Government Operations Committee on April 26th, 2022

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

It seems $77 billion will be allocated over two years.

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

We will receive other budgetary requests in the near future.

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

This year's budget allocates $77 billion. However, we also see an extra $33 billion. As was stated earlier, this might include the $8 billion for increased expenditures this year, but it does not explain the $15 billion that appear in the same budget. The Minister of Finance's budgetary measures are creating a problem, because this has been authorized. Did you yourself see the authorization?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Yes. I have seen the authorization at Treasury Board. There are also the main estimates and the budget for 2022. Unless I'm mistaken, once we receive the request from the Department of National Defence explaining the need for $15 billion and authorizing the expense, we will present the figures in supplementary estimates (A), (B), or (C). This will happen once the Minister of National Defence has made the request.

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

I will press on because time is fleeting, as you know.

You saw that the Bank of Canada raised its key interest rates and that we are expecting another hike. What will be the impact of the rate increases on debt servicing?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

That is an excellent question.

Can you repeat it, please?

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

The Bank of Canada's key interest rate went up by half a percentage point. From what we learned yesterday, it will go up by another half a percentage point in June.

What will be the direct impact on Canada's public finances? What leeway will you have in terms of authorizing expenditures?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Thank you for that additional information.

I will ask Ms. Boudreau to give you more...

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Haven't you already received information on this?

[Annie Boudreau]

No, we don't have that information.

It's really a question that should be directed to the Department of Finance. As you know, the Department of Finance publishes two economic updates on debt servicing costs. It has already done so for the 2022 budget and will publish another update this fall in the fiscal monitor review.

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

You mentioned federal buildings earlier.

Has the contract with BGIS for managing all of Canada's infrastructure been renewed? That contract is worth billions of dollars.

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Thank you for the question.

I believe that the Minister of Public Services and Procurement, Ms. Tassi, spoke before your committee on Friday. She would probably be the best person to answer your question about contract renewals.

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Hasn't Treasury Board already received a request for expenditure authorization in order to renew the contract with BGIS?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

No.

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Perfect.

Let's go now to the Department of National Defence. Is it true that the department returned $1.2 billion of its $28 billion envelope because of delays in procurement? Did you receive this information?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

I don't have any such information.

[Annie Boudreau]

Could you please indicate the fiscal year you are referring to?

[Pierre Paul-Hus, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

It was last year in the 2021 budget. The Department of National Defence did not spend $1.2 billion and returned that amount to Treasury Board.

[Annie Boudreau]

The Department of National Defence and other departments are constantly dealing with construction delays. When these delays occur, funds are indeed carried forward to the following fiscal year. The departments are allowed to carry forward to the following fiscal year amounts of up to 20% of capital expenditures. It is possible that the amount you are referring to is being carried forward.

[The Chair, Conservative, Robert Gordon Kitchen]

Thank you.

If you feel you need to add more to that, you can submit that information in writing to the clerk, who will distribute it among the committee.

We'll now go to Ms. Thompson for five minutes.

[Joanne Thompson, Liberal, St. John's East, NL]

Thank you, Mr. Chair.

Minister and your staff, welcome to the committee.

Minister, would you mind speaking briefly about the funding for Indigenous Services Canada and the CIRNAC? Their funding has significantly increased. How does this contribute to the government's journey toward reconciliation?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

As we know, it is part of our journey toward reconciliation, and the Government of Canada is committed to making the necessary investments to settle claims and support the infrastructure and services that are vital to indigenous communities. This includes their physical, mental, social and economic health and well-being.

The $39.6 billion in funding for the department of Indigenous Services Canada includes, as you probably saw, the increase in funding for out-of-court settlements and for infrastructure in indigenous communities, as well as improvements to access to safe, clean drinking water in first nations communities. It is a major priority for our government and also Canadians to undertake these investments.

This shows our ongoing journey to reconciliation.

[Joanne Thompson, Liberal, St. John's East, NL]

Thank you.

I realize this is multi-faceted, but what spending in the main estimates would help with the continuing fight against COVID-19?

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

That's a very important question. As you know, in the past two years the Government of Canada has been committed to fighting COVID-19 and to our response to support Canadians' health but also the workers, the businesses and even non-profit organizations that have been helping with the response. While projected spending is down significantly from last year, there is still a significant effort needed to keep Canadians safe and to weather the broader impacts of the pandemic.

Of the $397.6 billion in proposed spending in these estimates, approximately $9.7 billion is related to the COVID-19 pandemic response. This is a decrease of $12.4 billion compared to last year's main estimates. This funding would be used to procure vaccines, therapeutics and other supplies, for border measures, as well as for support for hard-hit businesses such as in the tourism, arts, culture and heritage sectors.

I want to add that the overall reduction of $12.4 billion is largely due to the winding down of the benefit payments to individuals under the Canada Recovery Benefits Act. Of course, Canada's COVID measures will continue to be guided by science as it will evolve and as needed.

[Joanne Thompson, Liberal, St. John's East, NL]

On the same thread, how are the protections for the federal public servants changing as COVID-19 continues to evolve?