Evidence of meeting #37 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was bank.
A recording is available from Parliament.
5:10 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
So it's moving from a bank account to another bank account, in simple language. Is that a fair statement?
5:10 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Social Development
Yes, it would be leaving the consolidated revenue fund to be provided to a separate organization.
5:10 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
If that's true, is there provision for it in the budget presented in March? Is that $2 billion actually taken out of program expenses and set aside pending the set-up of this? Or is it simply sitting there?
5:10 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Social Development
It's important to distinguish, when talking about the movement of EI premiums, between a cash movement and—
5:10 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
But this doesn't have anything to do with premiums; this has to do with your reserve.
5:10 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Social Development
Yes, with regard to the transfer of the reserve then, the transfer of that sum of funds does not affect the government's bottom line per se, because the amount of money continues to be consolidated within the Government of Canada's books, consistent with public accounting principles.
5:10 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Well, it wouldn't affect the assets and liabilities, but it would affect the income and expenses. So I guess the questions I'm asking are, in fiscal year 2008-09—if in fact Bill C-50 passes—will the $2 billion come out of the revenue account and get passed over to this new entity; and should the anticipated surplus of $2.3 billion, or whatever the number is, actually reflect that movement of $2 billion?
5:10 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Social Development
I should clarify this. Again, this area of the accounting treatment of different revenues and expenditures is not my particular area of expertise.
My understanding is that the transfer of the money is not an expense, so that should clarify the first part of your statement. The expense would be recognized at the point in time at which those moneys were depleted and paid as benefits. That's a standard accounting approach.
5:10 p.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very much.
Monsieur Crête has talked me into allowing another very, very short question. I have to see this, so I'm going to allow it.
5:10 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
The provinces had until March 31, 2008, to sign up for the 2008 Public Transit Infrastructure Trust. Which provinces have answered that call?
5:10 p.m.
Director, Social Policy, Federal-Provincial Relations and Social Policy Branch, Department of Finance
Ms. Krista Campbell, from the finance department, can answer that question.
5:10 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Do you want me to repeat the question? The 2008 Public Transit Infrastructure Trust sets aside $500 million for provinces and territories that made a public commitment by March 31, 2008. Which provinces made a commitment by March 31, 2008?
5:10 p.m.
Krista Campbell Senior Chief, Director's Office, Federal-Provincial Relations and Social Policy Branch, Department of Finance
All provinces and territories are committed.
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Bloc
5:10 p.m.
Senior Chief, Director's Office, Federal-Provincial Relations and Social Policy Branch, Department of Finance
Yes.
5:10 p.m.
Bloc
5:10 p.m.
Senior Chief, Director's Office, Federal-Provincial Relations and Social Policy Branch, Department of Finance
They are all eligible, yes.
5:10 p.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very, very much.
Thank you to the department for coming in and for actually answering, by way of your conduct, a question that was put to the finance committee earlier this meeting with regard to official languages. You've handled yourself very well and very aptly in both official languages. Thank you for that and for attending our committee
Thank you also for the questions.
Just to remind the committee, please give the clerk the names of any witnesses you may wish to call before the committee with regard to this piece of legislation. We'll ask for that early, so that we can proceed appropriately when we come back from the break.
With that, the meeting is adjourned.