Mr. Speaker, programs under the new veterans charter were implemented with the objective of changing the focus of Veterans Affairs Canada programming from disability to wellness for Canadian Forces clients and their families. The new design provides an up-front, lump sum payment to recognize the non-economic impacts of service-related disability, as well as ongoing support through rehabilitation and financial benefits to those who need it. This means that those with the greatest need receive the greatest support from Veterans Affairs Canada to aid in their successful transition to civilian life, where possible. Savings are possible in the longer term if the wellness programs of the new veterans charter work as planned to support modern-day Veterans through the transition to civilian life, thereby reducing dependence on pension payments to provide adequate, ongoing income support, a purpose that disability pensions were never intended to have. The object of the new veterans charter is not reducing cost but rather getting better value for money.
To cover additional front-end costs, government injected $740 million into Veterans Affairs reference levels to cover the first five years of the implementation of the new veterans charter programs. Over time, as the effectiveness of the rehabilitation programming is realized, financial savings are possible, but savings are not a goal of the new veterans charter. This new programming strikes a balance between being financially responsible and accountable to Canadian taxpayers while still providing required benefits and services to meet the needs of our clients. At the time of its development in 2005 and implementation in 2006, the new veterans charter was projected to breakeven by 2025. However, it should be noted that the projection is impacted by the nature of military operations between the date of the forecast and 2025.