Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) tabled the reply to Question No. 66, dated November 23, 2021, appearing on the Order Paper and Notice Paper in the name of the Honourable Senator Plett, regarding Canada’s military justice system.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) moved third reading of Bill C-51, An Act to give effect to the self-government treaty recognizing the Whitecap Dakota Nation / Wapaha Ska Dakota Oyate and to make consequential amendments to other Acts.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) tabled the reply to Question No. 33, dated November 23, 2021, appearing on the Order Paper and Notice Paper in the name of the Honourable Senator Plett, regarding the Canada Revenue Agency.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) tabled the reply to Question No. 159, dated May 5, 2022, appearing on the Order Paper and Notice Paper in the name of the Honourable Senator Plett, regarding the answers provided by the Department of National Defence to Order Paper question No. 15 during the 1st session of the 44th Parliament.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) tabled the reply to Question No. 207, dated February 2, 2023, appearing on the Order Paper and Notice Paper in the name of the Honourable Senator Plett, regarding the Newfoundland-Labrador fixed transportation link.

[Translation]

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) moved third reading of Bill C-51, An Act to give effect to the self‑government treaty recognizing the Whitecap Dakota Nation / Wapaha Ska Dakota Oyate and to make consequential amendments to other Acts.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Fifteen minutes.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) moved second reading of Bill C-54, An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2024.

She said: Honourable senators, I rise today to introduce appropriation act no. 2, 2023-24.

Like other appropriation bills we receive on a regular basis, this legislation is a vehicle through which payments from the Consolidated Revenue Fund are authorized for government programs and services.

As you will recall, we adopted the last appropriation bill, Bill C-44, in March. That was an interim supply bill with the funding that departments and agencies needed to conduct their business from April to June. Bill C-44 provided for ongoing operations while the Main Estimates were under review.

The bill I’m introducing today is the full supply bill, which details the remaining funds to be released for this fiscal year. These amounts are based on the Main Estimates 2023-24, which were tabled in the House of Commons by the President of the Treasury Board on February 15.

To be clear, the dollar amounts in this bill are ceilings — or estimates — meaning spending levels may turn out to be lower. Actual expenditures will be reported in the public accounts after the end of the fiscal year.

The Main Estimates present information on approximately $433 billion in planned budgetary spending for 129 organizations to deliver programs and services to Canadians. This includes $198 billion in voted expenditures and approximately $235 billion in statutory spending, already authorized through existing legislation.

Most expenditures in the Main Estimates are transfer payments made to other levels of government, organizations and individuals. Transfer payments make up approximately 60% of the Main Estimates, or just over $261 billion. These transfer payments make concrete impacts on the lives of Canadians in all sectors of society, as well as on people outside Canada.

As pointed out in the Parliamentary Budget Officer’s report on the Main Estimates, about $1 in every $6 in planned spending is for elderly benefits. In the coming years, elderly benefits are expected to grow by an average of 7% annually.

Also, a number of temporary programs resulting in transfer payments to individuals are now closed. These include COVID‑related supports to Canadians such as the Canada Emergency Response Benefit, the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, the Canada Recovery Caregiving Benefit and the Canada Worker Lockdown Benefit.

Turning to transfer payments to other levels of government, the Government of Canada provides significant financial support to provincial and territorial governments on an ongoing basis to assist them in the provision of programs and services. Major transfers to other levels of government are expected to increase over the forecast horizon, largely due to expected nominal GDP growth.

The Canada Health Transfer and the Canada Social Transfer are federal transfers which support specific policy areas, such as health care, post-secondary education, social assistance and social services, early childhood development and child care.

The Canada Health Transfer grows in line with a three-year moving average of nominal GDP growth, with funding guaranteed to increase by at least 3% per year. In 2023-24, the Canada Health Transfer is forecast to provide $49.3 billion in support, which is an increase of 9.1% over 2022-23. Of note, this amount does not include enhancements announced in February, which will appear in future estimates. The Canada Social Transfer is legislated to grow at 3% per year.

The Equalization Program and the Territorial Formula Financing provide unconditional transfers to the provinces and territories. They are expected to grow by 9%. Equalization enables less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces at comparable levels of taxation. The Territorial Formula Financing program provides territorial governments with funding to support public services in recognition of the higher costs of providing programs and services in the North.

Colleagues, that is a detailed look at transfer payments, which, as I said earlier, make up the majority of the spending in the Main Estimates. These Main Estimates also seek funding for the continuation of previously approved programs and services, as well as investments in Indigenous communities, national defence, the environment and skills development.

