Subject: Analysis of Environment Canada's Budget - Special Report
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THE GALLON ENVIRONMENT LETTER
Canadian Institute for Business and the Environment
Institut Canadien du Commerce et de l'environnement
506 Victoria Ave., Montreal, Quebec H3Y 2R5
Ph. (514) 369 0230, Fax (514) 369 3282
Email cibe@web.net
Vol. 2, No. 14, June 5, 1998=20
SPECIAL REPORT ON ENVIRONMENT CANADA'S BUDGET OF=20
$551.0 MILLION IN 199899
This is a report analyzing Environment Canada's 199899 budget.
We examined the Estimates, entitled, "Environment Canada, 199899=20
Estimates, Parts III Report on Plans and Priorities", and we report
in some detail the allocation of funds to Environment Canada by Cabinet.
The total net budget of Environment Canada for the fiscal year 199899=20
is $551.0 million. It continues a downward trend in funding for environment
in Canada,
$551.0 million in 1998 to 1999
$599.0 million in 1997 to 1998=20
$621.3 million in 1996 to 1997
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$358.2 MILLION IS CANADA'S ACTUAL ENVIRONMENTAL=20
PROTECTION BUDGET WITHOUT INCLUDING=20
WEATHER REPORTING
Unlike other national environment ministries, the federal government=20
combines the budgets of weather reporting and environmental protection
under the umbrella of environmental protection. Other governments have
the functions separated. Canada's weather reporting function in 1998 to=20
99 was allocated $192.8 million, or 35% of Environment Canada's $551.0=20
million budget. This leaves actually just $358.2 million for environmental=
=20
protection and emissions reductions efforts in Canada. The U.S.=20
Environmental Protection Agency doesn't include the weather office.=20
Japan and Germany don't combine weather reporting functions with=20
environmental protection. Australia includes weather within its Environment
Ministry, but report the budgets separately. Even the United Nations has=20
separate departments =97 the United Nations Environment Programme=20
(UNEP) and the World Meteorolgical Organization (WMO). This places=20
Canada's actual allocation for pollution control and biodiversity protection=
=20
near the lower end of OECD nations in funding environmental protection.
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CANADA'S SPENDS LESS THAN HALF OF WHAT=20
THE U.S. SPENDS ON ENVIRONMENTAL PROTECTION=20
FOR ITS POPULATION
The United States with ten times the population and economic activity=20
as Canada, has estimated its 199899 spending for the US EPA at $7.6=20
billion. Therefore Canada's equivalent environment budget should be=20
closer to $760 million (10 per cent of the U.S.). That amount would=20
representative on a population and GDP equivalent basis. And this is=20
not even taking into account the lower Canadian dollar. The C$358.2=20
million that Environment Canada will spend on environmental protection=20
is about US$230 million, which makes Canada's Federal Government=20
allocation to the environment paltry. See US EPA budget at website=20
<http://www.epa.gov/ocfo/budget.htmentsDirectctory/.nfo/hot/coho.pdf>http://www.epa.gov/ocfo/budget.htm/.tsDirectctory/.nfo/hot/coho.pdf
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ENVIRONMENT CANADA BUDGET ESTIMATES=20
NEED CLARITY
Most government "Estimates" are like the financial statements prepared=20
by corporations. Estimates report on last year's spending and project the=20
new year's government budget. As such, the "Estimates" are supposed to=20
provide clear numbers on spending for each of the departments, however
Environment Canada's Estimates are less clear. Instead of providing=20
information on department by department basis, Environment Canada=20
provides the information in vague subject headings, called "A Greener=20
Society", "A Healthy Environment", "Safety From Environmental=20
Hazards" (this is where the funds for weather reporting are buried),=20
and "Administration".=20
Other environment ministry in Canada and the U.S. provide more detailed
financial reports. The U.S. EPA, for example, breaks out its expenditures=
=20
along departmental budget lines like air, water and hazardous waste.=
Ontario,=20
with some of the worst budget cuts in North America..=20
Environment Canada does not provide the past two to three years spending=20
pattern. The US EPA does. And the Ontario Ministry of the Environment=20
Estimates show the last two years of actual expenditures. Company annual=20
reports always show several previous years' actual spending.
