Supplementary Estimates C 2020–21 And Main Estimates 2021–22

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Supplementary Estimates C 2020-2021: Initiatives

Supplementary Estimates (C) 2020-21 Overview

• The total authorities in 2020-21 for the Department of Justice are $785.4 million. Justice Canada obtained additional resources of $78.5 million through Supplementary Estimates (C), for a total of $863.9 million in 2020-21.
• The $78.5 million increase is comprised of:
  • An increase of up to $46.0 million for funding for revenue protection against the reduction in demand in legal services (COVID-19): to compensate the Department for a shortfall in revenue due to an unanticipated reduction in demand for legal services linked to COVID-19 and court closures (announced in the 2020 Fall Economic Statement) (one-time funding for 2020-21);
  • An increase of $20.3 million in additional contribution funding for Immigration and Refugee Legal Aid: to help ensure that all six provinces that provide immigration and refugee legal aid have the capacity to maintain historic service delivery levels throughout 2020-21 (announced in the 2020 Economic and Fiscal Snapshot) (one-time funding for 2020-21);
  • An increase of $7.3 million to respond to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Final Report: Reclaiming Power and Place (horizontal item): to extend the Family Information Liaison Units and Community-Based Services to provide direct support and assistance to families of victims (announced in 2019 Fall Economic Statement) ($22 million over 3 years starting in 2020-21);
  • An increase of $1.9 million for the implementation of the United Nations Declaration of the Rights of Indigenous Peoples (UNDRIP): for the engagement process with Indigenous partners and organizations to co-develop legislation to support implementation of the UNDRIP (announced in the 2020 Fall Economic Statement) ($2.8 million over 2 years);
  • An increase of $1.6 million to support the provision of legal services for the Cullen Commission of Inquiry into Money Laundering in British Columbia: to address the delivery of litigation services in support of the Cullen Commission (announced in the 2020 Economic and Fiscal Snapshot) ($2.2 million over 2 years);
  • An increase of $0.95 million to implement new family support enforcement provisions and increase access to family justice services in the official language of one’s choice: for technical systems enhancements to implement the amendments to federal support enforcement legislation (announced in Budget 2017) and for provisions under former Bill C-78 to assist Canadians in obtaining a divorce and related services in the official language of their choice (announced in Budget 2019) ($24.07 million over 5 years);
  • An increase of $0.5 million in statutory authorities for contributions to Employee Benefit Plans (EBP) resulting from these Supplementary Estimates.

Department of Justice and Portfolio Organizations’ 2020-21 Supplementary Estimates (C)

• The Minister of Justice Portfolio is comprised of eight organizations as follow:
• Department of Justice;
• Office of the Commissioner for Federal Judicial Affairs;
• Office of the Director of Public Prosecutions;
• Courts Administration Service;
• Administrative Tribunals Support Service of Canada;
• Offices of the Information and Privacy Commissioners of Canada;
• Registrar of the Supreme Court of Canada; and,
• Canadian Human Rights Commission.
• 2020-21 Supplementary Estimates (C) requested for the Justice Portfolio a total of $87.7 million. The Department of Justice accounts for 89 percent of this budget. The other organizations who received Supplementary Estimates are: Office of the Commissioner for Federal Judicial Affairs, Courts Administration Service and Registrar of the Supreme Court.
• 2020-21 Authorities including these Supplementary Estimates for the Justice Portfolio is $2.04 billion. The Department of Justice is the largest organization within the Portfolio, with 42 percent of the overall budget.
• Question: How much of these Supplementary Estimates relate to measures in response to COVID-19?

Answer: Approximately $52 million of these Supplementary Estimates were a direct impact of the COVID-19 pandemic. Funding for the Department of Justice relates to maintaining the Federal Government’s Legal Services Capacity through revenue protection to compensate the Department for the reduction in demand for legal services. Funding for Courts Administration Service and the Registrar of the Supreme Court of Canada relates to supporting federal court operations to enhance their technological capacity and adapt to physical distancing requirements.

