Evidence of meeting #18 for Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was board.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Janice Charette  Deputy Minister, Department of Human Resources and Skills Development
Karen Kinsley  President, Canada Mortgage and Housing Corporation, Department of Human Resources and Skills Development

11:10 a.m.

Conservative

The Chair Conservative Dean Allison

Pursuant to Standing Order 81(4), on main estimates 2009-2010, I would like to welcome here today the Minister of HRSDC, Ms. Finley; and Rona Ambrose, the Minister of Labour. Thank you for being here. We haven't seen you in front of our committee before, so it's great that you're both here with us, and of course your respective deputy ministers.

I'll start with you, Minister Finley. I know you have an opening statement of about ten minutes. Then I'll move to Minister Ambrose for an opening statement of ten minutes or so.

As is the tradition, the first round of questioning is for seven minutes, followed by subsequent rounds of five minutes each for questions and answers.

Thank you once again for taking time out of what I know is your very busy schedule to be here to talk about the estimates.

Ms. Finley, the floor is yours.

11:10 a.m.

Haldimand—Norfolk Ontario

Conservative

Diane Finley ConservativeMinister of Human Resources and Skills Development

Thank you very much, Mr. Chair.

I am pleased to be here before you today alongside my colleague, the Minister of Labour. We're here to answer questions on the 2009-10 main estimates for Human Resources and Skills Development Canada, and the Canada Mortgage and Housing Corporation. We'll also talk about the report on plans and priorities for HRSDC.

This report presents the department's key priorities to support Canadians in these difficult economic times.

The global economic situation has deteriorated further and faster than anyone predicted. While Canada continues to fare better than many other countries, Canadians are feeling the effects of the global recession, and frankly, they're worried.

Canadians are worried about losing their jobs, their homes, even their businesses.

Our government understands that Canadians are worried about putting food on the table and finding work to keep their homes and provide for their families. That's why we've taken unprecedented steps to support the unemployed, preserve jobs, and retrain workers for the jobs of the future. Many of the programs we deliver were introduced or enhanced in direct response to the economic pressures now facing Canadians.

But before I address some of the measures that we introduced in our Economic Action Plan, I would like to address a few things about this year's main estimates.

I wish to remind the committee that the main estimates do not reflect announcements made in this January's budget. Those spending initiatives will show up in the supplementary estimates later in the year. You may have also noticed, if you compare the main estimates figures from last year to this year, there is a decrease in some areas.

I want to be clear that these decreases are not cuts to the existing program.

I want to be clear that these decreases are not cuts to existing programs. These figures simply reflect a better alignment between planned and actual spending.

For fiscal year 2009-10, the Department of Human Resources and Skills Development has planned expenditures of more than $94.7 billion. Of that amount, Canadians directly benefit from $89.5 billion through statutory transfer payment programs such as employment insurance, Canada Pension Plan, old age security, and the universal child care benefit. In addition, the Canada Mortgage and Housing Corporation--you may know it better as CMHC--has planned expenditures in 2009-10 of $3.1 billion. Of this amount, $2 billion is dedicated to housing programs, as outlined in the main estimates.

With respect to our Economic Action Plan, let me begin by emphasizing that our government is always concerned when a Canadian loses his or her job.

We understand the pressures faced by Canadian families, and we're well aware of the challenges that many Canadians are facing in these uncertain economic times, particularly as unemployment rises. To address these challenges, our government is making record investments to stimulate the economy, support the unemployed, preserve jobs, and retrain workers for the jobs of the future.

With the cooperation of our provincial and territorial partners, the federal government's economic action plan will inject almost $52 billion into the Canadian economy over the next two years. We know that jobs are the key to economic recovery, and that's why our economic action plan is built on three pillars: creating jobs, preserving jobs, and preparing Canadians for the jobs of the future.

The economic action plan will provide $7.8 billion to build housing, encourage home ownership, and promote home energy efficiency. This is in addition to the $1.9 billion over five years that was announced last September for the renewal of housing and homelessness programs. This includes the homelessness partnering strategy, and programs such as the affordable housing initiative, and the residential rehabilitation assistance program.

Under our Economic Action Plan, we are making good progress.

We're now accepting applications from municipalities for up to $2 billion in direct low-cost loans for housing-related infrastructure projects. These loans are for ready-to-go projects. As well, we're investing $2 billion over two years to build new social housing and to renovate existing social housing stock. The provinces and territories will soon start to deliver funding on a 50-50 cost-shared basis for new affordable housing projects.

These investments help Canadian families in need of access to safe and affordable housing.They also help maintain and create jobs in communities across Canada.

