Evidence of meeting #4 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was advertising.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

David Miller  Corporate Services Branch, Department of Finance
Brian Ernewein  General Director, Tax Policy Branch, Department of Finance
Paul Rochon  Assistant Deputy Minister, Economic and Fiscal Policy Branch, Department of Finance
Rob Stewart  Director, Financial Sector Policy Branch, Department of Finance
Alfred LeBlanc  Director, Federal-Provincial Relations and Social Policy Branch, Department of Finance
Jean-Michel Catta  General Director, Consultations and Communications Branch, Department of Finance
Jim Haley  Senior Advisor to the ADM, International Trade and Finance, Department of Finance
William Baker  Commissioner and Chief Executive Officer, Canada Revenue Agency
James Ralston  Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Filipe Dinis  Director General, Resource Management Directorate, Finance and Administration Branch, Canada Revenue Agency

5:05 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

--that have been forced out of softwood communities, there is a lost job that results.

Would that be a correct calculation?

5:05 p.m.

Conservative

The Chair Conservative James Rajotte

Mr. Ralston.

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

Beyond telling you what we collected and what we paid out to the provinces, I'm afraid the other information you're asking for is beyond my ability to provide.

5:05 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

But you will provide us with the provincial breakdown.

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

Absolutely.

5:05 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you very much. We look forward to that information.

Thank you, Mr. Julian.

We'll go to Mr. McKay.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

In your supplements here you're talking about $19.5 million for setting up your computer program to keep track of the tax-free savings accounts. Is that a one-time expenditure?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

For a project like that it would be. Certainly the build cost of the system will be one time. There may be other additional costs, but certainly that large upfront--

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

And how much does the advertising program cost?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

It's $6 million this year.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

It will cost $6 million, so we're at $25 million.

Are there other costs?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

I'm sorry, I'm referring to the $6 million in our budget. I think you may have been referring to an advertisement program that--

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

I'm talking about Finance.

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

Unfortunately we can't comment on that one.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

You don't really know, but $6 million sounds reasonable.

What are the other costs?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

There will be costs around staff. There may be costs related to answering inquiries.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Is it reasonable to think that $30 million a year is what it's going to cost to administer this program?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

We'll be in a better position next year to answer that when we talk about the amount that goes into the estimates for 2009-10.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Would it be wild and crazy to say $30 million seems to be in order?

5:05 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

James Ralston

I wouldn't want to speculate.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Is that unreasonable?

5:05 p.m.

Commissioner and Chief Executive Officer, Canada Revenue Agency

William Baker

At this point, sir, the $19.5 million is what we are expecting.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

What's the amount of the foregone revenue by the Government of Canada to fund this program?

5:05 p.m.

Commissioner and Chief Executive Officer, Canada Revenue Agency

William Baker

That question would have been a consideration when the tax policy was set and would best be directed to the Department of Finance.

5:05 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Are you telling me that Revenue Canada doesn't have a calculation for foregone revenue?