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Speaking Notes by
Lucienne Robillard
President of the Treasury Board, Minister responsible for Infrastructure and Member of
Parliament for Westmount-Ville-Marie
1. Introduction: Responsible spending - a cornerstone of good governance
Mr. Chairman
Senators
This is my first appearance before your committee since assuming the responsibilities
of President of the Treasury Board. Let me begin by saying how pleased I am to be with you
today.
Canadians have a right to expect their government to administer funds judiciously. This
principle is one of the pillars of good governance. It is something this government takes
very seriously.
That is why we operate in a transparent manner. We strive to focus on results and
provide excellent service. And, perhaps most importantly, we listen to what Canadians
want.
This has certainly proved to be a recipe for success.
2. The Fiscal Situation
Economically speaking, we have seen a remarkable turn-around over the last six years.
Six years ago people were skeptical about the future. Many feared that their children
faced a future of debt, unemployment and uncertainty. What a difference a few years can
make.
Canada's economic growth is now among the strongest of the G-7 countries. The size
of our economy will surpass the trillion-dollar mark this year.
Canadians have worked hard to make this possible. They have made tough decisions and
now our country has a rock solid foundation.
We will continue to move forward to improve the general quality of life in this
country. We have a coherent vision for the future. It was outlined in the Speech from the
Throne - made concrete in the Budget - and is reflected in the Main Estimates. I
welcome this opportunity to speak about the Budget and in particular the Main Estimates.
3. The Budget: A Plan for Canada's Future
The federal budget - the first of the 21st century - adopted the
right balance between spending, tax reduction and debt repayment.
After years of fiscal restraint we are now in a position to invest - keeping in
mind, of course our budgetary commitments. But we will invest strategically and
responsibly - on health, and on programs that will create opportunities, improve our
sense of individual and collective security and promote general prosperity.
Canadians have told us what they want: a prosperous country with safe communities, a
healthy environment and opportunities for our children. They also want a country with a
soul - a country where people take care of each other and have a profound sense of
collective responsibility.
These are Canadians' objectives - and they are our objectives.
4. Main Estimates - Function
As you are aware, the Budget forecasts expenditures of $158 billion. But how exactly is
this money going to be spent? How are we going to invest in innovation? How are we going
to ensure that Canada is competitive in the 21st century?
The various parts of the Main Estimates help address these questions. As you are aware,
the Main Estimates themselves consist of several documents.
The so-called "blue book" details the voted and statutory items within
departments and agencies and Crown Corporations.
The Reports on Plans and Priorities provide detailed qualitative information on
spending plans and expected results, while the departmental Performance Reports focus on
actual achievements against plans. Together, these reports constitute Part III of the
Estimates.
Thanks to Part III of the Estimates, we now have a more disciplined reporting structure
in place that starts from key results commitments. We now have Performance Reports that
tangibly link results to resources. We now expect each department to be able to explain to
Canadians how they are meeting government objectives - and why they are
not if that is the case.
This direct link between overall goals and individual departmental initiatives is
crucial if Canadians are going to have a clear sense of the government's vision and
how their tax dollars are being spent to turn that vision into reality.
5. The Main Estimates - Expenditures
As you are aware, the Main Estimates represent the bulk of the Government's
expenditure plan as set out in the March Budget. The Main Estimates 2000-2001 amount to
$156.2 billion - or almost 99% of the total planned spending.
This includes the government's request for Parliament's authority to spend
both the $50.1 billion for which annual appropriations are required and $106.1 billion of
spending authorized under existing statutes.
Authority to spend the balance will be sought through Supplementary Estimates, or
through separate legislation, over the course of the year.
You will note that this year's Main Estimates show a growth in total spending of
$4.6 billion, or 3%, over last year.
This growth does not signal a move towards carefree spending. That is not the way this
government does business. As I have said, this money is being invested strategically in
areas that are important to Canadians.
In fact, the total amount of spending as a percentage of GDP, has actually decreased
over the last four years. It was 17.1% in 1997-98. It is now 15.8%.
The same is true for the amount of funds allocated for program spending. Program
spending in 2000-2001 will be $116 billion. This is actually $4 billion lower than in
1993-94.
There are several reasons why this year's Main Estimates are $4.6 billion higher
than last year's. We have invested an additional $1 billion in the Canada Health and
Social Transfers. There is also an increase of $700 million in the area of Old Age
Security, Guaranteed Income Supplement and Spouses Allowance. With an aging population, we
are seeing an increase in the number of benefit recipients and in the average benefit
rate.
Canadians told us their priorities: a strong social safety net and reliable,
high-quality health care. We listened, and as you can see we are investing appropriately.
