Minister of Foreign Affairs appearance before the Committee of the Whole – Issues notes

Minister of Foreign Affairs appearance before the Committee of the Whole – Issues notes – Briefing material

2021-12-07/08

International Trade (Mary Ng)
International Development
National Defence (Anita Anand)
Veterans Affairs (Lawrence MacAulay)
Communications Security Establishment (Anita Anand)
1. Supplementary Estimates (B)
Atlantic Canada Opportunities Agency (Ginette Petitpas-Taylor)
Canadian North Economic Development Agency (Dan Vandal)
1. Supplementary Estimates (B) - CanNor Tourism Recovery Strategy
Economic Agency of Canada for the Regions of Quebec (Pascale St-Onge)

International Trade (Mary Ng)

Potato Wart in Prince Edward Island

Paying close attention to the issue.
Without Minister Bibeau’s order, clear that the U.S. would have imposed its own federal order, which could have been even more restrictive and would have been very difficult to have repealed.
Government continues to engage with U.S. as appropriate, ensuring we do not risk further trade actions, and to pave the way for resolution of the issue in the future.

Supplementary messages

I have instructed my officials, including at our Embassy in Washington, to work closely with their counterparts from Agriculture and Agri-Food Canada and the Canadian Food Inspection Agency to engage with the U.S. to resume trade.

Background

On October 1 and October 14, 2021, the Canadian Food Inspection Agency (CFIA) confirmed the detection of the potato wart fungus, Synchytrium endobioticum, a reportable regulated pest, in two separate fields of processing potatoes on two separate farms. The fields are related to previous potato wart detections, and have been under surveillance as per the Potato Wart Domestic Long Term Management Plan. Both potato farms are located in Prince Edward Island.

On November 21, 2021, a Ministerial Order was issues by Minister Bibeau under the authority of the Plant Protection Act. The Order restricts the sale of seed potatoes from PEI to the rest of Canada and the United States. Canada can continue to export potatoes to non-U.S. countries in specific cases if requirements for the importing countries can be met. Exports of PEI table stock and processing potatoes to the U.S. are suspended while risk and risk management measures are being reviewed. This does not apply to processed PEI potatoes, such as frozen potatoes. The Order will also enable the development of certification programs to support affected industries in PEI and ensure that regulated commodities are certified to mitigate concerns related to potato wart.

Reactions to the Order were negative in PEI, both from industry stakeholders and politicians, including PEI’s Premier Dennis King, who argued that the Order goes against the acceptable science and protocols and is being made to appease the United States.

While Canada notified its CUSMA partners of the detection of potato wart in line with established transparency practices, the Government of Canada’s actions to restrict trade were its own and not a consequence of CUSMA commitments.

In 2020, PEI exported $121.6 million in fresh potatoes. The majority of those exports were table and processing potatoes ($116.3 million), with seed potato exports being valued at $5.3 million. PEI’s largest potato export category is frozen potatoes, which was valued at $369.2 million in 2019/2020. The Order does not apply to frozen potatoes.

U.S. electric vehicle tax credit

The proposed U.S. approach to provide tax credits for electric vehicles is very concerning and the Government is actively following developments.
The proposed tax credits run counter to environmental and supply chain objectives shared by Canada and the United States, as well as U.S. trade obligations under the CUSMA and the WTO.
Canada remains committed to working with our U.S. partners to continue to enhance the competitiveness of the North American automotive industry as it makes a generational transformation towards electrification.

Supplementary messages

The Government of Canada will always defend the interests of Canadians.
Canada continues to urge Congress to pass legislation that does not discriminate against Canada. Officials continue to work towards such an outcome.

Background

The House of Representatives draft of the Build Back Better bill contains tax credits for purchases of electric vehicles in the U.S. that threaten the viability of automotive production in Canada. The proposed credits are inconsistent with U.S. obligations under the CUSMA and WTO and could risk triggering a trade war with U.S. allies, including Canada.

In addition to a maximum base credit of $7,500, a $4,500 credit is provided if final assembly of an electric vehicle takes place at a unionized facility in the United States; an additional $500 credit is provided if the electric vehicle is powered by battery cells that are manufactured in the United States; and, most concerning, beginning in 2027 the full value of the credit (up to $12,500) will be conditional on final assembly of the electric vehicle in the United States.

The House of Representatives must vote on a consolidated draft bill, which if passed, would then be considered by the Senate. Canadian automotive stakeholders are engaged and very concerned. On October 22, you sent Congressional leadership a letter outlining Canada’s serious concerns, on October 26, Ontario Minister Fedeli sent a similar letter on behalf of the province, and on October 29, Ambassador Hillman signed a joint letter from the Ambassadors of the EU and EU Member States, Japan, Korea and Mexico flagging serious concerns.

Dairy TRQs – CUSMA panel dispute settlement

We have vigorously defended our position during the dispute settlement process.
Canada remains confident that it is compliant with its CUSMA tariff-rate quota obligations
The Government will continue to preserve, protect and defend our supply management system.

Supplementary messages

Canada is a strong proponent of rules-based multilateral trade and believes that international trade will play an important role in the global recovery from COVID-19.
The Government is working closely with dairy sector representatives and with provinces and territories to ensure the best defense of Canada’s interests.

Update

The dispute hearing took place on October 25 and 26 in Ottawa. Canada argued that the U.S. is trying to obtain through litigation what it failed to achieve in the negotiations and that the U.S. has misinterpreted and mischaracterized the obligations applicable

to Canada’s dairy market access under CUSMA. Following the hearing, the Panel is expected to issue an interim panel report as soon as late November and a final decision by early January.

Supporting facts and figures

Canada remains a small player in the global dairy trade, representing less than 1% of global exports in 2020.
Canada was the second largest export market for U.S. dairy in 2020 and has consistently been in the top three.

Background

Since CUSMA’s coming into force on July 1^st, 2020, the U.S. has expressed concerns regarding the administration of Canada’s CUSMA dairy tariff rate quotas (TRQs).

Subsequent to consultations in December 2020, on May 25^th, 2021, the U.S. requested the establishment of a dispute settlement panel.

The U.S. alleges that Canada’s practice of allocating a significant proportion of the TRQs to processors violates our CUSMA commitments. Canada’s position is that it is fully meeting its CUSMA commitments by implementing our chosen TRQ allocation mechanism, which also fulfills Canada’s longstanding supply management objectives of ensuring predictability and stability in Canada’s dairy market.

Softwood lumber

Extremely disappointed by U.S. decision to nearly double the duty rate applicable to most of the industry; U.S. duties imposed on Canadian softwood lumber are unwarranted and unfair.
Vigorously defending the interests of Canadian industry, including through litigation under Chapter 19 of NAFTA, Chapter 10 of CUSMA and before the WTO.
Continue to believe that an agreement is in both countries’ best interests; raising this at all levels and at every opportunity with the U.S. administration.

Supplementary messages

Remain ready to negotiate a mutually acceptable agreement as soon as the U.S. demonstrates a willingness to discuss meaningfully.
Duties harm stakeholders on both sides of the border. U.S. homebuilders have also expressed their disappointment with the increase of the duties.
Canada is assessing the results and exploring potential next steps, jointly with provinces and territories, industry and other partners.

Background

Currently, most Canadian companies are subject to a combined duty rate of 17.90% on exports of certain softwood lumber products to the United States.

Softwood lumber continues to be a priority for the Government of Canada, and it is being raised at all levels and at every opportunity with the U.S. Administration. In addition, Canada continues to work with long-time allies in the United States, such as homebuilder associations, to stress that U.S. duties are causing undue harm to U.S. consumers, as well as to Canadian producers and communities. U.S. homebuilders have been vocal about the need to find solutions to high lumber prices and have specifically called for an end to duties on Canadian lumber. Canada’s position remains that a new softwood lumber agreement is in the best interests of both countries, and Canada is prepared to re-engage in negotiations when the United States is ready to discuss realistic proposals that would be acceptable to Canadian industry. In the meantime, Canada is continuing to vigorously pursue legal challenges against U.S. duties at the WTO and through NAFTA/CUSMA dispute settlement panels.

Under NAFTA Chapter 19, Canada is challenging the U.S. Department of Commerce’s (Commerce) initial countervailing (CVD) and anti-dumping (AD) determinations.

Canada is also challenging Commerce’s determinations before the WTO. While the WTO AD panel found that the U.S. improperly calculated dumping margins, Canada appealed in June 2019 certain findings from the Panel that were inconsistent with past panel and/or Appellate Body reports. The Panel’s report on Canada’s CVD challenge was released in August 2020, with findings overwhelmingly in Canada’s favour, namely that U.S. CVD duties on Canadian softwood lumber are inconsistent with the United States’ WTO obligations. However, the United States appealed the Panel’s report in September 2020. Timelines for both appeal proceedings are unclear due to the WTO Appellate Body’s current lack of quorum.

Finally, Canada is pursuing challenges of the final results of Commerce’s first Administrative Reviews under Chapter 10 of CUSMA. Administrative reviews are annual reviews that Commerce conducts of its AD and CVD orders. The Administrative Review process establishes duty assessment rates for shipments entered during the period of review, as well as the new duty deposit rates going forward until the next annual Administrative Review is completed. The final results of the second Administrative Reviews were released on November 24, 2021, and nearly doubled the duty rate to which most companies are subject (17.90% up from 8.99%). The third Administrative Reviews are underway, and final results are expected in August 2022.

International Development

Canada’s international assistance response to covid-19

The COVID-19 pandemic is a global threat that does not recognize borders and will only be overcome through coordinated global action.
Canada is committed to a robust international effort to stop COVID-19 and to address its devastating health, social, economic and security impacts on people around the world.
Canada is committed to supporting equitable global access to COVID-19 vaccines, therapeutics and diagnostics and is working hand in hand with the Access to COVID-19 Tools (ACT) Accelerator and the COVAX Facility in support of this.

Supplementary messages

In line with the Feminist International Assistance Policy, Canada’s response focuses on the world’s poorest and most marginalized, and considers the differentiated needs of women and girls.
The emergence of COVID-19 has also underscored the need to reinforce and deliver on joint commitments by the international community to strengthen health systems and reinforce prevention, detection, emergency planning and preparedness capabilities worldwide.

Update

Since February 11, 2020, the Government of Canada has committed over $2.6 billion to the global response to COVID-19. Canada has also made an additional $1 billion available for International Monetary Fund loans related to COVID-19. Canada has committed to donate the equivalent of 200 million COVID-19 vaccine doses to the COVAX Facility by the end of 2022.

