Table of Contents - Previous - Next -

A Better Canada

Budget 2007 invests in the things that make Canada great and reflect the values and beliefs that define us as a nation. The Government is taking important steps to clean up our environment, invest in Canadians, improve our health care system and celebrate our culture.

Ensuring a Cleaner, Healthier Environment

Canada is the most beautiful country in the world, and it is our responsibility to protect it. It is only through a healthier environment that Canadians can create the quality of life and standard of living to which we all aspire. That is why Budget 2007 invests $4.5 billion to clean our air and water, reduce greenhouse gases, combat climate change, as well as protect our natural environment. Initiatives to ensure a cleaner, healthier environment include:

• Supporting major clean air and climate change projects with provinces and territories through the $1.5-billion Canada ecoTrust for Clean Air and Climate Change.


• Rebalancing the tax system to encourage investments by the oil sands and other sectors in clean and renewable energy while phasing out accelerated capital cost allowance for oil sands development.


• Providing a performance-based rebate program offering up to $2,000 for the purchase of a new fuel-efficient or efficient alternative fuel vehicle.


• Introducing a new Green Levy on "gas guzzlers."


• Providing $36 million over the next two years to help get older polluting vehicles off the road.


• Dedicating $2 billion over seven years for the production of renewable fuels.


• Hiring 50 per cent more environmental enforcement officers.


• Protecting species at risk by investing $110 million over two years to better implement the Species at Risk Act.


• Investing $10 million over two years to create or expand protected areas in the Northwest Territories. This will preserve an important part of our boreal forests and the habitat for some of the largest caribou herds in the world.


• A new National Water Strategy, which includes:

• A commitment to working with the provinces on tougher, more stringent regulations and controls to address municipal wastewater effluents.

Investing in Canadians

When Canada is strong, it has the means to protect, defend and support its people. Helping others is central to who we are as Canadians. That is why Budget 2007 is:

• Introducing a new Working Income Tax Benefit of up to $500 for individuals and $1,000 for families. This will reward and strengthen incentives to work for an estimated 1.2 million low-income Canadians, helping them over the "welfare wall."


• Helping parents and others save toward the long-term financial security of persons with severe disabilities with a new Registered Disability Savings Plan.


• Creating an Enabling Accessibility Fund with $45 million over three years to contribute to the cost of improving physical accessibility for persons with disabilities.


• Eliminating the capital gains tax for charitable donations of publicly-listed securities to private foundations.


• Supporting measures to help:

Investing in the Health of Canadians

The Canadian health care system is one of the things that make Canada the modern, compassionate and prosperous country we love. Budget 2007 takes action to help reduce wait times and to modernize Canada’s health system through initiatives such as:

• Investing an additional $400 million for Canada Health Infoway to support early movement towards patient wait times guarantees through the development of health information systems and electronic health records.


• Providing up to $612 million to support jurisdictions that have made commitments to implement patient wait times guarantees.


• Providing $30 million over three years for patient wait times guarantees pilot projects.


• Providing $300 million for a vaccine program to protect women and girls against cancer of the cervix.


• Providing $2 million to the Canadian MedicAlert Foundation to help the No Child Without program provide free MedicAlert bracelets to children.


• Establishing the Canadian Mental Health Commission, with $10 million over the next two years and $15 million per year starting in 2009–10. This commission will lead the development of a national mental health strategy.


• Providing an additional $22 million per year to help the Canadian Institute for Health Information build on its reputation as a world leader in providing timely, accurate and comparable health information.

Celebrating Our Culture

As Canadians, we are proud of our history and culture and the things that make us unique. Canada is home to natural and historic treasures that are precious to Canadians and a part of who we are. That’s why Budget 2007 strengthens Canada by:

• Providing $30 million per year in support for local arts and heritage festivals that engage Canadians in their communities through the expression, celebration and preservation of local culture.


• Providing $5 million per year to hire qualified summer interns to work in Canadian museums.


• Encouraging youth participation in Canadian heritage sports like Canadian three-down football and lacrosse with an investment of $1.5 million over the next two years in the new Canadian Heritage Sport Fund.


• Expanding funding for official languages minority communities with an additional $30 million over the next two years.


• Supporting the 2008 Francophonie Summit in Quebec City with $52 million.


• Creating Canada’s National Trust, based on the successful model of the National Trust in the United Kingdom, which will operate independent of government and encourage Canadians to protect important lands, buildings and national treasures.

A Cleaner, Healthier Environment

Canada has a comprehensive, results-oriented ecoAction plan to clean our air, help address climate change and create a healthier environment. It is only through a healthier environment that Canadians can create the quality of life and standard of living to which we all aspire, within the context of today’s global economy.

The three E’s of the environment, the economy and energy are inextricably linked. A strong, modern economy requires people and businesses to be energy-efficient. As an emerging energy superpower, we can fuel our own economy, providing the means to afford things that matter to Canadians. Only with a clean and healthy environment will we attract and keep the modern, knowledge-based jobs we need. The global imperative to address climate change will require that Canadian industry invest in infrastructure and new technologies to produce and use energy more efficiently, thereby increasing our resource productivity, the sustainability of our economy and our quality of life.

As Canadians, we all know the importance of personal responsibility when it comes to the environment. Government has a role to play as well. As part of the Government’s ecoAction plan, Budget 2007 contains 20 initiatives to encourage environmentally conscious action. In addition, Budget 2007 includes $8 billion to extend the Gas Tax Fund at $2 billion per year for another four years, which will help municipalities invest in areas such as urban transit, and water and wastewater treatment projects (included in Chapter 5).

 

Budget 2007 includes measures to reinforce actions already taken in the past year to improve air quality and help address climate change with new investments in cleaner energy development and in the use of cleaner transportation. It also includes significant investments to support conservation and takes immediate steps on a new National Water Strategy.

Clean Air and Climate Change

For the first time ever, the Government’s clean air agenda makes greenhouse gas emissions and air pollution from major industry sectors subject to regulation. It will also impose regulations on fuel consumption for light-duty vehicles for transportation. The clean air agenda is a move away from voluntary approaches and a patchwork of regulatory processes across the country, toward a national and mandatory system that will achieve real results.

As part of this agenda, the Government will soon announce short-term targets for reductions in greenhouse gas emissions and air pollutants from key industrial sectors. The Government has also committed to establish medium- and long-term targets for additional reductions. The Government has established a long-term goal of reducing greenhouse gas emissions by 45 to 65 per cent from 2003 levels by 2050. This is an ambitious goal that will be met through the actions of businesses in every sector of the economy, of all levels of government and of individual Canadians.

The new regulatory framework for industry will provide a strong foundation for the Government to begin working with the private sector, provinces and territories, and other countries to get real results for Canadians on climate change and air pollution in an efficient and effective way.

The Government is also implementing clean energy and clean transportation initiatives that will accelerate progress in addressing air pollution and climate change. These actions will promote:

• Increased energy efficiency, development and deployment of renewable energies, and more sustainable use of traditional energy sources through technological innovation.


• A cleaner, healthier environment that improves Canadians’ quality of life.


• A sustainable economy.

Investing in Cleaner Energy

The Government has invested $2.4 billion in new environmental ecoENERGY Initiatives for cleaner energy, renewable energy, energy efficiency and new environmental technologies.

 

Budget 2007 includes new funding and a rebalancing of tax incentives that will further encourage investments in cleaner energy, spurring technological innovation for the more sustainable use of traditional energy sources, making the most of our clean energy resources, promoting energy efficiency and strengthening our advantage as an energy superpower.

