Parliamentary Committee Notes: Status of Flooding in British Columbia and the Red Cross Donation Matching Program
Date: May 11, 2022
Classification: Unclassified
Fully releasable (ATIP)? Yes
Branch / Agency: EMPB / PS
Proposed Response:
- On November 26, 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 Floods and Extreme Weather Appeal’ fund.
- Through this initiative, the Government of Canada will contribute over $30 million to support the immediate and longer term needs of people impacted by the floods. This includes personalized recovery services to support the return to their homes.
- Our government is also supporting the province through the Disaster Financial Assistance Arrangements program. We received early response and recovery estimates from the Province, and are working with them to advance a payment as soon as possible.
- PS is working closely with the province to complete a risk assessment to determine the exact amount of the advance payment, which should not exceed half of the estimated federal share of eligible costs for this event (i.e. 50 percent of $3.52 billion).
- We remain committed to helping impacted communities recover and rebuild from this devastating disaster.
Financial Implications:
- Through the Economic and Fiscal Update 2021, the Government of Canada provisioned $5 billion, on a cash basis, 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.
- Public Safety is working with the Canadian Red Cross to establish a funding agreement for more than $30 million in donations to be matched by the federal government for the BC Floods and Extreme Weather Appeal.
Background:
Canadian Red Cross (CRC)
On November 26, 2021, the Government of Canada and the Government of British Columbia announced that they will match every dollar donated to the CRC’s British Columbia Floods and Extreme Weather Appeal. This means that every $1 donated will become $3 to support those affected by the floods. Both governments matched individual and corporate donations for a period of 30 days, from November 26 to December 26, and retroactively captured donations received since November 17, 2021, when the campaign began. Over $30 million has been donated for a total of over $90 million raised.
The matched amount would be funded under the Supporting the Canadian Red Cross’s Urgent Relief Efforts Related to COVID-19, Floods and Wildfires Transfer Payment program. Minor amendments to this program that were made to support this initiative include, increasing the maximum contribution limit and extending the end date of the program. Public Safety Canada is working with the Red Cross to establish a funding agreement. Discussions have already begun with the Red Cross and BC Government on priorities for the funding.
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.
Committee to Address Extreme Weather and Climate Resilience in BC
The Prime Minister of Canada and Premier of BC also announced on November 26 that a committee of federal and provincial ministers will be established to work together, with Indigenous leadership, to guide immediate and ongoing support to British Columbia families, businesses, and communities affected by the extreme weather events. The new committee builds on the joint Federal / Provincial Supply Chain Recovery Working Group, which was announced on November 20, 2021. The Hon. Bill Blair, President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness, and The Hon. Mike Farnworth, Deputy Premier and Minister of Public Safety and Solicitor General of British Columbia, co-chair the new committee. This committee is building on the work of local emergency management and taking action on several fronts, including emergency housing and support for farmers, to make sure affected communities recover from this disaster as quickly as possible.
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 Disaster Financial Assistance Arrangements (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.
British Columbia is familiar with the DFAA, having received over $860 million in federal contributions for 42 separate events that have occurred in the province since 1970.
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
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