****************************************************************
NOT CLEAR HOW MUCH FOR ACTUAL ENFORCEMENT OF
FEDERAL ENVIRONMENTAL LAW
Environment Canada plans to spend $16.9 million on "compliance and
enforcement". What is not clear is Environment Canada defines as=20
enforcement and compliance activity. A loose definition may result in
a liberal interpretation that includes all kinds of information and=
awareness
work by the ministry that is really not direct compliance and enforcement
work. What is also not clear, is how much funding actually goes to the=20
Enforcement Branch of Environment Canada.
The Estimates did state, "environmental laws and regulations, clearly=20
understood and fairly and effectively enforced, are essential to the=20
protection of Canada's endangered species and to the provision of=20
clean air and water. Environment Canada's achievements over the=20
past year have included strengthened enforcement capacity.....".
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CAPITAL SPENDING FOR ENVIRONMENTAL=20
PROTECTION ELIMINATED
Environment Canada's planned spending in 199898 for capital investment
in environmental protection by Environment Canada is virtually nil. The only=
=20
capital spending listed in the Environment Canada Estimates was for weather=
=20
satellites and weather stations. For example, $4.4 million was allocated=20
to the "Doppler Upgrade" for weather radar network modernization; $700,000=
=20
will be provided for the construction of a weather station in Eureka, NWT
***********************************************************
FUNDING FOR CANADIAN ENVIRONMENT INDUSTRY=20
STRATEGY ELIMINATED
One of the most successful programs was the Canadian Environment=20
Industry Strategy (CEIS) approved by Cabinet November 1993. With 22=20
initiatives, it provided a forwardlooking framework for promoting both=20
environmental protection and economic growth and job creation. It=20
supported that growth of an industry that today is amongst the top ten=20
employers in Canada with 123,000 identified working in the 14 industry=20
subsectors. The modest $5 million a year strategy has been dropped, even=20
after the second phase of the program had been designed and submitted to=20
the Dept. of Finance.
***********************************************************
CLIMATE CHANGE =97 $10M TO ENVIRONMENT AND=20
$40M TO NATURAL RESOURCES
The $50 million a year for the three year $150 million climate change fund
announced in the budget, according to the estimates, is split $10 million to=
=20
Environment Canada and $40 million to Natural Resources Canada (NRCan)=20
Ten million dollars has been provided to help fund the Climate Change
Secretariat.=20
Environment Canada will be response primarily for managing education,=20
awareness and international responses. It will also have a role in promoting=
=20
technology development and the reduction of GHG from nonenergy sources=20
like methane gas collection from landfills. NRCan, with Industry Canada,=
will=20
be responsible for the domestic action in Canada, and for major energy
producers=20
and major energy users CO2 reduction efforts. All three ministries will be=
=20
responsible for promoting the development of technologies for greenhouse gas=
=20
(GHG) emissions reduction.
