Subject: Budget Cuts to Environment in Canada GALLON ENVIRONMENT LETTER Canadian Institute for Business and the Environment 506 Victoria Avenue, Montreal, Quebec H3Y 2R5 Ph. (514) 369-0230, Fax (514) 369-3282, email: cibe@web.net JULY 23, 1997 ____________________________________________________________________________= ____ ONTARIO ENVIRONMENT BUDGET CUT 44% =20 The Canadian Institute for Business and the Environment analyzed the detailed "budget estimates" of the Ontario Ministry of Environment and Energy (MOEE) for 1995-95 and for 1997-98. The institute found that the operating budget of the environment ministry was cut from $365.4 million in 1994-95 to $211.0 million in 1997-98. That is a loss of $154.4 million, or 44 per cent, from Ontario environmental protection budget. At face value, the MOEE budget showed only a drop of 4.3 per cent from $365.4 million in 1994- 95 to $349.8 million in 1997-98. However, the 1997-98 contains a paper transfer of capital funds of $138.8 million from the Ontario Clean Water Agency (OCWA). This money was not shown on the MOEE 1994-95 books. Called "Municipal Assistance Program" (MAP), the funds are provided annually for municipal water and sewer system upgrades. The transfer masked a real cut of $194.4 million to MOEE operating budgets and other MOEE capital budgets for technology development, eco-efficiency, and recycling. The cuts are 60 per cent more than the across-the-board government cuts averaging 25 per cent that all Ontario ministries, including MOEE, committed to, in order to meet deficit reduction targets. Let's review the major cuts within the environment ministry's programs: Funding for the development of environmental programs and standards was cut 99 per cent from $51 million to $500,000. The province has reduced its ability to design standards and carry out voluntary environment programs. o Environmental laboratory services funding was cut 40.3 per cent from $29.5 million to $17.6 million o Compliance and enforcement branch budget was reduced 30 per cent, or $14.7 million from the $49.1 million in 1994-95 to $34.4 million this year. o Capital funding for environmental technologies and processes including new technologies, recycling and energy conservation equipment, was virtually eliminated, being dropped 99% from $72.2 million in 1994-95 to $500,000 this year. o Funding for "Beaches Restoration" was cut 97 per cent from $12 million in 1995-6 to $400,000 in 1997-98.=20 o Environmental Science and Technology operational funding was cut 75.8 per cent from $19.4 million to $4.7m. Total Ministry staff positions were cut 880 (36%) from 2,430 in 1995 to 1,550 in 1997. Abatement officers in the regions that used to visit the plants on a regular basis are reduced. The ones that remain conduct their investigations on sporadic occasions. This makes it tough for regional offices to identify and correct problems before they create a significant economic and environmental cost. The severe cuts to the Ontario government's environmental budget will have a profound impact on the province's ability to protect its environment over the next decade. It gives rise to a number of questions that need to be addressed. First, are the excessive cuts a part of the Provincial Government's stated policy of reducing environmental impediments to business in Ontario? If that is the case, the give-away could backfire financially for the province as a result of rising costs to the government for pollution remediation (e.g, Hamilton plastics fire and Collingwood drinking water contamination), and rising costs of medical care. =20 Without adequate resources for monitoring and abatement will the people know the full extent of the impact on environmental health within their communities related to drinking water, the air they breathe and the soil from which they take food? Will the cuts affect Ontario's, and Canada's, competitive advantage in eco-efficiency technology and services development? Can Ontario handle the downloading of federal environmental responsibilities from Environment Canada? Call the Hon. Norm Sterling, Minister of the Environment and Energy, Ontario and request