2020-21 Proposed Authorities for the Justice Portfolio (in millions)

Detail by Organization

Department of Justice

Courts Administration Service

Office of the Commissioner for Federal Judicial Affairs

Registrar of the Supreme Court of Canada

Funding for Immigration and Refugee Legal Aid – one-time increase of $20.3 million in 2020-21 (2020 Economic and Fiscal Snapshot)

• Budget 2019 announced an additional $49.6 million over three years to support the delivery of immigration and refugee legal aid services.
• The Economic and Fiscal Snapshot 2020 announced a further investment of $26.8 million for 2020–21. From this, Justice is accessing $20.3 million through the Supplementary Estimates process, increasing 2020–21 funding to $48.5 million.
• This funding supports access to justice for economically-disadvantaged asylum seekers by ensuring that provinces delivering immigration and refugee legal aid services have the capacity to maintain service delivery levels throughout 2020–21.
• Question: Why are you investing in legal aid for asylum seekers when the borders are closed?
  • Answer: The adjudication of asylum claims is a lengthy process. Legal aid is needed to assist in the processing of the many asylum claims from individuals who arrived in Canada prior to the border closure, as well as from those who may have since made asylum claims from within Canada.
• Question: How are you assessing shifts in legal aid demand?
  • Answer: Justice Canada continues to work closely with Immigration, Refugees and Citizenship Canada to monitor the volume of refugee claimants, and with the provinces to assess the impact that volumes are having on demand for legal aid services. Accordingly, Justice only accessed $20.3 million from the $26.8 million that was made available through the Economic and Fiscal Snapshot 2020.

Funding

Background:

Justice will receive one-time funding of $20.3 million in 2020-21 (Vote 5), similar to one-time funding received in 2019-20, to help ensure that all six provinces that provide immigration and refugee legal aid have the capacity to maintain historic service delivery levels throughout 2020-21.

• This funding was announced in the 2020 Economic and Fiscal Snapshot.
• This funding will be delivered through an existing transfer payment program, the Immigration and Refugee Legal Aid component of the Legal Aid Program.
• Justice received one-time funding of $26.8 million through Supplementary Estimates (B) 2019-20 to address immigration and refugee legal aid pressures in 2019-20 (off-cycle request).
• Since 2015-16 when federal funding was at $12 million, immigration and refugee legal aid funding has been increased each year in an effort to address increased demand. For instance, Budget 2017 renewed the status quo funding level (since 2002) of $11.5 million annually, on an ongoing basis, and provided an additional $2.7 million annually for fiscal years 2017-18 and 2018-19 to address pressures. Budget 2018 then provided an additional $12.8 million for one year, increasing 2018-19 funding to almost $27 million nationally. Budget 2019 then provided three more years of additional funding, increasing 2019-20 to $27.6 million, and 2020-21 and 2021-22 to $28.2 million each year.
• In addition to the increased funding provided through Budget 2019, on August 12, 2019, the Prime Minister announced a further one-year investment of $26.8 million, increasing 2019-20 funding to $54.5 million. This additional funding was required to address a major budget shortfall faced by Legal Aid Ontario due to the Ontario Government’s decision to withdraw financial support for immigration and refugee legal aid. A small portion of this additional investment was also provided to British Columbia and Manitoba to address funding gaps. Furthermore, by providing an annual contribution of $54.5 million, Justice expected to assume responsibility for approximately 100 percent of the estimated 2019-20 national immigration and refugee legal aid expenditures. Based on final reporting, Justice covered 94 percent of the $58.2 million in national expenditures for 2019-20.

COVID-19:

• Funding of $26.8M was approved in the TB submission. Given the impact that COVID-19 has had on legal aid volumes and expenditures, Justice did not require the full $26.8M available in additional immigration and refugee legal aid funding. The ongoing extension of the border closure and the gradual resumption of services at the IRB impacts legal aid plans’ ability to provide precise budget forecasts. At the time of the Supplementary Estimates (C) process, Justice accessed the funding it anticipates that it will require ($20.3 million) based on the most recent forecast information that would have been shared by participating provinces. As always, provinces will only be reimbursed for actual costs incurred, and Justice will return any unused funds to the Fiscal Framework.
• Justice is currently examining the long-term sustainability of the federal Legal Aid Program. Initial consultations with provinces and legal aid plans to explore future program delivery options were held last fall. Further consultations and policy discussions were delayed due to COVID-19.
• COVID-19 has also had a negative impact on legal aid plan revenue. Historically, legal aid plans have relied on funding from law foundations as a major source of revenue. Law foundation funding is heavily dependent upon interest income. The significant drop in interest rates due to COVID-19 has resulted in a major loss of revenue for law foundations, which in turn, is having a negative impact on legal aid plans’ level of revenue this fiscal year, and potentially next year as well. Although this is likely to have a minimal impact on immigration and refugee legal aid funding, historically (before federal funding was 100 percent) this source of revenue was available to help cover shortfalls in federal and provincial legal aid funding.
• Canada has experienced a general increase in the number of asylum claimants over the past several years, and continued to do so up until measures were put in place to respond to the COVID-19 pandemic. Last year, over 64,000 individuals claimed asylum, and over 55,000 did so the previous year. Although volumes have dropped significantly since the border was closed due to COVID-19, a significant backlog (estimated at approximately 100,000) of claims still awaits processing at the Immigration and Refugee Board and the Federal Court. Further, once border restrictions are lifted, intake volumes are expected to rise and eventually return to the historical highs experienced prior to the pandemic.
• Ontario, British Columbia, and Manitoba advised Justice that they were experiencing funding pressures this fiscal year and required additional federal support. Although the number of new legal aid certificates issued has dropped since measures were put in place in response to the COVID-19 pandemic, many legal aid plans still have high caseload volumes from certificates issued in previous fiscal years. Further, because services at the IRB and the Federal Court were suspended for a number of months, legal aid lawyers have had to invoice legal aid plans for work already completed, rather than waiting until a case has been closed, which had been the normal procedure. As a result, legal aid plans continued to incur costs for services throughout the fiscal year, even when most hearings were suspended.
• Ongoing closures and shutdowns due to COVID-19 continue to impact legal aid service delivery and forecasted expenditures. Justice continues to work closely with provinces and legal aid plans to monitor volumes, caseload and expenditures to ensure that any excess funding is identified so it can be reallocated to another eligible province in accordance with the terms of the contribution agreement or returned to the Fiscal Framework.

Funding to respond to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Final Report Reclaiming Power and Place (horizontal item) – increase of $7.3 million in 2020-21 ($21.9 million over 3 years)

• In the 2019 Fall Economic Statement, the Government committed to extending Family Information Liaison Units (FILUs) funding for another three years (2020–21 to 2022–23) to ensure the important services provided by FILUs and community-based organizations continue to be available.
• Together with Indigenous community organizations and other partners, FILUs are providing concrete support and assistance for family members of missing and murdered Indigenous women and girls across Canada.
• FILUs are located in every province and territory, and are working directly with families to help them access the information and services they are seeking from government agencies about the loss of their loved one.
• The FILU initiative supports my mandate letter to continue work on a renewed relationship with Indigenous Peoples based on recognition of rights, respect, co-operation and partnership, including supporting the recommendations of the National Action Plan on Missing and Murdered Indigenous Women and Girls and continuing progress on the Truth and Reconciliation Commission’s Calls to Action.
• Question: What future action, if any, will you take to implement the findings of the National Inquiry into Missing and Murdered Indigenous Women and Girls and their Final Report, Reclaiming Power and Place?
  • Answer: My department continues to work closely with federal, provincial, territorial and Indigenous partners to support Indigenous victims and survivors of crime and their families. At the same time, work is underway to co-develop a National Action Plan to address violence against Indigenous women, girls, and 2SLGBTQQIA people and to give life to the Report’s Calls For Justice.
    Justice Canada is committed to working collaboratively to support the implementation of the Justice related elements of that Action Plan once it is complete.
• Question: Will FILU funding be extended beyond March 31, 2023?
  • Answer: We know the need for support and answers hasn’t ended. Until the disproportionate victimization of missing and murdered Indigenous women and girls is no longer an issue, the need for the services of the FILUs continues.
    Our partners have indicated that the FILUs continue to fill a gap in trauma-informed and culturally-responsive services for family members of missing and murdered Indigenous women and girls, and that this model is one that would be helpful for other communities of Indigenous victims and survivors of crime.
    We are also looking forward to collaboration in support of actions to implement the National Action Plan currently being co-developed which will provide us with guidance on moving forward.

Funding

Background:

On December 8, 2015, the Government of Canada under Prime Minister Justin Trudeau announced the launch of the National Inquiry into Missing and Murdered Indigenous Women and Girls (National Inquiry) to seek recommendations to address and prevent violence against Indigenous women and girls.

Funding for Family Information Liaison Units (total of $11.7 million over three years) was announced in August 2016 for provincial and territorial governments through the Justice Canada’s existing Federal Victims Strategy (Victims Fund) with funding ending March 31, 2019.

As part of the Government’s response to the national inquiry’s interim report in 2018, family information liaison unit operations were renewed for an additional year with funding available extended to March 31,2020.

Continued funding for FILUs ($14,010,000 for an additional 3 years) was presented in the 2019 Fall Economic Statement and announced on December 4th, 2019 by Minister Lametti at the AFN Special Chiefs Assembly. Funding for FILUs is now secured until March 31, 2023.

