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Passport application backlog leads to lineups, scrambles summer travel plans

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TORONTO — Kelly Potter Scott has been looking forward to taking her 10-year-old daughter across the Canadian border for the first time for a girls’ getaway in Upstate New York in a couple of weeks.

But as she spent hours waiting outside a Toronto passport office, Potter Scott said she had to trust an official’s assurances that her daughter will have her documents for the weekend trip with family and friends.

“If we don’t get it, my daughter just won’t be able to come with us, which will be unfortunate,” Potter Scott said. “Fingers crossed, we get it in time.”

She was among dozens of people in a line that stretched down the block Wednesday, some toting fold-up chairs as they shuffled toward the door to submit their passport applications.

Some aspiring travellers expressed concern that their summer vacation plans could be scrambled as pent-up pandemic wanderlust fuelled a backlog in passport processing times.

Officials have been bracing for a rise in passport demand with the relaxation of COVID-19 border measures, bringing on 600 new employees to help sort through the influx of paperwork. Last month, Service Canada reopened all passport service counters across the country, and additional counters have been added at more than 300 centres.

But as many Canadians look to venture abroad after more than two years of pandemic-restricted travel, some passport seekers say they’ve been forced to camp outside service centres or reschedule trips because of the bureaucratic bottleneck.

It seemed to catch federal officials by surprise.

“The fact of the matter is that while we were anticipating increased volume, this massive surge in demand has outpaced forecasts and outstripped capacity,” Families, Children and Social Development Minister Karina Gould told a parliamentary committee on May 30.

“We know many people have been put in very difficult circumstances. And that is why I have directed officials to work as hard as possible to meet the demand.”

Between April 1, 2020 and March 31, 2021, Service Canada issued 363,000 passports as services were limited to urgent travel cases.

But as the world has reopened, demand has skyrocketed. Between April 1, 2021 and March 31, 2022, nearly 1.3 million passports were issued.

Since April, more than 317,000 passports have been handed out, and the federal forecast for 2022-2023 is between 3.6 million and 4.3 million applications.

Based on projections from last week, 75 per cent of Canadians who apply for a passport receive one within 40 working days, a spokesperson for Employment and Social Development Canada said in a statement. Ninety-six per cent of those who submit an application in-person at a specialized site receive a passport within 10 working days.

Nadia Elsayed in Oakville, Ont., said she mailed her infant daughter’s passport application in early April, indicating a tentative travel date of late May.

Elsayed waited for the envelope to arrive in her mailbox as that date came and went. With passport services not picking up the phone, she turned to her member of Parliament, and found out that her daughter’s documents were sitting in a stack of other applications in Gatineau, Que.

She arranged to have her daughter’s application sent to another office in the Toronto suburb of Mississauga. Officials told her they’d aim to have the passport ready 48 hours before her family is set to travel to the United States this month, Elsayed said, but that’s cutting it too close for comfort.

“It still feels a little bit up in the air, to be honest,” she said. “It just feels like we’re kind of hanging on and just hoping that things turn out.”

This report by The Canadian Press was first published June 9, 2022.

Adina Bresge, The Canadian Press

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Business

Federal departments failed to spend $38B on promised programs, services last year

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By Lee Berthiaume in Ottawa

The federal government failed to spend tens of billions of dollars in the last fiscal year on promised programs and services, including new military equipment, affordable housing and support for veterans.

Federal departments are blaming a variety of factors for letting a record total of $38 billion in funding lapse in 2021-22, including delays and disruptions caused by the COVID-19 pandemic.

They also say much of the money remains available for future years.

The unspent funds also played a big part in the Liberal government posting a smaller-than-expected deficit in the year ending March 31, 2022.

Canada rang up a $90.2 billion deficit — $23.6 billion less than had been projected in the budget.

The unprecedented amount of lapsed funding, much of which has been returned to the federal treasury, has one observer suggesting it is a sign of long-standing challenges delivering on big federal projects for the country.

The amount of lapsed funds across government is spelled out in the most recent iteration of the public accounts, a report on federal revenues and spending by every department and agency tabled in the House of Commons every year.

The $38.2 billion that was reported as lapsed in the last fiscal year marks a new record over the previous year, which was $32.2 billion. That was a dramatic increase over the previous record of $14 billion in 2019-20.

That compares to around $10 billion about a decade ago, when Stephen Harper’s Conservative government was accused by political opponents and experts alike of using large lapses to make cuts by stealth.

Health Canada and the Public Health Agency of Canada reported the largest lapses of all departments and agencies, with nearly $11.2 billion of their combined $28.2 billion budgets going unspent.

Much of that had been set aside for COVID-19 initiatives that were not needed, said Health Canada spokeswoman Tammy Jarbeau. Those include vaccines, personal protective equipment and rapid tests.

“Both Health Canada and the Public Health Agency of Canada have rigorous internal financial management controls designed to prevent, detect and minimize errors and financial losses, and ensure the funding is spent in the best interests of Canadians,” she wrote in an email.

