Supplementary Estimates (B), 2013-14

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Introduction

Structure of these Supplementary Estimates

This Supplementary Estimates document is presented in four sections:

1. Introduction to Supplementary Estimates;
2. Summary Tables;
3. Details by Department, Agency, and Crown Corporation; and
4. Annex.

Purpose and General Information

Each year, the government prepares Estimates in support of its request to Parliament for authority to spend public funds. This request for spending authority is formalized through the introduction of appropriation bills in Parliament. The Main Estimates and Supplementary Estimates are tabled in the House of Commons by the President of the Treasury Board and support Parliament's consideration of the appropriation bills. As with other bills, appropriation bills become law after being approved by both the House of Commons and the Senate and receiving Royal Assent.

The purpose of Supplementary Estimates is to present to Parliament information on the Government of Canada's spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have subsequently been refined to account for developments in particular programs and services. Also included for Parliament's information and eventual approval through an Appropriation Bill are such items as: transfers of money between Votes; debt deletion; loan guarantees; new or increased grants; and changes to Vote wording.

Supplementary Estimates documents are tabled in Parliament in advance of the related Appropriation Bill that, when approved, provides the necessary authority for the Government of Canada to spend monies from the Consolidated Revenue Fund to deliver its programs and services. This provides the various Standing Committees of Parliament with time to review proposed spending before the introduction of the Appropriation Bill.

Supplementary Estimates also provide updated information on changes to expenditure forecasts of major statutory items for information purposes only. These expenditures already have legislative authority and so will not appear in the Appropriation Bill related to these Supplementary Estimates but are available online.

It is the practice to table a Supplementary Estimate for each of the three Parliamentary Supply periods ending June 23, December 10, and March 26. These Supplementary Estimates (B) are the second of three Supplementary Estimates planned for this fiscal year.

Summary of Estimates

Estimates to date 2013–14

The 2013–14 Main Estimates were tabled on February 25, 2013, supporting the government's request to Parliament for authority through annual appropriations to spend $87.1 billion in voted budgetary expenditures and $71.1 million in voted non-budgetary expenditures and presenting information on the statutory amounts of $165.5 billion in budgetary expenditures and $41.0 billion in net non-budgetary recoveries. Royal Assent for Appropriation Act No. 1, 2013–14 was granted on March 27, 2013 and provided interim supply to departments, organizations and appropriation-dependent Crown Corporations until the end of June 2013. Royal Assent for Appropriation Act No. 2, 2013–14 was granted on June 19, 2013 and provided supply for the remaining amounts presented in Main Estimates.

Supplementary Estimates (A) were tabled on May 10, 2013 and provided information in support of requests for Parliament's approval of $1.1 billion in voted appropriations which represented an increase of 1.3% over Main Estimates. Information related to an increase of $8.2 million in forecast budgetary statutory expenditures was also presented. Royal Assent for Appropriation Act No. 3, 2013–14 was granted on June 19, 2013.

The Supplementary Estimates (B), 2013–14 provide information in support of $5.4 billion in voted appropriations which represent an increase of 6.2% over Main Estimates. As was the case in Supplementary Estimates (A), items announced in Budget 2013 are identified in these Supplementary Estimates. Future Estimates documents will include other planned expenditures announced in the 2013 Budget.

Figure 1. Comparison of Estimates, Supply and Expenditures - Budgetary

Figure 2. Comparison of Estimates, Supply and Expenditures - Non-budgetary

Notes:

1. Budgetary expenditures include the cost of servicing the public debt; operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
2. Non-Budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.
3. Voted Appropriations are those for which parliamentary authority is sought through an Appropriation Bill.
4. Statutory Expenditures are those authorized by Parliament through enabling legislation and for which forecasts are provided for information purposes.

Changes to the presentation of Supplementary Estimates

Several changes have been made to the presentation of the Main and Supplementary Estimates documents in 2013–14 to increase the amount of information provided and improve the usability of the overall publication.