Supporting facts and figures

Canada’s $2.6 billion commitment to the global COVID-19 response includes $1.3 billion for the ACT-Accelerator, over $740 million in humanitarian and development assistance, and adapted funding arrangements with organizations to address COVID-19 needs worth over $555 million.
At the G20 Summit, the Prime Minister announced Canada’s commitment to donate the equivalent of at least 200 million doses to the COVAX Facility by the end of 2022. The Prime Minister also announced an investment of up to $15 million to COVAX Manufacturing Task Force partners.
The COVAX dose sharing mechanism, supported by funding from Canada, has, to date, delivered more than 515 million doses to 144 participants. In addition to the 50 million in-kind surplus doses pledged as part of the commitment to COVAX, Canada has also donated 700,000 surplus doses bilaterally, to countries in Latin America and the Caribbean.

Background

The COVAX Facility is a global pooled procurement mechanism for COVID-19 vaccines. It has 2 windows: a self-financing window for upper-middle- and high- income economies and an Advance Market Commitment (AMC) window to support low- and lower-middle- income economies. The Facility has delivered more than 515 million doses, of which 161 million have been directed to AMC-eligible countries, and is designed to deliver 2 billion doses by the end of 2021.

Afghanistan

Canada is concerned about the escalating humanitarian crisis in Afghanistan. As winter approaches, it is critical that the international community works collectively to meet the needs of vulnerable Afghans.
The legality of international assistance in Afghanistan is top of mind. We are keenly aware of the need to facilitate assistance to support the basic needs of Afghans, while ensuring that our partners do not face undue legal risks.
Canada’s future assistance, that goes beyond meeting basic human needs of the Afghan people, will be weighed against the Taliban’s demonstrated willingness to adhere to and protect the fundamental rights of all its citizens and form an inclusive and representative government.

Update

The Taliban’s takeover on August 15 presents numerous challenges for Canada and the international community. Canada’s current priorities are: (1) safe passage of Canadians, foreign nationals and Afghans; (2) mitigating a humanitarian and refugee crisis; (3) continuing to advocate for inclusive governance and human rights, including for women, girls and other vulnerable groups; and, (4) counter-terrorism cooperation.

Supporting facts and figures

Canada has provided nearly $3.7 billion in international assistance since 2001.
Canada has also contributed over $600 million in bilateral security sector support to Afghanistan since 2001, including $195 million (2018-2021) for Afghan Security Forces.
Since 2014, Canada has allocated $179.7 million in humanitarian assistance to Afghanistan. This includes $27.3 million in humanitarian assistance in 2021 and an additional $50 million for Afghanistan and the region announced in August.
In 2019-2020, Canada’s assistance to Afghanistan totalled $189.07 million ranking Afghanistan as Canada’s top recipient of international assistance.

Background

Following the Taliban takeover, much of the international community, including Canada, paused most development assistance to Afghanistan. As roughly 80% of

Afghanistan’s $11 billion public expenditure program relied on international assistance, the rapid withdrawal of development and security assistance, coupled with the loss of access to overseas assets, is significantly impacting the country’s economy, services and infrastructure. Canada is working with fellow donors and like-minded countries to develop a common approach on the considerations and conditions critical to the international community on the delivery of any development assistance in Afghanistan.

Sanctions and domestic anti-terrorism legislation present challenges to delivering international assistance in Afghanistan. Canada has listed the Taliban as a terrorist entity under the Criminal Code since 2013, making it a criminal offence to provide or make property available, directly or indirectly, knowing that it will be used by or benefit a terrorist group (whether listed or not). Efforts are underway to find solutions to respond to the needs of Afghans, while ensuring implementing partners do not contravene Canadian laws.

Assistance to china

Canada’s bilateral aid program to China expired in 2013. In 2019-2020, Canada’s bilateral expenditures ($3.22 million) were comprised mainly of funding for the China Council for International Cooperation on Environment and Development, Canada Fund for Local Initiatives projects, and scholarships.
As part of our commitment to promote sustainable development around the world, Canada is a member of several Multilateral Development Banks, including the Asian Development Bank and the Asian Infrastructure Investment Bank.
All Canadian development assistance activities are carried out in strict accordance with Canadian interests, values and standards.

Supplementary messages

Canada does not provide any direct bilateral assistance to the Government of China.
Canada’s investment in the AIIB is alongside its long-time partners of Australia, France, Germany, India, Italy, South Korea and the UK.
The AIIB governance structure is consistent with those of similar longstanding multilateral development banks.

Background

Assistance to China: Canada’s bilateral development assistance to China began in 1981 and expired in 2013. Based on GNI per capita, China is an eligible ODA recipient under the OECD-DAC definition. In 2019-20, Canada’s international assistance to China totalled $6.98 million: $3.22 million in bilateral spending and $3.76 million in imputed multilateral aid. Based on preliminary information, bilateral international assistance to China decreased to 2.8M in 2020-2021. Canada's bilateral spending in China ($3.22 million) is comprised mainly of funding to the China Council for International Cooperation on Environment and Development, Canada Fund for Local Initiatives, and the Canada-China Scholars' Exchange the Program (CCSEP).

The China Council for International Cooperation on Environment and Development (CCICED): Environment and Climate Change Canada (ECCC) is the departmental lead on Canada’s participation in CCICED. CCICED is an international advisory body that provides research-based policy recommendations on environmental and development issues. Canadian funds do not support the Chinese secretariat or China’s participation in CCICED. Canada’s participation in CCICED will continue until 2022 under the current arrangement. CCICED funding is transferred from GAC to ECCC in annual installments of $1.6 million, for a total of $8 million over 5 years drawn from Canada’s official development assistance (ODA) envelope. Both Canada and China provide approximately equal shares of CCICED’s overall budget (1/3 each) with the remaining 1/3 provided by other participating partners including the U.S., the EU, Germany, Italy, the Netherlands, Sweden, and Norway.

Canadian Fund for Local Initiatives (CFLI): Canada provides modest funding for small-scale, short-term (usually 1 to 2 years) and high-impact projects to address local needs. The Canadian Embassy in Beijing administers and manages CFLI projects in China and the Canadian Ambassador to China is responsible for project approval. These projects are implemented mainly by local non-governmental organizations. In 2021-2022 CFLI funding to China has a total budget of $800,000. [REDACTED].

China and the Canadian Ambassador to China is responsible for project approval. These projects are implemented mainly by local non-governmental organizations. In 2021-2022 CFLI funding to China has a total budget of $800,000. Due to the nature of these projects and their implementing partners in China, some CFLI projects are considered to be highly sensitive.

Canada-China Scholars' Exchange Program (CCSEP): CSSEP was established in 1973 as an official bilateral academic exchange program. Over the past 47 years, more than 1000 scholars have participated in the program. For inbound Chinese recipients, Canada provides a grant of $2,200 per month, which covers medical insurance, visa, work permit, and living expenses, while the Government of China pays for their travel to Canada. For outbound Canadian recipients, Canada covers the cost of travel to China for up to $3,300 per return ticket, while the Government of China covers their tuition and living expenses in China. Canada’s total CCSEP expenditure for 2020-2021 was $143,000.

Asian Infrastructure Investment Banks (AIIB): As the lead on AIIB, questions should be directed to Finance Canada. Canada owns 1% of AIIB, which has adopted the operating framework, governance structures and best practices of similar longstanding Multilateral Development Banks and includes as members Australia, France, Germany and the UK. The majority of AIIB’s active projects are co-funded with other multilateral development banks, and are accordingly governed by well- established rules and norms. To date, the AIIB has approved funding for seven projects in China. China’s Belt and Road Initiative (BRI) is a national foreign policy and development strategy, while the AIIB is a multilateral development bank.

Asian Development Bank (ADB): Canada is a founding member of ADB and is currently the 7th largest shareholder (2nd non-regional after the US), owning 5.23% of ADB’s capital subscription. The ADB’s five largest shareholders are Japan and the United States (15.6% each), China (6.4%), India (6.3%), and Australia (5.8%). China is eligible for ADB assistance at market-based terms and cannot access concessional resources. China is approaching the point of graduation from ADB assistance, with ADB shifting from an infrastructure-based support model for China to one that focusses on global public goods such as health and environment.

WTO trips agreement waiver proposal

Canada is ready to discuss proposals on a waiver for intellectual property (IP) protection, in particular for COVID-19 vaccines, under the WTO Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS).
We remain committed to finding solutions and reaching an agreement that accelerates global vaccine production and does not negatively impact public health.
In addition to discussions on IP, Canada has also actively worked with international partners to identify barriers to vaccine access, such as supply chain constraints.

Supplementary messages

Canada is committed to a comprehensive, global response to COVID-19 that leverages the entire multilateral system in supporting the research, development, manufacture, and distribution of safe and effective COVID-19 diagnostics, equipment, therapeutics, and vaccines.
Canada will continue working closely with all WTO Members, including engaging on proposals from any Member or group, in seeking a consensus- based outcome to address any IP challenges created by COVID-19.
In addition to discussions on the TRIPS waiver, Canada remains actively committed to the work of the WTO Trade and Health Initiative to strengthen global supply chains and support timely, open trade and the delivery of essential medicines and medical supplies, including vaccines, around the world.
Canada also continues to support the WTO Director General’s efforts to enhance the WTO’s role in global dialogue with the pharmaceutical sector towards accelerating the production and distribution of affordable, safe, effective COVID-19 vaccines and other medical products in coordination with the World Health Organization and other relevant organizations.

Responsive – Bolivia’s request regarding a compulsory licence for the production of COVID-19 vaccines by the Ontario company Biolyse

Federal government officials have met with Biolyse on a number of occasions to discuss their manufacturing capabilities, the process for Schedule 1 listing under the Patent Act, and subsequent authorization requirements.
The Government of Canada has also met with Bolivia in respect of its WTO notification on this matter.
Vaccine production is a complex process dependent on securing access to needed equipment, production inputs, technical expertise and know-how, as well as a range of other considerations.
It is important to note that adding a COVID vaccine to Schedule 1 would not allow a compulsory licence for the production and export of these vaccines.
A company seeking authorization for a compulsory licence under Canada’s Access to Medicines Regime must be able to manufacture the drug and conduct necessary trials to establish that the drug meets Canadian safety and efficacy requirements before that authorization would be granted.

