:
Welcome to meeting number seven of the House of Commons Standing Committee on Government Operations and Estimates.
Today we will be hearing from the President of the Treasury Board regarding the supplementary estimates and the departmental results reports. We'll also discuss committee business during the last 30 minutes of the meeting.
Today's meeting is taking place in a hybrid format, pursuant to the House order of November 25, 2021. Members are attending in person in the room, and remotely using the Zoom application. Regarding the speaking list, the committee clerk and I will do our best to maintain a consolidated order of speaking for all members, whether participating virtually or in person. I'd like to take this opportunity to remind all participants in this meeting that screenshots or taking photos of your screen is not permitted.
Given the ongoing pandemic situation and in light of the recommendations of public health authorities, as well as the directive of the Board of Internal Economy on October 19, 2021, to remain healthy and safe, the following is recommended for all those attending the meeting in person.
Anyone with symptoms should participate by Zoom and not attend the meeting in person. Everyone must maintain two-metre physical distancing, whether seated or standing. Everyone must wear a non-medical mask when circulating in the room. It is recommended in the strongest possible terms that members wear their masks at all times, including when seated. Non-medical masks, which provide better clarity over cloth masks, are available in the room. Everyone present must maintain proper hand hygiene by using the hand sanitizer at the room entrance. Committee rooms are cleaned before and after each meeting. To maintain this, everyone is encouraged to clean surfaces, such as the desk, the chair, and the microphone, with the provided disinfectant wipes when vacating or taking a seat.
As the chair, I will be enforcing these measures for the duration of the meeting, and I thank members in advance for their co-operation.
I would like to welcome the President of the Treasury Board and her colleagues. It's so nice to see such a full room for the first time in such a long time. Thank you to everybody who is here, and to those who are attending via Zoom. Hopefully soon, we'll be able to get you all here as well.
That said, I invite the minister to make her opening statement, please.
It is a great pleasure, in fact an honour, to appear before the Committee as President of the Treasury Board for the first time to discuss the Supplementary Estimates (C), 2021‑22.
With me today, in person and virtually, are various officials from the Treasury Board Secretariat.
Allow me to introduce them, Mr. Chair. They are Annie Boudreau, Assistant Secretary, Expenditure Management Sector; Karen Cahill, Assistant Secretary and Chief Financial Officer; Marie-Chantal Girard, Senior Assistant Deputy Minister, Employee Relations and Total Compensation; Monia Lahaie, who is participating virtually, Assistant Comptroller General, Financial Management Sector; Samantha Tattersall, Assistant Comptroller General, Acquired Services and Assets Sector; and Paul Wagner, Assistant Deputy Minister, Strategy and Transformation.
I would like to thank them all for being here with me today.
Supplementary Estimates (C), 2021‑22, are the third and final component of the supplementary estimates planned for this fiscal year. Regarding Supplementary Estimates (A) and (B), these estimates set out information about supplementary spending needs that was not ready in time to be added to the main estimates or that was subsequently refined to take recent developments into account.
Canadians are entitled to know how public funds are spent and to ask the government to account for them. That is why we continue to prioritize the manner in which these estimates are presented, accompanying them with detailed explanatory documentation that is readily accessible online for parliamentarians and Canadians. It should also be noted that reporting tools such as the Government of Canada's InfoBase and the Open Government Portal make it easy for Canadians to consult the spending approved by Parliament.
Mr. Chair, allow me to offer an overview of the supplementary estimates for the government as a whole before moving on to the funding requests for my own department, the Treasury Board Secretariat. In these supplementary estimates, the government is asking Parliament to approve voted budgetary expenditures of $13.2 billion to meet the numerous challenges Canadians are facing at this time. The supplementary estimates provide information about $3.9 billion in revisions to statutory expenditures, in particular to fund the Canada Worker Lockdown Benefit and ventilation improvement projects in schools.
A majority of new investments support Canadians' common priorities, including combatting COVID‑19 by acquiring rapid screening tests, vaccines and therapeutic products; addressing the impacts of climate change; supporting housing, education, water treatment, healthcare services, and emergency response activities for Indigenous Canadians and their communities; funding housing and infrastructure projects; and supporting military operations and personnel.
