Question Period Note: Public Services and Procurement Canada 2020 to 2021 Main Estimates

The 2020 to 2021 Main Estimates were re-tabled in Parliament on September 30, 2020, following the prorogation. Public Services and Procurement Canada (PSPC) is seeking $4,048.3M, which is a net decrease of $187.2M from the $4,234.4M sought in the Main Estimates for 2019 to 2020.

• PSPC continues to deliver high-quality services and programs to support the delivery of government priorities and core departmental responsibilities
  • PSPC is seeking just over $4 billion in the Main Estimates for 2020 to 2021 ($4,048.3M)
  • This represents a 4% decrease over the previous year’s Main Estimates, largely due to the sunset of Budget 2019 funding for the Government of Canada pay system and real property repairs and maintenance. It is also attributable to the completion of two major projects – the West Block Visitor Welcome Centre (Phase I) and the Senate of Canada Building
  • New investments include additional funding for:
  • Predictable Capital Funding
  • Federal Science and Technology Infrastructure Initiatives (Laboratories Canada)
  • Price and Volume protection
  • Modernization of Les Terrasses de la Chaudière Complex
  • Rehabilitation of the West Memorial Building

If pressed on increases of the Predictable Capital Funding:

• There is an increase of $216.8M to improve the management of the PSPC’s portfolio of assets
• As announced in Budget 2019, this funding will allow PSPC to establish a long-term predictable capital funding strategy to manage its portfolio of assets
• Funding in fiscal year 2020 to 2021 will allow PSPC to undertake various projects
  • More specifically, it will enable PSPC to carry out capital infrastructure projects related to the Alaska Highway, 875 Heron Road and the Lester B. Pearson Buildings located in Ottawa, Ontario, and Esquimalt Graving Dock and other engineering asset projects to keep assets safe, operational and meet capacity requirements

If pressed on increases of the Federal Science and Technology Infrastructure Initiatives:

• There is an increase of $101.1M for renewing federal laboratories to provide federal scientists with facilities and tools that enable collaboration and support the important work they carry out for Canadians
• Currently, half of federal laboratories are more than 40 years old and with advances in science and technology, federal science facilities need to be upgraded so Canada can produce the evidence needed to keep the air clean, food safe and water fresh
• PSPC is working with federal science departments and agencies to implement an ambitious 25-year plan that will revitalize the Canadian science sector and bring together science-based departments and agencies to share facilities, develop synergies between programs, facilitate collaborative research and support scientific excellence
• Funding to be received in the Main Estimates will allow activities such as:
  • Establishing management and IM/IT strategies and processes
  • Building collaborative and successful partnerships with science hubs
  • Repeatable laboratory design framework
  • Sites selection for all projects with the LC Phase 1
  • Commencement of the design for the Mississauga project and the construction for the Hamilton project

If pressed on increases of the Price and Volume Protection:

• There is an increase of $77.5M to protect PSPC from non-discretionary price and volume fluctuations associated with crown-owned building and leased space
• Every year, a funding adjustment is requested to account for price and volume fluctuation on expenses associated with the management of federal real property (e.g. utilities, rent)
• The protection is to account for inflation and price variation in the space requirements for real property items for which PSPC has very little or no control (cost of rent, gas, electricity and the number of public servants to accommodate)
  • In return for this protection, any unspent funds is returned to the fiscal framework
  • The methodology was approved in 2015 and is subject to a review on a 5 year cycle

If pressed on increases for the Les Terrasses de la Chaudière:

• There is an increase of $57.8M for Les Terrasses de la Chaudière Complex to modernize the exterior envelope and address the health and safety concerns associated with the deteriorating exterior brick cladding
• The funds are being used to cover all costs related to the design and delivery of the replacement envelope of the complex. This includes costs related to project management; the provision of architectural and engineering consulting services to design the new replacement envelope, as well as construction services
• The funding will enable PSPC to replace the current brick clad panels with a new building envelope to address the health and safety concerns associated with the failing building envelope brick cladding

If pressed on increases for the West Memorial Building:

• There is an increase of $50.9M for the rehabilitation of the West Memorial Building (implementation phase) in order to provide interim accommodation during renovation of the Supreme Court of Canada Building
• The Government takes the integrity and safety of its heritage buildings seriously and has committed to invest over $1 billion in the Supreme Court of Canada and the West Memorial Buildings’ rehabilitation
• The project will update the West Memorial Building to accommodate the daily operations of all occupants of the Supreme Court of Canada Building, who will occupy the West Memorial Building from 2023 to 2028
• This project will upgrade and conserve important symbolic spaces while supporting the uninterrupted operations of the Supreme Court and Federal Judiciary
• The project includes:
  • The major rehabilitation of heritage fabric, including exterior walls, windows and interior finishes
  • The major rehabilitation of mechanical, electrical and life safety systems
  • The modernization of information technology, multimedia and security systems
  • The seismic upgrading to current building code requirements
  • The interior fit-up for occupants of the Supreme Court of Canada Building
• The investment in this rehabilitation project will create jobs for the middle class by creating employment opportunities for Canadians in construction, manufacturing, and professional services
• The funding to be received in the main estimates will be used to continue the site preparation work and start the construction

If pressed on decreases:

Decreases of funding totaling $690.6M are mainly due to:

Government of Canada pay system

• There is a decrease of $277.9M for the Government of Canada pay system as a result of the sunset of funding from Budget 2019. New funding for 2020 to 2021 was received in Supplementary Estimates A

Real Property Repairs and Maintenance

• There is a decrease of $275.0M for real property repairs and maintenance as a result of the sunset of Budget 2019 funding to maintain current office accommodation and related real property service levels to federal departments and agencies. New funding for 2020 to 2021 has been identified in Supplementary Estimates B

Long Term Vision and Plan

• There is a decrease of $137.7M for the Long Term Vision and Plan as a result of the completion of two projects: the West Block Visitor Centre phase I and the Senate of Canada building

The Main Estimates outline the opening budget required for the department to deliver on its programs for the upcoming fiscal year (April 2020 to March 2021).

The Estimates are divided into departmental “Votes” which summarize the financial requirements for an expenditure category: operating, capital, or grants and contributions.

Funding for the Main Estimates is provided through two different supply bills:

• the interim supply bill authorizes the funding of federal organizations for the first three months of the fiscal year (voted in March and made available to Departments on April 1). Due to the impacts of the COVID-19 response on parliamentary business, a second interim supply was approved on June 17, 2020 for 2020 to 2021
• the full supply bill authorizes the balance of the funding presented in the Main Estimates. (voted in June and made available to Departments shortly after). Due to the impacts of the COVID-19 response on parliamentary business, full supply for Main Estimates is expect in December

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