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Urgent decisions and pressure issues

[ * ] An asterisk appears where sensitive information has been removed in accordance with the Access to Information Act and Privacy Act.

This book provides an overview of urgent decisions and pressure issues. [ * ] Pressure issues are where the government could need to consider making a decision.

Urgent decisions

Decision to hold a First Ministers’ Meeting

Summary

Issue
Decision required

Background

First Ministers’ Meetings are one of the ways to engage with provinces and territories on areas of collaboration and priorities. Relationships can also been managed effectively through bilateral and multilateral (e.g. regional) engagement. Throughout the years, Prime Ministers have used First Ministers’ Meetings in different ways.

Prime Ministers Mulroney, Martin, and Pierre Trudeau tended to favour large, high profile First Ministers’ Meetings to negotiate agreements. Prime Minister Chrétien, by contrast, preferred more business-like meetings to bring closure to issues that had already undergone extensive intergovernmental work at the officials-level. Prime Minister Harper had a strong preference for fewer and more low-key, private meetings, which tended to focus on consultations with premiers on broad issues.

During your first mandate you chaired five First Ministers’ Meetings between 2015 and December 2018, respecting your government’s 2015 electoral commitment to host annual First Ministers’ Meetings. These First Ministers’ Meetings sought federal-provincial-territorial agreement, such as for the adoption of the Pan-Canadian Framework on Clean Growth and Climate Change and for consultations/information sharing and discussions on horizontal issues. You chaired the recent First Ministers’ Meeting in Montreal in December 2018, which covered issues such as trade diversification and internal trade, clean growth and jobs, environment and energy. [ * ]

For the last three First Ministers’ Meetings, you included national Indigenous leaders [ * ]. A distinct meeting of First Ministers and leaders of the three National Indigenous Organizations (the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council) on the margins of the First Ministers’ Meeting has been employed since 2016. [ * ]

Current status

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PCO comment

A First Ministers’ Meeting represents an opportunity to demonstrate the Government’s leadership and commitment to intergovernmental collaboration with an agenda focused on areas of shared federal-provincial-territorial priority.

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Next steps

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International travel

Summary

Issue
Decision required

Background

A calendar of international meetings to the end of January 2020 is attached.

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APEC leaders meeting: APEC will hold its annual Leaders Meeting from November 16-17, 2019, in Santiago, Chile. Canada is a founding member of APEC and has been represented by the Prime Minister at every Leader’s Meeting to date. APEC is primarily an economic body with membership from across the Pacific Rim, including economies from East Asia, Southeast Asia, Oceania, Latin America and North America. [ * ]

COP25:  The 2019 United Nations Climate Change Conference, also known as COP25, will be held in Santiago, Chile between December 2-13, 2019, [ * ].

NATO leaders meeting: NATO will hold a Leaders’ Meeting on December 3-4, 2019, in London, United Kingdom. Canada is a founding member of NATO and has with rare exception (e.g., 2004 election campaign) been represented by the Prime Minister. The main purpose of this meeting will be to review progress since the 2018 NATO Summit and mark the 70th anniversary of NATO. [ * ]

World economic forum: The World Economic Forum Annual Meeting will be held from January 21-24, 2020, in Davos, Switzerland. It is an excellent opportunity to engage with business, political and academic leaders. This year’s featured issues include climate and environmental challenges; industrial transformation through sustainable and inclusive business models; governance of the technologies driving the fourth industrial revolution; and adaptation to demographic, social and technological trends in education, employment and entrepreneurship.

African Union Summit: The 33rd African Union Summit will take place in Ethiopia from January 30-31, 2020, under the Chairmanship of South African President Cyril Ramaphosa. [ * ] The purpose of the African Union Summit is to discuss key global and continental issues, including peace and security, trade, investment and economic growth, climate change and development. [ * ]

Current status

While it is recognized that the proximity of the event to the October 21, 2019 election [ * ].

Preparations for the APEC Leaders Meeting and the NATO Leaders Meeting are proceeding normally. Briefings on the substance of the meetings will be arranged as required.

PCO comment

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Next steps

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Annex

International Travel Calendar

Prime Ministerial Travel Opportunities:

Other Official Travel:

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Summary

Issue
Decision required

Background

On June 23, 2016, 52 per cent of UK voters supported the withdrawal of the UK from the EU. In response to the majority vote, the UK government invoked Article 50 of the Treaty on EU, initiating a two-year process, which was due to conclude with the UK withdrawing on March 29, 2019.

Then Prime Minister Theresa May managed to negotiate with the EU a Withdrawal Agreement (binding) and a Declaration of Future Relations (non-binding) with the EU, but it did not receive UK Parliament support. As a result, the UK has had to ask for two extensions requests. The current deadline for a new deal is October 31, 2019.

The new PM, Boris Johnson, has not ruled out any potential scenarios, but has remained adamant that the UK will leave the EU by the deadline, even without a deal.

To prevent a no-deal exit, on September 3, 2019, the UK House of Commons voted in favour of Members of Parliament taking control of Commons business. This resulted in the drafting of a Bill, which received Royal Assent on September 9, 2019, that requires the government to seek an extension to the Brexit deadline if an agreement could not be reached during the EU Council meeting. [ * ]

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Current status

The CETA was signed on October 30, 2016, and received Royal Assent on May 16, 2017. Although it has not yet been ratified by all EU member states, the provisional application of CETA started on September 21, 2017, eliminating 98 per cent of EU tariff lines for Canadian goods.

On March 13, 2019, the UK announced a Most Favoured Nation tariff schedule for all WTO members on 95 per cent of applied tariff lines for the first 12 months: [ * ]

Note that, while information is current and accurate at the time of writing, significant changes may be occurring or have occurred in some areas by the time of reading. PCO will provide further updates as information becomes available.

PCO comment

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Next steps

Ratification of the Canada-U.S.-Mexico agreement (CUSMA)

Summary

Issue
Decision required

Background

Canada, along with the United States and Mexico, signed the Agreement and associated side instruments, on November 30, 2018, in Buenos Aires, Argentina. Following signature of the Agreement, all three Parties signed the associated Environmental Cooperation Agreement.

The Agreement will replace the North American Free Trade Agreement (NAFTA) and provide a new framework for North American trade and investment. [ * ]

Until all three countries ratify the new Agreement, the current NAFTA remains in place.

Mexico still needs to complete its ratification process. While approval by Mexico’s Senate was achieved on June 19, 2019, the final step remains outstanding: the publication of a Presidential decree in the Official Gazette, which enables the President and Secretary of Foreign Affairs to sign the treaty ratification instrument.

In the U.S., implementing legislation still needs to be introduced. Congress has a maximum of 90 legislative days (60 days in the House and 30 days in the Senate) under trade promotion authority to consider the implementing bill - without the possibility of amendment. Of note, the processes in the House and the Senate can be run concurrently to expedite the process. For example, after the addition of side agreements on labour and environment, Congress passed NAFTA implementing legislation in 19 calendar days.

[ * ]

Current status

The current dynamic in the U.S. has seen House Democrats vocal about certain elements of the Agreement and threatening to block it in Congress. Concerns have mainly centered on enforcement and, specific to dispute settlement, the issue of panel blocking (see Annex B). [ * ] Democrats would also like to see additional worker and environmental protections, as well as increased access to affordable medicines. To address these concerns, the U.S. Administration agreed to a working group, led by United States Trade Representative Robert Lighthizer. [ * ]

PCO comment

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Next steps

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Appointment of the Auditor General

Summary

Issue
Decision required

Background

The Auditor General is an independent Agent of Parliament appointed by the Governor in Council (GIC) after consultation – required under the Auditor General Act – with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and the House of Commons. The Auditor General holds office during good behaviour for a term of ten years. The Language Skills Act requires that the Auditor General be able to speak and understand clearly in both Official Languages at the time of appointment.

