Tabling of 2004-2005 Supplementary Estimates (A)

[Backgrounder]

For immediate release

November 4, 2004

OTTAWA - Reg Alcock, President of the Treasury Board, today tabled in the House of Commons the 2004-2005 Supplementary Estimates (A) totalling $2.7 billion. 

"As part of our commitment to improve transparency and accountability to Parliament and Canadians, changes in the format of the Supplementary Estimates have been introduced to improve the consistency of information, include more horizontal and summary information at the front end of the document, as well as more detail on the transactions reflected in the departmental Supplementary Estimates," said Minister Alcock. "The Supplementary Estimates also contain information on the government's $1 billion reallocation initiative that was announced in Budget 2003."

The 2004-2005 Supplementary Estimates (A) seek Parliament's approval for expenditures that were not anticipated when the 2004-2005 Main Estimates were first tabled on February 24, 2004 and include such items as:

• $1 billion for the Operating budget carry forward; 
• $189 million for additional costs related to the Canadian Forces deployment in Afghanistan;
• $162 million for international assistance in Haiti and Afghanistan, as well as to meet commitments related to combating malnutrition and disease;
• $158 million relating to compensation for collective bargaining; and
• $131 million for initiatives to support the implementation of a common electronic infrastructure and multi-channel service delivery strategy (Government On-Line). 

These Supplementary Estimates include a net reduction of $0.2 billion in statutory spending that has been previously authorized by Parliament.  Adjustments to projected statutory spending are provided for information purposes only.

These Supplementary Estimates are within and consistent with the $183.3 billion in overall planned spending for 2004-2005, as set out in the March 2004 Budget but not included in the 2004-2005 Main Estimates.

The Estimates and the Budget reflect the government's annual resource planning and allocation priorities. In combination with the subsequent reporting of financial results in the Public Accounts and of accomplishments achieved in Departmental Performance Reports, this information helps Parliament hold the government accountable for the allocation and management of public funds.

Please refer to the attached backgrounder for further details on the 2004-2005 Supplementary Estimates (A).  The Supplementary Estimates and related documents are posted on the Treasury Board of Canada Secretariat Web site at:
http://www.tbs-sct.gc.ca/est-pre/sups0405e.asp.

- 30 -

For more information, contact:

Lise Jolicoeur

Press Secretary
Office of the President of the Treasury Board
of Canada and Minister responsible for the Canadian Wheat Board
 (613) 957-2666

Robert Makichuk
Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391

IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS DOCUMENT, THE ELECTRONIC VERSION WILL BE CONSIDERED OFFICIAL.

TTY (Telecommunications device for the hearing impaired) — (613) 957-9090

Backgrounder 

Overview of the 2004-2005 Supplementary Estimates (A)

Introduction

The 2004-2005 Supplementary Estimates (A) seek Parliament's approval to spend
$2.9 billion on expenditures (voted appropriations) for 2004-2005.  This amount is reduced by $0.2 billion in statutory spending previously approved by Parliament. The net requirements for these Supplementary Estimates total $2.7 billion.

These expenditures were provided for within the $183.3 billion in overall planned spending for 2004-2005, as set out in the March 2004 Budget but not included in the 2004-2005 Main Estimates.

Budget 2003 reiterated the need to reinforce accountability and clarity of information in public reporting.  To that end, changes are being introduced to the format of these Supplementary Estimates to increase the transparency and improve the consistent treatment of information across Estimates documents.  This includes more horizontal and summary information in the front end of the Supplementary Estimates document as well as more disclosure of transactions on the departmental Supplementary Estimates.

These Supplementary Estimates also provide additional details on the government's $1 billion reallocation initiative that was announced in Budget 2003. Some $437.6 million has been reflected in these Supplementary Estimates.  This is in addition to reductions of  $319 million reflected in the 2004-2005 Main Estimates and some $246.4 million in announced funding that has been cancelled.  A departmental overview of the $1 billion is attached as Annex A.

Adjustments relating to the government's restructuring, announced on December 12, 2003 and July 20, 2004 are reflected in these Supplementary Estimates pursuant to the Public Service Rearrangement and Transfer of Duties Act.  The legislation has not yet been introduced relating to the specific division of assets and responsibilities among departments affected by the machinery changes.  As the House has not had the opportunity either to reflect or reject the government's proposals, the full extent of the changes cannot yet be reflected in the Estimates. As a result, the remainder will be disclosed in future Estimates.

