Public Accounts Committee on Nov. 18th, 2022

[Kelly McCauley, Conservative, Edmonton West, AB]

I'm just having some microphone problems.

Thanks, witnesses.

I want to get to the carbon tax or the incentive payments. For the backstop provinces, what is the actual dollar in and out [Technical difficulty—Editor] perhaps how we're accounting for it, because it's being paid quarterly now. How much of the carbon tax for the backstop provinces was used for federal programming, as opposed to being rebated directly as refunds to taxpayers?

[The Chair, Conservative, John Williamson]

Is that to Finance or the comptroller?

[Kelly McCauley, Conservative, Edmonton West, AB]

I'm sorry. Again, I'm having problems with my mike.

[The Chair, Conservative, John Williamson]

Mr. McCauley—

[Kelly McCauley, Conservative, Edmonton West, AB]

Does Finance have an answer?

[Nicholas Leswick]

Sorry for the pause there, Mr. McCauley. I appreciate the question.

I'm sorry—I don't mean to cut into your time—but your question was...?

[The Chair, Conservative, John Williamson]

I think it's on page 41. He's asking you about the kind of discrepancy....

[Kelly McCauley, Conservative, Edmonton West, AB]

Yes. Last year it was on page 17 of volume 1. There was a very clear note. I think it was $98 million that was used for other federal programming. There was no such clear notification in this year's volume 1 of the public accounts.

With regard to the backstop provinces, how much of the carbon tax collected, or however you wish to term that money, went to federal program spending as opposed to direct rebates to taxpayers?

[Nicholas Leswick]

That's a very direct question. I'll have to get back in writing, because I don't have the answer at my fingertips. I understand the question.

[The Chair, Conservative, John Williamson]

Thank you.

[Kelly McCauley, Conservative, Edmonton West, AB]

AG Hogan, do we know why we have not separated it out in the public accounts as we did last year?

[Karen Hogan]

Again, that's a question best asked to the comptroller general's office. My guess would be that it was not a very material amount, but I would have to encourage you to ask them.

[Kelly McCauley, Conservative, Edmonton West, AB]

Would you answer that for me, please, then?

[Roch Huppé]

I think that was in the FSDNA last year, if I'm not mistaken.

[Kelly McCauley, Conservative, Edmonton West, AB]

That was volume 1, and it was page 17 or 18.

It was very specific, noting where $98 million of...which, in the grand scheme of things and a trillion-dollar debt is not big, but $98 million is a substantial amount of money. It stated very clearly that the backstop money went to federal programming as opposed to a direct rebate. This year there's no mention of that, so I'm curious how much went—

[Nicholas Leswick]

Again, I appreciate your question—

[Kelly McCauley, Conservative, Edmonton West, AB]

I'm sorry, and why it was not broken out in these public accounts.

I'll just move on. You can maybe get back to us on that.

How much were the Bank of Canada losses last year? We've seen the fall economic statement. I think it's about $5 billion to $6 billion this year. What was it last year, and do we have a forecast of what it will be for this year?

[Nicholas Leswick]

I don't believe there were any losses last year, but for this year we're estimating around $1 billion in losses.

[Kelly McCauley, Conservative, Edmonton West, AB]

Is it just $1 billion? Would you be able to get back to us with a more precise number? I understood it to be higher.

[Nicholas Leswick]

Absolutely. We'll get back to you.

The number you're perhaps thinking of is something accumulated over a longer time horizon, but just for this year, the 2022-23 year ending March 31, 2023, it is around $1 billion.

[Kelly McCauley, Conservative, Edmonton West, AB]

There's a line—and I'm afraid I don't have the page for you—about government allowance for doubtful accounts of $21.5 billion, up from $18.9 billion last year, including bad debt provisions of $5.4 billion for GST, up from $3.8 billion last year.

Are you able to let us know what is driving such an increase?

I apologize; I don't have the page number for you.

[Roch Huppé]

Generally speaking, we've seen an increase in the receivable also, tax receivables, for example. The allowances would most likely also increase by that same token.

We're trying to find the exact reference to the $21 billion, Mr. Chair, and we can certainly come back with a detailed variance analysis from the $18 billion last year.

[Kelly McCauley, Conservative, Edmonton West, AB]

Yes, because it does give a breakdown of individual employer corporations, but this jump really—

[The Chair, Conservative, John Williamson]

Thank you, Mr. McCauley. The comptroller will get back to us on that. The time has lapsed.

I'll just draw your attention as well, Comptroller, to page 16 for 2022. It says the government “recorded net losses totalling $1 billion”, and then in brackets it says, “$19 billion in 2021 in respect of the Bank's purchases of Government of Canada bonds”. Maybe an explanation on that next time will be helpful as well. Thank you.

Turning now to Ms. Bradford, you have the floor for five minutes, please.

[Valerie Bradford, Liberal, Kitchener South—Hespeler, ON]

Thank you so much, Mr. Chair, and thank you to all our witnesses. I'm sorry I'm not there in person. It's a pretty impressive lineup there. Thank you for your very important work and for reporting so diligently to this committee.

For my first question, I'll address Ms. Dancey, since she hasn't had a question yet. If it's not her, someone else can step in.

How do the enterprise Crown corporations rebound from a deficit of $10.5 billion in 2021 to exceeding 2022 budget expectations to go to $12.8 billion?