Section 4 of the Auditor General Act provides that, in the absence or incapacity of the Auditor General or if the office is vacant, the Governor in Council may appoint any qualified auditor to hold office in the interim for a term not exceeding six months. Following the passing of the former Auditor General, Michael Ferguson, Sylvain Ricard was appointed interim Auditor General on March 28, 2019, for a term of six months. Mr. Ricard was serving as a Deputy Auditor General prior to his interim appointment. At the same time, a Notice of Appointment Opportunity for the position was posted on the Governor in Council Appointments website, with a note that it would be taken down during the writ period to respect the Caretaker Convention. The Notice of Appointment Opportunity was taken down from the website on September 11, 2019.

The Office of the Auditor General (OAG) falls within the Finance Canada portfolio. While the appointment of the Auditor General is made by the Governor in Council on the recommendation of the Prime Minister, the Minister of Finance is responsible for recommending a candidate to the Prime Minister. [ * ]

Current status

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PCO comment

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Next steps

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National Security and Intelligence Committee of Parliamentarians

Summary

Issue
Decision required

Background

The National Security and Intelligence Committee of Parliamentarians (the Committee) was established on November 6, 2017 and represents a critical element of the Government of Canada’s new review architecture to ensure greater accountability and transparency on issues related to national security.

The Committee has a broad mandate to review the legislative, regulatory, policy, administrative, and financial framework for national security and intelligence; any activity carried out by a department that relates to national security or intelligence unless the activity is an ongoing operation and the appropriate minister determines that the review would be injurious to national security; and, any matter relating to national security or intelligence that a minister of the Crown refers to the Committee.

The Governor in Council, on your recommendation, appoints the Chair and up to ten other members of the Committee, which may consist of no more than eight members from the House of Commons and no more than three members from the Senate. No more than five members from the House of Commons may be members of the government party. Members’ terms end once Parliament is dissolved.

After a general election, members of the Committee must be appointed within 60 calendar days after the day the new Parliament is summoned to sit. Under the Act, you are required to consult with the leadership in the House of Commons and the Senate for appointments of Members of Parliament and Senators to the Committee.

The Committee is supported by a permanent secretariat, which is led by a deputy head-level Executive who is appointed by way of a Governor in Council appointment to serve at your pleasure for a term of up to five years. The term of the current Executive Director, Rennie Marcoux, expires December 10, 2022.

The Privy Council Office (PCO) plays a coordinating role for departments and agencies of the Government of Canada in its engagement with the Committee and its permanent Secretariat.

The 2019 Annual Report reviewed Diversity and Inclusion in the Security and Intelligence Community; the Government’s Response to Foreign Interference; and the Canada Border Services Agency’s national security and intelligence activities. In addition, the Committee developed a Special Report examining the collection, use, retention and dissemination of information on Canadians in the context of the Department of National Defence/Canadian Armed Forces defence intelligence activities.

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Current status

Appointment of new members

The dissolution of Parliament on September 11, 2019, ended the terms of the Committee’s membership.

When the new Parliament begins sitting, you will have to appoint Committee members within 60 calendar days. The time needed for consultations required under the Act before appointments can be made to the Committee will need to be taken into consideration.

Tabling of 2019 Annual Report

The 2019 Annual Report was submitted by the Committee to the Prime Minister on August 30, 2019.

Pursuant to the National Security and Intelligence Committee of Parliamentarians Act, you may direct the Committee to submit a revised version of the report that does not contain information the disclosure of which would be injurious to national security, national defence, or international relations, or is information that is protected by litigation privilege or by solicitor‑client privilege or professional secrecy. Accordingly, implicated departments have begun reviewing the reports to redact any potentially injurious information from public disclosure.

When Parliament resumes, you will have 30 sitting days to table the Annual Report in both Houses.

Next steps

Defence and Marine Procurement: Selecting a Third Shipyard under the National Shipbuilding Strategy

Summary

Issue
Decision required

[ * ]

Background

On May 22, 2019, the Government announced the initiation of a Canadian Coast Guard fleet renewal, with up to 18 new ships to be built in Canadian shipyards under the National Shipbuilding Strategy. Because full renewal of the Canadian Coast Guard fleet is expected to keep the two shipyards already designated under the Strategy working at capacity, the Government also committed to launching a competitive process to identify a third Canadian shipyard as a partner under the Strategy.