In both the published books and the on-line tables, departments and agencies are presented alphabetically according to the legal name of the department or agency, making it easier to find particular organizations in the printed or electronic versions of the document. Presentation by Portfolio or Ministry has been maintained for the Proposed Schedules to the Appropriation Bill.

The 2013–14 Program Alignment Architecture is used for the tables which present information by Strategic Outcome and Program. If there has been a change in the Architecture, amounts for previous years have not been reclassified to the new structure and are reported as “Funds not allocated to the 2013–14 Program Alignment Architecture”.

The Estimates documents are prepared to support Appropriation Bills. Other changes have been made to focus on the items in the Proposed Schedules to the Appropriation Bill:

• Presentation of spending under statutory authorities is summarized. Details on forecasts of statutory items are available in the online table.
• Amounts under ‘Explanation of Requirements' are now presented to the dollar. This section now also includes information on items for which $1 is added to the Appropriation Bill to seek parliamentary authority.
  

Major Items

The following section provides an overview of major voted initiatives included in these Supplementary Estimates in support of Parliamentary approval.

Treasury Board Secretariat $955.0 million

Paylist Requirements – Funding for allocations to eligible departments and agencies for the payment of accumulated severance pay benefits

Funding will be used to reimburse departments, agencies and Crown corporations for severance pay benefits. Under recent collective agreements, affected employees will no longer accumulate severance pay in cases of resignation and retirement. Severance benefits accumulated up to the signature of the applicable collective agreement are payable to the employee upon request. Eligible expenditures will be reimbursed through a direct transfer to departmental appropriations during the fiscal year in which such costs are actually incurred.

Public Safety and Emergency Preparedness $689.0 million

Increased funding for the Disaster Financial Assistance Arrangements contribution program

The purpose of the Disaster Financial Assistance Arrangements (DFAA) is to provide federal government assistance to provinces and territories with response and recovery costs following significant natural disasters. The program helps return damaged public infrastructure and basic personal property for individuals and small businesses to pre-disaster condition. Funding in these Supplementary Estimates primarily relates to the $2 billion which will be provided to the province of Alberta to help with recovery costs following the June 2013 floods.

National Defence $514.3 million

Funding for implementation of the Federal Court's approved settlement of the Manuge Class Action lawsuit concerning the Pension Act offset provision contained in the Canadian Forces Service Income Security Insurance Plan – Long Term Disability Policy

This funding (which includes $506.6 million of unspent funds from 2012–13) will support the implementation of the Federal Court's April 2013 approved settlement of the Manuge Class Action. The funds will be paid to Manulife Canada and distributed to those eligible under the terms of the settlement.

Indian Affairs and Northern Development $472.2 million

Funding for the continuation of the implementation of Justice at Last: Specific Claims Action Plan (Budget 2013)

The Justice At Last initiative (2007) provided for the accelerated resolution of specific claim settlements with First Nations. Specific claims are negotiated settlements in order to compensate First Nations for losses incurred as a result of the improper administration of land and other First Nation assets, or for the non-fulfillment of Indian treaties. Renewal of this initiative provides operational funding to continue support ($22.2 million) for research, assessment, negotiation, and litigation activities for specific claims cases. In addition, funding ($450 million) is also for compensation to First Nations in anticipation of future specific claims settlements.

National Defence $400.0 million

Funding to support the ongoing implementation of the Canada First Defence Strategy

The Department of National Defence will continue to support the new and enhanced capabilities associated with the Canada First Defence Strategy, such as readiness (i.e. the cost of being ready to deploy troops and equipment – e.g. joint and north training exercises), the sustainment of new equipment such as Chinook helicopters.