FILUs are a specialized service for family members of missing or murdered Indigenous women and girls across Canada. They were established in response to concerns raised by family members about the ongoing structural and systemic difficulties they experience in accessing information from government agencies about their missing or murdered loved one.

FILUs are located in every province and territory across Canada and build on existing victim services frameworks. FILUs also draw on the knowledge, experiences, and expertise of family members and Indigenous community organizations, who have informed the design and delivery of FILU services. FILUs work together across the country, with other federal departments, led by Justice Canada, to ensure that family members have access to information from all other jurisdictions and abroad and that FILUs share best practices and knowledge. FILUs by all accounts help families on their healing journey. They have organized the return of loved ones remains to the community sometimes from across the country and have helped organize releasing ceremonies with the family. They have also helped family members to access ceremonies and other services they are seeking. Since FILUs have been in operation, they have helped to achieve significant developments and outcomes, including:

• helping family members across Canada access information about their loved one’s murder or disappearance, which up until now, they felt was unavailable to them due to geographic barriers, the historical nature of their loved one’s murder or disappearance, or other barriers to accessing government records;
• providing concrete opportunities for family members to move forward on their healing journey;
• re-connecting siblings and family members who were separated as children;
• providing an opportunity for organizational change as government agencies at all levels and across jurisdictions are learning more about how their actions and inactions have had a significant impact on families through information sharing sessions organized by FILUs; and,
• providing opportunities to build trust by redefining the relationships between family members and police, medical examiners or other government agencies, grounded in recognition, respect, and understanding.

Provincial, territorial and federal partners have noted that FILUs provide them with an opportunity to collaborate with all other governments and community partners to assist families of missing or murdered Indigenous women and girls across Canada. In response, the Government committed to extending FILU funding until March 2023 to ensure these important services continue to be available.

• This funding follows the sunsetting of the following initiatives in 2019-20:
  • Response to the Interim Report from the Missing and Murdered Indigenous Women and Girls Inquiry;
  • Funding to support culturally-responsive victim services as well as Family Information Liaison Units for families of missing and murdered Indigenous women and girls, and families participating in the Inquiry into Missing and Murdered Indigenous Women and Girls; and,
  • Funding for the Action Plan to address Family Violence and Violent Crimes Against Aboriginal Women and Girls.

Gender-Based Analysis Plus:

• As the National Inquiry’s Final Report outlines, Indigenous women, girls, LGBTQ2 (Lesbian, Gay, Bisexual, Transgender, Queer, Two-Spirit) people experience discrimination and vulnerabilities at a significantly higher rate than non-Indigenous women in Canada due to a history of colonialism, which also leads to them experiencing high rates of violence and homicide.
• The Final Report also highlights financial stability as an important theme to preventing violence; economic insecurity can lead to Indigenous women being at a greater vulnerability of violence. Individuals who are low-income are not only more vulnerable to abuse, due to being economically dependent on others, but experiencing violence or abuse often has a negative impact on their financial and employment situation.
• The initiative aligns with various GBA+ initiatives undertaken nationally and internationally. This initiative supports the Prime Ministers’ commitment to the co-development of a National Action Plan by June 2020. It also supports efforts to advance reconciliation with Indigenous peoples, in part by addressing the Truth and Reconciliation Commission’s Call to Action 41: “We call upon the federal government, in consultation with Aboriginal organizations, to appoint a public inquiry into the causes of, and remedies for, the disproportionate victimization of […] Aboriginal women and girls. The inquiry’s mandate would include: [i] investigation into missing and murdered Aboriginal women and girls.”

Funding to implement the United Nations Declaration on the Rights of Indigenous Peoples (horizontal item) – increase of $1.97 million in 2020-21 and $0.65 million in 2021-22 ($2.61 million over 2 years)