[English]
My own department, the Treasury Board Secretariat, is requesting funding to re-establish a centre of expertise for real property to improve federal real property management. The centre of expertise will implement recommendations from the government's horizontal fixed asset review, which was completed in 2021, and support departments in responding to real property changes resulting from the COVID-19 pandemic.
Treasury Board is also seeking $2.8 billion to meet the government's obligations under the court-ordered White class action settlement agreement and to ensure that settlement payments are not interrupted.
TBS is also requesting funding for adjustments due to changes to collective agreements and to reimburse organizations for eligible pay list expenditures such as parental allowances and severance pay.
Before I close, allow me to touch briefly on the department results report for my department.
These reports are an important part of a broad set of reports to Parliament that provide transparency in government spending for Canadians and parliamentarians. Specifically, the department results reports measure progress towards objectives set out in annual department plans, giving parliamentarians and Canadians a clear view of the results achieved by federal organizations and how resources were used to achieve those results.
In the case of the Treasury Board Secretariat, the report details results for 2020-21, including ongoing efforts to improve diversity and inclusion in the public service, transforming service delivery to support Canadians through the COVID-19 pandemic and continuing to provide government-wide leadership towards net-zero green and climate-resilient government operations.
Now I'd like to say a few words about each of these reports.
Treasury Board launched a suite of initiatives in consultation with equity-seeking employee networks to improve diversity and inclusion. These include the release of disaggregated data, programs to help address barriers to recruitment and promotion at the executive level, and amending the Public Service Employment Act.
In addition, today we tabled legislation to modernize the Official Languages Act to strengthen bilingualism in the public service. We are supporting women in the federal workforce by working with bargaining agents to identify and close any gaps that exist by increasing compensation for employees in predominately female jobs not receiving equal pay for work of equal value.
Our government set ambitious targets to reduce greenhouse gas emissions from federal operations by at least 40% below 2005 levels by 2025, and by 90% by 2050. Our steps to realize these goals include building zero-carbon buildings and maximizing energy efficiency in existing ones, using nature-based solutions to protect assets from natural disasters, and transitioning to a net-zero circular economy through green procurement.
Finally, to make our work sites and communities safer, last fall we required vaccination across the public service. I'm happy to report that over 98% of the core public administration are fully vaccinated.
Before I close, I would like to take this opportunity to thank our hard-working public servants. Over the past two years, they have been tireless in their efforts to protect the health and safety of Canadians while putting in place essential new supports that Canadians depended on.
Mr. Chair, the supplementary estimates (C) demonstrate our government's ongoing commitment to improving Canadians' quality of life and effectively responding to the COVID-19 pandemic. They also play a vital role in supporting Parliament's review of how public funds are being spent and in holding the government to account.
With that in mind, I would like to thank the committee for its thorough review in its ongoing study of government spending to support Canadians.
My officials and I would now be pleased to answer your questions. Thank you very much.
:
It's great to see you, Irek. Hopefully we'll be seeing each other in person very soon, or maybe I'll get a chance to go back to Windsor.
I want to thank you. It's really important that we know that Treasury Board has a role and is responsible for spending authority, and that we provide due diligence and approve program parameters to set out departmental submissions, including any voted amounts to be included in the estimates and related appropriations bills.
We are the biggest employer in Canada and have the privilege of working with almost 300,000 public servants. We have the privilege of really making sure public servants can serve Canadians. We also approve collective agreements.
Also, we establish the rule sets for people, information technology, expenditure management and regulations, and we review spending plans on departmental initiatives and decisions that affect services we deliver to Canadians. Under my mandate, we also have the digital strategy mandate and greening government.
As you can see, the Treasury Board has many responsibilities, and I'm very proud to be the president at this time with a great team.
As the largest employer, it was remarkable when I saw that over 98% of employees are fully vaccinated, which I think is a remarkable accomplishment. Keeping them safe and healthy and looking after their well-being, obviously, are huge priorities.
