Finance Committee on April 24th, 2007

[Mark Carney]

Yes, I believe that's correct. I will verify that.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Yes, of course. You'd see that the numbers are above 10%. The market's still, in the income trust sector and the energy sector--

[Mark Carney]

In the energy sector, yes, but the energy section, as you know also, is impacted by the price of oil.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Can we get numbers that are accurate, if you can?

We're here to discuss the estimates, so could you take me through the estimates?

We're here to approve the $78 billion of estimates. I understand most of them are statutory, and we've already voted on them. But on the big one, where's there's a $1.2-billion difference, when I look at the health transfers, can you just tell me why there's a $1.2-billion increase? That was according to the health agreement, the health accord, was that?

[Mark Carney]

Yes. As you noted, it's a 6% increase, which is under the 2004 accord, which runs to 2014.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Is that similar to the other increases, like the $300 million in the fiscal arrangements of the Canada social transfer? Is that the same?

[Mark Carney]

The $300 million Canada social transfers is—

[Barbara Anderson]

Sorry, Mark. It's similar. It's the legislated amount.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

It's the legislated amount, but what's in the legislated amount? Is there an increase forecasted for the next number of years?

[Barbara Anderson]

Yes. The legislation expires at the end of this year, and part of the budget proposal is to extend it.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

This is for the Canada social transfer portion?

[Barbara Anderson]

Yes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

If we look at just the operating portion, which is non-statutory, I guess it's vote 1, where the budget's going to go down from $93 million to $89 million, is that correct—that's the department's budget? That's your operating budget?

[Mark Carney]

Yes. You should view it as a—

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

So that's what we should be questioning you on. Correct?

[Mark Carney]

It's a good thing to question on, yes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Yes, okay.

So on the $3.8 million, you're expecting to not have any more panels? Is that it? I see here you had some money put aside for expert panel and fiscal equalization and a task force on money laundering. That's the bulk of the decrease.

[Mark Carney]

That is $4.1 million of the decrease, yes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Are you not expecting to put out any task forces or expert panels or ask for any advice from external sources?

[Mark Carney]

No, we do intend to continue to solicit external advice. In fact, on the issue of international taxation, there was a proposal in the budget to have an independent expert panel to address the broader issues around fairness and competitiveness on the issue of taxation.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Are we going to see those numbers in the supplementary estimates?

[Mark Carney]

If necessary, it would be adjusted in the supplementary estimates, but not materially. Our expectation is not materially.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

So the $89 million that you're going to be spending is pretty well going to cover what you need for operating purposes this year.

[Mark Carney]

That is our expectation, yes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Okay.