Notes for an Address by Michael Wernick Deputy Minister and Peter Harrison Senior Associate Deputy Minister Indian and Northern Affairs Canada to the House of Commons Standing Committee Regarding Supplementary Estimates (B)

Notes for an Address by Michael Wernick Deputy Minister and Peter Harrison Senior Associate Deputy Minister Indian and Northern Affairs Canada to the House of Commons Standing Committee on Aboriginal Affairs and Northern Development Regarding Supplementary Estimates (B)

House of Commons
Ottawa, Ontario
March 20, 2007

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Mr. Chairman, I appreciate this opportunity to discuss the Supplementary Estimates (B) of the Department of Indian Affairs and Northern Development.

Today, I want to begin by acknowledging that this is my first appearance before this Committee as accounting officer, designated by the Federal Accountability Act. I am the official who is personally responsible for the efficient management of this department’s resources. As such I am accountable to Parliamentary Committees such as this one to answer questions pertaining to these responsibilities.

My responsibilities in this respect are four-fold.

– To ensure that resources are organized to deliver departmental objectives in accordance with government priorities;
– To ensure there are effective systems of internal control;
– To sign the departmental accounts; and
– To perform other specific duties assigned by law or regulation in relation to the administration of this department.In response to initiatives undertaken by the Office of the Comptroller General, Indian and Northern Affairs Canada has implemented a new approach to financial planning, management and reporting—an approach based on the Chief Financial Officer model. This new model is designed to strengthen accountability—crucial for a department that manages some $6 billion each year. Earlier this year, I also created a Chief Audit and Evaluation Executive position that reports directly to me as Deputy Minister.

I’m also proud to say that Indian and Northern Affairs Canada has actively supported the accountability work of the Blue Ribbon Panel on grants and contributions, and has been active on a number of fronts that will contribute to a government-wide action plan targeted for late fall 2007.

As you know, promoting greater accountability is one of the Government of Canada’s top priorities. This Committee’s scrutiny of the department’s financial plans is a vital link in the accountability chain and I fully support the important work that members do.

The Supplementary Estimates (B) now before you represent the final step in the supply cycle for the current fiscal year. The cycle began last year with the tabling of the Main Estimates of $6.3 billion, which included an increase in spending of approximately 6.2 percent, or $366 million, over the previous year’s Main Estimates. The next step was the 2006 federal budget, followed by the Supplementary Estimates.

Part A of the Supplementary Estimates requested a further $196 million. Minister Prentice appeared before this Committee last November to describe how these funds were to be invested to address unforeseen needs. In particular, they have helped First Nation communities address urgent and critical needs brought on by fires, floods and evacuations. The resources have also assisted residents of remote and isolated communities who suffer undue hardship as a result of rising fuel costs.

In the last phase of the Supplementary Estimates, tabled last month, Indian and Northern Affairs Canada requested approval for $70.3 million for various initiatives. These investments support the government’s overall commitment to make tangible, measurable progress on the challenges that face so many Aboriginal communities.

The largest amount proposed in the Supplementary Estimates—$27.4 million—relates to the transfer of Aboriginal Business Canada to this department. Given that the spending authorities had already been granted to Industry Canada, this transfer involves no new expenses.

This exercise consolidated into a single department with an Aboriginal focus the economic development programs that benefit Aboriginal peoples. This promotes efficiency and improves the effectiveness of existing programs. By pooling the expertise of staff, I believe the transfer will also have a positive effect on future programs.

The Supplementary Estimates also include $21 million for out-of-court settlements. In order to avoid unnecessary and costly litigation, the department will settle out of court where there is a recognized legal obligation and on advice from the Department of Justice. Settlements for this fiscal year include three cases – O’Chiese, Testawich, and Tsuu T’ina.

Another large investment included in the Supplementary Estimates would see $9.3 million spent on the Aboriginal Peoples Survey conducted by Statistics Canada. This survey will gather information about socio-economic conditions, among other data. The findings will help establish a clear baseline and enable governments and Aboriginal organizations to measure the impacts of various policies and programs. Current, relevant, accurate data is fundamental to accountability.

Mr. Chairman, there is one more item in the Supplementary Estimates I would like to discuss: the transfer of First Nations SchoolNet. The estimates call for $6 million to fund the program through the current fiscal year. First Nations SchoolNet enables hundreds of classrooms across the country to access the wealth of learning opportunities available via the Internet.

Mr. Chairman, the Government of Canada is determined to ensure that all Canadians—Aboriginal and non-Aboriginal alike—enjoy the prosperity of this country. Indian and Northern Affairs Canada will continue to identify and implement lasting solutions to the issues facing Aboriginal peoples. The spending authorities now under consideration will enable us to take one more step toward this goal.

Thank you. I will now ask Dr. Peter Harrison, Senior Associate Deputy Minister of Indian and Northern Affairs Canada and Deputy Minister of Indian Residential Schools Canada, to talk about Indian Residential Schools. After Mr. Harrison’s presentation we will be pleased to answer any questions that Committee members may have.

Thank-you Mr. Wernick.
Mr. Chairman, my comments on the Supplementary Estimates “B” of Indian Residential Schools Resolution Canada will be brief. These estimates are comprised of two items:

A remaining transfer of $50.5M was made from the Department of Canadian Heritage for the control and supervision of Office of Indian Residential Schools Resolution of Canada (OIRSRC). This transfer was made necessary by government restructuring which saw control of OIRSRC transferred from the Minister of Canadian Heritage to the Minister of Indian Affairs and Northern Development on May 16, 2006.

IRSRC transferred $7.678M in operating budget funds to Service Canada. IRSRC has transferred these funds through an agreement with Service Canada in order for them to prepare for the Common Experience Payment. This preparation will entail substantial Information Technology (IT) development work. Service Canada will receive all applications, conduct a screening of the application, authenticate the identity of the applicant and transfer the data electronically to IRSRC to validate residency. The applicant will be informed of the decision by Service Canada and if appropriate, Service Canada will issue payment.