Health $285.5 million

Funding to support First Nations and Inuit Health Programs and Services (Budget 2013)

The federal government provides a range of primary care services in remote and isolated First Nations and Inuit communities, on-reserve public health services, and non-insured health benefits to all eligible First Nations and Inuit. Funding is to support operational requirements for program delivery, including provision for supplemental health benefits, primary health care services in remote communities, and support for mental health and addictions services. Funds are also to support investments in the continued expansion of e-health infrastructure in remote communities and to facilitate national accreditation standards for First Nation and Inuit health care organizations.

Treasury Board Secretariat 275.0 million

Additional Requirements for the Operating Budget Carry Forward

The Operating Budget Carry Forward provides departments with the capability to carry forward a limited amount of unused operating funds into the next fiscal year, thereby enhancing financial flexibility in the management of government programs. Upon approval by Parliament, the incremental funding in the central Vote for Operating Budget Carry Forward will be allocated among departments.

National Defence $164.7 million

Funding for the definition phase of the Arctic/Offshore Patrol Ship and implementation of the Arctic/Offshore Patrol Ship infrastructure projects

The Department of National Defence will build 6 to 8 ships that can operate in newly formed ice at a total cost of up to $3.1 billion. This year's funding will address the definition phase and infrastructure implementation. The definition phase includes ship design and production engineering, and infrastructure implementation including upgrades at the Canadian Forces Base Esquimalt, the Canadian Forces Base Halifax and the establishment of an Arctic berthing and refuelling facility in Nanisivik, Nunavut.

Office of Infrastructure of Canada $132.4 million

Funding to meet the government's commitments to the Gas Tax Fund to support environmentally sustainable municipal infrastructure projects that contribute to cleaner air, cleaner water and reduced greenhouse gas emissions

The Gas Tax Fund provides predictable and long-term funding in support of environmentally sustainable municipal infrastructure, such as: public transit; drinking water; wastewater infrastructure; green energy; solid waste management; local roads and bridges.

Foreign Affairs, Trade and Development $120.0 million

Funding to allow for a quick response to major international disasters and crises

This funding will allow the Government of Canada to respond quickly to major unforeseen international crises such as natural disasters, humanitarian crises, and conflicts. The Department of Foreign Affairs, Trade and Development coordinates the whole-of-government response to catastrophic events and provides financial support for a range of food and non-food humanitarian assistance activities that respond to the immediate needs of individuals and communities in crisis.

VIA Rail Canada Inc. $97.9 million

Funding to address capital requirements (Budget 2013)

This funding will support the corporation's capital requirements in 2013–2014 for work related to bridge rehabilitation, signalling systems, equipment contracts, track improvements, station repairs and information technology projects. The investments will enhance the safety, efficiency and effectiveness of VIA Rail Canada Inc.'s operations.

Treasury Board Secretariat $94.1 million

Compensation adjustments – Transfers to departments and agencies for salary adjustments

Funding will be used to compensate departments, agencies and appropriation dependent Crown corporations for the impact of collective bargaining agreements and other related adjustments to terms and conditions of service or employment. The costs result from agreements signed between April 1 and July 31, 2013.

Foreign Affairs, Trade and Development $90.0 million

Funding for humanitarian assistance in response to the Syrian crisis

This funding will support experienced humanitarian organizations operating in Syria and in refugee-hosting countries including United Nations agencies, the International Red Cross Red Crescent Movement and non-governmental organizations. Canada's support will be used by these organizations to provide life-saving humanitarian assistance including food, clean water and sanitation, emergency health care, shelter, and protection for populations affected by the Syrian crisis.

Foreign Affairs, Trade and Development $85.8 million

Funding for the Global Peace and Security Fund and the Stabilization and Reconstruction Task Force

The Global Peace and Security Fund (the Fund) and the Stabilization and Reconstruction Task Force provides funding for international assistance programming in fragile and conflict-affected states. Initiatives funded through the Fund include deployment of Canadian police and civilian experts, projects aimed at ensuring stability and security and advancing democracy in regions and countries such as the Middle East, Africa, Afghanistan, Burma, Mali and various countries in Latin America. The current funding level for the program is $133.0 million. The department is requesting $85.8 million of this amount through Supplementary Estimates (B). Any further requirements will be sought through Supplementary Estimates (C) or funded from existing reference levels.