Supporting facts and figures / Background

The India/South Africa proposal for a COVID-19-related TRIPS waiver was tabled in October 2020, and has since been co-sponsored by 63 WTO Members, including Bolivia, Egypt, Eswatini, Fiji, Indonesia, Kenya, Maldives, Mozambique, Mongolia, Namibia, Pakistan, Vanuatu, Venezuela, and Zimbabwe, as well as other members of the LDC Group and African Group.
In June 2021, TRIPS Council agreed to engage in text-based negotiations on a revised waiver proposal, which seeks a waiver on TRIPS provisions on copyright, industrial designs, patents, and trade secrets in respect of COVID-19-related diagnostics, therapeutics, vaccines, and other health technologies, for a three-year renewable duration; however, text-based negotiations have seen limited engagement by waiver co-sponsors and from other Members, such as the U.S., UK, Switzerland, Japan, Korea, Chile, Norway, and Brazil, which maintain concerns regarding the scope and duration of the waiver proposal, as well as the implications of the waiver for the global IP system.
The EU has also noted that the waiver is “not the right response to the pandemic”, and as an alternative, has tabled a draft declaration affirming existing TRIPS flexibilities on compulsory patent licensing.
In recent weeks, India and South Africa have signalled a strong interest in finalizing discussions on the TRIPS waiver proposal by or before the twelfth WTO Ministerial Conference (November 30-December 3), with the lack of movement towards substantive text-based negotiations suggesting a likelihood that these discussions will be moved to MC12, possibly as part of broader negotiations among WTO Members for deliverables.
On May 7, Minister Ng issued a statement confirming that Canada is ready to discuss proposals on an IP waiver, in particular for COVID-19 vaccines, under TRIPS, and remains committed to finding solutions and reaching an agreement that accelerates global vaccine production and does not negatively impact public health. Canada has consistently expressed its support for consensus-based outcomes, and can proceed on the basis of any consensus that emerges at TRIPS Council.
Canada is also actively engaged in the work of the WTO Ottawa Group on the Trade and Health Initiative, which aims to strengthen global supply chains and support the delivery of essential medicines and medical supplies, including vaccines, around the world, and also supports the WTO Director General’s “third way” dialogue with the pharmaceutical sector towards accelerating the production and distribution of affordable, safe, effective COVID-19 vaccines and other medical products in coordination with the World Health Organization and other relevant organizations.

Canada is also a leading donor to the Access to COVID-19 Tools (ACT) Accelerator, and the COVAX Facility, the ACT Accelerator’s vaccines pillar.

Bolivia’s request regarding a compulsory licence for the production of COVID-19 vaccines by the Ontario company Biolyse

Parallel to ongoing WTO discussions on the TRIPS waiver, on May 11, Bolivia signed a “terms of reference” document with the Ontario-based pharmaceutical manufacturer, Biolyse Pharma, for the purchase of 15 million doses of the Johnson & Johnson (J&J) vaccine, further to a request by Biolyse to produce the J&J vaccine under compulsory licence under Canada’s Access to Medicines Regime (CAMR).
The production and export of the J&J vaccine by Biolyse would require authorization from the Ministers of Innovation, Science and Industry (ISI) and Health Canada, for a compulsory licence to produce the vaccine under CAMR, which implements existing flexibilities under the TRIPS Agreement, permiting a WTO Member to produce a patented pharmaceutical product under compulsory licence for export to another Member with insufficient manufacturing capacity. A number of important regulatory steps would be needed prior to the issuance of such a compulsory licence to confirm that Biolyse is capable of independently producing safe and effective COVID-19 vaccines.
Consideration of Biolyse’s request to list a patent for the J&J vaccine on Schedule 1 is also informed by ongoing discussions at the WTO on the proposed TRIPS waiver. As the only WTO Member to have exported medicines using these flexibilities, Canada’s Regime has long come under criticism from civil society and developing country WTO Members, as part of calls to broaden existing TRIPS flexibilities to address public health challenges. The alleged inadequacy of TRIPS flexibilities has already factored into discussions on the TRIPS waiver to date, where co-sponsors have argued that

they are ineffective in addressing the challenges posed by the COVID-19 pandemic. In view of the agreement between Bolivia and Biolyse, any decision taken by the Minister of ISI on whether to list the J&J vaccine on Schedule 1 can be expected to factor into negotiations on the TRIPS waiver, and can also be expected to be cited by proponents in seeking either to broaden existing TRIPS flexibilities and/or a broad waiver from the TRIPS Agreement to address COVID-19.

United nations relief and works agency for palestine refugees (UNRWA)

Canada is committed to helping vulnerable Palestinians, including refugees whom UNRWA is mandated to serve.
Sufficient and predictable resources is important for meeting the needs of refugees and to support regional stability.
Canada expects UNRWA to uphold UN values and humanitarian principles, including neutrality, in all activities.

Supplementary messages

Canada’s support to UNRWA contributes to ensuring that the Agency operates in an effective, transparent, and accountable manner.
Canadian officials are monitoring UNRWA’s activities. Our close engagement allows us to insist on accountability if UNRWA faces allegations of neutrality violations.
Canada expects UNRWA’s approach to include timely follow-up, including the implementation of corrective or disciplinary actions (as deemed appropriate and in line with due process).
In all of its activities, UNRWA has a zero-tolerance policy for incitement to violence or discrimination.

Update

In 2021, two significant alleged neutrality violations were brought to the attention of Canadian officials and other donors. In January and February, Canadian officials were alerted to certain problematic learning materials that violated UN values were used by UNRWA for ‘self-learning’ during pandemic-related school closures. UNRWA has since assessed those materials and taken corrective actions. The Minister of International Development and Canadian officials continue to work closely with partners and UNRWA’s senior management to address the issue, and to help ensure that UN values are upheld and that UNRWA takes further corrective actions, as needed, in this regard. In August, a report from a group known as UN Watch alleged that UNRWA personnel promoted violence and hate through social media channels.

UNRWA launched an investigation into these allegations; should misconduct be found, the Agency is expected to decide upon appropriate administrative or disciplinary action.

Supporting facts and figures

Canada has committed $90M to UNRWA from 2020 through 2022.
Canada’s support helps more than half a million Palestinian children who rely on UNRWA for education services.
UNRWA also delivers critical food or cash assistance to approximately 2 million beneficiaries, with a focus on the very poorest.
Canadian funding reinforces UNRWA’s ongoing efforts on neutrality, including work by UNRWA staff to identify, monitor, and follow up on violations of this principle.
Canada exercises enhanced due diligence for all international assistance funding for Palestinians, including funding for UNRWA.

Background

Since 1948, UNRWA has been the only UN organization mandated to provide basic services to over five million Palestinian refugees in the West Bank, Gaza, Lebanon, Syria and Jordan. UNRWA is almost entirely funded through voluntary contributions by international donors and has faced a significant funding shortfall partly as a result of growing needs, falling contributions, and a volatile environment. UNRWA's Program Budget (education, health and social services) and its Emergency Appeals for humanitarian assistance are currently significantly underfunded to cover services up to the end of 2021. Without significant additional resources, services may need to be cut, leading to negative humanitarian consequences.

National Defence (Anita Anand)

Canadian forces pay increase

In February 2021, the Treasury Board Secretariat approved military members’ rates of pay to be aligned with the increases received by the Federal Public Service.
These updated rates of pay apply to Regular and Reserve Force general service officers at the rank of Lieutenant-Colonel and below.
These pay increases also apply to pilots, medical, dental, and legal officers, and all Canadian Armed Forces non- commissioned members below the rank of Lieutenant-Colonel.
This change to military members’ pay recognizes their value, strengthens overall morale, and supports Strong, Secure, Engaged initiatives in recruitment and retention.
In these Estimates, National Defence is requesting $327.7 million to support the costs associated with the 6.1 percent compounded pay increases that were approved for 2018, 2019, and 2020.
To be clear, this pay increase does not apply to senior officers at the rank of Colonels and Captains (Navy) and above, excluding Medical, Dental, and Legal Officers who did receive a general increase.
Pay rates for senior ranks are managed separately, and at this time no decision has been made regarding an increase for this category.
These updated rates of pay will ensure that the Canadian Armed Forces are able to maintain a skilled force across a range of tasks, including in critical occupations.

Key Facts

In accordance with the National Defence Act, the payment covers retroactive salary increases (with compounded interest) starting April 1, 2018, calculated as follows:
- Effective April 1, 2018: an economic increase of 2.8%
- Effective April 1, 2019: an economic increase of 2.2%
- Effective April 1, 2020: an economic increase of 1.0%

Details

Canadian Armed Forces members who released after March 31, 2018, will be eligible for a lump sum back payment and adjustments to their Canadian Forces Severance Pay (if applicable) based on the new rates effective at release on March 31, 2021.

Heyder and beattie class actions final settlement agreement

In 2019, National Defence reached an agreement to settle the Heyder and Beattie class actions, which among other things, offered compensation of up to $900 million to compensate class members.
As of November 30, the Claims Administrator has received almost 19,000 claims, over 5,000 of which have already been approved for initial payment or have been paid.
In these Estimates, National Defence is requesting $252.7 million for the Heyder and Beattie Class Actions Final Settlement Agreement.
These funds will be used to provide financial compensation payments to claimants and cover administration costs associated with the settlement claims process.
As a part of the settlement, we are also implementing several measures, including a voluntary Restorative Engagement Program.
This program will create a safe space for members to share their experiences and be heard, acknowledged, and validated.
On December 13, the Deputy Minister, the Chief of the Defence Staff, and I will offer a public apology to all current and former members of the Defence Team who have been affected by sexual misconduct, including harassment and discrimination.
This is part of our efforts to restore relationships with those who have been harmed.
With this settlement and apology, National Defence hopes to bring healing and acknowledgement to members who have experienced sexual misconduct.

Key Facts

Total claims received: 18,840 (as of November 29, 2021).
- 57% of claims are from women.
- 42% of claims are from men.
- 1% of claims are from individuals who identify as “other”.
Total number of claimants requesting to participate in Restorative Engagement: 4,834
Individual compensation: ranges from $5,000 to $55,000, depending on the nature of the incident, the severity of the harm suffered, and on how many class members submit claims.
- Class members who experienced exceptional harm and have been denied Veterans Affairs Canada benefits may be eligible for amounts up to $155,000.
The settlement provides:
- Financial compensation;
- The option to participate in a Restorative Engagement program; and,
- Several other measures aimed at culture change and addressing sexual misconduct in the Canadian Armed Forces, such as the survivor support consultations.

Details

In late 2016, and early 2017, six proposed class proceedings were filed on behalf of current and former Canadian Armed Forces members, claiming damages for gender-based discrimination, sexual assault and sexual harassment. The six actions were subsequently consolidated into two Federal Court cases: Heyder et al v. Canada (representing the female class) and Beattie v. Canada (representing the male class).
Plaintiffs for Heyder and Beattie were seeking financial compensation for eligible class members, as well as a variety of policy changes and reconciliation measures to be implemented by the Canadian Armed Forces, the Department of National Defence, and Veterans Affairs Canada.
Although not part of the class actions initially filed on behalf of Canadian Armed Forces members, the parties negotiated the inclusion of all current and former National Defence employees and Staff of the Non-Public Funds, Canadian Forces, to provide equal access to financial compensation to those who may also have experienced sexual misconduct in connection with their military workplace employment.
Between November 2018, and March 2019, the Government approved a settlement mandate and associated funding, up to $1.64 billion total, in relation to the Heyder and Beattie class action and the separate Frenette class action.
This funding was provided to cover the financial compensation amounts for each class action; administration costs for the Department of National Defence and Veterans Affairs Canada associated with the settlement and claims processes; and the costs associated with the Department of National Defence, Library and Archives Canada, and Veterans Affairs Canada to implement the policy measures and initiatives focused on reconciliation, survivor support, and culture change that were anticipated to be part of the Final Settlement Agreements.

