National Defence Committee on Nov. 27th, 2012

[Peter MacKay, Conservative, Central Nova, NS]

Sure. Thank you very much again, colleague.

Questions pertaining to search and rescue are top of mind for Canadians and for the department.

We made a very strong commitment, as you would know, in the Canada First defence strategy to replace our fixed-wing search and rescue aircraft. We've had tremendous service from the existing fleet of Buffalo aircraft on the west coast and some of the Hercules aircraft, which have now been replaced.

On October 17 Public Works and Government Services held an industry day at which it announced that there were specific requirements for future aircraft. That is based on a specific platform that will replace the capabilities of the Buffalo and other fixed-wing search and rescue aircraft currently in use. We've broadened, in fact, the specs to include the possibility of a mixed fleet.

These estimates provide $7.2 million for the definition phase of the fixed-wing search and rescue aircraft replacement project. That is now launched.

On the search and rescue new initiatives fund that you refer to, $1.3 million is to be transferred to a number of departments and agencies to support search and rescue across the country, including the prevention, the coordination efforts that go on, and initiatives run by other departments such as Fisheries and Oceans, the RCMP, Parks Canada, and Transport Canada. This is really a whole-of-government approach, as is the case in many of the initiatives.

Examples of some of the transfers, Chair, would be just over $780,000 to Environment Canada for satellite application, which is becoming increasingly useful—environmental predictions, of course, are an important part of the search effort—and $130,000 for Parks Canada to support outreach and awareness. Some of the funding will also be transferred to the RCMP to go toward supporting their partnership with something called SARVAC, which is the Search and Rescue Volunteer Association of Canada. I commend those volunteers, who are so very often the key enablers in search efforts across the country. It's a big partnership in a big country, but they have produced spectacular results when Canadians are in need.

[Chris Alexander, Conservative, Ajax—Pickering, ON]

Thank you, Chair.

Ms. Gallant will take the rest of my time.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Thank you, Mr. Chairman.

Through you to the minister, as the member of Parliament representing one of the busiest bases in Canada—CFB Petawawa, training ground of the warrior—I find any news on new equipment for the Canadian army is welcome and is a morale booster for our women and men in uniform. Can you speak to what National Defence is doing to keep the Canadian army supplied with the best possible equipment so that they can continue to do their great work?

[Peter MacKay, Conservative, Central Nova, NS]

Thank you very much, Ms. Gallant. I know that you are an ardent supporter of the Canadian Forces, and in particular I know you go out of your way to spend time with our troops, particularly down in Petawawa, where you have a base.

[Jack Harris, NDP, St. John's East, NL]

On a point of order, Mr. Chairman. I know this is not supposed to be a PR exercise for the minister or the member. We all support the work that our troops do and we want to see them supplied properly. We were told by the members opposite that this was about supplementary estimates (B). I didn't hear any reference to that in the question or in the answer.

[The Chair, Conservative, James Bezan]

Ms. Gallant, if you want to rephrase the question, or Minister, if you want to carry on, it's your—

[Peter MacKay, Conservative, Central Nova, NS]

Well, there is a contract that I think Ms. Gallant is referring to that specifically deals with the replacement of tactical armoured patrol vehicles, many of which will be based at CFB Petawawa, which is in the member's riding.

This is a tactical patrol vehicle that will be used for reconnaissance and surveillance. It's an important part of the overall Canadian Forces army capability.

We saw the utility and the importance of having protective equipment in theatre in Afghanistan. The insidious nature of warfare these days is becoming increasingly challenging, and that's why there are investments in tactical armoured patrol vehicles with up-armour. These vehicles are being purchased to address some of the deficiencies that were identified in older equipment and provide more protection, more ability to move in a quick and efficient fashion, and also to be, quite frankly, more comfortable for the soldiers who are using them. They provide greater human dimensions, if you will.

National defence and public works are seeking funding in the amount of $59.5 million for this project, which is contained in the supplementary estimates (B). The first TAPVs, as they are known, Mr. Chair, are currently expected to come into use in the year 2014. Again, I thank the member for her question.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Minister, recently you announced an allocation of over $11 million to go towards mental health of the Canadian armed forces. Would you please advise us as to how this will be spent?

[Peter MacKay, Conservative, Central Nova, NS]

Thank you again for that very important question.

We are working very closely with mental health associations across the country. In fact I was in Kingston yesterday to meet with many of the partners, including some at the university level, who are doing research into the area of post-traumatic stress. We are also doing a great deal of outreach to improve awareness of the programs that are available to deal specifically with the subject of operational stress.

