My name is Sherry Harrison, and I am the Executive Director responsible for the Financial Management Directorate at the Department of Finance. With me today are officials to assist in responding to your questions on the 2010-2011 Supplementary Estimates (B) for Finance.
These Supplementary Estimates (B) reflect a decrease of $2.031 billion from the 2010-2011 Estimates for the Department of Finance and include the payment of a $10 million grant to the Global Risk Institute in Financial Services, which is a collaborative effort between the Governments of Canada and Ontario and the Toronto Financial Services Alliance, a partnership of the City of Toronto and the financial services industry. Additional funding is not being requested for this payment as funding is available within the vote due to re-filing of funds for the Toronto Waterfront Revitalization Initiative because those resources are not required this fiscal year.
The Estimates also include payments this fiscal year under the Bretton Woods and Related Agreements Act: $20 million to the International Finance Corporation for the implementation of winning proposals under the Small and Medium Enterprises Finance Challenge, which was an innovative competition that scales up financing of growth-oriented small enterprises in developing countries; $5.83 million to the International Finance Corporation for the Fast Start Climate Change Initiative to provide technical assistance to developing countries to aid in their efforts to mitigate greenhouse gas emissions and adapt to the impact of climate change; $285.72 million to the International Finance Corporation's Fast Start Climate Change Initiative, which will be used to provide concessional financing to the private sector in order to support clean energy projects in developing countries; $1 million to the International Bank for Reconstruction and Development for the Agriculture Advance Market Commitment to develop an innovative financing facility for agriculture.
The expenditure forecasts of major statutory items have also been updated in the supplementary estimates as follows.
As a result of accounting changes, the estimated interest costs incurred by the Department of Finance for public debt charges are expected to be $2.909 billion lower in 2010-11 than the estimate provided in supplementary estimates (A). The revised amount is $28.432 billion.
Under the Canada health transfer, there are payments of $15.712 million to the provinces of Saskatchewan and Newfoundland and Labrador as one-time payments to prevent declines in major transfers between 2009-10 and 2010-11, and fiscal equalization payments of $509.503 million to the provinces of Prince Edward Island, Nova Scotia, New Brunswick, and Manitoba as one-time payments to prevent declines in major transfers between 2009-10 and 2010-11.
Regarding the budget 2007 temporary financial incentive to encourage provinces to eliminate or accelerate the elimination of their capital taxes by 2011, an increase of $40.1 million is being requested. This increase reflects a carrying forward of 2009-10 payments as well as an update of provincial estimates with respect to foregone revenues from their capital tax reductions.
In budget 2010, the government committed to increase funding for FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada. FINTRAC, Canada's financial intelligence unit, has a mandate to combat money laundering and terrorist financing. In support of this mandate, the request in these supplementary estimates for $3.4 million is to enhance the centre's ability to ensure compliance with the Proceeds of Crime (Money Laundering), and Terrorist Financing Act and to help meet new responsibilities related to tax evasion becoming a predicate offence to money laundering under Canada's tax statutes.
We would be pleased to address any questions that the committee may have on these Supplementary Estimates.
Thank you.