The Canada EcoTrust for Clean Air and Climate Change

Climate change and air pollution affect all jurisdictions. Our response must be national in scope. Accordingly, on February 12, 2007, the Prime Minister announced a new Canada ecoTrust for Clean Air and Climate Change. The Canada ecoTrust for Clean Air and Climate Change will provide support to those provinces and territories that identify major projects that will result in real reductions in greenhouse gas emissions and air pollutants. The provincial initiatives supported by the Canada ecoTrust for Clean Air and Climate Change will complement industrial regulations and existing federal initiatives. Projects could include provincial technology and infrastructure development, such as carbon sequestration, and clean coal and electricity transmission, that will lead to a significant decrease in greenhouse gas emissions and air pollution. The Government will invest over $1.5 billion in the trust.

Clean Energy and the Oil Sands

The capital cost allowance (CCA) system determines how much of the cost of a capital asset a firm may deduct each year for tax purposes. CCA rates are generally set so as to spread the deduction over the useful life of the asset. This ensures a neutral tax treatment for different types of assets, so that investment is allocated to its most productive use.

Accelerated CCA (ACCA) is sometimes used to promote investment in certain emerging industries and in clean energy technologies that have broad social benefits in terms of reduced environmental impacts. By accelerating the timing of capital cost deductions, ACCA defers taxation and improves the financial return from investments in particular assets.

CCA rates are reviewed and updated on a regular basis to ensure that they reflect current information on the useful life of assets. Budget 2007 proposes a number of changes of this nature, described in Chapter 5. ACCA must also be kept up-to-date. Budget 2007 proposes to re-target ACCA, as described below, to reflect the new economic and environmental challenges that face us today. Going forward, the Government commits to identify additional areas where ACCA and other measures can be used to help industries like the oil sands invest in promising new clean energy technologies like carbon capture and storage.

Resources like the oil sands have helped to position Canada as a global energy superpower. Canadians across the country are reaping the benefits from this valued resource through increased employment opportunities and the development of new and improved technologies. Additional investment on the order of $100 billion is expected over the coming decade. ACCA was provided for investments in the oil sands at a time when it was an emerging sector and special support was appropriate to help offset some of the risk associated with early investments. With Canada’s oil sands sector now healthy and vibrant, ACCA is no longer required. Budget 2007 will phase out the existing ACCA for assets in this sector, leaving in place the regular 25-per-cent CCA rate for these assets. This will improve fairness and neutrality among the oil sands and other sectors, particularly other oil and gas and renewable energy resources.

To ensure a stable investment climate, the existing ACCA will be fully grandfathered for oil sands assets in project phases that commenced major construction prior to March 19, 2007. For other projects that have not yet begun major construction, in recognition of long project timelines, Budget 2007 will allow companies to maintain the ability to claim ACCA until 2010, with the rate being gradually reduced between 2011 and 2015. Further details on the transition are outlined in Annex 5.

Recognizing the importance of energy to our economic and environmental objectives, Budget 2007 will also extend and expand the scope of incentives for clean energy production. The existing ACCA that encourages industries, including the oil sands to invest in equipment that generates energy more efficiently or by using renewable energy sources will be extended to equipment acquired before 2020. It will also be expanded to cover wave and tidal energy, and additional solar energy and waste-to-energy technologies.

Budget 2007 also provides $15 million in 2007–08 to the Canada School of Sustainable Energy, one of the centres of excellence identified in Chapter 5. This is a collaborative research initiative of the University of Alberta, the University of Calgary and the University of Lethbridge focused on improving the recovery of energy from traditional sources, lowering the environmental impact of fossil fuels and developing alternative forms of energy.

Together, these steps will help ensure we continue to strengthen Canada’s position as an energy superpower, in a way that helps to preserve our environmental legacy.

Promoting Cleaner Transportation

In the past year, Canada’s New Government has announced more than $2 billion for investments in a cleaner and more efficient transportation system. Budget 2007 builds on these investments by encouraging the purchase of more fuel-efficient vehicles, the retirement of older, more polluting vehicles, and domestic production of renewable fuels. These measures will reduce greenhouse gas emissions and air pollution, promote technological innovation and improve the health of Canadians.

 

Incentives for Purchasing More Fuel-Efficient Vehicles

Canadians purchase about 1.5 million new passenger vehicles annually, and about 12 per cent of Canada’s total greenhouse gas emissions are generated by daily driving. Everyone has a role to play in reducing the amount of emissions that come from vehicle fuel consumption. Industry has a role in improving the efficiency of transportation and in promoting the development and adoption of cleaner transportation technologies. For its part, the Government has committed to introduce tougher fuel-efficiency standards for new passenger vehicles and light trucks that will be sold in Canada beginning with the 2011 model year.

Canadians have the choice to contribute to a cleaner environment when selecting what type of vehicle best meets their needs. Providing a financial incentive to help Canadians that want to make an environmentally responsible choice is a sound investment in Canada’s future and the health of Canadians.

To increase consumer purchases of more efficient advanced technology vehicles before the new fuel-efficiency standards take effect in 2011, Budget 2007 proposes a new Vehicle Efficiency Incentive (VEI) structure that will cover the full range of passenger vehicles available today. The VEI will have three distinct components and come into effect March 20, 2007:

1. A performance-based rebate program offering up to $2,000 for the purchase of a new fuel-efficient vehicle.

2. Neutral treatment of a broad range of vehicles with average fuel efficiency that are widely purchased by Canadians.

3. A new Green Levy on fuel-inefficient vehicles.

These measures, together with a new initiative to encourage Canadians to retire older, more polluting vehicles, will be broadly revenue-neutral.

New Rebate for Fuel-Efficient Vehicles

Manufacturers now offer a number of vehicles that are eligible for the performance-based rebate program. Current models qualifying for the rebate will include hybrid electric vehicles, conventional fuel efficient vehicles and the most efficient of the E-85 fuel and flex fuel vehicles. The list of eligible vehicles will be established by Transport Canada by combining the city and highway fuel-efficiency ratings.

The thresholds will be based on a combined 55 per cent city and 45 per cent highway rating. Initially, new automobiles with a combined fuel consumption rating of 6.5 L/100 km or less and minivans, sport utility vehicles (SUVs) and other light trucks with fuel consumption of 8.3 L/100 km or less will be eligible for a rebate. These thresholds will be reviewed periodically. The basic rebate amount will be $1,000, and an additional $500 will be added for each half litre per 100 km improvement in the combined fuel-efficiency rating of the vehicle below these thresholds. The maximum rebate value will be $2,000. Efficient E-85 fuel vehicles will be eligible for a rebate of $1,000. Eligible new vehicle purchases or leases as of March 20, 2007, will qualify for the rebate.

Table 3.1
Illustrative List of Eligible Vehicles for the 2007 Model Year

	Combined Fuel  Consumption1	New Rebate
	(L/100 km)	(dollars)
Toyota Prius	4.1	2,000
1.5L, 4 Cyl, Regular Unleaded Gasoline, CVT2
Honda Civic Hybrid	4.5	2,000
1.3L, 4 Cyl, Regular Unleaded Gasoline, CVT
Toyota Corolla	6.3	1,000
1.8L, 4 Cyl, Regular Unleaded Gasoline,
5-Speed Manual
Mini Cooper M6	6.5	1,000
1.6L, 4 Cyl, Regular Unleaded Gasoline,
6-Speed Manual
Ford Escape HEV 4x4	7.4	2,000
2.3L, 4 Cyl, Regular Unleaded Gasoline, CVT
Saturn Vue Hybrid	7.9	1,000
2.4L, 4 Cyl, Regular Unleaded Gasoline,
4-Speed Automatic
Jeep Patriot	8.2	1,000
2.4L, 4 Cyl, Regular Unleaded Gasoline,
5-Speed Manual
Chevrolet Impala	12.33	1,000
3.5L, 6 Cyl, E85
Flex Fuel Vehicle
Chrysler Sebring	13.03	1,000
2.7L, 6 Cyl, E85
Flex Fuel Vehicle
1 Combined 55 per cent city/45 per cent highway fuel consumption rating based on data published in Natural Resource Canada’s 2007 Fuel Consumption Guide. 2 Continuous/variable/transmission. 3 Fuel consumption rating based on use of E85 fuel Greenhouse gas emissions per kilometre of travel with E85 are approximately 40 per cent lower than for regular unleaded gasoline.

More information on the program, including the vehicles eligible for the rebate, will be published on Transport Canada’s website (www.tc.gc.ca). The lists of eligible vehicles will be updated as information on new vehicle fuel-efficiency ratings becomes available. Consumers purchasing or leasing (long-term leasing for a period of at least 12 months) an eligible vehicle should keep a proof of purchase or a copy of the lease agreement. Consumers will be asked to show proof of registration, in Canada, of the new vehicle. While the introduction of rebates for eligible fuel-efficient vehicles is proposed to take effect March 20, 2007, the payment of rebates will be made once administration and delivery systems have been put in place. The Government is aiming to make rebate payments by fall 2007. Budget 2007 commits $160 million over the next two years to provide the performance-based rebate.

New Green Levy on Fuel-Inefficient Vehicles

For new passenger vehicles (excluding trucks) with fuel-efficiency ratings of 13.0 L/100 km or more, the incentive structure will include a new Green Levy on these vehicles, payable by the manufacturer or importer when vehicles are delivered into the Canadian market. The fuel-efficiency rating will be based on the same combination of city (55 per cent) and highway (45 per cent) fuel consumption ratings used to establish the parameters for the rebate.

The new Green Levy will start at $1,000 for passenger vehicles with combined fuel-efficiency ratings of at least 13.0 L/100 km but less than 14.0 L/100 km. The rate will increase in $1,000 increments for each full litre per 100 km increase in the combined fuel-efficiency rating above the 13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings of 16.0 L/100 km or more. The levy will apply to new vehicles delivered by a manufacturer or importer to a purchaser (usually a dealer) after March 19, 2007. Inventories of vehicles held by dealerships will not be subject to the new Green Levy. Certain consumer purchase contracts entered into before March 20, 2007, will also be grandfathered. With the introduction of the new levy, the existing excise tax on heavy vehicles will be eliminated effective March 20, 2007.

It is expected that this measure will increase federal revenues by $110 million in 2007–08 and $105 million in 2008–09.

Table 3.2
Vehicle Efficiency Incentive (VEI) Structure

	New Rebate		New Green Levy
Fuel Efficiency1	Cars	Minivans  SUVs and  Light Trucks	Passenger Vehicles  (Other Than Trucks)
(L/100 km)	(dollars)
5.5 or less	2,000	2,000
5.6 – 6.0	1,500	2,000
6.1 – 6.5	1,000	2,000
6.6 – 7.3		2,000
7.4 – 7.8		1,500
7.9 – 8.3		1,000
8.4 – 12.9
13.0 – 13.9			1,000
14.0 – 14.9			2,000
15.0 – 15.9			3,000
16.0 or more			4,000
1 Vehicle fuel efficiency is based on combined 55 per cent city/45 per cent highway fuel consumption ratings.

Getting Old Cars Off the Roads

Older vehicles built before the 1995 model year accounted for 35 per cent of light-duty vehicles in 2005. Permanently removing older, high-emitting vehicles from Canadian roads through "scrappage" programs improves our air quality and helps to reduce smog-forming and greenhouse gas emissions. Environment Canada currently provides operating support for programs such as Car Heaven run by the Clean Air Foundation, and B.C. Scrap-it. These scrappage programs are operated by not-for-profit organizations, and provide small incentives to promote the retirement of older vehicles and ensure scrapped vehicles are recycled according to environmental guidelines. Budget 2007 will provide $6 million over the next two years for a seven-fold increase in current annual federal support delivered through Environment Canada for scrappage programs.

Budget 2007 also provides up to $30 million over the next two years for incentives to be designed by Environment Canada and Transport Canada in consultation with stakeholders that will remove older, high-emitting vehicles from Canadian roads.

Greening the Federal Vehicle Fleet

The Government of Canada has a fleet of about 26,000 vehicles and is active in reducing vehicle emissions from its fleet. The Government is targeting a 15 per cent reduction in greenhouse gas emissions per vehicle-kilometre from 2002–03 levels. Federal departments now have about 1,400 alternative fuel and hybrid vehicles in use, and vehicles purchased for the federal fleet must be capable of operating on alternative fuels, where cost-effective and operationally feasible. In addition, where it is available, all gasoline purchased for federal road vehicles must be ethanol-blended. Federal departments are also required to demonstrate leadership in fleet management, so that acquiring and disposing of vehicles minimize negative effects on the environment. A November 2006 Treasury Board Directive renews the challenge to the federal government to take action to reduce emissions from its vehicle fleets.

Investing in Cleaner Fuels

Renewable fuels are cleaner fuels that reduce air pollution and lower greenhouse gas emissions. The Government recently announced a regulation requiring a 5 per cent average renewable content, such as ethanol, in Canadian gasoline by 2010. The Government also intends to develop a regulation for diesel fuel and heating oil to contain 2 per cent average renewable content, such as biodiesel, by 2012, once it has been verified that the new blended fuel is safe and effective for our Canadian climate and conditions. Renewable fuel production is a new market opportunity for farmers and rural communities. Budget 2006 included $365 million to assist farmers in realizing opportunities through agricultural bioproducts, including renewable fuels.

To meet the requirements of the proposed regulations, over 2 billion litres of renewable fuels will be required, creating tremendous business opportunities for Canadian renewable fuel and agricultural producers. Budget 2007 invests up to $2 billion in support of renewable fuel production in Canada to help meet these requirements, including up to $1.5 billion for an operating incentive and $500 million for next-generation renewable fuels.

Up to $1.5 billion over seven years will be allocated towards an operating incentive to producers of renewable alternatives to gasoline, such as ethanol, and renewable alternatives to diesel, such as biodiesel, under conditions where industry requires support to remain profitable. Incentive rates will be up to $0.10/L for renewable alternatives to gasoline and up to $0.20/L for renewable alternatives to diesel for the first three years, then decline thereafter.

In order to ensure companies do not earn excessive profits, government support will not be provided when rates of return exceed 20 per cent, determined annually. Support under the program to individual companies will be capped to ensure that benefits are provided to a wide range of participants in the sector—not just the largest oil-producing companies.

Budget 2007 also makes $500 million over seven years available to Sustainable Development Technology Canada to invest with the private sector in establishing large-scale facilities for the production of next-generation renewable fuels. Next-generation renewable fuels—produced from agricultural and wood waste products such as wheat straw, corn stover, wood residue and switchgrass—have the potential to generate even greater environmental benefits than traditional renewable fuels. Canada is well positioned to become a world leader in the development and commercialization of next-generation fuels. For example, Ottawa-based Iogen is one of Canada’s leading biotechnology firms. It operates the world’s only demonstration scale facility to convert biomass to cellulosic ethanol using enzyme technology.

Concurrent with the implementation of the operating incentive program to promote additional domestic production of renewable fuels, the excise tax exemptions for ethanol and biodiesel will be eliminated as of April 1, 2008.

Protecting Canada’s Natural Heritage

Canadians are proud of their country’s natural beauty. It is the most beautiful country in the world, from the majestic peaks of the Rocky Mountains to the rugged rocks of Gros Morne National Park in Newfoundland, to the spectacular Nahanni River in the Northwest Territories.

Canada’s forests, lakes and rivers, and wildlife are symbols of our national identity and culture. The environment is our source for food and water, and it sustains our economic and recreational activities. Canadians know they have a responsibility to conserve our natural environment for the use and enjoyment of future generations.

Building on these initiatives, the Government will strengthen conservation of sensitive land and species, and preservation of our cultural and natural heritage.