• Implementing the UN Declaration was identified as a priority in both the 2019 Speech from the Throne and in my mandate letter. It was reiterated again in the 2020 Speech from the Throne and, following introduction of Bill C-15, the addendum to my mandate letter was updated to work with the support of the Minister of Crown-Indigenous Relations to move the bill to Royal Assent.
• On December 3, 2020, our government introduced Bill C-15 – United Nations Declaration on the Rights of Indigenous Peoples Act, and we continue to collaborate with Indigenous peoples on implementing the Declaration. If passed by Parliament, Bill C-15 would create a framework to advance the federal implementation of the Declaration in collaboration with Indigenous peoples through the alignment of federal laws over time; through the development and implementation of an action plan; and through annual reporting on progress.
• Implementing the Declaration is a significant step forward on the shared path of reconciliation, and responds to the Truth and Reconciliation Commission’s Call to Action 43, and the National Inquiry into Missing and Murdered Indigenous Women and Girls Calls for Justice.
• Question: Why is implementing the Declaration in Canada important? Why now?
  • Answer: As a country, we must continue to make progress on our reconciliation journey, a journey rooted in the affirmation of rights, respect, cooperation and partnership. The Declarations provides us, to quote the Truth and Reconciliation Commission, “the necessary principles, norms and standards for reconciliation to flourish in twenty-first century Canada.”
    Everyone benefits when we all have access to basic human needs, safety and equal treatment. We all benefit when we respect and promote the rights of Indigenous elders, youth, persons with disabilities, women, men, LGBTQ, gender-diverse and two-spirit people, and ensure full protection against violence, systemic racism and discrimination; when Indigenous peoples have equal access to opportunities and services; and when Indigenous peoples and businesses are full partners in growing diverse, prosperous and sustainable economies.
    Working together to achieve the Declaration’s objectives will help us build a brighter future and a better Canada for current and future generations.
• Question: Would Bill C-15 or implementing the Declaration help address racism? Would it help with COVID recovery?
• Answer: Yes, I believe implementing Bill C-15 can play a significant role in combating racism and discrimination – precisely because it focuses us on taking action and doing the hard work together needed to address these issues on the ground. The COVID-19 pandemic has exacerbated the ongoing health, food security, housing, economic, governance, policing and other vulnerabilities that continue to impact Indigenous communities. Post-COVID economic recovery needs to include Indigenous peoples as full partners in economic recovery and growth.
  Bill C-15 could help structure and guide dialogue around combatting the inequality and discrimination against Indigenous peoples that lies at the root of many of these vulnerabilities, as well as around supporting self-determination and the re-building of Indigenous nations and communities and their sustainable development over the longer term.
  Once passed, the legislation would require the Government of Canada to work in consultation and cooperation with Indigenous peoples, to identify what additional measures may be needed to address injustices, combat prejudice and eliminate all forms of violence and discrimination against Indigenous peoples, including elders, youth, children, persons with disabilities, women, men and gender-diverse, and two-spirit persons.

Funding

Background:

On May 10, 2016, the Minister of Indigenous and Northern Affairs announced that Canada is now a full supporter of the UN Declaration, without qualification, and that Canada will adopt and implement it in accordance with the Canadian constitution. Both the Truth and Reconciliation Commission of Canada (TRC) and the National Inquiry into Missing and Murdered Indigenous Women and Girls (MMIWG) have called on all levels of government to adopt the UN Declaration as a framework for reconciliation (Calls to Action 43, 44, 46; Call for Justice 1.2v) including through a national action plan, strategies, and other concrete measures.

The 2019 Speech from the Throne included a commitment to introduce legislation for the implementation of the UN Declaration in the first year of the government’s mandate. The Minister of Justice was mandated, with the support of the Minister of Crown-Indigenous Relations, with fulfilling this commitment. The commitment to introduce legislation in 2020 was renewed in the September 2020 Speech from the Throne.

Justice has received funding of $1.97 million in 2020-21 and will receive $0.65 million in 2021-22 (Vote 1), to support the Department’s work to develop legislation on the UN Declaration on the Rights of Indigenous Peoples.

Announced in the 2020 Fall Economic Statement, this funding is part of a horizontal initiative involving the Minister of Crown-Indigenous Relations. Crown-Indigenous Relations. Crown-Indigenous Relations and Northern Affairs Canada will receive $5.9 million over two years starting in 2020-21 in support of fulfilling the mandate commitment to introduce and pass legislation to implement the Declaration, and to conduct engagement in support of the development and implementation of the legislation.

On December 3, 2020, the Minister of Justice and Attorney General of Canada introduced Bill C-15 – United Nations Declaration on the Rights of Indigenous Peoples Act and continues to collaborate with Indigenous peoples on implementing the Declaration. If passed by Parliament, Bill C-15 would create a framework to advance the federal implementation of the Declaration in collaboration with Indigenous peoples through the alignment of federal laws over time; the development and implementation of an action plan; and through annual reporting on progress.

The Government of Canada developed the proposed legislation through engagement with representatives of National Indigenous Organizations, modern treaty partners and self-governing nations, rights-holders, Indigenous youth, Indigenous women, gender-diverse and two-spirit people, regional and other Indigenous organizations. Discussions were also held with provincial and territorial governments and industry stakeholders.