[ * ]

On August 2, 2019, Public Services and Procurement Canada (PSPC) issued an Invitation to Qualify as a third shipyard under the National Shipbuilding Strategy, to build six Program Icebreakers for the Canadian Coast Guard. The deadline for responding to the Invitation to Qualify, initially set as August 19, 2019, was extended to August 30, 2019, at the request of Heddle Marine from Hamilton, Ontario. As well, a revision was made to correct a material error in the specifications set out in the Invitation to Qualify.

On August 20, 2019, the Canadian International Trade Tribunal decided to conduct an inquiry into a complaint received from Heddle Marine regarding the Invitation to Qualify. Heddle Marine’s complaint alleged that PSPC breached its duty to conduct a fair competition to identify a third shipyard under the National Shipbuilding Strategy by structuring the solicitation to predetermine and/or unduly favour one bidder and to exclude other bidders, and by engaging in closed consultations with one bidder. On September 17, 2019, Heddle Marine withdrew the complaint, and on September 24, 2019, the Tribunal issued an order formally ending its inquiry.

Current status

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PCO comment

Post-election, the Government will be expected to make an early decision on whether to proceed with the competitive process to identify a third shipyard under the National Shipbuilding Strategy, or to revisit this approach.

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Next steps

Export of light armoured vehicles to the Kingdom of Saudi Arabia

Summary

Issue
Decision required

[ * ]

Background

In February 2014, the Canadian Commercial Corporation, a federal consolidated entity, signed a US$13.4 billion contract with the Kingdom of Saudi Arabia for the sale of over 900 Light Armoured Vehicles. The Canadian Commercial Corporation has a corresponding supply contract with General Dynamics Land Systems Canada, based in London, Ontario. The Canadian Commercial Corporation’s performance of the contract with the Kingdom of Saudi Arabia is guaranteed by the Government of Canada. General Dynamics Land Systems Canada’s performance under the contract with the Canadian Commercial Corporation is guaranteed by General Dynamics – United States.

A 20 per cent reduction in the contract was negotiated in 2016-17, bringing the total number of vehicles to be produced down to 777 at a total cost of US$10.7 billion. The Minister of Foreign Affairs issued the initial permits for Light Armoured Vehicle exports in April 2016.

[ * ]

[ * ] the Minister of Foreign Affairs announced that Global Affairs Canada would conduct a review of arms exports to the Kingdom of Saudi Arabia and that there would be an effective moratorium on the issuance of new permits pending the completion of this review. [ * ]

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Current status

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PCO comment

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Next steps

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Immigration levels plan

Summary

Issue
Decision required

Background

The Immigration Levels Plan establishes the number of permanent resident admissions across four immigration categories—economic, family, refugee and humanitarian programs. Generally, the economic category accounts for over 50 per cent of total admissions.

In 2017, the Government tabled its first multi-year immigration plan in 15 years, which set out admission targets for 2018 to 2020. The 2019-2021 plan tabled in 2018 included adjustments to the 2018-2020 plan and committed to increasing admissions to 350,000 by 2021—equal to approximately 1 per cent of Canada’s population:

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Current status

Consultations with provinces and territories are also required under the Immigration and Refugee Protection Act.  This process is governed by a joint federal-provincial-territorial (FPT) framework. [ * ]

PCO comment

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While the current multi-year levels plan provides a notional target for 2020, [ * ]

Next steps

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Investment Canada Act National Security Review Case: [ * ]

Summary

Issue
Decision required

Background

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Current status

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PCO comment

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Next steps

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World Bank’s International Development Association (IDA19) Replenishment

Summary

Issue
Decision required

[ * ]

Background

The International Development Association is the concessional window of the World Bank Group and is the largest multilateral source of concessional loans and grant funding for the world’s poorest countries.

Given that the International Development Association provides about half of its support on grant or grant-equivalent terms, it relies on financial contributions from donors to fund its activities.

