Mr. Speaker, in response to (a), budget 2010 announced two significant actions to reduce growth in the operating expenditures.
First, federal organizations are expected to absorb all salary increases beginning in 2010-11 until the end of 2012-13.
Aboriginal Affairs and Northern Development Canada, AANDC, is successfully absorbing salary increases negotiated in collective agreements and additional personnel costs. The absorption of costs is done through robust monitoring of staffing processes and minimal transfer of operating dollars to cover some salary costs.
Second, operating budgets will be frozen at 2010-11 levels for the following two fiscal years, 2011-12 and 2012-13. It should be noted the freeze applies to operating budgets only. Operating budgets include departmental personnel costs, such as wages and salaries, as well as a range of other operating costs, including professional services contracts, transportation, communications, leases, utilities, materials and supplies.
Certain adjustments have been made to operating budgets to allow for increases, for example, i, economic action plan spending; ii, the budget 2010 measures not included in the main estimates 2010-11; iii, any new policy initiatives approved by cabinet; iv, non-discretionary labour costs, such as parental benefits or severance pay.
The 2010-11 Main estimates did increase for the department due primarily to points i, ii and iii above.
AANDC is vigilant in managing its operating budget. Senior management continues to review and monitor spending levels on a monthly basis. The department continues to operate within its travel, hospitality and conferences cap announced in budget 2009 and encourages the use of tele and video conferencing to generate savings in travel. AANDC continues to see a downward trend in public servant travel, hospitality and conferences. Reducing certain types of expenditures is allowing the increased salary costs to be covered.
When required to do so, senior management continues to manage adjustments in operations and reallocates resources where needed.
For 2011-12 and 2012-13, AANDC will continue providing programs and services as planned while prudently and efficiently managing within its available resources.
In response to (b), during fiscal year 2010-11, April 1, 2010 to March 31, 2011, a total of 436 employees were lost to attrition. This includes 427 full-time and 9 part-time employees.
In response to (c), during fiscal year 2010-11, April 1, 2010 to March 31, 2011, a total of 16 full-time employees were laid off.
In response to (d), during fiscal year 2010-11, April 1, 2010 to March 31, 2011, a total of 442 employees were hired. This includes 438 full-time and 4 part-time employees.
In response to (e), the department does not have a system in place to project attrition rates. However the average attrition rate over the last three fiscal years is 10.21% (12.55% in FY 2008-09, 9.36% FY 2009-10, 8.72% FY 2010-11). Therefore, we can expect that the attrition rate will continue to trend downwards, but not significantly. AANDC estimates that over the next five years, 991 employees will come eligible for retirement. Among workers hired under the Public Service Employment Act, approximately 56% do retire within one year of becoming eligible or choose to retire before eligibility.
Attrition rates include departure rates of indeterminate employees, for example, retirement, transfers out, termination, resignation, discharge, death, lay off.