Memorandum to the Minister of Transport
2021-2022 Main Estimates
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For Approval |
Purpose:
The purpose of this note is to obtain your approval for the 2021-22 Main Estimates for Transport Canada (TC) and its portfolio appropriated Crown Corporations.
Background:
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.
The Main Estimates present proposed departmental and agency budgets for the upcoming fiscal year organized by Ministry and Vote. Main Estimates identify spending authorities (votes) and amounts to be included in subsequent appropriation bills. Parliament must approve these votes before government can proceed with its spending plans.
Financial information, provided in the Main Estimates, is also used to populate the Departmental Plan which provides a multi-year overview of finances and expected results, 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 2021.
Analysis:
Transport Canada
The 2021-2022 Main Estimates for the Department will total $2,051.2 million ($1,824.3 million in voted appropriations and $227.0 million in statutory).
Overall (voted and statutory), the Department’s total authorities for 2021-22 have a net increase of $151.7 million from the previous year’s total Main Estimates of $1,899.5 million. This is a $156.3 million increase in voted funding and a $4.6 million decrease in statutory funding.
The $156.3 million increase in voted funding is attributable to:
- Planned spending increases, primarily as a result of:
- $171M in increased funding for the Zero-Emission Vehicles Grant program to allow for the continuation of the current program to increase the adoption of zero-emission vehicles in Canada, through purchase incentives, as a means to reduce air pollution and/or greenhouse gas (GHG) emissions from transportation
- $58M in new contribution funding to support air carriers providing air services to remote communities who are currently facing massive revenue losses due to the COVID-19 pandemic
- $26M in new funding related to the settlement of collective agreements for public service employees
- $9M in increased capital funding to strengthen airports serving remote communities by addressing urgent capital needs to support the safe and continued operations of small airports owned and operated by the Government of Canada, which primarily serve remote and isolated communities
- $7M in new funding for the Ports Asset Transfer Program to facilitate the transfer of Transport Canada administered port facilities to the private sector
- $7M in new funding to support the purchase of the ferry vessel the MV Villa de Teror which is required to ensure continued reliable, predictable, and safe ferry service to the residents of Îles-de-la-Madeleine.
- These increases are offset by planned spending decreases, primarily as a result of:
- $47M in decreased funding to better align budgets with expected expenditures for the National Trade Corridors Fund a contribution program that helps fund infrastructure projects in Canada that could include work on airports, ports, rail yards, transportation facilities and access roads
- $16M in decreased capital funding for the Budget 2014 and Budget 2016 Federal Infrastructure Initiatives to support safe, secure and efficient transportation, as this program is reaching maturity
- $14M in decreased contribution funding for the Gateways and Border Crossings Fund that funds projects and initiatives designed to enhance Canada’s economic competitiveness and productivity, as this program reaches maturity
- $13M in decreased funding for the Ferry Services capital program to maintain and repair TC owned vessels and terminals that support ferry services in Eastern Canada
- $12M in decreased operating funding for Trade and Transportation Corridors Initiative to build stronger more efficient transportation corridors and to help Canadian businesses compete, grow and create more jobs for Canada’s middle class
- $11M in decreased operating funding for the Oceans Protection Plan to protect Canada’s coast and waterways to ensure the oceans are cleaner, healthier and safer for years to come
- $6M in decreased capital funding for Protecting Marine Life after the purchase of a DASH-8 aircraft to help observe and protect Canadian waters.
Details on the Department’s priorities, core activities and related resource requirements will be available in Transport Canada’s Departmental Plan.
Crown Corporations
- Canadian Air Transport Security Authority (CATSA) ($567.8M in 2021-2021) a $5.1 M increase in funding as CATSA will continue to focus on the delivery of its mandated activities: Pre-Board Screening, Hold Baggage Screening, Non-Passenger Screening, and the Restricted Area Identity Card program.
- Marine Atlantic Inc. ($149.9M in 2021-2022) a $94.2M increase in Operating and Capital funding to support the year-round constitutionally mandated ferry and seasonal ferry service.
- The Federal Bridge Corporation Limited ($18.5M in 2021-2022) an $18.5M increase from last year as emergency support to offset the COVID-19 pandemic revenue shortfall.
- VIA Rail Inc. ($769 8M in 2021-2022) a $222.9M increase, primarily as a result of funding to sustain operations and maintain the asset base of Canada’s national passenger rail transportation service.
Considerations:
Transport Canada’s participation in the Three Grants and Contributions Votes Pilot has concluded, and the Department has returned to one vote in order to provide more flexibility in managing transfer payments.
Amounts in the Main Estimates do not reflect recent spending decisions by the government, which will be reflected in Budget 2021.
This year, the Main Estimates will show a non-budgetary amount of $290M related to 2019-20 expenditures. This was an adjustment made to remove the net book value of the Ridley Terminals Inc. Crown Corporation after its sale to a consortium.
Communications:
Transport Canada’s Main Estimates for 2021-22 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 would 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 14, 2021. 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 2021-22 by signing this Briefing Note.