Thank you, Mr. Chairman.
I do have some remarks, and I was concentrating in my opening remarks on Treasury Board vote 35, but more generally, you may have questions that go beyond that.
Good morning everyone.
I would like to thank the honourable members of the committee for the opportunity to speak with you about the new central vote introduced in the main estimates for 2009-2010, Treasury Board Vote 35.
The Minister of Finance said that stimulus spending needed to begin flowing within 120 days of the January 27 budget. That is before June and preferably sooner. It's important that funds flow as soon as possible to have the desired impact on the Canadian economy. Due diligence, of course, must be respected.
Funding for budget initiatives typically comes from two sources of funds: the Budget Implementation Act and supplementary estimates. In this case, this year and in most years, the short gap between the tabling of budget 2009 and the tabling of main estimates for 2009-10 did not allow sufficient time for departments and agencies to develop detailed program plans and seek funding for initiatives outlined in Canada's economic action plan through the main estimates.
In the past, departments had to wait until December to receive cash through supplementary estimates to implement initiatives presented in budgets tabled in late February or early March.
In effect, departments had to manage new spending on budget initiatives within their existing budgets through much of the fiscal year. Given the scale of the stimulus spending in budget 2009, that would not be possible for many departments and agencies involved in delivering budget initiatives this year. This spring we will therefore again be tabling supplementary estimates A in May to seek Parliament's approval to implement those budget initiatives that are ready for implementation.
The central vote, TB vote 35, is a bridge to supplementary estimates to ensure smooth implementation of budget initiatives to departments requiring funds before supplementary estimates.
The maximum allowable amount of 11/12ths of the vote, $2.75 billion, was approved through interim supply. The remaining 1/12th, $250 million, would be made available for potential allocation between the date of full supply, tentatively set for June 9, and June 30.
The objective of TB vote 35 is to ensure that departments have the resources and authorities required to implement budget initiatives. Consequently, funding is now available for allocation to organizations for the immediate implementation of initiatives identified in chapter 3 of budget 2009.
Let me now turn to the process for accessing the vote.
As mentioned, TB vote 35 is intended to serve as a bridge until Parliament's approval of supply in June and December. Treasury Board ministers are authorized to allocate up to $3 billion for budget initiatives directly to departments that have provided us with demonstrated forecast requirements in advance of the supply periods.
Allocations made under Vote 35 can occur from the period of April 1 to June 30, consistent with Treasury Board approval.
Each initiative seeking funds from this vote requires a Treasury Board authority. Treasury Board officials will review cashflow requirements to ensure that only funds that are required before the next supply period are recommended for allocation. Funds unallocated at the end of June will lapse in TB vote 35, and departments will seek to obtain funding in accordance with normal supply periods thereafter.
If I might, I'll mention reporting again.
A number of reporting mechanisms will be employed to ensure accountability and transparency around the use of vote 35. The government has committed to table regular quarterly reports in Parliament on the implementation and impacts of the budget. Included in these will be reports on allocations from vote 35. TBS will also report on the use of the central vote, as it does for all others, through summary tables and supporting narratives in supplementary estimates documents tabled in Parliament.
Departments and agencies will be required to report on all initiatives, including those funded with allocations from vote 35, in their departmental performance reports. In addition, TBS officials and/or the President of Treasury Board will appear before committees and respond to any questions that committees or members may have on the use of the vote.
In closing, I would like to thank you for allowing me to provide you with an overview of Vote 35.