a copy of the 1997-98 "Estimates":MOEE, 12th Floor, 135 St. Clair Ave., W., Toronto, Ontario, Canada, (416) 323-4359. ****************************************************************************= *** CHART OF ONTARIO ENVIRONMENT CUTS TWO YEARS 1994-95 TO 1997-98 BUDGET ITEM 1994-95 1997-98 $'s Reduced Reduced %%% (millions) (millions) (millions) Total MOEE Budget 365.4m 211.8m $154.4m 44.0% Total Operating 290.2 165.5 124.7 43.0% Utility Planning (OCWA transfer) -- 178.8 178.8 + increased Envir & Energy Services (capital) 72.7 0.5 72.2 = 99.3% Program & Standards Dev (oper) 53.0 16.2 36.8 69.4% Env Science % Tech (operating) 19.4 4.7 14.7 75.8% Lab Services (operating) 29.5 17.6 11.9 40.3 Energy Devel. & Mgmt (operating) 12.8 3.7 8.4 69.4 Programs & Standards Dev (cap) 51.8 0.5 51.3 99.0% Energy Devel & Mgmt (capital) 20.9 --- 20.9 100.0% Compliance & Enforcement (ops) 49.1 34.4 14.7 30.0% Environmental Compensation Corp. 379,200 -- 379,200 100.0% Policy Devel & Gov Relations 11.3 6.5 4.8 42.5% Program Admin.(operating) 16.3 3.5 12.8 78.5% Staff Cuts (positions) 2,430 1,550 880 36.2% =09 **************************************************************************** ***** CANADA'S NATIONAL SECTOR TEAM ON ENVIRONMENT BUSINESS The environment industry in Canada has a "National Sector Team" established with the federal government to support business development within the sector and to promote the exports of environmental goods and services. Environment is one of 21 national sector teams created in=20 in the fall of 1995, under the joint sponsorship of the Department of Foreign Affairs and International Trade and Industry Canada. The primary focus of NSTs is the development and implementation of the Canadian International Business Strategy (CIBS) for their sector. The June 17 Environment Industry NST video conference, involving government and industry participants from across the country, focused on development of the 1998/99 Canadian International Business Strategy (CIBS). Companies in each region were informally surveyed to get their input. Highlights of responses are: the NST is taking the right approach with the CIBS; Team Canada works - we need to build on it; there was general consensus on the markets targeted by the CIBS; there is a need for timely market intelligence on specific project opportunities (i.e. Enviro- News); there should be more private sector involvement in benefits from MOUs; and the long lead time and high cost of international market development presents significant barriers for most Canadian environmental companies, hence, some tax or other incentive to encourage export business development is required. The sub-sectors most often identified for future strategic direction/focus were: site remediation; water/wastewater; waste management; environmental assessment; geomatics; and clean air technologies. For more info., call Sherrill Owen, Industry Canada at 613- 954-2938. *********************************************************** MEMBERS OF CANADA'S ENVIRONMENT NATIONAL SECTOR TEAM=20 Listed below are the members of the National Sector Team for environment business. A list of the team (including address and phone numbers), plus the team's mandate can be downloaded from the Strategis website at: =20 http://strategis.ic.gc.ca/sc_indps/nst/engdoc/homepage.html.=20l The members are: FEDERAL (30) Lucien Bradet, NST Leader, Industry Canada, tel: (613) 954-3080 Sherrill Owen, NST Secretary, Industry Canada John Beveridge, Industry Canada Burke Darling, Industry Canada Eric Anderson, International Trade Centre, Industry Canada Tom Babcock, Atlantic Canada Opportunities Agency Jane Bain, New Ventures, CANMET, Natural Resources Canada Marie-France B=E9rard, Chef, d=E9veloppement technologique, Environnement= Canada Mark Bowman, Manager, Financing Services, Export Development Corporation= (EDC) John Brown, Environmental Analyst, Agriculture and Agri-Food Canada Christian Coderre, Federal Office of regional Development - Qu=E9bec Ronald Cyr, Federal Office of regional Development - Qu=E9bec Maryann Everett, International Trade Centre - Atlantic Region, Industry= Canada Bruno