Except for the funds to create and support the functions of the new
independent
Climate Change Secretariat, little if any of the $50 million will go to
helping
the three ministries rearrange and gear up their ministry staff to meet the=
=20
increased workload brought on by the $150 million GHG reduction=20
initiatives. Many Ministry branches are being asked to find the human and=20
financial resources from within. As a result, resources traditionally used=
to=20
address important environmental issues like water pollution and toxic site=
=20
remediation are now being diverted to the climate change effort. And staff=
=20
are being asked to increase their workload. Climate change is important, but=
=20
the other functions of environmental protection should not suffer as a=
result
of=20
diverting resources to climate change, when, in fact, resource are still
required=20
for the ministries to administer the other important programs.=20
*********************************************************
FEDERAL CIVIL SERVANTS CRUSHED UNDER=20
INCREASED WORKLOAD
A new study conducted by the University of Ottawa, commissioned=20
by the Association of Professional Executives in the Public Service,=20
reveals that senior civil servants are crumbling under the increased=20
workload and reduced funding within the federal government ministries
like Environment. CIBE concurs, having, ourselves, visited many=20
Environment Canada offices, we find that they are being asked=20
to deliver the same amount of services with 40% less resources. It=20
appears that the federal government does not want to reveal the huge=20
extent of the cut in services =97 and therefore has asked its remaining=20
employees, that haven't been cut, to carry the work of those who have=20
been cut. But it is killing them.=20
The study found that the Canadian civil servants "have twice the=20
overall distress of their British counterparts". It found that "Incidences=
=20
of physical problems are 39% above the norm. Anxiety is 45% higher,=20
and the number of problems with day to day social functioning are 29%
higher." The report further stated that, "federal executives work longer=20
hours, spend more time away from home and have lower job satisfaction=20
than do people in other occupations.... executives work an average=20
of 53 hours a week and spend six weeks away from home on=20
government business." The research team, led by Dr. Wayne=20
Cornell of the University of Ottawa's faculty of medicine and=20
Dr. Julian Barling of the School of Business at Queen's University=20
said they were alarmed to discover that "a number of executives had=20
sought medical attention over the previous three months for warning=20
signs of longer term disease, such as migraines, sleep disorders and=20
gastrointestinal problems (ulcers)". The study was based on a survey=20
of 1,200 Canadian federal government executives conducted in October=20
1997. Source, "Sick and Tired", by Kathryn May, The Ottawa Citizen,=20
June 1, 1998.
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ENVIRONMENT CANADA FUNDING FOR THE REGIONS
Of the $252.8 million allocated by Environment Canada to be spent=20
in the regions, the Prairies and North received the most with $65.6 million.=
=20
Ontario was second with $55.8 million. This is a relatively small=20
amount considering this is 22% of the total allocated to the regions, and=20
Ontario contains over 40 per cent of Canada's industrial and municipal=20
polluting activity. Some have postulated that Ontario did not need as much=
=20
federal attention since it had a well developed environmental protection=20
and enforcement regime. However, given that in the last three years,=20
Ontario has slashed its environmental funding and enforcement, Environment
Canada may need to step in an assist, particularly given that Ontario=20
is ranked as the third largest emitter out of 61 states and provinces in=20
the U.S. and Canada. Ontario also contains 16 of the 42 toxic water=20
hotspots on the Great Lakes that remain to be cleaned up. Regional=20
funding is as follows,
Prairies and North $65.6 million
Ontario 55.8 million
Pacific & Yukon 52.5 million
Quebec 44.6 million
Atlantic 34.3 million
It may be that one of the reasons the Prairie and North budget is so high,=
is=20
that the sub budget line of "Safety from Environmental Hazards" is=20
extraordinarily high =97 $36.5m of the $65.6m. That likely means that=20
much of the spending there is being allocated to weather reporting for=20
Canada, and not for pollution control and environmental enhancement=20
for the prairies and the Northwest Territories.
***************************************************************
$367,000 A YEAR TO THE FUR INSTITUTE OF CANADA
Somewhat of an anomaly is the fact that Environment Canada is=20
providing $367,000 a year to the Fur Institute of Canada to promote=20
wild fur trapping in Canada. The Environment Canada estimates that=20
over the four years from 1997 to 2001 it will provide the Fur Institute=20
of Canada with $1,468,000. This type of resource extraction would=20
appear to be less environmental protection (e.g., protection of=
biodiversity)=20
and more of a natural resources utilization activity. Members of=20
Parliament sitting on the Standing Committee on Environment and=20
Sustainable Development have questioned the appropriateness of=20
Environment Canada dedicating its limited resources to trapping=20
animals when the same money could be redirected to environmental=20
protection. Some point out, for example, that $367,000 a year to=20
Pollution Probe or to the Canadian Environment Industry Association=20
(CEIA) would bring greater environmental protection gains, than by=20
providing the funds to support fur animal trapping.
