Thank you, Madam Chair and members of the committee, for inviting me to address you today.
As mentioned, I work at the Department of Finance as assistant deputy minister of the economic development and corporate finance branch. My role is to support the Minister of Finance in making funding and policy decisions on matters related to agriculture, fisheries, transport, infrastructure, defence, regional development, innovation, science and technology, natural resources, and the environment.
The Department of Finance is the government's primary source of analysis and advice on Canada's economic and financial affairs. In certain policy areas, the department is the lead within the Government of Canada. The department has the lead responsibility for policy development on tax and tariff legislation, major federal transfers to the provinces and territories, the legislative and regulatory framework for the financial sector, and representing Canada within international financial institutions. The department also provides analysis and advice on the economic merit and fiscal implications of policy and program proposals developed by other departments. Departmental officials serve as members of a broader team of federal officials from the Privy Council Office and Treasury Board Secretariat that reviews options for and the implications—economic, social, and environmental—of proposals that are presented to cabinet.
These two roles as a lead on certain policy areas and as a central agency have shaped the department's activities with respect to the Federal Sustainable Development Act.
The federal sustainable development strategy for 2013-16 has four priority themes. The Department of Finance is not the departmental lead on any of those themes. Finance has, however, established implementation strategies related to the goals and targets under theme I and theme III of the federal sustainable development strategy, consistent with its lead in certain policy areas.
In particular, with respect to theme I, “Addressing Climate Change and Air Quality”, the department has advanced as an implementation strategy the accelerated capital cost allowance for clean energy generation equipment, which provides a financial benefit by deferring taxation for businesses that invest in clean energy generation and energy conservation equipment.
Also in support of theme I, a green levy is imposed on certain fuel-inefficient passenger vehicles available in Canada. The levy is payable by manufacturers or importers of new vehicles delivered after March 19, 2007, and by importers of used vehicles if the vehicle was originally put into service in any jurisdiction after March 19, 2007. The Canada Revenue Agency and the Canada Border Services Agency are responsible for the administration of the levy.
Under theme III on protecting nature and Canadians, the Department of Finance delivers the ecological gifts program, which provides tax assistance for donations of ecologically sensitive lands.
Finally, under theme IV, waste and waste management, the Department of Finance has a range of actions to reduce waste and implement sustainable practices for its asset management, largely focused on green procurement.
I am pleased to note that the Department of Finance's new building at 90 Elgin Street recently received LEED gold certification.
The department's most important contribution to sustainable development lies in the development of policies and advice to support a strong economy and sound public finances for Canadians. Given the Department of Finance Canada's focus on fiscal issues and its role in the development and management of major transfers, the department has established social and economic goals and plans activities that supplement the federal sustainable development strategy and contribute to sustainable development.
The supplementary goals include the following: goal one, promoting fiscal sustainability and a high standard of living for future generations; goal two, strong social foundations; and goal three, integrating sustainable development considerations in policy-making.
As the assistant deputy minister within Finance Canada responsible for federal environmental departments and agencies, including Environment and Climate Change Canada, Parks Canada, and the Canadian Environmental Assessment Agency, I am also the departmental champion of sustainable development.
My branch coordinates the preparation of the Department of Finance’s sustainable development strategy under the Federal Sustainable Development Act, as well as the reporting of Finance’s contributions and activities. In the challenge role function, we contribute to the development of sustainable development policy by reviewing cabinet and funding proposals pertaining to the Federal Sustainable Development Act and its implementation. I am also responsible for championing the cabinet directive on the environmental assessment of policy, plan, and program proposals within the Department of Finance.
Strategic environmental assessments are a key policy tool for evaluating the potential environmental effects of proposed policies, plans, and programs and support informed decision-making. SEAs have been required to consider how proposals affect the achievement of federal sustainable development strategy goals and targets since 2010. The Department of Finance Canada implements the cabinet directive by ensuring that a preliminary strategic environmental assessment has been conducted for a policy, plan, or program on which the Minister of Finance is asked to make a decision.
For policies, plans, or programs where Finance is the policy lead, a preliminary scan of the proposal is completed to determine whether the proposal will result in important environmental effects. If the results of this scan indicate that the proposal will have significant impacts on the environment, a full SEA is completed. A ministerial briefing on the proposal includes a statement that environmental effects have been considered in the development of the proposal and it provides a summary of the conclusions of the analysis.
Annual training sessions are offered on Finance’s strategic environmental assessment processes, and within the department each branch is required to identify a coordinator, and SEAs are collected on a quarterly basis for reporting within the department’s performance report. In 2014-15, the department completed 202 preliminary scans and four full SEAs. A total of 45 Finance employees attended two SEA training sessions that were held in fall 2015.
As a central agency, the Department of Finance reviews proposals put forth by other government departments and ministers and provides advice to the Minister of Finance on funding decisions. Included in this advice are the results of an SEA, which is conducted by other government departments as required under the cabinet directive. Finance also works with departments and agencies to ensure that the directive has been fully considered during the development of memoranda to cabinet.
Finally, while the department's general mandate is most evidently linked to the economic and social pillars of sustainable development, the department continuously strives to recognize the implications of its analysis and advice on all aspects of sustainable development and to take into account the linkages between economic, social, and environmental sustainability. I hope that provides you with a clear picture of the Department of Finance Canada’s mandate and role with respect to environmental and sustainable development policy development.
Thank you, Madam Chair.