Parliamentary Committee Appearance Binder for Jean-Yves Duclos, President of the Treasury Board before the Standing Committee on National Finance on December 1, 2020 for the Main Estimates and Supplementary Estimates (B) 2020-2021

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Opening statement and presentation

1. Opening statement

Speech for the Honourable Jean-Yves Duclos, President of the Treasury Board to the Senate Standing Committee on National Finance (NFFN), 2020–21 Main Estimates and 2021, Supplementary Estimates (B), Ottawa, December 1, 2020

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Introduction

Thank you, Mr. Chair.

I would like to thank the committee for inviting me here today to discuss the recently tabled Supplementary Estimates (B), and the 2020–21 Main Estimates.

With me today is… [TBD]

Mr. Chair, Canadians and the parliamentarians who represent them have the right to know how public funds are spent, and to hold the government to account.

This principle underpins our management of the government’s expenditures.

Supplementary Estimates (B)

The 2020–21 Supplementary Estimates (B) present information on spending requirements that were either not sufficiently developed in time for inclusion in the Main Estimates or have subsequently been refined to account for developments in certain programs and services.

As was the case with the Supplementary Estimates (A), the Supplementary Estimates (B) continue to report on spending authorized through COVID-19 Emergency Response Acts, providing transparency and accountability in the use of public funds to deliver programs and services to Canadians.

Mr. Chair, as one can imagine, most of the spending planned in these Estimates is for the government’s response to the public health, social and economic impacts on Canadians from the global pandemic.

They present a total of $79.2 billion in budgetary spending, including $20.9 billion to be voted on by Parliament and $58.3 billion in forecast statutory expenditures.

Of these amounts, roughly $15 billion (74%) of the voted requirements and $57 billion (96%) of the additional statutory forecasts are for the government’s emergency and economic responses to COVID-19.

Mr. Chair, if I can provide a few examples, the voted spending in these Estimates for emergency and economic responses to COVID-19 includes:

  • $5.4 billion for medical research and vaccine development
  • $2.2 billion for purchases of personal protective gear, medical equipment and supplies
  • $2.4 billion in support for small and medium-sized businesses, salary top-ups for essential workers, and funding for provinces and territories to safely restart their economies and bring students back to school

In addition, my department, The Treasury Board Secretariat, will receive $585 million for Public Service Insurance plans and programs.

Main Estimates

Mr. Chair, I would also like to speak briefly about the 2020–21 Main Estimates.

The 2020–21 Main Estimates were originally tabled in the House of Commons last February. They were re-tabled on September 30 to allow for their continued study in this new parliamentary session.

These Main Estimates provide a detailed view of a total of $125.1 billion in budgetary voted expenditures and $87.2 million in non-budgetary voted expenditures.

I would note for the Committee that the level of voted budgetary spending is about half a billion dollars lower than what was presented in the 2019–20 Main Estimates.

These Main Estimates also include information on $179.5 billion of statutory budgetary spending and $3.0 billion of statutory non-budgetary spending.

The latter, as detailed in the documents, includes items such as loans, investments and advances.

Members of the Committee will note in their study of the Main Estimates that the government’s spending plan is closely aligned with the priorities expressed by Canadians.

The planned expenditures also include $750 million for Treasury Board Vote 5 related to government contingencies, which provide for miscellaneous, urgent, or unforeseen expenditures that are not otherwise provided for in the authorities approved through departmental votes.

Conclusion

Mr. Chair, our government has a responsibility to ensure Canadians have the support they need during the COVID-19 pandemic, and to promote economic recovery and prosperity going forward.

We do this by investing in critical health care and supporting the safe restart of our economy. Our spending plans will help Canada thrive and succeed.

I thank you again for the invitation to appear before you today.

We would now be pleased to take questions from the Committee.

2. Master overview of the committee

Standing Senate Committee on National Finance (NFFN)

Mandate of the committee

The Standing Senate Committee on National Finance has the mandate to examine matters relating to federal estimates generally, including the public accounts and reports of the Auditor General; as well as government finance. In addition, the committee has investigated other topics of interest and importance to the country.

As is customary, much of the committee’s attention is focused on the estimates which outline the government’s expenditure plans. In addition to the review of estimates, the committee has legislation referred to it from time to time. The bills referred to the committee are related to government spending or implementation of measures announced in the government’s budget speech. The special studies are also usually related to issues concerning government spending and the estimates.

History of the committee

The Standing Senate Committee on National Finance was first created in May 1919 as the Committee on Finance, and, in 1968, it was renamed the Committee on National Finance. From the beginning, the committee’s field of interest has been government spending, either directly through the estimates or indirectly through bills that provide borrowing authority or bear upon the spending proposals identified in the estimates. The committee also has a mandate to examine the reports of the Auditor General.

Committee members
Chair
Deputy-Chairs
Other members

TBS-related activity: 43rd Parliament, 2nd Session

November 25, 2020: Main Estimates 2020–21 and Supplementary Estimates (B) 2020–21
  • Witness list includes
    • Public Services and Procurement Canada
    • Department of Finance
    • Public Health Agency of Canada
    • Health Canada
    • Indigenous Services Canada
    • Employment and Social Development Canada
  • Details of meeting
    • Pending

TBS-related activity: 43rd Parliament, 1st Session

June 22, 2020: Supplementary Estimates (A) 2020–21
  • Consideration of draft report (in camera)
  • Details of meeting
    • Not available
June 18, 2020: Supplementary Estimates (A) 2020–21
  • Witness list
    • Public Health Agency of Canada
    • Public Services and Procurement Canada (PSPC)
    • Department of National Defence and the Canadian Armed Forces
    • Canadian Air Transport Security Authority
    • Indigenous Services Canada
    • Innovation, Science and Economic Development Canada
  • TBS-related details
    • In their opening statement, PSPC outlined details of their $203.5 million for continued efforts to stabilize the Phoenix pay system, a critical priority of the government.
    • Seen significant declines in the backlog of pay issues over past months despite the complexities of working in these challenging times. Since January 2018 the backlog of transactions has decreased by 64%.
    • During the pandemic alone over April and May we were able to reduce the queue by about 29,000 transactions, all while continuing to administer pay for the close to 300,00 public servants across the country. This is a testament to the dedication of our hard-working compensation employees.
    • The funds we are seeking through Supplementary Estimates (A) will allow us to sustain employee capacity, increase our processing rate and increase the automation of as many transactions as possible through system enhancements. These funding requests touch on two major priorities and are critical to the work being done on both of these files.
    • During Q&A, Senator Harder (PSG, Ontario) asked for assurance that this would be the last Supplementary Estimate line for Phoenix. PSPC let him know that there would likely be others, and that as we move forward, it’s not clear when the end would be in sight. However, what we are doing and what we are very grateful to be seeing now is quite a tremendous stabilization. In fact now, as you heard in those metrics, we are starting to see the decline of the backlog. The replacement is being led by the Treasury Board of Canada Secretariat. That would be a question they would be well placed to respond to.
May 26, 2020: COVID-19 response
  • Witness list
    • Parliamentary Budget Officer
  • TBS-related details
    • In his opening remarks, Mr. Giroux discussed the PBO’s recent analysis on the impact of the COVID-19 pandemic and oil price shocks.
    • He discussed the increase in Canada’s overall deficit and the cost of the various government announcements, this number will continue to increase with government announcements.
    • The economic scenario assumes real GDP in Canada to decline by 12% in 2020.
    • Mr. Giroux expressed concern about the current economic measures and stressed that these current measures must remain temporary and cannot become permanent.
    • He also expressed concern to Senators about the powers the Minister of Finance and the Minister of Economic and Social Development now have due to recent pieces of legislation that have been passed, limiting parliamentary oversight.
    • The conversation focused on the upcoming sustainability reports (to be provided June 2020) and what the country is potentially facing in terms of GDP ratios, debt and consequences for taxpayers.
    • Mr. Giroux has encouraged the government to provide a Fiscal Update, so all Canadians are fully aware of the current financial situation in the country.
    • Senators were also interested in Mr. Giroux’s opinion on a Federal Guaranteed Basic Income program and whether this would have lessened the need for some of the government programs and how much this type of program would cost the government.
March 11, 2020 (2:30 pm): Supplementary Estimates (B) 2019–20
  • Witness list
    • Federation of Canadian Municipalities
    • Canadian Federation of Students
    • Natural Resources Canada
  • TBS-related details
    • None reported
March 11, 2020 (11:30 am): Supplementary Estimates (B) 2019–20
  • Witness list
    • Public Health Agency of Canada
    • Federal Economic Development Agency for Southern Ontario
    • Atlantic Canada Opportunities Agency
    • Canada Economic Development for Quebec Agency
    • Innovation, Science and Economic Development Canada
    • Western Economic Diversification Canada
    • Employment and Social Development Canada
  • TBS-related details
    • None reported
March 10, 2020 (2 pm): Supplementary Estimates (B) 2019–20
  • Witness list
    • Crown-Indigenous Relations and Northern Affairs Canada
    • RCMP
    • Indigenous Services Canada
    • Department of National Defence and the Canadian Armed Forces
    • Infrastructure Canada
  • TBS-related details
    • None reported
March 10, 2020 (8:30 am): Supplementary Estimates (B) 2019–20 (TBS appearance)
  • Witness list
    • Karen Cahill, Assistant Secretary and Chief Financial Officer (Treasury Board of Canada Secretariat)
    • Glenn Purves, Assistant Secretary, Expenditure Management Sector (Treasury Board of Canada Secretariat)
    • Marcia Santiago, Executive Director, Expenditure Strategies and Estimates (Treasury Board of Canada Secretariat)
    • Office of the Parliamentary Budget Officer
  • TBD-related details
    • The Committee met to begin its study on the Supplementary Estimates (B) 2019–20.
    • TBS officials were the first witnesses to appear on the study.
    • Mr. Purves outlined the current estimates process to the Senators and explained the timing of the appropriation bills and the meaning of them.
    • He also highlighted some of the key priorities in the Supplementary Estimates, such as supporting various National Defence initiatives, climate change initiatives, and efforts towards Indigenous relations and Indigenous services.
    • Senators were concerned about the return of the old timing of the Estimates and questioned whether the 2-year pilot project of the 42nd Parliament would return. Senators were also concerned that due to there being a matter of weeks left in the fiscal year that there was a potential for the money requested being spent before Parliament’s approval.
    • The Parliamentary Budget Officer, Mr. Yves Giroux, appeared for the second hour of the study on Supplementary Estimates (B) 2019–20.
    • He gave an overview of the estimates, focusing on process, and his latest report.
    • He noted that the Departmental Results Reports were not tabled before the Supplementary Estimates (B), it was probably a coincidence they were tabled the day he tabled his report.
    • The Main Estimates 2020–21 PBO Report is expected to be tabled in the coming days.
    • Senators expressed concerns regarding the information provided in the Departmental Results Reports, the timing of the supply cycle, and CRA write-offs.
December 11, 2019: Supplementary Estimates (A) 2019–20
  • Consideration of a draft report
  • Details of meeting:
    • Not available
December 9, 2019 (3:30 pm): Supplementary Estimates (A) 2019–20 (Shared Services appearance)
  • Witness list
    • Denis Bombardier, Senior Assistant Deputy Minister, Chief Financial Officer (Shared Services Canada)
    • Dinesh Mohan, Director General, Cloud Services, Chief Technology Officer Branch (Shared Services Canada)
    • Louis-Paul Normand, Senior Assistant Deputy Minister, Project Management and Delivery (Shared Services Canada)
    • Electric Mobility Canada
    • Global Affairs Canada
    • Veterans Affairs Canada
    • Canadian Heritage
  • TBS-related details
    • In his remarks, Mr. Bombardier gave an overview of SSC’s work, including major milestones.
    • He outlined the renewal with Microsoft, and the cloud brokering services that are now central to their work.
    • He gave details on SSC’s Estimates line of $197.8M for the Workload Migration Program and the Cloud Architecture Program, to support digital service delivery to Canadians.
    • Also outlined reprofiling of $38M for SSC’s IT infrastructure, and for cyber security initiatives.
    • He mentioned SSC 3.0 and its enterprise-wide approach to the new platform.
    • In Q&A, Senator Marshall (Conservative, NL) asked if the Cloud Architecture Program was multi-year, and what the future costs would be. Mr. Bombardier reported $331 million over 3 years.
    • Senator Marshall also asked how SSC decided what needed replacing, and when. Mr. Bombardier and Mr. Normand responded that the decisions are driven by the needs of the partners, and government by criteria established by TB and the OCIO.
    • Senator Forest asked about the transition to data centres, and related data security. Mr. Normand responded with the benefits of the new setup.
December 9, 2019 (1 pm): Supplementary Estimates (A) 2019–20 (TBS appearance)
  • Witness list
    • Karen Cahill, Assistant Secretary and Chief Financial Officer (Treasury Board of Canada Secretariat)
    • Glenn Purves, Assistant Secretary, Expenditure Management Sector (Treasury Board of Canada Secretariat)
    • Darryl Sprecher, Senior Director, Expenditure Strategies and Estimates (Treasury Board of Canada Secretariat)
    • Crown-Indigenous Relations and Northern Affairs Canada
    • Department of National Defence and the Canadian Armed Forces
    • Transport Canada
  • Follow-up:
    • Breakdown of costs related to the Financial and Materiel Management Solution Project.
    • Total # of claims made for Phoenix damages since 2016.
  • TBS-related details
    • Overall, the appearance went smoothly.
    • Mr. Purves began by providing Committee members with an overview of the Supplementary Estimates (A), 2019–20, and highlighted that additional information on the estimates and government spending is available online.
    • Highlighted new organization figuring in these Estimates: the Canadian Accessibility Standards Development Organization (CASDO), which is responsible for developing and revising accessibility standards for federally regulated organizations.
    • Stated that next Supplementary Estimates for the 2019–20 fiscal year are expected in February 2020, and the related appropriation bill is expected in March 2020. Given House of Commons Standing Orders have reverted to their pre-2017 form, the next fiscal year’s Main Estimates are expected before March 1, 2020.
    • Questions from Senators focused on the estimates both from a technical and substantive perspective.
    • In response to certain substantive questions, it was recommended members direct their questions to officials from the organizations in question.

Senator Percy Mockler (New Brunswick): Conservative, Chair of NFFN

Senator Percy Mockler (New Brunswick): Conservative, Chair of NFFN
  • Appointed to the Senate in December 2008.
  • Member of the Legislative Assembly of New Brunswick for many years, having first been elected in 1982.
  • Held several portfolios as a provincial MLA including Solicitor General, Minister for Human Resources Development and Housing, Minister of Family and Community Services, Minister of Transportation, and Minister of Intergovernmental and International Relations.
  • Member of the Senate Standing Committee on Official Languages, member of the Senate Standing Committee on Energy, the Environment and Natural Resources, and Parliamentary Secretary for the Parliamentary Assembly of La Francophonie (Canadian section).
Interest in TBS Portfolio
  • In the 42nd Parliament:
    • NextGen: Interested in the cost to date and the status of the project overall (including a completion date).
  • In the 43rd Parliament:
    • Phoenix: Questioned how many public servants have made claims. TBS committed to a follow-up.

Senator Éric Forest (Québec – Gulf), ISG (Independent Senators Group, Deputy-Chair of NFFN

Senator Éric Forest (Québec – Gulf), ISG (Independent Senators Group, Deputy-Chair of NFFN
  • Appointed to the Senate on November 21, 2016.
  • Was the Mayor of Rimouski from 2005 to 2016.
  • Forest entered politics at age 27, as a councillor in Pointe-au-Père, and was elected mayor two years later.
  • Has worked for the development of Eastern Quebec for over 40 years, and in 2014, he received the Jean-Paul L’Allier Award, which honours a Quebec elected official for outstanding vision, leadership and achievements in urban planning and land use planning.

Senator Marty Klyne (Saskatchewan), ISG (Independent Senators Group), Deputy-Chair of NFFN

Senator Marty Klyne (Saskatchewan), ISG (Independent Senators Group), Deputy-Chair of NFFN
  • Appointed to the Senate on September 27, 2018
  • Cree Métis from Treaty Four Territory and Homeland of the Metis Nation.
  • Past Chief Executive Officer of the RCMP Heritage Centre.
  • Has achieved a Pro.Dir™ Designation and graduated with Distinction from the University of Regina holding a degree in Business Administration, Finance Major.
  • Klyne has spent much of his time advancing Aboriginal economic development and speaking up for Indigenous interests to accelerate Indigenous participation in the mainstream economy.

Senator Peter M. Boehm (Ontario), ISG (Independent Senators Group)

Senator Peter M. Boehm (Ontario), ISG (Independent Senators Group)
  • Appointed to the Senate October 2018
  • Boehm holds a PhD in History from the University of Edinburgh, a Master of Arts in International Affairs from the Norman Paterson School of International Affairs at Carleton University and a Bachelor of Arts in English and History from Wilfrid Laurier University.
  • Deputy Minister for the G-7 Summit and Personal Representative of the Prime Minister (Sherpa) (2017–18).
  • Concurrently served as Sherpa for the G-8 and subsequent G-7 Summits, as well as the Nuclear Security Summit from 2013–2017.
  • Ambassador to Germany 2008-2012 (and other diplomatic posts).
  • Recipient of the Public Service of Canada Outstanding Achievement Award and the Canadian Foreign Service Office Award for his contribution to advancing peace in Central America.
Interest in TBS Portfolio
  • In the 42nd Parliament:
    • Phoenix: Concerned about the pay system and the timeline to correct it.

Senator Jean-Guy Dagenais (Québec – Victoria), CSG (Canadian Senators Group)

Senator Jean-Guy Dagenais (Québec – Victoria), CSG (Canadian Senators Group)
  • Appointed to the Senate on January 17, 2012.
  • Dagenais worked as a peace officer from 1972 to 2011 at the Sûreté du Québec, and was made Officer of the Order of Merit of the Police Forces, which recognizes citizens from diverse sectors who have shaped Quebec’s development or contributed to its success.
  • Ran as the Conservative candidate in the electoral district of Saint-Hyacinthe-Bagot in the 2011 general election.
Interest in TBS Portfolio
  • In the 43rd Parliament:
    • Cyber security: Concerned about decision to grant Mastercard benefits from the cyber security centre in Vancouver, given their profitability compared to small and medium-sized businesses.

Senator Marty Deacon (Ontario – Waterloo Region), ISG (Independent Senators Group)

Senator Marty Deacon (Ontario – Waterloo Region), ISG (Independent Senators Group)
  • Appointed to the Senate on February 15, 2018.
  • Deacon was an educator with a Master’s of Education from Western University, and taught (Physics, Science, Physical and Health Education) in Secondary Schools, at two Universities (University of Toronto, Western University), was a Consultant, and an Administrator at the Elementary and Secondary School level.
  • Over the past 24 years Deacon has coached, led or served at 15 Olympic, Commonwealth and Pan Am Games. Her highest international opportunity was leading Team Canada (Chef de Mission) at the 2010 Commonwealth Games in Delhi, India.
  • Deacon presently serves as Director on the Canadian Olympic Committee, Commonwealth Games Canada, Ontario Excellence Leadership Centre and the Grand River Jazz Society.
  • Was awarded The Women of Distinction and Lifetime Achievement Award (YWCA), The International Olympic Committee, Education and Youth Award, and the Queen Diamond Jubilee Medal among others.

Senator Pat Duncan (Yukon), ISG (Independent Senators Group)

Senator Pat Duncan (Yukon), ISG (Independent Senators Group)
  • Appointed to the Senate on February 19, 2019.
  • Duncan holds a Bachelor of Arts from Carleton University.
  • Former Yukon Premier, and was the first female premier of the territory from 2000 to 2002.
  • Past executive director of the Whitehorse Chamber of Commerce.
  • Received the Commemorative medal for the 125th anniversary of Confederation of Canada in 1992, and was awarded the Queen Elizabeth II Golden Jubilee Medal in 2002.

Senator Rosa Galvez (Quebec – Bedford), ISG (Independent Senators Group)

Senator Rosa Galvez (Quebec – Bedford), ISG (Independent Senators Group)
  • Appointed to the Senate on December 16, 2016.
  • Galvez is one of Canada’s leading experts in pollution control and its effect on human health, specializing in water and soil decontamination, waste management and residues, and environmental impact and risk assessment.
  • Has a Ph.D. in Environmental Engineering from McGill University and has been a professor at Université Laval à Québec since 1994, heading the Civil and Water Engineering Department from 2010 to 2016.
  • Galvez has also advised a number of international organizations including on Canada-US and Quebec–Vermont agreements regarding the protection of the Great Lakes and the St. Lawrence River. She also conducted an important study on the catastrophic oil spill at Lac-Mégantic.

