Mr. Speaker, trusts are financial vehicles used by the Government of Canada to transfer funds to provinces and territories in order to meet urgent, short-term pressures in areas of shared national priority. The trust mechanism gives provincial and territorial governments the flexibility to withdraw funding in support of the identified objectives, according to their respective needs and priorities, over the lifespan of each trust.
In response to (i) and( ii), trusts established pursuant to Bill C-48, five trusts were established pursuant to Bill C-48, An act to authorize the Minister of Finance to make certain payments, which received Royal Assent in July 2005. These trusts were highlighted in the budget presented to the House of Commons on May 2, 2006:
$1 billion for the post-secondary education infrastructure trust, to support investments to promote innovation and accessibility, including investments in university and college infrastructure and equipment. The funding is notionally allocated over two years on an equal per capita basis among provinces and territories;
$900 million for the public transit capital trust, in support of capital investments in public transit infrastructure both as a means to reduce traffic congestion and to reduce carbon dioxide and other emissions. The funding is notionally allocated over three years on an equal per capita basis among provinces and territories;
$800 million for the affordable housing trust to help address short-term pressures with regard to the supply of affordable housing. The funding is notionally allocated over three years on an equal per capita basis among provinces and territories;
$300 million for the off-reserve aboriginal housing trust to help provinces address short-term housing needs for aboriginal Canadians living off-reserve. The funding is notionally allocated over three years among provinces based on the provincial share of the aboriginal population living off-reserve; and
$300 million for the northern housing trust to help meet short-term pressures with regard to the supply of affordable housing in the North. The funding is notionally allocated over three years among the three territories as follows: $50 million each for the Yukon, the Northwest Territories and Nunavut, plus an additional $150 million for urgent needs in Nunavut.
Payments to the trusts were made on September 27, 2006, after the Government was able to confirm that sufficient funds were available from surpluses in the two fiscal years 2005-06 and 2006-07.
In response to (iii), Projects receiving funding, allocation, and amounts involved, operating principles were established for each trust. Once the funds have been transferred to the trustee, the trustee, and subsequently the provinces and territories, are accountable for the distribution and use of those funds.