There are also several increases in voted appropriations.
We are investing in areas such as national defence and agricultural assistance
(increase of $500 million) as well increasing grants to the Registered Education Savings
Plans (by $359 million). These are all measures designed to address Canadians' needs
and to create opportunities for the future.
Many of the proposed expenditures are designed to maintain and preserve the levels of
service that Canadians expect from their government. A number of core federal services are
addressed by new funding outlined in the Estimates. These expenditures will improve, among
other things, the safety of this country's public infrastructure. They will augment
the RCMP's policing capacity and the safety of food inspection. They will help to
speed up the response times and capacity of search and rescue services.
These are all things that affect Canadians on day-to-day basis. In the Budget we
committed to improving the quality of life in this country - and I believe we are
doing so.
6. Treasury Board - Specific Expenditures
As you are aware, I am tabling the Main Estimates on behalf of the government. As
President of the Treasury Board, however, there are certain expenditures that are
particularly relevant to my own area of jurisdiction.
The Main Estimates for the Treasury Board Secretariat are approximately $1.73 billion.
It is useful to distinguish between the expenditures on TBS requirements and those
requirements related to a series of central votes designed to meet government
wide-commitments. These central votes constitute 92% of the Main Estimates for TBS and
cover commitments including the current round of collective bargaining, a provision for
contingencies and expenditures such as Public Service Insurance.
I should note that the $1.73 billion in expenditures is actually a decrease from
last year - a decrease of almost $174.5 million. These savings can be attributed to a
change in the funding requirements in a number of different areas.
We have seen a decrease of $16.2 million, for example, in our operating expenditures.
The bulk of this reduction is due to the near completion of TBS's responsibilities
for the Y2K initiative.
You will also notice that the Main Estimates show an apparent decrease from last year
of approximately $200 million in the central vote for collective agreements (Vote 15).
This vote provides funding to departments and agencies for the increased personnel
costs of collective agreements that were reached too late in the year to identify and
allocate specific amounts to departments and agencies in Main Estimates.
For the 1999-2000 fiscal year, the timing of the agreements did not allow us to reflect
the new resources in each department's Main Estimates. As an alternative to preparing
a Supplementary Estimates item for each department, the money was placed in a central vote
and distributed over the course of the year. I should note that Public Accounts will
report on the specific departmental allocations from this vote. The downstream impacts of
these agreements are reflected in each department's Main Estimates for 2000-01
Of course, we are also seeing an increase in certain votes, notably Vote 10 - the
Government-wide Initiatives Vote. The funding level has increased by $78.6 million over
last year. This increase is primarily due to funding for the Government On-Line
initiative. $80 million is being requested for this initiative. This may seem like a very
large amount. It is. But it is an investment in our competitiveness, in our prosperity as
a country and in our future. This investment is a reflection of our Government's
commitment to being known around the world as the government most connected to its
citizens.
Other initiatives, such as the Service Canada pilot projects - designed to improve
access to Government - will also require additional funding. In Service Canada's
case, the amount is $2.9 million. The increase will be used to complete the Service Canada
pilot program initiated in 1999-2000 and is necessary to accommodate adjustments to the
project implementation timelines.
7. Conclusion: Results for Canadians
Ladies and gentlemen, when you look at these numbers and you look at where the money is
being spent, I think that it is clear that we are on the right track. We are managing to
strike a balance between prudent financial management and strategic investments in
innovation, our national competitiveness and our quality of life.
The Budget laid out the course - and the Estimates demonstrate how we are
following it.
There is one more document that I would like to mention, in closing, which helps to
complete the picture. I am speaking about the Government's new management framework.
It is outlined in the publication, Results for Canadians, that I tabled in
Parliament on March 30th.
Results for Canadians explains how we are modernizing government management
practices. It outlines our overall management commitments.
As we enter the 21st century, there are four principles that direct all our
efforts to improve government management.
We are striving to make the Government of Canada more citizen-focused. This means
listening to what Canadians want and providing the services that they need.
We are becoming more results-oriented. We are setting goals and improving the way we
measure our success and failures.
We are committed to a high standard of professional and personal values and ethics.
Finally, we are focusing on ensuring responsible spending.
Ultimately, we want Canadians to have confidence that the investments we outlined in
the Budget and the Estimates are being administered efficiently and effectively, that we
are accountable for results achieved and that funding is going to programs and services
that are truly serving the public good.
These efforts to improve the way that government functions complement our
efforts to invest in Canadians and their future.
Put together, they demonstrate how we are moving forward and providing Canadians with
the type of government they want, need and deserve.
Thank you.
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