Of the 129 organizations presenting funding requirements in these estimates, 10 are seeking between $5 billion and $40 billion in voted budgetary expenditures. These include the Department of Indigenous Services; the Department of National Defence; the Department of Employment and Social Development; the Department of Crown-Indigenous Relations and Northern Affairs; the Treasury Board Secretariat; the Office of Infrastructure of Canada; the Department of Foreign Affairs, Trade and Development; the Department of Veterans Affairs; the Department of Industry; and the Canada Mortgage and Housing Corporation. While time precludes me from speaking to each of these departments in detail, I would like to highlight two of them: the Department of Indigenous Services and the Department of Crown-Indigenous Relations and Northern Affairs.

These Main Estimates include funding aimed at advancing reconciliation and self-determination of Indigenous peoples and positively impacting the quality of life of Indigenous communities. For 2023-24, in partnership with Indigenous peoples, Indigenous Services Canada, or ISC, will focus on advancing eight departmental results or objectives.

The first and second departmental results are the physical and mental wellness of Indigenous people. The third is that Indigenous peoples have access to quality federally funded health services. Examples of funding in this area include community‑based funding for public health promotion and disease prevention, the Non-Insured Health Benefits program and mental health wellness initiatives, as well as Jordan’s Principle and the Inuit Child First Initiative.

The fourth objective is that Indigenous peoples be culturally safe and socially well. In support of this goal, Indigenous Services Canada provides funding to programs such as community safety and violence prevention services, child and family services and income support programs. Initiatives in this area include immediate and long-term reform to child and family services on reserves and in the Yukon, as well as ongoing implementation of An Act Respecting First Nations, Inuit and Métis children, youth and families, the former Bill C-92.

The department’s fifth objective is to ensure that Indigenous students are progressing in their education. ISC is working with First Nations partners to transform elementary and secondary education programming for First Nations students to support education that respects First Nations’ methods of teaching and learning. Also, ISC will continue to implement co-developed distinctions-based post-secondary education strategies for eligible First Nations, Inuit and Métis students.

The sixth objective is for Indigenous communities to have sustainable land management and infrastructure. This includes supporting First Nation on-reserve communities in their efforts to have reliable and sustainable infrastructure such as safe drinking water, housing and educational facilities. It also includes land management and land use planning, environmental reviews and addressing concerns associated with waste management and contaminated sites, as well as emergency management.

The seventh objective is ensuring that Indigenous communities are progressing in the realms of business and economic growth. ISC’s economic development funding respects the right of self‑determination by Indigenous partners and uses a distinctions‑based approach.

The eighth objective is to ensure that Indigenous communities have governance capacity and support for self-determination. This includes investing in First Nations-led processes to transition away from the Indian Act.

Colleagues, I would now like to turn to the funding sought for the work of the Department of Crown-Indigenous Relations and Northern Affairs. As set out in its 2023-24 Departmental Plan, Crown-Indigenous Relations and Northern Affairs Canada will focus on seven results: first, that past injustices be recognized and resolved; second, that Indigenous peoples advance institutional structures and governance; third, that Indigenous peoples determine our own political, economic, social and cultural development; fourth, that Indigenous peoples strengthen socio-economic conditions and well-being; fifth, that northerners and Indigenous peoples make progress in the areas of political, economic and social governance; sixth, enhancing the resilience of Northern and Indigenous communities in the face of changing environmental conditions; and, seventh, that Northern lands, waters and natural resources be sustainably managed.

We’ve had a chance to delve more deeply into these topics at the Indigenous Peoples Committee, including during our studies of Bill C-29 and Bill C-45. I’m glad the government is committed to making progress in these areas, and I know we in this chamber share that commitment.

Senators, allow me to also highlight three organizations with the largest increases in voted expenditures compared to last year’s Main Estimates. First is the Department of Finance with an $18.3-billion increase. This includes a $4.2-billion increase in the Canada Health Transfer, reflecting the 9.3% GDP-based escalator being applied to the 2022-23 level, and a $2-billion increase in fiscal equalization, also reflecting the 9.3% GDP‑based escalator.

The second department with a significant increase is the Department of Employment and Social Development, which is seeking $6.7 billion more than last year. This amount reflects an increase in one area and a decrease in another. The amount for the Old Age Security pension, or OAS, and the Guaranteed Income Supplement, or GIS, would grow by $8.2 billion. This is due partly to an expected increase in the number of pensioners and partly to an expected increase in the average monthly payments, resulting mainly from the indexation of benefits and the 10% increase to the OAS pension for seniors aged 75 years and over, in effect since July 2022.

At the same time, there would be a $1.3-billion decrease to the Canada Student Financial Assistance Program and Canada Apprentice Loans, mainly due to the end of the temporary COVID-19 measures.

The third-largest increase in the year-over-year funding is sought by the Department of Crown-Indigenous Relations and Northern Affairs, which is seeking $3.3 billion more than last year, mainly because of settlement agreements.

Senators, I know this can be a bit dense, and the time allotted to me isn’t enough to get into much detail about any of this, but the government continues to prioritize the way these estimates are presented with extensive explanatory documentation readily accessible online to parliamentarians and Canadians alike.

I encourage senators who have not already done so to consult GC InfoBase, an interactive online tool that presents a wealth of federal data in a visual way. It contains the Main Estimates, along with other data related to government finances and results and the federal public service.

Publishing expenditure data sets using this kind of digital tool makes it easier for parliamentarians and all Canadians to understand how public funds are being spent and what they’re achieving. To this end, the estimates support Parliament’s review of proposed new government spending and the ensuing appropriation bills — like this one — which grant spending authorities upon Royal Assent.

Every year, the Main Estimates and related documents outline how the government proposes to allocate public funds and help ensure that spending is transparent and accountable. These documents in the estimates cycle include the Main Estimates, the supplementary estimates, the Departmental Plans and the Departmental Results Reports, all of which, in conjunction with the Public Accounts of Canada, help parliamentarians scrutinize government spending.

In conclusion, honourable senators, the bill I have the honour of introducing today is a central part of the estimates cycle, and, substantively, it is key to delivering on the government’s commitments to Canadians.

I extend my thanks to the members of the Standing Senate Committee on National Finance for their important work, and I thank all of you for your ongoing involvement in our chamber’s role of analyzing both how the government spends money and what Canadians get out of it. Hiy hiy.

Hon. Elizabeth Marshall: Thank you, Senator LaBoucane-Benson, for your comments on Bill C-54, and welcome to the club.

As the critic of the bill, I also have comments, and the first thing I want to mention is that what we’re being asked to approve today is authority for the government to spend $108.7 billion. I’m not going to be brief because I’m going to go through a lot of the work that the committee did.

Bill C-54, which is supported by the 2023-24 Main Estimates, is requesting $108.7 billion. Honourable senators may recall that Bill C-44, which received Royal Assent on March 30, provided the government with $89 billion in Interim Estimates until these Main Estimates are approved. The $108 billion in this bill, along with the $89 billion approved in Interim Estimates, reflect the $198 billion outlined in the Main Estimates. The Main Estimates, which support this bill, were tabled before the budget was tabled, and as a result, the Main Estimates in this bill do not include any new budget initiatives for this year. I can assure you the government is going to spend the full $108.7 billion, and they’re going to come back for more.

However, it is important to realize that this is just a portion of the government’s spending for this year. In addition to this $198 billion, there is also estimated statutory spending of another $235 billion, as well as Employment Insurance benefits of $24 billion and the Canada child benefit in the amount of $26 billion.

In summary, while the Main Estimates provide some details on the $198 billion, the document also discloses that actual expenditures this year are projected to be $487 billion. With the release of Budget 2023, the government now projects total expenses for this year to be $490 billion.

The $109 billion in this bill is being requested by 130 government departments and organizations. Two of the organizations requesting funding — the Law Commission of Canada and the Federal Bridge Corporation Limited — did not receive any funding last year. A third organization, the VIA HFR-TGF Inc., was incorporated as a subsidiary of Via Rail Canada Inc. in November of last year to manage the development of the new High Frequency Rail project.

Of the 29 organizations requesting increases of at least 10% compared to the amount they requested in last year’s Main Estimates, these increases amount to over $3 billion for 7 of those organizations. These seven organizations are Crown‑Indigenous Relations and Northern Affairs Canada; Transport Canada; Immigration, Refugees and Citizenship Canada; Natural Resources Canada; Canada Mortgage and Housing Corporation; Treasury Board Secretariat; and Canada Revenue Agency.

Crown-Indigenous Relations and Northern Affairs Canada is requesting an additional $3.3 billion from $5.8 billion last year to $9.1 billion this year. Out of the increase of $3.3 billion, $2.9 billion is for the Gottfriedson Band class settlement agreement. This is a trust fund established to help revitalize Indigenous language, culture and heritage lost during the residential school years. It is to be operated independently of the federal government, and it will be governed by a board of nine Indigenous directors, one of whom is to be chosen by the federal government. Also included in the $3.3 billion increase is $475 million to implement comprehensive land claims and self‑government agreements and other agreements to address the rights of section 35 of the Constitution Act, 1982.

Given the extent of funding requested by the department for the settlement of claims, agreements and treaties, departmental officials informed us that the department maintains a database to track these claims. In terms of specific claims alone, officials estimate there are over 500 of these claims. This makes it difficult for parliamentarians to track the progress of these claims, and officials committed to providing the 20 major outstanding claims and settlements to assist us in our work.

