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Backgrounder - Effective Spending

Related News Release: Canada's New Government cuts wasteful programs, refocuses spending on priorities, achieves major debt reduction as promised

Focusing on the priorities of Canadians:

Canadians want to know their hard-earned tax dollars are invested responsibly in effective programs that meet their priorities. Responsible spending is a cornerstone of accountable government.

In Budget 2006, Canada's New Government committed to identify $1 billion in savings from programs and activities that are no longer effective.

We have found savings in these four areas:

1) Programs that weren't providing good value for money for Canadians. For example, we are saving $13.9 million by not going forward with the High-Frequency Surface Radar project because access to the radio spectrum to operate this system is not available.

2) Unused funds from programs that have already achieved their objectives or had lower than expected take-up. For example, we are saving $15 million by having settled the softwood lumber deal. The previous government never believed it could get the deal done, so it had set large amounts of money aside to pay lawyers.

3) Efficiency savings by streamlining programs. For example, we are saving $4.5 million by consolidating some foreign missions. With the advances in telecommunication, in many cases in countries with multiple missions, work can more easily and effectively be done from a central location.

4) Non-core programs. We will save $4 million through the elimination of funding for the research into Medical Marijuana. Canada's New Government has made big commitments to health research, and doesn't believe the federal government needs to tell professional researchers what to study.

Areas of savings identified by Canada's New Government:

Areas of savings identified by Canada's New Government

Program Savings Identified ($000s)

Efficiency
Unused Funds
Non-Core Programs
Value for Money

256,062
379,563
99,620
265,647

Grand Total

1,000,892

Definitions

Value for Money

Funding for third parties to further their interests or programs that are not effective, do not achieve results or are being re-focused or targeted for improved effectiveness.

Unused Funds

Funding for programs that will not proceed, funds in excess of what is required to achieve results or funds not needed due to lower than anticipated take up.

Non-Core Programs

Programs or activities do not meet the priorities of the federal government or Canadians.

Efficiency

Savings from streamlining or consolidation of activities or from operational or program efficiencies, as well as programs or services that can be provided or are being provided elsewhere.

A common-sense approach to responsible spending going forward:

Responsible spending is not a one-time exercise. It is the way Canada's New Government intends to manage tax dollars, year in and year out.

The new Expenditure Management System will make responsible spending the norm for how Canada's New Government does business. It will require that all new and existing programs go through a systematic and rigorous examination. This will ensure that this Government only approves funds that are actually needed to achieve measurable results in a way that is effective, and provides value for money on behalf of Canadians.