We're also taking significant actions to preserve jobs. Through the federal work-sharing program, companies facing a temporary slowdown can avoid laying off staff by offering EI to employees willing to work a reduced work week while their companies recover. Through this program employees can continue to work and keep their skills up to date. And when the economy revives, the employers will not have to face rehiring and training costs.

To further improve upon this program, our economic action plan extended the duration of work-sharing agreements to a maximum of 52 weeks. We've also streamlined the process for employers.

These improvements have been very warmly received by stakeholders, and have led to more and more companies and their employees benefiting from the program.

Currently, there are more than 2,500 work-sharing agreements across Canada, and I'm very pleased to say that more than 93,000 jobs have been preserved.

Mr. Chair, we're also investing in skills and training to prepare Canadians for the jobs of tomorrow. Over the next two years the government's economic action plan will invest an unprecedented $8.3 billion in the Canada skills and transition strategy.

The goal of this strategy is to help Canadians weather today's economic storm while providing them with the necessary training to prosper in tomorrow's economy.

This two-pronged approach will strengthen benefits and give workers more time to find the right jobs. It will also help them to gain skills and emerge ready to respond once the economy recovers.

In the area of training and skills development, we work closely with the provinces and territories, as they have a better grasp of local conditions and are better placed to deliver training. Our government will transfer $1.5 billion over the next two years to provinces and territories to help workers retrain, so that they have the skills needed for the jobs of tomorrow.

This money is being directed to communities and sectors hardest hit by the downturn.

We expect that up to 150,000 Canadians will take advantage of these training opportunities.

And for people who lose their jobs through no fault of their own, we want to ensure that they can continue to make ends meet, while they search for another job.

We're doing so by nationally providing the advantages of an extra five weeks of regular benefits, currently offered as part of a pilot project that until now has only been provided in specific regions of high unemployment. In addition, the maximum duration of regular EI benefits available under the EI program has been increased by five weeks, from 45 to 50 weeks. It's estimated that this extension will benefit 400,000 Canadians in the first year alone.

I'm well aware that some members want us to waive the two-week waiting period.

We are doing better than that.

What we're doing is providing five extra weeks of EI regular benefits at the end of the eligibility period, which is when Canadians across the country told us they needed it most. We believe this measure is a better option than removing the two-week waiting period because it would help those most in need of additional benefits and do so when they most need it.

While removing the two-week waiting period would result in an additional payment of two weeks for claimants who do not use their full entitlement, it would not provide assistance to workers who exhaust their EI benefits. Eliminating the two-week waiting period means benefits would start two weeks earlier, but would also end two weeks earlier.

Our additional weeks of EI benefits provide regular EI clients with the assurance of financial support, should they require it, for a longer period of time, while they pursue their job searches.

Exhaustion of EI benefits is a tough prospect to face. Providing additional support to unemployed Canadians who would otherwise have exhausted their benefits helps those who need help the most.

Mr. Chair, given the economy, we're doing everything we can to process the increasing number of claims as efficiently and as quickly as possible. We're responding to the evolving economic circumstances. In fact, we've invested more than $60 million to increase and expand our operations.

Among other things, this investment has allowed us to hire additional staff, as well as extend the hours of service at our EI call centres.

As I said before, our government is well aware of the challenges that many Canadians are facing in these uncertain economic times, particularly as unemployment rises. That's why our government has already taken unprecedented steps to help Canadians by extending regular EI benefits for an extra five weeks, increasing the maximum regular benefit period to 50 weeks, and expanding the work-sharing program, for example.

We are also providing significant funds to help meet the different training and support needs of not only those who are eligible for EI, but those who are not eligible as well.

This will include those who have been out of work for a prolonged period of time. Our plan also takes into consideration the needs of long-tenured workers who have been laid off. To help these long-tenured workers change occupations or sectors, we're introducing a pilot project that will extend EI benefits to them so that they can pursue longer-term training. We're also proposing that workers with severance or other separation payments be eligible for earlier access to EI benefits if they use some or all of these payments to purchase skills upgrading or training.

In conclusion, Mr. Chair, in spite of our unprecedented investments, I wish to assure all honourable members and Canadians that we will continue to monitor the effectiveness of these measures and our existing programs.

We want to make sure that they are working and responding effectively to the ever-changing economic circumstances.

We want to make sure that they're working and responding effectively to the ever-changing economic circumstances.

Thank you, Mr. Chair. I'll now turn it over to my colleague, the Minister of Labour.

11:20 a.m.

Conservative

The Chair Conservative Dean Allison

Thank you, Minister Finley.

Now we'll move to Minister Ambrose.

11:20 a.m.

Edmonton—Spruce Grove Alberta

Conservative

Rona Ambrose ConservativeMinister of Labour

Thank you, Mr. Chair.

It's an honour to be joining the members of the committee. I'd like to recognize, in particular, Mr. Desnoyers and Ms. Minna, who are my labour critics and work very well with me on a number of issues. It's a great opportunity to be here with all of you to address the labour programs component of HRSD's report on plans and priorities.

As Minister of Labour, I recognize that my portfolio is one that new Canadians turn to for assistance and service excellence—particularly in challenging economic times.

I would like to begin by emphasizing the importance of the workplace—where Canadian creativity and innovation thrives.

Our government recognizes that our nation's economic wealth is generated by millions of Canadians in many workplaces, both large and small, that comprise Canada's economy. A well-functioning workplace is one in which workers are safe and treated fairly, where productivity is high, and where employers and employees cooperate in a spirit of mutual respect.

By building and sustaining such workplaces, the economy as a whole benefits and Canada's prosperity is enhanced.

Given the importance of the workplace to the economy and the economic challenges facing us today, it is more important than ever to ensure that businesses and workers have the tools they need to succeed in the current economy and enjoy renewed prosperity in the years to come.

As you know, the mandate of the Minister of Labour is to foster safe, fair, and productive workplaces and cooperative workplace relations. This mandate is discharged directly in those sectors over which the federal government has jurisdiction as well as nationally and internationally through collaboration with the provinces and territories and with other countries and multilateral organizations.

It is in each of these areas that we are working to deliver on our mandate and meeting our goals. I'd like to describe for you now some of the labour program's recent achievements and demonstrate how these investments in programs and services support hard-working Canadians and contribute to a more prosperous Canada.

First and foremost, our government supports Canadian workers, and we are providing new financial safeguards for workers in these uncertain economic times. Our government's wage earner protection program provides compensation for owed wages when an employer is declared bankrupt or subject to receivership. The WEPP provides workers with guaranteed and timely payment of eligible wages, which include salaries, commissions, and vacation pay. Now with our economic action plan, the program is enhanced to include termination pay and also severance pay.

We recognize that hard-working Canadians face very real challenges when their employers go bankrupt, and through this program our government is ensuring that we provide assistance to Canadian workers facing financial pressure due to job loss during this difficult time.

Secondly, as Canadians would expect, we are taking additional steps to ensure that workplaces are safe, secure and fair for workers. Canada is built on a promise of opportunity and hard work. Inclusive workplaces are central to a productive economy and a cohesive society. Workplaces should reflect the increasing diversity of Canada, in order to ensure that the talents of all workers can be fully developed.

Our government is committed to working towards workplaces that are fair, safe and productive so that all workers can contribute to our shared prosperity. Individuals should be able to get jobs and promotions based on their abilities, free from discrimination.

That is why our government is implementing the Racism-Free Workplace Strategy, which is a key component of the government's A Canada for All: Canada's Action Plan Against Racism. This strategy ensures that Canadian workers are treated with the dignity and respect they deserve in a productive and inclusive workplace.

A third area of important activity is our role in supporting cooperative workplace relations. The labour program offers an extensive range of preventive mediation and grievance mediation services aimed at resolving workplace differences and improving industrial relations. Today, nine out of ten collective bargaining disputes in federally regulated workplaces are settled without a work stoppage, often with some kind of conciliation or mediation help.

So far I've shared with you an overview of some of the labour program's key activities to support our future economic growth. I would also like to highlight for you a couple of new initiatives we will be undertaking over the coming year. As you may know, one of my priorities is modernizing part III of the Canada Labour Code, which establishes labour standards in the federal jurisdiction. In fact, consultations are now currently under way. We are facing challenging economic circumstances and now, more than ever, it is important that labour standards remain relevant and effective. Given the profound changes that have occurred in the labour market since 1965, the year part III of the Labour Code was first enacted, we want to ensure that federal-jurisdiction employers are supported in their efforts to run efficient businesses and effectively deploy workforces in rapidly changing market conditions. Equally important is ensuring that federal-jurisdiction employees have supportive work environments and can engage in productive work while still balancing their family lives and civic responsibilities.

It is in all our interests to ensure we have modern and flexible labour standards that can support economic prosperity for Canadians now and in the future.

I will turn now to another area of activity for the coming year that I would like to highlight for you—our international efforts. International labour agreements help level the playing field for Canadian enterprises and open up trade and investment opportunities.

Labour cooperation agreements, negotiated alongside free trade agreements, help protect employers and employees from unfair competition. They also help us make sure that fundamental labour standards are respected so economic growth can be achieved in a fair and sustainable manner.