On that note, I want to turn our attention to the fact that COVID-19 measures, in general, accounted for well over half of the authorities under these supplementary estimates, totalling, I think, $9.8 billion. For the year, that actually brings the total COVID-related authorities to just a shade under $60 billion, if I'm not mistaken.
I just want to ask, Minister, if you can tell us how the money that's been requested by Health Canada and the Public Health Agency of Canada will help us in the fight against COVID-19 and to protect the health and safety of Canadians.
Good afternoon, Ms. Fortier.
I have a lot of questions to ask you about the budget, which I have dissected, but first I am going to address the question of French.
I know that improving the status of French in the public service is one of your objectives. In recent months, there have been newspaper articles about how francophones are often bilingual but anglophones aren't. Using French on Zoom has been difficult. For example, even plumbers in remote regions like Port-Cartier on the North Shore are being asked to be bilingual, in case there are anglophone prisoners. The same requirement does not exist in Ontario or the Prairies, for example.
In 2016, $50 million was spent on francization courses for public servants. How can the effect of those courses on anglophones' level of bilingualism be measured, at the end of the day?
Minister, I wrote you a letter in mid-January about outsourcing. I reminded you about your party's commitment in 2015, when your party promised that while in government, they would focus on reducing the use of external consultants. There was an analysis published in The Globe and Mail that said that it's not happening; rather, the use of consultants under your party's watch has increased a staggering 41.8% since your government took power. I want to remind you that this spending has totalled over $12 billion in the 2020-21 year.
Outsourcing and the privatization of public services have time and time again only proven to increase costs, add risk to taxpayers, reduce the quality of services, erode the internal capacity of the public service, create precarious work and undermine initiatives that address pay equity and systemic racism. A report by the Professional Institute of the Public Service of Canada emphasized how your government often initially awards a contract that on the surface offers relatively low cost and value for money, only for the contract costs to be substantially increased once it's been awarded.
There's no greater example of outsourcing failing than the debacle with the Phoenix pay system. It's a scandal that, since its launch five years ago, has still not been successfully resolved by your government. The costs incurred related to the Phoenix pay system were reportedly $560 million. That is now twice as much as the federal government spent to set the system up. It is a system with a stated purpose of generating long-term savings, but it has only managed to outsource its expensive failings to the Canadian taxpayer.
The consultancy firm McKinsey has been contracted by your government to help fix the Phoenix pay system, originally for the cost of $4.9 million, but this contract has now been amended three times. The estimated cost of the contract is now $27.7 million, which is an increase of 565%.
This culture that permeates your government of allowing highly paid consultants to repeatedly change the cost of their work ever upward is not only fiscally irresponsible, but an insult to Canadian taxpayers who work hard and play by the rules. As the President of the Treasury Board, you have the opportunity and ability to stop the government's increasing drive to outsource and privatize public services, which decades of overwhelming evidence has shown will lead to higher costs.
Will you commit to taking an evidence-based approach to public service delivery and ensure that, wherever possible, the government contracts in-house, rather than wasting hundreds of millions of dollars on highly overpaid consultants?
Supplementary Estimates (C), 2021‑22, contains 46 horizontal items, which is gigantic. That is not necessarily bad news, because it means that the departments are collaborating with one another. I was pleased with some of those government items, but I also found them shocking.
That is the case for the following horizontal item in particular. Out of $654 million, $647 million is going to the Department of Foreign Affairs, Trade and Development for operating expenses relating to climate change mitigation measures in developing countries. So $647 million is going to that department for operating expenses—that's fine—but also for grants and contributions for international climate finance mechanisms and financial institutions, and projects to promote adaptation to climate change and development of governance capacity.
I have to say that I wondered. I mean, $647 million out of $654 million is really a big piece of the pie. I wondered what proportion of that $647 million was allocated to international financial mechanisms and financial institutions in comparison to the proportion allocated to the projects themselves. I didn't know that international financial institutions needed grants and contributions from Canada. That was a surprise to me.