Conserving Sensitive Lands

Conserving ecologically important lands and natural capital in the Northwest Territories, including the Mackenzie Valley, and promoting sustainable economic development are investments in our future. The Mackenzie River is Canada’s longest river. It is home to Dene, Inuvialuit and Métis people and provides habitat to hundreds of species of birds, some of the largest caribou herds in the world and a rich diversity of other wildlife. This area includes part of the important boreal forest region that stretches across Canada from the Yukon to Newfoundland and Labrador. Budget 2007 provides $10 million over two years to create or expand protected areas in the Northwest Territories, supporting the Protected Area Strategy of the Northwest Territories.

Preserving the National Capital

The National Capital Commission (NCC) safeguards and preserves the Capital’s most treasured cultural and natural heritage assets for future generations. As noted by the NCC Mandate Review Panel, funding in recent years has not been sufficient for the NCC to maintain these assets. Budget 2007 proposes to address these needs by providing $30 million on a cash basis in capital and operating funding over the next two years to the NCC. On a budgetary basis, this amounts to $11 million.

Delivering Results on Environmental Enforcement

Canada has tough environmental regulations, and Canada’s New Government is strengthening them. However, regulations mean nothing to polluters in the absence of a strong team of environmental enforcement officers.

Environment Canada will hire over 100 more enforcement officers, strengthening its capacity a further 50 per cent to enforce environmental protection laws and to achieve better environmental outcomes. Budget 2007 provides $22 million over two years to Environment Canada for enforcement capacity.

Protecting Species at Risk

Protecting Canada’s species at risk and their critical habitat preserves our natural heritage. Budget 2007 provides $110 million over the next two years to Environment Canada, Parks Canada, and Fisheries and Oceans Canada for more effective implementation of the Species at Risk Act, resulting in a total of $100 million per year dedicated to implementing the act.

National Water Strategy

Canada has the third-largest supply of fresh water in the world. Our country is also fortunate to be home to majestic lakes and rivers, and ocean playgrounds. Through Budget 2007, Canada’s New Government is taking action to improve the water we drink, clean polluted waters, help maintain water levels in the Great Lakes, protect our ecosystems and ensure the sustainability of our fish resources.

Cleaning Up the Great Lakes

The Great Lakes are one of the most important freshwater resources in the world. They contain 20 per cent of the world’s surface freshwater supplies and 80 per cent of the lake and river water in North America. Forty million people in Canada and the U.S. rely directly on the Great Lakes drainage basin as a source of drinking water.

There are environmentally degraded areas in the Great Lakes arising from past industrial practices, which create lake-wide effects on water quality. Budget 2007 allocates $11 million over the next two years to clean up contaminated sediment that poses a risk to human health and ecosystems in eight areas of concern identified under the Canada-U.S. Great Lakes Water Quality Agreement: Hamilton Harbour, Niagara River, Detroit River, St. Mary’s River, Thunder Bay, Peninsula Harbour, St. Clair River and Bay of Quinte.

The health of the Great Lakes is affected by actions on both sides of the Canada-U.S. border. The International Joint Commission is an independent binational organization whose purpose is to help prevent and resolve disputes between Canada and the U.S. relating to the use and quality of boundary waters. Budget 2007 provides $5 million over the next two years to the Commission to carry out a study with the U.S. on the flow of water out of Lake Superior. The review will address the impacts of these outflows on water levels and the affected communities. Funding will also support outreach by the Commission on water issues in border communities.

Budget 2007 also allocates $12 million over two years to support the clean-up of Lake Simcoe, which has been affected by excessive amounts of phosphorus from both urban and rural sources.

Addressing Water Quality in the Lake Winnipeg Basin

Water quality in Lake Winnipeg has deteriorated due to the accumulation of nutrients in the lake. Budget 2007 provides $7 million over the next two years to Environment Canada to develop a targeted science plan and a Canada-Manitoba Agreement to support the long-term sustainability of the lake and its contribution to economic activities, recreation and watershed functions. These investments would support the development with the provincial government of a basin-wide plan for water pollution, water availability and water resource management.

Investments in Fisheries Science Research

A healthy environment and clean oceans are essential to the sustainability of Canada’s fisheries and require a sound understanding of the resource and its complex ecosystems. This better understanding contributes to strengthening fisheries management and resource conservation for the benefit of fishermen and fisherwomen.

To honour the Government’s commitment to invest in fisheries science and research, Budget 2007 provides $39 million over the next two years to the Department of Fisheries and Oceans.

Renewal of the Canadian Coast Guard Fleet

In addition to providing core services such as search and rescue, icebreaking, aids to navigation, environmental response and communications and traffic services, the Canadian Coast Guard supports the Department of Fisheries and Oceans’ critical scientific research and fisheries enforcement activities. These include assessing fisheries resource stocks, monitoring ecosystems and supporting Canada’s interests in the Northwest Atlantic Fisheries Organization.

In support of the Canadian Coast Guard’s role in fisheries science and enforcement, and more generally its large-vessel fleet requirements, Budget 2007 provides funding of $324 million to the Canadian Coast Guard for the procurement, operation and maintenance of an additional six new large vessels: four midshore patrol vessels and two offshore fishery science vessels.

Improving Water Quality

The Government remains committed to working with First Nations to ensure that all First Nations residents have access to safe drinking water. Building on the Plan of Action for Drinking Water in First Nations Communities, we will continue to address the needs of communities with high-risk drinking water systems. We will also develop a regulatory regime to oversee water quality on reserve, based on the options raised by the report of the Expert Panel on Safe Drinking Water for First Nations.

Environment Canada will also work with provinces on tougher, more stringent regulations and controls to address municipal wastewater effluents. Municipal wastewater effluents consist of sanitary sewage (which comes from homes, businesses, institutions and industries) and storm water. Wastewater effluents are the most significant contributor to water pollution. They can cause infectious diseases in humans, toxicity in fish and a significant decrease in biological diversity in nature.

The Government’s comprehensive long-term infrastructure plan outlined in Chapter 5 will help support investments by provinces, territories and municipalities to improve water and wastewater infrastructure, including treatment facilities, sewage collection and water distribution.

One of the challenges for Canada’s oceans is the ongoing practice of discharging untreated municipal waste in the oceans, such as in the Victoria and Saint John harbours. This is a practice that should be stopped. One of the priorities of the new federal infrastructure programs will be the support of communities taking action on this issue.

Keeping Our Oceans Clean

Canada’s oceans are critical to the social and economic well-being of coastal and rural communities. The Government will support:

• Greater water pollution prevention, surveillance and enforcement along Canada’s coasts (e.g. pollution prevention from contaminated ballast waters, ship waste reduction strategy).


• Further ecosystem assessment and capacity to deal with increased activity in Arctic waters (e.g. shipping, oil spills).


• Increased collaboration with international partners on ocean and transboundary water matters (e.g., Gulf of Maine project with the U.S., ecosystem projects with circumpolar nations through the Arctic Council).

Through this initiative, the Government will increase the scientific knowledge required to further advance the health of the oceans. This will include creating additional marine protected areas around the Scott Islands on the Pacific Coast, Sable Island on the eastern Scotian Shelf, and Lancaster Sound in the eastern Arctic. Six other marine protected areas will also be created along Canada’s coasts, with the specific location to be determined after consultations with coastal communities, environmental groups, industry and other governments.

Budget 2007 allocates $19 million over the next two years for initiatives that will contribute to keeping Canada’s coastal waters clean. This funding will support the sustainable development, management and protection of ocean resources and water quality.

Water quality is fundamental to Canada’s prosperity, our health and our quality of life. Going forward, as part of our comprehensive ecoAction plan, the Government will continue to help ensure clean and safe water for Canadians.

