Government Operations Committee on April 30th, 2012

[Mike Wallace, Conservative, Burlington, ON]

I'm questioning the Canadian Heritage ones. I don't know why those are here, because it's not the mandate of the committee.

We don't have the authority—

[The Chair, NDP, Pat Martin]

I'll tell you why. They have to deal with the Public Service Commission and the Public Service Staff Relations Board, etc.

Mike, I don't think we need to have this discussion now.

[Mike Wallace, Conservative, Burlington, ON]

I'm not really debating anything. I'm being interrupted by you, but other than that—

[The Chair, NDP, Pat Martin]

You seem in an argumentative mood.

[Mike Wallace, Conservative, Burlington, ON]

I think you are.

I think it's a good point you're making. My point was, to Ms. Duncan's request, let's invite those agencies that weren't here to answer on days when we are dealing with the estimates of other departments.

Thank you, Mr. Chair.

[The Chair, NDP, Pat Martin]

We should have answers to the questions put by Ms. Duncan prior to voting on the main estimates; I agree.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

For a point of clarification, Mr. Chair, I won't push the matter if we're not voting on those votes. It was my understanding that we vote on votes 5, 10, 15, 20, and 25. If we do, then those agencies are relevant.

[Mike Wallace, Conservative, Burlington, ON]

I thought we already agreed that we're not voting on them today.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Oh no, not today, but we will vote on them.

[Mike Wallace, Conservative, Burlington, ON]

Oh, eventually we will, yes.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

I think it's our right and obligation to be informed, and I would like to put on the record that I'd like to have the head of CEAA.

[The Chair, NDP, Pat Martin]

The head of....?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

CEAA, the Canadian Environmental Assessment Agency, with the Department of the Environment, because they are a separate agency and that's one I can think of off the top of my head.

[Mike Wallace, Conservative, Burlington, ON]

Do we have estimates in the estimates book?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

I don't know.

[The Chair, NDP, Pat Martin]

The clerk has made a note of it and we will endeavour to give you satisfaction on that, Linda.

Okay, I think there's general....

Ron, go ahead.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

I was observing the conversation you two were having; it's kind of indicative of our whole bigger meeting we're having, looking at the process. In Australia, they submit the questions in writing in advance, so then the minister of the department has those questions. I think that's another good recommendation as we move forward in our report.

[The Chair, NDP, Pat Martin]

I think you're right. The difficulty we're having today is sort of a graphic illustration of the larger problem we have in effectively dealing with the estimates. So it's a good case study we're giving ourselves, as we speak.

Anyway, we now have our next round of witnesses. I think we are in agreement. John, you've made a good point. We concur that we will postpone the taking of the votes, the votes that have been referred to this committee.

We're going to go ahead and welcome our next witnesses, as it's roughly 4:30 p.m. here.

This is the Canadian International Development Agency, dealing with their estimates.

Welcome to Greta Bossenmaier, senior executive vice-president at the Canadian International Development Agency. You are very welcome, Ms. Bossenmaier. Usually we give you five or ten minutes to make opening remarks and then open it to questions from the committee members.

So if you'd like to introduce your delegation, you have the floor.

[Greta Bossenmaier, Senior Executive Vice-President, Canadian International Development Agency]

In May 2009, CIDA concentrated its focus on three thematic priorities to frame its international assistance efforts, namely, increasing food security, securing a future for children and youth, and stimulating sustainable economic growth. These priorities apply across all of CIDA's program activities and integrate environmental sustainability, gender equality, and governance.

With respect to food security, ensuring access to safe and nutritious food is one of the most effective ways to reduce poverty in developing countries. To advance this priority, CIDA is focusing on hunger and malnutrition for some of the world's most vulnerable people. CIDA supports sustainable agricultural development, food aid and nutrition, and research and development to make significant improvements to food security outcomes. For example, in Ghana, CIDA is supporting food security initiatives in the north, where the situation is most severe, investing in agricultural research and business, and working to strengthen farmer-based organizations.

This support has contributed to a 5.3% growth in the country's agricultural production and growth in key staple crops.

In the context of securing a future for children and youth, the issues faced by children and youth are core to our development agenda and to poverty reduction.

CIDA places the well-being of children and youth at the centre of its international efforts to improve human development outcomes. This thematic priority includes a particular focus on child survival, including maternal health, access to quality education, and safety and security.

For example, in Haiti, CIDA support for the World Food Programme enabled the provision of a hot daily meal to 400,000 primary school students. This has helped to reduce chronic hunger and malnutrition among school-aged children and has increased primary school enrolment and attendance rates.

