Evidence of meeting #32 for Finance in the 41st Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.
A recording is available from Parliament.
Conservative
The Chair Conservative James Rajotte
So in everything you've provided to the committee, nothing has changed in that matter.
Chief, Equalization and TFF Policy, Federal-Provincial Relations and Social Policy Branch, Department of Finance
No.
Conservative
The Chair Conservative James Rajotte
Okay, I appreciate that.
I do need some time at the end for votes. So, unfortunately, Monsieur Giguère, you'll only have time for a brief question and answer and then we'll have to go to the votes.
NDP
Alain Giguère NDP Marc-Aurèle-Fortin, QC
I will try to be quick so that I can ask questions that deal directly with the adjustment.
You reduced the debt service item by $410 million. If I remember my economics classes correctly, when the impact on the GDP of servicing the debt goes down despite the deficit going up, it essentially means that the government has more room to manoeuvre.
Is that correct?
Director, Fiscal Policy Division, Economic and Fiscal Policy Branch, Department of Finance
The decline in public debt charges of $410 million you refer to between the main estimates and supplementary estimates (B) reflects a decrease in short-term interest rates. As I mentioned before, that is based on the most recent survey of private sector economists. They came down by roughly 30 basis points, and that's where the $410 million came from.
NDP
Alain Giguère NDP Marc-Aurèle-Fortin, QC
Thank you, Mr. Chair.
I see an expense of $275 million for PPP Canada Inc. I thought that, under GAAP, generally accepted accounting principles, when the federal government invests in its own structures, you just indicate the amortization. It is just as if you lent a sum of money and you had loan guarantees that made you certain of getting it back. You don't have to show it as an expense.
Does this mean that you have written off $275 million? Is that question too specific?
Assistant Deputy Minister, Corporate Services Branch, Department of Finance
I'm sorry I don't have an official here from PPP Canada to speak to this. We'd be pleased to respond to the committee in writing on that one.
Conservative
The Chair Conservative James Rajotte
Okay. You can provide that to the clerk, and we will ensure that all members get it.
Okay
Thank you, Mr. Giguère
NDP
Alain Giguère NDP Marc-Aurèle-Fortin, QC
I would like a very quick explanation about the $7 million for the Harbourfront Centre funding program. I have been seeing amounts like that for a couple of years now. Under the federal government's generally accepted accounting principles, you just show the amortization amount as an expense. Do I gather that these $7 million items represent an amount 10 times greater?
Conservative
The Chair Conservative James Rajotte
We can have a brief response or you can follow up with the committee, but we will have to move to votes right away.
December 1st, 2011 / 12:50 p.m.
Assistant Deputy Minister, Corporate Services Branch, Department of Finance
The Harbourfront Centre program was renewed for five years in the recent budget. So the $5 million represents this year's payment as well as a reprofiling of the last year into this year to allow for a quarterly payment. It's for the renewal of the program.
Conservative
The Chair Conservative James Rajotte
Thank you. Merci.
I want to thank all of the officials for being with us here today.
Colleagues, we will move right into the votes. I will just name the votes for the record: supplementary estimates (B) 2011-2012, votes 1b and 5b under Canada Revenue Agency; and votes 1b, 5b, and L15b under Finance, referred to the committee on Thursday, November 3, 2011.
It's been suggested that we pass these on division. Is that the will of the committee?
CANADA REVENUE AGENCY Vote 1b--Operating expenditures..........$24,392,657 Vote 5b--Capital expenditures..........$1,882,288
(Votes 1b and 5b agreed to on division)
FINANCE Department Vote 1b--Operating expenditures..........$4,940,846 Vote 5b--The grants listed in the Estimates and contributions..........$7,000,000 Vote L15b--In accordance with the Bretton Woods and Related Agreements Act, the issuance and payment of non-interest bearing, non-negotiable demand notes in an amount not to exceed $441,620,000 to the International Development Association..........$1
(Votes 1b, 5b, and L15b agreed to on division)
Shall the chair report these to the House of Commons?
Conservative
The Chair Conservative James Rajotte
Thank you, colleagues. Thank you, officials.
The meeting is adjourned.