Senator Tony Loffreda (Québec – Shawinigan), ISG (Independent Senators Group)

Senator Tony Loffreda (Québec – Shawinigan), ISG (Independent Senators Group)
  • Appointed to the Senate on July 23, 2019.
  • Loffreda holds a Bachelor of Commerce from Concordia University, and is a certified public accountant with 35 years of experience in the Canadian financial industry.
  • Has held the positions of senior auditor and Regional Vice-President of Commercial Financial Services at the Royal Bank of Canada, Quebec headquarters, as well as the Vice-Chairman of the Royal Bank of Canada Wealth Management.
  • Loffreda is a recipient of the Queen Elizabeth II Diamond Jubilee Medal and has been awarded the Governor General of Canada Sovereign’s Medal for Volunteers, the Lieutenant Governor of Quebec’s Gold Medal for Exceptional Merit, the Canadian Senate 150th Anniversary Medal and the Philhellene of the Year Award by the Hellenic Community of Greater Montréal.

Senator Elizabeth Marshall (Newfoundland and Labrador), Conservative

Senator Elizabeth Marshall (Newfoundland and Labrador), Conservative
  • Appointed to the Senate in January 2010.
  • Former Deputy Minister of Transportation and Works, and of Social Services, as well as several positions in the Department of Finance.
  • Auditor General of Newfoundland and Labrador in 1992–2002.
  • Served as the Government Whip (Conservative) in the Senate 2011–15.
  • She was appointed Deputy Chair of the Standing Senate Committee on Internal Economy, Budgets and Administration in April 2020. She is also a member of the Standing Senate Committee on Banking, Trade and Commerce.
Interest in TBS Portfolio
  • In the 43rd Parliament:
    • Supplementary Estimates (A) 2019–20
      • Estimates Reform: Questioned the status and the success of the estimates reform pilot project last Parliament. TBS Officials clarified that the pilot project was now complete, and the standing orders are returning to normal.
      • Financial and Material Management Solution Project: Was interested in the full cost of the project and impacted departments. TBS committed to a follow-up.
  • In the 42nd Parliament:
    • Budget Initiatives: Questioned how budget initiatives functioned
    • Vote40: Questioned how the unclaimed money from Vote 40 was being used and what happens to it. Was also very critical of the initiative and the lack of oversight it gave Parliament.

Senator David Richards (New Brunswick), CSG (Canadian Senators Group)

Senator David Richards (New Brunswick), CSG (Canadian Senators Group)
  • Appointed to the Senate on August 30, 2017, but resigned from the Independent Senators Group (ISG) in April 2018 to sit as a non-caucusing independent senator.
  • On November 4, 2019, he joined the Canadian Senators Group (CSG).
  • Richards has been a writer-in-residence at several universities and colleges across Canada and has received honorary doctorates from three New Brunswick universities and the Atlantic School of Theology.
  • Is an acclaimed Canadian novelist, essayist, screenwriter and poet, whose work has been translated into 12 languages, and are part of the curriculum of Canadian and U.S. universities.
  • Richards is a member of the Order of New Brunswick and the Order of Canada.

Senator Larry W. Smith (Québec – Saurel): Conservative

Senator Larry W. Smith (Québec – Saurel): Conservative
  • Appointed to the Senate December 18, 2010
  • He served as Leader of the Opposition in the Senate from April 2017 until November 2019.
  • Smith graduated from Bishop’s University with a degree in economics in 1972, and earned a Bachelor of Civil Law from McGill University in 1976.
  • Served as Co-President of the 2001 Montreal Centraide Campaign, and on the board of the Canadian Olympic Committee, as well as Commissioner of the Canadian Football League (CFL).
  • President and publisher of The Montreal Gazette in 2002 and 2003.

3. Overview of the Supplementary Estimates (B), 2020–21

Issue

What planned spending is presented in Supplementary Estimates (B), 2020–21?

Key facts

  • Supplementary Estimates (B), 2020–21 present a total of $79.2 billion in incremental budgetary spending, including $20.9 billion to be voted by parliament and $58.3 billion in forecast statutory expenditures.
  • Of these amounts, roughly $15 billion (74%) of the voted requirements and $57 billion (96%) of the additional statutory forecasts are for the government’s response to the public health, social and economic impact on Canadians of the COVID-19 global pandemic.
  • These Estimates also present $1.3 billion in loans, investment and advances.

Response

  • The government continues to invest in Canadians and the economy, and particularly in the efforts to respond to the public health threats of the COVID-19 virus and to minimize its health, economic and social impacts.
  • The Supplementary Estimates outline new, and updated, spending needs for programs and services that were not sufficiently developed in time for inclusion in the Main Estimates.

Background

  • The majority of the $20.9 billion in new voted spending is for:
    • emergency responses to the COVID-19 pandemic, including medical research, vaccine development and purchases of personal protective gear and medical equipment and supplies
    • economic responses to the pandemic, including support for small and medium-sized businesses, salary top-ups for essential workers, and funding for provinces and territories to safely restart their economies, bring students back to school, and clean up inactive oil and gas wells
  • The $58.3 billion in planned statutory spending reflects the government’s key response measures and emergency supports, including:
    • the Canada Emergency Response Benefit ($28.5 billion)
    • payments to provinces and territories for the Safe Restart Agreement ($12.3 billion)
    • medical research and vaccine development ($3.8 billion)
    • acquisition of protective gear and medical equipment ($3.3 billion)
  • These Supplementary Estimates (B) also include $1.3 billion in non-budgetary measures, related primarily to student loans.

4. Overview of the 2020–21 Main Estimates

Issue

What spending is being presented to Parliament for its approval in the 2020–21 Main Estimates?

Key facts

  • The 2020–21 Main Estimates present total budgetary expenditures of $304.6 billion:
    • $125.1 billion of budgetary voted expenditures
    • $179.5 billion of statutory budgetary expenditures
  • The 2020–21 Main Estimates also include information on roughly $3.1 billion of non-budgetary expenditures (loans, investments and advances):
    • $87.2 million of non-budgetary voted expenditures
    • $3.0 billion of statutory non-budgetary expenditures

Response

  • The Government’s Main Estimates for 2020–21 outline $304.6 billion in total budgetary spending authorities.
  • Responsible government spending creates opportunities for Canadians from coast to coast to coast.
  • These investments will provide services to Indigenous peoples, and international development and peace programming, and ensure the continued effectiveness of the Canadian Armed Forces.

Background

The 2020–21 Main Estimates present $125.1 billion of budgetary voted expenditures and $87.2 million in non-budgetary voted expenditures.

The 2020–21 Main Estimates also include information on $179.5 billion of statutory budgetary spending and $3.0 billion of statutory non-budgetary expenditures (loans, investments and advances).

The level of voted budgetary spending is slightly ($0.5 billion) lower than what was presented in the 2019–20 Main Estimates.

Voted spending will be authorized through three appropriation bills. The first, Interim Supply, was introduced in Parliament in March for spending until the end of June 2020; the second, additional Interim Supply; was introduced in June for spending until the end of December; and a third, Full Supply, will be introduced in December for the balance of funding presented in the Main Estimates.

Of the 122 organizations presenting funding requirements, six are seeking more than $5 billion of voted budgetary funding.

Supplementary Estimates (B), 2020–21: government-wide / major items

5. COVID-19: Public Health Agency of Canada, Health Canada, Public Service and Procurement Canada

Issue

What are the major voted expenditures related to COVID-19 health and medical measures in Supplementary Estimates (B) 2020–21?

Key facts

  • The Public Health Agency of Canada is spearheading health and medical measures to combat COVID-19. There is $9.3 billion in voted funding related to COVID for the Agency in Supplementary Estimates (B), 2020–21. This is over 40% of the total amount of these supplementary estimates to be approved by Parliament.
  • Health Canada ($747 million) and Public Services and Procurement Canada ($400 million) also present significant amounts of voted funding in these Estimates for health and medical measures.

Response

  • Planned spending in these Estimates supports the government’s response to the public health, social and economic impact of the COVID-19 pandemic on Canadians.
  • This planned spending includes medical research, vaccine development and supplies of key goods and services, such as personal protective equipment, to invest in the health and safety of all Canadians.
  • Our government has a responsibility to ensure Canadians have the support they need in this time of crisis, and to promote safety and prosperity going forward.

Background

  • The Public Health Agency of Canada is requesting:
    • $5.4 billion for medical research and vaccine developments, including advanced vaccine purchase agreements
    • $2.2 billion to purchase personal protective equipment, laboratory testing kits, medical supplies and equipment for use in the health care sector and in federal government departments and agencies
    • $783 million to help secure and enhance domestic biomanufacturing capacity, obtain a sufficient supply of packaging materials for the COVID-19 vaccine; secure mass vaccination equipment; and build capacity for successful vaccine deployment
    • $320 million for testing, contact tracing and data management
    • $230 million for border and travel measures and isolation sites
  • Health Canada is requesting:
    • $319 million for medical research
    • $315 million for testing, contact tracing and data management
  • Public Services and Procurement Canada is requesting:
    • $400 million to acquire and distribute supplies of key goods and services, such as medical equipment, including personnel protective equipment for a broad range of organizations which are involved in COVID-19 response or which provide non-medical essential services to Canadians

6. COVID-19 funding: Department of Finance

Issue

What are the major voted COVID-19 expenditures for the Department of Finance in Supplementary Estimates (B), 2020–21?

Key facts

  • The Department of Finance is requesting roughly $3.3 billion in these Estimates, of which over 95% is COVID-19–related.
  • The funds requested are for salary top-ups for essential workers, and funding for provinces and territories to safely restart their economies, bring students back to school, and clean up inactive oil and gas wells.

Response

  • Our government has a responsibility to ensure Canadians have the support they need in this time of crisis, and to promote economic recovery and prosperity going forward.
  • Funding in these Estimates will help provinces and territories increase their capacity to conduct COVD-19 testing, perform contact tracing, and share public health data that will help fight the pandemic.
  • Investments for the provinces also include $1 billion for Alberta to clean up inactive oil and gas wells, which will help the environment while further promoting economic recovery.

Background

  • The Department of Finance is requesting:
    • $1 billion for the Safe Return to Class Fund, payments to provinces and territories to help cover costs of adapting the education sector to ensure a safe return to class throughout the school year. Expenditures supported by the Fund include adapted learning spaces, improved air ventilation, increased hand sanitation and hygiene, and purchases of personal protective equipment and cleaning supplies
    • $1 billion for the Province of Alberta to clean up inactive oil and gas wells, which will help the environment while promoting economic recovery
    • $700 million for the Safe Restart Agreement which supports provinces and territories in safely restarting their economies and preparing for possible future waves of the virus. Funding in these Estimates will help provinces and territories increase their capacity to conduct testing, perform contact tracing, and share public health data that will help fight the pandemic
    • $461 million for the Essential Workers Support Fund (COVID-19), to cost-share, with provinces and territories, a temporary top-up to the salaries of workers deemed essential in the fight against COVID-19

7. COVID-19 funding: Department of Indigenous Services Canada

Issue

What are the voted COVID-19 expenditures in Supplementary Estimates (B), 2020–21 to support Indigenous communities?

Key facts

  • The Department of Indigenous Services is requesting approximately $330 million in these Estimates, for COVID-19-related activities.
  • The funds requested will be used to support Indigenous businesses, students and youth, and employment services.

Response

  • The government is committed to supporting Indigenous communities and businesses to meet their specific challenges related to the pandemic.
  • The funds requested will be used to help ensure Indigenous businesses have the resources to address their immediate needs and reduce the impact of the pandemic.
  • These estimates also have planned investments to support the safe restart of indigenous communities, and further funding for students and youth.

Background

  • The Department of Indigenous Services is requesting:
    • $298.3 million to address the specific needs of Indigenous businesses impacted by the COVID-19 pandemic and to mitigate the impact on their short-term operational requirements. The funding will be delivered through a mix of repayable and non-repayable contributions
    • $15.9 million to support students and youth
    • $8.1 million to support a safe restart in Indigenous communities
    • $7.2 million to provide case management and pre-employment services to individuals who receive support through the On-Reserve Income Assistance Program

8. COVID-19 funding: other organizations

Issue

How do the voted expenditures in Supplementary Estimates (B), 2020–21 address many of the challenges caused by the COVID-19 pandemic?

Key facts

  • Supplementary Estimates (B), 2020–21 presents voted funding requirements for a wide variety of responses to the impacts of the pandemic.
  • This funding:
    • supports the Canadian Armed Forces’ response to the pandemic
    • addresses urgent housing needs and food insecurity
    • provides both broad and industry-specific support for businesses
    • creates job opportunities for students
    • austains government operations

Response

  • The government is committed to helping Canadians face the wide variety of challenges brought on by the COVID-19 pandemic.
  • Planned funding in these estimates includes support for urgent housing needs for vulnerable Canadians as well as funding for small and medium-sized businesses.
  • Planned funding for the Canadian Armed Forces and for IT infrastructure to improve remote access and online collaboration tools, will further support the government’s pandemic response.

Background

  • Notable instances of voted funding for COVID-19 response include:
    • $256 million to support the Canadian Armed Forces’ response to COVID-19 (Department of National Defence)
    • $254 million to help address urgent housing needs of vulnerable Canadians by rapidly creating new affordable housing units (Canada Mortgage and Housing Corporation);
    • $228 million to support small and medium-sized businesses (regional development agencies)
    • $125 million to support research institutes and universities (Social Sciences and Humanities Research Council)
    • $91.0 million to provide information technology infrastructure and services for online program delivery and support increased demand for secure remote network access and online collaboration tools for employees (Shared Services Canada)
    • $74 million to sustain Parks Canada operations
    • $59 million for research into medical countermeasures and support for businesses to increase countermeasure production capacity (Canadian Institutes of Health Research, Department of Industry, National Research Council of Canada)
    • $50 million for the Food Infrastructure Fund which facilitates access to safe and nutritious food for at-risk populations (Department of Agriculture and Agri-Food)
    • $50 million to increase bio-manufacturing capacity (National Research Council of Canada)
    • $48 million to create job opportunities for students (Department of Industry and National Research Council of Canada)
    • $44 million for the Community Futures Network (regional development agencies)
    • $37 million to address the outbreak of COVID-19 among temporary foreign workers on farms (Department of Agriculture and Agri-Food and Department of Employment and Social Development)
    • $24 million for the Canadian Seafood Stabilization Fund (regional development agencies)
    • $15 million for the Women Entrepreneurship Strategy Ecosystem Fund (regional development agencies)

9. Public Health Events of National Concern Payments Act and other COVID-19 statutory authorities

Issue

Recent legislation provided spending authority for activities related to the pandemic. What new statutory expenditures are included in Supplementary Estimates (B), 2020–21?

Key facts

  • COVID-19 response measures have been addressed through a mix of voted and statutory authorities.
  • In general, statutory measures focus on direct support for individuals and businesses, or large-scale expenditures needed in the immediate term.
  • The government has approved several statutory measures since the beginning of the pandemic, the most recent being the COVID-19 Response Measures Act, granted Royal Assent on October 2nd, which modified the Public Health Events of National Concern Payments Act (PHENCPA), to provide spending authority up to December 31, 2020.
  • Supplementary Estimates (B), 2020–21 presents for information, $58.3 billion in statutory expenditures, including:
    • the Canada Emergency Response Benefit ($28.5 billion)
    • payments to provinces and territories for the Safe Restart Agreement ($12.3 billion)
    • medical research and vaccine development ($3.8 billion)
    • acquisition of protective gear and medical equipment ($3.3 billion)

Response

  • The government is committed to ensuring that programs related to health and safety have the necessary resources for Canadians during this pandemic.
  • All statutory expenditures presented in these supplementary estimates are already authorized through existing legislation.
  • Statutory expenditures, such as the $28.5 billion for the Canada Emergency Response Benefit and $12.3 billion to provinces for the Safe Restart Agreement are presented for information only in order to provide a more complete view of the government’s spending plan.
  • The supplementary estimates do not seek authority to fund the Canada Emergency Response Benefit
  • The government has also included planned spending to Canadians across the country, through funding to provinces for the Safe Restart Agreement.

Background

The PHENCPA provides a payment authority for many of the government’s key emergency supports, such as the Canada Emergency Response Benefit (CERB), the Canada Emergency Student Benefit (CESB) and the Canada Emergency Commercial Rent Assistance program.

PHENCPA also provides authority for economic recovery programs and government operations to respond to the pandemic.

Following repeal of the original PHENCPA on September 30, the COVID-19 Response Measures Act was granted Royal Assent on October 2, modifying the Public Health Events of National Concern Payments Act (PHENCPA), to provide spending authority for named initiatives with spending limits, up to December 31, 2020.

Anticipated expenditures from January 1 to March 31 are included in these Estimates to be voted on by Parliament.

Temporary amendments to the Financial Administration Act authorized for payments to provinces and territories, were also repealed on September 30.

10. Specific claims settlement: CIRNA

Issue

Is there funding in Supplementary Estimates (B), 2020–21 to settle claims with First Nations?

Key facts

  • These Supplementary Estimates include $760 million for anticipated settlements of specific claims.
    • This is a reprofile of unused funds from the previous fiscal year. Timing of payments is determined by conclusion of successful negotiations and ratification of settlements.
    • Concluding these agreements provides financial benefits to the First Nations, as well as closure and certainty for both the First Nations and the Crown.

Response

  • The government is committed to comprehensive land claim negotiations to give Indigenous Peoples the support they need for their communities to succeed.
  • Funding plans in these Supplementary Estimates support timely payment of anticipated settlements of specific land claims.
  • They respond to the unique land ownership, use and protection needs of Indigenous leadership, while also renewing the government-to-government relationship between Canada and Indigenous Peoples.

Background

Specific claims are grievances arising from alleged failures of the Crown to fulfill its lawful obligations, usually in the context of managing the lands and assets of First Nations under the Indian Act or protecting First Nation interests in treaty implementation.

The primary objective of the Specific Claims Policy is to discharge outstanding lawful obligations of the federal government through negotiated settlement agreements.

As of June 2020, there were 131 claims under assessment and 338 in negotiations.

11. Transport initiatives

Issue

What are the proposed funding amounts for the Department of Transport in these supplementary estimates and what are they intended to achieve?

Key facts

  • As part of these Estimates, Transport Canada is seeking $516.6 million in voted budgetary spending, which represents a 29% increase over previously approved authorities. Major initiatives include:
    • $180 million for the purchase of the MV Villa de Teror
    • $115.8 million to provide essential air services to remote communities
    • $69.5 million to renew the Ports Asset Transfer Program
    • $54.2 million for the incentives for Zero-Emission Vehicles Program

Response

  • While the vast majority of planned spending in these estimates is earmarked for COVID-19 initiatives, the government continues to advance its other priorities for Canadians.
  • Planned investments outlined in these estimates include, for example, bilateral agreements with provinces and territories to provide essential air services to remote communities and upgrades to transportation services to improve access to the Îles-de-la-Madeleine.
  • The government also continues to invest in greening government operations, including additional funding for the Zero-Emission Vehicles program announced in Budget 2019 to provide for point-of sale rebates on purchases of Zero-Emission Vehicles to offset their higher purchase price.

Background

  • These Supplementary Estimates include $516.6M for the Department of Transport:
    • $180 million for the purchase of the MV Villa de Teror, a ferry to replace the 39-year-old MV Madeleine which is the only regular year-round means of transportation for vehicle and passenger traffic on and off the Îles-de-la-Madeleine;
    • $115.8 million to establish new bilateral agreements with provinces and territories to provide essential air services to remote communities that rely on air service as the only year-round mode of transportation;
    • $69.5 million to renew the Ports Asset Transfer Program in order to reduce the inventory of local ports held by Transport Canada while also ensuring the safe operation of its existing port facilities; and
    • $54.2 million for the incentive for Zero-Emission Vehicles program announced in Budget 2019 to provide for point-of sale rebates on purchases of Zero-Emission Vehicles to offset their higher purchase price. This program has received significant uptake with projections indicating that Budget 2019 funding will be exhausted later this year, more than one year earlier than originally forecast.

12. Government advertising

Issue

Why is there funding in Supplementary Estimates (B), 2020–21 for government advertising?

Key facts

  • Federal government advertising helps inform Canadians about their rights, government programs and services, as well as risks to public health, safety and the environment.
  • As per our annual government advertising process, these Estimates include $22.6M for non-COVID-related advertising campaigns in nine departments, covering a range of topics from raising awareness of fraudulent scams; generating engagement in nature conservation issues; and increasing preparedness and readiness of Canadians for disasters and emergencies.
  • The Privy Council Office received $48.7 million in Supplementary Estimates (A) to support COVID-19 response focused government advertising. This funding request reflected the urgent nature of the need for public communications on public health guidance and economic support for Canadians. It allowed PCO to respond quickly to urgent requirements by supporting departments engaged in the government response to the pandemic including the approval and funding of selected COVID-19 response advertising campaigns.
  • The Privy Council Office is now seeking to transfer $33.9M of its $48.7 million to other organizations such as the Department of Finance and the Public Health Agency of Canada, for COVID-19 public health guidance and economic support for Canadians.
  • It is common practice for transfers to occur between departments as plans are implemented and programs are delivered.