The International Development Association donors meet every three years to replenish the organization’s capital base and review its policy framework. Decision making regarding Canada’s contributions to the International Development Association are made by the Minister of Finance, based on Finance Canada’s assessment of the International Development Association’s past activities and performance and of its future plans. These decisions will also be made in consultation with Global Affairs Canada with respect to Canada’s international assistance priorities and as the department responsible for co-managing the International Assistance Envelope with the Department of Finance.

Negotiations for the 19th replenishment were launched in November 2018 and are scheduled to end in December 2019 at a pledging session to be held in Stockholm, Sweden. Canada has played a leading role in the 19th replenishment process negotiations for the past year, advocating for stronger debt transparency and sustainability in borrowing countries, increased focus on fragile and small island states, and ambitious gender equality targets.

Since 1960, Canada has provided US$12 billion to the International Development Association. Canada’s current annual funding for the 18th replenishment process of $441.6 million is earmarked in the International Assistance Envelope on an on-going basis [ * ]

With contributions from Canada and other donors, the International Development Association has provided $20 billion in grant and loan operations annually on average over 2015-2018 in order to support development results in infrastructure, social protection, and other sectors in the poorest countries1. For instance, the International Development Association connected 44 million people with new or improved electricity services over the same period.

Current status

The next 19th replenishment negotiations will be held on the margins of the World Bank Group Annual Meetings on October 21-22, 2019, in Washington.

Canada will be represented by its International Development Association deputy, a Finance Canada official.

[ * ]

PCO comment

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Next steps

International Maritime Organization proposal to ban heavy fuel oil in the Arctic

Summary

Issue
Decision required

Background

The International Maritime Organization is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. Its main role is to create a regulatory framework for the shipping industry that is fair and effective, universally adopted and universally implemented. The promotion of sustainable shipping and sustainable maritime development is one of the major priorities of organization in the coming years.

In April 2018, a proposal to ban heavy fuel oils for use and carriage for use as fuel in the Arctic was submitted to the International Maritime Organization. Countries such as Canada have advocated for the time to conduct an impact assessment on the proposed ban prior to further discussion. As such, in February 2019, the International Maritime Organization’s Pollution Prevention and Response Subcommittee agreed on a draft methodology for conducting impact assessments of the proposed ban.

The International Maritime Organization is working to address the risk of possible fuel oil spills by ships that use or carry heavy fuel oil in Arctic waters, given that the release of these substances poses a threat to the marine environment, Arctic communities, industries and economies. There is currently a ban on heavy fuel oil in Antarctic waters, justified on much the same scientific basis as the current proposal. While shipping traffic is on the rise in the region, spill response capacity is limited. In addition, heavy fuel oil is a persistent substance, in particular at lower temperatures, thus presenting a unique threat in the Arctic marine environment. Scientists also argue that the black carbon emissions resulting from heavy fuel oil have a far greater impact in the North than in southern regions.

Current status

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PCO comment

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Next steps

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Implementation of new journalism tax measures

Summary

Issue
Decision required

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Background

In the Fall Economic Statement 2018 and Budget 2019, three tax measures to support news organizations were announced:

  1. a refundable labour tax credit for journalism organizations;
  2. a temporary non-refundable tax credit for subscriptions to Canadian digital news; and,
  3. access to charitable tax incentives for not-for-profit journalism.

These measures were added to the Income Tax Act as part of the Budget Implementation Act, 2019.

For advice on how to operationalize these measures, an independent panel of experts was established to help define eligibility for the tax measures and to recommend the composition and names for the membership of a second panel that would assess the eligibility of news organizations for the purpose of administering the tax measures. The independent panel released its report on July 18, 2019.

The independent panel recommended that an advisory body be established. Composed of up to five members drawn from the faculties (active or retired) of post-secondary journalism schools across Canada, the advisory body would provide advice to the Canada Revenue Agency, on request only, with respect to whether an organization meets the qualitative “journalistic” criteria set out in the Income Tax Act. The Canada Revenue Agency would make decisions in all cases on behalf of the Minister of National Revenue. An advisory body for this purpose is an option under the Income Tax Act.