The key objective is to create a legislated framework that would help advance self-determination, self-government, inclusion, economic participation, and equality for Indigenous peoples through the collaborative development of an action plan and the alignment of federal laws with the UN Declaration over time. This initiative is the first step. Following royal assent, the bill would require the development of an action plan, and measures to align federal laws with the Declaration in consultation and cooperation with Indigenous peoples.

Funding to support the provision of legal services for the Cullen Commission of Inquiry into Money Laundering in British Columbia – increase of $1.94 million in 2020-21 and $0.05 million in 2021-22 ($1.99 million over 2 years)

• The Economic and Fiscal Snapshot 2020 committed $2.2 million of funding over two years, starting in 2020-21, for the Department of Justice to support its effective and timely participation in the public inquiry into money laundering in British Columbia (B.C.).
• Justice has been providing significant legal services to Finance, Public Safety and various other federal departments and agencies to assist in the production of documents and witnesses to Commission counsel. This work builds on your mandate commitment to work with the Ministers of Finance, National Revenue, and Public Safety and Emergency Preparedness to continue to develop policies and legislation to reduce organized crime and gang activity in Canada, including money laundering.
• This funding demonstrates the Government’s commitment to working with B.C. to address money laundering. In addition to its participation in the inquiry, the Government continues to develop policies and legislation to strengthen the federal Anti-Money Laundering and Anti-Terrorist Financing Regime.
• Question: Has the Government taken any action to specifically address money laundering in B.C. and in other provinces and territories? Question: should we not also add and elsewhere in the country?
  • Answer: Most recently, the Government announced the Counter Illicit Finance Alliance of B.C. This initiative is a public-private partnership that aims to increase information-sharing among 38 stakeholders from across different sectors to prevent, detect and disrupt illicit financial activity and to protect B.C.’s economic integrity. Further, this past December, the RCMP announced the Integrated Money Laundering Investigative Teams, which will bring together expertise from a variety of federal agencies to address and advance high-profile money laundering investigations. These teams will be established in B.C., Alberta, Ontario and Quebec.
• Question: What is the extent of the Government’s participation in the inquiry? *Context: The B.C. government publicly released the Commissioner’s interim report on December 10, 2020. The report contained some criticism of the Government’s initial level of engagement in the inquiry process.*
  • Answer: The Government is committed to cooperating fully with the Commission. The Government became actively involved in the inquiry when it applied for, and was granted, participant status by the Commissioner in September 2019. Since that time, several federal departments and agencies have been producing documents and witnesses to support the Commission’s work. The Government appreciates the recent acknowledgement by the Commissioner in the Interim Report that Canada has accelerated its document production. The Government will continue to provide relevant and timely information to the Commission.

Funding

Background:

Justice will receive funding of $1.94 million in 2020-21 and $0.05 million in 2021-22 (Vote 1), to address the delivery of litigation services in support of the Cullen Commission of Inquiry into Money Laundering in British Columbia.

• This funding was announced in the 2020 Economic and Fiscal Snapshot.
• On May 15, 2019, British Columbia (B.C.) Premier John Horgan announced the establishment of the Commission as part of ongoing efforts by the B.C. government to better understand and address money laundering challenges in the province.
• The Commission has a two-year mandate to inquire into three main topics: 1) the extent of money laundering in B.C. in various sectors, notably: real estate, gaming, financial services and professional services (including lawyers and accountants); (2) the acts, omissions and efficacy of the regulatory authorities responsible for these sectors in relation to money laundering in B.C.; and (3) the barriers to effective law enforcement respecting money laundering in B.C.
• The Commission’s mandate will end with the submission of a final report to the B.C. government. This report is due on May 15, 2021. Given that hearings have been scheduled for the end of May, the final report deadline will need to be extended. The B.C. government has not yet provided any information on a new date.
• Shortly after the Commission was established, the then federal Minister of Border Security and Organized Crime Reduction, Bill Blair, publicly committed that the Government would cooperate fully with the Commission. The Government subsequently applied for, and was granted, participant status by the Commissioner in September 2019.
• Since September 2019, a number of federal departments and agencies have become involved in producing documents and witnesses to the Commission, including: Finance, Public Safety, the Financial Transactions and Reports Analysis Centre of Canada, the Royal Canadian Mounted Police, the Canada Border Services Agency, Canada Revenue Agency, the Office of the Superintendent of Financial Institutions, Public Prosecution Service of Canada and the Seized Property Management Directorate of Public Services and Procurement Canada.
• This work requires significant legal services, including litigation services provided by the National Litigation Sector. These services are critical for the Government’s timely and effective participation in the inquiry. Costs for litigation services were estimated at $2.2 million over two years, starting in 2020-21. These costs were determined by the National Litigation Sector, in consultation with Finance Legal Services Unit, based on an analysis of case management and timekeeping systems.
• Funding for litigation services delivered to federal departments and agencies by the National Litigation Sector is normally provided directly to departments and cost recovered by Justice. However, due to the involvement of multiple departments and agencies and the complexity of the cost recovery model, it was determined that the more efficient approach would be to provide funding to Justice directly. In the event that costs exceed the funding received, Justice may need to cost recover any additional amounts from clients.