When we talk about development of governance capacity, whose capacity is that, and for what?
:
Thank you for your question.
You may have seen that we published the most recent health and safety guidelines yesterday, in partnership with Health Canada. This means we can consider a gradual return, after Omicron and what has happened in recent weeks. According to what was very clearly announced yesterday in our communications, the return must be cautious and gradual, and must adhere to certain health and safety rules that our Health Canada colleagues have provided to us. Each deputy minister, as the person in charge of their organization, must ensure that gradual return to work plans are implemented with this in mind.
In addition, we see this as an opportunity to rethink how we do things and review the plans. In light of the experience of the last two years, we understand that there will not be a uniform approach throughout the public service.
The public service is decentralized and its operations are complex and diverse. Each department, with the support of the team working with the head of human resources, who provides the guidelines, is now preparing its plan and how it will be implemented.
It will be done gradually, to have what we can call a hybrid return, but most importantly a flexible one. We have learned from experience, and the plan will be based on experimentation. We are not the only ones who are going through this.
Once again, it comes down to adopting a uniform approach. It is impossible for the Government of Canada, the largest employer in Canada, to adopt that kind of approach, because it is too complex and too diversified.
Each position has to be analyzed, and the system for organizing the work really has to be established based on that analysis. That is why we are working with our union partners. We are making sure that we hold broad consultations. In the public service, human resources are actively working on it.
One of the five major principles that we have adopted as broad parameters is obviously excellence, so that we continue to offer the services that are expected, and to offer them consistently. When things are not the same, but are consistent, it works.
The other principles are flexibility, transparency, and equity. We have learned lessons from the pandemic.
Regarding employment equity, we always base our decisions on gender-based analysis, diversity and inclusion.
My question is about the Phoenix system, given that some people in my riding are still being affected by these problems. People in Vancouver and some towns in Quebec have been writing to me about this.
We have been dealing with the Phoenix system for six years. The number of cases with arrears owing has grown to 141,000. During the pandemic, we were constantly being told that in the current month, 400,000 actions had been taken in cases. That told us absolutely nothing, however, about how many cases had been resolved.
The department has also negotiated to get compensation agreements signed, but are there still people to be compensated?
For the 141,000 cases in the Phoenix system in which there are arrears, what can people expect, in concrete terms?
Some people are waiting for $756, but others are waiting for $40,000. After six years, this makes no sense. I would not wish this on anyone.
:
I'll answer for you. The answer is no. The departments do it, not the Treasury Board.
I would submit that it was a political decision to interfere with the release of the public documents. It gets back to my question about accountability and transparency, where you have...well, you just told me. The government has interfered with the release of these completed documents. I think the call letter, originally, said to release them before the minister was appointed, so I find it difficult to understand why, before the minister was even appointed, they were not released.
The Parliamentary Budget Officer, in the supplementary report, stated that it's difficult for parliamentarians to vote and do their job when this information is not released. I'm looking for a commitment from the department to be accountable to Parliament, to be transparent to taxpayers and to allow us to do our job, which I would say your department has perhaps interfered with.
I quote the Parliamentary Budget Officer: “I am recommending that Parliament consider legislative amendments to require tabling of the Government's financial statements no later than September 30”.
Do you believe it's possible to have legislation? Is it doable, from your point of view? Can we have these documents mandated to be released by September 30—the public accounts and the DRRs?
:
Thank you, Mr. Jowhari.
With that, I would like to thank the officials for being here not only in person, but also onscreen. It's a bit of a challenge to know who is supposed to answer the question when we have so many of them and we can't see each other.
I appreciate you all being here today, and I look forward to the day when we're all able to be here together again. Again, thank you very much for attending.
With that, the public portion of our meeting is now complete. We will now proceed to the in camera portion. When I suspend this meeting, the technical staff will end this part of the meeting in Zoom, which means that members cannot remain logged in. To access the in camera portion of the meeting, members will need to use the passcode and the link that was sent to them by clerk.
We will temporarily suspend.
[Proceedings continue in camera]