20. Briefing Note - 2020-2021 Main Estimates

Memorandum to the Minister of Transport

2020-2021 Main Estimates
 

Purpose:

The purpose of this note is to obtain your approval of the 2020-21 Main Estimates for Transport Canada (TC) and its portfolio Crown Corporations.

Background:

In line with the end of the two year pilot project on Estimates publication, there will be no Interim Estimates. Instead, an Interim Supply bill must be approved by March 31st 2020. As such, the Main Estimates will be tabled on or before March 1st 2020.

Main Estimates documents support appropriation acts that provide expenditure authorities for the Departments, Agencies and the Crown Corporations. They are customarily tabled in Parliament in February of each year by the President of the Treasury Board on behalf of all Departments, Agencies and Crown Corporations.

Financial information, provided in the Main Estimates, is also used to populate the Departmental Plan, expected to be tabled in Parliament in March. As a result of the Parliamentary tabling timelines, the Main Estimates and the Departmental Plan will not include any new funding that may be provided through Budget 2020.

Analysis:

Transport Canada

The 2020-2021 Main Estimates for the Department will total $1,899.5M ($1,667.9 million in voted appropriations and $231.6 million in statutory).

Overall (voted and statutory), the department’s total authorities for 2020-21 have a net increase of $36.9 million from the previous year’s total Main Estimates.  This is a $15.4 million increase in voted funding and a $21.5 million increase in statutory funding.

The $15.4 million increase in voted funding is attributable to:

• The following Increases:
  • $181.6M increase in funding to support the Trade and Transportation Corridor Initiative through the National Trade Corridor Fund;
  • $18.7M increase in funding to support the Eastern Canada Ferry Services Program;
  • $9.8M increase in funding to support the Trans Mountain Expansion project and post-decision implementation;
  • $7.5M increase in funding to support the implementation of emergency protection measures to support the survival and recovery of the Southern Resident Killer Whale;
  • $7.2M increase in funding as a result of the signing of new Collective Agreements.
• Offset by the following Decreases:
  • $149.8M decrease in funding for Port Asset Transfer Program as that program sunsets;
  • $26.3M decrease in GBCF funding as a change to program funding profile;
  • $25.1M decrease in FCSAP funding as a change to program funding profile.

The $21.5 million increase in statutory funding is primarily attributable to:

• $15.2M increase in payments in respect of the St. Lawrence Seaway agreements under the Canada Marine Act for major maintenance work
• $4.8M increase in contributions to employee benefit plans

Details on the department’s priorities, core activities and related resource requirements will be available in Transport Canada’s Departmental Plan.

The $201.3M decrease from 2019-20 Estimates to Date of $2.1 billion to 2020-21 Main Estimates is primarily attributable to the following decreases:

• $175M in grant funding for the Zero Emission Vehicle (ZEV) program
• $30M in TMX funding for the Crude Oil Tanker Demonstration Program

Crown Corporations

• CATSA ($1 in 2020-2021) an $875.2 M decrease in funding as a result of the decision to transition CATSA to the Designated Screening Authority.  Due to the postponement of the transition it is expected that CATSA’s Main Estimates will be increased to prior year levels.

• MAI ($55.7 M in 2020-2021) a $97.2 M decrease as a result of sunsetting funding for both Operating and Capital requirements.

• VIA ($546.9 M in 2020-2021) a $184.7 M decrease mostly as a result of sunsetting Operating funding.

• FBCL ($0.0M in 2020-2021) no change from last year, this item is included for information only.

Considerations:

Noted amounts in the Main Estimates do not reflect recent spending decisions by the government, those will be reflected in Budget 2020.  Furthermore, it is expected that a decision will be made to reinstate CATSA’s funding levels for 2020-21.

Communications:
 

Transport Canada’s Main Estimates for 2020-21 will be tabled in Parliament and the report will be published on the government’s website. This is not expected to attract media attention.  A responsive communications approach is recommended. Should the department receive a media call, existing media lines would be updated to respond to specific questions.

Media enquiries concerning funding for Crown Corporations will be referred to those organizations as they operate at arm’s-length from government and are responsible for their spending decisions. 

Next Steps:

CFO Attestation and sign-off of the Main Estimates is due to Treasury Board Secretariat no later than January 31, 2020. The submission indicates both the Deputy Minister and the Minister of Transport have been briefed and are in agreement with all the items requested through these Estimates. 

Recommendations:

We recommend that you approve the attached Main Estimates for 2020-21 by signing this Briefing Note.

Attachment(s)

• Annex A – 2020-21 Main Estimates Page Proof Transport Canada
• Annex B – 2020-21 Main Estimates Page Proof CATSA
• Annex C – 2020-21 Main Estimates Page Proof MAI
• Annex D – 2020-21 Main Estimates Page Proof VIA

Annex E – 2020-21 Main Estimates Page Proof FBCL