Timeline of settlements process

May 25, 2020, to November 24, 2021: An 18-month claims period was open for class members to submit their claims.
November 25, 2019: Federal Court approved Final Settlement Agreement.
July 2019: The parties involved in the Heyder and Beattie Class Action signed a Final Settlement Agreement, which was approved by the Federal Court on November 25, 2019.
2016 to 2017: Seven former military members filed class action lawsuits against the Canadian Armed Forces for sexual assault, sexual harassment, and discrimination based on gender or sexual orientation.

The restorative engagement program

This voluntary program has the following goals:
- To create opportunities where claimants are supported to share their experiences, knowledge, and understanding of sexual misconduct and its causes and impacts;
- To create opportunities for representatives of the Department of National Defence and the Canadian Armed Forces to acknowledge, understand, and learn from claimants’ experiences of sexual misconduct and to take responsibility, individually and collectively, for its causes and responses;
- To create opportunities for claimants and Defence representatives to identify lessons learned and to take action, in real time, to contribute to broader Department of National Defence and the Canadian Armed Forces culture change efforts; and,
- To model, learn about, and build capacity for the use of a principle- based restorative approach as a response to harm and as a way to build an inclusive and respectful institutional culture now and into the future.

Expanded contributions to NATO

Canada’s commitment to NATO is unwavering.
To support these efforts, National Defence is requesting $63.9 million in these Estimates to support common funded programs under the NATO Contribution Program.
$32.6 million of the total funds will be allocated to the NATO Military Budget to support the International Military Staff, NATO’s Command Structure, as well as NATO operations and missions.
This includes support to the NATO Airborne Warning and Control System as well as Allied Ground Surveillance.
The remaining $31.3 million of the total funds will be allocated to the NATO Security Investment Program.
These funds will support various installations at NATO facilities, including navigational aids and automated information systems, which assist NATO activities and operations.
We will continue working with NATO Allies to enhance our collective security and promote peace and stability around the world.

Key facts

NATO Defence Spending:
- Canada’s forecasted NATO defence spending for Fiscal Year 2021-22 is $33.7B, which equates to 1.39% GDP.
- Canada’s forecasted defence spending by 2024 has increased to 1.52% of GDP from 1.48% forecasted in 2019. The recent fluctuations are almost exclusively the result of the economic impacts of COVID-19.
- Canada has increased its share of NATO’s commonly funded budgets to 6.9% in 2021 (from 6.4% in 2019).
- Canada is forecasted to spend 17.7% of defence spending on major equipment in 2021-2022, and to reach the 20% NATO threshold in 2023-2024.
Operations and Personnel Deployed:
- Canada actively contributes to several NATO missions including commanding the NATO battlegroup in Latvia and contributing to the NATO training mission in Iraq.
- As of 30 November 2021: Approximately 950 Canadian Armed Forces personnel participate in NATO operations.
- 2021: Commodore Bradley Peats commands Standing NATO Maritime Group One.
GBA+:
- One Gender Advisor is deployed on Operation REASSURANCE Land Task Force and one Gender Advisor on NATO Mission Iraq to ensure GBA+ aspects are integrated when planning, and running operations.
- November 2019 – November 2020: Lieutenant-General Carignan commanded NATO Mission Iraq.
- 2019: Commodore Josée Kurtz was the first woman to command Standing NATO Maritime Group Two.

Details

The North Atlantic Treaty Organization (NATO) Contribution Program is comprised of two NATO budgets and one program: the NATO Military Budget, the NATO Security Investment Program, and the NATO Other Activities Budget.
Canada’s contributions to NATO’s common sharing budgets have increased as a result of:
- Expanding NATO capabilities;
- The NATO Airborne Early Warning and Control Force;
- The implementation of the adapted NATO Command Structure; and,
- The delivery of the Global Hawks drones in 2020 under the NATO Alliance Ground Surveillance (NAGS) Force project.
Canada’s NATO operations include:
- Operation REASSURANCE (Europe)
- Operation IMPACT (Iraq)
- Operation KOBOLD (Kosovo)

Culture change

My top priority is to ensure that everyone in the Canadian Armed Forces and the Department of National Defence feels safe and protected.
That is why we have taken immediate action to enact survivor- centric and durable reforms.
For example, the Sexual Misconduct Response Centre has expanded its services to public service employees at National Defence as well as former Canadian Armed Forces members.
I have also accepted in full Justice Arbour’s interim recommendations, notably the transfer of sexual assault cases to civilian authorities.
As such, the Canadian Forces Provost Marshal and the Director of Military Prosecutions are engaged with federal, provincial, and territorial counterparts to implement Justice Arbour’s interim recommendation.
Furthermore, ongoing efforts to modernize the military justice system are mutually supportive of the important work being done on culture change.
We are also taking deliberate and coordinated actions at all levels of the organization to ensure we create a modern and inclusive Defence Team.
For example, increased vetting for past misconduct and evidence-based character assessments are now part of the selection process for senior leaders.
National Defence will continue to implement long lasting reforms and ensure our members live up to the values and ethos of the Canadian Armed Forces.

Key facts

National Defence has allocated $236.2M in funding (over the next five years) to eliminate sexual misconduct and gender- based violence in the military and support survivors, including:
- Additional support for enhancement of military justice system;
- Expanding SMRC services to the Defence Team and former CAF members across Canada;
- Implementing a peer support program;
- Developing character assessment and training;
- Enhancing research on prevention.
Justice Arbour: Currently conducting a review of National Defence to identify the causes for the continued presence of harassment and sexual misconduct within the organization.
- Justice Arbour provided interim recommendations to National Defence on October 20, 2021.
- Interim recommendations build on recommendation number 68 of the Justice Fish report which calls on “all sexual assaults and other criminal offences of a sexual nature under the Criminal Code, including historical sexual offences, alleged to have been perpetrated by a CAF member, past or present (‘sexual offences’) should be referred to civilian authorities.”
- The final Arbour report is expected to be delivered to National Defence in the spring or summer of 2022.
Bill C-77 will be fully implemented in 2022.

Details

April 2021: Announcement on Independent External Review
- Former Supreme Court Justice Louise Arbour is reviewing National Defence culture, including the military justice system’s policies, procedures, and practices, as well as performance evaluation and promotion systems.
- The review will also provide concrete recommendations on how National Defence can establish an independent external reporting system that meets the needs of those impacted.
April 2021: CDS/DM Directive on Culture Change:
- Creates new organization: Chief, Professional Conduct and Culture;
- Prioritizes listening to those affected by sexual misconduct, to improve supports and services;
- Directs the simplification and enhancement of reporting mechanisms, including for those external to the chain of command;
- Promotes improved data collection;
- Supports the work of external and independent reviews of National Defence and its culture; and;
- Creates a path to close out Operation HONOUR

Future fighter capability project (FFCP)

A modern fighter aircraft fleet is vital to protecting North American airspace and supporting our defence and security efforts at home and abroad.
That is why Canada launched an open and transparent competition to acquire 88 new advanced aircraft.
I am pleased to report that we are making significant progress on this complex procurement.
The Government recently completed the evaluation of submitted bids and determined that two bidders will continue on in the competition.
Over the coming weeks, Canada will finalize the next phase of the process and determine how to proceed with the remaining bidders.
Proposals are being rigorously assessed on elements of capability, cost, and economic benefits.
We are working towards awarding a contract in late 2022, with first aircraft delivery as early as 2025.
To prepare for the arrival of these aircraft, we have already taken steps to prepare for construction of some of the new fleet’s facilities in Bagotville and Cold Lake.
National Defence continues to work with industry partners to leverage Canadian expertise and support Canada’s aerospace and defence industry.
We are confident this competitive process will deliver the best results for the Canadian Armed Forces, while providing economic benefits for Canada.

Key facts

The procurement process is led by Public Service and Procurement Canada with oversight by an independent fairness monitor and third-party reviewer.
Estimated Budget: $15 – 19B.
Current Competition Status:
- Ongoing—Eligible suppliers remaining:
- Saab (Sweden); and
- Lockheed Martin (United States of America).
2021-2022 Main Estimates: National Defence requested $39.8M to continue the evaluation of bidders’ proposals, and conduct infrastructure design and site preparation activities.
Economic Benefits:
- FFCP eligible suppliers were required to submit economic benefits proposals outlining planned investments in Canadian industry that support Canada’s Value Proposition objectives.
- Anticipated construction of Fighter Squadron facilities will generate over 900 jobs.
GBA+: Bagotville and Cold Lake fighter squadron facilities are planned to include:
- Gender-inclusive washrooms and barrier free facilities;
- Cultural rooms to accommodate members of diverse backgrounds and faiths; and
- Nursing rooms.
Indigenous relations: The infrastructure design-builders in Bagotville and Cold Lake will prepare Indigenous benefit plans to support Indigenous procurement objectives.

Details

Future fighter capability project

In December 2017, the Government of Canada launched an open and transparent competition for the permanent replacement of Canada’s fighter aircraft fleet.
The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support.
This project will leverage Canadian capabilities and support the growth of Canada’s aerospace and defence industries.
In February 2018, the Government announced five eligible government-led Supplier teams, including:
- Dassault (France);
- SAAB (Sweden);
- Airbus (United Kingdom);
- Boeing (United States of America); and,
- Lockheed Martin (United States of America).
In November 2018, the Dassault (France) team informed Canada of its decision to officially withdraw from the competition, and in August 2019, the Airbus (United Kingdom) team also informed Canada that it was withdrawing. Only the three remaining Supplier teams were eligible to submit proposals under the FFCP competitive procurement process.
By July 31, 2020, the Government of Canada had received bids from all three suppliers eligible to participate in the FFCP competitive procurement process.
On December 1, 2021, the Government of Canada announced that following evaluation of the proposals submitted, 2 bidders remain eligible under the Future Fighter Capability Project competitive procurement process—SAAB (Sweden) and Lockheed Martin (United States of America).
Canada has implemented a Value Proposition that seeks to motivate generational investments in Canada’s aerospace and defence industries over the coming decades.
These investments will drive innovation, exports, and skills development in Canada’s Key Industrial Capabilities, including in such areas as In-Service Support, Aerospace Systems and Components, and Space Systems.

GBA +

Canada’s Industrial and Technological Benefits Policy on Defence Procurement now requires submission of Gender and Diversity Plans as part of the value proposition submission for projects of this scale.

Construction of fighter sqadron facilities

A $12.1 million design contract for a Fighter Squadron Facility in Bagotville was awarded on September 28, 2020.
A $9.2 million design contract for a Fighter Squadron Facility in Cold Lake was awarded on August 13, 2020.
Construction on both facilities is expected to begin shortly after the awarding of contracts for the Future Fighter aircraft in 2022.

