Recently, our government announced $1 billion in savings for this and next year. These savings were a result of a government-wide review to ensure that your tax dollars are invested in programs that deliver results and provide value for money. These savings are a result of finding unused program money, reducing overhead administrative costs and cancelling some old programs that had outlived their usefulness. There has been some confusion and some incorrect information reported on this $1 billon in annual savings and I wanted to take this opportunity to provide you with some context and the facts.

 

First, these savings need to be put into context. The Government of Canada spends about $200 billion a year. These savings amount to $1 billion out of that $200 billion; this is the equivalent of asking a household to identify $100 in annual savings out of annual household budget of $20,000. This is entirely reasonable and Canadians expect us to ensure that their tax dollars are wisely spent.

 

Second, this year alone we are spending an additional $5 billion in new programs, programs such as our new Universal Childcare Benefit, new money for municipal infrastructure and the hiring of additional RCMP officers. We are going to use the $1 billion in savings to pay for part of this new spending.

 

Third, I want to provide you with some examples of specific spending reductions that have been misrepresented in recent weeks. For example, our review has indicated that by combining several administrative offices for Status of Women, we can save $5 million a year in administrative costs. Therefore, we decided to reduce this budget from $28.4 to $23.4 million a year. Status of Women will still be provided an annual budget of $23.4 million, of which $10.8 will be dedicated directly to women’s programs. We believe in the full participation of women in Canadian society and will continue to support programs for women, but only if they are managed efficiently.

 

Another example is our decision to reduce the Museums Assistance Program - only one of many museums programs - by $2.3 million a year, from $14.1 to $11.8 million a year.  We currently spend a total of $245.3 million annually on museums across the country, so $2.3 million is a reduction of less than one per-cent of our overall museums budget. Furthermore, we provided the Canada Council for the Arts with an additional $20 million this year and we will provide them with an additional $30 million next year, money which will promote arts and culture across Canada. We believe that the federal government has an important role to play in preserving Canadian heritage and history, but once again, only if the programs are managed efficiently.

 

Still yet another example is the $17.7 million we saved over the next two years by eliminating money that had gone to literacy advocacy groups. This money was not being used for actual literacy training and the program was not delivering the results that were expected. We are still spending $81 million over the next two years on literacy training for disadvantaged groups such as aboriginal peoples, people with disabilities, immigrants, and EI claimants. Once again, the government is investing in literacy training, but only if that training works and only if the dollars are wisely spent.

 

These are just some of the examples of savings we have identified. I think that you’ll agree that these are reasonable and justifiable. Claims by some that these cuts threaten the existence of these programs are incorrect. After the waste and mismanagement of recent years, we made a solemn commitment in the last election to do things differently in Ottawa. We will make responsible spending the norm and will require that all new and existing programs go through a systematic and rigorous examination. This will ensure that government only approves funds that are needed to achieve measurable results in a way that is effective and ensures value for money. This is what hard working Canadians expect of us and no less.

 

You are always welcome to share your opinions, concerns and ideas with me.