Evidence of meeting #68 for Veterans Affairs in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was benefit.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

General  Retired) Walter Natynczyk (Deputy Minister, Department of Veterans Affairs
Michel Doiron  Assistant Deputy Minister, Service Delivery, Department of Veterans Affairs
Rear-Admiral  Retired) Elizabeth Stuart (Assistant Deputy Minister, Chief Financial Officer and Corporate Services, Department of Veterans Affairs
Bernard Butler  Assistant Deputy Minister, Strategic Policy and Commemoration, Department of Veterans Affairs

8:50 a.m.

Liberal

The Chair Liberal Neil Ellis

Good morning, everybody. I'd like to call the meeting to order.

Pursuant to Standing Order 81(5), the committee commences consideration of the supplementary estimates (B), 2017-18, votes 1b and 5b under the Department of Veterans Affairs, referred to the committee on Tuesday, October 26, 2017.

I'd like to welcome the honourable Minister of Veterans Affairs and Walter Natynczyk, deputy minister of the Department of Veterans Affairs.

We'll start with a 10-minute round of testimony and then we'll get into questions.

Welcome, Minister. Thanks for coming today.

8:50 a.m.

St. John's South—Mount Pearl Newfoundland & Labrador

Liberal

Seamus O'Regan LiberalMinister of Veterans Affairs

Thank you, sir.

8:50 a.m.

Liberal

The Chair Liberal Neil Ellis

Deputy Minister Natynczyk, welcome.

8:50 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

Is that the cue for opening remarks?

8:50 a.m.

Liberal

The Chair Liberal Neil Ellis

Yes, go.

November 30th, 2017 / 8:50 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

Mr. Chairman, fellow members of Parliament, good morning and thank you for the opportunity to appear before the Standing Committee on Veterans Affairs for the first time. I appreciate the good work that members do on behalf of Canadian veterans and their families. I want to thank you for the hard work that went into your most recent reports, “Reaching out: Improving Service Delivery to Canadian Veterans” and “Mental Health of Canadian Veterans: a Family Purpose”. The former already precipitated a great deal of change since it was tabled a year ago and the latter is very near to my heart as a long-term advocate for mental health awareness.

We have been taking action on your recommendations to ensure the programs that we deliver are efficient, valued, and meet the needs of our veterans. As I'm sure you're aware, our own internal report, “Delivering Service Excellence”, released earlier this year, complemented many of the recommendations that you made. We are committed to improving our current system. We have a plan in place to address the recommendations. We are hard at work implementing them. We are overhauling how we deliver services. While it will take five years to successfully complete the transition, 90% of the recommendations will be completed within three years. A few of the things that will take longer rely on other government departments or policy changes that are outside our authority.

Those changes are key improvements to the many systems, services, support measures, benefits and programs that veterans need to successfully transition to civilian life. I am proud to take office during this pivotal time in order to help implement them.

I talk many times about my own connection to the Canadian Armed Forces: the fact that I grew up at CFB Goose Bay, and that my brother Danny is a lieutenant commander in the Royal Canadian Navy. Actually, growing up at CFB Goose Bay—I don't know if I've ever told you, Mr. Chair—I was taught at a very early age that Trenton was nirvana. All the CAF forces at CFB Goose Bay couldn't wait to get back to Trenton. I said, “Someday I have to visit it.”

In discussions with my brother, he made me aware of some of the challenges even before I came into this role. It was quite fitting and an honour and a privilege to be named Minister of Veterans Affairs and the Associate Minister of National Defence, and to work alongside members of the Canadian Armed Forces, the RCMP, veterans, and their families. This has given me the opportunity to take on these essential tasks of improving service delivery, closing the seam between the Canadian Armed Forces and Veterans Affairs Canada, and ensuring financial security for the most seriously ill and injured veterans.

We are here today to talk about what my department is doing, how the supplementary estimates reflect our approach to veterans' well-being, our accomplishments, and the work that remains to be done. Specifically, Veterans Affairs will receive an additional $26.1 million in these supplementary estimates, a 0.6% increase to $4.7 billion.

Before I speak to where we increased our estimates for new programs, it's important to point out that 90% of that budget figure represents payments directly to veterans and their families. For many veterans, this means the pain and suffering disability award in recognition of her or his injury. More than that, though, it goes to the earnings loss benefit of 90% of their pre-release salary, paid out during vocational rehabilitation. It also goes to the vocational rehabilitation that works with the veteran through the injury, which might be a barrier to finding her or his new normal.

If that veteran cannot re-establish after rehabilitation, it provides through the extended earnings loss benefit of 90% of pre-release salary paid out until the age of 65. It also goes to the career impact allowance if the veteran has a severe and permanent impairment, and to the career impact allowance supplement if that impairment results in a diminished earning capacity.

When a veteran turns 65, it goes to the retirement income security benefit or the supplementary retirement benefit.

Ultimately, all veterans who come to one of our many area offices can now be assured that most of our funding is used to recognize their pain and suffering and to set up and maintain wellness programs that provide a safety net during their recovery.

Let me say this again because it's an important point. Ultimately, for any veteran who comes to the door of one of our many area offices today, they can rest assured that the majority of our funding is going towards recognizing their pain and suffering, and establishing and maintaining the well-being programs that provide a safety net while they are mending.

But we still have work to do. We are enhancing the financial security and wellness elements of the new Veterans Charter to help veterans and their families transition to civilian life and make choices about what they want to do next, whether it be work, education, or other activities.

These supplementary estimates (B) primarily include funding for several budget 2017 initiatives. This funding and our overall guiding focus is about improving the lives of Canadian veterans, whether it be through enhanced education and employment services, the new caregiver recognition benefit that will provide $1,000 a month tax-free to the informal caregiver, or other critical programs we introduced in budget 2017, which will be implemented on April 1, 2018.

Of course, some of the funding went to the Invictus Games Toronto 2017, where veterans and active military members alike embraced the power of sport as they pushed through barriers and proudly represented our country. While it was an incredible event for the millions of spectators, I know there are many veterans who need more support from us, and that's why we're here today.

We are on the right track to improving our support for veterans. For example, of the 67,000 individuals who received the disability award increase reflected in these estimates, which put approximately $700 million in the pockets of our veterans, around 37,000 received their amended payment immediately, as a result of our move towards a fully automated system.

Having already done so much in reinforcing the benefits that make up our wellness model and bolstering the successes of the new Veterans Charter, we will announce more details on our monthly pension option for veterans shortly. We know this is an eagerly awaited announcement. We are committed to giving veterans and their families the best options to ensure their financial security and getting them the best possible support in their post-military lives.

We are all here to serve Canada's veterans. At the end of the day, those who need our assistance now or in the future need to know that we are here to assist them, and that we will continue to expand and adapt to the needs of our growing and diverse veterans community, especially with the help of this committee.

Thank you for your time.

8:55 a.m.

Liberal

The Chair Liberal Neil Ellis

Thank you, Minister.

We'll start the six-minute rounds with Mr. McColeman.

8:55 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Thank you for being here today, Minister. We appreciate it.

I want to go right to the issue you mentioned near the end of your comments, and that's the lifelong pension. As you know, there were promises made to veterans. Time is running out.

I have been meeting with veterans as recently as this week in Vancouver and Edmonton. Some are suggesting to me that politics might be anticipated here and playing into the by-election in South Surrey with the Prime Minister.

When is the announcement if there is going to be an announcement? You said it's coming shortly. We've been told time and time again in answer to our questions in the House of Commons that it's going to be before the end of the year. December is fast approaching—tomorrow. When will this announcement be, before the end of the year?

8:55 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

By the end of the year.

8:55 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

By the end of the year.

8:55 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

By the end of the year.

I don't think I'm disclosing too much to say we literally just came from another meeting on exactly this issue. This is a commitment we've made to veterans. This is a commitment we've made to Canadians.

I'm not going to make excuses by saying I'm a new minister but obviously, I came in as a fresh set of eyes and the learning curve was extremely steep. There were things I wanted to do as well on this.

I will take advantage of this opportunity in public to commend our officials who have been working, as you would expect, weekends and late into the night, because we want to have that option ready.

You are absolutely right, sir, that December is fast approaching. I've just recommitted here again in front of this committee that it will be by the end of this year.

8:55 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Okay. I wanted to revisit the politics around this because the view of many of us around the table is that this should be one of the most non-partisan, non-political issues that parliamentarians deal with in terms of veterans' lives.

Are you saying, sir, that this will not be announced in the South Surrey by-election, as a lever by the Prime Minister to win that election?

8:55 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

I can honestly tell you that it has not even crossed my mind.

8:55 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Okay. Are you saying the Prime Minister will not announce this in the by-election in South Surrey?

8:55 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

No.

8:55 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Okay. Thank you.

8:55 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

No, it honestly has not even crossed my mind. You are absolutely right that this is not a partisan issue. I wouldn't even think of using it as a partisan issue.

This is singularly an issue of blood, sweat, and tears to make sure that we meet our commitments. This is singularly about my team in my office, Walt, who is the deputy minister here, and his officials, literally working night and day to meet that commitment.

9 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Okay.

We see no appropriations in the supplementary estimates for lifetime pensions. There are many questions the veterans brought to me in these past few days about what this might look like. Can you share any details? Will this be tax-free money? Will it be stackable with the other pensions? Will the people who receive the new lifelong pension be subject to clawbacks? Can you give us any of these specifics that they're asking about when this comes up for discussion?

9 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

No, I can't. Not to be impolite, but I'll be direct: it has to appear before cabinet first. I have to get cabinet's approval on that.

9 a.m.

Conservative

Phil McColeman Conservative Brantford—Brant, ON

Okay.

Chair, I'm going to yield the rest of my time to my colleague Cathay.

9 a.m.

Liberal

The Chair Liberal Neil Ellis

Cathay, you have two and a half minutes, .

9 a.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Thank you.

Thank you very much for being here today.

I'll just reiterate that it's really important to all of us around this table that we meet the needs of our veterans.

It has been a real privilege for me to be able to serve in this role. I have no military background whatsoever, so I come at this as your typical Canadian. Having travelled this summer and having had many conversations with our veterans, there's no question that there are a lot of issues. A lot of them relate more to frustration in understanding what's coming their way and receiving it in a timely and kind manner.

Minister, on the whole issue around the pension, I'm sure you hear it over and over again, that a promise was made to Equitas that it would not be taken back to court, and that has happened. There's a lot of concern there as well on what that promise was versus what might actually be announced.

I know there's a lot of concern about that pension being not just an option, but the number one go-to, with other things being the option. Can you re-emphasize to me what you mean when you say the “option” of a lifetime pension?

9 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

First of all, Cathay, let me reinforce the importance of the voice of, as you put it, the average Canadian. With great humility, I talked about growing up on a base and having a brother in the armed forces. Those are important points of view. It is not the same as having served. I wouldn't pretend otherwise. I know what I know, and I know what I don't know, and I'm more than willing to look to people such as the person sitting next to me, to those who have served, and listen especially, as I have done in my travels in my short time as minister. However, it's also very important that Canadians weigh in on this, because this is a priority for Canadians themselves.

9 a.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Yes, very much.

9 a.m.

Liberal

Seamus O'Regan Liberal St. John's South—Mount Pearl, NL

They want to know that their veterans are being treated fairly.

The new Veterans Charter, which all parties in the House arrived at realizing that the old system did not work was meant to be a living document. We were meant to amend it. We were meant to look at it. We were meant to listen to veterans. We were meant to meet their needs.

The word “option” is being delivered, but I understand the financial security that comes from knowing what amount you're getting every month, and that certainly appeals to many veterans. Some will prefer a lump sum payment, and that sometimes depends on the time in their life. Later in life, a lump sum might make more sense to them, but for many, receiving a monthly amount is very important to their financial security.