To establish the advisory body, the Minister of National Revenue, in consultation with your Office, would be expected to identify appropriate candidates for appointment as members. [ * ]

Current status

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PCO comment

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Next steps

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Pressure issues

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Vaping: increase in youth usage and vaping-associated pulmonary illness outbreak

Summary

Issue
Potential pressure

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Background

Using an e-cigarette product is commonly called vaping. E-cigarettes work by heating a liquid to produce an aerosol that users then inhale into their lungs which can contain: nicotine, tetrahydrocannabinol (THC) and cannabinoid (CBD) oils, and other substances, including heavy metals or chemicals.

E-cigarette products may also be modified for uses that could increase their potential for harm. For example, some cartridges can be refilled by users, resulting in contamination. Devices usage can also be modified to result in high concentrations of substances, including THC. Unregulated vaping liquid and cartridges on the illicit market can also introduce additional unsafe chemicals and additives.

From a policy perspective, vaping has been positioned in Canada as one available vehicle to help stop smoking or to reduce tobacco intake. Given its novelty, and the nicotine concentrations in products in Canada, it may risk serving as an entry point for people who did not use tobacco to begin with, such as youth.

Increases in youth vaping

On May 23, 2018, Parliament passed the new Tobacco and Vaping Products Act (TVPA) to regulate the manufacture, sale, labelling and promotion of both tobacco and vaping products. It establishes some restrictions to prevent uptake of vaping products by youth, including prohibiting the sale of vaping products to persons under 18, restricting the promotion of vaping products and specifically restricts the promotion of vaping products with candy and dessert flavours. [ * ].

Since late 2018, Health Canada has been tracking increasing reports and evidence of a rise in youth vaping. Health Canada was informed in late 2018 of survey data (International Tobacco Control Policy Evaluation Project Youth Tobacco and Vaping Survey, David Hammond et al.,) that found an increase in vaping among Canadian 16 to 19 year olds from 8 per cent to 15 per cent from 2017-18.

[ * ]

Outbreak of vaping-associated pulmonary illness

As of October 8, 2019, 1,299 lung injury cases associated with the use of vaping products have been reported to the U.S. Centers for Disease Control and Prevention. Twenty-six deaths have been confirmed. On September 27, 2019, the Government of Canada confirmed the first case of severe pulmonary illness related to vaping in Quebec. On October 11, 2019, two further cases were identified as probable in New Brunswick.

At this time, the U.S. has not identified the cause or causes of the lung injuries in these cases. Many different substances and product sources are still under investigation. Most patients report a history of using THC containing products. The latest national and state findings suggest products containing THC, particularly those obtained off the street or from other informal sources (e.g., friends, family members, illicit dealers), are linked to most of the cases and play a major role in the outbreak. Exclusive use of nicotine containing products has been reported by some patients with lung injury cases, and many patients with lung injury report combined use of THC and nicotine containing products. The possibility that nicotine-containing products play a role in this outbreak cannot be excluded.

Of note, cannabis extracts became legal in Canada when the Regulations Amending the Cannabis Regulations (New Classes of Cannabis) came into force on October 17, 2019. It is prohibited for cannabis extracts, including cannabis vaping products, to contain anything that may cause injury to the health of the user when the cannabis product is used as intended. These products are not expected on the legal market until mid-December 2019.

Current status

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PCO comment

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Next steps

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100 Wellington: An Indigenous peoples’ space across from Parliament Hill

Summary

Issue
Potential pressure

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Background

In June 2017, the federal government announced that the former United States Embassy building at 100 Wellington Street would be converted to a dedicated space for Indigenous peoples. The building is in a prominent location, situated directly across from Parliament Hill, and is part of three city blocks being redeveloped as part of the 15-year plan to transform the Parliamentary Precinct into a single integrated campus.

