Industry Committee on April 18th, 2013

[Gary Goodyear, Conservative, Cambridge, ON]

Of course.

[Geoff Regan, Liberal, Halifax West, NS]

According to the recently tabled report on plans and priorities, it appears that FedDev will see budget cuts next year. We've heard a bit already. How much will they be?

[Gary Goodyear, Conservative, Cambridge, ON]

FedDev, as you probably know, did go through a process of finding efficiencies. I will tell my president to give you the exact numbers.

There were some decreases in the grants and contributions. We found efficiencies in how we did business, and we amalgamated one office from Stratford to Kitchener. That's the genesis of the savings, and I will defer to my colleague.

[Dr. Bruce Archibald, President, Federal Economic Development Agency for Southern Ontario]

In terms of budget 2013-14, our actual net for grants and contributions went up $5.9 million year over year, but that was actually a combination of a number of things. We had added $24.8 million for the community innovation infrastructure fund, an increase of $1.5 million for the Brantford remediation project, and those were offset by a decrease to our southern Ontario development program of $18.8 million and a decrease of $1.25 million in the community futures program and $0.2 million for the economic development initiative, which were all part of budget 2012's budget exercise.

In terms of operating dollars, our operating dollars decreased in 2013-14 by $1.1 million as a result of budget 2012. Then $0.4 million went to Shared Services Canada; $0.1 million was transferred to Treasury Board, which is now going to look after our audit function in the regional agencies; and $0.2 million went to the employee benefits program.

[Geoff Regan, Liberal, Halifax West, NS]

For the overall, I asked how much it would be. It's pretty hard to add and subtract that fast, but am I right that it's reduced by about $14 million net? Is that where we are?

[Gary Goodyear, Conservative, Cambridge, ON]

No, the net is up.

[Dr. Bruce Archibald]

It depends which piece we're looking at.

[Geoff Regan, Liberal, Halifax West, NS]

You mentioned the $5.9 million increase in grants and contributions, a decrease of $18.8 million, a decrease of $1.25 million, a decrease of $0.2 million.

Are you saying that there is a net increase? The impression you get from the report on plans and priorities is that it actually is a decrease.

[Dr. Bruce Archibald]

If you look at the main estimates for 2013-14, it's $194 million, and main estimates for 2012 were $188.9 million. That's sort of the year-over-year comparison on the main estimates.

[Geoff Regan, Liberal, Halifax West, NS]

I'm looking at these numbers from table 8, the main estimates for the Federal Economic Development Agency for Southern Ontario. It says the estimates to date for 2012-13, so the previous year, were $261 million. The main estimates for 2013-14, are $222 million. That's a decrease, is it not?

[Dr. Bruce Archibald]

It is a decrease, yes.

[Linda Cousineau, Chief Financial Officer, Finance, Information Management and Informatics , Federal Economic Development Agency for Southern Ontario]

I can take that. I'll step in.

The difference is we got in-year funding through budget 2012, and that included a top-up to our southern Ontario development program. As well, the estimates to date don't include the budget cuts that happened in-year to our programs.

[Geoff Regan, Liberal, Halifax West, NS]

On that, it appears we're looking at a reduction of $920 million. From this year's budget it indicates a reduction of $920 million over the following five years. Does that represent a 20% annual cut for FedDev, compared to the previous five years?

[Gary Goodyear, Conservative, Cambridge, ON]

Actually, if I may, honourable colleague, I think we're jumping the gun a little bit. If I can, I'll try to explain that $920 million. This is something we know about. FedDev in the past has been the administrator of other funds, which might increase the numbers of previous years. As you know, in this budget there is an announcement of some significant infrastructure money in building Canada. We do not know yet where that administrative responsibility might land.

FedDev over the last number of years, colleague, has handled things like the recreational infrastructure program, the community adjustment fund, the community innovation investment fund, CIIF as we call it. These are all added to those numbers.

What you're looking at right now is the pure $920 million.

[Geoff Regan, Liberal, Halifax West, NS]

The $222 million for this current fiscal year, that's not simply your bare-bones budget. There are a lot of other things. Some of those other funds you're administering are in there. It makes it hard to tell how much you actually have for the core purposes you're engaged in.

[Gary Goodyear, Conservative, Cambridge, ON]

Us too.

[Some hon. members]

Oh, oh!

[Gary Goodyear, Conservative, Cambridge, ON]

We are very happy because we do in fact—if I may just say this—have an agency that is ready to operate. It is extremely experienced on managing large volumes of applications, dealing through those, writing up contribution agreements, and negotiating them. It isn't unusual for us to be asked to manage another program, because we do it so well, frankly.

[Geoff Regan, Liberal, Halifax West, NS]

If you're having difficulty understanding what funding you're going to have over the next five years, and we, as parliamentarians, are trying to assess the estimates, and based upon difficulties parliamentarians have had the last few years in determining what government spending is going to be, even what it has been sometimes, you'll understand how difficult it is when I can't get a clear answer and you aren't able to give me one to that kind of question.

[Gary Goodyear, Conservative, Cambridge, ON]

Quite clearly, the reason is that's why we have supplementary estimates (A), (B), and (C). That's why every few months these estimates are modified to reflect what is added to the agency.

[Geoff Regan, Liberal, Halifax West, NS]

We see budget changes—I was going to call them budget cuts, but it's a little fuzzy. Clearly we see a change, as I mentioned, between this year and next. At any rate, will there be employment reductions, or will there be a reduction or increase in transfers to your clients?

[Gary Goodyear, Conservative, Cambridge, ON]

Maybe I can let you answer that. Again, it depends on what we're looking at. I don't want to jump the gun here, but some of our employees are—

I apologize. I'll let you handle that.

[The Chair, Conservative, David Sweet]

Be as brief as possible, please.

[Dr. Bruce Archibald]

With the announcement in budget 2013, there's $920 million for the next five years. The operating budget for the agency, grants and contributions and operating, is $184 million each year. What we don't know at this point is whether or not there will be added elements for infrastructure delivery or other programming that could come from other departments in the federal government, which we often deliver on their behalf. That's the base piece for us for the next five years.

[The Chair, Conservative, David Sweet]

Thank you, Mr. Archibald and Mr. Regan.

We'll now move on to our five-minute round of questions. For that round we'll begin with Mr. McColeman.