Yes, thank you, Mr. Chair. We've provided the clerk with copies of my remarks, which I promise will be brief. I'll move through them quickly to maximize the question time for the committee.
You've introduced my colleagues, but let me just note that Peter Harrison has joined the departmental management team and wears two hats. One is that of my associate deputy minister for the purposes of running INAC, and he is also deputy head in his own right for the purposes of the Indian residential schools organization and, therefore, would be happy to take questions related to the residential schools program and organization.
Mr. Chairman, I appreciate the opportunity, as always, to come before the committee, this time to discuss the supplementary estimates (B) of the department. Today I would like to begin by acknowledging that this is my first appearance before this committee, or any parliamentary committee, as the accounting officer of the department, designated by the Federal Accountability Act, which came into force earlier this year. Under the act I am the official personally responsible for efficient management of the department's resources, and as such, I am accountable before parliamentary committees such as this one to answer questions pertaining to those responsibilities.
As I'm sure you know, under the act, my responsibilities as chief accounting officer in this respect are fourfold: to ensure resources are organized to deliver departmental objectives in accordance with government priorities, to ensure there are effective systems of internal control, to sign departmental accounts, and to perform other specific duties assigned by law or regulation in relation to the administration of the department.
In response to initiatives undertaken by the Office of the Comptroller General in the theme of stronger management, the department has implemented a new approach to financial planning, financial management, and financial reporting, based on a chief financial officer model. This new model is designed to strengthen accountability, which is crucial for a department that manages more than $6 billion in parliamentary appropriations each year.
My colleague Peter is acting CFO for the purposes of today's appearance. We have created a permanent ADM-level position as chief financial officer, and I expect to be announcing the staffing of that position within the next couple of weeks. Earlier this year, I also created a new position of chief audit and evaluation executive, a position that will report directly to me as accounting officer and deputy minister.
I'm also proud to say that Indian and Northern Affairs Canada has actively supported the accountability work of the blue ribbon panel on grants and contributions, and has been active on a number of fronts that will contribute to a government-wide action plan targeted for late fall 2007.
As you know, promoting greater accountability is one of the Government of Canada's top priorities. This committee's scrutiny of the department's financial plans is a vital link in the accountability chain and I fully support the important work that members do.
The supplementary estimates (B), now before you, represent the final step in the supply cycle for the department for the current fiscal year. The cycle began last year, as you know, with the tabling of the main estimates of $6.3 billion, which included an increase of spending from the previous year of approximately 6.2%—or $366 million, to be more precise—over the previous year's main estimates.
The next step in the process was the 2006 federal budget, followed by supplementary estimates. Part A of the supplementary estimates requested a further $196 million from Parliament. Minister Prentice appeared before the committee last November to describe how the funds were to be invested and, in particular, described how they have helped first nations communities address urgent and critical needs brought on by floods, fires, and evacuations. The resources in the supplementary estimates also assisted residents of remote and isolated communities who suffer undue hardship as a result of rising fuel costs.
In the last phase of the supplementary estimates, tabled last month, Indian and Northern Affairs Canada requested approval for $70.3 million for various initiatives. These investments support the government's overall commitment to make tangible, measurable progress on the challenges that face so many aboriginal communities.
The largest amount proposed in supplementary estimates (B)—$27.4 million—relates to the organizational transfer of Aboriginal Business Canada to Indian and Northern Affairs. Given that the spending authorities had already been granted to Industry Canada earlier in the cycle, this transfer actually involves no new expenses to the government.
The exercise of organizational change consolidated into one department with an aboriginal focus the economic development programs that benefit aboriginal peoples. This should promote efficiency and improve the effectiveness of the existing programs. By pooling the expertise of staff and bringing them together, I'm confident the transfer will have a positive effect as we develop future programs and strategies.
These supplementary estimates also include $21 million for some out-of-court settlements. In order to avoid unnecessary and costly litigation, the department will, from time to time, settle out of court where there's a recognized legal obligation, and of course on advice from our lawyers at the Department of Justice. Settlements for this fiscal year include three significant cases: O'Chiese, Testawich, and Tsuu T'ina.
Another large investment included in the supplementary estimates would see $9.3 million spent on the aboriginal people's survey conducted by Statistics Canada. This survey will gather information about socio-economic conditions, among other data. The findings will help establish a clear baseline and enable governments and aboriginal organizations to measure the impacts of various policies and programs. Current, relevant, accurate data is fundamental to accountability.
There is one more item in the supplementary estimates that I would like to draw to your attention, and that's the transfer of First Nations SchoolNet. Again this is a transfer from one department to another, and the estimates call for $6 million to fund the program through to the end of the current fiscal year. First Nations SchoolNet enables hundreds of classrooms across the country to access the wealth of learning opportunities available to students and teachers via the Internet.
Mr. Chairman, the Government of Canada is determined to ensure that all Canadians—aboriginal and non-aboriginal alike—enjoy the prosperity of this country. Indian and Northern Affairs Canada will continue to identify and implement lasting solutions to the issues facing aboriginal peoples. The spending authorities now under consideration will enable us to take one more step towards this goal.
That concludes my opening remarks. With your permission, Mr. Chair, I'll ask Dr. Peter Harrison, who is not only my senior associate deputy but is deputy head of Indian Residential Schools Resolution Canada, to talk briefly about his department's estimates.
Perhaps after Dr. Harrison's presentation the four of us will be able to answer any questions committee members have.