Officials from Crown-Indigenous Relations and Northern Affairs Canada told us that one of their targets this year is to conclude 35 specific claim settlements, so this should help parliamentarians in tracking claims.

Indigenous Services Canada is requesting $39 billion, which is comparable to the $39 billion in last year’s Main Estimates. The main item in each year is the approximate $20 billion budgeted for compensation to an estimated 300,000 Indigenous children and families. The origins of this settlement began in 2016 when the Canadian Human Rights Tribunal concluded that the federal government had discriminated against First Nations children for years by not properly funding child welfare services on reserves.

The recent agreement between the federal government, the Assembly of First Nations and the First Nations Child & Family Caring Society will deliver $23.3 billion to an estimated 300,000 Indigenous children and families.

Departmental officials testified that the amount included in Main Estimates is slightly more than the $20 billion originally requested. Officials indicated that an additional $981 million has been requested in these Main Estimates. However, the other $2.3 billion has yet to be identified in the government’s fiscal framework.

Our National Finance Committee was interested in the departmental results for both Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada and how the “deliverology” method and results reporting have evolved over the past eight years. Witnesses from both departments told the committee that they had been refining their Departmental Results Reports and specifically their performance indicators in partnership with Indigenous First Nations. Officials from Indigenous Services Canada informed us that they have introduced a new results framework in their 2023-24 Departmental Plan. There is still work to be done in terms of outcome performance measures, and they are working with Indigenous organizations to establish those performance indicators.

Officials from Crown-Indigenous Relations and Northern Affairs Canada indicated that their departmental results framework has also changed quite significantly over the years, and they are working in partnership with Indigenous First Nations to develop meaningful goals.

For the most recent departmental results for 2021-22, Indigenous Services Canada met just 14 of their 79 performance indicators, or just over 17%. Crown-Indigenous Relations and Northern Affairs Canada met 17 of their 39 performance indicators, or just over 43%.

Departments and agencies, on average, met just over 49% of their performance indicators, so both departments are just below the average. We will be following up on their progress to determine the changes they are making to their performance indicators and the extent of their progress.

Each year, the Parliamentary Budget Officer issues numerous reports including one on the Main Estimates and one each on Supplementary Estimates (A), (B) and (C). In addition, he appears at the Senate National Finance Committee to discuss each of his reports and respond to questions.

This year, the Parliamentary Budget Officer released his report on the 2023-24 Main Estimates on March 3 and testified before the Senate National Finance Committee on April 18. His report on the Main Estimates emphasizes the spending allocated to elderly benefits, health care and professional and special services. He indicated that 1 in every $6 will be spent on elderly benefits and 1 in every $9 will be spent on health care. Professional and special services are estimated at $20 billion and has increased significantly over the last number of years.

Federal spending on elderly benefits is the single largest area of government spending, which is comprised of Old Age Security, the Guaranteed Income Supplement and Allowance payments. Elderly payments are expected to increase to $76.6 billion this year, an increase of 11%, after being impacted by a larger number of seniors, inflation to which benefits are indexed and policy decisions which have increased benefits, such as the 10% top-up for those 75 years and older, estimated to cost $2.6 billion in this fiscal year and which was approved in Budget 2021.

The Canada Health Transfer — or CHT, as we call it — is the largest single transfer to provinces and territories and is used to pay for health care. In February of this year, the government announced a new agreement to provide additional monies for health care, including $2 billion to address urgent pressures in emergency rooms, operating rooms and pediatric hospitals. This $2 billion was included in the budget.

In addition, the government committed to increasing the CHT by 5% each year over the next five years rather than the original 3%. The Main Estimates of the Department of Finance discloses $49.4 billion for the Canada Health Transfer. However, Budget 2023, released subsequently to the Main Estimates, indicates that funding for the CHT this year will be just over $55 billion.

The Main Estimates also includes $19.5 billion for professional and special services, the majority of which is spent by the Department of National Defence; Public Services and Procurement Canada; Public Safety Canada; Indigenous Services Canada; and Immigration, Refugees and Citizenship Canada. This $19.5 billion is about $2.2 billion more than the amount in last year’s Main Estimates.

Budget 2023, released after the Main Estimates, committed to reducing spending on consulting, professional services and travel by $500 million in this year and $6.6 billion over the following four years.

During testimony on April 18, the Parliamentary Budget Officer discussed these and other items, including the benefits of a long-term human resources plan, since the number of public service employees and their related costs have increased significantly in recent years. The Parliamentary Budget Officer said that a long-term human resources plan could help the government ensure that it has the right skill set in its public service and has the capacity to deliver on its policy priorities, rather than what we have seen recently — increasing the numbers of public servants and increasing the use of consultants and outside services, but still, in some instances, failing to deliver on the services that Canadians expect.

