Parliamentary Committee Notes: Support to Lytton, British Columbia
Date: May 9, 2022
Classification: Unclassified
Fully releasable (ATIP)? Yes
Branch / Agency: EMBP / PS
Proposed Response:
- The Government of Canada recognizes the significant loss and hardship the people of British Columbia have suffered due to the 2021 wildfires. Rest assured, we are committed to ensuring the residents of British Columbia, including those in Lytton and remote and Indigenous communities, have the support and resources they need to deal with this challenging situation.
- In July 2021, the Governments of Canada and British Columbia announced that they will match all individual and corporate donations to the Canadian Red Cross for the ‘British Columbia Fires Appeal’ fund.
- I am pleased to announce that through this initiative the Government of Canada will contribute $4.6 million to support a range of emergency services to meet both immediate and emerging needs of people impacted by the fires.
- Our government is also supporting the province through the Disaster Financial Assistance Arrangements (DFAA) and is working closely with provincial officials to promptly provide assistance to the community of Lytton.
- We remain committed to be there to support British Columbians in their time of need, now and in the future.
Financial Implications
- Public Safety Canada is working with the Canadian Red Cross to establish a contribution agreement for $4.6 million.
- In 2022-23, main estimates funding for the DFAA is $100 million.
- Budget 2021 provisioned $1.9 billion over 5 years, starting in 2021-22, to Public Safety Canada to support provincial and territorial disaster response and recover efforts.
- Furthermore, through the Economic and Fiscal Update 2021, the Government of Canada provisioned $5 billion, for its share of British Columbia’ s recent natural disaster response and recovery costs under the DFAA, e.g., the wildfires, flooding and landslides that occurred in 2020 and 2021.
- It is worth noting that unforeseen circumstances, for example a new disaster, can drastically impact the DFAA’s budget envelope.
Background:
Canadian Red Cross (CRC)
In July 2021, the Government of British Columbia and the Government of Canada announced a donation matching program with the CRC, in response to the B.C. wildfires. Both jurisdictions matched individual and corporate donations to the CRC’s British Columbia Fires Appeal fund. The final amount to match is $4,626,193.
The Red Cross will work directly with people to discuss their unique needs and help them navigate their recovery journey and access available supports. This may include support for planning their return home, understanding insurance and community resources, providing financial assistance to access mental health services, as well as providing referrals and information to help people make decisions and inform their next steps.
Disaster Financial Assistance Arrangements (DFAA)
In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the DFAA, administered by Public Safety Canada. When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provides the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.
Since the inception of the program in 1970, the Government of Canada has contributed $6 billion in post-disaster assistance to help provinces and territories with the costs of response and of returning public infrastructure and personal property to pre-disaster condition.
The provincial or territorial government design, develop and deliver disaster financial assistance, deciding the amounts and types of assistance that will be provided to those that have experienced losses. The DFAA places no restrictions on provincial or territorial governments in this regard. However, the DFAA also sets out what costs will be eligible for cost-sharing with the federal government.
A province or territory may request Government of Canada disaster financial assistance when eligible expenditures exceed $3.38 per capita, effective January 1, 2022 (based on the provincial or territorial population). Eligible expenses include, but are not limited to, rescue operations, restoring public works and infrastructure to their pre-disaster condition, as well as replacing or repairing basic, essential personal property of individuals, small businesses and farmsteads.
The percentage of eligible costs reimbursed under the DFAA is determined by the cost-sharing formula clearly outlined in the arrangements and is up to 90% of eligible expenditures.
The Government of Canada may provide advance, interim and/or final payments to provincial and territorial governments as the reconstruction of major infrastructure proceeds and funds are expended under the provincial/territorial disaster assistance program. All provincial or territorial requests for advance and interim payments are subject to risk assessments and final payments are subject to federal audit to ensure that cost sharing is provided for eligible expenditures according to the DFAA guidelines.
A review of the program is being undertaken and aims to ensure that the program remains effective for the coming years.
Contacts:
Prepared by: Douglas May, Senior Director, Emergency Management Programs, 613-697-0526
Approved by: Trevor Bhupsingh, Assistant Deputy Minister, Emergency Management and Programs Branch, 613-993-4325
- Date modified: