EX-99.C-4 2 m18340a2exv99wcv4.htm PRESS RELEASE exv99wcv4
 

Exhibit C-4
Ottawa, May 13, 2005
2005-035
Minister of Finance Outlines Fiscal Impact of Recent Government of Canada Initiatives
Minister of Finance Ralph Goodale today released an accounting of the fiscal impact of all Government of Canada initiatives announced since the budget was tabled on February 23, 2005. These total $9 billion over five years.
“There is no doubt that we remain on track to achieve balanced budgets or better each and every year and to reduce the federal debt as a share of the economy to 25 per cent by 2014–15, as indicated in the last budget,” said Minister Goodale. “This commitment is backed by $28.5 billion in contingency reserves and economic prudence over the next five years.”
The initiatives announced in recent weeks, some of which overlap and some of which were funded in Budget 2005, are as follows:
    $4.5 billion over the next two years related to initiatives in Bill C-48 for post-secondary education and training, affordable housing, the environment and foreign aid.
 
    $5.7 billion for a number of shared initiatives with the Province of Ontario over the next five years. Some of these initiatives are covered by Bill C-48 or by funds set aside in Budget 2005.
 
    $350 million in lower airport rents until 2009–10. Over the lifespan of the rental agreements (most of which have remaining terms of about 50 years), Canadian airports will pay $8 billion less.
 
    $618 million over the next five years for other initiatives outlined in the table below.
The total cost of the above measures is $11.2 billion. However, $2.2 billion of this amount was funded in Budget 2005 or represents the overlap between Bill C-48 and the Ontario agreement. As a result, the net fiscal cost of these measures is $9.0 billion.
Measures outlined in Bill C-48 will be funded from any budgetary surplus that exceeds $2 billion in this fiscal year and the next. Other new spending commitments will be funded through the use of economic prudence, where appropriate, as well as the reallocation from existing programs, or increased revenues should they materialize.
The table below provides a detailed breakdown of the fiscal impact of these measures over the next five years.
In releasing this information, Mr. Goodale said, “It is important that Canadians have an accurate understanding of the impact of recent decisions on the financial position of the Government of Canada.”
                                                                                
For further information, media may contact:
     
Pat Breton
  David Gamble
Press Secretary
  Public Affairs and Operations Division
Office of the Minister of Finance
  (613) 996-8080
(613) 996-7861
   

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Initiatives Announced Since the 2005 Budget
                                                 
    2005-06   2006-07   2007-08   2008-09   2009-10   Total
                    ($ millions)                
Bill C-48
                                               
Post-Secondary Education and Training
    750       750                               1,500  
Affordable Housing
    800       800                               1,600  
Environment and Energy Efficiency for Low-Income Housing
    450       450                               900  
Foreign Aid
    250       250                               500  
 
                                               
     
Total
    2,250       2,250                               4,500  
 
                                               
Canada-Ontario Agreement
                                               
Higher Education
    200       200       350       400       400       1,550  
Housing and Infrastructure
    150       150       100       100       100       600  
Cities
    149       149                               298  
Labour Market Development Agreement and Immigration
    80       300       400       560       634       1,974  
Climate Change
            40       140       158       200       538  
Corporate Tax and Meat Inspection
    10       80       350       250       100       790  
 
                                               
     
Total
    589       919       1,340       1,468       1,434       5,750  
 
                                               
Airport Rents Reduction
            48       72       97       132       349  
 
                                               
Other
                                               
Wage Earner Protection Program
    32       32       32       32       32       160  
Canadian Museum for Human Rights
    10       10       10       20       20       70  
Prince Rupert Port Upgrade
    10       20                               30  
Global Centre for Pluralism
    30                                       30  
International Fishing Governance
    6       7       7                       20  
Quebec City 400th Anniversary Celebrations
    11       34       45       19               110  
Measures to Aid Darfur
    120       78                               198  
 
                                               
     
Total
    219       181       94       71       52       618  
 
                                               
Total
    3,058       3,399       1,506       1,636       1,618       11,217  
 
                                               
Less
                                               
Funding Included in 2005 Budget
    (130 )     (171 )     (231 )     (277 )     (348 )     (1,157 )
Overlap With Bill C-48*
    (499 )     (499 )                       (998 )
     
 
Total
    (629 )     (670 )     (231 )     (277 )     (348 )     (2,155 )
 
                                               
Net Fiscal Cost of New Initiatives**
    2,429       2,728       1,275       1,359       1,270       9,062  

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*   Measures for post-secondary education, housing and cities.
 
**   Funding for agricultural sector of $1 billion and for mountain pine beetle of $100 million (funded in the 2005 budget) accounted for in 2004-05.
 
Note: The financial support for C Series commercial aircraft program of up to $350 million was provided for in the 2005 budget.

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