Thank you, Mr. Chair.
Thank you for giving us the opportunity to present a brief summary of our supplementary estimates (C) for 2012-2013, and our proposed main estimates for 2013-2014.
To this effect, I have provided all of you with a short presentation deck that I will use. I will skip right to page 3 of the deck and start off with a short summary of highlights of our supplementary estimates (C).
Basically what you see in front of you is a status update of our spending authorities for the year 2012-13. At the same time here last year, I presented the main estimates for 2012-13, and we were proposing a budget of $1.665 billion. During the course of the year, obviously we've had some budget adjustments, mainly through the supplementary estimates process. What we're showing now is that for the year, we will have just over $1.9 billion in spending authorities.
Now relating to supplementary estimates (C), the net effect on our budget is a small decrease of the net impact of $320,000. I'll go through the details. Although this is a small decrease, it doesn't mean that we have not brought in any additional funding through these estimates. Actually, we're bringing in just over $6.8 million of additional funding. It's just that this additional funding is being offset by surplus spending authorities within vote 5, our capital expenditures.
I'll move you to page 4. Here's a summary of that new additional funding that we're bringing into the department for 2012-13. The first item is close to $2 million, relating to revenues stemming from the sale of property. When the department proceeds with the disposal of real property, we get funding back through Public Works, and we're entitled to respend it on the same type of activities.
The second item is over $1.7 million in relation to the United Nations Convention on the Law of the Sea, what we refer to as UNCLOS. Basically this is an item that was part of our sunsetting programs last fiscal year, and for which budget 2012 provided us with renewed funding of close to $5 million over five years.
The third item is just close to $1.5 million relating to the Asian carp initiative. Budget 2012 provided the department with $17.5 million over five years, and basically $1.5 million is our requirement for year 2012-13. As well, $1.1 million is in relation to the definition phase to renew the helicopter fleet for the Canadian Coast Guard. That's basically funding that was obtained through last budget also, budget 2012, which was included in the $5.2 billion fleet renewal announcement.
There is $269,000 relating to government import regulations and border processes for commercial trade. This is a horizontal initiative, which DFO is part of. It's led by the Canada Border Services Agency. DFO received $1.4 million over three years in relation to that. There is $229,000 relating to the cleanup of oil spills. Basically, when the coast guard provides assistance for the cleanup of these spills, we're entitled to recover expenditures from the company that was liable for it.
For the remainder of the supplementary estimates (C), what we call transfers between votes, as you may know, the department or the minister doesn't have the authority to move money from vote 1 to vote 5. I have put in an appendix with a full listing of these transfers. I will not go through it, but if you have any questions on any of these, I'll be happy to answer them.
I'll move you to page 5 right now, and I'll go through a summary presentation of our main estimates for 2013-14. On page 5 what you see is a summary under vote 1, operating expenditures. We're seeking just over $1.1 billion, of which $740 million is for salary expenses. Under vote 5 are capital expenditures, $360 million, and 75% of that funding is in relation to the Canadian Coast Guard for fleet and shored-based assets.
Under vote 10, the grants and contributions program, we see $59 million. It's pretty stable in comparison with last fiscal year from a main-to-main comparative. The two last items, which are statutory in nature, are contributions to our employee benefit plans, $130 million, and the Minister of Fisheries and Ocean's salary and motor car allowance, $100,000. This brings the total ask for 2013-14 to $1.668 billion, compared with $1.665 billion in 2012-13. So there is a slight increase of $3.1 million.
I will go in a few minutes over the key increases and key decreases when comparing the main estimates of last fiscal year with 2013-14.
The three next pages I will go through quickly. This is basically a breakdown of our proposed main estimates of $1.668 billion between our different program activities. The department has 26 program activities including the internal services activities. So page six shows that, under the economically prosperous maritime sectors and fisheries strategic outcomes, which include our programs that support sustainable and effective use of Canada's water resources, we are planning to spend over $421 million. You will note that 61% of that spend lies within the two first program activities: the integrated fisheries management, that is, the management of commercial and recreational fisheries; and the small-craft harbours program.
You will note in the fourth column, under vote 10, $41 million under the aboriginal strategies and governance. So 70% of our grants and contributions funding is in relation to that program activity.
On page seven, under the sustainable aquatic ecosystems strategic outcome, which consists of programs that contribute to the conservation, protection, and sustainability of our aquatic ecosystems, we're planning to spend just shy of $239 million, 70% of which, in this case, is to be spent in compliance and enforcement. This includes monitoring and surveillance activities for fisheries protection.
