Debates of June 12th, 2025

Main Estimates and Supplementary Estimates (A), 2025-26

[The Chair, Conservative, Tom Kmiec]

The hon. member.

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, why did it take until almost three years later for the government to end its relationship with GC Strategies?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, again, I would say that the case is under investigation, and it would not be appropriate for me to comment on that.

[The Chair, Conservative, Tom Kmiec]

I want to freeze the time for a moment. It is much easier for the Chair to recognize members when only one member is standing at a time, and then when the member wants to claim their time, they just rise in their seat.

The hon. member.

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, why were they not disqualified for life?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, I will say the same thing again, that this particular case is under investigation—

[The Chair, Conservative, Tom Kmiec]

The hon. member.

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, why were the principal partners, Firth and Anthony, not disqualified for life?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, we are here to discuss the main estimates. Let us talk about what is in the main estimates. This is the—

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, how many ministers and parliamentary secretaries who had their hands all over this file have apologized to the House and Canadians for not exercising ministerial responsibility?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, I would talk about the main estimates for 2025-26. Let us talk—

[The Chair, Conservative, Tom Kmiec]

The hon. member.

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, the answer is zero.

How many ministers have resigned?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, let us talk about the main estimates for 2025-26.

[Larry Brock, Conservative, Brantford—Brant South—Six Nations, ON]

Mr. Chair, the answer is zero.

As the new President of the Treasury Board of this so-called new government, will the minister do the honourable thing and apologize to Canadians for not exercising prudent care over their tax dollars?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, I understand my colleague wants to have a clip, but we are here to talk about the main estimates for 2025-26. Let us talk about the investments we are making in the priorities that are most important to Canadians. Let us talk about $35.7 billion in planned spending for national defence, reflecting a $5.1-billion increase in voted funding to support Canada's defence priorities.

[The Chair, Conservative, Tom Kmiec]

The member's time has elapsed, so we will resume debate.

The President of the Treasury Board has the floor.

[Shafqat Ali, Liberal, President of the Treasury Board]

Mr. Chair, I want to take this opportunity to thank the residents of Brampton—Chinguacousy Park for putting their trust in me. I thank the incredible team of volunteers for putting in their time, day and night, to send me here. I am also grateful to the Prime Minister for putting his trust in me and appointing me to this job.

It is a pleasure to be here today to discuss proposed spending for the government, the Treasury Board of Canada Secretariat and the Canada School of Public Service, as outlined in the main estimates for the 2025-26 fiscal year.

It has been just over a month since I began my role as President of the Treasury Board, and I want to say how grateful I am for the warm welcome and professionalism I have seen across the department. I want to take this opportunity to thank the public service for their hard work and commitment in service to the entire Government of Canada and the people we serve. In my opinion, they are the treasurers of the Treasury Board of Canada Secretariat. I thank them for their service.

Allow me to provide a bit of an overview of the main estimate. The 2025-26 main estimates show how the government plans to invest public resources to meet the challenges and opportunities ahead and address the priorities that matter most to Canadians. They indicate the areas in which our new government will spend funds and the limits to how much it may spend without returning to Parliament to request more funds. Throughout the year, supplementary estimates are also presented to seek parliamentary approval for additional spending requirements that were not sufficiently developed in time for inclusion in the main estimates or were unforeseen.

Overall, the main estimates for 2025-26 present information on $222.9 billion in voted expenditures and $264 billion in statutory spending, for a total of $486.9 billion in planned budgetary spending for 130 organizations. Most of these funds are allocated outside of federal government organizations. In fact, transfer payments totalling $294.8 billion account for over 60% of expenditures. These payments provide important ongoing assistance to provinces and territories, organizations and individuals. They include benefits for seniors, the Canada health transfer and the Canada disability benefit. Funds that support the operation of the departments and the programs, activities and services they deliver for Canadians total $143.1 billion. This includes everything from national security and defence to reconciliation and housing.

As members of the committee review the estimates and supporting documentation, they will note that the government's spending plan is closely aligned with the priorities of Canadians. For example, $33.9 billion in voted funding is proposed for the Department of National Defence. The main estimates include $12.3 billion to ensure the readiness of our armed forces, $9.5 billion for military procurement and $4.9 billion for sustainable bases, IT systems and infrastructure. A further $4.4 billion is proposed for recruiting, developing and supporting an agile and diverse defence team, and $2.3 billion is planned for operations.