According to the Departmental Results Reports for the past four years, less than 50% of targets are met each year. These reports, along with the Departmental Plans, are intended to assist parliamentarians in their review of the government’s proposed spending plan. However, given the low numbers of targets being met, the usefulness of the data is questionable.

The government’s Results and Delivery program and their “deliverology” program were implemented in 2016, with the appointment of Mr. Matthew Mendelsohn as the Deputy Secretary to the Cabinet in the Privy Council Office, responsible for the Results and Delivery Unit.

The Results and Delivery Unit tracked ministerial mandate letter commitments, as well as performance indicators established by each department and organization. The unit was responsible for assisting departments in determining the objectives of policies and programs and how they would be evaluated. In other words, the Results and Delivery Unit was to help government departments and agencies to systematically and consistently focus on delivery and results.

Mr. Mendelsohn left the government in 2020, and subsequent organizational charts show the Results and Delivery Unit being pushed further and further down in the organizational chart of the Privy Council Office.

The Department of National Defence is requesting $24.7 billion compared to the $24.2 billion requested in the Main Estimates last year. Some senators, as well as some Canadians, were expecting the Main Estimates of the department to include a larger or much larger increase in funding. Of particular interest was Canada’s level of defence spending compared to other NATO countries. I spoke on this issue in March.

Canada has been a member of NATO, the North Atlantic Treaty Organization, since 1949. In 2006, NATO members agreed with the goal of setting their annual defence spending to at least 2% of GDP. Since making this commitment, Canada has never achieved this goal. The world has changed in the past few years. The war in Ukraine as well as Canada’s changing relationships with China and Russia have led to a shifting in priorities.

Many Canadians and some parliamentarians are concerned about the level of funding provided to the military, especially given problems such as the chronic recruitment issues that have left the Canadian Armed Forces short by 10,000 personnel; our minuscule and antiquated submarine fleet; Canada’s exclusion from the recent tripartite military pact in which three of our biggest allies — the U.S., the U.K. and Australia — will work together to respond to China’s growing aggression in the Indo-Pacific; and Canada’s inability to procure armaments and equipment in a timely manner. Especially concerning is Ottawa’s refusal to meet its NATO obligation to spend 2% of its GDP on defence.

VIA Rail is requesting $1.2 billion in Main Estimates, and its wholly owned subsidiary is requesting $43 million. The subsidiary was incorporated under the Canada Business Corporations Act in November 2022 as a wholly owned subsidiary of VIA Rail Canada Inc. Because it was incorporated under the Canada Business Corporations Act and not under its own legislation, it does not receive the same parliamentary oversight. Information on the structure of the corporation, its mandate, its governance structure, its relationship with its parent company and its reporting requirements is not readily available to parliamentarians and Canadians.

Officials from the subsidiary testified at our Senate Finance Committee, along with VIA Rail, its parent company, and provided some additional information. For example, information that is publicly available, including information on the subsidiary’s website, disclosed three directors. However, we were told at committee by witnesses that there will be seven directors.

Innovation, Science and Economic Development Canada is requesting parliamentary approval to spend $5.6 billion. Of this sum, $5 billion will be disbursed as grants and contributions for a number of programs, such as the Strategic Innovation Fund, the Universal Broadband Fund, the Canada Foundation for Innovation and the Global Innovation Clusters.

Some senators were interested in the recent $13-billion announcement for the Volkswagen battery plant in Ontario, but witnesses were unable — or unwilling — to answer questions on this item. Of particular interest was whether there was any funding for the Volkswagen battery plant included in the Main Estimates. A sum of $13 billion is a significant outlay of public funds, and the question is whether this expenditure has been included in the government’s financial projections. Given that the government projects its fiscal requirements over a five-year time frame, the question arises as to whether this $13 billion is included in the government’s financial requirements and financial projections. You may recall that I asked Senator Gold that question a couple of days ago in the Senate.

Officials were also unable to answer questions regarding the impact that the department’s innovation funding, through its various programs, is having on innovation within Canada. Given that the government just established the Canada Growth Fund, approving $15 billion this year, as well as the Canada innovation corporation, approving $3 billion over the next four years, how does the government know these new corporations will increase growth and innovation if it does not know the impact of existing billion-dollar programs?

The Canada Revenue Agency is requesting $4.5 billion, which is a $400 million increase when compared to last year’s Main Estimates. Departmental officials informed us that $224 million of the $400-million increase is associated with funding to combat tax avoidance and tax evasion and primarily for initiatives announced in Budget 2022. The funding will be used to expand the audits of larger entities and non-residents engaged in aggressive tax planning. It will also be used to increase the investigation and prosecution of those engaged in criminal tax evasion.

