CCA Bulletin 40/06

Ottawa, September 26, 2006

The First Cuts Are Not Always the Deepest: Federal Government Announces $1 Billion Reallocation of Expenditures

Just the Facts

On September 25, 2006, the Minister of Finance, the Hon. Jim Flaherty, and the President of the Treasury Board, the Hon. John Baird, announced a broad set of cuts to federal government expenditures totaling just over one billion dollars. This exercise was previously announced in the May 2, 2006 federal budget, but the details were only made public yesterday.

Under the regrettable guise of cutting "wasteful programs", there appears to be two major areas where the interests of the arts and culture sector are directly affected. These cuts are a difficult pill to swallow given that they were announced on the same day that the Government of Canada reported a $13.2 billion surplus (over $5 billion greater than estimated), which will be entirely dedicated to paying down the debt.

The first is a reduction of $4.63 million to the Museums Assistance Program (MAP) at the Department of Canadian Heritage (PCH). This program is hardly "wasteful", given that it provides financial assistance to regional Canadian museums and related institutions for activities that facilitate Canadians' access to their heritage, foster professionalism in museological activities and operations and foster the preservation, protection, and management of representative collections of Aboriginal cultures.

Another $1.105 million will be removed from "Operating / Program Efficiencies" at PCH (for which there are currently no details, despite inquiries by the CCA) and a reduction of some $12 million will be imposed on the Public Diplomacy program at the Department of Foreign Affairs, which is a program that has funded academics and cultural organizations for their international work.

The Canadian Conference of the Arts (CCA) is disappointed at the news of yesterday's announcement, as the Government's decisions run counter to the views expressed in our recently-filed pre-budget submission, "A Creative New Way of Thinking". Included among the CCA's nine recommendations to the Finance Committee are the following:

• The CCA asks the Standing Committee on Finance to ensure that it understands the unique funding needs of each of the PCH's agencies and institutions, and recommends to the Minister of Finance and his officials that they address the critical nature of these budgetary challenges.
• The CCA encourages the Minister of Finance and the Standing Committee on Finance to address the funding situation of the federal museum and heritage institutions in the upcoming federal budget, as well as the urgency of the development and implementation of a new federal museums policy.
• The CCA calls upon the Standing Committee on Finance to recommend placing the PCH's "Tomorrow Starts Today" suite of programs on a permanent funding basis and expand matching fund programs to complement the changes in the capital gains tax treatment announced in Budget 2006. 

Further, yesterday's announcement unfortunately does not mean that the worst is necessarily over for the arts and culture sector. For instance, the Government has already committed to reducing federal spending by the same amount once again in 2007-8. The government also announced yesterday that the budgetary surplus for 2005-06 rang in at $13.2 billion, all of which will be dedicated to paying down the national debt. None of the surplus will be used for new support to programs or other federal initiatives, which is problematic given the chronic nature of under-funding and a general lack of resources for our important sector.

Tell Me More.

The cuts to the Museum Assistance Program (MAP) are a serious disappointment and the CCA shares the dismay of the Canadian Museums Association (CMA), which has been has been actively calling for the development of a new federal museums policy and a funding strategy for some years. The cut further reduces the budget of the Museums Assistance Program to just over $ 3 million and the CCA continues to unequivocally support the CMA in calling for the Government to accelerate the inauguration of a new, much-needed museums policy and funding program, which Minister Oda had supported strongly when she was Heritage Opposition critic.

Other cuts may affect the cultural sector and their real impact remains to be ascertained. This is the case for example with the cuts of more than $55 million to youth employment programs that could impact all cultural institutions that rely on young workers during the summer as many organizations, from festivals to museums to galleries across the country take advantage of youth employment programs each and every year in order to fill staff vacancies. This additional way of supporting arts and culture may very well have vanished.

Finally, the cuts to the Public Diplomacy program at the Department of Foreign Affairs will be acutely felt by our academics and cultural organizations, which have played an increasingly active and valuable role in the promotion of Canadian studies and culture abroad. Their presence on the international stage enhances the appreciation of Canada as a sophisticated and diverse society. It is the hope of the CCA that the Minister of Foreign Affairs, the Hon. Peter McKay, will soon clarify the Government's position on public diplomacy, and the place of arts and culture in the broader context of Canada's new international policy.

The expenditure cuts present some interesting insights into "Canada's new government". The announcement included over $90 million dollars of spending cuts to the broadly-defined "voluntary sector", including the outright elimination of the Canadian Volunteerism Initiative, an initiative of the previous government.

These cuts are a signal that the challenge to voluntary and civil society organizations that receive federal support is no longer merely to advocate for increased funding, but to present a compelling case about the benefits that accrue to all Canadians from their work. Yesterday's announcements can also be interpreted as a potential pre-cursor to the 2007 federal budget. The new Government has clearly indicated that it is reducing the role of the federal government in the lives of Canadians where they deem its role is non-essential.

The arts and culture sector must accept that its principal mission for the next year is one of rationalizing continued federal support through a variety of programs and agencies. We can take absolutely nothing for granted - the clock is ticking. What we, as members of the arts and culture sector and as citizens, deem to be essential and valuable must be continually and consistently communicated to all federal officials, both elected and non-elected.

What Can I Do?

The position of the Government of Canada is that the announced expenditure review measures are not subject to appeal, as each cut was reportedly reviewed and approved by the Federal Cabinet. The CCA nevertheless encourages you to speak with your Member of Parliament and encourage them to adopt a better understanding of the vital role that voluntary and civil society organizations play in the lives of all Canadians. You should stress the importance of maintaining an active partnership between the federal government and civil society, especially the arts and culture sector, which is a vital component of the democracy we all cherish as Canadians.

This is not a test – the new Government is exercising its responsibility in the review of all programs and services of the federal government. It is up to us to work collectively to ensure that in so doing, they fully appreciate what is at stake for all Canadians.