Evidence of meeting #43 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was spending.
A recording is available from Parliament.
4:35 p.m.
Conservative
Kelly Block Conservative Carlton Trail—Eagle Creek, SK
Thank you very much.
How much time do I have left?
4:35 p.m.
Conservative
The Chair Conservative Kelly McCauley
Thanks, Ms. Block.
We have Mr. Bains for five minutes, please.
4:35 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Thank you, Mr. Chair, and thank you to our witnesses for joining us today.
My first question is that the PBO's June Inflation Monitor found “that supply or sector-specific issues are a key driver of high inflation.” Can you please elaborate on that?
4:35 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
We released a report a couple of months ago—I think maybe in June—where we looked at the main sources of inflation, and we found that a good part of inflation was due to supply chain disruptions. Domestic demand is of course one important factor, but it's not the only factor. That's what that sentence that you quoted refers to—foreign or even domestic, but mostly worldwide supply chain disruptions that are constraining supply and therefore contributing to upward price pressures.
4:35 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
There was another statement in there that said, “rising energy and food prices are a global phenomenon”. Can you please elaborate on that as well?
4:35 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
We also noticed, as is widely acknowledged, that energy prices have been under pressure worldwide in good part as a result of the invasion of Ukraine by Russia, and also due to strong demand in many countries for energy. Energy prices had increased significantly at the time we released that report, and food prices also shot up when there were significant concerns about supply related to the war in Ukraine and also some more localized issues related to food production. That's what we meant by that sentence. It's not a Canadian phenomenon; it's not a purely domestic phenomenon, but it's something that's affecting countries around the world.
December 1st, 2022 / 4:40 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Thank you for clarifying that.
Part of the green movement goals for PSPC includes the work that has been done to help green buildings and reduce GHG emissions by using sustainable resources. Do you believe that funding for these green solutions is a sound investment for the future?
4:40 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
That's a good question, but it's a policy decision much more than something within my own bailiwick. I don't think I am the best placed to determine whether investments in greening government buildings are appropriate or inappropriate. That's up to you to determine as decision-makers.
4:40 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Sure, I'll move on.
You mentioned that you had appeared before the committee previously to talk about the shipbuilding strategy. Can you please share with us your thoughts on the national shipbuilding strategy and how you believe resource allocation could be improved?
4:40 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
On the national shipbuilding strategy, we looked at specific procurement projects, notably the Canadian surface combatants, and we found that the cost of procuring these 15 warships is expected to be significantly higher than was initially anticipated. Our last estimate for the development and procurement phase estimates the cost to be about $81 billion, if I'm not mistaken, whereas the initial estimates by the government were about $26 billion.
There's a big discrepancy, which is in good part due to the time that has passed since the initial government estimate, and also due to design changes and many other decisions related to the design of the ships.
I could elaborate a little bit more on that, but I think your question was broader and related to the national shipbuilding strategy, which I cannot comment on in its entirety because we haven't looked at the strategy in its totality.
4:40 p.m.
Liberal
Parm Bains Liberal Steveston—Richmond East, BC
Thank you.
How has the Parliamentary Budget Office incorporated gender-based analysis plus, GBA+, into this report?
4:40 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
It's a Government of Canada policy. It's not something that we necessarily consider in each and every one of our reports.
4:40 p.m.
Conservative
The Chair Conservative Kelly McCauley
Thank you, Mr. Giroux.
Thank you, Mr. Bains.
We have Ms. Kusie for five minutes, please.
4:40 p.m.
Conservative
Stephanie Kusie Conservative Calgary Midnapore, AB
Thank you, Chair.
I ended my last round of questioning on section 1 of your report on the supplementary estimates titled “Why the Government Wants Another $21 billion”, and my previous question was whether you think the funds requested in the supplementary estimates could have been forecast in either the supplementary estimates (A) or the main estimates.
This is my follow-up question to that. Do you think the funds requested are going toward new programs or toward operational costs that should have been predicted at a much earlier time?
4:40 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
It varies depending on the specific items. For example, there is significant money allocated to indigenous issues, notably claims settlements. On this one, it is much more difficult to predict the exact timing when funds will need to be disbursed, because it depends not only on the government's settling these claims but also on the aggrieved parties accepting the proposed settlement. It would probably have been very difficult for the government to anticipate that before.
The same probably goes for additional support for Ukraine. It is difficult to determine exactly when the funds will be necessary.
For other things such as the request by the Department of Finance for $2 billion to reduce backlogs of surgeries and procedures, this one could probably have been anticipated a bit sooner; but, again, others can debate that.
On leveraging transit funding by the Department of Finance to build more homes, this was a budget measure. It could probably have made its way into supplementary estimates (A), but officials will probably say that it would not have been possible.
We need to scrutinize each and every one of these big-ticket items to determine more precisely whether they would have been ready on time for main estimates or more likely supplementary estimates (A).
4:40 p.m.
Conservative
Stephanie Kusie Conservative Calgary Midnapore, AB
That's very analytical. That's great. Thank you so much.
I'm going to switch to another topic now.
We are seeing the continuation of virtual work within the public service and the working model being redesigned both for more out of the NCR-type of rotational workplaces in addition to more working from home—virtual work, I should say. I shouldn't specify that it would be at home.
On virtual work, has your office done any estimates of the percentile of the federal service that has migrated to virtual work and the impact of that on existing vacancy rates, both rented and owned properties, within the national capital region? Have you taken a look at any of that?
4:45 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
No, we have not looked at that—not yet.
4:45 p.m.
Conservative
Stephanie Kusie Conservative Calgary Midnapore, AB
Do you anticipate that you will look at that in the future given that when the Minister of Public Services and Procurement was here, she indicated that departments were beginning to evaluate their current or emerging work models and the number of employees who will be working virtually?
Do you anticipate that you would get an idea as to what this potentially would look like in the future in terms of cost savings?
Actually, this would be a good question: Would you know offhand the current rent for all buildings within the national capital region?
4:45 p.m.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
To answer your last question, no.
With regard to whether we have any study of vacancy rates and the impact of migrating to hybrid work arrangements, that's not currently on our work plan. However, should the committee wish us to do so, I would be happy to oblige.
4:45 p.m.
Conservative
Stephanie Kusie Conservative Calgary Midnapore, AB
Okay. That's very encouraging. It almost sounds like a request for us to put a motion forward to evaluate this. Thank you so much.
I have some more questions on the public accounts and how we can make them easier for Canadians to read and understand, but I will save that for a further meeting, Mr. Giroux.
Thank you for being here today.
Again, thank you for your work as well.
4:45 p.m.
Conservative
The Chair Conservative Kelly McCauley
Thank you, Ms. Kusie.
We'll go back to Mr. Jowhari for five minutes, please.