Pages and pages.
Thank you very much, Mr. Chairman. Today I'll be presenting the House of Commons main estimates for 2009-10, which demonstrate that sound resource management is a key institutional priority for the House of Commons.
The House Administration strives to deliver and continuously improve the services that we - as Members - need to carry out our parliamentary functions and to develop and sustain a sound infrastructure to support our institution.
These activities are consistently carried out within a sound financial management framework. Specifically, in light of the current fiscal situation, an even more stringent review of requirements was conducted in preparation for the 2009-10 main estimates.
The 2009-10 main estimates were approved by the Board of Internal Economy on December 8, 2008, in the amount of $426,540,950. This represents an increase of only 0.4%, or $1,488,551, over fiscal year 2008-09. For reference purposes, you will have received a document outlining the year-over-year changes from 2008-09 to 2009-10.
To help facilitate today's discussion, I will provide an overview of the budget increases and reductions along six major themes: Budgets for Members, House Officers and Presiding Officers; Security; Services to Members; Infrastructure; Salaries; and Committees and Parliamentary Associations.
I will begin with an overview of the adjustments to the budgets for Members, House Officers and Presiding Officers.
In December 2008, the Board of Internal Economy approved a 1.5% increase in members' office budgets, including supplements; the House officers' budgets; the presiding officers' budgets; and the members' travel status expenses account. This increase, which became effective on April 1, 2009, represents additional funding of $2 million. This increase is also in line with the Expenditure Restraint Act.
The main estimates also show a reduction of $565,000 for an adjustment to House officers' budgets. The budgets were established for the 40th Parliament based on the election results for all parties, using the formula that was recommended by the political parties and approved by the Board of Internal Economy. Additionally, the estimates reflect a reduction in funding for the former Prime Minister. The board had previously approved an annual budget of $140,000, plus employee benefit plans, for the former Prime Minister for the duration of the 39th Parliament.
I will now move to the funding allotted to security. In December 2008, the board approved funding of $787,000 to establish a dedicated information technology security unit, and to provide IT support for security services in new House of Commons buildings and facilities.
This funding is necessary because of a significant increase in the number and sophistication of IT security threats. We have also experienced many ongoing changes to our business environment, such as additional committees, additional facilities/locations, greater user mobility and the increased reliance on secure IT services.
By establishing a dedicated IT security unit, the House administration will be able to continue improving its security practices by reducing common IT security issues, while also increasing its ability to identify quickly and respond to more serious cyber incidents.
Additionally, allocating funds to expand the IT infrastructure will enable the House administration to provide critical IT support to security services and new facilities throughout the parliamentary precinct and in satellite buildings. This is in keeping with the long-term vision and plan for the maintenance of the parliamentary precinct.
Given the essential work that members and the House administration carry out using our IT infrastructure, the board recognized the importance of continuing to protect it against emerging threats.
I will turn now to the funding that is attributed to services to Members.
In December 2008, the board approved $335,000 in funding to purchase and integrate an additional module for the House's financial management system that will automate procurement and contract management. The implementation of the new module will reinforce sound financial management practices and strong stewardship of public resources; support competitive processes that maximize the suitability of goods or services being purchased and give the best value for money; and enhance the quality and accessibility of procurement information, resulting in more effective planning and service delivery.
Furthermore, the Main Estimates reflect the importance of maintaining and sustaining the investments made in the technological infrastructure.
To this end, the board has approved $617,000 in funding for the ongoing maintenance, replacement, and support costs required for the management of audio and video assets in digital format. This is part of the overall migration from analog to digital broadcasting services that is being implemented within the long-term vision and plan for the parliamentary precinct. This migration will ensure that we are meeting broadcasting industry and House information technology and management standards, while also supporting access to audio and video recordings of parliamentary proceedings in digital formats.
The main estimates also reflect a reduction in funding of $75,000 for information technology requirements. This temporary funding had been approved in 2008-09 to replace the contact centre program implemented in 1995 with a newer version that would expand the support channel for members on the Hill and in their constituencies. This temporary funding is no longer required.
Before moving on to the salary adjustments that are accounted for in the main estimates, I'd like to touch briefly on the implications of the Budget Implementation Act, 2009. As you know, the Expenditure Restraint Act contains provisions that limit increases in salaries to 1.5% in 2008-09, 2009-10, and 2010-11. The act applies to members, members' staff, as well as House administration. However, it's important to note that the act will not be applied retroactively, and any agreements that were reached prior to the royal assent of the act will be respected. Salary adjustments after royal assent will respect the act and will be included in future funding requests.
As reflected in the main estimates, the Board of Internal Economy previously approved $3.9 million to cover economic and step increases for House administration employees prior to April 1, 2008.
This includes funding for: the collective agreements for the Operational Group, the Technical Group, the Procedural Clerks and Analysis and Reference Group, and the Reporting and Text Processing Sub-group; salary step increases for employees who are not at their maximum salary level; and salary increases for senior managers that are in keeping with the Treasury Board economic increase.
Furthermore, in accordance with the Parliament of Canada Act, members' salaries and allowances are adjusted each year on April 1. The adjustment is based on the index of the average percentage increase and base rate wages in Canada resulting from major settlements in the private sector. Using that formula, salaries have been increased by 3.1%. The main estimates allocate $1.4 million to cover the increase as of April 1, 2008.
I should also note that while the main estimates we are discussing today are not affected, the Parliament of Canada Act will also be amended so that future salary increases comply with the Expenditure Restraint Act.
Furthermore, the estimates provide $819,000 for budget increases related to other personnel costs. These non-discretionary expenditures are due to a rising number of maternity and parental leave claims and payments related to severance and vacation pay resulting from an increase in employee retirements. The main estimates also reflect Treasury Board's adjustment to the annual rate of employer contributions to employee benefit plans. For 2009-10 the annual rate has been adjusted from 17.5% to 17%, which represents a reduction of $995,680 in required funding.
The main estimates also include pension adjustments to the Members of Parliament Retiring Allowances Account and the Retirement Compensation Arrangements Account. As per Treasury Board policy, the House of Commons' contributions to these accounts are based on estimates determined by the Chief Actuary of the Office of the Superintendent of Financial Institutions. The reduction of $6.3 million represents the difference between temporary funding that had been required to cover an estimated deficit and a cumulative increase in the estimated employer contributions.
Finally, under the theme of committees and parliamentary associations, you'll note there's been a reduction in funding of $268,000.
This funding had been approved by the Board in June 2007 to host the Organization for Security and Cooperation in Europe's meetings in Toronto. Since the meetings were held in September 2008, this funding is no longer required for fiscal year 2009-2010.
I've now provided you with a brief overview of the 2009-10 main estimates that were approved by the board. I am confident that you will agree that these estimates are fiscally responsible, while at the same time being attentive to and reflective of our needs and concerns as members of the House of Commons.
I would be happy to answer any questions that you may have, with the help of my colleagues who are here with me today.
Thank you, Mr. Chair.