39. MAINS BY PURPOSE - KEY MESSAGES

Key Messages

1. Transport Canada’s Main Estimates total $2.1 billion in planned spending for 2021-22, of which,
   1. $911.6M for Efficient Transportation System to support efficient market access to products through investment in Canada’s trade corridors; adopt and implement rules and policies that promote sufficient choice and improved service to Canadian travellers and shippers; and manage transportation assets to ensure value for Canadians.
   2. $480.2M for Green and Innovative Transportation System to advance the Government of Canada's environmental agenda in the transportation sector by reducing harmful air emissions; protect Canada's ocean and marine environments by reducing the impact of marine shipping; and affirm a commitment to innovation in the transportation sector.
   3. $444.7M for Safe and Secure Transportation System to ensure a safe and secure transportation system in Canada through laws, regulations, policies, and oversight activities.
   4. $214.7M for Internal Services to support core operations.

2. This represents an increase of 8.0% from TC’s 2020-21 planned spending, which is largely attributed to increased grant funding for incentives for Zero-Emission Vehicles to enable the continuation of the current program, as well as new contribution funding to provide essential air services to remote communities.

3. Reference levels in these Estimates do not include Budget 2021 items.

Variance Explanations

• TC’s 2021-22 Main Estimates have increased by $151.7M compared to the 2020-21 Main Estimates.

• An increase of $10.6M in Operating, mostly as a result of:
  • An increase in funding of:
    • $25.5M for increases to Collective Agreements (AO table, PA table, etc.);
    • $7.1M for the Ports Asset Transfer Program; and
    • $5.6M to support the purchase of the MV Villa de Teror.
  • An offsetting decrease in funding of:

• $12.1M for the Trade and Transportation Corridor Initiative (TTCI);
• $10.6M for the Oceans Protections Plan; and,
• $7.4M as a result of decreased revenue forecasts resulting from the COVID-19 pandemic.

• An decrease of $36.4M in Capital, mostly as a result of:
  • An decrease in funding of:
    • $15.6M for Federal Infrastructure Initiatives;
    • $13.1M for the Eastern Ferries Program;
    • $8.2M for the Capital portion of the statutory payment regarding the St. Lawrence Seaway Agreement; and,
    • $5.8M for Protecting Marine Life (DASH-8).
  • An offsetting increase in funding of:
    • $8.8M for Airports Serving Remote Communities.

• After the completion of a pilot project on purpose-based vote structures, Transport Canada’s three Grants and Contribution (G&C) votes have been combined into one G&C vote.  Overall, there is an increase of $170.2M in G&C, mostly as a result of:

• • An increase in funding of:
    • $170.8M for the incentives for Zero-Emission Vehicles Program;
    • $57.7M for Support to Remote Communities; and,
    • $1.3M for the statutory payment related to the Northumberland Strait Crossing Subsidy payment.
  • An offsetting decrease in funding of:
    • $46.9M for the National Trade Corridors Fund; and,
    • $13.8M for the Gateways and Border Crossings Fund (GBCF).

• An decrease of $4.6M in statutory forecasts, mostly as a result of:
  • A decrease in funding of:
    • $8.3M for the St. Lawrence Seaway Agreement;
  • An offsetting increase in funding of:
    • $2.4M for Contributions to Employee Benefit Plans; and,
    • $1.3M for the Northumberland Strait Crossing Subsidy Agreement.

• An decrease of $7.4M in Revenue, mostly as a result of decreased revenue forecasts due to the impact of the COVID-19 pandemic.