In last year's mains, fisheries protection was called habitat management. The funding proposed this year is $58 million, which is stable in comparison with last fiscal year. It was also $58 million under habitat management.
I'll move you to page eight. Under strategic outcomes, we have safe and secure waters, which includes the programs that contribute to maintaining and improving maritime safety. A large part of this spend is related to the Canadian Coast Guard. They are planning to spend over $721 million, and 80% of that spend comes from the two first program activities: fleet operational readiness, which ensures that our fleet and our ships' crews are ready to operate; and shore-based asset readiness.
Under vote 5, capital expenditures, you'll notice that close to $270 million is planned to be spent against these same two program activities, which represents 75% of our spend in the area of capital expenditures.
The last point is under internal services. Our projected spend for the coming years is $286 million, compared with $296 million in the main estimates of 2012-13. Out of the $286 million, there is $115 million that relates to our real property spending. Fisheries and Oceans is one of most important departments from an asset-based perspective and includes our real property footprint.
I'll now take you to page nine to talk about the key increases that cause a variance from last year's mains. The first item is $76.7 million for Canadian Coast Guard vessel life extensions and the mid-life modernization program. That funding came through budget 2012, and it's part of $5.2 billion announced for fleet renewal. Some $316 million of that $5.2 billion goes to this program. The second item is $20 million for the acquisition of offshore science vessels and the management of the fleet procurement program.
In the management of the fleet procurement program, the department also received $5 million as part of the $5.2 billion announced in the last budget to support this program. The remaining is basically cashflow in relation to the acquisition of the offshore science vessels.
I'll just make the point that this funding variation does not necessarily mean new money or money disappearing from the budget. It basically also relates to how we use the money. For example, if we get $100 million to build a ship, and it's going to take five years, we will not spend $20 million every year. The cashflow will vary from year to year in building that ship. Therefore, for the offshore science vessels, this is a cashflow fluctuation.
There's $10.4 million related to compensation for collective bargaining agreements. Basically, every year we get an adjustment to our salary budget in relation to the collective agreements.
There's $8 million to protect wildlife species at risk. This was a program that was sunsetting last fiscal year, and for which we had renewed funding in budget 2012. The department received $24.6 million over three years for that initiative.
There's $6.6 million relating to the modernization of the regulatory system for major resource projects, what we refer to as MPMO. Again, this was a sunsetting program in last fiscal year for which we received renewed funding as part of budget 2012. We actually received $21 million over three years.
The last item on this page is $5 million in relation to the Digby Harbour Port Association, for repair of the wharf. Through budget 2012, we received $7.4 million for that. We've used $2.4 million in this fiscal year, so basically $2.4 million was brought into the supplementary estimates, as was announced in budget 2012. It was not included in the main estimates of the last fiscal year. This year the $5 million that we will require in 2013-14 is actually reflected in the main estimates of this year. This is why it's causing a variance of $5 million.
On page 10, dealing with decreases, the first item is $37.9 million relating to strategic review measures as announced in budget 2011. Budget 2011 announced a reduction to our budget of $56.8 million, so that's the additional portion, basically, with a conditional reduction that will bring us to that $56.8-million reduction.
The second item is $23 million relating to the mid-shore patrol vessels. Basically, in budgets 2005 and 2007, the department received $212.5 million for the acquisition of these vessels. This is simply a cashflow. It's not a reduction in funding. In last year's main estimates, there was $92.5 million projected to be spent on this, and in this year's main estimates we have $69.4 million for that program. So there's a variance of $23 million.
The third item is $16.7 million relating to the completion of the new aquaculture program initiative. This is a program that's actually sunsetting in March of this fiscal year. Back in 2008 we had received $70 million over five years, so any potential renewed funding in relation to that, if any, would be coming through the normal process and would appear in budget 2013. Obviously, it would not be reflected in these main estimates.
Also, there was $14.3 million in relation to the repairs as a result of the storm that happened in December 2010, mainly in the Atlantic regions. The department had received, through budget 2011, $57.3 million in additional funding to repair the small craft harbours, $43 million of which was spent in 2011-12, and $14 million in 2012-13. Therefore, in 2013-14, the money disappears as it was used for the repair of these wharves.
There was $13.4 million in relation to the second-year reduction of strategic and operating review measures, as announced in budget 2012.
The last item is $11 million relating to the acquisition of the polar ice breaker. Again, here's a cashflow variance in how we used the funding that we got for that particular bill.
I'll close off by saying, on the last page, obviously as I mentioned, any budget decision, any funding decision that would affect DFO's budget for the coming year as a result of budget 2013, which will be tabled soon, is not reflected in these main estimates.
Thank you very much, Mr. Chair.
