Funding
Policy & Design » LMDA Coordination and Analysis » Québec
Funding for active employment measures
7.1 For each of the fiscal years from 1997-1998 to 2001-2002 inclusive, Canada agrees to make available to Québec a contribution for costs of the active employment measures covered by this Agreement incurred for these years, for which the ceiling will be established in accordance with the allocation model described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development to the Secrétaire général associé aux Affaires intergouvernmentales canadiennes of Québec.
7.2 Subject to clause 7.2.1, the amount of Canada's contribution for costs of Québec's active employment measures incurred in each of the 1997-1998, 1998-1999, and 1999-2000 fiscal years, shall be $457.298 million, $527.012 million and $559.366 million respectively. For fiscal years 2000-2001 and 2001-2002, Canada agrees to make available to Québec an amount which is at least equal to $559.366 million:
7.2.1 In view of the nature of the allocation model, the actual contribution amounts made available to Québec for each of the above-mentioned fiscal years shall be confirmed in the month of January preceding the affected fiscal year and will vary only in accordance with the model.
7.2.2 Beginning in the third year of this Agreement, Canada agrees to notify Québec of projected contribution levels for each of the subsequent three fiscal years. In this way Québec shall at all times have a three-year financial planning framework.
7.3 For years subsequent to the first five years of this Agreement Canada shall annually review with Québec the amount of the contribution it will make available and shall at the same time provide the three-year projections referred to in the preceding paragraph.
7.4 Canada agrees to review, within twenty-four months after the signing of this Agreement, the overall level of funding to be made available for active employment measures, basing its review in part on the results obtained under the labour market agreements.
This review shall be conducted within the context of evaluations of the impacts of implementation of these agreements. These evaluations will be used for preparation of the annual report of the Minister of Human Resources Development to the Parliament of Canada.
7.5 Canada agrees to establish an intergovernmental process aimed at reviewing the current formula for allocation of employment insurance funds intended for the active employment measures defined in this Agreement and at proposing options which put emphasis on matters such as achievement of results and generated Employment Insurance Account savings.
7.6 For years subsequent to the first three years of this Agreement, Canada shall review, in the context of an intergovernmental process and in the light of economic circumstances, issues relating to overall level of funding and sharing of the benefits of savings resulting from active employment measures, taking into account the general results of the Employment Insurance reform, including results associated with the effectiveness of active employment measures.
7.7 As regards the active employment measures that constitute employment benefits within the meaning of this Agreement, Québec agrees to use the funds from the Employment Insurance Account solely for employment insurance participants, as defined in clause 3.4 of this Agreement. This restriction does not apply to support measures targeting national employment service users.
Funding for administration costs associated with active employment measures
7.8 In addition to the adjustments provided for in clauses 7.11, 7.14, 7.15 and 7.16, Canada agrees to allocate a maximum contribution of $53.555 million for each year of the agreement, as administration costs incurred by Québec in providing active employment measures in each of these years.
7.9 It is agreed that the final amount of the maximum contribution for administration costs will depend on the number of employees and vacant positions eventually transferred to Québec under Part 6 of this Agreement and the type of offer made to the employees affected by the transfer.
7.10 Canada acknowledges that, in connection with the management of personnel affected by this Agreement, a certain number of positions will have become vacant at the time of the actual transfer of the federal human resources. Amounts related to these vacant positions shall be paid to Québec on the day the transfer of employees commences or, in the case of certain vacant positions, on the day Canada is released from such financial obligations as may be associated with the management of some of these positions.
7.11 Canada shall pay Québec a contribution corresponding to rent costs associated with the empty spaces resulting from the transfer to Québec of federal human resources. These sums shall be paid only on the expiry of current leases.
7.12 It is agreed that the equipment and furniture of federal employees, including their computer equipment, will be transferred to Québec. A list of such assets and related transfer terms and conditions shall be established in the implementation agreement.
7.13 Canada also agrees to assume connectivity costs to existing federal systems for the federal employees transferred to Québec and for 542 Québec employees involved in the delivery of employment services and measures.
7.14 The parties agree that employees transferred under this Agreement will be given access, at Canada's expense, to a dental care plan for a period of three years. The terms and conditions of this arrangement, including its maximum cost, shall be established in the implementation agreement.
7.15 Canada agrees to compensate Québec up to $1,000 for each transferred federal employee to cover the costs of their relocation. Canada shall pay these costs at the time of an employee's actual relocation.
7.16 If, during the the first three years of the agreement, the Treasury Board of Canada makes available to the Department of Human Resources Development additional sums for former federal employees transferred to Québec under this Agreement, Canada agrees to increase, for those years, the contribution payable to Québec for administration costs by an amount equal to those sums.