Agency officials told us that there are many challenges in addressing tax evasion and aggressive tax avoidance. They said schemes and structures are becoming more complex, and taxpayers are becoming more litigious, making greater access to the courts to delay access to information and evidence.

Several senators were interested in the agency’s work in measuring and reporting on the tax gap. The tax gap measures the potential tax revenue loss resulting from tax non-compliance. Officials informed our committee that they have not measured the tax gap beyond the year 2018, and for that year, the tax gap was estimated to be between $35 billion and $40 billion. This is a substantial amount of money, and even if the government could collect a fraction of this amount, it would have a significant impact on the deficit.

While the agency says it is addressing issues such as the tax gap, overseas accounts, tax evasion, tax avoidance and the underground economy, there is frustration with regard to the activities of the agency, as well as the lack of reporting information. While the agency’s website provides some information on the tax gap and the Panama, Paradise and Pandora Papers, it is not included in the annual report. It is not current. It is difficult to find on the agency’s website. It does not convey the impression that all taxpayers are being treated equally and fairly.

Canadians, parliamentarians and even the Canada Revenue Agency would be better served if current information was more easily available or disclosed in their annual report.

As colleagues are aware, Senator Downe’s Bill S-258 was referred to our National Finance Committee. The bill will require the agency to list all convictions for tax evasion, including international tax evasion, in the agency’s annual report to the Minister of National Revenue. The bill will also require the agency once every three years to include statistics on the tax gap in the agency’s annual report.

Finally, Bill S-258 will also require the minister to provide the Parliamentary Budget Officer with data to conduct a further analysis of the tax gap.

I support Senator Downe’s Bill S-258.

Veterans Affairs Canada is requesting $5.9 billion compared to $5.5 billion requested last year, an increase of 8%. Over 90% of the funding of the department is used to pay benefits to veterans. Most of the increase this year will be used to pay for an increase in funding to veterans.

Specifically, $338 million of the increase will be used to compensate veterans for pain and suffering. Another $120 million of the increase will be used to pay the Income Replacement Benefit.

Since the department provides services and benefits that respond to the needs of veterans and their families, these programs are open-ended and the cost depends on the number of veterans accessing benefits, as well as the cost-of-living increases which are based on Statistics Canada’s Consumer Price Index.

One of the major issues facing Veterans Affairs Canada is the length of time it takes the department to process veterans’ applications for benefits. The department’s service standard is to process a veteran’s application within a 16-week time frame. Last year, officials told us there was a backlog of applications, that is, those exceeding the 16-week processing time frame.

Of the 30,000 applications in the queue last year, 11,500 exceeded the 16-week time frame. At that time, the department had said they were committed to reducing the backlog to 5,000 applications as of March 31, 2023. During testimony this year, officials told us that they had made some progress. While they had not met their original target, they have reduced their backlog to 6,800 cases.

Employment and Social Development Canada is requesting $11.1 billion compared to the $11.4 billion requested in last year’s Main Estimates. In addition to the $11.1 billion requested in this bill, the department already has the authority under other legislation to spend $83 billion for a number of other programs, including $58 billion for Old Age Security payments and $17.7 billion for the Guaranteed Income Supplement.

Also included in this bill is $6.1 billion for payments to the provinces and territories under the Early Learning and Child Care program, which was announced in Budget 2021 at a cost of $30 billion over the next five years. Payments to each of the provinces and territories over each of the five years is disclosed in Volume 1 of the Public Accounts of Canada 2022.

The objectives of the program were outlined in Budget 2021 when it was announced. The mandate letter of the Minister of Families, Children and Social Development requires the minister to implement the objectives of this $30 billion program. In addition, the government’s results and delivery policy requires the government’s Open Government website to track mandate letter commitments. Two of these commitments include the creation of 250,000 new high-quality child care spaces, plus the hiring of 40,000 more early childhood educators by March 2026. Although billions of dollars are being disbursed by the government, these commitments are not being disclosed on the government’s website as required by government policy.

During meetings, departmental officials told us that as of February of this year, over 50,000 new child care spaces have been created. They said this has been determined by conversations with the provinces and territories. However, there is no information on the federal government’s website, as required by policy.

Rather, officials told us that public disclosure is the responsibility of the provinces and territories. However, since the government is providing $30 billion for this program, and has established objectives which are measurable — for example, 250,000 new spaces and the 40,000 early childhood educators — progress should be reported in the department’s Departmental Results Reports.

Of concern is the child care crisis being experienced across Canada. From the West Coast, to the Prairies, through Central and Eastern Canada, all the way to my home province of Newfoundland and Labrador, I have read countless media articles lamenting the lack of child care spaces and the impossibility of hiring enough workers to staff daycares or to pay them adequately.