Another vital issue is Canada's relationship with its indigenous people. True reconciliation means more than symbolic gestures. It requires concrete actions in education, health care, governance and economic opportunity. That is why the proposed spending for the Department of Indigenous Services totals $25.2 billion. This amount includes investments in a broad range of services that support health, children, families and education.

There has been much discussion about the increase in the main estimates compared to last year. This can be explained by three key factors. First, because the main estimates are being presented several months later than normal, they contain items that likely would have been included in the supplementary estimates rather than in the main estimates. Second, the estimates contain increased spending in several key areas of importance for Canadians, including dental care, reconciliation and national defence. Third, the main estimates include increases in major transfer payments to provinces, territories and other organizations, which, as I mentioned earlier, make up the majority of proposed spending.

I would now like to discuss the historic investment in Canada's armed forces announced by the Prime Minister. This important investment is reflected in the 2025-26 supplementary estimates (A), which were tabled on June 9.

Canada is at a pivotal moment in its history, and we need the resources to protect our country and its citizens against foreign threats. We need to be strong at home with a military that is ready and capable, particularly in the Arctic and northern regions. Through the supplementary estimates (A), the government would do just that.

The spending of $9 billion would provide key investments in Canada's defence and security capabilities to help our military with recruitment, training and equipment. These investments would also support our international defence relationships and obligations.

The estimates play a wider role in supporting Parliament's scrutiny of how public funds are being spent so that it can hold the government to account. All of the estimates demonstrate the government's commitment to delivering results on the issues that matter most to Canadians.

I am happy to take questions.

[Arielle Kayabaga, Liberal, London West, ON]

Mr. Chair, as the minister knows, we are here tonight to talk about the main estimates, but we are also here to discuss the supplementary estimates, which include landmark investments that will help our government achieve NATO's 2% target this year, something we heard a lot about when we were campaigning.

Maybe the minister can talk about Canada's role on the world stage and here at home and how we are going to do that.

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, the main estimates include a major investment in defence, and the supplementary estimates (A) are a historic investment in Canadian national defence. This investment includes the modernization of equipment to provide tools to the men and women who serve our country so they can be equipped to defend Canada and make our borders strong.

We are in a different era. This is a time when Canada is faced with unjustified tariff threats and foreign threats to our sovereignty. This investment would make sure that we are prepared for tomorrow to protect Canada—

[The Chair, Conservative, Tom Kmiec]

The government House leader.

[Arielle Kayabaga, Liberal, London West, ON]

Mr. Chair, I feel kind of rude. I did not get an opportunity to congratulate the minister in his new role and for his return to Parliament.

Since the minister assumed his role and responsibility as the President of the Treasury Board, I am sure he has had ample opportunity to work with the public service and a lot of the public servants who keep the work that we do in Parliament going. I just want to take the time to thank them for the work they do.

Can the minister reflect on that experience so far and the importance of our public servants, the work they do and the contributions they bring to our country?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, I am a first-generation immigrant. I built my life from scratch. Every single moment I can cherish being a Canadian, I am grateful.

I see that this country is supported by public servants who put their heart and soul into our operations and our delivery of services to Canadians. Whether it is something urgent, a wildfire or COVID, any situation, they are there to meet the moment. I would like to thank our public servants for doing an amazing and incredible job serving Canadians.

[Arielle Kayabaga, Liberal, London West, ON]

Mr. Chair, I thank the minister for that answer; I think it is the right answer.

I have another question for the minister. We have seen a rapid growth in AI and intelligence technologies, which I think are the future. They are transforming the way we do things in our economy. In my region of southwestern Ontario, this is something we are relying on for innovation and creating job opportunities.

Can the minister talk about how the Government of Canada has signalled its commitment to modernizing service delivery, improving our internal operations and increasing efficiency through AI and the different programs he is working on?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Mr. Chair, this new government is committed to using AI and investing in AI to improve productivity and the delivery of services to Canadians. This government is committed to ensuring the responsible use of artificial intelligence and ensuring that it is governed with clear values, ethics and rules.

Canada is a global leader in public sector AI, and we recently published an AI strategy for the federal public service to guide our path forward, further enhancing Canada's leadership. The strategy will accelerate responsible AI adoption throughout the federal public service to deliver better digital services to Canadians and businesses; enhance public service productivity; and increase our capacity for discovery through science and research. The strategy was developed through extensive consultations with experts and the public. It will be renewed every two years to ensure it remains relevant and responsive to technological advances.