Investing in Canadians

When Canada is strong, it has the means to protect, defend and support Canadians. Helping those who need it most is central to who we are as Canadians. That is why Budget 2007 focuses on compassionate initiatives to help people make their way from welfare to the dignity of a job, to help people with disabilities and to promote charitable giving.

Working Income Tax Benefit:
Helping People Over the Welfare Wall

For too many low-income Canadians, working can mean being financially worse off than staying on social assistance. For example, a single parent who takes a low-income job can lose a large portion of each dollar earned to taxes and reduced income support. In addition, he or she could also lose in-kind benefits such as subsidized housing and prescription drugs, and can often take on new work-related expenses. This situation is often referred to as the "welfare wall," which discourages many low-income Canadians from getting the jobs they and their family need.

Budget 2007 fulfills the Government’s commitment to introduce a Working Income Tax Benefit (WITB). A WITB will help make work more rewarding and attractive for an estimated 1.2 million Canadians already in the workforce, thereby strengthening their incentives to stay employed. In addition, it is estimated that a WITB will encourage close to 60,000 people to enter the workforce.

 

A WITB of up to $500 will be provided to single individuals with earnings greater than $3,000 and net income less than $12,833. Single individuals with earnings of $5,500 or more and net income less than $9,500 will receive the full $500 amount.

A WITB of up to $1,000 will be provided to couples and single parents with family earnings of $3,000 or more and net income less than $21,167. Couples and single parents with earnings of $8,000 or more and net family income less than $14,500 will receive the full $1,000 amount.

The WITB will be provided as a refundable tax credit, effective for the 2007 tax year, with payments beginning in 2008. For 2008 and future tax years, families will be able to apply for an advance payment of one-half their estimated annual entitlements. The WITB will be generally available to individuals 19 and older, not attending school full-time.

Working Collaboratively With Provinces and Territories

The Government of Canada recognizes that provinces and territories play a key role in providing basic income support to low-income Canadians. It is important that the WITB works well with provincial and territorial income support programs, and that provinces and territories reinforce the work incentives it provides through the actions they take.

Canada’s New Government is prepared to consider province- or territory-specific changes to the design of the WITB to better harmonize it with existing provincial and territorial programs, if the design changes are consistent with the following principles:

• They build on actions taken by the province or territory to improve work incentives for low-income individuals and families.


• They are cost-neutral to the federal government.


• They provide for a minimum benefit level for all WITB recipients.


• They preserve harmonization of the WITB with existing federal programs.

Agreements with provinces and territories will need to be in place by the fall of 2007, to allow for the implementation of the new structures for 2007 tax filing, in the spring of 2008.

WITB Disability Supplement

An additional supplement will be provided for low-income working Canadians with disabilities, as these individuals generally face even greater barriers to workforce participation.

Employed individuals who are eligible for the disability tax credit (DTC) will qualify for the disability supplement of the WITB. Benefits from the WITB will start when the earnings of the DTC-eligible individual reach $1,750. The disability supplement will increase with individual earnings up to a maximum annual amount of $250.

• For a single individual, the disability supplement will be reduced at net income of $12,833, and will be eliminated at $14,500.


• For single parents and couples, the disability supplement will be reduced at family net income of $21,167, and be eliminated at $22,834 ($24,500 where there are two working DTC-eligible adults).

Table 3.3
Proposed WITB Benefits for Low-Income Individuals and Families (dollars)

	Single Individuals		Single Parents and Couples
Family Net Income1	WITB Base	WITB Base Plus a Disability Supplement	WITB Base	WITB Base Plus a Disability Supplement
2,500	0	150	0	150
3,750	150	400	150	400
5,000	400	625	400	625
6,250	500	750	650	900
7,500	500	750	900	1,150
10,000	425	675	1,000	1,250
12,500	50	300	1,000	1,250
15,000	0	0	925	1,175
17,500	0	0	550	800
20,000	0	0	175	425
22,500	0	0	0	50
25,000	0	0	0	0
1 Assuming net income is composed entirely of earnings and that couples have one earner. Earnings means positive income from employment and business.

The WITB and the additional disability supplement will be available for the 2007 tax year, and will reduce revenues by $140 million in 2006–07, $550 million in 2007–08 and $555 million in 2008–09.

Helping Parents Save to Ensure the Long-Term Financial Security of a Child With a Severe Disability

An important consideration for parents and grandparents of a child with a severe disability is how best to ensure that child’s financial security when they are no longer able to provide support. Budget 2006 announced that the Minister of Finance would establish a small group of experts to examine this issue and provide their advice.

In July 2006, the Minister of Finance appointed the Expert Panel on Financial Security for Children with Severe Disabilities. The panel submitted its report, A New Beginning, in December 2006.

Budget 2007 acts on the recommendations of the Panel by announcing the introduction of a new registered disability savings plan (RDSP). The plan will be available commencing in 2008 and will be based generally on the existing registered education savings plan (RESP) design. An individual eligible for the disability tax credit (DTC), their parent or other legal representative, may establish an RDSP. The DTC-eligible individual will be the plan beneficiary. The plan will consist of three elements:

1. Parents, beneficiaries and others wishing to save will be able to contribute to an RDSP. Contributions to an RDSP for a beneficiary will be limited to a lifetime maximum of $200,000. Contributions will be permitted up until the end of the year in which a beneficiary attains 59 years of age.

2. Annual RDSP contributions will attract Canada Disability Savings Grants (CDSGs) at matching rates of 100, 200 or 300 per cent, depending on family income and the amount contributed, up to a maximum lifetime CDSG limit of $70,000. The family income ranges and the corresponding matching rates on annual contributions are set out in Table 3.4 below. An RDSP will be eligible to receive CDSGs up until the end of the year in which the plan beneficiary attains 49 years of age.

3. Canada Disability Savings Bonds (CDSBs) of up to $1,000 per year will be provided to RDSPs established by low and modest-income families, up to a maximum lifetime CDSB limit of $20,000, and will not be contingent on contributions. The maximum annual $1,000 CDSB will be paid to an RDSP where family net income does not exceed $20,883. The CDSB will be phased out gradually for those with family net income between $20,883 and $37,178. These income thresholds are for the 2007 taxation year and will be indexed to inflation for 2008, when RDSPs become operational, and for subsequent taxation years. An RDSP will be eligible to receive CDSBs up until the end of the year in which the plan beneficiary attains 49 years of age. 

Table 3.4
Canada Disability Savings Grant (CDSG)
Matching Rates on Contributions

Family Income1 ($)
Up to 74,357	Over 74,357
300% on first $500	100% on first $1,000
200% on next $1,000
1 Family income thresholds are in 2007 dollars. These income thresholds will be indexed to inflation for 2008, when RDSPs become operational, and for subsequent taxation years.

Contributions to an RDSP will not be deductible and will not be included in income when paid out of an RDSP. The investment income earned in the plan will accumulate tax-free. CDSGs, CDSBs and investment income earned in the plan will be included in the beneficiary’s income for tax purposes when paid out of an RDSP. Only the plan beneficiary, or the beneficiary’s legal representative, will be permitted to receive payments from an RDSP.

More details on the main RDSP eligibility requirements and design features are provided in Annex 5.

To ensure that RDSP payments do not reduce federal income-tested benefits, amounts paid out of an RDSP will not be taken into account for the purpose of calculating income-tested benefits delivered through the income tax system, such as the Canada Child Tax Benefit and the goods and services tax credit. In addition, amounts paid out of an RDSP will not reduce Old Age Security or Employment Insurance benefits.

Provinces and territories provide income support for persons with disabilities through means-tested programs. The Expert Panel noted that, for the RDSP program to be effective, RDSP assets should not disqualify a plan beneficiary from receiving provincial or territorial income support provided to persons with disabilities. The Expert Panel also noted that payments from the plan should supplement—not reduce—income support provided under these programs at least until the level of income support plus RDSP payments exceeds the Low Income Cut Off for the province or territory.