Competition for spaces is intense and inadequately remunerated workers are leaving. These issues should have been addressed before billions of dollars were promised for this policy, but since they weren’t, it is being experienced now. It should be addressed by the federal, provincial and territorial governments.

Media articles highlight these issues. Last week, the CBC posted an article about early child care workers in Ontario leaving the profession and the millions of dollars more that are needed. A month ago, Global News reported the Canadian Centre for Policy Alternatives report stated that Manitoba was a child care desert, and it is not alone; another CBC article says that Saskatchewan is a similar desert.

Provinces and territories are uneven in the way they present their statistics on child care spaces and positions created. It has been very difficult to compile the information ourselves, and we should not have to.

Employment and Social Development Canada should devote specific, up-to-date information that offers data on what has been accomplished across the country. That way, Canadians and parliamentarians can monitor the progress of the implementation of the new child care policy program.

I am encouraged that Bill C-35, An Act respecting early learning and child care in Canada, has received first reading in the Senate and hopefully will be referred to a Senate committee for study.

This concludes my comments on Bill C-54 and the Main Estimates for 2023-24. In closing, I extend my appreciation to my colleagues for their contribution to our study, and their support, including our chair, Senator Mockler, and our deputy chair, Senator Forest.

Thank you also to our committee clerk, our analysts and staff, who ensure our meetings are productive and run smoothly.

Thank you, senators, for your attention.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, with leave of the Senate and notwithstanding rule 5-5(b), I move that the bill be read the third time now.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate) moved second reading of Bill C-55, An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2024.

She said: Honourable senators, I’m pleased to rise again to introduce the appropriation act for the 2023-24 Supplementary Estimates (A).

While the Main Estimates provided an overview of spending requirements for the upcoming fiscal year, the supplementary estimates present information on additional spending requirements.

These additional spending requirements 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.

The Supplementary Estimates (A), 2023-24 are the first of three supplementary estimates planned for this fiscal year.

The government is requesting Parliament’s approval of the spending proposals that are detailed in the Supplementary Estimates (A) through the appropriation bill before us today.

Throughout each supply cycle, the appropriation bill acts as a vehicle authorizing payments from the Consolidated Revenue Fund for government programs and services.

When we approve the budget, that does not actually authorize the government to spend money. Rather, parliamentary authorization of government spending happens through the estimates and associated appropriation bills — like the one before us today.

As honourable senators are no doubt aware, the voted amounts in these supplementary estimates represent ceilings or estimates. It is not out of the ordinary if actual spending turns out to be lower.

Actual expenditures are published in quarterly financial reports, and the total 2023-24 expenditures will be listed in the public accounts, which are tabled after the end of the fiscal year.

As this chamber knows, the estimates are part of a series of documents comprised of the Main Estimates; supplementary estimates; Departmental Plans; Departmental Results Reports; and public accounts. These documents provide important information and help us, as parliamentarians, scrutinize government spending.

The Supplementary Estimates (A), 2023-24 present a total of $21.9 billion in incremental budgetary spending, which reflects $20.5 billion to be voted and a $1.4 billion increase in forecast statutory expenditures.

Before turning to the major voted items in detail, I would like to highlight changes to forecasts of statutory spending.

Statutory budgetary expenditures are forecast to rise $1.4 billion to a total of $236.2 billion.

These changes include a $790.3-million increase in payments for the AgriInsurance Program, which reflects the launch of the new five-year Sustainable Canadian Agricultural Partnership, as well as the cost of providing this critical insurance due to rising commodity prices and the increased program demand; a $568‑million decrease to Old Age Security payments based on updated forecasts of the average monthly rate, number of beneficiaries and benefit repayment amounts; and updated forecasts for interest costs and elderly benefits from Budget 2023.

Now I’ll discuss some of the major voted initiatives for which these supplementary estimates seek parliamentary approval.

Three of these initiatives stem from Budget 2023.

The first is $2.6 billion to the Department of Health to improve health care for Canadians. To help ensure Canadians receive the care they need, Budget 2023 proposed an investment of $198.3‑billion over the next 10 years to strengthen our public health care system.

Funding in this supply bill will be used for new bilateral agreements with the provinces and territories to address health system needs. Examples include expanding access to family health services, supporting health care workers, reducing backlogs, increasing mental health and substance use supports and modernizing our health care systems.

Funding will also be used to develop new health indicators, and improve coordination between different health care systems. It will also support the Territorial Health Investment Fund, which assists the territories with health care and medical travel costs.

The second funding request stemming from Budget 2023 is $469 million for the Department of Citizenship and Immigration to support the Interim Federal Health Program. This program provides temporary medical coverage to certain foreign nationals, such as asylum claimants and refugees, who are not yet eligible for provincial or territorial health insurance.