Funding to implement new family support enforcement provisions and increase access to family justice services in the official language of one’s choice – increase of $0.98 million in 2020-21 ($23.96 million over 5 years)

• The Government is providing an additional $23.96 million over five years to implement amendments to the Divorce Act, which came into force on March 1, 2021.
• This includes $21.65 million over five years (2020/21 – 2024/25), announced in Budget 2019, to support the provinces and territories with the implementation of the language rights provision that will assist Canadians in obtaining a divorce in the official language of their choice.
• It also includes $2.32 million over five years (2020/21 – 2024/25), announced in Budget 2017, for technical systems enhancements to implement the amendments to federal support enforcement legislation which will improve the enforcement of family support orders.
• In their own way, each initiative will help to improve access to the family justice system; one for official language minority communities and the other for expanding family obligations enforcement-related services.
• Question: How specifically will provinces and territories use the funding for the implementation of the language rights provision in the Divorce Act?
  • Answer: The funds will be used by provinces and territories to improve the capacity of the courts to provide services in both official languages. For example, this could include the provision of interpretation services and the translation of court forms and documents. Funding will also improve the capacity to provide family justice programs and services in both official languages. This could include information materials, workshops and mediation.
• Question: How will the amendments to FOAEAA improve the enforcement of family support orders?
  • Answer: The technical system enhancements will address the key amendments to Family Orders and Agreements Enforcement Assistance Act by: expanding federal trace and locate services under the Act by releasing additional information, including income information to more provincial and territorial entities to help establish, vary and enforce support obligations; expanding garnishment of federal moneys under the Act to satisfy additional family law expenses; and, creating greater operational efficiencies under the Act.

Funding

Note 2: Only funding to support this initiative is presented in the table above and does not include existing funding under the Canadian Family Justice Fund and Access to Justice in Both Official Languages Support Fund.

Background:

Vote 1

Justice will receive funding of $0.48 million in 2020-21 and $2.34 million over 4 years (Vote 1) for technical systems enhancements to implement the amendments to federal support enforcement legislation (Family Orders and Agreements Enforcement Assistance Act (FOAEAA) and the Garnishment, Attachment and Pension Diversion Act (GAPDA)) that will improve the enforcement of family support.

• This funding was announced in Budget 2017.
• The funding was earmarked and remained in the Fiscal Framework pending the Royal Assent of the Bill.
• The technical enhancements required to FOAEAA information technology system are to implement amendments to federal support enforcement legislation included in Bill C-78 that will improve the enforcement of family support. The key amendments to the FOAEAA that require systems changes include:
  1. expanding federal trace and locate services by releasing additional information to help more provincial/territorial entities establish, vary and enforce support obligations;
  2. expanding garnishment of federal moneys to satisfy additional family law expenses; and
  3. creating greater operational efficiencies.
• On June 21, 2019, former Bill C-78 : An Act to amend the Divorce Act, the Family Orders and Agreements Enforcement Assistance Act (FOAEAA) and the Garnishment, Attachment and Pension Diversion Act (GAPDA) and to make consequential amendments to another Act received Royal Assent.
• This new legislation has four key objectives:
  1. promoting children’s best interests;
  2. addressing family violence;
  3. helping to reduce poverty; and
  4. making Canada’s family justice system more accessible and efficient.
• The enforcement of family support falls primarily within Provincial-Territorial (PT) jurisdiction. Federal legislation, such FOAEAA and GAPDA, assist PTs by providing them with certain enforcement-related services. These enforcement-related services have been in place since the 1980s and are administered by the Department of Justice.
• FOAEAA Part I provides for the search of federal information banks to help locate support payors and others in breach of a family obligation; Part II allows for the garnishment of federal moneys (such as income tax refunds) to satisfy support obligations; and Part III permits for the denial or suspension of federal licences, including the Canadian passport, of support payors who are in persistent arrears of their support obligations.
• GAPDA Part I provides for the garnishment of federal employees’ wages and contractor payments, and those paid by parliamentary entities, to satisfy civil debts, including support. Part II provides for the diversion of federal pension benefits to satisfy support obligations.
• The systems changes will improve federal enforcement services. The new information that is released under FOAEAA will help people, through a court application process, obtain income information that is needed to make a support order or to change a support order. These changes will ensure money flows in a timely manner to benefit families and children.