Response

  • Advertising helps the government communicate directly with Canadians on government policies, priorities, programs and services so Canadians can make informed choices.
  • These Estimates include planned spending for advertising that covers a range of topics from raising awareness of fraudulent scams; generating engagement in nature conservation issues; and increasing preparedness and readiness of Canadians for disasters and emergencies.
  • Planned funding also supports campaigns on taking action against violence, harassment and promoting mental health in the workplace.
  • Of significance, the government will also direct its advertising efforts to the ongoing pandemic response, promoting awareness and encouraging action on important programs and measures.

Background

  • The NON-COVID-19 Response advertising campaigns supported by the $22.6M of new funding are:
    • “Taking Action Against Violence, Harassment and Mental Health in the Workplace” emphasizes the ongoing importance of addressing mental health, violence and harassment in the Canadian workforce.
    • “Benefits and Credits” will raise awareness amongst vulnerable populations and working Canadians of benefits and credits that they are entitled to when they file their taxes.
    • “Slam the Scam” will raise awareness of a variety of scams to reduce the public’s susceptibility to them.
    • “Services for Seniors” will promote programs and benefits for older Canadians.
    • “Inclusive Workplace” supports accessibility in the workplace for persons with disabilities.
    • “Nature Legacy” will generate awareness and engagement in key nature conservation issues.
    • “Newcomer Services and Inclusive Communities” promotes programs and services (language and skills courses, labour market access, welcoming communities, etc.) offered by the government to help newcomers integrate and succeed in Canada.
    • “Jordan’s Principle / Inuit Child First Initiative” will raise awareness about these programs, including information on eligibility criteria and the products, services and supports provided.
    • “Seasonal Flu Vaccination” will help maximize flu vaccine uptake and reduce pressure on the health care system in the event of a second wave of COVID-19 illness during flu season.
    • “Childhood Vaccination” will reinforce messaging on vaccine importance, effectiveness and safety.
    • “Emergency Preparedness (natural disasters)” will seek to educate and inform a broad swath of Canadians about the risks they could potentially face in their region.
    • “Firearms” will raise awareness of the ban and buy-back program for prohibited firearms, as well as secure storage requirements.
    • “Remembrance” honours Canadians who served our country during times of war, military conflict and peace.
    • “Mental Health Services for Veterans and Their Families” will highlight the services and supports available based on individual needs.
  • In Supplementary Estimates (A), the Department of Finance included $10M of planned statutory (Public Health Events of National Concern Payments Act) spending for advertising and PCO received $48.7M of voted funds for “communications and marketing.” PCO is now transferring $33.9M of funding received in Supplementary Estimates (A) to other organizations for COVID-19-related advertising campaigns:
    • $12M for the COVID-19 Economic Response Plan (Finance)
    • $10M for COVID public education (PHAC)
    • $10M for the COVID Alert App (Health)
    • $1M for travel and border information (GAC)
    • $900K for Essential Services Jobs/Job Bank (ESDC)
  • The funding for COVID-19-related advertising campaigns was requested through Supplementary Estimates (A) in recognition that we were dealing with an unprecedented pandemic situation and the timing for the required advertising response was uncertain and may have been needed before Supplementary Estimates (B).
  • The Annual Report on Government of Canada Advertising Activities includes information on total advertising expenditures, media mix, advertising suppliers and contracts.

Supplementary Estimates (B), 2020–21: TBS perspective

13. TBS Vote 1, Treasury Board Secretariat program expenditures

Issue

How much is TBS seeking in the 2020–21 Supplementary Estimates (B) for its Vote 1, Program expenditures?

Key facts

  • Seeking parliamentary approval for a $21.1-million increase in Vote 1, Program expenditures.

Response

  • We continue to provide leadership, guidance and oversight in people management in the Government of Canada through Phoenix stabilization and HR-to-Pay initiatives with a requested $19 million in funding.
  • Other funding requested in these Supplementary Estimates will also help to meet the government’s obligations and needs, namely updates to software and digital upgrades, claims settlements, and a study on salaries of employees under the Law Practitioner group.
  • The $21.1-million increase in Vote 1 Program expenditures, also reflects funds transferred to departments for projects to reduce GHG emissions under the Greening Government Fund.

Background

TBS will be seeking parliamentary approval to increase its Vote 1, Program expenditures authorities in 2020–21 by $21.1 million for the following:

  • $19 million for Phoenix stabilization and HR-to-Pay initiatives to provide horizontal leadership, guidance and oversight for people management infrastructure.
  • $2.9 million transfers from various organizations to continue the development of the Government of Canada Financial and Materiel Management (GCfm) Solution project. This funding will be used to transition organizations currently on the FreeBalance system, which is at risk as vendor will no longer provide support.
  • $2.8 million to settle claims arising from the White class action settlement agreement. This funding is necessary to meet the government’s obligations under the court-ordered settlement and to ensure that settlement payments are not interrupted.
  • $0.8 million transfer from Shared Services Canada to Treasury Board Secretariat to support the Financial Management Transformation Coordinated Model and advance the development of the Government of Canada Digital Core Template.
  • $0.4 million to complete a wage study on salaries of employees under the Law Practitioner group. During the negotiations on the Law Practitioner (LP) group collective agreement and in the subsequent ratification of the agreement, the government committed to undertake a wage study.
  • -$1.8 million transfers to various organizations for innovative approaches to reduce greenhouse gas (GHG) emissions in government operations. The Greening Government Fund provides opportunities for departments to explore innovative approaches to reducing GHG emissions. The Fund will contribute $1.8 million to 13 different projects in 9 Government of Canada departments and agencies.
  • -$3 million internal reallocation of resources, represents a decrease of $3 million in Vote 1, Program expenditures and an increase of $3 million in Vote 20, Public Service Insurance to increase transparency and coherence in the administration of the public service group insurance plans and programs within the Vote 20, Public Service Insurance.

14. TB Vote 10: Government-Wide Initiatives

Issue

Why is the Treasury Board Secretariat requesting an additional $20 million in its Government-wide Initiatives Vote for the Application Modernization Initiative?

Key facts

  • Funding for the Application Modernization Initiative will support departments and agencies as they migrate their IT applications from aging data centres into more secure modern data centres or cloud services.
  • TBS Vote 10, Government-wide Initiatives, is the centrally managed vote that supports strategic management initiatives in the federal public service, including the Application Modernization Initiative since 2018–19.
  • TBS Vote 10 is an appropriate vehicle for allocations that are subject to a review process, and subsequent approval of a delegated official, in this case the Government of Canada Chief Information Officer.

Response

  • TBS Vote 10, Government-wide Initiatives, is a centrally managed vote that supports the implementation of strategic management initiatives that cut across many departments.
  • The Application Modernization Initiative started with funding in Budget 2018. These current investments ensure we can enhance key government Information technology and information management capabilities, such as upgrading data centres and moving to the cloud where feasible.
  • These ongoing upgrades help ensure the government is always modernizing its key IT infrastructure and improving resilience.

Background

Budget 2018 earmarked $110 million for the Application Modernization Initiative to move IT applications from data centres at highest risk of failure to a modern hosting solution (that is, the Cloud or a new data centre).

An initial $44 million was accessed by the Treasury Board Secretariat in February 2019. Funding allocated during this initial phase was used by departments to take stock of their IT applications and identify activities required in preparation for a move to the Cloud or a modern data centre.

The $20 million in Supplementary Estimates (B), 2020–21 will be used to continue implementation of the initiative.
The Treasury Board Secretariat, in collaboration with Shared Services Canada, prioritizes allocations based on the risk level of the aging data centre in which departments’ IT applications are housed and their readiness to implement upgrades.

Allocations are authorized by the Government of Canada Chief Information Officer and distributed to organizations through TBS Vote 10.

TBS Vote 10, Government-wide Initiatives, is a Treasury Board managed central vote that supports strategic management initiatives in the federal public service.

In general, items included in TBS Vote 10 still have some stage of development or approval to go through in order to ensure the funds are distributed effectively. In all cases, parliament has been fully informed on the funds through its upfront inclusion in the Estimates and then through reporting of drawdowns with each Estimates and at year-end.

15. Compensation adjustments (TB Vote 15)

Issue

Why is the Treasury Board Secretariat requesting $19 million for compensation adjustments in the Supplementary Estimates (B), 2020–21?

Key facts

  • Compensation funding is requested through these Estimates for:
    • incremental costs of a recently concluded collective bargaining agreement for the Aircraft Operations group
    • changes to the terms and conditions of employment for ten groups in separate agencies
    • Compensation payments to employees for the delayed implementation of recently signed collective agreements

Response

  • The Government of Canada respects the collective bargaining process and negotiates with unions to reach agreements that are fair to employees and to taxpayers.
  • The funding in these Supplementary Estimates relates to compensation adjustments made between October 19, 2019, and September 11, 2020, based on a new collective agreement for aircraft operators and updated terms of employment for 10 other employment groups.
  • It reflects the employer’s costs of salary increases and other compensation adjustments taking effect in 2020–21.
  • Canada’s public servants deserve to be paid properly for their important work.

Background

Treasury Board Vote 15, Compensation Adjustments, is a centrally managed vote that is used to support the role of the Treasury Board as the employer of the federal government.

More specifically, it is the mechanism used to compensate appropriated organizations for salary adjustments arising from negotiated collective bargaining agreements, and other changes to the terms and conditions of employment of the public administration.

When Parliament approves the appropriation act for these Supplementary Estimates, funds will be distributed from TB Vote 15 to applicable organizations, and the details are reported in the supplemental information online.

The funding in these Supplementary Estimates relates to compensation adjustments made between October 19, 2019, and September 11, 2020. It reflects the employer’s costs of salary increases and other compensation adjustments taking effect in 2020–21, for the following:

  • A recently concluded collective agreement for the Aircraft Operations (AO) group
  • Updated terms and conditions of employment for 10 groups in separate agencies, including students at parks Canada as well as non-executive positions at FINTRAC and CIHR
  • Compensation payments to employees between February 5, 2020, and August 5, 2020, for delayed implementation of recently signed collective agreements

16. TB Vote 20: Public Service Insurance Plans and Programs

Issue

Why is the Treasury Board Secretariat requesting additional funding for Public Service Insurance through Supplementary Estimates (B)?

Key facts

  • The Treasury Board Secretariat is seeking parliamentary approval for $585 million to address the employer’s share of cost increases under the Public Service Insurance plans and programs.
  • This funding will allow the government to respond to cost increases driven by price inflation and population growth, and in turn help ensure the financial sustainability of the plans.

Response

  • The Treasury Board of Canada Secretariat (TBS) is committed to effectively managing Canada’s professional public service.
  • Through these Supplementary Estimates, TBS is seeking $585 million for Vote 20 in order to fulfil its responsibilities and obligations under the Public Service Insurance Plan.
  • These Supplementary Estimates also include a transfer of $3 million from TBS Vote 1 to Vote 20 to increase transparency and coherence in the administration of the Public Service Insurance plans and programs.

Background

TB Vote 20, Public Service Insurance, is a Treasury Board managed central vote that is used to pay for the employer’s share of costs under the public sector benefits and insurance programs.

The public service group insurance plans and programs include health and dental care benefits, as well as disability and life insurance for approximately 1.5 million active and retired employees and their eligible dependants.

The funding requested in these Supplementary Estimates will help ensure the financial sustainability of the plans and respond to cost increases driven by price inflation and population growth.

This top-up funding will also help address financial pressures caused by the sunsetting of Budget 2018 funding for TB Vote 20 at the end of 2019–20.

The Public Service Insurance plans have been experiencing increased financial pressure due to the expanded types and increased cost of prescription drugs and related services, growth in the size of the public service and lower interest rates.

These Supplementary Estimates also include a transfer of $3 million from TBS Vote 1 to Vote 20 to increase transparency and coherence in the administration of the Public Service Insurance plans and programs.

2020–21 Main Estimates: government-wide / major items

17. Statutory spending

Issue

How much statutory spending is reflected in the 2020–21 Main Estimates? What does this spending include?

Key facts

  • Statutory expenditures detailed in the 2020–21 Main Estimates have increased approximately $5.4 billion from the 2019–20 Main Estimates.

Response

  • Our government is making smart investments in hard-working Canadians’ priorities as part of our plan to grow and strengthen the economy.
  • These Main Estimates outline $179.5 billion in expected statutory expenditures, which is provided on an ongoing basis through existing legislation.
  • Statutory expenditures account for delivering seniors benefits, providing climate tax credits, transfer payments to provinces and territories, and servicing Canada’s public debt.
  • As well, Parliament has already authorized amounts to boost supply in Canada’s rental housing markets and help Canadians with the costs of purchasing their first home.

Background

Estimates documents reflect planned statutory expenditures for information purposes only.

The 2020–21 main Estimates include information on $179.5 billion in budgetary statutory expenditures, including elderly benefits, transfers to provinces and territories and the cost of servicing the public debt.

This amount does not include benefits paid from the Employment Insurance Operating Account or expenditures legislated through the Income Tax Act (such as the Canada Child Benefit).

The $179.5 billion is an increase of approximately $5.4 billion from the previous Main Estimates.
Significant changes in budgetary statutory spending from 2019–20 include:

  • increases in major transfer payments (as published in the Economic and Fiscal Update 2019), most notably elderly benefits, fiscal equalization and the Canada Health Transfer
  • the introduction of Climate Action Incentive Payments
  • a decrease related to the additional one-time transfer to the Gas Tax Fund in 2019–20
  • a decrease in interest on unmatured debt

Statutory non-budgetary expenditures of $3.0 billion are forecasted for loans, investments and advances. This is an increase of approximately $750 million from the previous year and reflects reflect increased incentives for construction of rental housing and the First-Time Home Buyer Incentive.

18. Department of National Defence

Issue

What requirements are the Department of National Defence presenting in the 2020–21 Main Estimates?

Key facts

  • National Defence is the largest department in the federal government, and it presents voted budgetary expenditures of $21.8 billion in the 2020–21 Main Estimates.

Response

  • The Government of Canada is committed to taking care of the men and women in the Canadian Armed Force and helping them face the challenges of tomorrow.
  • Through these Main Estimates, we want to expand our capabilities and equip our land, air and sea defence teams to address the threats of the modern security environment.
  • We also want to advance Canada’s defence policy – Strong, Secure, Engaged – by investing in our naval fleet, life-saving aerial search and rescue vehicles, and armoured vehicles.

Background

National Defence is presenting voted budgetary expenditures of $21.8 billion in the 2020–21 Main Estimates. This is an increase of roughly $1.3 billion over the 2019–20 Main Estimates.

The increase is primarily in capital funding related to the Strong, Secure, Engaged defence policy for investments in major capital projects such as the Canadian Surface Combatant, Fixed Wing Search and Rescue, and the Armoured Combat Support Vehicle Fleet.

The Canadian Surface Combatant project, which is part of the National Shipbuilding Strategy, will replace both the Iroquois-class destroyers and the Halifax-class multi-role patrol frigates with a single class of ship capable of meeting multiple threats on both the open ocean and the highly complex coastal environment. The project budget estimate is between $56 and $60 billion. The project is currently in the design phase.

The Fixed-wing search and rescue aircraft replacement involves the procurement of 16 CC-295 aircraft equipped with advanced technology systems and opening a new training facility in Comox, British Columbia. The first aircraft arrived in Comox in September 2020. The second and third aircrafts were accepted by Canada in Spain for testing in July 2020.

The Armoured combat support vehicles project involves the procurement of 360 vehicles, which will be delivered beginning in late 2020. The last vehicles are to be received in 2025. These vehicles will support a range of operations which include domestic disaster relief and overseas peace-keeping missions.

DND’s Departmental Plan will provide additional information on planned spending and objectives for the next three fiscal years.

19. Department of Indigenous Services

Issue

What requirements is the Department of Indigenous Services presenting in the 2020–21 Main Estimates?

Key facts

  • The Department of Indigenous Services presents voted budgetary expenditures of $12.7 billion in the 2020–21 Main Estimates, which is second only to National Defence.

Response

  • The Government of Canada is committed to closing the socio-economic gaps experienced by First Nations, Inuit and Métis communities.
  • Funding requested in these Main Estimates seeks to support Indigenous students at all levels and to provide greater access to early learning opportunities for Indigenous children across Canada.
  • We want to ensure First Nations students have the resources and the opportunities they need to succeed and advance First Nations control of education.

Background

The Department of Indigenous Services is presenting voted budgetary expenditures of $12.7 billion in the 2020–21 Main Estimates. This is an increase of roughly $547 million over the 2019–20 Main Estimates.

This increase in funding is primarily attributable to:

  • $483.6 million related to the transfer from the Department of Crown-Indigenous Relations and Northern Affairs primarily for Individuals Affairs and Lands and Economic Development programs as well as internal services
  • $85.7 million for elementary and secondary education as well as post-secondary education programs
  • $61.7 million to support activities related to the Indigenous Early Learning and Child Care Framework

The increases are partially offset by other decreases.
The Departmental Plan will provide additional information on planned spending and objectives for the next three fiscal years.

20. Department of Foreign Affairs, Trade and Development

Issue

What requirements are the Department of Foreign Affairs, Trade and Development presenting in the 2020–21 Main Estimates?

Key facts

  • The department presents voted budgetary expenditures of $7.1 billion and non-budgetary expenditures of $60.5 million in the 2020–21 Main Estimates.

Response

  • Our government is committed to expanding Canada’s support on global issues and in international institutions.
  • Spending plans in these Main Estimates target advancing human rights, combatting climate change and diversifying Canada’s trade and investment opportunities.
  • In addition, planned international spending assistance targets the empowerment of women and girls around the world – positioning Canada at the forefront of global feminist assistance efforts.
  • We also plan to contribute to global climate action assistance, delivering urgent support to developing countries to reduce greenhouse emissions.

Background

The Department of Foreign Affairs, Trade and Development is presenting voted budgetary expenditures of $7.1 billion in the 2020–21 Main Estimates. This is an increase of roughly $741 million over the 2019–20 Main Estimates.

This increase in funding is primarily attributable to:

  • $457 million to implement the Feminist International Assistance Agenda which targets gender equality and the empowerment of women and girls. Empowering women makes families and countries more prosperous.
  • $297 million to help developing countries address the impact of climate change. Developing countries are the most impacted by climate change and the least able to afford its consequences. Canada’s financial commitment supports:
    • initiatives that significantly reduce greenhouse gas emissions, in line with developing countries needs and plans
    • adaptation action, particularly for the poorest and most vulnerable, including women and girls
    • mobilizing new private sector capital for climate action in developing countries
  • $58 million for the new Export Diversification Strategy which has the goal of achieving 50% more exports by 2025.

The Departmental Plan will provide additional information on planned spending and objectives for the next three fiscal years.

21. Office of Infrastructure of Canada

Issue

What requirements is the Office of Infrastructure of Canada presenting in the 2020–21 Main Estimates?

Key facts

  • The Office presents voted budgetary expenditures of $5.7 billion in the
    2020–21 Main Estimates.

Response

  • The government is focused on building a stronger, safer and better Canada through modern and world-class infrastructure.
  • Funding requests in these Main Estimates support upgrades and repairs to existing infrastructure, such as public transit and green infrastructure.
  • Spending plans also provide funding to other levels of government for infrastructure projects that address economic, environment and community priorities.
  • We are committed to continue working in collaboration with all levels of government and other partners to build Canada for the 21st century.

Background

The Office of Infrastructure of Canada is presenting voted budgetary expenditures of $5.7 billion in the 2020–21 Main Estimates. This is a decrease of roughly $706 million over the 2019–20 Main Estimates.

This decrease in funding is primarily related to:

  • A $1.0 billion decrease in capital funding related to the Samuel de Champlain Bridge Corridor project, which was completed in 2019
  • The decrease is partially offset by an increase of $276 million in contribution funding requirements to make payments to fund newer program responsibilities, under the Investing in Canada Plan. The increase will also fund historical programs, including under the New Building Canada Plan

Planned statutory expenditures also decrease, by roughly $2.2 billion. This change results primarily from a one-time top-up of the Gas Tax Fund that was made in 2019–20.

The Departmental Plan will provide additional information on planned spending and objectives for the next three fiscal years.