The Minister of Human Resources and Social Development, in collaboration with the Minister of Finance, will work with the provinces and territories to ensure that the RDSP is an effective savings vehicle to improve the financial security and well-being of children with severe disabilities.

It is estimated that this measure will increase federal expenditures by $25 million in 2007–08 and $115 million in 2008–09.

Enabling Accessibility Fund

Canada’s New Government is committed to helping all Canadians, regardless of physical ability, participate fully in their communities, whether this means taking part in an activity at a community centre or having easy access to the local grocery store. To do this, Budget 2007 proposes the creation of an Enabling Accessibility Fund.

This fund will contribute to the capital costs of construction and renovations related to physical accessibility for persons with disabilities. Approved projects will have strong ties to, and support from, the communities they serve. These projects could include new construction_, such as abilities centres that offer programs to individuals of varying physical abilities. Smaller projects such as adding a ramp to an existing building could also be funded. Details of the Enabling Accessibility Fund will be developed by the Minister of Human Resources and Social Development in partnership with the provinces and community groups over the next several months. Budget 2007 commits $45 million over three years for this fund.

Eliminating Capital Gains Tax on Charitable Donations to Private Foundations

Charities play an invaluable role in Canadian society. They provide support for a wide variety of activities from health services to education, museum exhibits, places of worship, protection of the environment and diverse programs for disabled children.

To better encourage charitable giving, Budget 2006 eliminated capital gains tax on donations of publicly-listed securities to public charities. This measure has been welcomed widely by Canadians and has encouraged a significant increase in donations to charities since it took effect last May.

Private foundations also support a wide range of charitable activities in Canada, including some of the most innovative charitable programs. To date, donations of publicly-listed securities to private foundations have not been eligible for a reduced inclusion rate on capital gains. This has been due to concerns regarding the adequacy of current legislative provisions to safeguard against potential conflicts of interest, or "self-dealing," which could arise when individuals with significant holdings in a corporation also have influence over the management of a foundation’s holdings of the same corporation.

In Budget 2006, Canada’s New Government committed to consult with private foundations and other interested parties to develop appropriate self-dealing rules. As a result of these discussions, Budget 2007 proposes to introduce excess business holdings rules which will provide private foundations with clear rules to minimize potential conflicts of interest. With this framework in place, Budget 2007 proposes to exempt donations of publicly-listed securities to private foundations from capital gains tax.

These measures will be effective as of March 19, 2007. Taken together with the measures in Budget 2006, these measures provide Canadians with significant new incentives to donate to the whole range of Canadian charities.

These measures are expected to reduce federal income tax revenues by about $75 million in each of 2007–08 and 2008–09.

Protecting Children From Sexual Exploitation

Children are Canada’s most precious asset but are also the most vulnerable members of society. All of our children deserve to feel safe and secure. As a nation, Canada has a responsibility to ensure that children are nurtured and well protected, especially from the most heinous of crimes, sexual exploitation and trafficking.

Canada has the laws in place to combat this problem. The Royal Canadian Mounted Police also houses two centres to protect children from on-line sexual exploitation and to assist investigators in suspected cases of human trafficking. For these tools to be truly effective in reducing the number of incidents of sexual exploitation and trafficking in children, resources must be available to increase the number of investigations and to successfully prosecute offenders.

Budget 2007 proposes to invest an additional $6 million per year for the protection of children. These funds will be allocated to strengthen current activities in combatting the sexual exploitation and trafficking of children. The funding will ensure that those who commit these heinous offences are brought to justice.

Status of Women Canada

Canada’s New Government supports the full participation of women in the economic, social and cultural life of Canada. The Government also believes that taxpayers’ money should be spent on concrete initiatives that help women in their communities. Budget 2007 provides $20 million over the next two years to Status of Women Canada. This includes the $5 million for 2007–08 announced by the Minister of Canadian Heritage and Status of Women on March 7, 2007. This funding will enhance the activities of a refocused Women’s Program, and create a new Women’s Partnerships Fund to foster joint undertakings in areas of common interest with other federal departments and other levels of government. Funding will be steered toward real action in key areas such as the economic status of women and combatting violence against women and girls.

New Horizons for Seniors

Canada’s New Government is committed to ensuring that seniors continue to have a good quality of life as they age. Canada’s seniors have a richness of skills, experience and knowledge to share with each other and the wider community in which they live. Human Resources and Social Development Canada’s New Horizons for Seniors program enhances such opportunities. Safety and security is also very important for seniors. This will be another focus of the program.

Investments in Budget 2007 will allow the New Horizons for Seniors program to enhance opportunities for seniors to share their rich life experiences, benefiting both young and old. This will permit the program to provide capital assistance for community buildings and for equipment and furnishings related to programs for seniors. Support will be provided for education programming to reduce elder abuse and fraud. Budget 2007 provides an additional $10 million per year, which will bring the total budget for the program to $35 million per year.

Programs for Aboriginal Canadians

Canada’s economy is strong and the unemployment rate is at a 30-year low. More Aboriginal Canadians can and should share in this prosperity. Too often, old-fashioned government programs have not achieved the goal of genuinely helping Aboriginal Canadians. That is why Budget 2007 proposes new approaches for governments and Aboriginal Canadians to work together to find workable, innovative solutions.

Budget 2007 takes action to provide training and job opportunities for Aboriginal Canadians. It also outlines a new approach to help First Nations members own their own homes, and to improve the quality of drinking water in First Nations communities. The Government will also take specific measures to help segments of the Aboriginal population who are at higher risk by enhancing the Aboriginal Justice Strategy. The Government will also ensure that First Nations on the East Coast can fully participate in integrated commercial fisheries, where they will benefit from the same opportunities and the same rules as other fishermen and fisherwomen.

In addition to the substantial expenditures on current programs and services, the Government will continue to develop targeted, effective programming to address needs that are essential to all Canadians, and particularly so for Aboriginal Canadians, and to ensure greater self-reliance for communities.

Canada’s New Government will continue to work diligently to resolve land claims and litigation, building on the important progress in 2006 in British Columbia and Nunavik. Negotiated agreements and greater self-reliance will open opportunities for Aboriginal communities to prosper and take their place of pride and respect in the broader community that is Canada.

 

Aboriginal Labour Force Participation

Given the relative youth of the Aboriginal population, it is particularly important to take immediate measures to increase sustainable Aboriginal employment through the Aboriginal Skills and Employment Partnership initiative, which will more than double in size in the next five years. More details on this initiative are provided in Chapter 5.

Aboriginal Justice Strategy

Aboriginal Canadians are over-represented in Canada’s justice system, both as victims and offenders and as inmates in jails and prisons. In working with provinces, territories and Aboriginal communities to develop community-based alternatives to the mainstream justice system, the Aboriginal Justice Strategy has yielded positive results.

Canada’s New Government will expand the strategy in order to significantly increase the number of Aboriginal communities and people that have access to community justice programs. This will lead to a further reduction in crime and have positive impacts at the community level as Aboriginal communities take greater responsibility for the administration of justice. To do so, Budget 2007 dedicates $14.5 million over the next two years.

Housing in First Nations Communities

Safe and affordable housing is a basic need for all Canadians. While the availability of housing on reserve lags far behind that of other Canadians, Canada’s New Government believes that all Canadians should have a fair chance to own their own home. Currently, First Nations home ownership is well below the national average. Not enough people living on reserve know the feeling that comes from owning their own home. Innovative First Nations have already implemented plans to help people own their own property, and to earn rental income. To build on these successes, Canada’s New Government, in consultation with First Nations, will develop approaches to support the development of individual property ownership on reserve, encourage lending for private housing, and increase accountability, both institutional and personal. To this end, $300 million will be dedicated to the development of a housing market in First Nations communities.

