The Budget in Brief 1995 - 6
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Archived - Getting Government Right

"If our purpose is to get the economy right - and it is - then the best thing we can do is to get the government right - and this budget does."

Program Review

Program Review was a year-long, top-to-bottom review of all departmental programs, covering about $52 billion in spending.

Its main objective was to review all categories of federal government spending - except certain statutory programs such as Unemployment Insurance, Old Age Security and major transfers to the provinces - in order to bring about the most effective and cost- efficient way of delivering programs and services to Canadians.

The actions resulting from this review will substantially reduce expenditures over the next three years - $3.9 billion in 1995-96, $5.9 billion in 1996-97 and $7.2 billion in 1997-98. By 1997-98, spending subject to the Program Review will have declined almost 19 per cent relative to 1994-95.

Spending levels will be halved in some departments. The federal public service including defence is expected to decline by about 45,000 or 14 per cent by the time the actions in this budget are fully implemented.

Highlights of Program Review

Some programs will be eliminated or substantially reduced:

• transportation subsidies under the Western Grain Transportation Act, the Atlantic Region Freight Assistance Act and the Maritime Freight Rates Act will be terminated;
• dairy subsidies will be reduced by 30 per cent over the next two years; and
• total spending on business subsidies will decline from $3.8 billion in 1994-95 to $1.5 billion by 1997-98 - by close to 60 per cent over the next three years.

Some programs will be redesigned or consolidated to become more efficient and cost-effective including:

• Regional Development - agencies will play new roles focusing on the needs of small- and medium-sized businesses;
• Canada Coast Guard and the Department of Fisheries and Oceans fleets will be integrated; and
• Departments of Health, Agriculture and Agri-Food, Fisheries and Oceans, and Industry will work together on measures to improve the food inspection system.

Some program activities will be devolved to other levels of government:

• authorities for freshwater habitat management and other related inland water responsibilities will be transferred to the provinces;
• recreational harbours will be divested to municipalities;
• Forest Resource Development Agreements and Mineral Development Agreements with the provinces will be discontinued; and
• airports will be transferred to local authorities.

Some activities will be commercialized or privatized including:

• remaining interest in Cameco Corporation and Petro-Canada;
• Canadian National (CN);
• Air Navigation System; and
• Canada Communication Group.

Cost recovery and user fees will be increased or imposed on certain services including:

• food and meat inspection, drug approval, fisheries inspection, marine services, customized weather forecasting;
• an immigration fee of $975 per adult immigrant; and
• consular and trade development services.

Better management of government:

• the Auditor General will report to Parliament more frequently - up to five times annually;
• a new Expenditure Management System will be implemented to ensure that programs are permanently subject to strict cost control and evaluation; and
• more productive and streamlined operations through innovative service delivery.

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