22. Department of Veterans Affairs

Issue

What requirements is the Department of Veterans Affairs presenting in the 2020–21 Main Estimates?

Key facts

  • The department presents voted budgetary expenditures of $5.2 billion in the 2020–21 Main Estimates.

Response

  • Our government recognizes the sacrifices made by Canada’s Veterans and the important contributions they have made to Canada and the world.
  • Funding plans in these Main Estimates provides enhanced support and online services for Veterans and their families, including compensation for pain and suffering costs and income replacement benefits.
  • We will continue to take action to improve the health and well-being of Canada’s Veterans and provide them with the benefits and services they have earned and that they are entitled to.

Background

The department is presenting voted budgetary expenditures of $5.2 billion in the 2020–21 Main Estimates. This is an increase of roughly $821 million over the 2019–20 Main Estimates.

This increase is primarily as a result of an increase in Veterans accessing benefits and services, most notably compensation for pain and suffering, as well as income replacement benefits.

During 2020–21, the Department of Veterans Affairs will continue to focus on: enhancing online services to streamline the way Veterans and their families receive information from the department; engaging with Veterans, stakeholder organizations and Canadians on a wide variety of issues, such as improvements to programs, benefits and services, and commemorative outreach; and, the delivery of quality services and commemoration activities.

2020–21 Main Estimates: TBS perspective

23. TBS Vote 1, Program Expenditures

Issue

How does TBS plan to spend Vote 1, Program Expenditures in the 2020–21 Main Estimates?

Key facts

  • These Vote 1, Program Expenditure plans include $283.4 million in total voted and statutory spending.

Response

  • The Treasury Board Secretariat is committed to spending oversight, administrative leadership and effectively managing Canada’s professional public service.
  • Through this Departmental Plan, TBS plans to allocate $283.4 million in total planned spending to Vote 1, Program Expenditures, which covers most day-to-day expenses, such as salaries and benefits plans.
  • The Secretariat will continue delivering meaningful results for Canadians over the coming fiscal year as we lead the government’s management agenda.

Background

TBS’s 2020–21 Departmental Plan outlines $283.4 million total planned spending for Vote 1, Program Expenditures, of which $254.1 million is voted spending and $29.3 million is statutory spending (contributions to employee benefits plans).

69.7% of the total planned spending is to deliver on the department’s programs, and the remaining balance of 30.3% is for Internal Services, to support its 4 Core Responsibilities.

  • Internal Services includes: Communications, Financial Management, Human Resources Management, Information Management, Information Technology, Legal Services, Management and Oversight Services, Material, Real Property and Acquisitions.
  • TBS employs about 1,917 people, approximately 90.5% of whom are indeterminate.

24. TBS Vote 20, Public Service Insurance

Issue

The TBS 2020–21 Main Estimates, Vote 20, Public Service Insurance show a $485.7 million net decrease.

Key facts

  • These Vote 20, Public Service Insurance, plans include $2.2 billion in total spending.
  • This is a net decrease of $485.7 million when compared to last year’s Main Estimates.

Response

  • The Treasury Board of Canada Secretariat (TBS) is committed to effectively managing Canada’s professional public service.
  • Through these Main Estimates, TBS is seeking $2.2 billion for Vote 20 in order to fulfill its responsibilities and obligations under the Public Service Insurance Plan to hard-working public servants.
  • Funding needs for the fiscal year have decreased from last year’s Main Estimates, mainly as a result of 2018 top-up funding for the Public Service Insurance Plan sunsetting.

Background

The net decrease of $485.7 million when compared to last year’s Main Estimates is explained as follows:

  • Sunsetting of Public Service Insurance Plan funding subject to the renewal process: $511.5 million
    • Budget 2018 announced top-up funding of $554 million in 2018–19 and $511.5 million in 2019–20 to address anticipated shortfalls and contingency requirements to fulfill TBS’s employer responsibilities, and contractual obligations under the Public Service Insurance Plan. This funding has now sunsetted and is the main reason for the total Vote 20 funding decrease.
  • The above decrease in funding is offset by an increase to the Federal Public Service Dental Plan: $13.7 million
    • Budget 2019 announced ongoing funding in Vote 20, Public Service Insurance, to implement plan amendments as a result of an arbitral decision on negotiations under the Public Service Dental Care Plan.
  • Other miscellaneous increases: $12.1 million

25. 2020–21 Main Estimates: Treasury Board central votes

Issue

What funding is included in the 2020–21 Main Estimates for Treasury Board central votes?

Key facts

  • The 2020–21 Main Estimates includes roughly $3.6 billion in Treasury Board central votes (excluding public service insurance) which can later be allocated among organizations.

Response

  • Our government is committed to ensuring that accountability and transparency underpins how we use public funds.
  • The use of Treasury Board central votes helps the government address pressing issues and responsibly implement needed programs and services.
  • Central vote allocations in these Main Estimates are planned to cover possible unforeseen government-wide expenses; strategic management initiatives within the public service; and pay list requirements, including maternity and parental allowances; among other measures.

Background

To support the Treasury Board in managing the government’s financial, human and materiel resources, a number of special votes are required.

These Main Estimates include:

  • $750 million in TB Vote 5, Government Contingencies, which allows Treasury Board to provide for miscellaneous, urgent or unforeseen expenditures that are not otherwise provided for in the authorities approved through departmental votes. The same amount was presented in the 2019–20 Main Estimates.
  • $31 million in TB Vote 10, Government-Wide Initiatives, which supports strategic management initiatives of the federal public administration. The amount of this vote fluctuates from year to year. In the 2019–20 Main Estimates, roughly $327 million was included in this Vote.
  • $1.6 billion in TB Vote 25 to allow for the carry forward of unspent operating funds. The same amount was presented in the 2019–20 Main Estimates.
  • $600 million in TB Vote 30, Paylist requirements, which allocates funds to departments for maternity and parental allowances, severance pay, and other payments related to changes to the terms and conditions of employment. The same amount was presented in the 2019–20 Main Estimates.
  • $600 million in TB Vote 35 to allow for the carry forward of unspent capital funds. This is a decrease from the 2019–20 Main Estimates, which included $800 million in this Vote.

26. Update on Tabling of 2020–21 Departmental Plans

Issue

Update on tabling of 2020–21 Departmental Plans.

Key facts

  • Departmental Plans have been part of ongoing efforts to improve reporting to Parliament over the last 25 years.
  • In 2020–21, across 86 organizations, GC Infobase reports 1,543 different results that organizations are seeking to achieve and 2,728 indicators to measure progress.
  • Results and indicators are fully reported for each organization’s core responsibilities and, on a more limited basis, for individual programs.
  • Assessed performance of planned results for 2021-22 will be reported in fall 2022.

Response

  • The Government of Canada is committed to delivering on its agenda in a manner that is open and accountable to Canadians and Parliament.
  • Departmental plans help Canadians and Parliamentarians understand how federal organizations will support the government on achieving its agenda in the coming fiscal year – including expected outcomes and actual results achieved.
  • To continue on the path of accountability, Canadians and Parliamentarians can track the progress on the plans using GC InfoBase, an easy-to-understand tool that instantly provides results information on an ongoing basis by department.

Background

Departmental Plans and Departmental Results Reports have been part of ongoing efforts to improve reporting to Parliament over the last 25 years. These reports are part of the Estimates family of documents, including the Main Estimates.

Departmental Plans are tabled around the time of the Main Estimates, just prior to the start of the fiscal year. They outline how each department plans to achieve its departmental results, under each of its core responsibilities. They include, for example:

  • key initiatives, activities and actions the department plans to take in pursuit of these results, including actions to support or align with the minister’s key mandate letter commitments and with any departmental priorities or government-wide priorities
  • past results, lessons learned, corrective actions taken, or evaluations that will affect how the department plans to achieve the departmental results for the core responsibility
  • information about the financial and human resources that will be used to carry out the core responsibility

The Departmental Results Reports provide Canadians with a clear view of the results achieved by Government of Canada organizations and how they used their resources to achieve those results. They also contain measurements of progress towards the objectives set in Departmental Plans, and an update on resources actually used to achieve the results.

Performance objectives set in the 2021-22 Departmental Plans will be reported in fall 2022.

Departmental Plans form the baseline against which organizations track and report on their year-end performance through Departmental Results Reports. They link program performance and planned results to mandate letter commitments and government priorities. This detailed program information is also available online in GC InfoBase and on departmental websites.

In 2020–21, across 86Footnote 1 organizations, GC Infobase reports 1,543 different results that organizations are seeking to achieve and 2,728 indicators to measure progress. Results and indicators are fully reported for each organization’s core responsibilities and, on a more limited basis, for individual programs.

27. TBS 2020–21 Departmental Plan

Issue

What spending did TBS be present to Parliament in its 2020–21 Departmental Plan?

Key facts

  • Departmental Plans have been part of ongoing efforts to improve reporting to Parliament over the last 25 years.
  • TBS’s Departmental Plan includes $6 billion in total planned spending.
  • 1,917 FTEs would be allocated by TBS to achieve results in the Departmental Plan.

Response

  • The Treasury Board Secretariat is committed to the sound management of Canadian taxpayers’ dollars.
  • Spending plans are focused on the department’s four core responsibilities of spending oversight, administrative leadership, employer responsibilities and regulatory oversight.
  • The department’s plan for next fiscal year outlines $6 billion to fulfill its responsibilities, with the majority dedicated to achieving the Secretariat’s role as administrative leader and employer of the Government of Canada.

Background

TBS’s 2020–21 Departmental Plan presents $6.0 billion in total planned spending, which includes a total of 1,917 total full-time equivalents (FTEs).

The breakdown of these planned departmental expenditures consists of:

  • $3.6 billion and 302 FTEs to spending oversight to improve the accountability of how taxpayer dollars are spent, improve financial reporting, and carry out costing due diligences for all proposed legislation and programs
  • $86.2 million and 500 FTEs to administrative leadership to make more government data available to Canadians, improve the government digital citizen services, better manage government assets and projects and reduce the government’s greenhouse gas emissions
  • $2.2 billion and 430 FTEs to employer responsibilities, specifically to increase diversity in the executive levels, such as more women in senior decision-making positions, as well as completing collective bargaining started in 2018
  • $11.1 million and 71 FTEs to regulatory oversight to continue reform efforts to improve transparency, reduce administrative burdens and harmonize regulations to keep Canadians safe and businesses more competitive
  • $86.0 million and 614 FTEs to internal services

Hot issues for TBS

Supply cycle

28. COVID-19 supply management

Issue

How is supply being provided to government organizations to continue operations and to implement COVID-19 response measures?

Key facts
  • Parliament has approved several mechanisms to provide supply for COVID‑19 emergency and economic response measures.
  • The mechanisms that support funding reported in the Estimates, in chronological order, are as follows:

Legislation

Authority

Effective Date

Bill C‑13: An Act respecting certain measures in response to COVID-19

Public Health Events of National Concern Payments Act (PHENCPA)

Provides for many of the government’s key medical response measures and emergency supports (for example, purchases of PPE)

Covers the period between March 25, 2020, and September 30, 2020

Currently expired

Bill C‑13: An Act respecting certain measures in response to COVID-19

Amendments to the Financial Administration Act (FAA)

Provides for payments to provinces or territories (for example, to safely restart the economy)

Covers the period between March 25, 2020, and September 30, 2020

Currently expired

Bill C‑4: An Act relating to certain measures in response to COVID-19

Public Health Events of National Concern Payments Act (PHENCPA)

Provides for a continuation of items listed in a schedule relating to the government’s key medical response measures and emergency supports

Covers the period between October 1, 2020, and December 31, 2020

2020–21 Supplementary Estimates (B)

Provides for a continuation of the government’s key medical response measures and emergency supports, including payments to provinces and territories

Covers the period between January 1, 2020, and March 31, 2020

Subject to approval of the related appropriation bill in December.

2020–21 Supplementary Estimates (C)

Provides for a continuation of the government’s key medical response measures and emergency supports, including payments to provinces and territories

Covers late payments to be made during the final weeks of the fiscal year and at year-end.

Subject to approval of the related appropriation Bill in December.

  • The regular supply cycle also continues to operate, with some adjustments, in order to provide government organizations with the financial capacity to continue normal operations.
  • For example, study of the 2020–21 Main Estimates has been extended into the supply period ending December 10, 2020, resulting in approval of two interim supply bills.
2020–21 Main Estimates Interim Supply #1
(April 1, 2020)
Interim Supply #2
(June 26, 2020)
Full Supply
(*December 2020)
$125.2 billion $43.9 billion $55.1 billion $26.2 billion
  • Other legislative items not reported in these Estimates include the Canada Wage Subsidy and enhanced benefits provided through the Employment Insurance Operating Account.
Response
  • The Government of Canada is committed to keeping Canadians safe and healthy and has taken extraordinary action to respond to the impact of COVID-19 by funding emergency and economic response measures and addressing the operational needs of federal organizations.
  • Parliament has approved three supply bills to date: two interim supply bills in support of spending plans outlined in the 2020–21 Main Estimates, and one for additional requirements requested through the 2020–21 Supplementary Estimates (A).
  • Parliament has also approved several legislative measures which provide funding to government departments to implement COVID-19 emergency and economic response measures.
  • Following the decision made by Parliament to extend the deadline to review the 2020–21 Main Estimates to no later than December 10, Parliament will be asked to approve full supply for the Main Estimates in December.
  • Parliament will also be asked to approve supply for these Supplementary Estimates (B) at the same time.
  • We will continue to ensure transparency and the effective parliamentary oversight of all government spending.
Background
Parliamentary approval of COVID-19 response measures

Bills C‑12 through C‑15 of the 43rd Parliament (1st Session) and Bill C‑4 of the 43rd Parliament (2nd Session) have all provided varying forms of statutory spending authority to respond to the pandemic and related economic crisis.

For example, the Public Health Events of National Concern Payments Act (C‑13 and C‑4), has facilitated many of the government’s key medical response measures and emergency supports including:

  • the Canada Emergency Response Benefit
  • the Canada Emergency Student Benefit
  • the Canada Emergency Commercial Rent Assistance
  • additional supports for seniors
  • purchasing protective gear and medical equipment

The other legislative provisions provide for such things as:

  • payments to provinces and territories
  • increased individual benefits (Canada Child Benefit, GST/HST tax credit payment, Canada recovery/caregiver/sickness benefits)
  • wage subsidies
Supply cycle

Appropriation Act No. 1, 2020–21 received Royal Assent on March 13, providing roughly $44 billion in interim supply for the Main Estimates for this fiscal year.

On April 20, the House of Commons adopted a motion which modified Standing Order 81 for the 2020 calendar year so that parliamentarians can continue to examine the 2020–21 Main Estimates during the supply period ending December 10, 2020.

As a result, Appropriation Act No. 2, 2020–21 received Royal Assent on June 17, providing an additional $55 billion in interim supply for the Main Estimates.

At the same time, Appropriation Act No. 3, 2020–21 received Royal Assent for an additional $6 billion in supply for Supplementary Estimates (A), 2020–21, including for some COVID-19 response and recovery measures.

COVID-19 HR management and guidance

29. COVID-19 response and the public service

Issue

What has been Treasury Board of Canada Secretariat’s role in the federal government’s response to the COVID-19 pandemic, including tracking the impacts to the federal workforce? What measures have been taken with respect to occupational health and safety, duty to accommodate and the involvement of bargaining agents?

Key facts

  • On June 22, 2020, the Treasury Board of Canada Secretariat (TBS) shared the government’s approach to easing of COVID-19 restrictions across the country for federal employees, and posted comprehensive guidance for deputy heads to use in developing their own plans for increasing access at federal worksites as provinces and territories ease restrictions. This approach was developed in close collaboration between the Office of the Chief Human Resources Officer, Health Canada and Public Services and Procurement Canada.
  • This guidance supports the continued delivery of programs and services to Canadians, while supporting the physical and mental health of federal public servants.
  • As the number of positive cases of COVID-19 in Canada is rising, governments and public health authorities are responding with measures according to regional and local circumstances and needs. Public health authorities have signalled that physical distancing requirements must remain in place. The public service is moving collectively and successfully towards managing COVID-19 as part of its ongoing operations and the continued delivery of key programs and services to Canadians, and public servants will continue to work remotely, and effectively, for the foreseeable future.
  • Bargaining agents have been engaged from the early days of the pandemic on various issues, including health and safety, through a series of ongoing discussions with the National Joint Council and through the Occupational Health and Safety tables of each organization.
  • Under the Canadian Human Rights Act, employers are responsible for the accommodation of their employees, up to the point of undue hardship (for example, health and safety factors), and the Accessible Canada Act requires all federally-regulated institutions to eliminate or avoid the creation of barriers to the full participation of persons with disabilities, in seven areas of activity, including employment.

Response

  • The Government of Canada has taken exceptional measures to curb the COVID-19 pandemic and to protect the health and safety of its employees and that of all Canadians. Our exceptional workforce has ensured that Canadians receive the services they rely on, under extraordinary circumstances.
  • The Treasury Board of Canada Secretariat, in consultation with Health Canada and the Public Health Agency of Canada, has been providing regular policy guidance to deputy heads on security, business continuity planning, human resources and workplace issues, procurement, financial management, digital services and privacy.
  • Working with bargaining agents and departments and agencies and other stakeholders, we continue to review our human resources, IT, security and financial policies to ensure that federal public servants are supported during this pandemic.
  • Departments are also responding to the pandemic directly by providing equipment and other accommodations to employees, on a case-by-case basis, while taking measures to protect their employees’ physical and psychological health and safety.
  • The public service is moving collectively and successfully towards managing COVID-19 as part of its ongoing operations and the continued delivery of key programs and services to Canadians.
  • Public health authorities have signalled that physical distancing requirements must remain in place. This means that many public service employees will continue to work remotely, and effectively, for the foreseeable future.

Background

The Treasury Board of Canada Secretariat’s role in the COVID-19 response has been to:

  • underscore for the public that the government has plans in place to help ensure continued government operations and the delivery of critical services to Canadians
  • ensure accurate, effective and consistent internal communications to employees across federal departments and agencies on occupational health and safety, labour relations and human resources issues
  • provide guidance and direction to Deputy Heads on security matters, including business continuity planning, flexibilities in policy and regulations, human resources and workplace issues, digital services, security and privacy, so they can continue to deliver services within their organizations and to Canadians during the pandemic

It has also been tracking the number of COVID-19 cases across the Public Service and publicly reports this number online each week. As of November 18, 2020, 1,309 cases have been reported across the public service.

On March 13, 2020, the Government of Canada asked that employees, at all work sites, work from home where possible, and that managers identify an approach that is flexible while ensuring continued critical government operations and services to Canadians.

As a result, many organizations are currently using flexible work arrangements to both protect the health and safety of employees and manage their workforce for business continuity. The vast majority of public servants, including those providing critical services, are working remotely.

Organizations have a general obligation to ensure that the health and safety of every person employed by the organization is protected while they are working. This is achieved by complying with the Canada Labour Code, Part II (the Code) and the standards set out in the Canada Occupational Health and Safety Regulations. Also, employers have specific duties in regard to each workplace they control and every work activity under their authority that occurs in a workplace that is beyond the employer’s control. Any employee subject to Part II of the Code, has the right to refuse dangerous work as long as they have reasonable cause to believe that it presents a danger.

The National Joint Council regroups the heads of bargaining agent organizations and is the “forum of choice” in the federal public service to discuss issues with bargaining agents; government and union representatives have traditionally demonstrated that partnership and co-development improve the workplace and provide important benefits. Created in 1944, the National Joint Council today includes 18 public service bargaining agents, Treasury Board Secretariat and a number of separate employers as official members.

The Treasury Board Policy on People Management and Directive on the Duty to Accommodate outline the requirements for core public administration organizations to develop an inclusive, barrier‑free workplace in which all persons have equal access to opportunities in the core public administration. On April 1, 2020, the directive was updated to expand the coverage to all employees including other equity seeking groups in addition to persons with disabilities.

The Treasury Board of Canada Secretariat has been providing up-to-date COVID-19 advisories and information for employees on the Government of Canada COVID-19 website.

30. Hazard pay for public servants

Issue

Will the government be providing hazard pay to those employees who must work from their physical government office?

