Government Operations Committee on Nov. 29th, 2011

[The Chair, NDP, Pat Martin]

We're going to call the meeting to order.

Welcome, everyone, to the 19th meeting of the Standing Committee on Government Operations and Estimates. Today we're pleased to welcome guests and visitors from the Department of Indian and Northern Affairs who will be speaking to supplementary estimates (B).

Who is the head of your delegation?

You are Susan MacGowan, chief financial officer?

[Susan MacGowan, Chief Financial Officer, Department of Indian Affairs and Northern Development]

That's right. I'm Susan MacGowan.

[The Chair, NDP, Pat Martin]

Perhaps in the context of your remarks you can introduce the rest of your delegation for the record.

[Susan MacGowan]

I can, most certainly.

[The Chair, NDP, Pat Martin]

I would invite you to give your presentation, and then we'll commence with questions from the committee members.

Ms. MacGowan.

[Susan MacGowan]

First I would like to thank you, Mr. Chair, and your colleagues for inviting the department to appear before the Standing Committee on Government Operations and Estimates.

Today I am accompanied by: Patrick Borbey, Senior Assistant Deputy Minister of the Treaties and Aboriginal Government sector; Françoise Ducros, Assistant Deputy Minister of the Education and Social Development Programs and Partnerships sector; Élisabeth Châtillon, Assistant Deputy Minister of the Resolution and Individual Affairs sector; and Janet King, Assistant Deputy Minister of Northern Affairs.

As you know, I'm here today to discuss the supplementary estimates (B) for fiscal year 2011-12 for Aboriginal Affairs and Northern Development Canada, as tabled on Thursday, November 3, 2011.

The estimates, consisting of the mains and supplementary estimates, give the department the resources necessary to help improve the quality of life for aboriginal peoples and northerners. The supplementary estimates seek authority for revised spending levels during the fiscal year that Parliament will be asked to approve in an appropriation act. Access to the supplementary estimates by the department is a regular process. For this fiscal year, Aboriginal Affairs and Northern Development Canada is seeking authority for $544 million in supplementary estimates (B).

To begin with, I would like to provide you with a high-level overview of the department's activities and resources in an effort to provide you with some context.

Aboriginal Affairs and Northern Development Canada supports aboriginal peoples—first nations, Inuit, and Métis—and northerners in their efforts to improve social well-being and economic prosperity; to develop healthier, more sustainable communities; and to participate in Canada's political, social, and economic development.

AANDC is the federal department primarily responsible for meeting the Government of Canada's obligations and commitments to first nations, Inuit, and Métis, and for fulfilling the government's constitutional responsibilities in the north. The department's legal and operating environments are complex and continually evolving. AANDC delivers or funds programs and services to diverse groups of people who have varied and distinct priorities and needs and who live in a vast range of communities throughout the country, from remote settlements with extreme climates to metropolitan urban areas. Most of the department's programs, representing a majority of its spending, are delivered through partnerships with aboriginal communities and federal-provincial or federal-territorial agreements. Aboriginal Affairs and Northern Development Canada is one of numerous federal departments and agencies delivering aboriginal and northern programs and services.

Turning to the department's financial resources, the 2011-12 main estimates tabled on June 3, 2011, included approximately $7.4 billion. Of this, approximately 85% goes directly to recipients through transfer payments. Much of this funding ensures that aboriginal people have access to basic services comparable to those provided to other Canadians through provincial, municipal, and territorial governments. These services include education, housing, community infrastructure—water and sewage systems—social support services, and other benefits.

On behalf of the Government of Canada, AANDC is the lead department responsible for the negotiation and implementation of self-government and land claims agreements. By continuing to negotiate and implement claims and self-government agreements, the federal government improves aboriginal-Crown relations and provides Aboriginal groups with the opportunity to make meaningful changes in their communities.

The department is also responsible for the promotion of economic development and the continuation of the administration of the Indian Residential Schools Settlement Agreement as it seeks further reconciliation with former student residents of Indian residential schools, their families, and communities.

The main estimates are the first step in the fiscal cycle. Additional adjustments of $18 million were approved by Parliament as part of the 2011-12 supplementary estimates (A) for the renewal and extension of a series of Yukon comprehensive land claims, the implementation of several Yukon self-government agreements, and the implementation of the Teslin Tlingit Council Administration of Justice Agreement.

As mentioned, the investments requested in these supplementary estimates (B) would increase appropriations of the department by another $544 million and will bring total spending to nearly $8 billion for this fiscal year. Specifically, supplementary estimates (B) will provide the financial resources to take action on a number of key initiatives, and I'll now describe them briefly.

The first item of funding is $179 million related to the Residential Schools Settlement Agreement, which will allow the Government of Canada to continue fulfilling its commitment to fund awards to claimants resulting from the independent assessment process and alternative dispute resolution. The $179 million is composed of $136 million in new resources to address the increased volume of payments and $43 million that is requested to be reprofiled from the previous fiscal year. With this incremental $179 million this year, total overall funding for these settlements will reach almost $2 billion over six years. The department anticipates there will be over 2,500 decisions resulting in compensation this fiscal year.

For the second item, the Government of Canada continues to support the federal contaminated sites action plan for the assessment, management, and remediation of federal contaminated sites. The $109 million will target sites of high priority, including the Giant Mine, a former gold mine in the Northwest Territories, and the Faro Mine in the Yukon.

The third item of $95 million identified for emergency management assistance will allow the department to meet its responsibilities to assist first nations communities living on reserves in managing emergencies. This fiscal year the costs are primarily related to extraordinary spring flooding in Manitoba, Saskatchewan, and Alberta; forest fires in Ontario and Alberta; as well as storm surges in Atlantic Canada. This funding is used to reimburse first nations, emergency management organizations, provinces, other emergency management organizations, and host municipalities for the response and recovery costs incurred related to emergency situations on reserve.

On the fourth item, the department continues to address the resolution of specific claims to deal with past grievances of first nations that relate to Canada's obligations under historical treaties or the way it managed first nations funds or assets. This fiscal year the pace of the resolution of specific claims is such that the department is requesting an additional $77 million from within the $2.5 billion set aside in the government's action plan for accelerating the resolution of specific claims, “Justice at Last”.

To date, in 2011-12 the department has spent $234 million to resolve the Fort William First Nation boundary claim in northwestern Ontario—$154 million—and the Roseau River Anishinabe First Nation's 1903 surrender claim—$80 million. A number of other claims are expected to be resolved this fiscal year.

Other smaller initiatives included in these supplementary estimates are $14 million for education funding in British Columbia and Nova Scotia; $12 million to implement the Eeyou Marine Region Land Claims Agreement, once implementation legislation to bring the agreement into effect has taken place; $10 million to upgrade, replace, or repair essential fuel storage tanks in first nations communities across the country; and approximately $50 million for various initiatives, including funding for improvements in the northern regulatory system and cumulative impact monitoring program, $10 million; implementation of a prevention-focused approach for child and family services in Manitoba, $6 million; registration of applicants for Indian status as a result of Bill C-3, Gender Equity in Indian Registration Act, $6 million; and the aboriginal peoples survey, which will focus on education and employment income, $4 million.

In closing, I would like to thank you, Mr. Chair, and your colleagues for inviting us to appear before the committee today and permitting me this time to provide you with a summary of AANDC's activities and outline the requests in Supplementary Estimates (B). My colleagues and I would be happy to respond to questions and comments from committee members.

Thank you.

[The Chair, NDP, Pat Martin]

Thank you, Ms. MacGowan, for that presentation.

We will have five-minute rounds for both questions and answers. So if we could keep the answers fairly short, that will allow people more questions.

To begin with, Mathieu Ravignat for the New Democratic Party.

[Mathieu Ravignat, NDP, Pontiac, QC]

Thank you, Mr. Chair.

I would like to thank the witnesses for being here today.

As you know, the Conservative government has started making massive cuts in the various departments, especially in Aboriginal Affairs and Northern Development Canada. These cuts exist, even though a number of aboriginal communities are currently facing considerable challenges.

How might these cuts harm the communities? How will they affect the quality of your work when the time comes to help these communities? Have you specifically considered these probable cuts when making your requests for the Supplementary Estimates (B)?

[Susan MacGowan]

The department has put in place a number of cost-containment measures to address certain of the limits within government. We are working very hard to make sure that these don't affect our communities. In fact, on the operation and management side, we have already put in measures to address IM/IT cuts, legal costs, or other items in support of government direction. We've made cuts in hospitality and conference in respect of the caps imposed. We are absorbing salary increases with respect to the operating budget freezes.

In terms of oversight within our department, we have solid governance structures where monthly we review the department's overall financial situation.

[Mathieu Ravignat, NDP, Pontiac, QC]

Thank you, Ms. MacGowan. That was very interesting.

But could you tell me if this will have an impact on the services that you provide to these communities?

[Susan MacGowan]

With respect to the exercise the government is now undertaking in terms of the deficit reduction action plan, our minister has put forward his proposals to that particular committee. Clearly, we don't know the outcome of those, and we won't until the federal budget in the spring.

[Mathieu Ravignat, NDP, Pontiac, QC]

Do you know if any of the reconciliation programs are going to be affected?

[Susan MacGowan]

I wouldn't presume to guess what the committee is going to be doing.

[Mathieu Ravignat, NDP, Pontiac, QC]

I recently had the honour of meeting the chief of Kitigan Zibi, Gilbert Whiteduck, in my riding.

Let's remember that the Algonquin communities of Pontiac, Lac-Barrière and Kitigan Zibi have major water problems on their reserve. The water quality problem is common to many reserves. Given all these problems, we could expect to find requests for additional expenditures to help out these communities.

Do the Supplementary Estimates include amounts set aside for the water infrastructure crisis?

[Susan MacGowan]

These supplementary estimates don't request additional moneys in the case of water and waste water. However, the department does have programs that allocate money to projects on a priority basis. That would be the level of detail I have on that, in the context of the supplementary estimates.

[Mathieu Ravignat, NDP, Pontiac, QC]

So none of the estimates here ask for additional money for water infrastructure?

[Susan MacGowan]

No.

[Mathieu Ravignat, NDP, Pontiac, QC]

Okay.

How much time?

[The Chair, NDP, Pat Martin]

Half a minute still, Mathieu.

[Mathieu Ravignat, NDP, Pontiac, QC]

You are asking for $179.4 million for amounts set aside for claimants following the independent evaluation process.

Do you think that there will continue to be more requests and claims in the next year? Is that one of the reasons why you added it to your expenses?

Also, how do you explain that the government has not been able to provide a more accurate estimate of the expenditures related to the program?

[Élisabeth Châtillon, Assistant Deputy Minister, Resolution and Individual Affairs Sector, Department of Indian Affairs and Northern Development]

Thank you very much, Mr. Chairman.

I'm very pleased to have the opportunity to update honourable members on the IAP implementation.

On the first part of your question, in terms of the number of applications received—we've received 23,000 applications so far and have resolved 12,000. You asked why the estimate done by the former department of Indian Residential Schools Resolution Canada in 2005 was not accurate. It was 12,000 at the time. Because this is a massive class-action settlement, there is no solid precedent for this type of program or for the content—the abuse. So at the time, the department used academic and judicial studies on institutional child abuse and determined from all the information they had that about 15% would be the level. Out of 80,000 living eligible survivors, that came to 12,000.

Five years into the program, we believe now that the level is closer to 30%, and therefore we are expecting closer to 30,000 applications by the deadline of next September.

[The Chair, NDP, Pat Martin]

Mathieu, I'm afraid you're well over—

[Mathieu Ravignat, NDP, Pontiac, QC]

Thank you.

[The Chair, NDP, Pat Martin]

You'll have to continue that in your next round.

For the Conservatives, the first round of questioning is to Jacques Gourde.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Thank you, Mr. Chair.

Thank you to the witnesses for joining us this afternoon.

For background purposes and for the benefit of Canadians, what are the major challenges facing aboriginal communities in the north? What is the Government of Canada doing to support them in light of these challenges? And lastly, please tell us about governance and how the money is transferred and administered.