Goulet, Dir. Int'l. Business, Intl Trade Centre, Quebec Kathryn Hewlett-Jobes, Director, Trade Opportunities Division, DFAIT Andrew Kenyon, Policy Analyst, CIDA Simone Lauzi=E8re, Industry Canada - Quebec P.K.Lueng, Ass't. Director General, Environnement Canada Ron McLeod, Senior Trade Commissioner (Alberta), Industry Canada Gerald Milot, Trade Commissioner (Ontario), Industry Canada Ed Norrena, Director General, Environment Canada Tel: (819) 953-3090 Robert Pedersen, Senior Trade (B.C.), International Trade Centre, Industry Canada Bernard Postma, Development & Operations,(Atlantic Region), Industry Canada Gilles Potvin, Environment Trade, DFAIT, Tel: (613) 996-1431 Peter W. Stevens, Environment Support, Canadian Commercial Corporation (CCC) Anne Thompson, Industry Sector Officer, Atlantic Canada, Industry Canada Keith Warren, Trade Commissioner, International Trade, Centre, Industry= Canada David Woynorowski, Western Economic Diversification, Industry Canada Lori Young, International and Intergovernmental Affairs, Environment Canada Derek Yue, Industry Services Officer (Ontario), Industry Canada, Tel: (416) 973-5159 PROVINCIAL MEMBERS (14)=20 Gerry Adamson, Director, Dept of Economic Development, Saskatchewan Richard Aub=E9, Directeur des Industries de l'environnement, Minist=E8re de l'Industry, du commerce, =20 et de la science et technologie, Quebec C=E9cile Bran=E7on, Export Advisor, minist=E8re de l'Industrie, du Commerce,= de la Science et de la Technologie (MICST, Quebec Bill Carter, Dept of Industry, Trade & Technology, Newfoundland Shelley Clark, Manager of Trade Promotions, PEI Allan Collier, Industries Branch, Ministry of Employment and Investment, = B.C. John Fudge, Dept of Economic Development & Tourism, New Brunswick=20 Bryan Hughes, BC Trade and Investment Office, B.C. Jerry Keller, Dept of Economic Development & Tourism, Alberta Debra Mckeown, Green Industries Office, MOEE, Ontario Don Robertson, Trade Development, Economic Renewal Agency, Nova Scotia Julianne Schaible, Dept. of Industry, Trade & Tourism, Manitoba Shirley Townsend, International Trade Corporation, Ontario Orest Warchola, Economic Development and Tourism, Alberta ASSOCIATIONS (17)=20 John H. Archibald, Canada Asean Centre Eric Bouchard, Association qu=E9b=E9cois des teniques de l'environment Association des entpreneurs de services en environment due Qu=E9b= ec Carmen Adam , Commissaire - Environnement Service de=20 d=E9veloppement =E9conomique, Quebec Serge Cabana, Pr=E9sident, Grappe de d=E9veloppement des Industries de l'environnement inc., Quebec Monique Grabaski, Manitoba Environmental Industry Association (MEIA) Douglas Langley, Int'l Association of Environmental Testing Laboratories= (IAETL) Timothy Page, Association of Consulting Engineers of Canada Ron Portelli, President, Canadian Environmental Industries Association= (CEIA) Tim Schultz, Environmental Services Association of Alberta (ESSA) Robert K. (Bob) Swartman, President, Canadian Solar Industries Association Sherri Watson, Canadian Air & Waste Management Association (AWMA) John D. Wiebe, President, GLOBE Foundation Ed Kennedy, President, Geomatics Industry Association of Canada Manon Laporte, Pr=E9sidente, Enviro-Acc=E8s, Quebec Bill Lightowlers, President, CEIA -BC and CETAC West Jeff Passmore, Vice President, Indep. Power Producers Society of Ontario= (IPPSO) Gerry Rich, President of CEIA Ontario ************************************************************ CANADA'S ENVIRONMENTAL ASSESSMENT PUBLICATIONS ON CD-ROM GET YOURS NOW Your company does environmental assessments and environmental audits. It needs quick access to EA quality information. It can obtain a CD ROM with a search engine from the Canadian Environmental Assessment Agency. It has a complete collection of publications since 1974. .