bout de papier, Vol. 4, No. 2 (1986) — Spring/Summer 1986 // Printemps/Été 1986, pp. 30–31
We all know External Affairs is a big operation involving a lot of manpower and of money — over 4000 person years and over $800 million this fiscal year. Where does all the money go? Who gets the biggest slice of the pie in one of the largest federal government departments? Anyone interested in having a closer look at how the department spends its money would not be amiss in perusing the departmental estimates for fiscal year 1986-87. This is the first time a really thorough, and readable, breakdown of departmental spending has been done and the Estimates reveal all sorts of interesting bits of information – some useful and some not.
A quick glance through the Estimates confirms what all of us already know — we are part of a huge operation that will manage to dispense with over $800 million of public funds this year — $826.6 million to be exact. Estimates are up $49 million over spending forecasts for last fiscal year.
Of the total budget, $537 million will support the “Canadian Interests Abroad” program, the principal focus of departmental activities. Another $98 million is planned for capital expenditures and another $157 million for grants and contributions.
Finally, exactly $8,031, the equivalent in Canadian dollars of 14,451 Swiss francs, is earmarked for “advances to the Working Capital Fund of the Paris Union of the World Intellectual Property Organization” whatever that is!
The Estimates define departmental promotions in the coming year as “sovereignty” — in a nutshell the pursuit of foreign policy, enhanced trade, advancing Canadian interests, “trade, investment and employment” and “social justice”,, in that order.
At the top of “program highlights” for the year, reflecting the general mood around a cost-cutting Ottawa these days, is the “Departmental Reduction Plan” ’, involving cuts of 168 PY’s and “substantial financial resources”. ’. Earlier cuts of 38 PY’s and $8.1 million were followed by another round of cuts totally $12.6 million, primarily from the streamlining of the Program for Export Market Development and the Promotion Projects Program.
Other highlights over the next FY include phase one of the National Trade (continued on page 31)
Strategy, that will attempt to boost trade with the USA and Pacific region with the help of a $15 million budget, and the Investment Counsellor Program ($7.1 million) that will see investment counsellors posted abroad to encourage foreign investment and technology transfer to Canada.
Capital expenditures in 1986-87 include $31 million for the Washington chancery, another $11.3 million for a new chancery/SQ in Peking and an $11 million for the long-awaited chancery in Lagos. (If things are so bad that the department had to create a new hardship level 5 for posts like Lagos, at least make it up with a new chancery!).
The Estimates also tell us that, in terms of the overall utilization departmental resources, 33 per cent will go to trade, another 27 per cent to political relations and 16 per cent to economic relations. Immigration gets 10 per cent of the pie, public affairs/culture another eight per cent and three per cent to consular affairs.
Some snapshots of where the money goes:
— $7.2 million to run the offices and staffs of the SSEA and DM’s;
— $5.7 million for protocol to look after foreign diplomats in Ottawa this FY;
– 50% of departmental PY’s to the conduct of our bilateral relations. Of these 2,191 PY’s, nearly half are found in Europe and the USA;
– the fee for issuing an official passport is $57, nearly three times that of an ordinary one;
– personnel operations will cost $42.8 million and require 231 PY’s this FY; — overall personnel costs, including salaries and wages, contributions to employee benefit plans, and costs of other personnel, are high — $305 million – or about 37 per cent of total program expenditures will be devoted to keeping bread on the table for 4,443 PY’s.
Passport demand is up by approximately 37 per cent over the past three years, but it is expected to moderate over the next two years.
There will be a massive increase in the Ex classification this FY, from 160 to 494 PY’s, stemming from the conversion of senior FSO’s and CO’s to the EX/FS category. Current salary range for the EX category? $50,350-$96,300 with an average salary provision of $70,801. Any takers?
Lowly FS’s remaining after the current round of conversion is completed are looking at salary ranges of $15,685-$66,252 with an average salary provision of $44,129. Small comfort for those who arrived in the era of “6 and 5” and then were hit with 3.75 per cent salary increases this year and last.
Apart from the mentioned capital projects, other noteworthy renovations will be in Algiers, where a new diplomatic complex will cost $4.3 million, a $2 million chancery for Kinshasa, a new $1 million complex in Ryadh, and $584,000 worth of renovations to the London High Commission.
Major departmental contributions to organizations include $30.15 million to the U.N., $10.7 to the Food and Agriculture Organization, $10.4 million to the World Health Organization, $8.5 million to UNESCO and $4.3 million to the International Atomic Energy Agency. Another $30 million will be devoted to the promotion of export sales.
In the grant category, External plans to provide $3.5 million to assist academic relations, $2.8 million to cultural relations, and $2.5 million in grants “in lieu of taxes on diplomatic, consular and international organizations property in Canada”
We understand that copies of the estimates are to be sent to divisions at HQ and to all posts in case anyone wishes to follow my lead and delve further into the arcane world of the department’s finances. Good reading!
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Originally published in bout de papier, Vol. 4, No. 2 (1986) — Spring/Summer 1986 // Printemps/Été 1986, pp. 30–31. Read the rest of this issue →
