Evidence of meeting #47 for Government Operations and Estimates in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Daniel Jean  Deputy Minister, Department of Canadian Heritage
René Bouchard  Executive Director, Portfolio Affairs, Department of Canadian Heritage
Robert Hertzog  Director General, Financial Management Branch, Department of Canadian Heritage
Anne-Marie Robinson  President, Public Service Commission of Canada
Guy Giguère  Chairperson, Public Service Staffing Tribunal
Lisanne Lacroix  Registrar and Deputy Head, Public Servants Disclosure Protection Tribunal
Casper Bloom  Chairperson, Public Service Labour Relations Board
Clerk of the Committee  Mr. Marc-Olivier Girard

3:50 p.m.

NDP

The Chair NDP Pat Martin

Thank you, Mr. Armstrong.

Next, for the NDP, is Denis Blanchette for five minutes.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

Thank you, Mr. Chair.

Thanks to our guests for being with us today.

I would like to talk about the media fund issue. That fund increased from $34 million to $134 million in one year.

How will this additional funding be spent?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

First I would like to clarify one point. There was funding, but it was temporary. It became permanent in last year's budget, and that is what you see in the estimates.

As for the way that funding is invested, there is private business funding. That is a budget of more than $300 million. There is a competition for that money. It is managed by an independent organization that receives applications. There are various categories and criteria.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

Is it strictly for television programs?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

It is for television and interactive media. We are looking at all platforms now. Some criteria even require an audiovisual creation to be offered on more than one platform.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

You say there was temporary funding, but how much does the actual increase amount to?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

To $100 million for the permanent funding.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

You are adding $15 million for the Canada Periodical Fund, but could you tell us more about digital? What are you supporting with this measure?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

The Canada Periodical Fund operates somewhat like the Canada Media Fund. There are applications and criteria. We try to encourage conventional publications to go digital. We also try to urge people in the digital field to move more toward the conventional sector.

I do not have any more details to give you at this point, but I will definitely be pleased to provide you and committee members with more later.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

I would be grateful to you for that. Thank you.

You have a structural deficit at the department. Can you tell us more about that? How did it occur and what measures have you taken to contain it?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

The department's structural deficit is really internal. It affects what we call our vote 1s. The origin of the deficit goes back as far as 2003. There have been reduction exercises in the past that were not implemented at the department. There were also other secondary measures. As a result of all that, the structural deficit amounted to about $60 million two years ago. In recent years, all departments and agencies have absorbed their payroll budgets, as a result of which the deficit has grown to approximately $66 million.

Before the budget, we had cut the deficit by $40 million by refocusing on our priorities. For example, we reduced our international spending, our programs and travel. We cut our spending on management of intergovernmental issues. We reviewed the operation of our internal services and established consolidated services. We transformed some aspects to make them simpler, less complicated and less costly. We consolidated our space.

Taking all that together, we had eliminated $40 million of the $66-million deficit before the 2012 budget. Over the next three years, we will eliminate the remaining $26 million.

The minister has been very clear. He has said publicly that he is making an effort to eliminate his internal structural deficit in order to protect program funding.

3:50 p.m.

NDP

Denis Blanchette NDP Louis-Hébert, QC

You have a structural deficit, but you are being asked to make budget cuts. Will that delay full elimination of your structural deficit?

3:50 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

Before the budget, we had already reduced our structural deficit by $40 million, which represents two-thirds of the total deficit. We plan to reduce the remaining $26 million over three years.

On April 10, when we announced the impact of our measures to our employees, we had already informed those who might potentially be affected by the next round of cuts.

In the first round of cuts, that is to say the first $40 million, 360 permanent positions were eliminated. At the time, important events such as the Olympic Games and the Shanghai Expo, which had limited funding, were coming to an end. That represented 140 more positions. So we had already cut 500 positions before the budget.

Now with regard to the budget itself, the total deficit is 38 positions. The largest portion of our funding is allocated to programs. So the budget itself does not have a major impact. However, we must cut 245 more positions to eliminate the rest of the structural deficit, that is $26 million. We have striven to cut all possible vacant positions at every stage. We put our employees back in positions that were going to be vacated for transitional reasons.

With regard to the first round of cuts, although we cut all those positions, we have thus far been able to reassign all but three of our employees. We will make the same effort to reassign as many employees as possible in the next round.

The budget affects 38 positions, and eliminating the remaining $26 million of the structural deficit means another 245 positions. We are talking about approximately 280 positions. We have been able to limit the impact of those cuts to 175 employees, and that figure will continue to fall.

3:55 p.m.

NDP

The Chair NDP Pat Martin

Thank you, Mr. Blanchette, and thank you, Mr. Jean.

For the Conservatives, we have Bernard Trottier for five minutes.

3:55 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

Thank you, Mr. Chair.

Thanks to our guests for being here today.

First I would like to talk to you about the Canada Media Fund. This is very important from an economic standpoint. As you know, there are a lot of jobs and economic activity related to film and television production in Toronto, the city I represent. In the riding of Etobicoke—Lakeshore, which I represent, there are three major studios: Cinespace Film Studios, William F. White International Inc. and Back Alley Film Productions Ltd.

I see a major difference. Here we're talking about an increase of more than $99 million. Could you tell us about the effects of that investment, about the way things have changed in recent years?

3:55 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

As I said earlier, this has an enormous impact because it also has a leverage effect. A substantial portion of the funding comes from the private sector. That enables creators, producers and broadcasters to broadcast Canadian content created by people who are competing for that funding. This is what enables us to have highly original Canadian content.

You need only look at French-language television programs, on Radio-Canada, TVA or V. Since you ask me the question, I am giving you that example. This is what I monitor particularly to determine what quantity of Canadian content is subsidized and provided to us thanks to the Canada Media Fund.

3:55 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

And then there are the Telefilm Canada investments. That is another production-related asset. Could you tell us about the difference between Telefilm Canada and the Canada Media Fund?

3:55 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

In the case of Telefilm Canada, we're talking about both feature films and certain documentaries. As you know, we have had enormous success in recent years with films made through funding from Telefilm Canada. Incendies, two years ago, and Monsieur Lazhar, last year, were in the running for the Oscar for best foreign film.

3:55 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

In another connection, I would like you to tell us about the Canadian Museum for Human Rights. This is a subject of great interest to us in Toronto. We want to talk about all groups in the world that have suffered from a human rights standpoint.

Could you tell us about the consequences of this cut under the main estimates?

3:55 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

In fact, this concerns the construction cycle. The money the government was to allocate for construction has been advanced. Now, in a way, the issue is more about operating funding. That is why you see a sharply declining funding profile. A sum of $100 million was advanced for construction. Those votes have been advanced.

3:55 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

What is the forecast? Could you tell us whether it is promising for the museum's success?

3:55 p.m.

Deputy Minister, Department of Canadian Heritage

Daniel Jean

At the moment, 80% of the museum has been built. I believe 95% of contracts have already gone to tender. As you know, this is one of the two museums located outside the national capital. The other is in Halifax. That is Pier 21. Those people are trying to complete construction of the museum and to start working on exhibitions.

4 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

Thank you.

How much time do I have left, Mr. Chair?

4 p.m.

NDP

The Chair NDP Pat Martin

You have one minute, Bernard.

4 p.m.

Conservative

Bernard Trottier Conservative Etobicoke—Lakeshore, ON

All right.

Could we talk about museums generally? For example, are young people, who have access to a lot of data through the Internet and other media, still attracted to Canadian museums?