Appropriation Bill No. 3, 2020–21
Second Reading
June 22, 2020
Moved second reading of Bill C-19, An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2021.
He said: Honourable senators, I rise to speak on second reading debate on Bill C-19, An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2021.
Colleagues, let me start by thanking the Standing Senate Committee on National Finance for carrying out a diligent and thorough study, under the leadership of its chair, Senator Mockler.
Last week, the committee heard from more than 19 officials from various departments and agencies, including Indigenous Services Canada, the Public Health Agency of Canada, the Department of National Defence and the Canadian Armed Forces, and Public Services and Procurement Canada, to name but a few.
As honourable senators know, every year, the government tables supplementary estimates outlining its additional planned expenditures. These supplementary estimates are incremental to the Main Estimates.
The supplementary estimates present information on federal spending requirements that were not sufficiently developed in time for inclusion in the Main Estimates or were refined to account for new developments.
These include a summary of the government’s incremental financial requirements, as well as an overview of major funding requests and horizontal initiatives.
The information contained in the supplementary estimates ensures continued accountability on the use of public funds to deliver programs and services. The 2020-21 Supplementary Estimates (A), officially tabled in the Senate last week, bring forward $6 billion in operating and capital expenditures, grants and contributions for 42 federal organizations as reflected in Bill C-19. These supplementary estimates lay out the spending plans to support current priorities.
Among the priorities are the economic and public health measures in response to the unprecedented impact of the COVID-19 pandemic. The supplementary estimates also include measures to support and provide services to Indigenous peoples across the country, make up the Public Service Disability Insurance Plan deficit, and ensure air transport security.
Taken together, these voted expenditures are 5% higher than those in the 2020-21 Main Estimates tabled last winter.
The 2020-21 Main Estimates requested the authority to spend $125.1 billion in voted budgetary expenditures and $87.2 million in voted non-budgetary expenditures. Accordingly, these supplementary estimates include forecasts of statutory expenditures totalling $81 billion. This includes information on spending that was authorized by parts 3 and 8 of the COVID-19 Emergency Response Act, which were presented, debated and passed by this chamber in March and April respectively. This now well-known emergency spending is helping Canadians across the country in the midst of the COVID-19 pandemic. Parliament is not being asked to vote on them again in the Supplementary Estimates (A).
Honourable senators, I believe it is important to outline the distinction between voted and statutory expenditures when going through the supply process. Voted expenditures require annual approval from Parliament through an appropriation bill, in this case Bill C-19. Statutory amounts, on the other hand, in both the main and supplementary estimates, are presented to parliamentarians for information because these have already been approved by both houses through legislation. Of note, these supplementary estimates request $1.3 billion in new voted spending that responds to the impact on Canadians due to COVID-19, and this accounts for about 22% of the $6 billion total in voted spending.
Some of the important funding initiatives provided for in Bill C-19 include: $405.2 million for the national medical research strategy to fund tracking and testing of COVID-19, to develop vaccines and therapies and to enhance clinical trials and biomanufacturing capacity in Canada; $302.4 million to various federal organizations to support small- and medium-sized businesses, including the Atlantic Canada Opportunities Agency, the Canadian Northern Economic Development Agency, the Department of Industry, the Department of Western Economic Diversification, Canada Economic Development for Quebec Regions, and the federal economic development agency for southern Ontario; $274.5 million for the Canadian Institutes of Health Research, the Department of Industry, the Department of Western Economic Diversification and National Research Council Canada for emergency research and innovation on medical countermeasures; $87.4 million for the Canadian Northern Economic Development Agency, the Atlantic Canada Opportunities Agency, the Department of Industry and the Canada Economic Development for Quebec Regions and for the Community Futures Network of Canada, which assists small businesses in rural communities; and $59.3 million to help the Canadian Red Cross support individuals, families and communities during the pandemic.
Other key initiatives support a variety of commitments by the Government of Canada, including reconciliation with Indigenous peoples, supporting and bolstering military capacity, as well as transportation security. These include: $585.8 million for the Department of National Defence to fund the Joint Support Ship Project to safely replace vessels that have reached the end of their lifespan; $481.2 million for the Department of Crown-Indigenous Relations and Northern Affairs to fund the Federal Indian Day Schools settlement agreement; $468.2 million for the Department of Indigenous Services to support the safety and well-being of First Nations children and families living on reserves; $395.8 million for the Treasury Board of Canada Secretariat to support the Disability Insurance Plan; and $312.2 million for the Canadian Air Transport Security Authority and the Department of Transport to fund aviation security screening services. A detailed listing of legislated amounts reported through these estimates, as well as a complete breakdown of planned expenditures by standard objects, such as personnel, professional services and transfer payments, is also published online.
Furthermore, every two weeks the Minister of Finance reports to the House of Commons Standing Committee on Finance to provide an update on the government’s main initiatives to help Canadians during the COVID-19 pandemic. These updates were provided to the Standing Senate Committee on National Finance, which plays an important role in overseeing the government’s economic response to the pandemic. Additionally, as always the government will present the actual expenditures from the public accounts at the end of the fiscal year.
These new expenditure plans set out in the supplementary estimates will continue to provide relief to those affected by COVID-19 while supporting the strategic initiatives and programs introduced by the Government of Canada. Thank you.
Honourable senators, the Supplementary Estimates (A) were studied by the Finance Committee but only for four hours, which is far short of the time we usually spend. By the time we have studied Supplementary Estimates (A) in previous years, we would have finished our study of Main Estimates. Our questions on Supplementary Estimates (A) usually build on the Main Estimates, but we haven’t studied the latter yet, so it’s almost like Supplementary Estimates (A) were just dropped into the National Finance Committee, and the building blocks from the Main Estimates just weren’t there.
You did mention the bi-weekly reports the government produces and that they provide to the Finance Committee at the House. I read them. I call them “bits and pieces,” because that’s what they are — just a listing of information. It’s not a fiscal update or anything. There are numbers there. When you read the numbers — the example I gave with the borrowing — like, what’s in that number? You can’t tell, and you can’t find anybody to give you an answer. It’s okay to get but it’s not great.
My last comment on that, Senator Gold — you made the distinction — you were talking about — well, it’s $87 billion, and I think you said around $80 billion was statutory and already approved, so it’s only $6 billion voted. But the $6 billion is comparable to supplementary estimates in previous years, but the statutory — the $80 billion — that $80 billion — the statute is a new statute. I think it was Bill C-13 that was passed in March or April. So really, the Finance Committee should have really needed more time to get a handle on that $80 billion. It is a new statute. But I’ll have more in my third reading speech. Thank you.
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 second time, on division.)
Honourable senators, when shall this bill be read the third time?
(On motion of Senator Gold, bill placed on the Orders of the Day for third reading at the next sitting of the Senate.)