The pandemic figured in the responses and explanations from many other departments and agencies, with many blaming COVID-19 for delays.

One of them was the Defence Department, which reported a lapse of $2.5 billion in the last fiscal year. Much of the money wasn’t spent due to delays in the delivery of new military equipment such as Arctic patrol vessels and upgrades to the Army’s armoured vehicles.

There were also delays on major infrastructure projects for the military, according to Defence Department spokeswoman Jessica Lamirande. Those include upgrading and rebuilding two jetties for the Navy in Esquimalt, B.C., and a new armoury in New Brunswick.

“The COVID-19 pandemic has had a significant impact on many of our business lines,” Lamirande said.

“The impacts of the pandemic on supply chain and industry capacity are causing manufacturing backlogs and delays.”

Lamirande added most of the unspent funds are expected to be available in future years through a process called reprofiling, in which schedules are revised to reflect planned spending in future years due to those delays.

Former parliamentary budget officer Kevin Page said the government’s handling of lapsed funding now is “a little more relaxed” than in previous years, when unspent funds were not reprofiled and even used to justify budget cuts in Ottawa.

But defence analyst David Perry of the Canadian Global Affairs Institute said the Defence Department’s lapse, which has been steadily growing in recent years, is a symptom of Ottawa’s continued difficulties purchasing new military equipment.

“If we’re not getting those procurement projects through, we’re not getting new equipment into the inventory, so we don’t actually have the gear for our troops,” he said, noting many of the delayed projects were launched under the Harper government.

Perry also noted the current rate of inflation, which is already naturally higher for military equipment and the defence sector than most other parts of the economy. Not spending money now means Canada will have to pay more for the same gear and services later, he said.

The Infrastructure Department, the Canadian Mortgage and Housing Corp. and the Fisheries Department, which includes the Canadian Coast Guard, also reported delays with different capital projects, including on affordable housing and broadband internet.

“Due to the unprecedented circumstances over the last few years such as the COVID-19 pandemic, disbursing funds to proponents for many projects are expected to and will take longer,” CMHC spokeswoman Claudie Chabot said in an email.

Perry suggested a bigger problem.

“The government of Canada’s ability to actually deliver services to the public, especially when it comes to large projects, large capital projects, be it for equipment or infrastructure or IT projects, is struggling across the board,” he said.

Other federal entities with large lapses included Indigenous Services Canada, which failed to spend $3.4 billion, and Crown-Indigenous Relations and Northern Affairs Canada, which reported a lapse of $2.2 billion.

Spokesman Vincent Gauthier attributed much of the latter lapse to “the timing and progress of negotiations for specific claims and childhood litigations,” adding that funds will available “in some instances” in future years.

Gauthier did not say why Indigenous Services, which is responsible for delivering federal services to First Nations, Inuit and Métis, failed to spend billions of dollars. He did say most of the money had been reprofiled “so that it will be available when recipients need it.”

Veterans Affairs Canada also reported a nearly $1 billion lapse last year, which the department blamed on fewer ill and injured ex-soldiers applying for assistance than expected.

However, critics have described earlier lapsed funding as evidence of the challenges many veterans face in accessing benefits and services. In 2014, the Royal Canadian Legion demanded the Harper government explain why $1.1 billion went unspent over seven years.

This report by The Canadian Press was first published Jan. 30, 2023.

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Alberta

Alberta budget set for Feb. 28, with focus on funding for health, school growth

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By Dean Bennett in Edmonton, Alberta, Canada

Alberta Finance Minister Travis Toews says the United Conservative Party government’s 2023 budget will be delivered on Feb. 28, the first day of the spring legislature sitting.

Toews said Friday it will focus on investing in health care and school enrolment growth.

It’s expected to be the final budget before voters go to the polls for a scheduled May 29 general election.

Alberta’s fortunes, powered mainly by energy revenues and further diversification of its economy, have been on the upswing since the global economy began rebounding from the COVID-19 pandemic.

Last fall, Toews announced the current budget year, which finishes at the end of March, is expected to record a $12.3-billion surplus.

That surplus comes even with $2.8 billion being set aside over the next three years to cover inflation-fighting programs and payouts to shield Albertans — particularly families, seniors and the vulnerable — from higher costs.

Toews said while energy prices remain volatile, the outlook is for them to stay strong.

“This budget will reflect the fact that health care is a priority, that health care capacity is a priority, ” said Toews in an interview.

“Alberta is leading the nation on net-inflow migration,” he added.

“Our population is growing. Our enrolment in our K-12 education system is growing, and the budget will reflect that good news story with additional enrolment growth.”

One outstanding question after the budget will be whether Toews will run again in the May vote.

He is a first-term UCP member representing Grande Prairie-Wapiti.

Toews declined to say whether he has made a decision.

“I’ll have more to say on that one later,” he said, “I’m focused on preparing the budget.”

This report by The Canadian Press was first published Jan. 27, 2023.

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