We send the chair our best wishes.
I am glad to be here this morning, accompanied by our deputy minister of Veterans Affairs Canada, Mary Chaput.
I'd like to take a moment to talk about what we're doing for veterans.
[Translation]
Before we implemented our initiative for cutting red tape, applications for our services or programs involved numerous forms and telephone calls. Thanks to this plan, most calls, forms and emails have been eliminated.
[English]
Before our cutting red tape efforts, veterans had to send in countless receipts for VIP services that they were already approved to receive. We have fundamentally changed this important program for veterans and their families.
With our cutting red tape efforts, veterans are now receiving decisions on their benefit applications weeks faster. Veterans receive over 85% of all benefit applications made to the federal government: that means a “yes”.
[Translation]
Our government, the and myself, as a minister, are determined to provide help and assistance to veterans and their families in order to give them the tools they need for a smooth and successful transition. We have plenty of work ahead of us, and we are devoted to the task at hand. That is why I am here this morning. I have two requests to submit to the members of the committee.
Those two initiatives are mentioned in supplementary estimates (C)—for the current fiscal year—and in the main estimates for the next fiscal year tabled by our government last Monday in the House.
[English]
Each member has been provided with a chart that outlines the total investments since 2005. This chart clearly shows how the Veterans Affairs budget has increased massively since 2006.
I always say that we are a needs-based organization and we are there to meet the needs of our veterans. In terms of numbers, this means that, on average, in 2005, the budget for Veterans Affairs was $2.8 billion. Today I am seeking authority to spend upwards of and to invest more than $3.6 billion.
That's an increase, as you can see, of $800 million for our veterans. Of this money, 90% is going directly into the pockets of our veterans.
Our work is not yet done this year. That's why I'm also seeking support to approve the supplementary estimates (C) and of course the main estimates for next year.
For the balance of this fiscal year, I am asking you this morning to approve $44 million, in supplementary estimates (C), of additional funding for mainly the veterans independence program, VIP; the earnings loss benefit, which is the core of the new Veterans Charter; and veterans' children's education.
[Translation]
I am confident this morning that, by the end of the meeting, I will have your support to ensure that the Canadian government will continue to provide our veterans and their families with the benefits and programs they are entitled to and deserve.
You are probably familiar with the Veterans Independence Program. That's a very practical program that has a direct impact on the lives of our veterans and enables them to pay for snow removal of driveways in the winter, lawn mowing in the summer, housekeeping, window washing and so on. That program is available to our injured veterans and their families.
With the initiative for cutting red tape we have implemented, veterans now receive up-front payments twice a year and no longer have to submit receipts for small amounts that used to be reimbursed several weeks after the service had been provided to them.
[English]
Since January 1, more than 17,000 veterans and widows have received an average first installment of $1,300 to go towards these much-needed services. Of course, I cannot speak to any individual veteran, but let's talk about a veteran who is living in Toronto. He's 86 and used to be under the old veterans independence program. He had to fill out a form each time, attach a receipt, mail it to Veterans Affairs, and wait a few weeks to get his money back. This system took much of his time. He would spend hours a month on the phone with Veterans Affairs trying to track down where his money was and do some administrative tasks.
Now he gets the money up front. He can arrange for payment with his service provider so he's no longer spending time going back and forth with Veterans Affairs. Of course, veterans should keep their receipts, but they no longer have to submit them each time to get their money back. This is cutting millions of transactions. This is happening for this 86-year-old veteran in Toronto. This is also happening in P.E.I., in Manitoba, in Saskatchewan. Everywhere in our communities, veterans are getting the money up front and can move forward with respect to the veterans independence program.
[Translation]
The reason I am here this morning is to talk about the Veterans Independence Program.
[English]
That's the reason I'm taking time to describe this program to you this morning. That's why I'm here for the supplementary estimates (C). I'm seeking your support. I hope I'll have your support, because it's for our veterans. That's for supplementary estimates (C).
The main business, the main core for the next fiscal year is the main estimates. This is the money that will allow this department, our government, to provide the services to our veterans.
[Translation]
This morning, I am seeking authority to invest $3.637 billion for our veterans over the next fiscal year. That is $69 million more than this year. Those figures may seem high, but allow me to provide you with a breakdown.
To support veterans and their families, we expect to provide more than 38,000 disability benefits and continue to make payments directly to veterans for disabilities sustained in their military service.
We will also provide support to nearly 700 veterans for career transition services.
In addition, we support our deceased veterans' widowed spouses. Almost 38,000 people are also eligible for the Veterans Independence Program. We will process 5,000 applications for rehabilitation, and over 9,000 veterans will benefit from long-term care thanks to the partnership with the provinces. Of course, modifications sometimes need to be made to accommodate disabilities and allow our veterans to stay at home.
