Finance Committee on May 25th, 2010

[Filipe Dinis]

Mr. Chair, the reason for the decrease is likely, as the member indicated, refinement in the budget of the ombudsman when it was first established a year ago. There was a projection in terms of how much was required, and what's reflected there is probably an adjustment after one year of operation. There were also some start-up costs that were included in the first year that aren't reflected any more, and that's probably the difference.

[The Chair, Conservative, James Rajotte]

You've got one and a half minutes.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Okay.

Just to continue on that as well, I'm just wondering, what's been the impact of the taxpayers' ombudsman's office?

[Filipe Dinis]

Mr. Chair, unfortunately, I'm not in a position to respond to that. I'd be well positioned to speak to some of the financials, but I'm not in a position to speak to that one.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

What about the benefits for the taxpayers? Are you able to talk about that? I know that my office in Elliott Lake certainly has referred or made use of those services. I think that a lot of people still don't even know that this taxpayers' ombudsman is there, so I was just trying to get some sense of it.

[Brian McCauley]

The ombudsman does operate quite independently, certainly autonomously of the agency, but he does have a separate website.

Didn't he just issue his report? Is that public yet, do you know?

At any rate, we will get back to the committee about the website, his reports, and other information where I think he expresses what his business has been and the value he thinks he has generated. We could certainly provide that to the member.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Thank you.

Are there still a couple of minutes?

[The Chair, Conservative, James Rajotte]

You have 30 seconds.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Does that include his minute?

According to the main estimates 2010-11, the CRA is seeking $931 million for reporting compliance, an increase of $8.7 million. Why is the amount requested for reporting compliance 0.9% higher than that requested in the main estimates for 2009-10, and what specific activities would the money be spent on?

[Filipe Dinis]

Mr. Chair, the funding that's being required is to continue to do the work we do on various fronts. In particular, over the last little while we've had some focus on aggressive tax planning and other measures. That is what you see reflected there, our ongoing efforts in ensuring compliance and fairness with the tax system.

[The Chair, Conservative, James Rajotte]

Okay. Thank you.

We'll go to Mr. Pacetti, please.

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

Thank you, Mr. Chairman.

Thank you, witnesses.

I have more of a bookkeeping question first. On page 4-2 you have the payments to provinces under softwood lumber, the $479 million. Where would that $479 million be on page 4-4? You have it split in “Program by Activities”, but where would it be included?

[Brian McCauley]

I think it's included in my budget, which is....

[Filipe Dinis]

The assessment of returns and payment processing.

[Brian McCauley]

So the number would be in there.

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

In the $621,671,000—or the total of $601,180,000, correct?

[A voice]

Correct.

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

Okay, as long as it would be included in there, in those numbers, on balance.

In the end the numbers we're looking at are the $2.992 billion plus the $136 million versus the $3.1 billion. Pretty well your operating budget hasn't really gone up, or you're not asking for an increase.

Because of the program freezes, what is going to happen next year? Will you be able to survive with this? With the Finance officials, we saw FINTRAC, OSFI, the Auditor General, all asking for huge increases.

[Filipe Dinis]

Mr. Chair, one of the components of our operating budget showing a decrease is related to the establishment of the capital we both referenced earlier.

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

But if I take the $2.9 billion and I add the $136 million, you're still pretty even.

[Filipe Dinis]

Right. That's right. As it relates to the impacts in future years, we are looking—

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

That's unless you're telling me--sorry--that the previous year's $3.1 billion is more than $136 million of capital expenditures.

[Filipe Dinis]

No. The $136 million is indeed embedded into the $3.1 billion from last year's main estimates.

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

Okay. So are you going to be able to survive with the same operating budget?

[Filipe Dinis]

Mr. Chair, one of the challenges we have is obviously looking to meet our commitments in delivering our programs under a very tight fiscal situation. We are looking at all opportunities in the agency to become more efficient. We do that on a regular basis. At the end of the day we will be looking at possible realignments to priority areas.

In addition to that, it's worth noting that, as we traditionally do, we will come forward in our supplementary estimates process with requests for funding for any new items that were announced.