Vote 5

Justice will receive $21.625 million over 5 years, including $0.50 million in 2020/21 (Vote 5) for provisions under former Bill C-78 to assist Canadians in obtaining a divorce in the official language of their choice.

• This funding was announced in Budget 2019.
• This funding will be delivered through the existing transfer payment programs, the Canadian Family Justice Fund and the Access to Justice in Both Official Languages Support Fund. Given their mandates, as well as their long-standing networks and relationships with PTs and official languages minority communities (OLMCs), these programs provide a strong platform for project implementation. Delivering activities through these well-established programs will minimize the need for additional overhead expenses.
• This funding will be used to increase the bilingual capacity of the family justice system through the development of applied language training programs to support the provinces and territories in translating their court forms and documents, and to expand family justice services in both official languages.
• This funding will supplement the existing resources under the Canadian Family Justice Fund:
  1. to provide enhanced support to PTs for the implementation of the language provision as it relates to the delivery of family justice services in both official languages;
  2. and under the Access to Justice in Both Official Languages Support Fund;
  3. to undertake activities including training to judicial professionals to increase capacity within the court room to proceed in either official language, training to other family justice system stakeholders, as well as the translation of documents.
• Because of the asymmetric landscape of current language rights in PTs, and given the operational impact the new legislation has on the administration of justice, not all PTs will be ready to implement the provisions at the same time. Therefore, the official language provision of the new Divorce Act will come into force province by province by order in council (OIC). The OIC will be signed only once a jurisdiction has signalled it is ready to fully implement the provision.

Funding for revenue protection against the reduction in demand in legal services (COVID-19) – up to $46.0 million in 2020-21

• The COVID-19 pandemic has affected the workload of legal professionals within the Department of Justice, particularly in the area of litigation, as courts have been closed or severely limited in their operations, particularly at the beginning of the fiscal year 2020–21.
• The Department relies on revenues earned from legal services provided to other government departments and agencies to fund its operating expenditures; a significant drop in revenues will jeopardize the Department’s ability to meet critical, non-discretionary operational expenditures, such as employee salaries.
• During summer 2020, the Department proactively reacted to the unanticipated reduction in revenues by identifying a potential revenue shortfall of up to $46 million in 2020-21.
• Question: Will the Department access this funding?
  • Answer: The Department continues to monitor workload (timekeeping) and revenues and expects to access a portion of this funding for fiscal year 2020–21. Any unused funds will be returned to the Consolidated Revenue Fund.

Funding

Background:

Justice will receive one-time funding of up to $46.0 million in 2020-21 (Vote 1), to compensate the Department for a shortfall in revenue due to an unanticipated reduction in demand for legal services linked to the closure or reduced capacity of court operations and related services to client departments and agencies, as a direct result of the COVID-19 pandemic.

• This funding was announced in the 2020 Fall Economic Statement.
• Given documented reductions in billable hours by legal professionals over the first six months of the fiscal year, and the uncertainty of the effects of the pandemic over the remaining months of the year, the Department requested a source of funds to ensure its non-discretionary operational requirements were met, and to ensure it would not exceed its Operating Vote authorities. The Department does not have sufficient flexibility within its budget to manage this unprecedented and uncertain situation.
• [excluded]
• In recent years, close to 60% of Justice Canada’s operating expenditures (Vote 1) have been funded through revenues. Based on data available at the time of the Budget ask, the Department estimated the re-spendable revenues to range between $337 million and $352 million in 2020-21. This represents a decrease from anticipated revenues of $365 million by approximately $15 million to $30 million (or 4.5% to 9%).
• With the use of technology and the increased ability of courts to hold virtual hearings, recent revenue forecasts have shown a reduced revenue gap than anticipated.
• Justice conducts periodic revenue forecasts in collaboration with client departments. Further, Justice continues to analyze timekeeping and billable hour data to assess and monitor the COVID-19 related impacts on legal services (i.e. court closures).
• Justice monitors its cash flow position on a weekly basis to inform management of cash requirements.

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