I think we all have a nice opportunity this morning to confirm our commitment to veterans. That's why I am confident I will receive your support regarding supplementary estimates (C) and close out the current fiscal year—especially when it comes to the Veterans Independence Program—and that I will also receive your support concerning the 2013-2014 main estimates.
[English]
I look forward to your questions.
Thank you.
:
Yes, sure. I would also like to thank you at this very moment for your hire a veteran initiative. We are getting pretty good comments from all across the country from companies that are willing to hire veterans.
More than 5,000 veterans are released from our Canadian armed forces every year. Some of them are willing to retire, but some of them still want to be active, whether they voluntarily leave the Canadian armed forces or have been medically released.
One good example of the cutting red tape initiative we have implemented is certainly the forms. Many veterans said they had to deal with a lot of forms when they had to deal with us. So far we have eliminated 250 forms from the department. Thanks to the people at the department, this is making life easier for our veterans.
Also, as I have already said, we have simplified our procedure in the veterans independence program, but we are also taking the same approach for health-related travel expenses. Whenever a veteran has to go to a medical facility to see a specialist for some services, he is entitled to have his travel expenses covered.
Once again it was the same thing. They had to fill out forms, send the bill, and wait for it to be processed. It was lengthy, but it was a routine administrative task. So we are moving forward with upfront payments since we have a clear idea of the needs of every veteran. That's another example.
So VIP, health-related, and the elimination of forms are three clear examples of our cutting red tape initiative.
Also the first step we took was to communicate more clearly with veterans. You can ask me in what way it is diminishing red tape. We realized by communicating more efficiently with veterans, and this has been requested by the Veterans Ombudsman, veterans get a better understanding of the decision and of the process. This reduces their requests and their demands because it is clearer. This also has an impact on reducing red tape.
:
Thank you, Mr. Chairman.
Good morning, Mr. Minister.
I want to ask you about your trip to Charlottetown last month. I asked you about it in question period, but I think the time restriction didn't allow you to give a complete answer.
Last month, you went to Charlottetown and you contacted the local media to tell them that you were going to do an interview with them on a Friday afternoon, which would be embargoed until five o'clock. Your employees were aware of this plan but had no idea why you were coming to town under a cloak of secrecy, where there was only going to be publicity at five o'clock. You would understand, given the cutbacks within your department and the disproportionate cutbacks in the civil service in my province, that people were clean terrified.
Sir, whoever gave you that advice, I presume, were from Ottawa because they clearly don't know the state of stress within the national headquarters over the cutbacks that have happened. Probably the worst thing you could say in Charlottetown is, “I'm from Ottawa and I'm here to help”.
So when you came to Charlottetown, sir, you made two announcements that were embargoed until five o'clock on a Friday afternoon. I have here the coverage from The Guardian. Of the two announcements you made, one was about the opening of an access office. What you didn't say and what I would invite you to clarify here today is that the access office is going to replace a district office and you will have two full-time equivalents in that access office. I would ask you to confirm that the staffing of the office will be two full-time equivalents.
The other thing you said, and I'm reading from The Guardian now, is that you announced Friday:
...three new director general positions within Veterans Affairs Canada will be posted to Charlottetown.
The director general of communications, director general of finance and director general of Canada Remembers positions within the department will all be posted externally and those who are chosen for these positions will have to live and work in P.E.I.
I invite you today to clarify what you said in the local media, because you know and I know that these are not new positions. You know and I know that two of these positions have always been based in Charlottetown, and you announced back in May that the third one was coming and it hasn't happened yet.
You have a Mr. Schwenker who stalks me on Twitter, and every time I say something that he thinks is inaccurate, he corrects it. Apparently he doesn't know to contact The Guardian to correct these inaccuracies, so I'm asking you to do it.
These are my two questions. Will you confirm that the access office will have only two full-time equivalents? Will you now correct the record with respect to your announcement on these supposedly new director general positions?
Thank you, sir.
:
I thank you for the question.
I hope I will be able to get a second question from you. I will try to make the answer as short as I can.
[Translation]
I have to specify that these are new competitions for three existing positions. As you know, when I was appointed to my position, the director of communications was based in Ottawa. As you can see, that position is now based in Charlottetown. The first competition has been held. Unfortunately, there were no candidates. That is why we are launching a second competition. It is open to all Canadians and anyone from Prince Edward Island. I would very much like to fill those three positions in Charlottetown, and I am confident I will be able to do so.
As you said—and this bears repeating—Charlottetown is the flagship of the Department of Veterans Affairs and the Canadian government. This is the only department located in one of the country's regions. I think you can rightly be proud of that. I am very aware of the benefits to regional economies stemming from the Veterans Affairs office in Charlottetown.