Work to develop the vision for the Indigenous Peoples’ Space has been led by Crown-Indigenous Relations and Northern Affairs Canada, in partnership with the National Indigenous organizations (the Assembly of First Nations, the Métis National Council and the Inuit Tapiriit Kanatami). Public Services and Procurement Canada has led all construction work at the site as part of the broader redevelopment of the Parliamentary Precinct.

Crown-Indigenous Relations and Northern Affairs Canada and Public Services and Procurement Canada established a working group with the National Indigenous Organizations to develop a vision for the use and governance of the Indigenous Peoples' Space. Funding was provided to the National Indigenous Organizations to support their planning and consultation efforts on the project. While not a full partner in the project, engagement on the Indigenous Peoples’ Space included the Algonquin Nation as the building is located on the ancestral lands of the Algonquin, which are subject to an outstanding land claim.

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Current status

The government has committed to all stakeholders that any short-term occupancy of the Indigenous Peoples’ Space will remain on hold until an agreement regarding its governance can be reached.

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PCO comment

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Next steps

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Defence and marine procurement: future fighter aircraft capability project

Summary

Issue
Potential pressure

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Background

In 2017, under Canada’s defence policy, Strong, Secure, Engaged, the government committed to the acquisition of 88 advanced fighter aircraft to enforce Canada’s sovereignty and to meet Canada’s commitments under the North American Aerospace and Defence Command and the North Atlantic Treaty Organization.

Canada’s existing fleet of CF-18 aircraft is more than 30 years old. Efforts to extend the service life of the fleet until 2032 are under way, and Canada has purchased legacy F-18 jets from Australia to bolster the existing fleet.

The Government of Canada announced in December 2017 that it would launch an open and transparent competition to replace Canada’s fighter aircraft fleet.

[ * ]

Under Canada’s Industrial and Technological Benefits policy, companies awarded defence procurement contracts over $100 million are required to undertake business activity in Canada that is equal to the value of the contract.

The value proposition – the bidder’s economic proposal to Canada – includes mandatory and rated elements that are considered as part of the evaluation process that informs contractor selection.

Since 1997, Canada has participated in the Joint Strike Fighter Program, a U.S.-led multinational cooperative effort to build an advanced combat aircraft. Under the Program, Canadian industry has the opportunity to compete for billions of dollars in contracts associated with building and maintaining the F-35s. Canada and other partners in the consortium are also allowed to buy the F-35s at a lower price than non-partners, who must pay a variety of fees and other costs under the Foreign Military Sales Program.

[ * ]

Current status

The final Request for Proposals was released on July 23, 2019.

[ * ]

On August 30, 2019, Airbus confirmed that it was withdrawing from the competition, citing concerns about the difficulties it would encounter in attempting to meet the security requirements, [ * ].

[ * ]

PCO comment

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Next steps

Francophone University of Ontario

Summary

Issue
Potential pressure

[ * ]

Background

In the fall of 2018, the Ontario government announced that it was putting on hold its funding of the newly established Francophone University of Ontario, until it could re-establish budget balance.  Concerns were raised by the Franco-Ontarian community specifically and by french-language communities throughout Canada, including in Quebec, that this represented another signal that provincial governments throughout the country were taking aim at official language rights and institutions.

Following this decision, discussions took place and culminated in September 2019 in the Ontario government submitting a funding proposal to the federal government.  Following this proposal, a Memorandum of Understanding between the Minister of Official Languages and the Ontario Minister of Training, Colleges and Universities and of Francophone Affairs was signed.

[ * ]

The Francophone University of Ontario is proposing to begin to accept students for the fall 2021 university session.

Current status

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PCO comment

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Next steps

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Legacy IT Systems

Summary

Issue

[ * ]

Background

The quality of the government’s digital services has been declining relative to comparable nations. Canada has slipped from 3rd in 2010 to 23rd in 2018 on the UN’s E-Government Development Index. [ * ]

Current status

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PCO comment

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Next steps

Collective bargaining issues

Summary

Issue
Potential pressure

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Background

Current mandate

Treasury Board Secretariat, as the employer for the public service, has reached thirty-four agreements with groups representing approximately 66,000 employees, or just over 27 per cent of the represented population in the core public administration and separate agencies. These tentative agreements have included the same general terms: economic increases of 2.0 per cent for each of the first two years, and 1.5 per cent for each of the remaining two years; group-specific wage adjustments; simplified implementation modalities; and, provisions for a new caregiver leave and an extended parental leave period.

