Evidence of meeting #8 for Industry, Science and Technology in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site.) The winning word was million.
A recording is available from Parliament.
3:55 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
—the company then.... There are fees for the people who use it, obviously. That's how the companies—
3:55 p.m.
Conservative
Ed Holder Conservative London West, ON
You recover those royalties through the supplementary estimates (B).
3:55 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
Yes.
3:55 p.m.
Conservative
Ed Holder Conservative London West, ON
That's why I like them, because then I can see the flow. I didn't realize that this is the process you use.
I have another question, if I may.
Again, Mr. Enns, you made some comments at the opening that these supplementary estimates are worth just over $100 million, still under the cap, if you will, of the allowable amount of your authority.
One of the things you said, though, that I thought was interesting was about what you would do as it related to the Bombardier CSeries. It was that you needed some $25.7 million, but that what you would do as a result of capturing it in the supplementary estimates (B) is reduce the main estimates as a consequence.
Is that a typical practice? How exactly does that work?
3:55 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
It's not uncommon. The lingo on that would be a “reversed reprofile”, whereby money, instead of being reprofiled into a future year, is brought back from a future year into this year. Next year's main estimates that I mentioned will reflect a decrease in that program.
The issue there is it aligns the payment to Bombardier for the eligible costs they've incurred under that program. They've advanced the work, but the payment will be made when they need it, because the project is completed.
3:55 p.m.
Conservative
3:55 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
Yes.
3:55 p.m.
Conservative
3:55 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
Exactly, and for many of the programs we have, or the contribution agreements we negotiate, we try to align them to the timing of the investment cycle of the company or the organization we're assisting. Sometimes that involves reprofiling money. Most often it's into future years, but on occasion it's reprofiled in the reverse.
3:55 p.m.
Conservative
The Chair Conservative David Sweet
Thank you very much, Mr. Enns.
Thank you very much, Mr. Holder.
We'll now go to Madam Sgro.
December 4th, 2013 / 3:55 p.m.
Liberal
Judy Sgro Liberal York West, ON
Thank you very much, Mr. Chair.
To the witnesses, thank you very much for being here and helping us through these today.
The government talks about price parity with the car prices in the U.S., of course, which continue to be much lower. Can you tell me how much money is being spent to try to address that imbalance in the auto sector and other sectors?
4 p.m.
Associate Deputy Minister, Department of Industry
The government has recognized in the Speech from the Throne that there is an issue with respect to geographic price discrimination, but broadly speaking, and has included a commitment in the Speech from the Throne to take further action to address that.
With respect to the auto industry, we are working to understand better the dynamics in the auto industry. Auto pricing is complex, in part because prices are highly negotiable. This can be a function of the kinds of promotions on offer, the vehicle model and extras people want, etc., and whether they are paying cash or leasing at that time of year. I would note as well that Canada is an important producer of automobiles, so as noted before, we do support innovation in that sector.
With respect to the exact amount of funds we're spending on this, the government announced in the Speech from the Throne that it will look at taking action in this area. We're still working on what kinds of proposals we might put forward to do that, so I don't have an exact—
4 p.m.
Associate Deputy Minister, Department of Industry
We have an office at consumer affairs within the department that looks at general consumer issues. We also have an automotive branch that looks at the competitiveness of the automotive industry and the dynamics of that industry. We wouldn't break it down into one specific policy issue within our departmental budget.
4 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
We don't have an advertising budget, per se. The advertising envelope is managed by PCO.
4 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
No, I don't offhand know what the overall advertising budget is.
4 p.m.
Liberal
Judy Sgro Liberal York West, ON
I would appreciate it if you could let the committee know at a later date.
I have a further question on the issue of the youth employment strategy. What is the total budget? You reference here $3.5 million. The program has been there since 1993, so what has the total budget been on the youth strategy?
4 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
The youth employment strategy is an initiative under HRSDC, which is responsible for the overall framework. The items you see here in the supplementary estimates are only those Industry Canada portions, which are for those two initiatives in the supplementary estimates.
4 p.m.
Liberal
4 p.m.
Chief Financial Officer, Corporate Management Sector , Department of Industry
I'm not sure what the exact figures were in previous years. This is very much in line. We seek these moneys every year. They don't roll over. We have to come back every year in the mains or the supplementary estimates. This would be very much along the same line.
4 p.m.
Liberal
Judy Sgro Liberal York West, ON
I want to go back to the auto issue, which is an important issue for all of us. You reference on the $11.9 million that some of the funds go towards department costs for due diligence, site visits, audits, and other such administrative activities.
How much of that $11.9 million goes into that?
4 p.m.
Associate Deputy Minister, Department of Industry
I would just note that the $11.9 million is the first installment on a $250 million commitment by the federal government to extend the automotive innovation fund over a five-year period. It's really only this year's piece of what will be an initiative going over a five-year period. The $11.9 million is money that would go towards the Ford Oakville project announced in January by the Prime Minister.
4 p.m.
Liberal
Judy Sgro Liberal York West, ON
On the NSERC, what process do you use to determine which research and development projects should receive a grant under the college and community innovation program?