I will now answer your second question about the access centre. I feel that, when more than 1,000 employees are dedicated to services for veterans, it is only natural for those Charlottetown veterans to have direct access to the headquarters, or the central agency.
:
I thank you for your question.
I will tell you that in my personal experience as a member of Parliament, veterans naturally go to their member of Parliament, because it's the link between them and the government for which they served this country. Whatever party you are in, it's important, I believe, as a member of Parliament, to always welcome veterans, listen to them, and of course convey their requests to me, which many members already do. Actually, I must tell you that I'm always amazed by the level of commitment that members of Parliament have for their veterans.
On a broader basis, I invite all members of Parliament to take initiatives in the Year of the Korean War Veteran. There are Korean War veterans in every part of the country. We used to say that it was the forgotten war. I thank the chair for raising this issue. I think we have a great opportunity.
I want to tell you in advance that this year's Remembrance Week will be focused on all veterans, but we'll pay special attention to Korean War veterans. Why is that? Because, of course, 60 years ago, in 1953, those Canadians went abroad and fought for liberty and for freedom, and today in that country we have the 13th industrial power in the world. I always brag about Samsung, Hyundai, Kia, Daou, and all those Korean companies that are part of our daily lives. They are due to the successes of these Korean people, who have benefited from the sacrifices of the Canadians.
Yes, we will put emphasis on the Year of the Korean War Veteran, and we will raise awareness. That's the other mandate. My department can work with all members to make those stories known and to awake the curiosity of Canadians about the Korean War. Canadians were there. What did they do? What did they accomplish? What were the big fights? Who was involved? Those are the kinds of questions that we're seeking to answer. That's an important part of the mandate.
This morning I'm asking for money that will go mainly into the pockets of veterans, but one...and this committee has already approved it, since the first study in this session was about Remembrance. There are important dates, so that's for Remembrance.
To conclude, the other part where you can get involved is in encouraging corporations in your riding to hire veterans. There's a strong appetite and there's a strong will, so we can be facilitators. My department and our resources, and charities such as True Patriot Love and Canada Company, are involved in our helmets to hardhats initiative. There are a lot of initiatives. Also, of course, we are working with a corporation in the veterans transition committee. They are there to make ways for our veterans to transition into civilian life. This is a way to help veterans and to give them meaning after their military career, such as some members who have turned to politics.
:
The increasing amount, or the delta—the additional funding provided by virtue of supplementary estimates (C), should they be approved—is indeed close to $40 million. That $40 million is required by the department and in turn by veterans for two reasons.
The principal reason is the conversion of the program from a contribution program to a grant program, as explained by the minister. What this means is that instead of veterans being provided with reimbursement for their expenses, they are provided with an upfront payment in anticipation of those expenses. In that way, they're never out of pocket.
Because of the change in the sequencing of those payments—we're paying the same amount, but sooner—the requirement for funding hits the balance sheet, one could say, sooner, and we therefore see an increase here in the amount of money.
That is in part the explanation for the $40-million increase. The other part of it has to do with an increase in both the number of people availing themselves of the program and the types of services they're availing themselves of.
As you would know, there is groundskeeping and housekeeping, but there are also elements of the program that relate to such things as personal care. When a veteran is still at home but may be in need of someone coming in a couple of times a week to help with personal care, we provide that as well through the program. This is a more expensive component of the program, and therefore it drives the costs up disproportionately as more people shift into that area of the program.
:
You're right, sir, that approximately $5 million relates to both earnings loss and the Canadian Forces income supplement.
Basically, that increased cost is driven by the fact that while veterans are in rehab, be it vocational rehab, medical rehab, or psychosocial rehab, we cover the cost of the earnings they forgo by virtue of being in rehab.
As veterans' needs change and in these days become more complex, their time in rehab has become a little longer than it has been in the past. Whereas in the past a veteran had typically stayed in rehab, if they needed it, for about 24 months, we're seeing that period now extend to about 38 months. Because of the 38-month versus 24-month period, earnings loss payments have increased as a result.
I would say part of the beauty of the program is that a veteran doesn't have to rush through rehab and risk an unsuccessful transition into civilian life. They can take the time they need, knowing their earnings will be attended to during that period. It allows for a very unrushed, comprehensive, and successful transition.
:
There are a couple of technological advancements that are actually changing the way employees do their work in a very fundamental fashion. You've probably heard about case managers who we are now equipping, on a pilot basis, with mobile technology. That would allow a case manager to meet veterans at any point, be it in their home or in a Tim Hortons, and to work with them as to what benefits they are getting, what benefits they might need. They would be able to open the veterans' files electronically and track where an application might be. That is one example of how a case manager's work is changing.
