Evidence of meeting #22 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was federal.
A recording is available from Parliament.
3:55 p.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very much.
We'll now go to the second round of five minutes each.
We'll go to Mr. Pacetti.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you, Mr. Chairman.
I'm sorry for getting here late and missing the opening remarks by the officials.
I have a quick question. What is the difference between the communities fund that the present government has potentially announced and the $6 billion we're looking at here?
3:55 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
For the community development trust, the terms and conditions cover a number of potential elements: job training and skills development as identified in local regions; measures to assist workers in unique circumstances who are facing adjustment challenges; funding to develop community transition plans; infrastructure initiatives to support diversification; and other economic development and diversification initiatives aimed at helping communities manage transition and adjustment.
The main difference is that the proposal here would be limited to the forestry sector, as opposed to communities generally, whether they're facing a problem because of forestry, manufacturing, or some other economic--
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I think in the motion it says “forestry and manufacturing sectors” and then.... I don't have a copy of what you're reading. Your first criterion is worker skills.
3:55 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
It is job training, yes.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
It is job training. Wouldn't that be similar to the $1.5 billion that would be used for support measures for workers affected by the crisis? So that would be similar there.
3:55 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
That's correct, yes.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
We're just talking about a money difference, whether it should cost $6 billion or $1 billion. When is this going to be accounted for? For the communities fund, that's going to be accounted for as of the March 2008 year-end.
3:55 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
The proposal the Prime Minister made said that funding would come from 2007-08, the current year.
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
How would the conditions be any different? Because some of the initiatives in the proposal you have in front of you are also for programs that should not be accounted for in the 2007-08 year-end.
4 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
No, the issue here is that in the proposal the Prime Minister made--and I'm only reading from the background that was issued at the time of the announcement--based on these objectives, the federal government would engage in discussions with the provincial governments and territorial governments to create a trust to which they would have access.
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
So there would be no additional programs put forward by the federal government. It would all be done through the provinces. That way the money would be distributed before March 31. Is that correct?
4 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
For this particular proposal, that's correct.
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Now, again, if I just look at money, and if we find a way to make this $6 billion work, can we not spend the $6 billion before 2008 if we transfer it to the provinces?
4 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
A transfer to the provinces could be accounted for during the current fiscal year.
4 p.m.
Liberal
4 p.m.
General Director, Economic Development and Corporate Finance, Department of Finance
Well, that's really a decision for the government to make based on the other priorities it has.
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Do you think there would be no money? The $6 billion would still be available. What's your forecast look like for this year?
4 p.m.
Director, Economic Analysis and Forecasting Division, Economic and Fiscal Policy Branch, Department of Finance
As I said earlier, the forecast I can give you is what the minister tabled in October. The government will give an updated fiscal forecast at the time of the budget, shortly.
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Surely we have The Fiscal Monitor, and there have been some changes made.
4 p.m.
Director, Economic Analysis and Forecasting Division, Economic and Fiscal Policy Branch, Department of Finance
I don't have the details of The Fiscal Monitor with me. I can speak to you about recent economic developments....
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
From what I understand, you're telling me that there isn't going to be any surplus this year.
4 p.m.
Director, Economic Analysis and Forecasting Division, Economic and Fiscal Policy Branch, Department of Finance
Pardon me?
4 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Is there not going to be any surplus this year?
4 p.m.
Director, Economic Analysis and Forecasting Division, Economic and Fiscal Policy Branch, Department of Finance
I can tell you that the surplus that was projected at the time of the economic statement--