Operation unifier (Ukraine)

Canada is committed to ensuring that Ukraine remains sovereign, secure, and stable in collaboration with NATO Allies and European partners.
Russia’s aggressive troop build-up along the Ukrainian border provides another clear reminder of the importance of this commitment.
Our Government is closely monitoring this situation and is working with key partners to discuss our concerns.
Approximately 220 Canadian Armed Forces members are currently in Ukraine under Operation UNIFIER, and are training Ukrainian security forces to enhance their capacity to respond to Russian aggression.
We also provide strategic advisors to deliver institutional support that advances Ukraine’s defence reform process and Euro- Atlantic integration, creating broader stability in the region.
Throughout all these efforts, National Defence is committed to ensuring that a gender and diversity lens is integrated into the planning and conduct of all operations.
Canada will continue to monitor the situation closely and provide support to help Ukraine remain sovereign, secure, and stable in the face of Russian aggression.

If pressed on training extremists in Ukrainian defence forces:

The Canadian Armed Forces is strongly opposed to all forms of racism and intolerance.
Our members are trained to identify trainees who hold extremist views, and deny training to any member of the Ukrainian forces who they believe to have racist or extremist ties.
A review on the effectiveness of current Canadian Armed Forces vetting procedures for training missions began in late October, and is anticipated to be completed by early 2022.
The Canadian Armed Forces is committed to ensuring that we have the proper safeguards in place to ensure that those who hold beliefs contrary to our values do not benefit from our training.

Key facts

Personnel: Deployed every six months.
- Number of personnel deployed: up to 220 CAF members deployed every six months.
- There are 220 CAF members in theatre today.
Mandate: Extended to March 31, 2022.
In 2021, Operation UNIFIER saw the first ever Canadian female-to-female transfer of command authority.
Since 2015: Canadian Armed Forces has trained over 30,000 members of Ukraine’s security forces in areas such as policing, explosive ordinance disposal, and field medicine.

GBA+:

One gender advisor is deployed on Operation UNIFIER.
September 2021: Canada’s Task Force hosted a Gender conference – attended by Ukraine security forces – to further the development of a gender curriculum and policies.

Examples of Canadian Armed Forces Assistance provided:

2014 – 2020: Canada supplied non-lethal military gear.
October 2020: The Royal Canadian Navy trained the Ukrainian Navy in diving, navigation, damage control, and tactical communications.
March 2021: Canadian Armed Forces provided cyber support to help enhance the security of Ukrainian systems.

Details

In 2015, Canada launched Operation UNIFIER in response to requests from the Government of Ukraine, with the intent to help Ukraine remain sovereign, secure, and stable. In response, the Canadian Armed Forces has been providing Ukrainian security forces with specialized training to help improve their capability and capacity and assist them towards NATO interoperability.
National Defence also provides institutional level support to help advance Ukraine’s defence reform process. Current support is focused on:
- Defence governance, including command and control;
- Senior level military professional development;
- Professional Military Education reform;
- Defence procurement; and,
- Defence policy.

Veterans Affairs (Lawrence MacAulay)

2021-22 Veterans Affairs Canada Directed Supplementary Estimates (B)

Issue

Due to the general election, the 2021-22 Supplementary Estimates (B) proceeded as a directed exercise.

Response

Veterans Affairs Directed Supplementary Estimates (B) reflect this government’s continued commitment to ensuring there is sufficient funding in Veterans Affairs Canada’s programs and services to support all eligible Veterans and their families who may come forward.
With the Supplementary Estimates (B), VAC’s budget will increase by $19.4 million, representing a 0.3% increase over current budget to a total of $6.298 billion
Over 90% of the Department’s budget represents payments to Veterans, their families and other program recipients.

Background

VAC’s budget will increase by $19.4 million, representing a 0.3% increase over current budget. VAC’s budget will increase from $6,298 million to $6,317 million in relation to the following transfers and adjustments:

[REDACTED]

Vote Transfers - $400K

$400K internal reallocation from Vote 1 to Vote 5 for the Veterans Emergency Fund
- This transfer will allow the Department to increase the current reference level for this program of $1M, to a total of $1.4M in order to meet forecasted demand.
- Similar transfers have been made in previous years in order to meet the increased client demand.

Disability Processing Times and Action Plan

Issue

The Department recognizes that the long-standing issue of processing times for disability benefits is unacceptable and reducing them is our top priority.

Response

The Government is fully committed to the health and well-being of Veterans and their families.
Between 2015-16 and 2019-20, Veterans Affairs Canada experienced a 40% increase in disability benefit applications, including an increase of more than 75% in first applications. However, in 2020-21, applications received returned to 2015- 16 levels, possibly due to the pandemic.
Veterans Affairs Canada released a strategy to address the long-standing issue of processing times for disability benefits decisions, invested $192 million, and hired more than 350 additional temporary employees, dedicated to the disability benefit decision-making process.
We have made progress, and have a better understanding of the challenges in processing disability benefits. We are continually looking for ways to accelerate the decision-making process.
We know there is more to be done – which is why we are working on a number of new initiatives to make more decisions faster and putting Veterans first.

Background

Current State (November 24, 2021):

On September 28, 2020, the Parliamentary Budget Office released a report on Disability Benefits Processing at Veterans Affairs Canada (VAC). The report focused on Public Service Capacity requirements to eliminate the backlog of applications beyond the 16- week service standard.
Year to date (Apr-Oct 2021), the average turnaround times are 42 weeks for First Applications; 10 weeks for Reassessments; and 28 weeks for Departmental Reviews.
In the last year (November 2, 2020 compared to November 1, 2021), there has been a 24% decrease in the total number of pending applications, and a 19% decrease in the number of applications beyond the service standard (i.e., backlog).

Veterans Affairs Canada Action:

Reducing processing times for disability benefit applications is our number one priority.
The Department published Timely disability benefits decisions: Strategic direction for improving wait times in June 2020, which set out a multi-pillar approach to reducing processing times. Since the release of the plan, we have made progress on a number of the initiatives.
The Government committed to more than $192 million over two years in additional funding (2020-2021 and 2021-2022), with a portion of these funds dedicated to putting our plan into action.
This additional temporary funding was used to extend resources from Budget 2018, and to hire 300 term staff to work on the most common applications and an additional 50 staff to provide further support.
In addition, the Department received approval to extend some trained staff for an additional year (2022-2023), and to develop more efficient application and decision- making processes using digital technologies.

Support for Military Sexual Misconduct Survivors

Issue

As part of the settlement of the Canadian Armed Forces-Department of National Defence Sexual Misconduct Class Action, and the requirement to fulfill legal obligations related to the implementation of the restorative engagement program under the final settlement agreement, Veterans Affairs Canada is actively working with the Department of National Defence and the Canadian Armed Forces to develop psychosocial supports for Veterans who have experienced military sexual trauma. This joint initiative focuses on the development of a CAF and VAC peer support program for survivors of military sexual misconduct.

Response

The Government of Canada recognizes the unique needs of survivors of sexual misconduct in the Canadian Armed Forces.
Veterans Affairs Canada places the highest priority on ensuring Veterans and their families, including survivors of military sexual misconduct, have the services they need when and where they need them.
Veterans Affairs Canada has a continuum of mental health supports and services available for survivors of military sexual misconduct.
We are ensuring survivors have access to the specialized services and supports required to appropriately address the impacts on their personal health and well- being. We are dedicated to meeting their needs.
We are actively working with the Department of National Defence to develop supports for Veterans who have experienced military sexual trauma.
The peer support program pilot is anticipated to launch Summer of 2022.

Background

Under a clear mandate to the Minister of National Defence in budget 2021, Veterans Affairs Canada (VAC) is actively working with the Department of National Defence to develop psychosocial supports for Veterans who have experienced military sexual trauma. This joint initiative focuses on the development of a CAF and VAC peer support program for survivors of military sexual misconduct, as part of the settlement of the Canadian Armed Forces - Department of National Defence Sexual Misconduct Class Action (also known as the Heyder- Beattie Class Action), and the requirement to fulfill legal obligations related to the implementation of the restorative engagement program under the final settlement agreement.

VAC places the highest priority on ensuring Veterans and their families, including survivors of military sexual misconduct, have the services they need when and where they need them. With the understanding that military sexual trauma impacts everyone differently, our commitment to supporting the diverse needs of survivors of sexual misconduct can be found in a number of areas:

At our 11 Operational Stress Injury Clinics across the country, there are multidisciplinary teams with expertise in military-related traumas;
As not all Veterans live in the major cities across Canada, there are nine satellite service sites to help Veterans access face-to-face services closer to where they live;
Veterans have access to a network of more than 12,000 mental health professionals across Canada, and the VAC Assistance Service offers Veterans one-on-one mental health services 365 days a year, 24/7.

Veterans and/or CAF members who have a physical or mental health condition related to military sexual trauma, such as Post Traumatic Stress Disorder, depression and/or physical conditions, are encouraged to apply to VAC for disability benefits. VAC has a dedicated unit to process these applications.

In March 2020, VAC announced its Office of Women and LGBTQ2 Veterans. The office was created in July 2019, and is identifying systemic issues specific to women and LGBTQ2 Veterans, and to advance gender equality, diversity and inclusion for all Veterans.

Veterans Affairs Canada is working closely with the Sexual Misconduct Response Centre, to expand its services to Veterans who experience military sexual trauma.

These initiatives are part of the implementation of supports announced in Budget 2021, that address broader Government of Canada objectives related to the National Action Plan to end Gender-Based Violence, and addressing sexual misconduct and culture change in the Canadian Armed Forces.

Veterans Affairs Canada Case Management

Issue

Demand for case management services continue to increase, which means caseloads for case managers remain high.

Response

The Government places the highest priority on ensuring Veterans and their families have the support and services they need, when and where they need it.
Veterans Affairs Canada (VAC) has increased funding for case management services, in response to growing demand, with now more than 16,000 Veterans being case managed.
Veterans Affairs Canada has hired more than 400 Case Managers since 2015.
Veterans are supported by their case managers to identify needs, set goals, and create plans to help them achieve their highest level of independence, health and well-being. It is a tailored service for each Veteran to respond to their unique and specific needs.
We are working to ensure that frontline staff spend more time in direct service to Veterans and their families.

Independent review:

Veterans Affairs Canada is committed to continue hiring additional case managers, and to improve case management services to the benefit of both the Veterans and the Case Managers.

Background

As of December 2020, the Veteran-to-case manager ratio is 33.1:1 (source: Veterans Affairs Canada December 2020 ).

Veterans Affairs Canada provides Case Management Services to support those facing complex challenges. It is a collaborative process between the client and Case Management Team to identify needs, set goals, and create a plan to help clients achieve their highest level of independence, health and well-being.

