Finance committee  Thank you for the question. Just to clarify, is this with respect to division 6 and the $2 billion for the one-time top-up for the Canada health transfer?

Finance committee  The funding for that is being transferred to each province and territory. The purpose of the funding is to support them in reducing backlogs created by the COVID-19 pandemic. It is the responsibility of each province that has its own ways to allocate that funding to address that need.

Finance committee  Thank you for the question. It's the responsibility of each province and territory to distribute the funds as needed. They have been asked to allocate this money based on the number of transit users. However, the provinces and territories whose public transport system is not very well developed have the option of using this money to meet other needs, particularly housing.

Finance committee  There have been direct discussions with the Quebec Minister of Finance regarding the program and the measures taken by the Quebec government to meet the objectives for the funds. Indeed, there is an agreement between the two governments.

Finance committee  They also have to also match the federal contribution and then allocate the total of that funding based on transit ridership. The funding is to be used towards transit operating shortfalls, capital or housing.

Finance committee  Yes. That is the purpose of the funding.

Finance committee  It does not affect the Canada health transfer base. It is a one-time top-up.

Finance committee  Yes. It's based on equal per capita allocation, the same that is used for the Canada health transfer.

Finance committee  The provinces and territories have been asked to allocate the funding based on transit ridership within their jurisdictions.

Finance committee  Because the primary focus was on transit, where there are urban centres, the allocation was based on that.

Finance committee  Mr. Chair, I'll respond to that question. The funds for this measure will be allocated based on the formula already used for the public transit stream of the investing in Canada infrastructure program. It's calculated on a mix of transit ridership, with a 70% weight, and population, with a 30% weight.

Finance committee  This is just how that section is provided—

Finance committee  Again, there was flexibility for jurisdictions such as Prince Edward Island and others where there are not large transit systems.

Finance committee  Can you hear me now? Is that better?

Finance committee  I will endeavour to be clearer. In the cases of small jurisdictions like Prince Edward Island, those jurisdictions have flexibility to allocate according to needs, as long as these fit in the category of transit or housing.