Key facts

  • On June 19, 2020, the Department of National Defence (DND) announced that hazard pay would be provided to Canadian Armed Forces members, recognizing their exceptional and sustained deployment in long-term care homes supporting Canada’s most vulnerable citizens and their sustained efforts to repatriate thousands of Canadians from abroad during the COVID-19 pandemic. The supplemental payments ended on September 30, 2020, [redacted]
  • Several unions [redacted] have been requesting that hazard pay be provided to federal public servants working on the frontlines in the context of the COVID-19 pandemic.
  • Many provinces have implemented pandemic pay for frontline workers, but most of these programs have been terminated. The provincial programs, which were in part funded by the federal government, were temporary, with most lasting for approximately sixteen weeks from the outset of the pandemic in March 2020.
  • Plans for the reinstatement or continuation of these pay supplements in most provinces in the event of a more severe second wave are not known at this time. However, on October 1, 2020, the government of Ontario announced that about 147,000 workers in long-term care, hospitals, and community care are eligible for between a $2 and $3 per hour pay increase. These increases will be extended to personal support workers in long-term care and community care. These increases will remain in place until March 2021.
  • Organizations are actively making employees aware of all known or foreseeable hazards and remediating all workplace hazards as they are identified.
  • COVID-19 data for the federal public service indicates that out of 92 organizations reporting on COVID-19 cases, there have been 1,172 cases as of November 11, 2020. This represents 0.39% of the core public administration and separate employer population reporting COVID-19 infection since the onset of the pandemic. This compares with infection rates in the broader Canadian population of 0.82% since the pandemic began.

Response

  • The Government of Canada is taking exceptional measures to curb the COVID-19 pandemic and to protect the health and safety of all its employees, including reducing employees’ risk of exposure, especially for vulnerable employees.
  • The Government of Canada has supported employees throughout this unprecedented situation and, as of November 19, 2020, the Chief Human Resources Officer had issued 18 updates to Deputy Heads on measures taken to support public servants. These have included flexibilities in the Public Service Health Care Plan, leave provisions, and best practices for responding to positive cases in the workplace.
  • We continue to review our human resources policies and employee compensation to ensure that federal public servants are supported as they deliver critical services to Canadians under unprecedented circumstances during this pandemic.
  • We will continue to take all necessary health and safety measures, as advised by public health experts to provide public servants, particularly those whose jobs call on them to work in close proximity to others, with a safe work environment.

Background

In the spring of 2020, the federal government established a $3B funding program to subsidize the cost of provincial wage supplements for workers in essential service sectors identified in the federal Guidance on Essential Services and Function in Canada During the COVID-19 Pandemic (for example, daycares, nursing and retirement homes, medical support services).

The program was intended to offset work disincentives created by the Canada Emergency Response Benefit (CERB) for low-income essential workers, as per the Prime Minister’s May 7, 2020, announcement.

However, provinces used the subsidy to extend hazard pay to middle-income provincial government frontline workers who have direct federal government counterparts (for example, prison guards in Ontario, nurses).

Several private sector organizations also offered additional pay and protections for workers exposed to COVID-19. For example, Loblaws provided 15% additional compensation ($2.25/hr. for minimum wage) to store and distribution centre employees, retroactive to March 8, 2020. The majority of these programs have since been discontinued.

The Quebec government also provided support to private-sector low-income frontline workers (for example, grocery store employees). Workers received $100 each week (approximately $2.50/hr.) for up to 16 weeks of eligible work, retroactive to March 15, 2020, to ensure that their earnings were not inferior to the financial support provided by CERB benefits.

31. Public Service Health Care Plan: temporary measures

Issue

The Government of Canada has introduced temporary changes to the Public Service Health Care Plan (PSHCP) to support employees during the COVID-19 pandemic. PSHCP flexibilities were introduced at the beginning of the crisis and updated as the situation evolved.

Key facts

  • The PSHCP is an employer-sponsored health care plan that offers health benefits to approximately 1.5 million Canadians, comprised of federal public service employees, retirees and their dependants.
  • In response to the COVID-19 pandemic, temporary measures have been put in place to assist PSHCP members and their families during this difficult time. These measures will remain in effect until non-critical business is authorized to resume or unless otherwise indicated.
  • A study by the Conference Board of Canada (April 2020) indicates that 23% of organizations are making changes to employee benefit offerings, including the introduction of virtual psychological and health care services during COVID-19.

Response

  • In response to the COVID-19 pandemic, the Government of Canada implemented temporary changes to the PSHCP aimed at helping plan members and eligible dependants access health care benefits while minimizing social interaction with health care professionals.
  • These temporary measures align with the government’s guiding principles during COVID-19 which includes stewardship of public funds and caring for the health of our workforce.
  • The government will continue to work with bargaining agents and stakeholders to monitor the effectiveness of the health care plan temporary measures in order to make sure the plan continues to provide support to members and their families during this difficult time.

Background

The Government of Canada is the plan sponsor for the PSHCP and the President of the Treasury Board (TB) is responsible for the overall management of the PSHCP. The PSHCP is administered by Sun Life Financial on a self-insured basis.

On March 24, 2020, in response to the COVID-19 pandemic, the Government of Canada implemented the following temporary changes to the PSHCP:

  • extension of the Emergency Benefit While Travelling
  • relaxation of the supply limit for maintenance drugs;
  • allowing coverage for registered social workers under the mental health benefit (previously only eligible in isolated posts)
  • removing of the prescription requirement for mental health and physiotherapy services

In April 2020, the Government of Canada extended all but one of the initial temporary measures until non-critical business resumes following the COVID-19 crisis.

The expanded supply limit for maintenance drugs, which was part of the initial PSHCP flexibilities, was intended to allow a supply of medicine for more than the current 100-day limit. This measure was not extended to align with the provincial and territorial regulations that restrict medication dispensing limits to a 30-day supply in order to avoid drug shortages,

Additionally, the following new measures were introduced;

  • honour existing paramedical prescriptions that have recently expired (must have been eligible as of March 20, 2020), including enhancing communications to increase the awareness of virtual paramedical services that are eligible for reimbursement under the PSHCP
  • further support access to mental health providers by temporarily accepting psychotherapists under the mental health benefit without the requirement of direct supervision by a registered psychologist

All PSHCP flexibilities introduced during the COVID-19 pandemic will remain in effect until non-critical business resumes or until otherwise indicated.

32. Official languages communications

Issue

Some internal and external communications of the Government of Canada during the pandemic have either not been in both official languages or contained translations of poor quality.

Key facts

  • The Commissioner of Official Languages issued a statement on April 23, 2020, indicating a spike in the number of complaints received relating to the Official Languages Act and calling on the government to respect official languages obligations in its communications, particularly given the importance of communicating health and safety information to Canadians in both official languages.
  • In his 2019–20 Annual Report, published at the end of September 2020, the Commissioner further highlights the shortcomings noted at the beginning of the pandemic in terms of compliance, especially the cases where important information was published in only one official language.
  • Throughout the pandemic, some official language minority community stakeholders and minority media have criticized the federal and provincial governments for their shortcomings with regard to official languages obligations.
  • On October 23, 2020, the President of the Treasury Board was interviewed by Radio-Canada on the use of official languages in the pandemic, resulting in minimal French-language media attention.
  • On October 29, 2020, the Commissioner of Official Languages published his report on the impact of emergency situations on official languages.
  • On November 12, 2020, the Commissioner of Official Languages published his report on the identification of linguistic profiles for positions in the federal public service.

Response

  • Respecting official languages is not only an obligation of and priority for the Government of Canada, it is integral to the effectiveness of our response to the pandemic.
  • The government must communicate with and provide services to Canadians in both official languages if their safety and health is to be protected, and we must ensure that the use of official languages is maintained in federal workplaces.
  • Throughout the crisis, my officials took proactive steps to ensure official languages are respected, and upon learning of issues, we have responded robustly, underscoring obligations under the Official Languages Act and highlighting the link between these obligations and an effective pandemic response.
  • We will continue to work closely with the Commissioner and his officials so that the rights and needs of Canadians and public service employees are protected in these unprecedented times.

Background

  • On March 31, 2020, OCHRO brought together persons responsible for official languages of federal institutions, stressing the importance of ensuring that statements, instructions and information be in both official languages at all times during the pandemic.
  • The Commissioner of Official Languages issued a statement on April 23, 2020, highlighting the need for official languages to be respected in times of crisis, especially where the health and safety of Canadians are concerned:

    “Canadians must be able to understand messages directed to them from all federal institutions, particularly in the current context. Beyond the Official Languages Act, it’s a matter of respect and safety for all Canadians. I have therefore communicated with all deputy ministers and with official languages champions across federal institutions to remind them of the importance of meeting their obligations to communicate with the public and their employees in both official languages at all times in order to ensure the respect and security of all Canadians.”

  • In response, during a meeting of the National Managers’ Community, TBS reminded more than 350 managers across the public service of their official languages obligations on May 4. TBS brought together persons responsible for official languages of federal institutions again on May 29, 2020, and stressed the importance for them to ensure that statements, instructions and information be in both official languages at all times. In addition, in June 2020, OCHRO posted on the Canada.ca COVID-19 website guidance for public servants on how to work remotely and hold virtual meetings in both official languages.
  • In his 2019–20 Annual Report, published on September 29, 2020, the Commissioner highlighted the compliance gaps observed at the beginning of the health crisis, especially the cases where important information on the health crisis was published in only one official language. He noted an increase in complaints related to communications with the public, but also with regard to communications with federal employees.
  • In his October 29 report on the link between the safety of Canadians and official languages, the Commissioner proposes solutions for the observed official languages shortcomings during the crisis. During a meeting of the Committee of Assistant Deputy Ministers on Official Languages (CADMOL), held on October 21, 2020, the Commissioner spoke to the three recommendations included in this report, one of which is directed to the Treasury Board:
    • Develop a strategy to encourage, support and work with various levels of government to integrate both official languages into communications during emergency or crisis situations.

In addition to this, the Commissioner published a report on November 12, 2020, on shortcomings with regard to the identification of linguistic profiles for positions in the federal public service, which, in his view, are a systemic issue. The report contains an in-depth analysis of the issue and recommendations to help resolve it.

  • TBS met recently with the Commissioner’s officials to obtain details on the nature of the complaints under section 91. We will analyze the Commissioner’s report and respond in due course. We will continue to support institutions through training and workshops in properly identifying language requirements of positions and promoting the Treasury Board’s online tool for determining the linguistic profile of bilingual positions.
  • Furthermore, the Chief Human Resources Officer and the President wrote to their respective counterparts in institutions to remind them of the importance of respecting language of work rights and their impact on responding effectively to the pandemic.
  • It is also important to note that the federal government has, as of late, strengthened its support for official languages:
    • In June 2019, new Official Languages (Communications with and Services to the Public) Regulations were adopted that will result in the designation of 700 new bilingual offices throughout the country by relying on a new, more inclusive, mechanism for determining such requirements, which now includes the presence of minority language schools and immigrants and bilingual families. The amended Regulations were well received by minority community stakeholders.
    • In addition, the Prime Minister has mandated the Minister of Official Languages, Mélanie Joly, to lead the modernization of the Official Languages Act. TBS, along with Justice Canada, is a key player in the work surrounding the modernization and has conducted in-depth analyses of the proposals and recommendations for modernizing the act.

33. Enabling technology: equipment, collaboration tools and network capacity to support public servants

Issue

With an unprecedented number of federal public servants working remotely, the Government of Canada (GC) has ensured that government workers are appropriately equipped to maintain continued operations.

Key facts

  • There are approximately 287,000Footnote 2 federal public servants.
  • On a daily basis, the GC is averaging nearly 200,000 remote connections.
  • Secure remote access capacity has increased by 72% since the start of COVID-19.
  • The GC has accelerated the implementation of Microsoft 365, allowing up to Protected B collaboration.
  • As of October 14, 2020, close to 207,000 federal employees are using Microsoft Teams (part of Microsoft 365) to collaborate, with more than 162,000 public servants using Microsoft Teams to host virtual meetings in the past month.
  • A new, and permanent, Emergency Communication System, supports the GC’s business continuity activities, for up to and including Protected B work and collaboration, and currently has over 687 users.Footnote 3
  • Daily teleconference usage has skyrocketed, from 1.6 million minutes/day to up to 5 million minutes/day, supported by a doubling in service capacity.
  • 183,000 smartphones are now enrolled on Wi-Fi calling, enabling employees to make and receive calls in areas with poor cellular service.

Response

  • The COVID-19 pandemic continues to transform the government’s operational and service landscape. In mounting our response, we have accelerated our digital transformation, delivering results that directly support Canadians during this time of crisis while strengthening its foundation to become a more open, user-centric and resilient digital government for the future.
  • We are working to ensure that public servants are appropriately equipped to continue delivering critical services and information to Canadians during these unprecedented circumstances.
  • In situations where new equipment is to be purchased, federal organizations have been reminded of their duties to be stewards of public funds, and to ensure that value-for-money is considered in all actions.
  • New tools have been deployed that allow employees to work and collaborate with their colleagues.
  • The deployment of Microsoft 365 has been accelerated across government to allow collaboration and remote conferencing that follows appropriate levels of security. Close to 207,000 federal public servants are now using these collaborative tools.

Background

The pandemic has prompted an unprecedented shift, requiring a majority of the 287,000 federal public servants to work remotely.

The Treasury Board of Canada Secretariat (TBS) Office of the Chief Information Officer (OCIO) is working with Shared Service Canada (SSC) to actively support the ongoing operation of the government’s IT infrastructure and systems and to maintain continuity of critical federal services.

Ensuring that departments and public servants have the knowledge, tools and equipment they need to work remotely means increasing network capacity to support the rise in remote work across government; prioritizing network access and IT services to maintain critical service continuity; providing guidance on the use of tools such as Zoom, Google Meet, and GCCollab when access to the GC network was not available; mobilizing the CIO community to identify support needs; providing real-time feedback on IT needs in core service areas; and coordinating government action to ensure key IT infrastructure continues to function.

OCIO is working closely with departments and agencies to support service delivery by strengthening Business Continuity Planning, identifying critical services, and focusing committee forward agendas on COVID-19-related efforts. TBS is also working with SSC and Public Safety Canada to identify critical service interdependencies, including between services identified in departmental service inventories, critical services and the supporting IT systems.

The Office of the Chief Human Resources Officer has developed a remote working toolkit, available to all federal public servants, providing helpful advice, tips, and tricks to both existing and new public servants. This toolkit touches on areas including (but not limited to):

  • mental health
  • setting up your workspace
  • communications with your colleagues
  • official languages

34. Security and information management during COVID-19

Issue

In the context of the COVID-19 pandemic and a large portion of the public service working from home, concerns have been raised regarding potential risks associated with security and information management.

Key facts

  • In the early months of the COVID-19 pandemic, many organizations limited remote network access to address the increased number of employees working remotely, with some organizations using third-party collaboration tools like Zoom to carry out virtual meetings, as well as to share unclassified information and complete work-related tasks.
  • In her letters to the President of the Treasury Board on April 2, 2020, and April 28, 2020, the Information Commissioner of Canada reminded the government of the importance of documenting decisions and proactively disclosing data during these extraordinary times.
  • On May 5, the President of the Treasury Board and the Information Commissioner of Canada met to discuss the impacts of the COVID-19 pandemic on access to information and information management in the Government of Canada.
  • On June 3, the President sent a letter responding to the Information Commissioner’s recommendations shared on April 28, 2020, concerning the ATI system, recognizing the importance of adhering to best practices in information management and mentioning upcoming plans the GC has to better support information practices across government.
  • TBS will release an updated version of the Guideline on Service and Digital in November 2020 that will provide organizations with the most current advice and guidance for the strategic management of information and data.

Response

  • The government remains committed to managing information securely and effectively, in accordance with its sensitivity, while ensuring transparency, openness and accountability to Canadians.
  • All public servants are expected to manage, secure, and document information according to legislative requirements and Treasury Board policies, whether working on-site, or remotely, and regardless of the tools they use.
  • Tools that are publicly available can only be used for unclassified, non-sensitive discussions that would be otherwise permitted in an open, public setting. 
  • We are currently reviewing and updating all information management (IM) policy instruments and identifying where new requirements are needed so we ensure that we have the right set of rules in place for managing information in the digital age, whether working remotely or in the office.
  • Robust systems and tools are in place to monitor, detect and investigate potential cyber-security threats, including compromised information that may result from working remotely.

Background

Government of Canada employees were reminded of the requirements to manage information securely and effectively in accordance with its sensitivity and all relevant policy and legislative requirements while working remotely. These requirements are set out in legislation, including the Library and Archives Act, as well as in Treasury Board policy instruments, including the Policy and Directive on Service and Digital, and the PGS, including the Directive on Security Management.

These requirements include the obligation of employees to document decisions and activities of business value. This includes information, regardless of medium or form, which is created or acquired because it enables and documents decision-making in support of programs, services and ongoing operations, or supports departmental reporting, performance and accountability requirements. Information of business value, no matter where it is created or collected, is required to be transferred to and stored in the appropriate organizational corporate repository.

Employees are also required to ensure the security and proper handling of sensitive information, consistent with the security categorization of the information, as outlined in the PGS instruments. This means respecting security markings, and making sure that appropriate tools, devices and methods are used to store, transmit, use and protect the information. In the case of third-party applications, such as Zoom and Google Drives, their use is acceptable for unclassified information. Employees have been reminded to use approved GC tools and services for collaboration and communication, such as Office 365, MS Teams, and GC Tools, wherever possible.

Further, TBS is currently reviewing and updating all information management (IM) policy instruments from the former Policy on Information Management, as well as identifying areas where new IM policy requirements may be needed, to ensure that we have the right requirements in place for managing information in the digital age, whether working remotely or in the office.

TBS will release an updated version of the Guideline on Service and Digital in November 2020 that will provide organizations with the most current advice and guidance for the strategic management of information and data.

TBS continues to provide guidance to organizations on information management and security. We released the guidance entitled “Managing information while working remotely” as well as a toolkit to further guide employees in managing government information when working remotely. The toolkit has been updated regularly since its initial release to ensure it provides the most relevant and up-to-date guidance on managing information when working remotely.

35. Business continuity management

Issue

How is the Government of Canada responding to the impacts of COVID-19 on its employees and the health and safety of Canadians, including ensuring continuity and availability of critical services to Canadians through Business Continuity Management (BCM) practices.

Key facts

  • As of October 1, 2020, 249 critical services (CS) were identified across 49 of the 107 departments and agencies subject to the Policy on Government Security (PGS).
  • A key component of business continuity is critical services which are defined in the PGS as: “a service or activity whose disruption would result in a high or very high degree of injury to the health, safety, security or economic well-being of Canadians or to the effective functioning of the Government of Canada.”
  • During the initial response to COVID-19, 39 departments/agencies activated business continuity plans to focus on continued delivery of their identified critical services.
  • Overall, departments demonstrated significant responsiveness and adaptability. Issues noted included inconsistent network connectivity (due to the remote working arrangements), a need for alignment between critical services and critical IT systems/applications, and a need for increased GC situational awareness.

Response

  • The COVID-19 pandemic has demonstrated the government’s capacity to deliver trusted programs and services to Canadians.
  • The Policy on Government Security includes requirements for organizations to develop and maintain Business Continuity Plans (BCPs), and they were asked to ensure their plans are up to date for any possible disruption.
  • Throughout the COVID-19 pandemic, the government has continued to deliver critical programs and services, including developing, and ensuring quick access to, new emergency financial supports.
  • In parallel to the continued delivery of critical services, departments and agencies are working to achieve the timely recovery of other services and activities as the situation evolves.
  • In collaboration with Public Safety, TBS is assessing the BCM response to COVID-19 to inform future BCM practices, preparedness, and response from a whole-of-government perspective and to support the ongoing trusted delivery of critical services to Canadians during significant events.

Background

Business continuity management

TBS’s Policy on Government Security (PGS) applies to 107 departments and agencies and sets out mandatory requirements for Business Continuity Management (BCM), including:

  • establishing governance, authorities and responsibilities for the departmental Business Continuity Plan (BCP) program
  • identifying and prioritizing departmental critical services and assets using a business impact analysis (BIA) process
  • developing, testing/exercising and maintaining related BCPs

BCPs must also support the ability to maintain an acceptable level of delivery of critical services and activities in the event of disruption (including, for example, a pandemic), and the ability of the organization to achieve timely recovery of other services and activities in the event of a disruption.

Public Safety Canada (PS) is identified in the PGS as the Lead Security Agency (and technical guidance lead) for BCM within the Government of Canada.

TBS and PS are undertaking a Capability Improvement Process, including developing an “After Action Report” to inform and evolve the Government of Canada’s Business Continuity Management policy approach, while at the same time looking forward to a future state of CS readiness.

Critical services list for the Government of Canada

A key component of business continuity is the identification of departmental critical services, defined in the PGS as: “a service or activity whose disruption would result in a high or very high degree of injury to the health, safety, security or economic well-being of Canadians or to the effective functioning of the Government of Canada.”

TBS has worked with departments to establish a GC Critical Services List, inclusive of the COVID-19 context, including additional exceptional measures to support Canadians.

The list will continue to evolve in response to government priorities and to inform strategic decision-making and discussions, as well as to inform prioritization efforts of enterprise service providers such as SSC.