Detailed Savings by Area

Portfolio/Organizations	Description	2-year Savings
Efficiency
Various	Smaller Cabinet	46,784
Agriculture and Agri-Food	Reduction in Number of Advisory Groups	1,000
Canada Revenue Agency	Elimination of Advisory Committees	1,396
Canadian Heritage	Operating/Program Efficiencies	1,105
Canadian Heritage	Reduction to Museums Assistance Program	4,630
Canadian Heritage	Status of Women Canada Administrative Savings	5,000
Canadian International Development Agency	Operational Efficiencies	4,000
Finance	Consolidating Retail Debt Program Administration	5,000
Foreign Affairs & International Trade	Elimination of Foreign Policy Consultation, Research and Outreach Contribution Program	1,309
Foreign Affairs & International Trade	Consolidation of Missions Abroad	4,250
Foreign Affairs & International Trade	More Gradual Implementation of Overseas Activities	14,000
Foreign Affairs & International Trade	Reduced funding for public diplomacy	11,878
Health	Elimination of Health Canada's Policy Research Program	7,500
Health	Health Portfolio Efficiencies	28,100
Human Resources and Skills Development	Canada Mortgage and Housing Corporation Efficiencies in the administration of CMHC programs	45,000
Human Resources and Skills Development	Efficiencies Related to Policy Research Initiative	300
Indian Affairs and Northern Development	Departmental Efficiencies	3,550
Industry	More Gradual Implementation of Commercialization Pilot Program	7,500
Industry	Statistics Canada Operational Efficiencies	15,000
Justice	Elimination of Funding for the Law Commission of Canada	4,194
Natural Resources	Cessation of Operations of the Very Long Base Interferometry (VLBI) System	1,600
Natural Resources	Elimination of Unused Funding for Previous Mountain Pine Beetle Initiative	11,700
Natural Resources	Phase in approach to International Capacity Building	1,800
Public Safety and Emergency Preparedness	Canadian Firearms Centre Operational Efficiencies	6,000
Transport	Capital Management Efficiencies	3,000
Transport	Corporate Management & Program Efficiencies	466
Treasury Board	Reduction in Additional Planned Funding for Ministers' Regional Responsibilities	20,000
Efficiency Total		256,062
Unused Funds
Agriculture and Agri-Food	Canadian Food Inspection Agency - Elimination of Unused Program Funding	10,000
Agriculture and Agri-Food	Canadian Food Inspection Agency Reduction to Non Health and Safety Related Inspection Activities	4,000
Agriculture and Agri-Food	Reduction in Funding For Greencover Canada Program due to lower participation	5,000
Canadian Heritage	Elimination of Unneeded Funds from Loan Loss Reserve under Cultural Investment Fund	500
Citizenship and Immigration, Foreign Affairs & International Trade, Justice, Commissioner for Federal Judicial Affairs & Courts Administration Service	Elimination of Unused Funding for a Proposed New Citizenship Act	20,293
Environment	Parks Canada Agency Earlier Wind-up of Commercial Heritage Property Incentive Pilot	2,900
Fisheries and Oceans	Elimination of Unused Program Funding	20,000
Foreign Affairs & International Trade	Elimination of Residual Funding for Softwood Lumber Trade Litigation	14,986
Foreign Affairs & International Trade	Elimination of Unused Funding for Enhanced Representation Initiative	7,950
Health	Health Policy Grants - Unused Portion	12,000
Indian Affairs and Northern Development	Elimination of Unused Funding Related to Northwest Territories Devolution	50,000
Industry	Canadian Tourism Commission Elimination of Unused Funds for Relocation of Canadian Tourism Commission	5,675
Industry	One-Time Reduction in Excess Reserves in Canadian Intellectual Property Office Revolving Fund	50,000
Industry Canada & Economic Development Agency of Canada for the Regions of Quebec	Reduction in Funding for the Canadian Apparel and Textile Industries Due to Lower Take Up	24,890
Public Safety and Emergency Preparedness	Royal Canadian Mounted Police Elimination of Drug Impaired Driving Program's Training Budget	4,650
Public Works and Government Services	Elimination of Excess Funding for Real Property Renewal	5,000
Public Works and Government Services	Reduction in Excess Revolving Fund Surplus	40,000
Treasury Board	Elimination of Uncommitted Funding for Government-Wide Initiatives	18,500
Treasury Board	Public Service Human Resources Management Agency of Canada Reduction in Excess Funding for Public Service Human Resource Programs	83,219
Unused Funds Total		379,563

Non-Core Programs
Atlantic Canada Opportunities Agency, Economic Development Agency of Canada for the Regions of Quebec, Industry (FedNor), Social Sciencies & Humanities Research Council & Western Economic Diversification	Elimination of Non-Committed Funds for Social Economy Programs	39,276
Canadian Heritage	Elimination of Support to Canadian Volunteerism Initiative	9,744
Environment	Reduction in Low Priority Grants and Contributions	7,600
Foreign Affairs & International Trade	Elimination of Youth International Internship Program	10,200
Health	Elimination of Medical Marijuana Research Program	4,000
Human Resources and Skills Development	Reduction in Low Priority Grants and Contributions Related to Social Development Partnership Program	13,800
Natural Resources	Elimination of Programs for Studying Concrete and Other Materials	1,100
Public Works and Government Services	Elimination of Canadian Identity Grant and Contribution Program	4,800
Treasury Board	Canada School of Public Service Reduction in Low Priority Training for Federal Employees	9,100
Non-Core Programs Total		99,620

Value for Money
Canada Revenue Agency, Canada Border Services Agency & Finance	Elimination of Visitor Rebate Program	78,800
Canadian Heritage	Elimination of Funding for the Centre for Research and Information on Canada	6,500
Canadian Heritage	Elimination of Court Challenges Program	5,604
Health	Elimination of Funding for First Nations and Inuit Tobacco Control Strategy	10,800
Human Resources and Skills Development	Improved Targeting of Adult Learning and Literacy Skills Program	17,700
Human Resources and Skills Development	Improved Targeting of Investments for Youth Employment	55,400
Human Resources and Skills Development	Refocusing of Workplace Skills Strategy	17,600
Human Resources and Skills Development	Elimination of Funding for Canadian Policy Research Networks	3,000
Industry	Reduced Funding for Industrial Programs including Technology Partnerships Canada	42,200
National Defence	Cancellation of High-Frequency Surface Wave Radar Project	13,900
Public Safety and Emergency Preparedness	Refocusing of Some Funding from National Crime Prevention Centre	14,143
Value for Money Total		265,647

Grand Total		1,000,892