CIDA's sustainable economic growth strategy focuses on stimulating lasting, inclusive, and sustainable economic growth. In order to create employment and economic opportunity, to raise incomes, to increase public revenue and generation, and to reduce poverty in developing countries, CIDA prioritizes activities that build economic foundations, grow businesses, and invest in people.

To achieve development results, CIDA collaborates with a wide range of Canadian and international partners, including private, governmental, non-governmental, and multilateral organizations.

Mr. Chair, I would now like to turn to CIDA's main estimates. I would note to members of the committee that as the main estimates were finalized in advance of the tabling of the economic action plan 2012, decisions concerning CIDA announced in the plan will be reflected going forward in the agency's quarterly financial reports and through established reporting mechanisms.

CIDA's budgetary expenditures presented in the main estimates for 2012 are $3.4 billion. Of this amount, a sum of $3.1 billion requires approval by Parliament.

The remaining amount of $273.7 million represents statutory forecasts and is provided in the estimates for information purposes. The vast majority of these statutory forecasts represents the amount for the encashment of notes issued to the development assistance funds of international financial institutions. Issuances and encashments of notes are used to finance the concessional lending programs and grants of international financial institutions, such as the Asian Development Bank, the African Development Bank, the Caribbean Development Bank, and the Inter-American Development Bank.

As compared to CIDA's main estimates for 2011, the 2012 budget authorities are $22.9 million, or 1% less than they were in 2011.

Some of the factors contributing to this net decrease of budgetary authorities are: a transfer of $9.2 million to Shared Services Canada to pool existing resources from across government, to consolidate and transform its information technology infrastructure;

a decrease of $6 million to reflect the end of additional funding received in fiscal years 2010 and 2011 that addressed higher operational costs incurred during that time with respect to our programming in Afghanistan; a net reduction of $4.5 million in the aid budget resulting from a number of adjustments, such as a reduction as a result of a transfer to the Department of Foreign Affairs and International Trade for the Canada Fund for Local Initiatives—to explain, the Canada Fund supports small-scale development projects in a number of countries, while at CIDA, the Canada Fund was managed within the various country programs; the sunsetting of funding for a rural water supply and sanitation program, offset by increased funding for maternal, newborn, and child health; and net transfers from the Department of Foreign Affairs and International Trade to reflect adjustments to assessed contributions and the cost of CIDA's operations abroad.

For the past several years, CIDA has prioritized improving the effectiveness of international assistance.

Moving forward, CIDA will continue to deliver on its mission to lead Canada's international effort to help populations living in poverty. We will continue our efforts to make CIDA's aid more focused, effective, accountable and transparent.

We will continue to focus our efforts where they have the greatest impact. This means that we will continue to deliver on Canada's Muskoka initiative commitment to improve the health of mothers and children. It means that we will continue to advance our work on increasing food security, securing the future of children and youth, and helping developing countries achieve prosperity by growing their economies and building new opportunities for their citizens through sustainable economic growth initiatives.

Lastly, it means that the agency will continue to assist those affected by natural disasters or humanitarian crises, as we are currently doing in the humanitarian responses in both the Sahel region and the Horn of Africa.

Mr. Chair, in the interest of time, I will end my remarks here.

My colleagues and I are available to respond to your questions.

[The Chair, NDP, Pat Martin]

Thank you very much, Ms. Bossenmaier, for the presentation.

We'll go directly into questions from committee members.

First, for the NDP, Denis Blanchette for five minutes.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Thank you, Mr. Chair.

I want to thank our guests.

My first question concerns what you refer to as a reduction of $4.5 million in the aid budget resulting from a number of adjustments. Finally, what this means is that the money will simply be transferred elsewhere. I would like you to explain why.

[Greta Bossenmaier]

Thank you. I am going to ask our representative from the financial group to reply.

[Arun Thangaraj, Director General, Business Planning Resources Management and Systems, Canadian International Development Agency]

The $4.5 million decrease in grants and contributions was due to several factors, as Mrs. Bossenmaier indicated—the end of a $12 million three-year program for rural water sanitation, a transfer to DFAIT for the Canada Fund for Local Initiatives. There were also net transfers from DFAIT, one for assessed contributions and members of international organizations. Our membership fees are set, but those adjust depending on the currency valuation.

Because of those changes, there was a transfer to CIDA. We make those payments at the beginning of the year and they are set at the beginning of the year, depending on what the exchange rate was.

[Denis Blanchette, NDP, Louis-Hébert, QC]

So, the $4.5 million do not represent a reduction as such, but simply a transfer of funds. Is that so?

[Arun Thangaraj]

It is a reduction in our overall—