The following provides an overview of major changes reflected in these Supplementary Estimates:

A.     $2.2 billion of the$2.9 billion for which parliamentary approval is sought relates largely to the following increases:

Increases to items affecting more than one organization:

• $1,011 million in funds being carried forward from 2003-2004.  This is an approved budget management practice that provides departments with some flexibility to manage and/or implement initiatives over a multi-year planning horizon – all eligible departments and agencies;
• $158 million in compensation adjustments to departments and agencies for recently negotiated collective agreements, up to July 31, 2004 – all eligible departments and agencies;
• $132 million for Public Security Initiatives (e.g., Marine Security, Smart Border Initiative, National Security Policy) – Canada Border Services Agency, Canadian Food Inspection Agency, Citizenship and Immigration, Fisheries and Oceans, Immigration and Refugee Board of Canada, Justice, National Defence, Royal Canadian Mounted Police, Transport;
• $131 million for initiatives to support the implementation of a common electronic infrastructure and multi-channel service delivery strategy (Government On-Line) – Citizenship and Immigration, Environment, Foreign Affairs and International Trade (Foreign Affairs), Health, Human Resources and Skills Development, Human Resources (Social Development), Indian Affairs and Northern Development, Industry, International Trade, Natural Resources Canada, Public Works and Government Services, Statistics Canada, Veterans Affairs Canada;
• $109 million to foster social and economic advancement through the support of research, knowledge dissemination and the commercialization of initiatives – Canadian Institute of Health Research, Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council;
• $95 million for the assessment, management and remediation of federal contaminated sites –Agriculture and Agri-Food, Canada Border Services Agency, Canadian Food Inspection Agency, Correctional Service, Environment, Fisheries and Oceans, Health, Indian Affairs and Northern Development, National Defence, Natural Resources Canada, Parks Canada, RCMP, Transport; and 

Increases to specific items affecting a single organization:

• $189 million for additional costs related to the Canadian Forces deployment in Afghanistan –National Defence;                                                                                                 
• $162 million for international assistance in Haiti and Afghanistan, as well as to meet commitments related to combating malnutrition and disease – Canadian International Development Agency;
• $92 million for three new UN peacekeeping operations in Burundi, Sudan and Haiti and for the increased costs of existing operations in the Democratic Republic of the Congo, Ethiopia, Eritrea, Liberia and Côte d'Ivoire –Foreign Affairs;
• $76 million to address gaps in public health and to lay the foundation for the creation of the Public Health Agency of Canada – Health; and
• $60 million to enhance Canadian sport development, excellence and participation    – Canadian Heritage.

The remaining increase of $0.7 billion is spread among a number of other departments and agencies included in the Supplementary Estimates.

B.     The change in the forecast statutory spending is a net decrease of $0.2 billion largely due to the following:

Increases to items affecting more than one organization:

• $304 million for activities to mitigate the impact of the Bovine Spongiform Encephalopathy (BSE) crisis – Agriculture and Agri-Food, Canadian Food Inspection Agency, Health.

Increases to specific items affecting a single organization:

• $928 million in payments under the Transitional Industry Support Program, a program to assist the agricultural industry in its transition to new business risk management programming under the Agricultural Policy Framework – Agriculture and Agri-Food;
• $66 million for compensation payments in accordance with requirements established by Regulations under the Health of Animals Act and the Plant Protection Act, and authorized pursuant to the Canadian Food Inspection Agency Act (S.C. 1997, c. 6) – Canadian Food Inspection Agency;
• $65 million for Contribution payments, under the Canadian Farm Income Program, to protect producers against dramatic drops in farm income – Agriculture and Agri-Food.          

This is offset by the following major decreases in statutory spending:            

• $800 million largely due to a decrease in expected public debt charges due to lower than forecast interest rates – Department of Finance; and
• $762 million relating to a revised forecast of transfer payments to provincial governments– Department of Finance.

The decreases total $1.6 billion. Increases total $1.4 billion. This results in a net decrease of $0.2 billion.

Annex A

$1 Billion Reallocation Initiative