Our case management efforts are aimed at ensuring all Veterans receive the support they need, when they need it. Over the last number of years, we have approximately doubled the number of case managers in order to meet the increasing demands for Case Management Services.

In Budget 2018, as part of Service Excellence (Surge) we received temporary funding for additional case managers. Currently, there are 476 case managers (426 permanent and 50 temporary).

However, we recognize simply increasing staff numbers will not meet the increased demands for these services. As such, we implemented several initiatives which will improve efficiencies and case management practices, while ensuring the appropriate level of service is provided to Veterans and their families.

The implementation of Guided Support in December 2018 ensures Veterans with moderate needs have the appropriate supports in place provided by Veteran Service Agents, allowing Case Managers the capacity to focus on Veterans with more complex needs.

A screening tool implemented in January 2019 improves our ability to identify Veterans’ level of risk, needs and complexities so they can be triaged to an appropriate level of support.

A Case Management Renewal initiative will create a more balanced delivery model for case management services to Veterans. The initiative will introduce a new team approach, and improved tools and features from now until March 2022. The aim is to sustain the quality of Case Management Services by ensuring an interdisciplinary team works with Veterans so they receive the appropriate level of service based on their needs, risk and complexity.

In April 2021, we launched a new case management assessment, which uses digital initiatives to reduce administrative burden for case managers, thereby increasing their capacity to work directly with Veterans and their families.

Change of this magnitude takes time to implement. All of these strategies aim to create a more sustainable approach to Case Management Services, leading to a decrease in the ratios over the next few years.

Communications security establishment

supplementary estimates (B)

The Communications Security Establishment (CSE) plays a critical role in protecting Canada’s security, while safeguarding Canadians’ rights.
The CSE provides valuable foreign intelligence to inform the Government of Canada’s decision making and protect national security.
Its sophisticated cyber and technical expertise also helps identify, prepare for, and defend against threats to Canada and its cyber systems and networks.
CSE’s 2021-22 Supplementary Estimates B includes total funding of $47.3 million.

Key facts

Line Item’s included in CSE’s 2021-22 SEB

Funding to invest in Canada’s foreign intelligence in response to persistent threats ($31.7M); and,
- $30.8M composed of Personnel ($3.3M) and Operating ($27.5M)
- $0.9M for Statutory Employee Benefit Plan (EBP)
Funding to enhance the reliability and security of Government of Canada information technology networks ($15.6M).
- $15.1M composed of Personnel ($2.1M) and Operating ($13.0M)
- $0.6M for Statutory Employee Benefit Plan (EBP)

Details

Funding to invest in canada’s foreign intelligence in response to persistent threats

$31.7 million.
Funding will support greater insight on strategic priorities to persistent threats.
$15.6 million.
Funding will enhance and expand the Government of Canada’s existing network. It will also improve the robustness and capacity of the

Funding to enhance the reliability and security of government of canada information technology networks

Government of Canada’s connections to the Internet and to cloud service providers while providing the security posture (i.e., monitoring and defence capabilities) required to protect Government of Canada data and applications.

Atlantic Canada Opportunities Agency (Ginette Petitpas-Taylor)

Supplementary Estimates (B) 2021-2022 - ACOA

Issue

Can you highlight the details of the adjustments made to ACOA's Supplementary Estimates?

Response

As part of Supplementary Estimates (B), ACOA is requesting total authorities of $17.4 million to support expenditures under the Jobs and Growth Fund.
As the economies of the Atlantic provinces emerge from the pandemic, ACOA is shifting its focus from pandemic response to economic recovery, including delivering initiatives focused on driving a diverse and inclusive recovery, and supporting hard-hit sectors, businesses and communities in Atlantic Canada.
Budget 2021 provided ACOA with an envelope of $70 million under the Jobs and Growth Fund (JGF) to help create jobs, support inclusive and clean growth, and lift up struggling businesses and communities in Atlantic Canada.

Background

ACOA is only requesting a portion of the Jobs and Growth Fund (JGF), announced in Budget 2021, for this fiscal year – the balance of the JGF will be made available in fiscal year 2022-23.

Upon tabling, ACOA’s total Estimates to date will show as $429.7 million, an increase of $17.4 million over the authorities of $412.3 million approved to date. The explanation of the variance is as follows:

Increases of $16.6 million in grants and contributions authorities and $0.8 million in operating authorities resulting from funding to support small and medium-sized businesses, as announced in Budget 2021.

All other Budget 2021 initiatives (ARRI, TRF, CCRF, BEP), totaling $53 million, will be requested under Supplementary Estimates ‘C’. This does not preclude approval of projects under these initiatives. The Agency is able to cash manage until the end of March 2022.

Preparation and approvals

ACOA contact: Phil McComiskey, Principal Advisor, Issues Management and Parliamentary Affairs, 506-377-5731

Sector expert: Lyne Lirette-LeBlanc, Director General, Finance & Administration, 506-866- 7180

Sector approval: Stéphane Lagacé, Vice-President Finance and Corporate Services, 506-851-6438

ACOA Programming Update and Key Sectors - ACOA

Issue

What are the current statuses of ACOA regular programs?

Response

In addition to providing temporary COVID-19 measures, ACOA continues to deliver its regular programming.
ACOA implemented flexibilities in its program guidelines and tools to meet the needs of businesses and communities in the context of the pandemic.
In fact, ACOA contributes more than $230 million annually to the Atlantic Canadian economy through its regular program funding sources.
Over the last decade (2011-2021), ACOA approved an annual average of 1,248 projects. These projects further benefitted an average of 973 businesses located in 336 communities across Atlantic Canada.

Background

From April 1, 2021 to November 8, 2021, ACOA:
- Supported 420 projects totalling nearly $140 million through the Regional Economic Growth through Innovation (REGI) program and Business Development Program (BDP).
- Supported 150 projects totalling $24.7 million through the Innovative Communities Fund (ICF).
- Supported three projects totalling $1.3 million through the Community Futures (CF) program.
From April 2016 to March 2021, ACOA:
- Supported an average of 1,098 projects each year totalling almost $253 million through the Regional Economic Growth through Innovation (REGI) program and Business Development Program (BDP).
- Approved an average of 120 Innovative Communities Fund (ICF) projects with a total annual investment exceeding $36.6 million.
- Contributed $12.6 million annually across an average of 20 projects through the Community Futures (CF) program.

Since November 2015, for each dollar invested by ACOA, other sources of funding are investing $1.40.
The leveraged data is obtained from the Agency’s administrative database (QAccess).
All data related to ACOA-assisted firms and firms not assisted by ACOA is the latest available from Statistics Canada.
ACOA’s sectors of focus include: ocean, food, immigration, tourism, Indigenous economic development, start-up ecosystem, clean growth and advanced manufacturing. The Agency has adapted its approach to these sectors as a result of the COVID pandemic with specific emphasis on the lenses of digitization, workforce of the future, green economy and inclusion. While the pandemic has had significant impacts in key sectors of Atlantic Canada, companies are capitalizing on new realities to digitize, automate, diversify and attract new talent, and ACOA is there to help them achieve this with support from its regular programs.
ACOA regular programs include:

Regional Economic Growth through Innovation (REGI) – supports innovation- related projects to help scale-up and increase productivity of innovative businesses, and to develop regional ecosystems.
Business Development Program (BDP) – helps businesses start up, expand, modernize and improve their competitiveness. Focuses on regional priority sectors and non-innovation related projects.
Atlantic Innovation Fund (AIF) – encourages partnerships among private sector firms, universities, colleges and other research institutions to develop and commercialize products and services.
Innovative Communities Fund (ICF) – invests in strategic economic and sector development planning and infrastructure projects that stimulate the vitality of mainly rural communities in Atlantic Canada.
Community Futures (CF) program – helps a network of 39 Community Business Development Corporations (CBDCs) that provide access to capital and businesses services for SMEs and fills the gap in available financing and training for businesses in Atlantic Canadian rural areas.

The business survival rate of ACOA-assisted firms (after the crucial fifth year following start- up) was significantly higher than the survival rate of firms not assisted by ACOA by 36 percentage points (69% rate for ACOA-assisted firms; 33% rate for firms not assisted by ACOA), according to data released by Statistics Canada in 2020.
In 2019 (pre-pandemic), Atlantic Canada’s real GDP growth surpassed the national average (2.7% for Atlantic Canada vs. 1.9% for Canada).

Preparation and approvals

Prepared by: Phil McComiskey, Principal Advisor, Issues Management and Parliamentary Affairs, 506-377-5731

Sector contact: Hélène Robichaud, Director General Programs, (506) 851-6496

Sector approval: Daryell Nowlan, Vice-President Programs, Policy and Communications, 506- 851-3805

COVID Support Update - ACOA

Issue

What is ACOA doing to support Atlantic Canadian businesses during the COVID-19 pandemic?

Response

The Government of Canada said it will have Canadians’ backs – and the government is making investments to create jobs and help businesses across the economy come roaring back.
Through the Regional Relief and Recovery Fund (RRRF), ACOA is delivering nearly $254 million in support to Atlantic Canadian small businesses, including $99.6 million through Community Futures organizations across the region.
Additional COVID-19 relief and recovery measures being delivered through ACOA include:

$70 million under the Jobs and Growth Fund (JGF).
$48.5 million under the Tourism Relief Fund (TRF).
$1.15 million under the Women Entrepreneurship Strategy (WES).
The Atlantic portion of the Black Entrepreneurship Program (BEP) Ecosystem Fund to support the growth of Black entrepreneurship.
$42.7 million under the Canadian Seafood Stabilization Fund (CSSF).
$59.8 million under the Canada Community Revitalization Fund (CCRF).
$12.5 million under the Aerospace Regional Recovery Initiative (ARRI).
The Atlantic portion of the Regional Air Transportation Initiative (RATI).

Background

We are building on the work of ACOA to accelerate the growth of Atlantic Canada’s economy, create well-paying middle class jobs, strengthen local communities and grow innovative businesses in the region.
- CSSF: 150 applications received, 130 projects approved, $42.7 million fund was fully allocated
- J&G: 106 applications received, $7.2 million approved for 15 projects
- CCRF: 881 applications received, $9 million approved for 104 projects
- TRF: 228 applications received, $925,000 approved for 4 projects
- ARRI: $900,000 approved to support 1 project
- WES: $1.15 million allocated to 31 projects
- RATI: 14 applications received, $40 million approved for 13 projects
- BEP: $5.2 million approved to support 2 projects
ACOA has supported businesses across the region during the pandemic to pivot their operations. Here are a few examples:

Prince Edward Island

CCRF
- L'Exposition agricole et le Festival acadien de la région Évangéline inc. received $325,000 from the Canada Community Revitalization Fund (CCRF) to carry out infrastructure upgrades such as metal fencing, accessible washrooms and entrances with plans to complete work for the exposition and festival in September 2022.
CSSF
- Atlantic Aqua Farms Ltd. received $1 million through the Canadian Seafood Stabilization Fund (CSSF) to support the company’s expansion of a wet storage facility in rural PEI. This will allow the company to properly store oysters inside during the winter months and extend its shipping season to 12 months a year.

