Mr. Speaker, with regard to part (a), ESDC activities relating to the temporary foreign worker, TFW, program are funded not through fee revenues, but through voted appropriations, for which the government must seek Parliament’s approval annually through an appropriation act.
Labour market impact assessment, LMIA, fee collections constitute non-respendable revenues, which are returned to the government’s consolidated revenue fund. The LMIA fee is intended to help recoup costs associated with the administration of the TFW program. This includes activities related to processing of LMIA applications, as well as program compliance-related costs intended to ensure employers are abiding by program rules and temporary foreign workers are protected while in Canada.
There are fee exemptions set out for certain LMIA applications, most notably, those made under the program’s primary agriculture stream. Positions in primary agriculture are exempt, given the industry’s long-standing domestic labour supply challenges and the potential downstream effects on national food security. As a result, the LMIA fee, which is exempt from the Services Fee Act, helps the TFW program operate on a partial cost-recovery basis.
With regard to part (b), as per ESDC’s 2023-24 departmental plan, specifically its consolidated future-oriented statement of operations, unaudited, for the year ending March 31, 2024, the total amount of fees projected to be collected is $129,288,000 for 2022-23 and $133,338,000 for 2023-24.
Revenue forecasts may not ultimately align with actuals. Program revenues are dependent on program volumes, i.e., LMIA applications, which are dependent on labour market trends, i.e., employer demand for temporary foreign workers. Historical indicators are leveraged in forecasting program volumes/revenues. However, given the evolving nature of the labour market and the difficulty in forecasting labour market shocks, i.e., COVID-19, actuals may differ from forecasts.
With regard to part (c), LMIA fee collections constitute non-respendable revenues, meaning that the TFW program does not have the authority to spend fee collections. Fee revenues are deposited directly into the government’s consolidated revenue fund.
With regard to part (d), the LMIA fee only serves to recoup costs associated with the TFW program, including activities related to processing of LMIA applications and program compliance-related costs, e.g., employer inspections. Costs unrelated to the administration of the TFW program are not recouped via the LMIA fee.