Government Operations Committee on April 19th, 2007

[Vic Toews, Conservative, Provencher, MB]

Yes, I'm sorry.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

The question relates to the Toronto waterfront revitalization initiative. We're just wondering how the funds are being used and why it's important that Treasury Board give guidance at this point for those expenditures.

[Vic Toews, Conservative, Provencher, MB]

Those are the—Perhaps I could just have a moment. The secretary will explain that.

[Wayne Wouters]

Again, what is shown in the main estimates is the funding that has been allocated to the Toronto waterfront initiative. Those funds are not being administered at this time by the President of the Treasury Board and the Treasury Board Secretariat. Those funds were being administered by the Treasury Board Secretariat, but with the change in ministers that funding is now being administered by the Minister of the Environment.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

In which departmental main estimates do they appear this year?

[Wayne Wouters]

They are in the Treasury Board Secretariat's main estimates now. We will be making adjustment in the supplementary estimates in the fall to reflect the transfer.

[The Chair, Liberal, Diane Marleau]

We'll go to the Liberals.

Mr. Turner.

[Garth Turner, Conservative, Halton, ON]

Thank you.

Just to clarify after the Conservative clean-up squad attempt here, Mr. Maloney, the overall budgetary expenditure is 5.9% on the overall absolute dollar terms, your increase.

[David Moloney]

The budgetary main estimates growth is 5.9% in total.

[Garth Turner, Conservative, Halton, ON]

And 5.9% is basically three times two, right? I mean, that's the way we do math in Halton, but it's basically three times 2%, which is three times the inflation rate. We just want to clarify that.

[Vic Toews, Conservative, Provencher, MB]

Actually, on that, I just heard inflation rate statistics this morning. I thought it was 2.4%.

[Garth Turner, Conservative, Halton, ON]

That's as of today, Minister, yes. It just went up. Actually, part of that is attributed by economists to the spending in the federal budget, which is one reason inflation is going up, thank you very much.

Minister, I wonder if you could comment for me, please. I'd like to refer back to the Conservative platform, which you reminded me I knew so well.

A Conservative government will:

Limit the future growth of spending on federal grant and contribution programs and by federal departments and agencies...to the rate of inflation plus population growth.

And a Conservative government will:

Maintain the currently projected growth rates for transfers to persons...and transfers to other levels of government

to the same formula.

Does this budget adhere to that Conservative commitment?

[Vic Toews, Conservative, Provencher, MB]

I think that, as you point out, it's committed to limiting growth and spending on average, and so we have to take that average over the course of the government's lifetime.

[Garth Turner, Conservative, Halton, ON]

I didn't actually say that, Minister. The Conservative platform is very specific at limiting the growth of spending on federal grant and contribution programs by federal departments and agencies “other than National Defence and Indian Affairs” and also transfers to other levels of government to that formula, and I'm just wondering if—

[Vic Toews, Conservative, Provencher, MB]

That's the exception.

[Garth Turner, Conservative, Halton, ON]

Right. And I'm just wondering if the budget adheres to this.

I don't think he needs coaching. If he does, he's in a lot of trouble.

Minister.

[Vic Toews, Conservative, Provencher, MB]

In fact, that's correct. It does adhere to that.

[Garth Turner, Conservative, Halton, ON]

It does adhere to that. Do officials agree with that?

[Wayne Wouters]

I'm sorry, I missed your question.

[Garth Turner, Conservative, Halton, ON]

It is whether the increase in spending in the budget adheres to the government's campaign promise that the limit in spending overall on grants and transfers will be limited to the inflation rate and the growth in the population, inflation being 2%. I don't think the population...I don't know, maybe you can tell me if the budget actually adheres to that.

[Wayne Wouters]

Madam Chair, if you read the government's commitment on this, the government's commitment was refined and reflected in budget 2006. Budget 2006 said that it is committed to limited growth in spending on average below the rate of growth in the economy.

If you look at budget 2007—

[Garth Turner, Conservative, Halton, ON]

Actually, I was asking specifically whether the budget adheres to the campaign that Mr. Toews campaigned on.

[Wayne Wouters]

Budget 2007 very much adheres to the government's commitment as reflected in budget 2006.

[Garth Turner, Conservative, Halton, ON]

That's not what I asked, with respect, sir. I asked if it adhered to the Conservative platform.

[Wayne Wouters]

We have not done that calculation to determine whether it adheres to it. We have looked at it on the basis of what the government's commitment is—and of course, this is the responsibility of the Department of Finance—but we have looked at what the government's commitment is in 2006 and how that's reflected in 2007, and budget 2007 does indicate that they are very much consistent with—