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Vol. 139, No. 23 — June 4, 2005

Regulations Amending the Assistance Fund (W.V.A. and C.W.A.) Regulations

Statutory authority

Department of Veterans Affairs Act

Sponsoring department

Department of Veterans Affairs

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

War Veterans Allowance (WVA) is a form of financial assistance available from Veterans Affairs Canada (VAC), pursuant to the War Veterans Allowance Act. In recognition of war service, qualified persons are provided with a regular monthly income to meet their basic needs. Eligibility is determined by the wartime service of a veteran or qualified civilian, age or health, income and residency. The amount of WVA is based on income, marital/ common-law partner status and number of dependants. Recipients are paid at a single, married or orphan's rate.

The Assistance Fund (W.V.A. and C.W.A.) Regulations are made pursuant to the Department of Veterans Affairs Act. These Regulations provide for financial assistance to War Veterans Allowance recipients who are residents in Canada and who need aid to meet emergencies or unexpected contingencies for which they do no have sufficient resources.

Since July 1, 1980, the dollar value of Assistance Fund grants has been set at a maximum of $500 per calendar year per eligible WVA recipient. In these intervening 25 years, the cost of living has increased substantially and, combined with the increasing needs of ageing clients, the $500 cash grant no longer meets most requests for such assistance. An increase in the dollar value from $500 to a maximum of $1,000 would help relieve this unexpected financial shortfall and, more importantly, contribute positively to client health and safety. This increase would take effect with respect to calendar year 2005.

Alternatives

There are no alternatives to implementing this program modification other than amending the Regulations, as the terms and conditions of the Assistance Fund program are set out in a regulatory framework.

Benefits and costs

This amendment to the Assistance Fund (W.V.A. and C.W.A.) Regulations will benefit eligible War Veterans Allowance recipients, including dependants, survivors, orphans and separated spouses, by increasing the cash grant to a much more realistic amount in order to meet the emergencies or unexpected contingencies of these clients.

These grants are most commonly paid for shelter, clothing, health items and essential appliances. In 1980, when the existing $500 rate was set, it was sufficient to meet these needs; however, the situation has changed greatly in the interim.

The cost of this program modification can be funded through the existing reference levels. In fiscal year 2003-2004, approximately 1 900 clients received grants through this program. The total expenditures were $692,000. The number of eligible Assistance Fund clients is expected to decline in the next few years, in direct relation to the decline in the number of War Veterans Allowance recipients.

Consultation

It is anticipated that this measure will be well received by eligible veterans. The major veterans' organizations, such as the Royal Canadian Legion, the National Council of Veterans Associations of Canada and the Army, Navy and Air Force Veterans in Canada will be informed as part of the normal consultation process. It is anticipated that these organizations will fully support this amendment.

The proposed Regulations will be published in the Canada Gazette, Part I, for a 30-day public comment period.

Compliance and enforcement

Relevant benefit control procedures will continue to apply to the provision of Assistance Fund cash grants. The Department has policies and administrative procedures in place to determine eligibility and entitlement of applicants seeking financial assistance from the Assistance Fund program. Individual client needs relating to reported emergencies and unexpected contingencies are assessed. Prior to approving an Assistance Fund grant, a screening procedure is conducted to ensure applicants are qualified recipients under the War Veterans Allowance Act. The Department has a three-tier redress process available to applicants who are dissatisfied with a decision.

Contact

Mary Brodersen, Chief, Legislation (Statutes), Veterans Affairs Canada, Daniel J. MacDonald Building, Room 304, 161 Grafton Street, P.O. Box 7700, Charlottetown, Prince Edward Island C1A 8M9, (902) 368-0682 (telephone), (902) 368-0437 (facsimile), mary.brodersen@vac-acc.gc.ca (electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraph 5(e.1) of the Department of Veterans Affairs Act, proposes to make the annexed Regulations Amending the Assistance Fund (W.V.A. and C.W.A.) Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mary Brodersen, Chief of Legislation (Statutes), Policy Planning and Liaison, Veterans Affairs Canada, P.O. Box 7700, 161 Grafton Street, Charlottetown, P.E.I. C1A 8M9 (tel.: (902) 368-0682; fax: (902) 368-0437; e-mail: mary. brodersen@vac-acc.gc.ca).

Ottawa, May 30, 2005

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE ASSISTANCE FUND (W.V.A. AND C.W.A.) REGULATIONS

AMENDMENT

1. Section 7 of the Assistance Fund (W.V.A. and C.W.A.) Regulations is replaced by the following:

7. (1) Subject to subsection (2), the Minister of Veterans Affairs may grant financial assistance from the Assistance Fund to a recipient under the Act or under Part XI of the Civilian War-related Benefits Act if that person

(a) is a resident of Canada; and

(b) makes an application to the Minister demonstrating that the assistance is required to meet an emergency or an unexpected financial contingency or to relieve financial distress.

(2) The assistance shall not exceed the sum of one thousand dollars during any calendar year.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

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