2.0 Program Expenditures

The Atlantic Groundfish Strategy has been supported by a total budget of $1.9 billion. The budget was allocated amongst HRDC, DFO, and the Atlantic Canada Opportunities Agency (ACOA)/Federal Office of Regional Development Quebec (FORD-Q) to cover the costs of the program for the four Atlantic provinces and Quebec. HRDC's share of the total TAGS budget was $1.7 billion, approximately 92 percent of the total. The funds have been used to provide income support and active programming to TAGS clients as well as to cover all associated administrative expenses. The Department of Fisheries and Oceans was allocated five percent of the total budget to buy out licences, to fund early retirement packages for fishers and to cover associated administrative costs. ACOA/FORD-Q were allocated three percent of the budget which it used to support economic development in communities affected by the moratorium (see Appendix 1.1 and 1.2)(1).

Over the period from the 1994/95 to the 1997/98 fiscal years, 72 percent of the HRDC budget was allocated to Newfoundland and Labrador (approximately $1.2 billion)(2). Of this, 87 percent was earmarked for the provision of income support, 11 percent to the provision of active programming, and 2 percent was allocated to cover the costs of administrative support in Newfoundland and Labrador (see Appendix 1.3).

The TAGS program was originally designed to provide active programming to TAGS clients. Active programming offered the displaced workers opportunities to seek alternatives outside the groundfishery through training, mobility, early retirement, and/or various employment programs. However, because the number who accessed the income support component was much larger than initially expected, it became apparent that the $1.9 billion would be insufficient to cover the cost of all the goals and objectives of the program through to its planned termination in 1999. As a consequence of the funding constraints, in July 1996, it was announced that the TAGS program would end when all monies are exhausted. This could be as early as May 1998.

It was also announced that as of August 1, 1996, active programming would be curtailed and remaining related funds redirected to the income support component of the program. HRDC remained committed, however, to honouring active programming commitments made to clients prior to this announcement. On a separate, but related matter, HRDC entered into a cost-shared agreement with the Government of Newfoundland and Labrador to fund an early retirement package, The Fish Plant Older Workers Adjustment Program (FOWAP), for plant workers in the Province.
  
In total, HRDC allocated $275 million for active programming in all regions. Of this amount, $201 million was spent during previous fiscal years and $74 million was allotted for current and future fiscal years. In Newfoundland and Labrador, the amount earmarked for active programming up to and including the current fiscal year is $128 million. $122 million was spent in previous fiscal years and $6 million is designated for the current fiscal year(3).

1. As of May 15, 1997.

2. The $1.7 billion provided funds for the 1994 to 1999 fiscal years and future annuities. To date, however, information regarding amounts that will be allocated to the five regions for future fiscal years is unavailable. Thus, expenditures and budgets covering the period up to and including the current fiscal year (1997/98) are all that is available at this time for Newfoundland and Labrador.

3. The amount that Newfoundland and Labrador will allocate towards active programming in the future fiscal years is not yet known (see Footnote 2).