Government Operations Committee on June 16th, 2020

[Alison McDermott]

That's right. The CERB extension says that individuals who come up against the eligibility limits will have eligibility for another eight weeks. When the next report is tabled, we'll have some estimate of the fiscal impact of that decision to extend, and there are always updates provided on the current payouts to individuals under that program.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you so much.

I just want to state for the record that I have the utmost respect, Mr. Chair, for my honourable colleague Mr. McCauley, and I hope he didn't feel that I singled him out. Of course I would not be talking about him because I have a lot of respect for this gentleman.

Mr. Purves, can you explain to this committee why Treasury Board uses vote 5 or why departments would be forced to use vote 5?

[The Chair, Conservative, Tom Lukiwski]

If you could do it in 30 seconds, the chair would greatly appreciate it.

[Glenn Purves]

Payments arise. They're urgent payments and they have to be made before the next supply cycle. Vote 5 is there to facilitate circumstances when these unforeseen expenditures that are often urgent and for important initiatives need to be made. The use of vote 5 up to now, that's in the online report, has all been for COVID-19 measures.

[The Chair, Conservative, Tom Lukiwski]

Thank you very much.

We'll now go to Mrs. Block for five minutes, please.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much, Mr. Chair. I wasn't sure if I was going to get an opportunity.

My questions will be for the witnesses from the Department of Finance.

Yesterday the Government of Saskatchewan unveiled a provincial budget. Why isn't the Government of Canada preparing and releasing a budget for Canadians?

[Alison McDermott]

I'll take that one.

I think the Prime Minister and the Minister of Finance have both spoken on this matter. The government has not said they will not produce a budget. They are concerned about the timing: what we are able to say at a given point in time and how easily what is said is going to stand the test of time. I think they're worried about the uncertainties that are prevailing in the economy right now.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

In the current context of the pandemic, which is what I think you're referring to, is it within your department's capabilities to prepare a budget at this time?

[Alison McDermott]

From a technical standpoint, lots of things can be done mechanically, but I think the real question is whether it is the right time to provide a budget that provides useful information about the government's economic and fiscal situation. The government is studying these issues.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Can you tell me the difference between a full budget and an economic or fiscal update?

[Alison McDermott]

Generally, a budget tends to be a larger exercise involving more expenditures and is for making decisions on a go-forward basis for an entire year. Typically, an economic update is provided at a different time of the year from when you traditionally put out budgets. Often it's seen as a starting point for the fiscal forecasting process that allows us to deliver a budget in subsequent months.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

In your opinion, would the economic upheaval of this pandemic not be an appropriate time to present Canadians with some sort of financial update on the nation's finances?

[Alison McDermott]

I don't think the decision can be made at this point, but we are studying these issues. We're looking at the economics and discussing the economic issues with private sector economists. There is a great deal of uncertainty with respect to the whole set of issues around the evolution of the virus, so—

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Uncertainty exists not only for the federal government but for the provincial governments as well, yet the Government of Saskatchewan was able to work through the uncertainty and unveil a provincial budget. I believe other provincial governments are looking to do the same.

How long do you think it's going to take you to study your ability to put forward either a budget for Canadians or some sort of financial update so that they can understand exactly what state the nation's finances are in?

[Alison McDermott]

I appreciate the comment. We're certainly doing that work. That work is under way and we know there is a lot of interest.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

We've been asking a number of questions regarding vote 1a and the amount budgeted in the supplementary estimates for communications. Given that there has not been a budget, will there be savings in the Department of Finance in advertising? If so, could that simply then be diverted to advertising for COVID-19?

[Glenn Purves]

Sorry, just so that I understand, is this question directed to Finance or—

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Yes, it's for Finance.

[Alison McDermott]

Obviously, I'm not from the communications team, but my sense is that the communications team is working overtime, if anything. The new money for advertising is being fully allocated, so it's not obvious that there would be savings.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Right, but my question was about the fact that usually when the budget is—

[The Chair, Conservative, Tom Lukiwski]

I think Madam McDermott heard your question quite clearly—at least I assume she did—and I would ask that she provide a fulsome answer to your question in writing as quickly as possible through the clerk, because we're completely out of time.

We'll now go to Mr. MacKinnon for five minutes please.

[Steven MacKinnon, Liberal, Gatineau, QC]

In that same line of thinking, let me ask the witnesses from Finance this as well. In terms of public communications on government priorities, whether they be budget related or COVID related, of course that money would be available to broadly communicate government priorities, would it not?

[The Chair, Conservative, Tom Lukiwski]

Madam McDermott, I think that question was directed to you.

[Alison McDermott]

I agree with the point that the existing Department of Finance budget could be used for all government priorities and all announcements, most of which in recent weeks and months have focused on COVID-related responses.

[Steven MacKinnon, Liberal, Gatineau, QC]

Is there anything else you thought of that you left out in your answers to Ms. Block prior to this?