=20 The Agency will add new publications each year as they are produced. Over 500 documents, both published and unpublished are on the disk, including: publications of the Agency's forerunner, the Federal Environmental Assessment Review Office (FEARO). It also has research and development studies conducted for the Canadian Environmental Assessment Research Council (CEARC) on such topics as social impact assessment, mitigation measures and compensation issues, traditional ecological knowledge, cumulative environmental effects and sustainable development and environmental assessment; the popular 250-page Responsible Authority's Guide to the Canadian Environmental Assessment Act , the Citizen's Guide to the Canadian Environmental Assessment Process, the Environmental Assessment of Policy and Programs; reports of the International Study of the Effectiveness of Environmental Assessment published in collaboration with the International Association for Impact Assessment (IAIA). Cost: $65.00 (Canadian). Contact: Suzanne Latour, CEAA, Tel. (819) 953-5537, Fax (819) 953-2891; E-Mail: slatour@gsro.carleton.ca ************************************************ MARINE "EARTH SUMMIT" PLANNED IN NEWFOUNDLAND Canada will host a world oceans policy conference Sept. 1 to 6, 1997 in Newfoundland. At the event, called an Earth Summit on the oceans, Canada will launch the 'Ocean Charter', a statement of principal on ocean management which all nations will be urged to sign by the end of 1998, the International Year of the Ocean. While the U.N. Convention on the Law of the Sea has been ratified and there has been agreement on Straddling and Highly Migratory Fish Stocks, organizers say there is still debate on the effectiveness of international law as a mechanism to enforce sustainable development of marine resources. Guest speakers include UNESCO Director General Federico Mayor and James Baker, Chief Administrator of the U.S. National Oceanic and Atmospheric Administration. Some 1,000 international delegates are expected at the core conference in St. John's and 2,000 delegates at 11 other related conferences worldwide between Aug. 27 and Sept. 19. See: <http://www.cabot500.nf.ca/summitps/nst/engdoc/homepage.html.=20l> Contact: Jan Woodford, Tel: +1-709-729-4323; fax: +1-709-579-2067; email: jwoodfor@cabot500.gov.nf.ca. **************************************************** REPORT ON DEPOSITION OF AIR POLLUTANTS TO THE GREAT WATERS=20 =20 The United States Environmental Protection Agency Office of Air and Radiation has released its' second report to Congress regarding the deposition of air pollutants to the great waters, fulfilling the requirements in Clean Air Act (CAA) section 112(m)(5). The water bodies collectively referred to as the "great waters" in this report are the Great Lakes, Lake Champlain, Chesapeake Bay, and specific coastal waters (i.e., defined in the statute as coastal waters designated through the National Estuary Program and the National Estuarine Research Reserve System). The First Report to Congress on atmospheric deposition to the Great Waters was published in May 1994.=20 The main objective of this report is to present information about atmospheric deposition of pollutants to the Great Waters based on the scientific data available since publication of the First Report to Congress. The report focuses on research and activities in specific water bodies to further understand and promote reductions of overall contaminant loadings to the Great Waters. In addition, this report includes a brief discussion of EPA's draft determination of the adequacy of CAA section 112 to protect the Great Waters from deposition of hazardous air pollutant emissions from domestic stationary sources. Obtain the report at website: =20 http://www.epa.gov/oar/gr8water/ps/nst/engdoc/homepage.html.=20l =20 ****************************************************** SUBSCRIBE TO THIS NEWSLETTER Support the work of the Canadian Institute for Business and the Environment. Ssubscribe to "The Gallon Environment Letter". The four-page newsletter is distributed twice monthly. Send a cheque for $98.00 a year (GST included) and help finance the research that delivers inside information and breaking news on environment business in Canada and the world. Make cheque out to "Gallon Letter", send to CIBE, 506 Victoria Ave., Montreal, Quebec, H3Y 2R5. Gary T. Gallon Canadian Institute for Business and the Environment 506 Victoria Ave. Montreal, Quebec H3Y 2R5 Ph. 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