Last year Canada concluded labour cooperation agreements with the governments of Peru, Colombia, and Jordan. These agreements are the most comprehensive agreements linking trade and labour ever negotiated by Canada, and have raised the bar with respect to the rights and obligations that the parties have undertaken. These agreements have also provided a template for future negotiations.

In concluding my remarks, let me state again the importance of the workplace to Canada's prosperity. This is where our nation's wealth is generated. It's also where many working-age Canadians spend a significant part of their lives.

I will continue to explore ways in which my portfolio can provide support to Canadians. We are fully committed to ensuring that Canadian workplaces are safe, healthy, and productive; that Canadian businesses remain competitive and strong; and that employees and employers are able to succeed in these challenging economic times.

Thank you, Mr. Chair. I look forward to questions.

11:30 a.m.

Conservative

The Chair Conservative Dean Allison

Thank you, Minister.

I thought I should maybe introduce the officials with you. I didn't do that at the beginning, and I apologize for that.

Hélène Gosselin, deputy minister of labour, welcome, and thank you for being here today.

We also have Janice Charette, deputy minister of HRSDC. Thank you, and welcome back again. I know most of you have been here before.

Also with us is Karen Kinsley, president of the Canada Mortgage and Housing Corporation. Thank you for being here.

And last but not least, we have Linda Lizotte-MacPherson, senior associate deputy minister and chief operating officer, Service Canada.

Thank you to the officials for being here today, and welcome back.

We're going to start with our first round over here on the opposition side.

Mr. Savage, I know you are going to split your time, so we'll give you four minutes and then let you know when those are up, so you can split your time. The floor is yours.

May 5th, 2009 / 11:30 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Thank you very much.

Thank you, ministers, for attending, and all of your officials as well.

I want to start off with the enabling accessibility fund.

Minister, does it seem reasonable to you that 94% of that funding should be going to Conservative ridings?

11:30 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

First of all, let me say that the fund consists of two very large grants and several smaller ones. So wherever the two large ones go is going to skew those numbers.

That being said, the enabling accessibility fund is something we're very proud of, because it is designed to help communities in large and small ways to make facilities more readily available to those who are disabled. We are talking about projects, everything from making large recreation centres completely accessible to helping people build ramps into churches.

11:30 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

But 100% of that major funding went to Conservative ridings, this after the fund was announced last year and there was speculation that it was set up specifically to go to one of those in Mr. Flaherty's riding. The press reports indicated that. When the fund was announced, the opening of proposals was set as April 1 and the closing as April 30—an extraordinarily tight timeline.

So I ask you again, does it seem reasonable to you that 94% of the total funding would go to Conservative ridings—100% of the large fund and two-thirds of the smaller fund?

11:30 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

Let's clarify a few things. A lot of the small—

11:30 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Chair, in the interests of time, I know what the program is about. I just want an answer.

In your personal view, does it seem reasonable to you that 94% of the funding would go to Conservative ridings?

11:30 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

To understand the answer, it would help to have some context. A lot of the projects are in small communities, as the smaller awards are specifically aimed at small communities. That happens right across the country.

The program was oversubscribed. The evaluation criteria were treated by a panel of experts—outside third-party experts—who did the evaluation and made the recommendations, and we relied heavily on those recommendations.

11:30 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

But does it seem reasonable to you that 94% of any program funding for a national program would go to Conservative-held ridings only?

11:30 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

I think part of the response to that, if you listen, is that a lot of it was in rural areas, and it depends on who applies. The program was oversubscribed. We relied very heavily on the advice of third-party experts here.

11:30 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Can I ask you to give us a list of those who applied for the funding?

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

I don't think we have that, do we?

11:35 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

I can get that later.

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

We certainly do not have that with us. It's a very long list.

11:35 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

I'd like to get that in a reasonable timeframe if I could.

I want to ask you about the Canadian Council on Learning. When you appeared here the last time, you indicated their funding had been extended. Two days later your officials indicated it actually had been reprofiled, which is bureaucratic language for no more funding but they can continue to exist. Has the funding for CCL been extended past this year?

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

First of all, when we say reprofiling, that is actually a term for making moneys that weren't spent in one year available in the next so that they do not expire. So I'd just like to correct the record on that.

11:35 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

So the funding was not extended, and there was no more funding put into CCL?

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

We do have an independent body, and it is free to decide how it uses its resources. Last year the government extended the funding to March 2010.

11:35 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

So there was extra funding put in for 2009-2010? That's what I'm asking.

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

The funding agreement was extended.

11:35 a.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

So there's no more money?

11:35 a.m.

Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

The funding agreement was extended until March 2010.