First Nations Participation in Integrated Atlantic Commercial Fisheries

The support for sustainable, integrated commercial fisheries, in which all commercial participants fish under common and transparent rules, is an important Government priority. A major component of that approach rests on creating certainty and stability around fisheries access and allocations.

In Atlantic Canada, this includes working with First Nations to support the full realization of the economic potential of their existing fishing licences, and to help them play a greater role in fisheries management. Budget 2007 provides $20 million over the next two years to ensure that First Nations in the Maritimes and in the Gaspé region of Quebec have the capability to more efficiently manage and maximize their existing access to the commercial fishery. This amount includes the reduction in licence revenues collected by the Department of Fisheries and Oceans following the transfer of licences to First Nations under the Marshall Response Initiative.

Specific Claims

The Government is committed to achieving fair and timely resolution of First Nations claims for compensation relating to unfulfilled lawful obligations. Currently, specific claims take years to deal with, causing frustration for First Nations communities, and too often result in uncertainties and conflict. In the coming year, the Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians will work with First Nations leadership to move forward an action plan to accelerate the resolution of specific claims and will explore alternatives such as providing for independent adjudication of claims that cannot be settled by negotiations. Canada’s New Government is committed to ensuring that settled claims are paid promptly.

Modernizing Our Health Care System

The Canadian health care system is one of the things that makes Canada the modern, compassionate and prosperous country we love. Budget 2007 takes action to help reduce wait times, prevent diseases like cancer of the cervix and modernize Canada’s health system.

The Government is committed to implementing the 10-Year Plan to Strengthen Health Care, which provided $41.3 billion in new federal funding over 10 years to provinces and territories. Under this Plan, the Government provides predictable growing support to provinces and territories through the Canada Health Transfer. As a result, in 2007–08, provinces and territories will receive $1.2 billion more than in 2006–07. The Government will continue to work with provinces and territories to ensure progress on the 10-Year Plan, focusing on evidence-based benchmarks and regular reporting. All jurisdictions are working hard to make progress on improving access to health care and reducing wait times.

 

Canada’s New Government is continuing to work with provinces and territories to develop patient wait times guarantees to ensure that all Canadians receive necessary medical treatment within medically acceptable waiting times. Budget 2007 provides funding for Canada Health Infoway, as well as funding for a patient wait times guarantee trust, which will be used to assist provinces and territories as they move forward with the implementation of guarantees. A patient wait times guarantee pilot project fund will also be created.

In addition, the Government is also assisting provinces and territories with the costs of providing immunization to protect women from cancer of the cervix, supporting the Canadian MedicAlert Foundation’s No Child Without program, establishing a Canadian Mental Health Commission, and enhancing health information and reporting.

Support for Patient Wait Times Guarantees

Under the 10-Year Plan to Strengthen Health Care, $5.5 billion is provided to provinces and territories from 2004–05 to 2013–14, to focus on clearing backlogs, training and hiring more health professionals, building capacity for centres of excellence, and expanding programs and tools to manage wait times.

Canada Health Infoway

Canada’s health systems have the opportunity to make better use of information and communications technology—and especially shareable electronic health records. Canada Health Infoway was created by Canada’s First Ministers in 2000 to accelerate the implementation of electronic health records. Infoway’s corporate members are Canada’s 14 federal, provincial and territorial Deputy Ministers of Health.

Infoway is working with the provinces and territories to develop electronic health records, which support the implementation of patient wait times guarantees by the provinces and territories. In addition to improving access to health services, electronic health records support improved clinical decision-making, leading to more effective diagnosis and treatment, greater patient safety and increased efficiency in the health care system.

Canada Health Infoway’s investments need to be closely aligned with the plans of the health ministries in each province and territory, collaboration being an essential element of Infoway’s strategy. Progress has been made, with Infoway working with partners to develop a network of interoperable electronic health record solutions across Canada, linking clinics, hospitals, pharmacies and other points of care. More needs to be done and the Government is prepared to support this national initiative and Infoway’s success.

Budget 2007 provides $400 million to Canada Health Infoway to support early movement towards patient wait times guarantees through the development of health information systems and electronic health records.

Patient Wait Times Guarantee Trust

To support jurisdictions that made commitments to patient wait times guarantees prior to the end of March 2007, Budget 2007 sets aside up to $612 million to be used to help accelerate the implementation of patient wait times guarantees. $500 million will be allocated on an equal per capita basis, and funding for eligible provinces and territories will be paid into a third-party trust.^[1] Those eligible provinces and territories will also be provided base funding of $10 million per province and $4 million per territory through the trust to move forward with patient wait times guarantees.

This funding will be available to those provinces and territories that have publicly outlined their plans to implement a patient wait times guarantee in at least one of the five priority areas where evidence-based benchmarks for medically acceptable wait times are being developed, namely cancer treatment, heart procedures, diagnostic imaging, joint replacement and sight restoration.

Patient Wait Times Guarantee Pilots

It is also important to test patient wait times guarantees in order to generate information on how best to accelerate their implementation and advance overall progress.

A one-time patient wait times guarantee pilot project fund of $30 million, to be spent over three years, will be established by Health Canada to assist provinces and territories in undertaking innovative projects that will support the implementation of their patient wait times guarantees.

Protecting Women From Cancer of the Cervix

Immunization works. It is considered a very cost-effective means of preventing illness and provides long-term savings to the health care system. When effective new vaccines become available, it is in the best interest of Canadian families to receive them as quickly as possible.

Cancer of the cervix is the second most common cancer in Canadian women aged 20 to 44 after breast cancer. In 2006, there were an estimated 1,350 new cases of cancer of the cervix and 390 related deaths in Canada. Almost all cancers of the cervix are caused by human papillomavirus (HPV). In July 2006, the Government approved a vaccine for use by young girls and women that prevents the majority of these cancers, providing protection against the two types of HPV that are responsible for approximately 70 per cent of cancers of the cervix in Canada.

The Government will provide funding to the provinces and territories to support the launch of a national program for the HPV vaccine that will focus on protecting women and girls from cancer of the cervix. Budget 2007 proposes to put $300 million into a third-party trust in 2007–08 for the benefit of provinces and territories, allocated on a per capita basis. Provinces and territories will have the flexibility to draw down funding, as they require, over the next three years.

Canadian MedicAlert Foundation

The Canadian MedicAlert Foundation is the leading provider of emergency medical information services linked to customized bracelets for Canadians with medical conditions and special medical needs. On November 20, 2006, the Foundation announced a new No Child Without program, which provides MedicAlert bracelets without charge to children who suffer from serious diseases such as peanut allergies, childhood diabetes or asthma. The Foundation’s goal is to implement this program in all elementary schools in Canada.

In support of this valuable initiative, Budget 2007 provides one-time funding of $2 million to the Foundation to help the No Child Without program provide free MedicAlert bracelets to more young students.

Canadian Mental Health Commission

Mental illness and poor mental health have a profound impact on Canadian society. Mental illness affects individual Canadians of all ages and in all segments of the population, and is prevalent in all regions, including both rural and urban areas. It is estimated that one in five Canadians will develop a mental illness at some time in their lives. Many more individuals such as family, friends and colleagues are also affected. The economic costs associated with poor mental health and mental illness are also significant, both in terms of their impact on businesses and on the health care system.

The Government is establishing a Canadian Mental Health Commission that will be a national focal point for addressing mental health issues. Budget 2007 invests $10 million over the next two years and $15 million per year starting in 2009–10 for the commission. The structure and role of the commission will be based on the recommendations of the Standing Senate Committee on Social Affairs, Science and Technology, which were outlined in its comprehensive report relating to mental health, mental illness and addiction in Canada, titled Out of the Shadows at Last, that was released on May 16, 2006.