New Brunswick

RRRF
- Fredericton-based TechImpact received $3.1 million (non-repayable) under the Regional Relief and Recovery Fund. TechImpact will use the funds to launch Digital Boost 2.0 and help businesses accelerate the adoption of digital technologies to remain resilient and competitive. The project also includes the creation of the Collab Hub, a digital place to promote New Brunswick technology providers and foster collaboration within and beyond the local information technology (IT) sector.
CSSF
- Shediac Lobster Shop received $565,310 under the Canadian Seafood Stabilization Fund. This non-repayable contribution will help the company purchase equipment and materials, and enable site modifications to its lobster processing facility to meet COVID-19 health and safety requirements and respect physical distancing needs of employees.

Newfoundland and Labrador

RATI
- The St. John’s international Airport Authority (SJIAA) received $11.8 million from the Regional Air Transportation Initiative (RATI). This non-repayable contribution will enable the SJIAA to maintain operations and essential services and continue collaborating with various carriers to re-establish routes to the region, while at the same time maintaining 72 jobs.
TRF
- The Gros Morne Inn Inc. received a repayable investment of $450,000 through the TRF to enhance the quality of an existing tourism accommodations facility. The enhancements will be made to the building exterior, bedrooms, bathrooms, theatre/conference room, and other main rooms, including new furnishings, with the goal to improve the overall quality of the facility and enhance the atmosphere of a boutique inn.

Nova Scotia

RATI
- $2,700,000 – Sydney Airport Authority - Significant uncertainty exists for the Sydney Airport Authority as a result of COVID-19. This project will assist with operational requirements for a 12-month period.
CSSF
$500,000 – Clark’s Harbour Seafood Limited - Construct a new building and install equipment to cook and process lobster. This project will enhance Clark’s Harbour Seafood Limited’s productivity by installing a small processing line for cooking lower-grade lobster unfit for live export.
Of the nearly $254 million allocated to Atlantic Canada through the (RRRF), ACOA received $154 million to support Atlantic Canadian companies and business support organizations that could not access existing federal programs or that continued to experience difficulties after accessing other support measures.

To date, ACOA has received 879 RRRF applications requesting nearly $231 million in funding through Stream 1.
The expenditures for RRRF Stream 1 by province are: $48.2 million in Nova Scotia, 45.9 million in Newfoundland and Labrador, $32.1 million in New Brunswick and $16.3 million in Prince Edward Island.
Recognizing the importance of the Regional Relief and Recovery Fund in supporting local tourism businesses, the government has earmarked a minimum of 25 per cent of all the fund’s resources to support local tourism businesses, providing more than $500 million in program support through June 2021.

The RDAs set aside a combined total of $50 million from their regular programming in fiscal 2020-21 and 2021-22 to support the tourism sector.
- To this end, last year ACOA worked together with the four Atlantic Provinces to create the Atlantic Canada Tourism Recovery Initiative (ACTRI) to help them with local and domestic marketing campaigns, recognizing that the 2020 tourism season would be largely, if not exclusively reliant on local and regional visitors. Bilateral agreements are in place with each of the four provincial governments in Atlantic Canada. Each bilateral agreement is $1.125 million, with ACOA contributing $750,000 and the province contributing $375,000.
ACOA also supported organizations across Atlantic Canada to provide urban Main Street loan programs:
- Metro Business Opportunities (MBO) in Mount Pearl, NL, received approval for over 5.7 million to deliver the (MSRF);
- CBDC Central PEI received approval for $3.4 million to establish an to assist businesses in the Greater Charlottetown Area;
- the New Brunswick Association of Community Business Development Corporations received approval for $5.8 million to administer the urban Main Street Loan Initiative in the greater Fredericton, Saint John and Moncton areas; and
- the (CEED) in Halifax, NS, received approval for $3.8 million to set up and administer the Urban Main Street Loan Initiative for businesses in the Halifax Regional Municipality.
By the end of December 2020, ACOA deferred more than $50 million in repayments for 1,800 projects with 1,200 clients.
The Government of Canada launched the Regional Air Transport Initiative (RATI), worth $206 million over two years, and delivered by Canada’s Regional Development Agencies. This initiative helped Canada’s regional air travel network remain operational through these difficult times, provided support for critical airport and related ecosystem operations, business development and innovation, as well as customer experience enhancements to further the economic growth of regions as they adapt to the post-COVID reality and new requirements.
The Black Entrepreneurship Program (BEP) will improve Black Entrepreneurs’ access to ecosystem supports at the national and regional levels, increase their access to loan capital, and will improve and enhance access to data on Black entrepreneurship in Canada. The BEP will do this through:
- A $104.7 million Ecosystem Fund designed and delivered by the Regional Development Agencies (RDAs);
- A $6.5 million Black Entrepreneurship Knowledge Hub delivered by Innovation, Science and Economic Development Canada (ISED); and
- A $33.3 million Loan Fund for Black entrepreneurs delivered by ISED with the support of financial institutions.

Preparation and approvals

ACOA contact: Phil McComiskey, Principal Advisor, Issues Management and Parliamentary Affairs, 506-377-5731

Sector expert: Hélène Robichaud, Director General Programs, (506) 851-6496

Sector approval: Daryell Nowlan, Vice-President Policy, Programs and Communications, 506-851-3805

Canadian North Economic Development Agency (Dan Vandal)

CanNor Tourism Recovery Strategy

Issue

What has the Canadian Northern Economic Development Agency done to promote the recovery of the tourism sector in Canada’s territories?

Response

The Northern tourism industry was hit particularly hard by COVID-19 due to the territories’ reliance on international visitors.
The Canadian Northern Economic Development Agency (CanNor) immediately responded through relief funding which delivered $24.2M to the tourism sector, maintaining over 875 jobs across the territories.
Through the Tourism Relief Fund, CanNor will continue to support the tourism industry, helping to ensure the North is ready to welcome tourists from Canada and around the world once conditions are right.

Supplementary Messages

Through the Tourism Relief Fund, CanNor received $6.1M through Budget 2021 to support the advancement of national tourism priorities aligned with Canada’s Tourism Growth Strategy.
Indigenous tourism projects are important to Canada's economic recovery efforts and a priority under this relief funding. Because of this, CanNor, along with the other regional development agencies, will invest a minimum of $50M in Indigenous tourism initiatives across Canada.
In addition to COVID-19 specific support, CanNor continues to support the growth and recovery of the tourism sector by investing in small-scale infrastructure, the development of export-ready tourism operators, and strengthening local capacity.

Background

At the onset of COVID-19, Canada’s territories enacted strict border measures and travel restrictions to minimize the risk of introducing the virus into isolated northern communities. These measures helped to lessen the public health impact to the territories. However, they also resulted in a disproportionate blow to the North’s tourism industry, which relies heavily on visitors from outside the territories and outside of Canada. Destination Canada estimates the territories lost $364M in international visitor spending, excluding air fares, in 2020 alone.

Prior to the pandemic, tourism in the North was key to economic diversification and support the development of small and medium-sized enterprises and local jobs. However, the territories continue to experience perennial industry challenges, including lack of local infrastructure, insufficient number of export-ready tourism operators, and high transportation costs for travel and shipping.

Through the Tourism Relief Fund, CanNor is supporting the implementation of the Northwest Territories’ Tourism Restart Investment Program, and the Yukon’s Elevate 2.0 program, designed to provide recovery strategies catered to the unique tourism landscape of each territory. In Nunavut, CanNor will provide the Tourism Relief Fund directly to eligible recipients, and has engaged with the Tourism Nunavut and operators to support applicants.

Within its regular programming, CanNor continues to support the tourism sector. For example, through IDEANorth, CanNor provided $2.7M to Northwest Territories Tourism to update its core destination marketing activities, and $900K to Yukon First Nation Tourism and Culture to grow and market Yukon’s Indigenous culture and tourism industries to support their multi-year strategic plan. CanNor has also supported infrastructure projects with tourism potential in the territories.

As Canada emerges from the pandemic, the government will support a safe restart of the Northern tourism sector, leveraging each territory competitive advantages while continuing to address pre-pandemic gaps in the industry.

Economic Agency of Canada for the Regions of Quebec (Pascale St-Onge)

Tabling of Supplementary Estimates (B) 2021-2022 for Canada Economic Development for Quebec Regions (CED)

Issue

CED has requested $53.3 million, half of the funds announced in Budget 2021 to deliver the Canadian Community Revitalization Fund (CCRF) in Quebec, as part of Supplementary Estimates (B).

Response

As part of the Supplementary Estimates (B), Canada Economic Development for Quebec Regions received 53.3 million dollars in authorities for the Canadian Community Revitalization Fund, announced as part of the 2021 Budget.
The 2021-2022 Supplementary Estimates (B) therefore increase the grants and contributions budget by 50.9 million dollars, 1.9 million dollars in operating funds and 0.5 million dollars in statutory appropriations.

Additional Messages:

The Canadian Community Revitalization Fund (CCRF) will address the needs of communities to recover from the pandemic, stimulate local economies, create jobs and improve the quality of life of Canadians.
The Canadian Community Revitalization Fund (CCRF) is designed to help communities across Canada undertake community infrastructure projects and enhance existing infrastructure to help them recover from the effects of the COVID-19 pandemic.

Background

With a budget of $101.7 million in contributions and grants over two years for Quebec (national investment of $500 million over two years), the Fund aims to support non-profit organizations, municipalities and other community groups, as well as Aboriginal communities, to:
- build new community infrastructure and revitalize existing assets;
- bring people back to public spaces safely as health restrictions are eased;
- create jobs and stimulate local economies.
Among the stimulus initiatives announced in the 2021 Budget, this budget contains a portion for the CRFC.
- Infrastructure is a key priority for regional socio-economic development. While infrastructure needs were critical prior to the COVID-19 crisis, they were exacerbated during the pandemic. Seeking to recover from the pandemic, communities are working to rebuild their economies, pursue private sector growth, and position themselves for the future.
- At the time of making the adjustment request, CED's total budget for 2021-2022 was $439.7 million. The request represents 13% of the original grants and contributions budget, 4.4% of the operating budget, and 8.6% of the legislative items budget.

Parliamentary affairs office

Danielle Veilleux, Corporate Secretariat, Office of the DM/President, 514-226-7894

Preparation and approval

Prepared by: Karina Bazinet, Corporate Finance Branch/Budget Planning, Financial Management and Systems, 514-966-1452

Sector contact: Karina Bazinet, Corporate Finance Branch/Budget Planning, Financial Management and Systems, 514-966-1452

Approval: Mathieu Paquette, Corporate Finance Branch/Director General, 514-222-1499

Sector approval: Maxime Garon, Vice-President Corporate Services, 514-515-7000

Canada Economic Development for Quebec regions’ (CED) contribution to the economic recovery following the COVID-19 pandemic

Issue

CED is actively contributing to COVID-19 economic recovery measures in Quebec. Through recovery initiatives announced in Budget 2021, CED supports non-profit businesses and organizations, with a specific focus on the hardest-hit sectors, such as tourism.

Response

Canada Economic Development for Quebec Regions is actively involved in the Government of Canada’s efforts to support businesses in their recovery and long- term prosperity.
In addition to its regular programs, Canada Economic Development for Quebec Regions has implemented 5 temporary initiatives, for a total of over 542 million dollars in funding, to help Quebec businesses come out of the pandemic stronger than ever.
Canada Economic Development for Quebec Regions supports sectors that have been hard hit by the pandemic, such as aerospace, tourism and major festival sectors.

Supplementary response:

CED supports communities across Quebec who want to enhance their vitality and contribute to social and economic cohesion.
Through both its temporary initiatives and regular programs, CED is contributing to a greener, more inclusive recovery and helping ensure that we build back better from the pandemic.

Background

Recovery initiatives announced in Budget 2021 and implemented by CED:

Jobs and Growth Fund (JGF)

Aims to help businesses, and the organizations that support them, build resilience and grow
$135.8 million budget for Quebec

Aerospace Regional Recovery Initiative (ARRI)

Aims to help the aerospace industry, and SMEs in particular, emerge from the pandemic with the ability to compete on the world stage
$89.7 million budget for Quebec

Canada Community Revitalization Fund (CCRF)

Aims to help communities rebound from the effects of the pandemic through projects that involve adding community, cultural and sports facilities and public spaces, or upgrading existing infrastructure
$101.7 million budget for Quebec

Tourism Relief Fund (TRF)

Aims to help tourism businesses and organizations overcome the impacts of the pandemic and position themselves going forward
$115.1 million budget for Quebec

Major Festivals and Events Support Initiative (MFESI)

Aims to help tourism businesses and organizations overcome the impacts of the pandemic and position themselves going forward
Targets festivals or events with $10 million in revenue in 2017, 2018 or 2019
The following festivals and events are eligible under the MFESI: Osheaga, Carnaval de Québec, FrancoFolies de Montréal, Festival Western de Ste-Tite, Festival d’été international de Québec, Montreal International Jazz Festival, Just for Laughs, ComediHa! Fest-Québec, National Bank Open (Rogers Cup Montréal – Tennis Canada)
$100 million budget for Quebec

Example of a project supported by the recovery initiatives:

JGF: CED awarded a $2,250,000 repayable contribution to Innomalt Inc., a Bécancour malting plant that specializes in the production of high-quality, pesticide-free organic malt. CED’s assistance will serve to fund the acquisition and installation of equipment to ensure the business’s growth. Besides contributing to the transition to a green economy, the project will help develop and strengthen the agri-food industrial sector, considered strategic at the national level.

Parliamentary affairs office

Danielle Veilleux, Corporate Secretariat, Office of the DM/President, 514-226-7894

Preparation and approval

Prepared by: Bruno Martin, Strategic Partnerships Branch, 514-451-6749

Sector contact: Jean-Philippe Brassard, Strategic Partnerships Branch, 514-283-0703

Sector approval: Marie-Claude Petit, Vice-President, Operations, 514-283-3510

Achievements of Canada Economic Development for Quebec regions (CED)

Issue

With its 12 business offices located across Quebec, CED is the key federal partner for regional economic development in Quebec. Through its regular and temporary programs CED supports regional innovation, the growth of SMEs and the vitality of Quebec communities.

Response

Canada Economic Development for Quebec Regions is the key federal partner for regional economic development in Quebec.
Since November 2015, Canada Economic Development for Quebec Regions has approved over 4,400 projects, amounting to a total of more than 2.2 billion dollars in funding that has generated 9.6 billion dollars in investments and helped create or maintain over 75,000 jobs.
Through its 12 community-focused business offices located across Quebec, CED assists businesses and the regions with a view to boosting the prosperity of our economy and our communities by supporting projects that generate long-term economic benefits.

Supplementary response:

CED acts as an accelerator of economic growth: its interventions support regional innovation, the growth of SMEs and the vitality of Quebec communities.
CED’s interventions are aligned with Government of Canada priorities:
- $764 million for innovation projects
- 263.7 million for clean tech projects
- $268.9 million for tourism projects
- $50.8 million for Indigenous projects
- $85.5 million for women entrepreneurship projects

Background

CED’s mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate.
Through its regular programs and various initiatives, CED has played a key role in the delivery of federal COVID-19 emergency response measures.

Examples of projects funded by CED

Innovation: In 2019, CED awarded a $300,000 repayable contribution to Boréas Technologies, a startup company in the microelectronics sector that specializes in the design and sale of piezoelectric control circuits capable of powering touchpads on a computer screen. CED’s funding targeted the international commercialization of piezoelectric control circuits.
Clean tech: CED authorized a $544,342 repayable contribution for Motrec International, a manufacturer of electric industrial vehicles made of steel, based in Sherbrooke. The funding awarded in 2019 enabled Motrec to integrate digital technologies for the development of a functional prototype of an auto-steer electric industrial tractor.
Tourism: In 2019, CED awarded a non-repayable contribution of $228,000 over three years (2019–2022) to the Société touristique des aboriginals du Québec (STAQ) for the implementation of its marketing plan and the development of Indigenous tourism products.
Indigenous peoples: In 2018, CED authorized a $262,120 repayable contribution for the startup of Innuberge, a three-star accommodation facility that plans to offer ecotourism activities in the community of Unamen Shipu on the Lower North Shore. The project involves the acquisition and installation of high-end prefabricated chalets and the construction of a multi-purpose pavilion.
Women entrepreneurship: Staca Inc., which received funding in 2019 under the Women Entrepreneurship Strategy (WES), is a Jonquière-based business specializing in the recovery and treatment of industrial residues from aluminum smelters. CED authorized a $100,000 contribution to help the business grow and improve its productivity through the acquisition of production equipment.
Cultural communities: CED funds the Fonds afro-entrepreneurs in order to provide entrepreneurs from black communities in Quebec with support services tailored to their business’s specific phase of development (start-up, growth, upscaling, structuring, etc.). The $2,995,600 non-repayable contribution was awarded through the Black Entrepreneurship Program Ecosystem Fund and covers a four-year period.

Parliamentary affairs office

Danielle Veilleux, Corporate Secretariat, Office of the DM/President, 514-226-7894

Preparation and approval

Prepared by: Bruno Martin, Strategic Partnerships Branch, 514-451-6749

Sector contact: Jean-Philippe Brassard, Strategic Partnerships Branch, 514-283-0703

Approved by: Simon Labrecque, Regional Operations Branch, 418-648-3019, and Jean-Philippe Brassard, Strategic Partnerships Branch, 514-283-0703

Sector approval: Marie-Claude Petit, Vice-President, Operations, 514-283-3510

Canada Economic Development for Quebec Regions (CED) measures and programs in response to COVID-19

Issue

CED has supported a number of businesses and economic non-profit organizations affected by the COVID-19 pandemic. To do so, CED implemented a number of temporary emergency measures, in addition to its regular programs. This support has helped SMEs restructure their operations, manage their cash flow or restart their businesses, and has also assisted sectors and groups that were harder hit.

Response

Canada Economic Development for Quebec Regions is implementing a number of federal measures to help businesses and regions affected by the economic impacts of the pandemic and to assist them in their recovery.
Canada Economic Development for Quebec Regions has supported 1,009 projects, for a total of over 378 million dollars in authorized assistance, via emergency relief measures targeting businesses and organizations in need.
Through its initiatives, Canada Economic Development for Quebec Regions has assisted thousands of businesses and organizations, thus helping to maintain over 47,000 jobs.

Supplementary response

The Regional Relief and Recovery Fund (RRRF) provides funding for liquidity needs and technical assistance. CED has awarded $316.5 million in funding through this initiative.
Support from Canada Economic Development for Quebec Regions has also helped SMEs restructure their operations, manage their cash flow or restart their businesses, and has assisted sectors and groups that have been hard hit, such as the tourism sector and women entrepreneurs

Background

Emergency measures implemented by DEC

Regional Relief and Recovery Fund (RRRF)

Financial and technical support for small and medium-sized businesses (SMEs) and non-profit organizations (NPOs).
Budget of $324.6 million for Quebec, of which $316.5 million ($196.5 million directly from CED and $120 million through the 57 Community Futures Development Corporations [CFDCs] and the 10 Business Development Centres [BDCs]) has been allocated to SMEs and NPOs that are located in rural areas and that have been affected by the economic impacts of COVID-19.

Canadian Seafood Stabilization Fund (CSSF)

Aims to assist businesses that process and prepare seafood products, including aquaculture processing businesses and the organizations that support them.
Budget of $9.1 million for Quebec, of which $4.1 million has been allocated; other projects are in the process of being analyzed.

Regional Air Transportation Initiative (RATI)

Aims to assist regional air transportation ecosystems affected by the economic impacts of COVID-19.
$57.5 million budget for Quebec, allocated to 17 projects.

Women Entrepreneurship Strategy (WES)

Recognizing that women entrepreneurs have been particularly hard hit by the COVID-19 pandemic, CED has awarded a total of $3.14 million in additional funding to help women in business address the impacts of COVID-19 (e.g., business model adjustment, human resources).

Regional Economic Growth through Innovation (REGI)

Through its regular programs, CED has helped manufacturing companies respond to the call from the Government of Canada by refocusing their production to meet the need for medical supplies and health products.

Example of project funded by CED:

Regional Air Transportation Initiative (RATI): In 2021, CED provided the Régie intermunicipale de l’aéroport régional de Mont-Joli with a $7,177,500 non-repayable contribution to upgrade airport facilities, ensure compliance with health measures, and hire an employee to implement solutions to meet the air transportation needs of communities In the Bas-Saint-Laurent region.

Parliamentary affairs office

Danielle Veilleux, Corporate Secretariat, Office of the DM/President, 514-226-7894

Preparation and approval

Prepared by: Bruno Martin, Strategic Partnerships Branch, 514-451-6749

Sector contact: Jean-Philippe Brassard, DG, Strategic Partnerships Branch, 514-283-0703

Approved by: Simon Labrecque, DG, Regional Operations Branch, 418-648-3019, and Jean Philippe Brassard, DG, Strategic Partnerships Branch, 514-283-0703

Sector approval: Marie-Claude Petit, Vice-President, Operations, 514-283-3510

Date modified:: 2022-04-04

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