Other elements of the technological epiphany in Veterans Affairs have to do with how we are securing records from both DND, from which we secure service records, and Library and Archives, the organization that holds the records after a veteran has left the government. In both cases we used to get paper copies of these documents and move them around within the department on a need-to-know basis, in a physical way. At this stage of the game we secure, not completely, but increasingly those records in an electronic fashion, which would allow more than one employee to work on the same record in close succession.
The important thing about securing electronic records and working more digitally, if we can say that, is that at the same time the organization has to be very careful to ensure that only those who should have access, do have access. That brings us to yet another group of employees who, by virtue of the transformation, are doing a different type of work. Those would be the employees in our information technology and information management sector, who are continually monitoring our systems to ensure that access privileges are as they should be, that an employee who needs access to records gets access by virtue of passwords, etc., and that employees who do not need access to records are not allowed entry into systems.
There is a very pervasive change in the department at many, many levels as we move into this electronic world.
:
I will start and then I'll have Charlotte fill in the blanks for you.
Certainly the changes in our programs are twofold. They're related to the style of delivery, be they grants or contributions. Grants always cause an upfront payment versus an after-the-fact payment, so it changes the timing of the expenditure and causes them to, as I said, hit the balance sheet sooner. As well, there is always an ebb and flow of the number of people who are partaking in a program, and so that causes the programs to go up and go down.
One would expect that, and what we have seen is that the new Veterans Charter programs are typically increasing in costs as people come to those programs in greater numbers. The more traditional programs, such as VIP, one would expect to see fall, the fact of the matter is that many of what we call modern-day veterans are getting to the age that they are now also availing themselves of VIP.
And I should note that I don't mean to imply that VIP is only for the elderly. It's for any veteran who has the need for that kind of household support by virtue of—it could be very definitely by virtue of—a service-related injury at a young age.
Charlotte, do you want to add to that?
:
Overall, we are watching that, and it does vary by program. I think one that's very indicative is the rehab program, where now we have 5,700 veterans who are participating. For that, with the earnings loss that goes along with it, we've seen an increase of about 20%.
Now, there are many factors that bring people into these programs. Some will come to our department through conversations when they release from the military, through transition interviews. They'll be made aware of Veterans Affairs Canada, and they may come into our department quite quickly after they release. Others may release, move on, and then at a future point require the services of Veterans Affairs Canada. Through outreach, they'll become aware of it as well.
The inflow and the increases don't all happen just at the end of an engagement, for instance, such as an engagement in Afghanistan or another similar event. It's not necessarily going to work in a linear fashion, if I could say it that way. What we manage, what we look at, is how many people are accessing our programs. We know that it's increasing by about 20%. I mentioned earlier that the disability pension program continues to see a decline, which is at about the same rate.
I guess to go to your question, it's very important for us to understand this, but at the same time, we need to be looking to the future and trying to determine what the needs will be there. That will bring in potentially a different type of client at different times.
As the minister mentioned, there are a number of initiatives in this area, helmets to hardhats probably being the most well known. That's the process whereby unions in both the construction and the skilled trades sectors make jobs known to and available to veterans, there being a very obvious skill match there.
There are a number of others. One the minister didn't get an opportunity to mention is the work the department is doing with the Public Service Commission to try to make it simpler for veterans to move from a military career into a career in the public service.
As you may know, there are veterans who medically release from the military. For a certain period of time they are considered priorities in terms of hiring. We're working with the public service to see if we can extend that period of time.
Moreover there are veterans who have never ever in their career, since the point at which they enlisted, attended an interview, written an exam, prepared a CV, or searched for jobs. So with partners we have a number of other initiatives to help them in those kind of job-seeking activities to ensure the transition is successful.
:
Shall I report the supplementary estimates to the House?
Some hon. members: Agreed.
The Vice-Chair (Mr. Peter Stoffer): Thank you very much.
We're voting on the main estimates. Pursuant to Standing Order 81(4), the main estimates for the fiscal year ending March 31, 2014, votes 1, 5, and 10 under Veterans Affairs were deemed referred to the standing committee on February 25, 2013.
A quorum of seven is required, which we have.
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Vote 1—Operating expenditures..........$871,509,739
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Vote 5—The grants listed in the Estimates and contributions..........$2,726,718,500
Veterans Review and Appeal Board
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Vote 10—Program expenditures..........$9,995,067
(Votes 1, 5, and 10 agreed to)
The Vice-Chair (Mr. Peter Stoffer): Shall I report the main estimates to the House?
Some hon. members: Agreed.
The Vice-Chair (Mr. Peter Stoffer): Thank you very much.
Ladies and gentlemen, that's it. Well done.
The meeting is adjourned.