Government Operations Committee on March 22nd, 2010

[The Chair, Liberal, Yasmin Ratansi]

No, no.

I couldn't figure out what you were doing.

Mr. Gourde.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Madam Chair.

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

With your permission, I would just like to add a brief comment regarding this question.

There will be—as we said—an increase of $10 a month. The total amount is $200 million. We will continue, each successive year, to verify if there is enough money left to continue doing this.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Madam Chair.

Thank you, Minister Day, for being here today. I understand that as the president of Treasury Board, you are a very busy man. I thank you for your generosity.

When you occupied this new position, you certainly established some priorities. What are these priorities?

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

As we said, our priority is to eventually have a balanced budget. However, we will do this by respecting the programs available to citizens all over Canada. We will do it without reducing transfers to the provinces for health and education.

It is very important to continue without reducing the programs meant for the people. Moreover, this must absolutely be done without increasing taxes. Also, it is important to send this message out not only here in Canada, but all over the world. Here, in Canada, we will reduce not only the deficit but the debt as well.

Regarding our debts and our economy, the ratio is 31%. We can look at the situation in other countries. I believe in England, the ratio is 66%. In Japan, it is over 100%. I believe that it is 115%. When there are investments and when businessmen and women see an increase in the debt, they understand that it will be impossible to maintain a reasonable tax system.

In the countries that have a higher debt level, they understand that this will create great difficulties for the economy. This is why many world organizations continue saying that Canada's economic situation is not as risky as that of other countries. This is very important for us, especially in order to see investments continue, domestically and from international sources.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Mr. Day.

The 2010 budget contains a number of measures designed to curb spending growth over the next years. Will that be sufficient to eliminate the deficit?

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

In our opinion, it will be sufficient if we continue to manage very prudently.

We have indicated what our goals and intentions are, and we will continue to evaluate our progress each year. We will do so in order to make the adjustments required should an unexpected world event or economic crisis occur. However, in our opinion, we have implemented a conservative strategy, so to speak, and we will achieve our goals.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Do I have any time left?

[The Chair, Liberal, Yasmin Ratansi]

You have three minutes.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Madam Chair.

As concerns the budget, there have been a number of media reports stating that union leaders are very concerned about the measures affecting pensions in the budget .

Have you met with the unions in order to hear their concerns?

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

Yes, I have met with our union leaders. I have met with some of them individually, and I have also met with them all collectively.

I was very clear. We do not intend to reduce current benefits because members have paid for these benefits. We will maintain them. I think you heard our Minister of Finance, who said that our goal is to review retirement benefits in general.

As you know, our population continues to age. It is happening to me, to you, to everybody. In future, there will be pressure on pension plans. That's why we want to hold far-reaching discussions with union leaders and members in the public and private sectors to ensure that Canadian workers receive guarantees for the future and can continue to have confidence in their pension plans.

[The Chair, Liberal, Yasmin Ratansi]

We'll hear a very brief question, Mr. Gourde, if the minister can give a very brief answer.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Madam Chair.

As concerns the public service, you have spoken in the past about attrition, which will play an important role in reducing future costs.

Can you tell us more about this?

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

We have determined that each year, some 13,000 people, men and women, leave the public service. Most of them do so to retire, but there are many others who leave to continue their careers in the private sector. There are others still who leave to enter politics.

So the figure is close to 13,000. That's a lot of people. I think that this will allow for each department to find creative solutions. If there are people leaving, will all of them have to be replaced, or will we be able to continue to deliver our programs with the remaining staff? This will be a topic of in-depth debate and we will have that debate.

[The Chair, Liberal, Yasmin Ratansi]

Thank you, Minister. I have to cut you off.

Madam Chow and Mr. Dewar will be sharing time. The two of you have eight minutes in total. Who is first?

Ms. Chow.

[Olivia Chow, NDP, Trinity—Spadina, ON]

The G-20 summit is coming in June to the Metro Toronto Convention Centre, which is in the wonderful riding of Trinity—Spadina. The supplementary budget shows $179 million for policing and security costs.

The City of Toronto is very worried and has requested that the federal government post a bond to cover expenses for potential property damage that could occur during the G-20 and for costs incurred by small businesses. The experiences of London and Pittsburgh showed that as a result of protests during the world economic summits those two cities hosted in 2009, there is a need to do so.

So it's very straightforward. Are you going to leave the small businesses on Toronto's waterfront high and dry, or will you compensate them for their losses during the summit and post a bond so they are not worried about what is going to come up? Because economically it is tough out there, and they are worried about economic hardship.

[An hon. member]

[Inaudible--Editor]

[Olivia Chow, NDP, Trinity—Spadina, ON]

Pardon me?

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

We'll overlook that last.... I think that was a rhetorical question.

[Olivia Chow, NDP, Trinity—Spadina, ON]

I didn't even hear it.

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

Madam Chair, security costs are always an issue at international events. They certainly were at the Olympics. Costs are very high when these events are hosted, either here or around the world. I understand projected costs for the summer Olympics in the U.K., for instance, are already somewhat north of €2 billion and probably going up. We believe the federal government has a responsibility in the sharing of those costs. We certainly took that responsibility seriously with the Olympics.

The last time there was a meeting here in Ottawa, for instance, with President Bush, the President of Mexico, and the Prime Minister, there were considerable costs to the City of Ottawa, and the federal government shared the responsibility there. So on the specifics, I'd have to say to my colleague that I'll leave it to our public safety minister to decide what the best approach to that is, some kind of a bond issue or how it's done.

The goal is going to be that there are no damages, and to have security in place so that would be the final result. That's always the goal. It's unfortunate in a society like Canada's, which is very open, where we encourage robust demonstration and robust public displays of either support or lack of support for any particular issue, that there always are people who abuse that and move to violent levels. That's always disappointing. I think whatever cause they're promoting, once they move into the area of violence, they lose sympathy they might have had. Members may have seen and noticed that on the first Saturday of the Olympics in Vancouver, there was a group who masked their faces and were particularly intimidating and violent. It was actually the crowd itself, many of whom were protesters, who pushed back against that.

[Olivia Chow, NDP, Trinity—Spadina, ON]

Minister, I just want to turn my time back to my colleague. Thank you.

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

Thank you.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you, Minister.

Chair, it's good to have the minister here.

I just wanted to talk a bit about.... I was intrigued with his water analogy. I note he has a Kindle there, and I thought he might make use of higher technology than glasses.

If I may, I'm seeing that this is the budget for the PMO and PCO, and I note that they're going to get this much more. My question is, are they going to remain with that much for the next number of years, or are they going to be getting less so that they'll be like the rest of us in the bureaucracy who are going to have cuts?

The question is, will those increases to the PMO remain within this budget parameter you have set here? Yes or no.

[Stockwell Day, Conservative, Okanagan—Coquihalla, BC]

Expenditures moving forward for PCO will be net of the increases, for instance, that we saw for the G-8 and the G-20. So it will be as if that amount is reduced. It will be that reduced amount that they will have to go forward with. Now if there's something extraordinary that happens, like any other department or agency, they'll have to come forward for some special consideration--