PS mapped interdependencies (identifying assets including IT, facilities and HR which directly support the CS) to support continued delivery of critical services, working closely with TBS.

TBS, PS and SSC are collaborating on a life-cycle management framework to align and evergreen CS data with the overarching GC Service Inventory, including developing a methodology to weight and prioritize CS using a GC lens ,including strengthening the linkages between CS and critical IT systems/applications.

Current picture of GC critical services

As of October 1st, 249 critical services were identified across 49 of the 107 departments subject to the PGS.

This work complements other components of the COVID response, including the efforts of the Government Operations Centre, the GC Pandemic Plan, Guidance for Essential Services in Critical Infrastructure Sectors, and ongoing advice from the Chief Human Resources Officer.

The COVID-19 pandemic clearly demonstrates the importance of an evergreen Critical Services List and continued business continuity readiness in strengthening the resiliency of government to ensure continued trusted delivery of government services to Canadians during significant events/disruption.

Public servants: general

36. Collective bargaining

Issue

Is this the right time for the government to be negotiating new collective agreements for public servants?

Key facts

  • Negotiations with most bargaining agents have been ongoing since 2018 and TBS, as the employer, continues to have a duty to bargain in good faith with all bargaining agents. As of July 2020, the government has concluded 6 tentative agreements and has signed 5 new collective agreements. Once all these agreements are signed, the government will have reached 46 agreements that cover nearly 224,000 or more than 80% of federal public service employees in the core public administration and separate agencies.
  • Negotiations with the Border Services (FB) group, represented by the Public Services Alliance of Canada (PSAC), and RCMP members and reservists, represented by the National Police Federation, are ongoing. In addition, negotiations are ongoing between the PSAC and seven separate agencies, including the National Capital Commission (NCC), the Office of the Auditor General (OAG) and the Communications Security Establishment (CSE).
  • As well, a Public Interest Commission process was conducted for the IT professionals (CS group) represented by the Professional Institute of the Public Service of Canada (PIPSC). A PIC report for this group was released in September 2020 and is favourable to the government’s current bargaining strategy. The government tabled a final comprehensive offer to the bargaining agent on November 3, 2020, and PIPSC has decided to ask its members to vote on this offer.

Response

  • The Government of Canada remains committed to reaching agreements with all bargaining agents that are fair to employees, mindful of today’s economic and fiscal context and reasonable for Canadians.
  • Subject to ratification, we have concluded collective agreements covering more than 80% of public servants for this round of bargaining.
  • We have also participated fully in the work of Public Interest Commissions where negotiations have led us to that step.
  • Recognizing the impact the COVID-19 pandemic has had on the economy, and uncertainty in the economic outlook, most of the recent tentative agreements cover a three-year period ending in 2021, rather than the four-year period of agreements reached prior to July 2020.
  • Economic increases in the first two years of these tentative agreements are reflective of the relatively strong economic environment in 2018 and 2019, while a lower economic increase was agreed to for the third year of the agreements, recognizing reduced economic growth for 2020 and early 2021.
  • We continue to take constructive steps to advance negotiations while taking our economic reality into account.

Background

  • Between July 9 and November 13, 2020, the government concluded 11 tentative agreements in the context of the 2018 round of bargaining. Once ratified, the government will have reached 46 agreements with groups covering close to 224,000 employees or over 80% of public servants in the core public administration (CPA) and separate agencies – out of the 61 agreements across the public service.
  • All 11 agreements include pattern economic increases, new provisions for caregiver leave, extended parental leave, and a memorandum of Understanding (MOU) on the implementation of collective agreements. Ten of the agreements also include up to 10 days of paid leave for domestic violence [redacted]
  • As of November 19, 2020, bargaining agents have declared impasse for nine groups in the CPA and separate agencies. All third-party processes (Public Interest Commission (PIC)) are concluded and the reports have been released. Eight of these groups are represented by the Public Service Alliance of Canada (PSAC) and one by the Professional Institute of the Public Service of Canada (PIPSC). Of these only the Communications Security Establishment (CSE) represented by PSAC and the Computer Services (CS) group represented by PIPSC have not come to a tentative agreement.
  • The bargaining agents cannot strike until seven days after the issuance of the PIC report, the conduct of a strike vote, and after 30 clear days have passed, as specified in the FPSLRA, following the establishment of an Essential Services Agreement (ESA). Of the two groups that remain outstanding CSE has signed an ESA and the Computer Systems (CS) group has not. The PSAC suspended all strike vote activity in mid-March 2020 in light of the COVID-19 pandemic and most of its groups have arrived at tentative agreements.
  • The government will prepare for all possible outcomes, including failure to reach an agreement. TBS, departments and agencies are ensuring that there are contingencies in place, including ESAs, should labour action be taken by the bargaining agents.
Core public administration

The PIC report for the CS group represented by the PIPSC was released on September 10, 2020. The government tabled a final comprehensive offer to the bargaining agent on November 3, 2020, and PIPSC has decided to ask its members to vote on this offer.

Negotiations with the Border Services (FB) group, represented by the PSAC are ongoing.

Separate agencies

The PIC hearings for four separate agencies have taken place and reports have been issued:

  • The Canada Revenue Agency and the PSAC’s Union of Taxation Employees concluded a tentative agreement on July 24, 2020. This agreement was ratified on September 29 and signed on November 13, 2020.
  • The Canadian Food Inspection Agency and Public Service Alliance of Canada reached a tentative agreement on September 2, 2020, for its employees represented by the Union of Agriculture. This agreement was ratified on November 4, 2020.
  • The Parks Canada Agency and the Public Service Alliance of Canada reached a tentative agreement on September 4, 2020. This agreement was ratified on November 4, 2020.
  • The PIC hearing with the CSE and PSAC took place from June 2 to 3, 2020. The PIC report was issued on June 23, 2020. Negotiations between the parties are ongoing.

37. Phoenix damages

Issue

In June 2019, the Government of Canada announced that it signed a joint agreement with bargaining agents, with the exception of the Public Service Alliance of Canada (PSAC), to compensate employees (current and former) who may have been impacted by the Phoenix pay system. To date, the Government of Canada has provided general compensation to eligible employees, put in place a general compensation claims process for former employees, and launched a claims process for those who had financial costs and lost investment income as a result of pay issues.

A separate agreement was negotiated with PSAC which was ratified on October 23, 2020.

Key facts

  • In June 2019, the Government of Canada and a number of public service unions finalized an agreement to compensate employees, current and former, who were impacted by the Phoenix pay system.
  • Some elements of the agreement have already been implemented and implementation of the remaining provisions will be done in December 2020.
  • The PSAC agreement is similar to the 2019 agreement with the exception of general damages provided to employees which consist of cash payments instead of leave credits as well as additional compensation for the late implementation of the 2014 collective agreements.
  • The June 2019 agreement contains a catch-up clause for the inclusion of provisions which are more generous in the PSAC agreement. The parties to the June 2019 agreement will begin negotiations shortly related to those provisions.

Response

  • All public servants deserve to be accurately paid for their work, and the Government of Canada continues to take action on all fronts to resolve pay issues.
  • We recognize that the implementation of the Phoenix pay system has had an impact, directly or indirectly, on employees.
  • These agreements aim to compensate employees for damages caused by the Phoenix pay system in the core public administration and separate agencies.
  • The agreement reached with bargaining agents (with the exception of PSAC) in 2019 applies to up to 121,000 current and 25,000 former employees.
  • The more recent agreement reached with PSAC, in 2020, will apply to up to
    168,000 current and 53,000 former employees.
  • As part of both agreements, there are measures to help those who had financial costs and lost investment income, in addition to the provision of general compensation.
  • Individuals who have filed claims under the June 2019 agreement are seeing those claims for compensation processed and have seen their leave banks credited by up to 5 days.
  • The infrastructure for the June 2019 agreement will be replicated for the implementation of the PSAC agreement.

Background

In May 2019, the Government of Canada reached a tentative agreement with members of the Senior Level Phoenix Union-Management subcommittee on damages for compensation for employees impacted by the implementation of the Phoenix Pay system. This agreement was ratified in June 2019 by all federal government bargaining agents except the PSAC. Separate agencies have signed similar agreements covering their employees (except those represented by PSAC).

The Public Service Alliance of Canada (PSAC) rejected the agreement, stating the compensation was insufficient.

June 2019 Damages Agreement (all bargaining agents except PSAC)

The agreement includes 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.

Additional compensation, evaluated on a case-by-case basis, is provided for those who missed opportunities to earn interest on savings accounts or other investments, experienced delays in receiving severance or pension payments, and/or experienced severe personal or financial hardship due to Phoenix pay issues.

In 2019, federal organizations credited eligible employees with four days, and one additional day for the 2019–20 fiscal year was credited in July 2020 to current employees. This leave represents general compensation for financial and/or non-financial damages caused by Phoenix, including but not limited to general stress, aggravation and lost time.

Treasury Board of Canada Secretariat collaborated with bargaining agents and worked to launch in November 2019 an online claims process by which former employees can request a payment for general compensation for damages, which is a payment equivalent to the leave credited to current employees. These former employees can now go online and access what is owed to them.

In February 2020, assessment processes were added to provide compensation to current and former employees for financial costs or lost investment income.

An assessment process for claims related to severe personal or financial hardship is expected to be launched in December 2020.

2020 PSAC Damages Agreement

The PSAC agreement is similar to the June 2019 agreement with the exception of the general damages provided to employees which consist of cash payments of up to $2,500 instead of leave credits. This includes an additional lump sum of up to $1,000 for the late implementation of the 2014 collective agreements.

The other claims processes for financial costs or lost investment income as well as severe personal or financial hardship are identical.

General compensation for the PSAC agreement will be provided to current employees in 2021 as the process is being finalized and the other claims processes will be launched at a later date.

As the infrastructure is already in place for the June 2019 agreement, additional resources have been budgeted for the implementation of the PSAC agreement.

38. Next Generation HR and Pay Initiative

Issue

Update on the Next Generation HR and Pay Initiative

Key facts

  • In March 2020, after extensive evaluation, and testing, the government announced that SAP had been selected to work with our team on a pilot for a new Human Resources and Pay solution.
  • The NextGen team at SSC has engaged SAP on a series of discussions to assess organizational capacity and readiness to work on NextGen under the current COVID-19 circumstances.
  • On October 14, 2020, the selection of the Department of Canadian Heritage for the first exploratory phase of the Next Generation HR and Pay project was announced. The exploratory phase is expected to last approximately six months; however, this timeframe could be shortened or lengthened depending on the findings.

Response

  • We continue to work towards a long-term and sustainable HR and pay solution to meet the diverse needs of federal employees across Canada.
  • The government has committed $117 million to co-design and deliver pilot projects to test solutions against the real complexity of federal government HR and pay needs.
  • In March 2020, the Government of Canada announced SAP as the vendor selected to begin exploratory work on a new Human Resources and Pay solution.
  • Effective April 1, 2020, leadership for NextGen was transitioned from Treasury Board of Canada Secretariat to Shared Services Canada because of its expertise and experience in the delivery of enterprise solutions.
  • The Chief Human Resources Officer at Treasury Board Secretariat remains the Business Owner and a key collaborator of the NextGen initiative.
  • The Department of Canadian Heritage has been selected for the first exploratory phase of the NextGen project.
  • The NextGen team will work collaboratively with Canadian Heritage and SAP to test solutions for a reliable, integrated HR and pay solution for the Government of Canada while keeping the people who will be using this new system at the core of our mandate.
  • Knowledge and results from this phase will help inform and define the way forward. Employees’ pay will not be affected. The exploratory phase will take place in a controlled environment that is separate from Phoenix.
  • This important work continues under the current COVID-19 circumstances.

Background

Budget 2018 announced the government’s intention to move away from Phoenix and begin development of a pay system that will be better aligned with the complexity of the federal government’s human resources and pay structure.
TBS received $16 million over two years, beginning in 2018–19, to explore replacement options for a next generation human resources and pay solution.

In September 2019, the government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.

In March 2020, after extensive evaluation, and testing, it was announced that SAP had been selected to work with our team on a pilot for a new Human Resources and Pay solution.

The NextGen team at SSC engaged SAP on a series of discussions to assess organizational capacity and readiness to work on NextGen under the current COVID-19 circumstances.

Initial focus of work with SAP included establishing governance and oversight, project management tools and protocols and development of a detailed plan to pilot the solution in a core department.

Effective April 1, 2020, leadership for NextGen was transitioned from Treasury Board of Canada Secretariat to Shared Services Canada. The Chief Human Resources Officer at Treasury Board Secretariat remains the Business Owner and a key collaborator of the NextGen initiative.

On October  14, 2020, the selection of the Department of Canadian Heritage for the first exploratory phase of the Next Generation HR and Pay project was announced.

The government will work with the selected vendor (SAP) and the Department of Canadian Heritage to develop a business case, privacy impact assessment, change management and other planning considerations to learn how a future HR and pay solution can integrate information from multiple compensation-related HR systems.

Canadian Heritage was selected as the first exploratory phase department because their organization provides a good representation of the government’s human resources complexities, including multiple occupational groups, regional representation, overtime, and other considerations.

The exploratory phase will not affect employees’ pay. It will occur in a controlled environment that is separate from Phoenix. Canadian Heritage employees will continue to be paid through the Phoenix pay system while testing is completed.

The government continues to work with stakeholders, such as bargaining agents, employees, and HR and pay practitioners, and will continue to engage in an open and transparent manner, so that the new solution can address the needs of a modern public service and its employees as soon as possible.

Ongoing stabilization of the Phoenix Pay System remains a top priority for the government and is being pursued by Public Services and Procurement Canada.

39. Public Service Health Care Plan (PSHCP) negotiations

Issue

Negotiations for the Public Service Healthcare Plan (PSHCP) were delayed due to the COVID-19 pandemic. Bargaining agents and retiree representatives signalled a desire to launch formal negotiations in a letter dated September 11, 2020, to the President of the Treasury Board from the National Joint Council (NJC).

Key facts

  • The PSHCP is an employer-sponsored health care plan that offers health benefits to approximately 1.5 million Canadians, comprised of federal public service employees, retirees and their dependants.
  • The PSHCP is negotiated with bargaining agents and retiree representatives at the PSHCP Partners Committee, under the umbrella of the NJC.
  • The PSHCP was last renewed in 2014.
  • [redacted] This increase is largely due to rising benefit costs, changes to economic assumptions and demographics, and the growing size of the public service.

Response: PSHCP renewal

  • The government is committed to ensuring the long-term sustainability of the PSHCP amid growing external cost pressures and the fundamental requirement to support the health and well-being of its employees.
  • The Government of Canada also remains committed to good faith bargaining and reaching a financially sustainable agreement with bargaining agents on a modernized PSHCP that is fair to employees, mindful of today’s economic and fiscal context and provides value for Canadians.
  • In consultation with bargaining agents and retiree representatives, the government is reviewing the PSHCP provisions to identify areas where adjustments could be made in order to better align with similar employer-sponsored plans and industry best practices.
  • Our goal is to take constructive steps to advance negotiations as soon as possible and our approach to these negotiations will be rooted in the economic state of the country, which has changed dramatically with COVID-19.
  • The new realities we face in light of the pandemic will need to be taken into consideration as we move forward with negotiations for a modernized PSHCP.
  • We must consider the valuable work provided by public servants in support of Canadians while also recognizing the very difficult circumstances created by the global pandemic.

Background

The PSHCP is negotiated with bargaining agents and retiree representatives at the PSHCP Partners Committee, under the umbrella of the National Joint Council (NJC). Once consensus is reached, the Partners Committee formulates a joint recommendation for consideration. The President of the Treasury Board will then present the proposal to the Treasury Board, the final authority to approve the PSHCP benefit changes pursuant to subsection 7.1(1) of the Financial Administration Act.

The PSHCP was last renewed in 2014. In anticipation of upcoming negotiations, a benchmarking study was commissioned by the PSHCP Partners Committee. The two studies, as well as costing of possible PSHCP benefit changes, were completed in fall 2019. These studies provide a framework to establish recommendations that will help update the PSHCP.

[redacted] This increase is largely due to rising benefit costs, changes to economic and demographic assumptions, and the growing size of the public service. The PSHCP requires modernization to remain sustainable and comparable with similar employer-sponsored plans.

The PSHCP renewal discussion had continued at the PSHCP Partners Committee without prejudice, pending an approved negotiations mandate. However, discussions were put on hold due to the COVID-19 pandemic.

During the pandemic, PSHCP temporary measures were introduced to help PSHCP members and eligible dependants access health care benefits while at the same time minimizing social interaction with health care professionals. It is anticipated the bargaining agents may want some of the COVID-19-related temporary measures to become permanent (such as expanded mental health service providers and removal of physician prescription requirements).

On September 11, 2020, bargaining agent and retiree representatives signalled a desire to launch formal negotiations. This desire was outlined in a formal letter sent to the President of the Treasury Board from Dany Richard, NJC Co-Chair (bargaining agent side).

On September 23, 2020, the Speech from the Throne signalled steps would be taken to establish a national pharmacare strategy. Depending on how this program is implemented, significant long-term savings could be achieved under the prescription drug portion of employer-sponsored health benefit plans such as the PSHCP.

40. Duty to accommodate

Issue

The employer has a legal obligation to accommodate an individual’s needs when they stem from one or more grounds of discrimination under the Canadian Human Rights Act. This obligation remains when employees are required to work from a remote location.

Key facts

  • Under the Canadian Human Rights Act, employers are responsible for the accommodation of their employees, unless undue hardship, including in respect of health and safety, does not permit it.
  • In addition, the Accessible Canada Act requires all federally regulated institutions to eliminate and avoid the creation of barriers faced by persons with disabilities, in seven areas of activity, such as employment.
  • TBS provides guidance to core public administration organizations on their ongoing responsibilities under the Policy on People Management and the Directive on Duty to Accommodate.
  • Specific guidance has been developed to assist managers and employees in navigating the challenges in equipping and accommodating employees working remotely.
  • In general, accommodation requests should be considered on a case-by-case basis, to ensure employees have access to the tools and support measures they need to succeed in their jobs regardless of where they are working.
  • Managers are encouraged to have open and constructive conversations with their employees about their accommodation needs and to streamline any administrative processes related to the provision of these accommodations.

Response

  • The government’s people management policies aim to ensure that the public service is high performing, and that employees are appropriately equipped and able to contribute to their full potential to serve Canadians.
  • Managers should make every effort to create an inclusive work environment for all their employees and to provide them with the tools and supports they need to carry out their responsibilities.
  • The exceptional circumstances of a global pandemic led us to examine and modify how we proceed to ensure we continue to meet our Duty to Accommodate obligations.
  • Managers and employees must consider every possible option to accommodate their employees, and, across the public service, departments are responding by providing employees with equipment to work remotely while safeguarding their health and safety. This includes ensuring employees are appropriately accommodated on a case-by-case basis.
  • The Treasury Board of Canada Secretariat is also providing guidance to managers on inclusive virtual meetings and the use of various communications technologies.

Background

The Treasury Board Policy on People Management and Directive on the Duty to Accommodate outline the requirements for core public administration organizations develop an inclusive, barrier‑free workplace in which all persons have equal access to opportunities in the core public administration. On April 1, 2020, the directive was updated to expand the coverage to all employees including other equity seeking groups and not just persons with disabilities.

These policies aim at ensuring that the public service is high performing and that the talents of each employee can be best utilized to serve Canadians.

A Benchmarking Study of Workplace Accommodation Practices in the Federal Public Service (published in May 2020) was conducted to gather critical feedback from employees and their managers about the process of requesting an accommodation for persons with a disability. The Study identified the areas that need improvement, with the overall goal of improving the accommodation process to ensure all employees are appropriately equipped and able to contribute to their full potential. The results from this Study will inform the work ahead, in order to ensure that employees can receive accommodations efficiently and in a timely manner, with the ultimate objective of creating an accessible and inclusive workplace for all federal public servants.

In the context of the COVID-19 pandemic, the obligation to accommodate an employee, up to the point of undue hardship, remains the same whether the employee works at their workplace or from a remote location. Specific guidance on the Duty to Accommodate and equipping employees for remote work was published in August and is available as part of the Guidebook for departments on easing of restrictions on Canada.ca.

Office of the Auditor General

41. Funding for the Office of the Auditor General

Issue

Concerns about the adequacy of funding for the Office of Auditor General have been raised by the Office and by Parliamentarians.