Indian Affairs and Northern Development $60.1 million

Funding for out-of-court settlements

These funds will be directed towards concluding and executing four settlement agreements with First Nation parties. Together, these settlements reflect Canada's ongoing commitment to resolving outstanding grievances with First Nations through negotiation, rather than litigation, where possible.

Changes to the structure of Government reflected in these Supplementary Estimates

Pursuant to the Public Service Rearrangement and Transfer of Duties Act, the Government announced the following changes which are displayed in these Supplementary Estimates:

Order in Council P.C. 2013-0341 transfers to the Public Health Agency of Canada the control and supervision of the portion of the federal public administration in the Department of Health known as the Travelling Public Program Unit, effective April 1, 2013.

Order in Council P.C. 2013-0343 transfers (1) to the Minister of Health certain powers, duties and functions of the Minister of Agriculture and Agri-Food set out in section 160 of the Health of Animals Regulations; and (2) from the Canadian Food Inspection Agency to the Public Health Agency of Canada the control and supervision of that portion of the federal public administration known as the Domestic Terrestrial Animal Pathogen Unit, effective April 1, 2013.

Order in Council P.C. 2013-0540 transfers the control and supervision of certain portions of the federal public administration in Passport Canada from the Department of Foreign Affairs and International Trade to the Department of Citizenship and Immigration and to the Department of Human Resources and Skills Development, effective July 2, 2013.

Order in Council P.C. 2013-0639 transfers from the Department of Industry the control and supervision of that portion of the federal public administration in the Department of Industry known as Canada Business Ontario, effective June 6, 2013.

Pursuant to a decision by "The Executive" to position the Office of Infrastructure of Canada in a separate Infrastructure, Communities and Intergovernmental Affairs portfolio, Order in Council P.C. 2013-0869 transfers to the President of the Queen's Privy Council for Canada the control and supervision of the portion of the federal public administration known as the Office of Infrastructure of Canada, effective July 15, 2013.

Order in Council P.C. 2013-1052 transfers from the Minister of Agriculture and Agri-Food to the Minister of Health, all of the powers, duties and functions under the Canadian Food Inspection Agency Act, except the powers, duties or function under subsection 4(2) of that Act, effective October 7, 2013.

The Economic Action Plan 2013 Act, No 1 states that the Department of Foreign Affairs and International Trade will continue its operations under the Department of Foreign Affairs, Trade and Development and that the Canadian International Development Agency is amalgamated with Foreign Affairs, Trade and Development, effective June 26, 2013.

Changes to voted and statutory authorities included in these Supplementary Estimates:

Changes to authorities sought through these Supplementary Estimates include Votes and Statutory items that contain specific authorities that differ from those included in the 2013–14 Main Estimates and Supplementary Estimates (A), 2013–14, as well as new expenditure authorities. Vote wording of new vote authorities are indicated in the table called "Annex – Items for inclusion in the Proposed Schedules to the Appropriation Bill" found at the end of this publication. Consistent with a 1981 ruling by the Speaker of the House of Commons, the Government has made a commitment that the only legislation that will be enacted through the Estimates process, other than cases specifically authorized by Statute, will be the amendment to previous Appropriation Acts.

New vote authorities sought by:

• Citizenship and Immigration – Department ( Vote 7b)
• Finance – Department (Vote 7b)
• Foreign Affairs, Trade and Development – Department (Vote L19b)
• Health – Canadian Food Inspection Agency (Votes 11b and 13b)
• Infrastructure, Communities and Intergovernmental Affairs – Office of Infrastructure of Canada (Vote 5b)
  

The following vote wording (underscore) has been amended since Supplementary Estimates (A), 2013–14:

• Canadian Heritage – Department
  • Vote 1b – Operating expenditures […] the Canadian Audio-visual Certification Office and the Capital Experience Program […]
• Canadian Heritage – Canadian Radio-television and Telecommunications Commission
  • Vote 50b – Program expenditures […] Broadcasting Licence Fee Regulations, 1997, Unsolicited Telecommunications Fees Regulations, and […]
• Industry – Natural Sciences and Engineering Research Council
  • Vote 75b – Operating expenditures and, pursuant to paragraph 29.1(a) of the Financial Administration Act, authority to expend revenues received during a fiscal year, to offset expenditures incurred in the fiscal year, arising from the provision of internal support services to other organizations
• Industry – Social Sciences and Humanities Research Council
  • Vote 90b – Operating expenditures and, pursuant to paragraph 29.1(2)(a) of the Financial Administration Act, authority to expend revenues received, during the fiscal year, to offset expenditures incurred in the fiscal year, arising from the provision of internal support services to other organizations – To authorize [...]

New statutory authorities included in these Supplementary Estimates are:

• Atlantic Canada Opportunities Agency
  • Minister of State (Atlantic Canada Opportunities Agency) – Motor Car allowance
• Citizenship and Immigration
  • Passeport Canada Revolving Fund (Revolving Fund Act (R.S.C., 1985, c. R-8))
• Finance
  • Additional Fiscal Equalization Payment – Total Transfer Protection (Part I – Federal-Provincial Fiscal Arrangements Act)
  • Incentive for provinces to eliminate taxes on capital (Part IV – Federal-Provincial Fiscal Arrangements Act)
  • Canadian Securities Regulation Regime Transition Office (Canadian Securities Regulation Regime Transition Office Act)
• Foreign Affairs, Trade and Development
  • Advance Market Commitment for Pneumococcal Vaccines
• Health
  • Spending of revenues from other departments for which the Minister is responsible, pursuant to subsection 4.2(4) of the Department of Health Act
• Human Resources and Skills Development
  • Payment to the Canadian National Institute for the Blind for a national digital hub to improve library services for persons with a print disability (Budget 2013)
  • Minister of State (Social Development) – Motor car allowance
• Indian Affairs and Northern Development
  • Contributions to Indspire (Budget 2013)
• Industry
  • Canadian Youth Business Foundation
• Public Health Agency of Canada
  • Spending of revenues from other departments for which the Minister is responsible, pursuant to subsection 4.2(4) of the Department of Health Act
• Treasury Board Secretariat
  • Employer contributions made under the Public Service Superannuation Act and other retirement acts and the Employment Insurance Act

The following statutory wording (underscore) has been amended since Supplementary Estimates (A), 2013–14:

• Canadian Nuclear Safety Commission
  • Expenditures pursuant to paragraph 21(3) of the Nuclear Safety and Control Act
• Environment
  • Minister of the Environment, Minister of the Canadian Northern Economic Development Agency and Minister for the Arctic Council – Salary and motor car allowance
• Health
  • Minister of Health – Salary and motor car allowance
• Human Resources and Skills Development
  • Minister of Employment and Social Development and Minister for Multiculturalism – Salary and motor car allowance
• Industry
  • Minister of State (Science and Technology, and Federal Economic Development Initiative for Northern Ontario) – Motor car allowance
  • Minister of State (Small Business and Tourism, and Agriculture) – Motor car allowance
• National Defence
  • Associate Minister of National Defence – Salary and motor car allowance

Estimates by Organization

135 organizations are represented in the 2013–14 Estimates. Of these, 62 organizations have identified additional requirements as part of these Supplementary Estimates.

Horizontal Items

A horizontal initiative is an initiative in which partners from two or more organizations have established a formal funding agreement (e.g. Memorandum to Cabinet, Treasury Board submission, federal-provincial agreement) to work toward the achievement of shared outcomes. This table provides a summary of those items for which funding is sought in Supplementary Estimates. It also provides an overview of initiatives related to Supplementary Estimates in then current fiscal year where two or more organizations are seeking incremental funding increases.

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