President of the Treasury Board appearance before the Standing Committee on Government Operations and Estimates (OGGO) and the Senate Committee on National Finance (NFFN) – Main Estimates 2022-23 – April 2022

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A. Scenario Note

APPEARANCE OF THE HONOURABLE MONA FORTIER, PC, MP, PRESIDENT OF THE TREASURY BOARD, AND TBS OFFICIALS BEFORE THE HOUSE OF COMMONS STANDING COMMITTEE ON GOVERNMENT OPERATIONS AND ESTIMATES ON MAIN ESTIMATES 2022-23 AND DEPARTMENTAL PLANS 2022-23

Background

  • The President of the Treasury Board tabled the Main Estimates 2022-23 in the House of Commons and Senate on March 1, 2022. They were referred to various House of Commons standing committees (OGGO for TBS) and Senate Committee on National Finance (NFFN). House Committees may examine and amend the estimates until May 31, 2022. There is no deadline for NFFN’s study, however they cannot amend the estimates.
  • The President also tabled the Departmental Plans 2022-23 (DPs) in the House and the Senate on March 2, 2022. They were also referred to various House of Commons standing committees (OGGO for TBS) and Senate Committee on National Finance (NFFN).
  • The Standing Committee on Government Operations and Estimates (OGGO) has invited the President and TBS officials to appear on April 26, 2022, as part of their examination of both the estimates and DPs.
  • The Standing Senate Committee on National Finance (NFFN) has invited the President and TBS officials to appear on April 28, 2022, as part of their examination of both the estimates and DPs.
  • Both appearances are expected to be hybrid with the President appearing in person supported in person at the table by Annie Boudreau, Assistant Secretary, EMS; Karen Cahill, Assistant Secretary and CFO, CSS; and Marie-Chantal, A/Chief Human Resources Officer. The remaining officials will appear remotely.

Day of – Scenario (OGGO)

  • The meeting is expected to begin at 3:30pm, subject to delays in the Chamber. The President is scheduled to attend for the first hour (3:30-4:30pm) along with TBS officials, and officials will remain for an additional hour of questioning (4:30-5:30 pm).
  • Officials appearing remotely will be asked to log on half an hour before the appearance begins (3:00 p.m.) to perform a sound and tech test.

Day of – Scenario (NFFN)

  • The meeting is expected to begin at 4:00 p.m. The President is scheduled to attend for the first hour (4:00-5:00pm) along with TBS officials, and officials will remain for an additional hour of questioning (5:00-6:00pm).
  • Officials appearing remotely will be asked to log on half an hour before the appearance begins (3:30 p.m.) to perform a sound and tech test.

Briefing Binder

  • A binder has been prepared in anticipation of the appearance, which the President’s office and supporting witnesses received on April 20. The binder provides an overview of the government and TBS-specific items included in the Estimates, as well as the TBS DP 2022-23. The binder also includes material on key issues such as COVID-19 spending, key government-wide spending (as highlighted in the Parliamentary Budget Officer’s Report on the Main Estimates 2022-23) financial transparency, the ongoing COVID-19 response and the public service, values and ethics, and digital government.
  • New issue cards include those on the roles and responsibilities of Treasury Board and Treasury Board Secretariat, Estimates and Accountability Reform, Official Languages in the Public Service and Modernization of the Official Languages Act, Second Annual Regulatory Modernization Bill (S-6, ARMB2 – introduced in the Senate on March 31st and led by the President of the Treasury Board), and the National Security and Intelligence Committee of Parliamentarians (NSICOP).

Supporting Officials

  • Annie Boudreau, Assistant Secretary, EMS
  • Karen Cahill, Assistant Secretary and CFO, CSS
  • Monia Lahaie, Assistant Comptroller General, Financial Management Sector, OCG
  • Samantha Tattersall, Assistant Comptroller General, Acquired Services and Assets, OCG
  • Paul Wagner, Assistant Deputy Minister (Transformation) and a/CTO, OCIO
  • Marie-Chantal Girard, A/Chief Human Resources Officer
  • Rod Greenough, Executive Director of Expenditure Strategies and Estimates, EMS (after the first hour)

Other Relevant Information

  • The OGGO Committee is also expected to hear from the PSPC minister and officials on the estimates and DPs, on April 29.
  • The OGGO Committee has been studying the National Shipbuilding Strategy and the Air Defense Procurement Projects. The Members have been critical of the Government’s procurement process as a whole but has not directly mentioned TBS (Officials from PSPC & DND have appeared, along with expert witnesses including former Military).
  • Both Committees remain concerned with the level of transparency and accountability from the government as it relates to the procurement process and the tablings of the financial documents (such as the Public Accounts).
  • NFFN will hear from other government departments on April 26, 2022.
  • The Parliamentary Budget Officer appeared at NFFN on April 5, 2022 and was extremely critical of the government’s financial process, including the misalignment of the tabling of the Main Estimates and the Budget – highlighting that it was difficult for Parliamentarians to understand the bigger financial picture that they were approving. He reiterated his concerns with the timing of the tablings of financial documents such as the Public Accounts and the Departmental Results Reports.

B. