Mr. Speaker, I welcome the opportunity to speak to members of the House today on the subject of full supply of the estimates for fiscal year 1996-97. This year the main estimates total $157 billion, a reduction of $7.2 billion compared to the 1995-96 main estimates.
Of the $157 billion, $111.7 billion or 71 per cent represents statutory payments authorized by Parliament in previous years. The government is seeking approval to spend the remaining $45.3 billion for programs that rely on annual appropriations.
To improve the information available to parliamentarians on the main estimates and their relationships to the budget, this year the government introduced a new document entitled "Program Expenditure Detail: A Profile of Departmental Spending". This new document, while not formally constituting part of the estimates, combines federal program spending details previously presented in both part I of the estimates and the budget. Presenting spending information on a basis consistent with the expenditure plan contained in the budget provides parliamentarians with a bridge between the budget document and other estimate documents.
The government has maintained its resolve to reduce program spending. In 1996-97 program spending including public debt charges is $109 billion or $5.4 billion less than the 1995-96 main estimates. This is an important achievement. It demonstrates that the government's program review continues to have a significant impact on the level of program expenditure requirements.
If we examine the composition of spending, it is evident that most sectors of government show a decrease in planned program spending compared to the 1995-96 levels. In the estimates we categorize program spending in 10 sectors. Expenditures on social programs represent the largest component of program spending at 46 per cent.
Social sector major transfers to persons which include veterans pensions and allowances, unemployment insurance and elderly benefits constitute 34 per cent of this amount. The remaining 12 per cent is allocated to social programs directed primarily at employment, health and housing initiatives, programs that benefit aboriginal peoples, and immigration and citizenship programs.
Direct program expenditures for 1996-97 in the social sector are $13.2 billion or 2.4 per cent less than in 1995-96. Reductions in direct program expenditures in the social area have been facilitated by clarification of core mandates of the social program departments, a key element of the program review process.
I will provide the House with a few examples of adjustments departments in the social sector are making to serve Canadians better with declining resources.
Health Canada is achieving spending reductions by maximizing efficiencies, refocusing its programs and implementing cost recovery initiatives, more specifically to shift the burden of paying for some services away from the general taxpayer to industry clients that benefit most directly from them. These were introduced for some health protection services.
In addition, efficiency measures are being undertaken by consolidating food inspection services in Health Canada with those of the Department of Agriculture and the Department of Fisheries and Oceans into a single food agency.
Another department in the social sector implementing innovative approaches while reducing program spending is Human Resource Development Canada. HRDC's program spending will decrease by $419 million in 1996-97. Yet HRDC will continue to develop further its services orientation with an increased emphasis on responding to the needs of specific communities and on management by results.
To illustrate this, over the next years a new service delivery network will combine offices, kiosks, electronic online services and community partnerships to integrate the department's services and improve access for our clients. Programs and services will reflect local priorities and offer more points of service through the application of new technologies.
The heritage and cultural program sector is important to all of us. It supports the growth and development of Canadian culture and life, the nation's linguistic duality, its diverse multicultural heritage, and the preservation of parks and historic sites. Expenditures in this sector amount to $2.5 billion in 1996-97 or approximately 5 per cent of the total direct program spending.
The main estimates in this sector have also decreased. For example, planned spending for the Department of Canadian Heritage in 1996-97 will decline by 4.4 per cent relative to the 1995-96 level.
Many are aware of the significant changes which are occurring in the natural resource based program sector. This sector, which accounts for 5 per cent of direct program spending, supports sustainable development to maximize economic benefits while protecting and enhancing the quality of our environment.
For example, in agricultural programs we are moving in partnership with the provinces from commodity based agricultural subsidies to a whole farm safety net focusing on income stabilization rather than income support.
Costs are also being reduced in the natural resource based programs by addressing overlap and duplication. Consolidation of activities, such as the merging of the Canadian coast guard fleet with that of the Department of Fisheries and Oceans delivers services more efficiently to clients.
In the industrial, regional and scientific technological sector program orientation has been altered significantly. Our objective in this sector is to foster economic growth and job creation through measures that stimulate private sector investment across Canada, encourage regional development and promote and a stronger science and technology capability in Canada. Program expenditures of $3.6 billion will shift from direct business subsidies to more active business support measures. The focus of federal regional agencies will be on community based economic development and improving access by small and medium sized enterprises to commercial financing. Any remaining direct contribution programs will be fully repayable.
As a result of the major restructuring initiatives which are under way in the transportation sector, transportation programs will spend $400 million less in 1996-97 than in 1995-96. Program expenditures of $1.9 billion will be redirected from operating and subsidizing specific elements of the transportation infrastructure to focusing on policy development and ensuring standards for safety and security. Furthermore, commercialization of many services is being implemented to increase effectiveness in the transportation sector and to enhance responsiveness to local needs.
The general government services sector includes departments and agencies which provide central services in support of operations of government. It also includes, under the department of finance, transfer payments to the provinces and territories which are paid pursuant to the federal-provincial transfer payment program.
Although transfer payments are not part of the direct program expenditures which have been the focus of my remarks, these transfer payments to other levels of government like social sector transfer payments to persons described earlier, are part of the total program spending.
Major transfers to all levels of government include the Canada health and social transfers, transfers to territorial governments, fiscal equalization payments and other major transfers such as statutory subsidies and grants in lieu of taxes to municipalities. In 1996-97, major transfers to other levels of government will total approximately $29.1 billion.
To return to direct program expenditures, the government services sector has rethought how it delivers services in order to increase efficiency and cost effectiveness. For example, the Department of Public Works and Government Services contains three special operation agencies: the Canada Communication Group, Consulting and Audit Canada and the Translation Bureau, which are financed on a revenue dependent basis. The net spending of the Department of Public Works and Government Services will decrease by $98 million in 1996-97 as the department continues to explore ways to streamline operations and reduce costs.
I would like to conclude my remarks in support of a full supply by noting that the government will continue to use innovative approaches, new technologies and organizational reforms because of the positive results it is achieving in all sectors. The government is improving efficiency, reducing costs and making programs more responsive to the needs of Canadians.
I trust that members will support our request for full supply in the 1996-97 main estimates. We are on the right track of fiscal responsibility combined with a better program and service delivery for Canadians.