Among the bargaining agents yet to reach agreement is the Public Service Alliance of Canada, which represents approximately 105,000 employees or around 54 per cent of the represented population in the core public administration. The most recent discussions with the Public Service Alliance of Canada stopped on September 6, 2019, with a gap remaining between the two parties’ positions. [ * ]

The Public Service Alliance of Canada has declared an impasse for the second time in the current round of collective bargaining. The Federal Public Sector Labour Relations and Employment Board has set dates for Public Interest Commission hearings in December 2019 and January 2020 for the four Public Service Alliance of Canada tables.

A Public Interest Commission is a non-permanent body, consisting of one or three persons appointed by the Treasury Board President, whose role is to assist the parties to resolve disputes and to make recommendations for a settlement. During the Public Interest Commission process, parties are able to continue negotiating and could reach a settlement at any time. A Public Interest Commission chairperson must provide a recommendation to both parties within thirty days of the hearings unless both parties agree to a different timeline. Seven days after the recommendation is issued, the Public Service Alliance of Canada would be in a position to strike provided their members have voted to strike.

The Program Administration group will have Public Interest Commission hearings from December 4-7, 2019. Should the chairperson release his report thirty days following the hearings and a strike vote is held, the earliest the Program Administration group could strike would be mid-January 2020. [ * ]

Phoenix damages

On May 3, 2019, members of the joint union/management committee on Phoenix damages reached a tentative agreement covering more than 146,000 current and former employees who may have been affected by the Phoenix pay system. The agreement included a one-time provision of up to five days of additional annual leave for employees and a cash pay-out equivalent to this leave for former employees or the estates of deceased employees. All federal bargaining agents have now formally ratified the tentative agreement, with the exception of the Public Service Alliance of Canada.

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Executive, Governor in Council and non-represented compensation

A decision will be required on extending similar economic increases and wage adjustments to executives, Governor in Council appointees and other non-represented employees as those included in the agreements reached to date with other represented employees.

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Royal Canadian Mounted Police collective bargaining

In June 2017, Bill C-7, An Act to amend the Public Service Labour Relations Act, the Public Service Labour Relations and Employment Board Act and other Acts and to provide for certain other measures, received Royal Assent. This legislation created a new labour relations regime for members of the RCMP. More specifically, it provided for the creation of a single, national bargaining unit composed of RCMP members appointed to a rank and reservists.

On July 15, 2019, the National Police Federation served notice to bargain for RCMP members and reservists. This will be the first collective agreement for RCMP officers. Negotiations are expected to commence in early 2020.

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PCO comment

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Next steps

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Defence procurement: strategic transportation for the Government of Canada and the Canadian Armed Forces

Summary

Issue
Potential pressure

Background

The Challenger fleet operated by the Canadian Armed Forces delivers on two important mandates: the provision of secure and controlled flight service for the Prime Minister, Governor General and Cabinet ministers, and the transportation of people and equipment into and out of military theatres of operations.

Current status

The Challenger fleet is comprised of four aircraft that were acquired from Bombardier in 1985 and 2002. The fleet was decreased from six aircraft to four in 2014 in order to redirect funds to other operational needs. One aircraft was removed from service from January to November 2018 to allow for landing gear inspections, reducing the fleet to three aircraft for almost a year. The other three aircraft will also require these inspections, constraining the capacity of the fleet.

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Strategic Transportation for the Government and Canadian Armed forces is also supported by the Polaris fleet, which is comprised of five Airbus A310 aircraft that were acquired on the secondary market in 1992. Three Polaris aircraft are used to transport larger Government of Canada delegations and for long distance travel. The Canadian Armed Forces uses the other two aircraft for air-to-air refueling, to transport large groups of Armed Forces personnel and equipment, and for aeromedical evacuations.

PCO comment

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