Finance Committee on March 1st, 2011

[Richard Case]

There is no charge or administrative charge or commission or anything like that taken. There is a formula that has been developed by our colleagues in the Department of Finance to determine the appropriate allocation to the provinces of the revenue that we collect. So there is sort of a complex formula, I would imagine, that has been developed to look at the total pool of revenue that is brought in now by the agency in a harmonized fashion to determine the appropriate allocation of those revenues back to the appropriate province.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

So would it be fair to say that the entire cost of now administrating HST has not shifted? It is perhaps offset somewhat by the sales taxes from the provinces that come in to the government in that complex formula. Is that....?

[Richard Case]

In terms of the revenue versus the administration cost--our operating cost--those are two entirely separate calculations. The revenue is one thing, and there is a way the Department of Finance deals with and distributes the revenue. With regard to any incremental costs there might be for the CRA to administer that harmonized tax, that is a separate analysis that is done by the agency, and funding is provided through estimates like this for our operations. The two aren't connected.

[The Chair, Conservative, James Rajotte]

Mr. Hiebert, you have a little over two minutes.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Thank you.

I'm just looking at the notes. There is an item under transfer payments, other transfer payments, statutory payments, and it references the “Children's Special Allowance payments”, at $225 million. Can you just help us understand what that money is for?

[Filipe Dinis]

Mr. Chair, the money is for.... I'll give you a point of reference. In 2009-10 there were 53,844 children in custody of individuals or institutions. In 2010-11 the number was 54,975, for an increase of 2%. This is an allocation that's being provided to the institutions in order to provide care for those children.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

That's coming from CRA?

[Filipe Dinis]

The CRA administers that program.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

So it's money that's coming from human resources and development through CRA to the children or...? I don't understand why this would not be under HRSDC.

[Richard Case]

This is an extension of the Canada child tax benefit that's administered by the CRA to individual families. But in the instances where there are children in custody--so that's not a family setting, but children in custody--there is a separate piece of legislation that authorizes the CRA to make similar payments to those individuals and institutions. It's a statutory payment under law.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

That makes sense.

Just briefly, I notice that salaries and wages are up by $37 million, transportation is up by $7 million, and and rentals are up by $13 million. If put in context, those aren't large amounts in reference to the original authorities that were granted, but can you comment on why those increases are there?

[Filipe Dinis]

The increase in wages is the 1.5% increase the employees have received. As it relates to the operating expenditures, etc., it probably reflects the renewal of certain large contracts we have that are covered under the operating budget.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Just going back, a 1.5% increase? I thought the budgets were frozen.

[Filipe Dinis]

The budgets of the departments are frozen, but departments are still obligated to respect the 1.5% increase.

[The Chair, Conservative, James Rajotte]

Thank you.

We'll go to Mr. Szabo again, please.

[Paul Szabo, Liberal, Mississauga South, ON]

In your preparation for today's meeting, did you have a group meeting to review the material?

[Filipe Dinis]

Mr. Chair, I did not. I reviewed the material that was prepared, in consultation with my colleague, Mr. Case.

[Paul Szabo, Liberal, Mississauga South, ON]

Did you meet with anybody to consult about your appearance today?

[Filipe Dinis]

I met with our parliamentary affairs folks who basically assemble the information and prepare the binders for me in terms of getting ready for the committee appearance on the supplementary estimates (C).

[Paul Szabo, Liberal, Mississauga South, ON]

Whom do you report to?

[Filipe Dinis]

I report to the commissioner of the CRA.

[Paul Szabo, Liberal, Mississauga South, ON]

Did you meet with the commissioner?

[Filipe Dinis]

I meet with the commissioner on a regular basis. I didn't meet with the commissioner specifically on the appearance before the committee.

[Paul Szabo, Liberal, Mississauga South, ON]

Did anyone directly or indirectly advise you or suggest to you what you might want to do or not do at this meeting?

[Filipe Dinis]

Mr. Chair, the discussions I had in terms of coming to the committee were in the context of the supplementary estimates (C). In addition to that, the only advice I always get is to be truthful and open with the committee to the extent that I can be.