Key facts

Office of the Auditor General: Reference levels as reflected in Main Estimates

2014–15 2015–16 2016–17 2017–18 2018–19table 1 note * 2019–20 2020–21
77,741,830 78,295,020 78,533,732 77,501,971 78,224,516 88,238,296 87,906,474

Table 1 Notes

Table 1 Note 1

This does not reflect additional in-year funding received in 2018–19

Return to table 1 note * referrer

Response

  • The Government of Canada is committed to supporting the important and ongoing work of the Auditor General.
  • The OAG’s reference levels were increased by $8.3 million in 2018–19 to improve the Office’s financial audit capacity in response to an increase in the volume and complexity of government operations and transactions.
  • The increase was in response to the OAG’s request and was announced in Budget 2018.
  • Of that amount, $7.8M was for personnel (38 new FTEs), operating costs (IT systems, travel) and Employee Benefit Plans, and $0.5M was for the 13% PSPC Accommodation premium for office space.
  • When an Officer of Parliament, such as the Auditor General, identifies the need for additional resources, they must make their request to the government.
  • The government considers these requests carefully to ensure that the Office can continue to fulfill its mandate efficiently and effectively.

Background

The OAG’s reference levels were increased by $8.3 million in 2018–19 to improve the Office’s financial audit capacity to respond to an increase in the volume and complexity of government operations and transactions.

This funding contributed to ensuring that the Office continues to meet service standards, provide accurate and timely audit information, and renew its self-managed IT systems. As a result, the OAG’s FTEs increased by 7% or 38 FTEs. Of the 38 new FTEs, 28 were for audit operations, and 10 were IT technical staff.

To receive additional funding, the Office of the Auditor General would need to make a request through the Minister of Finance. The Office would then work with the Treasury Board Secretariat to develop a submission to seek the necessary authorities to access the funding approved.

OAG officials have been vocal in committee for some time and have reiterated their complaint in the context of COVID-19, saying that the lack of funding for the Office has left them no choice but to delay work on most audits as the pandemic adds new demands on the resource-stretched Office.

A news article in iPolitics published on May 12, 2020, states that “the office is requesting $10.8 million in new funding in order to meet new demand and modernize. It currently has a budget of about $88 million, employing about 575 people. The Liberal government provided $8.2 million more annually in 2018 but a request in 2019 fell on deaf ears.”

Long-term care facilities

42. Revera Inc.: Public Sector Pension Investment Board

Issue

Various media outlets have published articles about the Public Service Pension Investment Board (PSPIB) and its relationship with Revera Inc., a company that runs long-term care and senior housing retirement residences in Canada, the United States and the United Kingdom. The company is currently facing a class-action lawsuit related to deaths as a result of COVID-19.

The Ontario Health Coalition held a town hall on September 17 to discuss ending the for-profit privatization of long-term care, with specific reference to Revera. They also planned a Day of Action on Long-term Care across Ontario on October 8. On November 19, the NDP leader was joined by PSAC and other bargaining agents to answer questions from the media on Revera Inc. and long-term care facilities. These activities have resulted in media coverage and increased attention on the PSPIB’s management of Revera.

Key facts

  • The Public Sector Pension Investment Board (PSPIB) is a Crown corporation established under the Public Sector Pension Investment Board Act (act), and its reports are tabled each year in Parliament.
  • There is an established and merit-based process for nominating members to the Board of Directors of the PSPIB. The President of the Treasury Board appoints members based on recommendations from a Nominating Committee.
  • Revera is a wholly owned operating subsidiary of the PSPIB and is governed by a board of directors appointed by the PSPIB.
  • As of June 2, the Ontario Government had taken over the management of one of the Revera long-term care facilities (Forest Heights) for a period of 90 days.
  • On November 8, the Manitoba Government indicated that it will launch an independent investigation into two of Revera’s Winnipeg properties that have been the sites of some of the province’s biggest COVID-19 outbreaks.

Response

  • The federal government underlined its commitment to Canada’s seniors and to setting new national standards for long-term care in the most recent Speech from the Throne so that we can ensure that seniors are safe, respected and can live with dignity.
  • The Public Sector Pension Investment Board (PSPIB) operates at arm’s length from the federal government. It is not part of the federal public administration and its multi-billion-dollar business and affairs are managed by a board of directors.
  • The mandate of the PSPIB is to invest net proceeds from the contributions of the public service, Canadian Armed Forces, Reserve Force, and Royal Canadian Mounted Police pension plans in capital markets, in the best interests of the contributors and beneficiaries under those Acts.
  • Revera is a wholly owned operating subsidiary of PSPIB, registered under the Canada Business Corporations Act. PSPIB is responsible for appointing its board of directors, who are, in turn, responsible for Revera’s operations.
  • We are aware of reports of legal action against this company and cannot comment further on matters before the courts.

Background

Revera Inc. has been a wholly owned subsidiary of the PSPIB (also known commercially as PSP Investments) since 2007. The PSPIB is a Crown corporation established by Parliament by the Public Sector Pension Investment Board Act in 1999. The PSPIB reports to Parliament through the President of the Treasury Board, who is responsible for PSPIB’s legislation, and includes certain information about Revera Inc. in its annual report.

The PSPIB operates at arm’s length from the federal government. It is not an agent of Her Majesty and its business affairs are governed by a 11-member Board of Directors. Since April 1, 2000, the PSPIB has been investing the amounts transferred by the Government of Canada on behalf of the pension plans for the public service, the Canadian Armed Forces – Regular, the Canadian Armed Forces – Reserve (since its establishment on March 1, 2007), and the Royal Canadian Mounted Police.

The Treasury Board of Canada Secretariat does not recommend the appointees to the PSPIB Board of Directors to the President, however, it does play the role of the secretariat to the Nominating Committee for the PSPIB. Qualified candidates are recommended to the President by this Nominating Committee.

Pursuant to the Public Sector Pension Investment Board Act, the President of the Treasury Board is responsible for establishing a Nominating Committee whose mandate is to establish a list of qualified candidates for proposed appointment as a director of the board of the PSPIB. The Chairperson is appointed by the President of the Treasury Board after he or she has consulted with the Ministers of National Defence and Public Safety. Upon recommendation of qualified candidates by the Nominating Committee, the President of Treasury Board will make a recommendation for appointment to the Governor in Council.

Revera Inc. is an owner, operator and investor in the senior living sector. Through its portfolio of partnerships, Revera owns or operates more than 500 properties across Canada, the United States and the United Kingdom, offering seniors’ apartments, independent living, assisted living, memory care, and long-term care.

On September 17, 2020, the Ontario Hospital Coalition organized a town hall in Ottawa to discuss the need to improve long-term care. They also organized a day of action on October 8 in Toronto outside Queen’s Park and across Ontario outside MPPs offices. The intention of the day of action was to create political pressure to expose the lack of action to improve care in long-term care and to push for an end to for-profit privatization of long-term care.

The Public Service Alliance of Canada raised a question at the annual Pension Advisory Committee on September 25 regarding risk assessments. This meeting consisted of members from three advisory committees, which are the Public Service Pension Advisory Committee (PSPAC), the Canadian Forces Pension Advisory Committee (CFPAC) and the Royal Canadian Mounted Police Pension Committee (RCMPPAC). These committees consist of members from the respective federal departments, nominated bargaining agent representatives from the National Joint Council as well as Pensioners’ representative.

On November 19, the leader of the NDP, Jagmeet Singh held a press conference with representatives of PSAC and other bargaining agents to criticize the government’s handling of Revera and other long-term care facilities.

On September 23, the Speech from Throne committed the government to working with the provinces and territories to set new, national standards for long-term care so that seniors get the best support possible.

Conflict of interest

43. The Conflict of Interest Act and safeguards related to procurement

Issue

The Conflict of Interest Act required a one-time statutory review which was completed in 2014.

Key facts

  • The Conflict of Interest Act is administered, interpreted, and enforced by the Conflict of Interest and Ethics Commissioner, an independent officer of Parliament.
  • The President of the Treasury Board is the responsible minister for the Conflict of Interest Act.
  • The Conflict of Interest Act required a statutory review by a parliamentary committee. This review was completed in 2014 by the Standing Committee on Access to Information, Privacy and Ethics (ETHI). No further reviews are required by law.

Response

  • The government is committed to ensuring that federal public office holders carry out their duties with integrity and impartially.
  • The Conflict of Interest Act imposes rules to minimize the possibility of conflicts between private interests and the duties of public office holders.
  • The government is committed to open, fair and transparent contracts and real property agreements. It has a number of safeguards in place to address conflicts or potential conflicts within procurement, such as:
    • standard contract clauses
    • the requirement for evaluators to recuse themselves where there’s a real or perceived conflict of interest
    • a provision in the Directive on Transfer Payments stating that no current or former public servant or public office holder can derive direct benefit from a funding agreement
  • We welcome input from parliamentarians and the Commissioner on how well the Conflict of Interest Act is achieving its objectives.

Background

The Conflict of Interest Act establishes conflict of interest and post-employment rules for public office holders. Public office holders covered under the act include ministers, ministerial staff, and Governor in Council appointees such as deputy heads. The act plays an important role in maintaining public confidence in the integrity of public office holders and government decision-making.

The Conflict of Interest and Ethics Commissioner administers the Conflict of Interest Act by establishing compliance measures, investigating possible contraventions of the act, and providing advice to public office holders on their obligations. The Commissioner is an officer of Parliament. Officers of Parliament are independent from the government and report directly to Parliament. On January 9, 2018, Mario Dion was appointed as the second Conflict of Interest and Ethics Commissioner.

The Conflict of Interest Act came into force on July 9, 2007, which created, for the first time, a legislative regime governing the ethical conduct of public office holders. Prior to this date, public office holders were subject to non-statutory codes of conduct.

The Conflict of Interest Act required a one-time statutory review by a parliamentary committee. In 2014, the Standing Committee on Access to Information, Privacy and Ethics (ETHI) completed the review of the act. ETHI recommended some changes to the law, including expanding the act’s definition of public office holder, clarifying certain provisions, and adjusting the administration of the act. Later that year, a regulation was enacted to add new positions subject to the act (for example, Governor of the Bank of Canada). The act has not received any further substantive amendments.

There are also safeguards in place to address potential or actual conflicts of interest within procurement. These include standard contract clauses, the requirement for all proposals to be reviewed through a conflict of interest lens, and the need for evaluators to recuse themselves for real or possible conflicts. In addition, the Government of Canada has established a Code of Conduct for Procurement, an Integrity Regime, and utilize fairness monitoring to address conflicts of interest and unethical practices.

A provision is also included in the Directive on Transfer Payments, to ensure that no current or former public servant or public office holder can derive direct benefit from funding agreement. Furthermore, no member of the Senate or the House of Commons shall be admitted to any share or part of the agreement, or to any benefit arising from it, that is not otherwise available to the general public.

44. Directive on Conflict of Interest

Issue

In addition to the Conflict of Interest Act, the Treasury Board Directive on Conflict of Interest provides safeguards to prevent and resolve situations of conflict of interest in the public service.

Key facts

  • The Treasury Board Directive on Conflict of Interest, issued under the Policy on People Management, imposes requirements to minimize the risk of conflicts of interest and is a condition of employment for persons employed in the public service.
  • The Values and Ethics Code for the Public Sector is also a condition of employment for all public servants in the federal public sector, and it outlines the values and expected behaviours that guide public servants in all activities related to their professional duties.
  • The Office of the Chief Human Resources Officer supports the President of the Treasury Board in its role as the employer in the area of people management, and in its role to promote ethical practices in the public sector.

Response

  • The government is committed to promoting a positive and respectful public sector culture that is grounded in values and ethics, where federal public servants carry out their duties with integrity and impartially.
  • Pursuant to the Public Servants Disclosure Protection Act, the Values and Ethics Code for the Public Sector sets out measures to promote an ethical climate, including the public sector values and expected behaviours for all public servants.
  • The Treasury Board Directive on Conflict of Interest imposes requirements to minimize the possibility of conflicts between private interests and the duties of public servants.

Background

The Public Servants Disclosure Protection Act reflects the Government of Canada’s commitment to promote ethical practices in the federal public sector and foster a positive environment for the disclosure of wrongdoing. The act provides federal public sector employees with a secure and confidential process for disclosing serious wrongdoing in the workplace, and protects them from acts of reprisal.

On April 2, 2012, the Values and Ethics Code for the Public Sector was implemented in compliance with the requirement of Section 5 of the Public Servants Disclosure Protection Act. The code sets out measures to promote an ethical climate, including outlining the values and expected behaviours of public sector employees and replaces the Values and Ethics Code for the Public Service (2003).

Federal public sector organizations have each implemented organization-specific codes of conduct in compliance with the requirement of Section 6 of the Public Servants Disclosure Protection Act.

Compliance with the Values and Ethics Code for the Public Sector and organizational codes of conduct is a condition of employment for all federal public servants.

Under the Treasury Board (TB) Policy on People Management, the renewed TB Directive on Conflict of Interest came into effect April 1, 2020. The directive sets out the requirements for public servants to prevent and resolve conflict of interest situations. Compliance with the directive is a condition of employment for public servants employed within the core public administration, as defined by section 11(1) of the Financial Administration Act. Organizations outside the core public administration have their own conflict of interest policies with similar requirements to the TB Directive on Conflict of Interest.

Mandatory training is offered to all federal public servants, in order to ensure they understand their conditions of employment under the Values and Ethics Codes for the Public Sector and the Directive on Conflict of Interest. The mandatory training covers the areas of public servants’ disclosure protection, values and ethics, and conflict of interest, and is available to all public servants through the Canada School of Public Service.

Other directives and guidance: COVID-19

45. Directive on Disposal of Surplus Goods

Issue

The disposal of expired face masks and gloves and how these stocks are managed in accordance with Treasury Board policy.

Key facts

  • In April 2020, it was reported in the media that the Government of Canada disposed of 2 million N95 masks and 440,000 medical gloves from the National Emergency Strategic Stockpile (NESS) at the Regina warehouse operated by the Public Health Agency of Canada (PHAC).
  • The masks and gloves had been purchased in 2009 and had passed the limit of five years for their use, as recommended by the manufacturer.

Response

  • The Government of Canada’s top priority is the health and safety of Canadians.
  • Treasury Board policy requires that the National Emergency Strategic Stockpile (NESS) be reviewed regularly for expired, obsolete, or unusable items. Items are removed in order to protect the health and safety of Canadians.
  • The Public Health Agency of Canada (PHAC) will continue to explore ways to optimize product life cycle management and minimize the disposal of expired stock.
  • The government will review stockpile management to ensure we have the right system in place for health supplies to support Canadians in times of emergency.

Background

The Treasury Board Policy on Management of Materiel provides direction for the management of departmental materiel assets throughout their life cycle and seeks to ensure sound stewardship of the Crown’s materiel assets.

Additionally, the policy requires that a materiel management information system is in place that incorporates a risk-based stocktaking schedule and supports timely and informed materiel management decisions.

The associated Treasury Board Directive on Disposal of Surplus Materiel applies to items that are nearing end of life and are deemed surplus. These items could then be disposed of through transfer, donation, sale or conversion to waste. The directive provides options and flexibility to departments for transferring these surplus assets to organizations including other departments, other level of governments and not for profit agencies.

46. Administrative flexibilities during COVID-19

Issue

At the onset of the pandemic, the Treasury Board provided flexibility on policy requirements to ensure federal organizations could quickly execute response measures to deliver immediate and short-term outcomes for Canadians.

Key facts

  • Since March 2020, critical decisions and exceptional efforts by departments have been and are still needed to mobilize Canada’s collective emergency response.

Response

  • Since the onset of the pandemic, departments and agencies have been called upon to deliver programs and services with unprecedented urgency and speed.
  • Treasury Board acted to allow departments to orient maximum resources towards pandemic response and to provide greater flexibility to maintain the operations of government while the government responds to COVID-19. Actions included providing additional time for departments to submit investment plans, deferring the effective date of some requirements, and allowing certain ministers the time-limited ability to amend terms and conditions of select transfer payment programs.
  • In addition, the Treasury Board Secretariat provided policy guidance to deputy heads and functional communities on security, business continuity planning, human resources, procurement, digital services, access to information and privacy. Our goal was to provide departments the guidance they needed so our exceptional workforce could support emergency response measures and continue to provide the services Canadians rely on, under extraordinary circumstances.
  • Early in the crisis, deputy ministers were instructed to put a priority focus on achieving the goals of the government’s response measures. They were asked to use sound judgment in using maximum flexibility when applying Treasury Board administrative policies and exercising their authorities.
  • Accountability and transparency remain paramount: deputy heads were directed to ensure that the circumstances, rationale and process for decision-making were well documented.
  • This helps the government account for the decisions made during this crisis, including any non-standard applications of Treasury Board policy.
  • The Auditor General was informed of this direction.

Background

In mid-March 2020, as a result of COVID-19, several emergency measures were taken by Canadian jurisdictions, including closing schools, businesses, and public events. Provincial governments and the federal government grappled with the closure of workplaces and how to respond to the pandemic.

To expedite and streamline implementation of the government’s response and to support the departments in responding to the pandemic, certain existing processes needed to be modified or expedited, including the application of rules set out in the Treasury Board policy suite. Departments required flexibility to implement elements of the government’s response to COVID-19 under their respective mandates and to do so they needed flexibility to support collective government efforts.

Treasury Board delegated the approval of amendments and exceptions to Treasury Board policies to the President of the Treasury Board. The delegated authorities were in force until September 30, 2020, to align with the statutory authorities established through the COVID-19 Emergency Response Act and approved amendments and exceptions are generally in place until March 31, 2021.

The President of the Treasury Board, supported by the Secretariat, proposed these actions to support the continuing efficient operations of government to allow departments to orient maximum resources towards pandemic response and, to provide greater flexibility to maintain the operations of government while the government responds to COVID-19. [redacted]

Examples of these actions include:

  • an exception to the Policy on Transfer Payments, which allowed the Minister of Public Safety and Emergency Preparedness to sign a contribution agreement with the Canadian Red Cross to support immediate and future COVID-19-related needs
  • an exception for the recovery of advance payments to allow the delay of the recovery of advance payments in cases where a payment has already been made, but the supplier is not able to deliver the goods and/or services by March 31, 2020, as planned in the contract, due to the COVID-19 pandemic
  • extending the deadline for submission of new reporting requirements by one year including: the annual updated list of planned projects, the associated procurement strategies and the criteria used for prioritizing, and the collection of project baseline information for projects with total cost of $25M or greater

In addition, the Secretariat provided significant guidance to departments to provide greater clarity on a range of priorities including:

  • guidance providing updated direction to federal custodians on rent relief
  • guidance on mental health and COVID-19 resources for public servants to help equip employees, managers and executives in managing their mental health during the pandemic
  • guidance to fleet managers to Includes advice such as minimizing the use of all non-essential vehicles (such as administrative) to prevent the potential spread of COVID-19

Recognizing the challenges that departments and agencies were going to face in applying Treasury Board administrative policies not only in the delivery of emergency programs and initiatives, but in their day-to-day operations as they functioned at reduced capacity, the Treasury Board Secretariat provided supporting direction to deputies in March 2020.

47. Rent relief for federal commercial tenants

Issue

The nature and approach to providing rent relief to commercial tenants impacted by COVID-19 where the federal government is the landlord.

Key facts

  • The federal government acts as a landlord with about 3,000 commercial tenants from small businesses to large enterprises.
  • Many federal commercial tenants have requested relief due to hardship as a result of pandemic impacts.
  • The government’s Canada Emergency Commercial Rent Assistance (CECRA) program, in partnership with provinces and territories, provided 75% rent reductions to eligible commercial tenants with participating private sector landlords for the period of April to September 2020.
  • Federal landlords were expected to align with core CECRA criteria and provide rent reductions to their eligible commercial tenants.
  • Federal landlords have provided other rent relief in the form of deferrals of rents due.
  • The government has announced proposed new targeted support to help businesses through the pandemic, pending Parliamentary approval of legislation, including the Canada Emergency Rent Subsidy (CERS).

Response

  • The Government of Canada is taking strong and quick action to protect the health and safety of all Canadians, stabilize our economy, and help workers and businesses in the context of the COVID-19 pandemic.
  • The government is responding to the hardships faced by small businesses that are tenants in federal buildings or on federal lands.
  • Departments, agencies and Crown corporations have provided targeted rent relief to federal tenants since the beginning of the pandemic through rent deferrals.
  • On April 24, the Prime Minister announced that the new Canada Emergency Commercial Rent Assistance (CECRA) program will provide 75% rent reductions to eligible commercial tenants with private sector landlords for the months of April, May and June. It was then extended to the end of September.
  • Federal landlords aligned with core CECRA program criteria and provided similar arrangements for eligible small businesses, charities and not-for-profit tenants.
  • On October 9, 2020, the government announced proposed new targeted support to help businesses through the pandemic, including the new Canada Emergency Rent Subsidy (CERS).

Background

At least 25 federal entities lease space to about 3,000 commercial tenants. Most federal landlords have received requests from some tenants for some form of rent relief.

Rent relief can take the form of deferral (amounts can be paid later, but are still owed in full), or reduction (where amounts owed by tenants are reduced).

On March 31, the Treasury Board Secretariat (TBS) provided rent relief guidance to core departments and agencies to consider deferrals as a first step and target businesses in hardship (versus large enterprises). Crown corporations were urged to consider this guidance as well. Most departments and agencies took measures that aligned with this guidance.

After the Prime Minister’s announcement of CECRA details on April 24, the government indicated its desire that federal landlords, including Crown corporations, align with CECRA’s core program criteria. On May 28, the President of the Treasury Board of Canada wrote to Crown corporation portfolio ministers, requesting this alignment by agent Crown corporations, while self-funding non-agents were asked to apply directly to the program. On June 1, Parks Canada Agency announced a relief solution for its tenants that met and built on the intent of CECRA. On June 2, TBS issued guidance to aid departments in implementing the direction to align with the CECRA’S core criteria.

As the CECRA program parameters evolved, including extensions for the months of July, August, and September 2020, TBS issued subsequent guidance.

On October 9, 2020, the government announced proposed new targeted support to help businesses through the pandemic, including the new Canada Emergency Rent Subsidy (CERS). The CERS is intended to be directed towards tenants and, pending Parliamentary approval of legislation, is planned to be in place until June 2021. TBS is working with the Department of Finance to determine the implications of the planned CERS for federal landlords. On October 20, 2020, TBS issued guidance to address the interim situation where Deputy Heads may elect to defer rent in advance of further clarity on CERS.

48. Regulatory flexibility for Canadian businesses

Issue

Industry stakeholders have been reaching out to the Government of Canada to ask for guidance and support in addressing regulatory compliance challenges in light of the COVID-19 pandemic.

Key facts

  • TBS has asked that federal departments and agencies consider demonstrating flexibility across the regulatory cycle in developing, applying, and enforcing regulations, within their specific context, in consideration of the risk to the health, safety, and security of Canadians and the environment.
  • While TBS is continuing to prioritize issues related to COVID-19, departments and agencies are re-initiating work on regulatory initiatives underway prior to the pandemic that support the government’s mandate and that have an important impact on Canadians.
  • TBS has also encouraged departments and agencies to coordinate with their provincial and territorial counterparts, as well as horizontally with other regulators.

Response

  • The Government of Canada took strong and quick action to protect the health and safety of all Canadians, stabilize our economy, and help workers and businesses in the context of COVID-19.
  • The government continues to support Canadian businesses and industry who, as a result of the COVID-19 pandemic, are either facing hardship or bringing forth new products or services in support of Canada’s response plan.
  • We are exploring options under Canada’s regulatory system and implementing measures to help address some of the challenges that businesses face in complying with certain federal regulations.
  • We are taking a balanced, common sense approach in developing, applying and enforcing regulations in consideration of the risk to the health, safety and security of Canadians and the environment.
  • We are taking steps to ensure that new regulatory proposals or changes to existing regulations required to address the COVID-19 situation are given top priority, while also ensuring that non-COVID-19 regulatory proposals that are necessary and important continue to be addressed.

Background

To address challenges faced by stakeholders, TBS has asked that federal departments and agencies consider demonstrating flexibility across the regulatory cycle in developing, applying, and enforcing regulations, within their specific context, in consideration of the risk to the health, safety, and security of Canadians and the environment.

In considering flexibility, TBS has also encouraged departments and agencies to coordinate with their provincial and territorial counterparts, as well as horizontally with other regulators.

In addition, TBS is taking steps to ensure that new regulatory proposals or changes to existing regulations that are required to address the COVID-19 situation are given top priority. However, departments and agencies have advised that they have capacity to undertake more normalized operations and are seeking to advance other regulatory initiatives. TBS continues to work with departments to prioritize submissions and to ensure that stakeholder impact is considered in the context of the pandemic and economic situation.

49. Government of Canada protecting personal information during COVID-19

Issue

What is the government doing to protect the personal information of Canadians during the COVID-19 pandemic?

Key facts

  • The Privacy Act requires that government institutions protect Canadians’ personal information. TB Privacy policies and guidance support institutions to meet these obligations.
  • COVID-related initiatives, such as the COVID Alert app, have been designed to protect Canadians’ privacy.
  • In May 2020, TBS issued guidance to government institutions on the collection and disclosure of personal information from employees in relation to the management of the COVID-19 pandemic. Government institutions have legal authority to collect information from their employees in relation to the management of the COVID-19 pandemic under the Canada Labour Code.
  • In June 2020, TBS issued an Interim Privacy Policy and Directives to ensure privacy is protected while delivering on urgent COVID-19-related initiatives, such as enhanced border measures and quarantine call centres.

Response

  • The government is committed to protecting Canadians’ privacy as we navigate through the COVID-19 pandemic.
  • To support the government’s urgent response to the pandemic, the Treasury Board of Canada Secretariat has issued an Interim Privacy Policy and related Directives concerning privacy protection.
  • The Interim Policy and related Directives give the heads of government institutions the discretion to undertake a condensed, but still rigorous, analysis of privacy considerations to ensure privacy is protected in the implementation of urgent COVID-19 initiatives.
  • These measures have succeeded in ensuring that privacy is protected as we move forward with the urgent benefits and supports that Canada needs to manage and respond to the pandemic. We continue to work with institutions and with the Office of the Privacy Commissioner to ensure that the privacy of Canadians is protected as we respond to the COVID-19 crisis.

Background

In May 2020, TBS issued guidance to government institutions on the collection and disclosure of personal information from employees in relation to the management of the COVID-19 pandemic.

In June 2020, TBS issued an Interim Privacy Policy and Directives to ensure privacy is protected while delivering on urgent COVID-19-related initiatives such as the implementation of enhanced border measures and quarantine call centres.

Specifically, the changes enable institutions to complete a condensed Privacy Compliance Evaluation for urgent COVID-19-related initiatives, rather than a full Privacy Impact Assessment, which can take months. The intent of the Interim Policy and Directives is to ensure that privacy risks are identified, and privacy is protected in urgent COVID-19-related initiatives. The Interim Policy and related Directives will be in effect until March 31, 2021.

Government also received a range of proposals from Canadian and multinational companies with innovative ideas to address challenges related to the COVID-19 pandemic and the economic recovery efforts that will follow. These digital solutions range from contact tracing mobile applications and health data platforms, to AI-driven analytics tools to optimize public and private sector supply chains. In response to these offers, Industry, Science and Economic Development (ISED) officials engaged with these firms to collect information about the proposed projects and company capabilities, and liaising with counterparts from Health Canada (HC) and the Public Health Agency of Canada (PHAC) to match potential digital solutions to specific and urgent public health needs.

Officials assessed the privacy implications of the proposals and verified that proposals are consistent with Canadian privacy laws which resulted in the development and implementation of the COVID alert app. The app lets people know of possible exposure so they can take appropriate action to protect others, all while using anonymized data and protecting user privacy.

The Privacy Commissioner has emphasized that privacy laws can be applied flexibly and contextually and should not be a barrier to appropriate information sharing, but they must still apply. The Commissioner issued a framework to assess privacy-impactful initiatives in response to COVID‑19. The framework urges institutions to apply best practice standards, which go beyond existing legislative and policy requirements, in order to protect privacy.

50. Government of Canada protecting personal information

Issue

What is the government doing to protect the personal information of Canadians and prevent privacy breaches?

Key facts

  • The Privacy Act requires that government institutions protect Canadians’ personal information. TBS Privacy policies and guidance support institutions to meet these obligations.
  • Since 2019, TBS has been implementing a Privacy Breach Action Plan which focuses on strengthening the prevention and management of privacy breaches across government.
  • On November 16, 2020, the Department of Justice, in collaboration with the Treasury Board Secretariat, launched public consultations on modernizing the Privacy Act encouraging Canadians to share their views and their expectations of privacy.
  • The government also introduced Bill C‑11 or the Digital Charter Implementation Act, on November 17, which would modernize the framework for the protection of personal information in the private sector.

Response

  • The Government of Canada is committed to ensuring that Canadians’ personal information is kept safe and secure.
  • Since 2019, the government has been implementing the Privacy Breach Action Plan which focuses on strengthening the prevention and management of privacy breaches across government.
  • Recent cyber attacks have highlighted the importance of our work to protect personal information.
  • We continue to work closely with the cyber security and privacy communities to ensure material privacy breaches are quickly identified, mitigated and reported to the Office of the Privacy Commissioner.
  • As the government continues its transformation to a more digital government, privacy protection will continue to be a top priority.
  • My colleague, the Minister of Innovation, Science and Industry, has proposed Bill C‑11, the Digital Charter Implementation Act, 2020, which would modernize the framework for the protection of personal information in the private sector.
  • As well, in collaboration with the Department of Justice, we have recently launched public consultations on modernizing the Privacy Act to ensure the legislation keeps pace with evolving expectations of Canadians and modern-day challenges.

Background

The Privacy Act requires government institutions to protect Canadians’ personal information.

The Interim Directive on Privacy Practices requires government institutions to establish plans and procedures for addressing privacy breaches in their institutions which must include roles and responsibilities and mandatory reporting of material privacy breaches.

Material breaches are breaches that involve sensitive personal information – such as medical and financial information – and could reasonably be expected to cause injury or harm to the individual.

The Treasury Board of Canada Secretariat (TBS) monitors the material breaches reported by institutions across government and identifies where additional guidance or training may be required.

In his Annual Report to Parliament, tabled in October, the Privacy Commissioner was critical of the government’s handling of privacy breaches. In particular, he claims that many cyber incidents are not treated or reported as material privacy breaches.

Since 2019, TBS has been implementing the Privacy Breach Action Plan to strengthen the prevention and management of privacy breaches across government, including cyber-related incidents.

TBS is working in close collaboration with the Office of the Privacy Commissioner throughout this process.

On November 16, 2020, the Department of Justice in collaboration with the Treasury Board Secretariat launched public consultations on modernizing the Privacy Act to ensure the legislation keeps pace with evolving expectations of Canadians and modern-day challenges.

On November 17, 2020, the government introduced Bill C‑11, the Digital Charter Implementation Act, 2020, which would modernize the framework for the protection of personal information in the private sector. The proposed changes to the private sector privacy framework include steps to ensure that Canadians will be protected by a modern and responsive law and that innovative businesses will benefit from clear rules, even as technology continues to evolve.

51. Access to information and transparency during COVID-19

Issue

  • Workplace measures to curb the COVID-19 pandemic and protect the health and safety of federal employees have affected institutions’ ability to respond to access to information and personal information requests.
  • The Information Commissioner has called for immediate action to repair the federal access system.

Key facts

  • To respond to COVID-19, most employees are working from home, many with reduced access to documents and information systems they would usually use to respond to requests.
  • There are no provisions in the Access to Information Act or the Privacy Act to extend deadlines or place requests on hold due to an emergency.
  • On May 28, 2020, the President wrote to his Cabinet colleagues encouraging Ministers to proactively publish as much information as possible related to COVID-19 and remind them of the importance of ensuring best practices in information management.
  • On June 3, the President sent a letter responding to the Information Commissioner’s recommendations shared on April 28, 2020, concerning the ATI system, recognizing the importance of adhering to best practices in information management and mentioning upcoming plans the GC has to better support information practices across government.
  • As of October 26, 2020, all 131 institutions that responded to TBS’s weekly capacity questionnaire indicated that they have full capacity to respond to requests.
  • As of October 26, 2020, there were 316 COVID-19-related records available for Canadians to access on the Open Government portal, including data concerning key initiatives such as Canada Emergency Response Benefit (CERB), Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Student Benefit (CESB).

Response

  • The government remains committed to maintaining the openness and transparency of government during this challenging time.
  • The Access to Information Act requires that government institutions make every reasonable effort to assist those who request information and respond to requests in a timely manner.
  • Since the onset of COVID-19 workplace measures, institutions have worked hard to mitigate the impacts on their ability to respond to access to information or privacy requests.
  • In response to the Information Commissioner’s recommendations, the government committed to making information related to COVID-19 and the government’s response proactively available.
    • as of October 26, 2020, all 131 institutions that responded to TBS’s weekly capacity questionnaire indicated that they have full or partial capacity to respond to requests
    • as workplace restrictions continue to be lifted and capacity is increased, ATIP Offices are addressing outstanding requests
  • In addition to guidance issued by the Treasury Board Secretariat, I have asked ministers to ensure they make best efforts to respond to Access to Information Act and Privacy Act requests and to proactively publish content.
  • The government will continue to work with the Information Commissioner to meet Canadians’ needs for open, accessible, and trustworthy information.

Background

Government of Canada employees are currently working from home wherever possible to help slow the spread of COVID-19. Consequently, most institutions are operating with significantly reduced onsite workforces, which limits their ability to respond to requests and within the timelines mandated by the Access to Information Act and the Privacy Act.

Request processing

TBS has issued guidance to institutions to make best efforts to process requests and proactively publish information, in accordance with operational realities. Notices currently posted on the Open Government Portal and the Access to Information and Privacy (ATIP) Online Request Service inform requesters of potential delays due to COVID-19 measures. TBS continues to support institutions with suggested best practices for working digitally to respond to requests. As of October 26, 2020, all 131 institutions that responded to TBS’s weekly capacity questionnaire indicated that they have full capacity or partial capacity to respond to requests.

Since the onset of COVID-19 measures, institutions have worked hard to mitigate the effects of the COVID-19 measures on their ability to respond to requests:

  • Institutions are offering to provide electronic records to requesters, where paper records cannot currently be accessed.
  • Institutions are utilizing e-post where possible to facilitate providing responses to requesters electronically.
  • In addition, to help reduce pressures on the access to information system during these extraordinary times, the President of TBS, Jean-Yves Duclos, wrote to his Cabinet colleagues to encourage Ministers to proactively publish as much information as possible related to COVID-19 as well as reminding them of the importance of ensuring best practices in information management.
  • TBS also organized workshops to share best practices to help ATIP Offices adapt their procedures to the remote work environment.
  • The ATIP Online Request Services has remained available as a simple and efficient means for Canadians to submit requests to over 190 federal institutions.

As workplace restrictions continue to be lifted and capacity is increased, ATIP Offices are addressing outstanding requests. In particular, increased access to offices is enabling institution to process classified records for responses to ATI requests.

The review of the Access to Information Act, which began in June 2020, offers an opportunity to have an open exchange on making ATI systems and processes more resilient.

In October 2018, the government launched the new ATIP Online Request Service in an effort to modernize the ATIP process for Canadians. That was an important first step in making ATIP a digital process by enabling Canadians to make access to information and personal information requests electronically to more than 190 institutions. In its use of artificial intelligence in the portal, the government is helping requesters choose the institution that is most likely to have the information they want. Its continued use during the pandemic has enabled Canadians to submit requests without leaving their homes and institutions to receive requests remotely.

The government continues to update and improve the ATIP Online Request Service with tools and functionality, making the receipt, processing and delivery of requests more secure and efficient. We continue to work on how to streamline the process and avoid paper and compact discs.

Parallel to its work on the ATIP Online Request Service, the government is also undertaking a procurement process to ensure modern ATIP request processing software is in the hands of the government institutions.

OCIO continues to engage with the Offices of the Information Commissioner and Privacy Commissioner to ensure that these oversight bodies are aware of institutions’ operational status.

Ensuring transparency

The Information Commissioner wrote to the President of the Treasury Board on April 2 and April 28, 2020, reminding government of the importance of documenting decisions and recommending measures to reduce the pressures on the access to information system during these extraordinary times.

On July 10, 2020, the Information Commissioner wrote to the President of the Treasury Board calling for strong leadership and concrete actions by government to repair the access to information system.

In response to the Information Commissioner’s concerns, the President of the Treasury Board, in his capacity as designated Minister for the administration of the Access to Information Act across the federal government, and as a member of the Cabinet Committee on the federal response to the coronavirus disease (COVID-19), wrote to Cabinet colleagues encouraging Ministers to have institutions proactively publish as much information as possible as well as remind them of the importance of ensuring best practices in information management.

On April 29, 2020, the Treasury Board Secretariat (TBS) published guidance on information management practices while working remotely for all public servants.

This guidance is meant to reinforce employees’ awareness of their collective responsibility to document decisions of business value and to ensure that government information is managed securely and effectively with respect to legislative and policy requirements, including the requirements of the Access to Information Act and Privacy Act.

52. Emergency contracting

Issue

  • In response to the COVID-19 pandemic, changes to the Contracting Policy (Appendix C) were made to continue to enable emergency contracting by government departments.

Key facts

  • Effective March 20, 2020, the Treasury Board increased the emergency contracting limit for the Minister of Public Services and Procurement from $15 million to $500 million and has raised the emergency contracting limit for all Ministers from $1 million to $3 million. These amendments were extended on October 1, 2020, and are in effect until March 31, 2021.
  • These changes were necessary to continue to enable quick response to support government operations in an unprecedented situation.

Response

  • Federal departments and agencies continue to be called upon to deliver--with urgency and speed--the Government of Canada’s response to COVID-19, to protect the health and safety of all Canadians, stabilize our economy, and help workers and businesses and the financial hardship they face.
  • The government is providing temporary increases to limits for emergency contracting to enable the quick and efficient procurement of necessary resources in the context of COVID-19.
  • Departments are required to document their decision-making when they issue emergency contracts, including those under these increased limits, and to report to Treasury Board Secretariat.
  • Some departments have already provided reports on emergency contracting, with the most common good procured being personal protective equipment (PPE).
  • Most emergency contracts continue to be proactively disclosed on the Open Government website, with possible limited exceptions when there is a concern that such disclosure would compromise the competitive position of the government, such as in the purchase of PPE.

Background

Basic rules around emergency contracting from TB Contracting Policy, Appendix C

Until March 31, 2021, every department has $3M emergency contracting approval limit, for use in a pressing emergency.

Additionally, there are several special emergency approval limits. Of note, PSPC may enter into a contract up to $500M without TB approval, with the following conditions:

  • the Minister invokes the National Security or Extreme Urgency provisions of the applicable trade agreements
  • normal contracting procedures can’t be followed due to urgency
  • the applicable departmental Minister approval to use the special authority

PSPC continues to coordinate centralized purchases of specific commodities, such as personal protective equipment, on behalf of the Government of Canada, and the provincial and territorial governments.

  • For emergency procurements between $3M and $500M, departments are expected to use PSPC contracting services.

Departments can enter into contracts without soliciting bids when “the need is one of pressing emergency in which delay would be injurious to the public interest” as set out in the Government Contracts Regulations.

Departments are required by the Treasury Board Contracting Policy to document all contracting decisions and to report to TBS within 60 days on any contracts and contractual arrangements issued under the emergency contract approval limits.

Due to the COVID-19 situation, departments’ ability to meet timelines for proactive publication of contracts may be affected.

Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts, section 8.5

Where justified, in emergency contracting situations, departments also have the authority to limit contractor liability or indemnify contractors, subject to CFO approval.

Departments are to provide a report to the Treasury Board of Canada Secretariat (TBS) within 60 days of the authorization or beginning of the work with all the limitation or indemnification details and including a financial assessment, approved by departmental CFOs. For emergency contracts issued by PSPC on behalf of a department, it is the client (that is, spending) department’s CFO that needs to approve.

Proactive publication and protecting the competitive position of the government on emergency contracts

Generally, contracts over $10,000 (including contracts for PPE) are proactively disclosed on the Open Government website within 30 days after the end of the first three fiscal quarter (and 60 days after the fourth fiscal quarter), unless such contracts are exempt from disclosure under the Access to Information Act.

The disclosure of procurement information in relation to emergency contracts (mostly related to PPE), such as supplier name and contract value could jeopardize orders and compromise Canada’s negotiating position, particularly in international markets.

In the context of proactive disclosure of contracts over $10,000, the discretionary exemption at paragraph 18(b) of the Access to Information Act may be considered when making an assessment about whether or not to publish information about certain contracts when there is a concern that such disclosure would compromise the competitive position of the government.

As of October 21, 2020, ten departments have provided reports on emergency contracting, including PSPC. The emergency contracting limits were used 218 times for a total of $5.8B with the majority of contract amounts awarded by the Minister of PSPC ($5.7B).

Personal protective equipment (PPE)

Public Services and Procurement Canada continues to coordinate the purchase of personal protective equipment (PPE) on behalf of government and will report on emergency contracts (including those for PPE) to the Treasury Board Secretariat. Public Services and Procurement Canada has also provided some information on PPE purchases on its website, for added oversight and transparency. The release of certain contract information will remain pending until the pandemic is over and maintaining confidentiality is no longer an issue.

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