In answer to your question, this $11.4 million, which was identified within our existing budget funding lines, will be dedicated specifically to hiring more mental health professionals—psychologists, psychiatrists, and counsellors—on the front line dealing specifically with the very serious mental illness that can result from operational service and particularly from the stress associated with combat. These are very real injuries. These injuries are just as debilitating as physical injuries.

I know you are familiar with this subject. I believe you also recently attended some of these efforts at CFB Petawawa to identify how we can improve direct front-line services.

This is about getting more people into the field. We committed in 2006 to doubling the number of mental health professionals within the employment of the Canadian Forces. We're at approximately 380 now. That's up from the 220 there were when we took office. We're committed to ensuring that we have those professionals available to our Canadian Forces members, regular and reserve, no matter where they are, so they can get the help they need.

As you would know, we've also taken steps internally with the “Be the Difference” campaign. General Natynczyk and our new Chief of the Defence Staff, Tom Lawson, are very much to be credited for improving the way in which we take away the stigma and talk more openly about mental health issues.

Soldiers—by nature, by training, by discipline—are sometimes reticent to come forward and ask for help. They are some of the toughest people we have in our country, but sometimes they do need that help, and that's what we're here to do by providing more counselling and more professional people to work with.

[The Chair, Conservative, James Bezan]

Thank you. The time has expired.

Mr. McKay, you have the floor.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Thank you, Chair.

Thank you, Minister.

Minister, I would direct your attention to page 9 of the supplementary estimates, particularly with respect to the Manuge decision. You spent a lot of time and money fighting that decision, and finally it was resolved. It says you're in fact asking for $205 million.

What I wanted to ask you about is, “The payment will reimburse Manulife for increasing payments over the remaining duration of recipient’s claims.” What does “increasing payments” mean? Is it greater than what was originally anticipated, or are the payments being increased? Could you explain what that sentence means?

[Peter MacKay, Conservative, Central Nova, NS]

Sure. Thank you for the question.

Mr. Chair, colleagues, on June 15, 2012, there was a promissory note signed by the Chief of Military Personnel to pay Manulife Financial $203.7 million within 12 months of its issuance, plus interest—so there's an interest provision of 3.7%—up to a maximum of $211.5 million.

In August of this year, Manulife Financial received payments in the first installment totalling $205.6 million, which resulted in a savings of $5.9 million in the area of interest. There is an interest provision here that might account for the member's question with regard to that amount.

There was also a lump sum amount reimbursed to Manulife Financial for augmenting the insurer's reserve to increase the monthly income paid to current long-term disability recipients over the duration of the claim.

There is an element here that is also currently being negotiated with the lawyers for the plaintiffs. That is an ongoing negotiation, and I really can't say much more about it.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Can I assume there was an original payment.—

[Peter MacKay, Conservative, Central Nova, NS]

That's correct.

[John McKay, Liberal, Scarborough—Guildwood, ON]

—and then there was a, for want of a better term, premature payment from which you received some interest—

[Peter MacKay, Conservative, Central Nova, NS]

That's right.

[John McKay, Liberal, Scarborough—Guildwood, ON]

—and then you have potentially an outstanding payment once the negotiations are completed with respect to the retroactive claim.

[Peter MacKay, Conservative, Central Nova, NS]

That is correct, Mr. McKay. There will be a schedule of payments to—

[John McKay, Liberal, Scarborough—Guildwood, ON]

How much was the original payment?

[Peter MacKay, Conservative, Central Nova, NS]

The very first installment was $203.7 million.

[John McKay, Liberal, Scarborough—Guildwood, ON]

So we have $203 million into it, we have another $205 million into it, and another we-don't-know-what will go into it.

[Peter MacKay, Conservative, Central Nova, NS]

That is correct. It will be a substantial amount, and there is the issue, as I said, of outstanding legal costs.

[John McKay, Liberal, Scarborough—Guildwood, ON]

What part of the budget does that come from? On page 154, there are total commitments and authorizations for roughly $30.5 billion, of which you say that $11.6 billion is for payment of future years.

First of all, can you explain what the $11.6 billion for future years might be? Secondarily, does that money for Manuge rest in this $11.6 billion?

[Peter MacKay, Conservative, Central Nova, NS]

Mr. McKay, I think you're talking about two different issues.

I'll let Major-General Bertrand respond with respect to vote 1 funding for the Manuge settlement case.

[MGen Robert Bertrand]

With respect to the first question on vote 1, you're talking about ongoing commitments. The department does multi-year commitments, especially for programming and contracting. The funding for SISIP will be provided from the fiscal framework. It will be additional funding provided for the department when the class action lawsuit is settled. It would not be reflected in these supplementary estimates at this time.