A visit to the Fur Institute's website, for example, shows that the Fur=20
Institute helped support the Ontario Fur Managers Federation Fur=20
Fashion Show held August 22 and 23, 1997 in Renfrew, Ontario,=20
where people "got to see a fabulous display of the finest in wild fur in=20
a fashion show presented by the Fur Institute of Canada."
Also, it was reported on the web site that, "the Fur Institute of Canada=20
focussed a great deal of our resources on combatting the European=20
Union's proposed ban on wild fur imports. We have lead the fur industry's=20
charge on this issue and played a major role in ensuring that our=20
government recognizes the importance of all sectors of the fur trade
in the local and regional economies." Visit the Fur Institute of=20
Canada's website at <http://www.fur.ca//ocfo/budget.htm/.tsDirectctory/.nfo/hot/coho.pdf>http://www.fur.ca./ocfo/budget.htm/.tsDirectctory/.nfo/hot/coho.pdf
*********************************************************
$2.9 MILLION A YEAR TO THE NORTH AMERICAN WATERFOWL
MANAGEMENT PLAN
Environment Canada is committed to spending about $12.0 million=20
over the four years from 1997 to 2001 on the North American Waterfowl=20
Management Plan in Canada. It "will create new wildlife areas and=20
migratory bird sanctuaries and a network of important bird areas,=20
and strengthen the incentives for managing private lands for conservation=20
purposes." It will "renew and build on the successes of the North=20
American Waterfowl Management Plan (NAWMP).
***********************************************************
FUNDS TO THE GLOBE INTERNATIONAL CONFERENCES AND=20
ENVIRONMENT INDUSTRY STRATEGY ELIMINATED
One of the most successful sectors in creating jobs in Canada over the=20
past 15 years has been the environment industry sector. It grew from=20
employing less than 40,000 to employing more than 123,000 today,=20
participating in close to $16.4 billion in annual environmental clean=20
up in Canada. In November 1993, Environment Canada with Industry=20
Canada launched the Canadian Environment Industry Strategy (CEIS),=20
composed of 22 initiatives to help the industry promote environmental=20
business in Canada and in the international market. The CEIS strategy=20
was allowed to lapse without implementing all 22 of the initiatives.=20
Requests to renew and replenish the strategy are not reflected in the=20
Estimates. Similarly, Estimates show that Environment Canada dropped=20
support for one of North America's most successful biannual environmental=20
business trade shows and conferences, the "GLOBE Environmental Trade=20
Show" which should be next held in the year 2000. Usually 12,000 attend,=20
visiting 400 trade show booths from more than 50 countries. Canadian
companies generate millions of dollars in business from the trade show. See
the GLOBE =9198 website at, <http://www.globe.ca/cfo/budget.htm/.tsDirectctory/.nfo/hot/coho.pdf>http://www.globe.ca/.fo/budget.htm/.tsDirectctory/.nfo/hot/coho.pdf
********************************************************
$21.6 MILLION FOR COMMUNITIES GREENER SOCIETY
Environment Canada set aside $6.0 million last year and $5.2 million in=20
each of the next three years to sponsor individual and community actions=20
to promote sustainable development and greener societies. Called the=20
Action 21 Program, it may also be used to help communities generate=20
activities to reduce greenhouse gas emissions. See Environment Canada's=20
Green Lane <http://www.doe.ca/envhome.html.htm/.tsDirectctory/.nfo/hot/coho.pdf>http://www.doe.ca/envhome.html.htm/.tsDirectctory/.nfo/hot/coho.pdf
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Copyright (c) 1998 Canadian Institute for
Business and the Environment, Montreal
All rights reserved.
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