Finance Committee on May 25th, 2010

[Jeremy Rudin]

No, there's a very small amount of work that OSFI does, which it does on behalf of the government, providing actuarial services related to government programs. Those are not paid for by an assessment on the financial institutions, but they're paid for by the government.

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

I have a quick question on Mr. Wallace's point regarding the internal charges. If there's an increase in the charge for internal services, but there's not going to be an overall increase, shouldn't we see a decrease somewhere else? Shouldn't Mike be able to see it somewhere else?

[Jeremy Rudin]

I'm sorry, this is related to FINTRAC?

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

Yes.

While I'm waiting, just a quick question. Once a year, Canada Hibernia development tables a report. Has anybody ever heard of it?

[The Chair, Conservative, James Rajotte]

Can we just be very brief? We're well over time.

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

I just don't see it anywhere. Does it cost the government any money?

[The Chair, Conservative, James Rajotte]

Let's start with Ms. Baxter.

[Margaret Baxter]

The adjustment between internal services and the program wasn't related to a decrease in costs in the organization. It was simply changing the allocation of our IM/IT costs and allocating it to the program areas. The costs in the IM/IT shop that support the program areas are allocated to the program, as opposed to internal services, so there wasn't a decrease overall in the costs related to that.

[The Chair, Conservative, James Rajotte]

Just very briefly, sir.

[Richard Botham]

The Canada Hibernia Holding Corporation finances its activities out of retained revenues, and so there isn't an appropriation for that.

[The Chair, Conservative, James Rajotte]

Thank you.

Monsieur Généreux, s'il vous plaît.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Thank you, Mr. Chair.

Is it true that transfers to the provinces increased by more than 40%, particularly in the case of Quebec? A total of $6.8 billion has been paid out to the provinces since 2006, solely for Quebec. Is it true that it will continue to increase in the future?

[Chris Forbes]

The transfers will continue to increase, yes. The growth rate of health transfers is 6% a year.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Has that already been decided?

[Chris Forbes]

It is in the legislation, until 2013-2014. Even the social transfer will increase by 3% annually. Equalization increases with the GDP growth rate. Consequently, transfers will increase in the future.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

I would like to say something quickly to Mr. Paillé. You talk about Quebec hitting a dead end within Canada, but the figures speak for themselves. I do not think Quebec is really on the wrong track within Canada when you look at the figures.

I have another quick question. You talk about a $4-million increase in funding for parents and families, which brings the budget to $225 million. The number of children who will be affected by this budget increase—

[Chris Forbes]

Pardon me, but which program are you referring to?

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Oh, you do not have that document. It is in the main estimates. It is the children's special allowance, which provides funding to foster parents, group foster homes and institutions for the care of a child. A $4-million increase was planned in the last budget. How many children will that—

[Chris Forbes]

I am not familiar with that program. We can look for the information. Is it in the Department of Finance's budget or the government's?

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

The Department of Finance's.

[Chris Forbes]

We can find that information.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

I would have liked to know how many families that would help and, more specifically, how many children.

[The Chair, Conservative, James Rajotte]

Thank you.

I want to thank you all for coming here this afternoon and answering our questions.

We do have to vote on the estimates by May 31, so if we could have those answers before then, Ms. Harrison, that would be very helpful.

Colleagues, we'll suspend for a minute, and we will ask CRA to come to the table.

[The Chair, Conservative, James Rajotte]

I call this meeting back to order.

Continuing our discussion on this year's main estimates, we have with us the Canada Revenue Agency. We have a statement by Mr. Dinis, the Deputy Assistant Commissioner of the finance and administration branch.

Welcome to all of you.

Please begin with your opening statement.

[Filipe Dinis, Deputy Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency]

Thank you, Mr. Chair.

Good afternoon, and thank you for the opportunity to appear before the committee to present the Canada Revenue Agency's 2010-11 main estimates and to answer any questions you may have.

Before I begin, I would just like to take a moment to introduce the other officials that I have here with me today: Brian McCauley, Assistant Commissioner of the Legislative Policy and Regulatory Affairs Branch, and Richard Case, Director General of the Finance and Administration Branch.

Mr. Chair, as you're aware, the CRA is responsible for the administration of federal and certain provincial and territorial programs, as well as the delivery of a number of benefit payment programs. Each year the CRA administers billions of dollars of tax revenue and distributes timely and accurate benefit payments to millions of Canadians.

In order to fulfill this mandate, the CRA is seeking the approval of a total of $4.5 billion in resources through the 2010-11 main estimates. This represents an increase in its main estimates authorities of $88.5 million, or 2%, over the previous year. The largest component of this charge is represented by two transfer payment programs, which account for $54 million of the total $88.5 million year-over-year increase in the CRA's authorities.

The first represents payments for the children's special allowance, which is expected to grow by $4 million, from $221 million to $225 million, owing to an increase in the number of children eligible to receive this payment and to an increase in the monthly payment per eligible child.

The second transfer payment relates to a projected $50 million increase in the statutory disbursements to the provinces under the Softwood Lumber Products Export Charge Act.

The remaining increases in the main estimates are accounted for by changes in CRA expenditures.

While 2010 federal budget initiatives will be included in future supplementary estimates, the increase in CRA's 2010-2011 main estimates over the previous year does include a total of $9.6 million for the ongoing administration of the 2009 federal budget initiatives.

These main estimates also include $24.7 million to fund salary increases attributable to collective agreements signed prior to the 2010 federal budget.

Also reflected is a transfer of $22.7 million from Public Works and Government Services Canada to the CRA to fund increased accommodation in real property costs, as well as a net increase of $22.1 million for cost recovery services provided by the CRA to various organizations.

Mr. Chair, the remaining changes to the CRA's main estimates consist of a number of offsetting amounts totalling $44.6 million. These adjustments are primarily attributed to a number of reduction exercises and sunsetting funding.

At this time, my colleagues and I would be most happy to answer any questions you may have. Thank you.