Evidence of meeting #12 for Government Operations and Estimates in the 40th Parliament, 3rd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was snc-lavalin.
A recording is available from Parliament.
Liberal
Martha Hall Findlay Liberal Willowdale, ON
So this is a budget we would have whether or not we were in fact at war in Afghanistan.
Liberal
Martha Hall Findlay Liberal Willowdale, ON
I'm looking at these numbers from 2004 right through to 2009--they are completely separate from what we've been doing in Afghanistan.
Associate Deputy Minister, Department of National Defence
I'm not exactly sure which numbers you're looking at, but a baseline budget for the department is reflected in the main estimates and in the supplementary estimates. There is an incremental funding amount this year for Afghanistan of about $1 billion, give or take, in addition to the baseline budget.
Our baseline budget is about $21 billion. Over and above that, $1 billion is appropriated to the department and the Canadian Forces for supply and capital equipment, although we will bring home much of the capital equipment for refurbishment and use in other missions, so it's not as though it's entirely used up.
Liberal
Martha Hall Findlay Liberal Willowdale, ON
I would then suggest it should be a saving, because we shouldn't be acquiring any new equipment.
Could I ask that we get similar financial information on the piece I'm apparently missing on the separate allocations and the separate piece for the incremental costs of being in Afghanistan? Would it be possible for the committee to obtain that information within a decent timeframe?
Kevin Lindsey Assistant Deputy Minister, Finance and Corporate Services, Department of National Defence
We can certainly provide it.
In fact, Mr. Chair, the information is available in the department's report on plans and priorities, which accompanies our main estimates, outlining the incremental costs of the mission in Afghanistan and the costs that are funded over and above the department's baseline. We would be happy to provide that separately.
Liberal
Siobhan Coady Liberal St. John's South—Mount Pearl, NL
Thank you very much.
I certainly appreciate you taking the time to be here this afternoon.
I have a question that speaks to the strategic review. It's supposed to be completed at the end of 2010-2011, is that correct?
Will the 5% savings you're looking for be reinvested in DND or go back to general revenues? It is a significant amount on your budget.
Associate Deputy Minister, Department of National Defence
It is a significant amount. The way in which we will achieve the reductions in growth that are announced in Budget 2010, with $525 million moving to $1 billion ongoing, will be accomplished through the strategic review. The adjustment in the budget line continues to grow.
Liberal
Siobhan Coady Liberal St. John's South—Mount Pearl, NL
That's your strategic review. It's not in addition to that.
Associate Deputy Minister, Department of National Defence
No. It's nice to do a review when you know what your target is, and we know exactly what our target is.
Liberal
Conservative
Liberal
Siobhan Coady Liberal St. John's South—Mount Pearl, NL
I know you've been making great investments in your personnel. According to your plans, you're going to continue in that way. Will you continue your encouragement and support for reservists?
A lot of them move into the regular forces, but I want to ask specifically about reservists. Do you anticipate any changes or challenges? I've heard a certain amount about that in the communities, where support is somewhat diminishing.
Are there any other risks to the slowdown in the budget growth of DND? What are the other risks? I'm asking about reservists because I've heard there is some diminishment of support toward reservists in the communities. Perhaps you can clarify that. What other risks are there for the slowdown in the budget?
Thank you.
Vice-Admiral Denis Rouleau Vice-Chief of the Defence Staff, Department of National Defence
The first element from a reservist perspective is that reservists are very important to us right now. In fact, for some of our rotations in Afghanistan they account for about 20% of the group that goes over there. It's an element dear to our hearts. The reservists will continue to go until the last rotation. We're still going to make use of them. However, with the Afghanistan mission coming to an end, we're going to start to draw less on the reservists.
At the same time, while the Afghanistan side is important to us from a reservist perspective, we also have what we call a trained effective strength shortage in the regular force. Trained effective strength describes positions for which you need somebody trained to do a specific task. We have a shortage there, but we've been hiring reservists.
Given the very successful recruitment in the past year and the year before that, we're now starting to fill positions that are regular force positions for which we had hired reservists. This will also draw it down, but it will not happen overnight. We will not be able to fill those positions overnight.
Liberal
Siobhan Coady Liberal St. John's South—Mount Pearl, NL
Support for the reservists will basically continue.
Liberal
Siobhan Coady Liberal St. John's South—Mount Pearl, NL
Okay. I hear that support is diminishing in some communities.
Are there any other risks?
Conservative
The Vice-Chair Conservative Chris Warkentin
Your time has expired. I gave you a little extra time.
Mr. Bachand.
Bloc
Claude Bachand Bloc Saint-Jean, QC
Thank you, Mr. Chair.
I am pleased to be with you today. I am also pleased to have before me my friends from the Department of National Defence, including Admiral Rouleau. You will soon be in Saint-Jean to participate in the gala, I believe?
Bloc
Claude Bachand Bloc Saint-Jean, QC
The grand chief himself will be there. That's wonderful.
I am trying to understand what you presented in your brief today. It reads: "First, [the Budget] announced a freeze on operating budgets that will require the Department to absorb salary increases for civilian and military personnel of 1.5% until the end of the freeze in 2012-2013."
How are you going to do that? I assume that for civilian personnel, collective agreements are in place. As concerns military personnel, I am somewhat concerned that the reserve forces will be the victims of this measure, because they do not have a fixed budget envelope like the regular forces do. In fact, I wrote a letter to the minister on this subject, saying that it is not normal that these reductions should be made on the backs of the reserve forces. You can confirm to me that there have been salary reductions recently within the reserve forces.
How do you intend to absorb the salary increases of 1.5%, and is there a risk that the reserve forces will suffer from this measure?
Associate Deputy Minister, Department of National Defence
I will answer first, Mr. Chair, and the vice-chief will continue with the answers concerning the questions on the reserve forces.
First, for us, this is one of many challenges. We conduct budget planning and adjustments each year, at the beginning of the year and over its course. This 1.5% is not a disaster for us but, neither is it negligible. We must make adjustments. We submitted the budget allocations to each assistant deputy minister or their military counterparts. They are currently preparing the final expenditure plan for this year. We have to make adjustments and find efficiencies in-house. It is not the end of the world for us. We have to make adjustments to our internal planning like we do each year.
With regard to the reserve forces, we do not foresee an overall decrease. As the vice-chief has just said, it is very important for us.
Bloc
Claude Bachand Bloc Saint-Jean, QC
You did not reduce your reserve strength this year but you did cut its salary budget. They were forced to accept a one-month salary cut on a group basis. So that is already done. What I want to know is if that will be repeated.
VAdm Denis Rouleau
In certain cases, this year, as part of our quarterly reviews, adjustments were made to the budget and we were asked to make adjustments to level 1, as it was possible to do without any impact on the operational levels. Our criterion is a priority, and it has no impact on operations. As for determining how level 1 people will manage their budget, that is something we review at least four times a year as part of our quarterly reviews. The adjustments are made not only on the reserve side but also to many other applications in force at that time.