The third funding request stemming from the budget is $468.3 million for the Canadian Air Transport Security Authority. This is part of the $1.8 billion being invested over five years.

As air travel started bouncing back from the pandemic last year, Canadians faced flight delays, long lineups at airports and mishandled baggage.

While delays have been reduced, this funding will help further strengthen air passengers’ rights and improve Canadians’ experiences at airports.

I will now discuss the request for funding stemming from Budget 2022 for the Housing Accelerator Fund. The government’s goal is to incentivize cities and towns to have more housing built and, by increasing the supply of housing, to make it more affordable for Canadians.

Budget 2022 proposed to provide $4 billion over five years to the Canada Mortgage and Housing Corporation to launch the new Housing Accelerator Fund.

This fund provides incentive funding to local governments, encouraging initiatives aimed at removing barriers to development and increasing housing supply, as well as encouraging the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse.

Funding of $996.7 million for the Canada Mortgage and Housing Corporation is sought in this supply bill to support this initiative.

Another important funding request before us today is $464.4 million to the Department of Agriculture and Agri-Food to implement federal and cost-shared initiatives under the Sustainable Canadian Agricultural Partnership.

This is a new $3.5-billion, five-year agreement between the federal, provincial and territorial governments to strengthen the competitiveness, innovation and resiliency of the agriculture, agri-food and agri-based products sector.

The partnership includes $1 billion in federal programs and activities, and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments. The partnership provides strong support for science, research and innovation to address challenges, seize new opportunities, open new markets and strengthen the resiliency of the sector.

This supply bill also includes a request for $459.3 million for the RCMP to compensate members for injuries received in the performance of their duties. This compensation will be paid to members of the RCMP and their families in the event of disabilities or death that occur as a consequence of the members’ duties.

Colleagues, I will now address four funding requests in this bill related to reconciliation: One is for the Department of Indigenous Services; two are for the Department of Crown‑Indigenous Relations and Northern Affairs, and one applies to both departments as a horizontal item.

The first is $4.4 billion for the Department of Indigenous Services to support a final settlement agreement involving the First Nations Child and Family Services program and Jordan’s Principle. This settlement is an important part of Canada’s accountability toward First Nations children who were discriminated against or removed from their homes.

This funding will also be used for the continued delivery of immediate measures required by tribunal orders and items agreed to as part of the Agreement-in-Principle on Long-Term Reform of the First Nations Child and Family Services program and Jordan’s Principle.

The second reconciliation-related funding request is $2.5 billion for the Department of Crown-Indigenous Relations and Northern Affairs for the Specific Claims Settlement Fund. Specific claims settlements help to right past wrongs, renew relationships and advance reconciliation in a way that respects the rights of First Nations and all Canadians. Specific claims are grievances against the federal government that allege failures to fulfill historic treaty obligations or mismanagement of Indigenous lands and assets. Specific claims settlements and tribunal awards valued at up to $150 million are paid from the Specific Claims Settlement Fund. The amount sought through this bill would replenish the fund based on anticipated payments for negotiated settlements and tribunal awards.

The third funding request on this theme of reconciliation is $825 million for Crown-Indigenous Relations to fund out‑of‑court settlements. The federal government is engaged in active discussions related to various legal challenges. This funding will ensure that the department is in a position to quickly implement negotiated settlements should agreements be reached.

Finally, this bill seeks $4.1 billion for both departments — Crown-Indigenous Relations and Northern Affairs Canada, and Indigenous Services Canada — to implement the expedited resolution strategy for agricultural benefits claims related to Treaties 4, 5, 6 and 10. Essentially, when treaties were signed, one of the commitments Canada made was to support the development of agriculture on reserve lands. However, in many cases, colleagues, this commitment was not upheld. This funding is part of Canada paying these outstanding bills at long last.

In conclusion, honourable senators, in the time available, my remarks can only be high-level. However, I’ve tried to use these remarks to provide tangible examples of how the funding sought through this bill will affect Canadians’ lives in a positive way. This includes strengthening our health care system, making housing more available and affordable and advancing reconciliation with Indigenous peoples.

I hope you will join me in supporting this legislation. Thank you.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, with leave of the Senate and notwithstanding rule 5-5(k), I move:

That the sitting be suspended to await the announcement of Royal Assent, to reassemble at the call of the chair with a five-minute bell.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, with leave of the Senate and notwithstanding rule 5-13(2), I move:

That the Senate do now adjourn.

Hon. Patti LaBoucane-Benson (Legislative Deputy to the Government Representative in the Senate): Honourable senators, with leave of the Senate and notwithstanding rule 5-5(g), I move:

That, when the Senate next adjourns after the adoption of this motion, it do stand adjourned until Tuesday, September 19, 2023, at 2 p.m.