Canadian Institute for Health Information

The Canadian Institute for Health Information (CIHI) is one of Canada’s premier sources of accurate, timely and comparable health information. Since its inception in 1994, CIHI has collected and analyzed information on health and health care in Canada and made it publicly available. Today, it is recognized as a world leader in administrative health data. CIHI’s data and its reports inform health policies, support the effective delivery of health services and raise awareness among Canadians about the factors that contribute to good health.

CIHI has been working to improve information on wait times and access to care. This has involved developing wait times indicators. It has also involved sharing information on progress and challenges for effective wait times measurement, and data collection and analysis.

The Government is providing an additional $22 million per year to CIHI to continue to build on these activities, including enhancing the coverage of health data systems so Canadians get information on their health care system, including information on patient wait times guarantees, and continuing the development of comparable health indicators. The funding will also enable CIHI to respond effectively to emerging priorities.

Celebrating Our Culture

As Canadians, we are proud of our history and culture and the things that make us unique. Canada is home to natural and historic treasures that are precious to Canadians and a part of who we are. Canadians are proud of sports they can call their own. Cultural events and historic dramatizations keep Canada’s culture and history alive.

Local Arts and Heritage Festivals

The Government is committed to strengthening the cultural experiences of Canadians. Events celebrating local arts and heritage often define these communities across the country. Budget 2007 provides support for activities and projects that engage Canadians in their communities through the performing and visual arts and in the expression, celebration and preservation of local culture. Eligible events will include festivals celebrating heritage, arts and culture through dance, music and drama and re-enactments of local historical events. In recognition of the importance of these activities, an investment of $30 million per year will be made.

Summer Museum Internships

Many museums, particularly in smaller and mid-sized communities, would benefit from the additional assistance of qualified, young workers. Budget 2007 provides $5 million per year to hire summer interns in these museums. This will provide on-the-job experience for youth to complement their education and contribute to the valuable ongoing work of these museums.

Canadian Heritage Sports

Canada’s New Government is committed to helping heritage sports, such as Canadian three-down football and lacrosse, flourish and continue to contribute to Canada’s national identity and culture. Budget 2007 establishes a fund to provide support for Canadian heritage sports to encourage participation by youth and the further development of these sports, with an investment of $1.5 million over the next two years.

Own the Podium—Supporting Canada’s Elite Winter Athletes

In 2005, the Government announced that it would contribute $11 million per year for five years to support the Own the Podium program to help Canada become the number one nation in terms of medals won at the 2010 Olympic Winter Games, and to place in the top three at the 2010 Paralympic Winter Games.

This federal funding, to be matched by contributions from the private sector and the Government of British Columbia, supports Canada’s elite winter athletes as they prepare for the 2010 Games. Budget 2007 accelerates the federal contribution in order to ensure that these athletes will have the security of uninterrupted training until the private sector comes on board with its support.

Official Languages Minority Communities

The Action Plan for Official Languages provided $642 million over five years for the promotion and development of official languages in Canada. Budget 2007 builds on this earlier commitment by providing an additional $30 million over the next two years for cultural and after-school activities and community centres. These activities will help enrich the benefits of bilingualism among youth, including through exchanges and youth programming.

2008 Francophonie Summit

Canada’s leadership role in La Francophonie reflects the vitality and importance of French culture in the country. In October 2008, the Government of Canada, in partnership with the Governments of Quebec and New Brunswick, will host the 12th Francophonie Summit in Quebec City.

Recognizing the unique opportunity the 2008 Summit represents for Canada, Budget 2007 allocates $52 million over the next two years for the organization of the 12th Francophonie Summit. This funding will ensure the participation of all francophone communities across the country.

Canada’s National Trust

Canadians are proud of their historic places, properties and lands, and they want to protect and preserve them. Building on the successful model of the National Trust in the United Kingdom, Budget 2007 provides $5 million over two years for the establishment of a new entity, Canada’s National Trust, that will protect lands, buildings and national treasures. The Trust will be able to receive donations and contributions to ensure its long-term sustainability. It will be managed and directed by private-sector individuals, and will be at arm’s length from the Government.

Table 3.7
A Better Canada (millions of dollars)

	2006–07	2007–08	2008–09	Total
Ensuring a Cleaner, Healthier Environment
Investing in Cleaner Energy
Tax incentives for clean energy generation		10	10	20
Subtotal—Investing in Cleaner Energy		10	10	20
Promoting Cleaner Transportation
Vehicle Efficiency Initiative
Rebate for fuel-efficient vehicles		80	80	160
Green Levy on fuel-inefficient vehicles1		-110	-105	-215
Scrappage of older vehicles		13	23	36
Subtotal		-17	-2	-19
Renewable fuels strategy
Operating incentive			120	120
Sustainable Development Technology Canada		200	25	225
Eliminating excise tax exemption for ethanol  and biodiesel2			-40	-40
Subtotal		200	105	305
Subtotal—Promoting Cleaner Transportation		183	103	286
Protecting Canada’s Natural Heritage
Conservation
Nature Conservancy of Canada	225			225
Great Bear Rainforest	30			30
Conserving sensitive lands		5	5	10
Preserving the National Capital		5	6	11
Delivering results on environmental enforcement		7	15	22
Species at Risk Act		55	55	110
Subtotal	255	72	81	408
National Water Strategy
Clean-up of the Great Lakes		2	9	11
International Joint Commission		2	3	5
Lake Simcoe		6	6	12
Lake Winnipeg		3	4	7
Keeping our oceans clean		8	11	19
Investments in fisheries science research		17	22	39
Subtotal		38	55	93
Subtotal—Protecting Canada’s Natural Heritage	255	109	136	500
Total—Ensuring a Cleaner, Healthier Environment	255	302	249	806
Investing in Canadians
Working Income Tax Benefit	140	550	555	1,245
Disability Savings Plan		25	115	140
Enabling Accessibility Fund		15	15	30
Charitable donations to private foundations		75	75	150
Protecting children from sexual exploitation		6	6	12
Status of Women		10	10	20
New Horizons for Seniors		10	10	20
Programs for Aboriginal Canadians
Aboriginal Justice Strategy		6	9	15
Housing in First Nations communities		150	150	300
First Nations participation in integrated Atlantic   commercial fisheries		10	10	20
Subtotal		166	169	335
Total—Investing in Canadians	140	857	955	1,952
Investing in the Health of Canadians
Canada Health Infoway	400			400
Patient Wait Times Guarantee Trust	612			612
Patient Wait Times Guarantee Pilots		10	10	20
Protecting women from cancer of the cervix		300		300
Canadian MedicAlert Foundation		2		2
Canadian Mental Health Commission		3	7	10
Canadian Institute for Health Information		22	22	44
Total—Investing in Health of Canadians	1,012	337	39	1,388
Celebrating Our Culture
Local arts and festivals		30	30	60
Summer museum internships		5	5	10
Canadian heritage sports		1	1	2
Official languages minority communities		15	15	30
2008 Francophonie Summit		13	38	52
Canada’s National Trust		2	3	5
Total—Celebrating Our Culture		66	92	158
Total Cost—A Better Canada	1,407	1,562	1,335	4,304
Less: Funding included in previous budgets2		226	228	455
Subtotal—A Better Canada	1,407	1,335	1,107	3,849
Note: Totals may not add due to rounding. 1 Net of removing the excise tax on heavy vehicles. 2 Based on 2006 use of renewable fuels in Canada. 3 The rebate for fuel-efficient vehicles, scrappage of older vehicles, the Species at Risk Act, Aboriginal Justice Strategy, housing in First Nations communites initiatives are partly or totally funded from existing sources of funds.

 

---

¹ Funding will be accounted for in 2006–07 and paid into a third-party trust in 2007–08, once legislation has been passed, for only those provinces and territories that have made public commitments to implement a patient wait times guarantee. Those provinces and territories will have the flexibility to draw down the funding as they require over the next three years. [Return]

Table of Contents - Previous - Next -