
Some Hon. Senators: Agreed.
An Hon. Senator: On division.
(Motion agreed to and bill read third time and passed, on division.)
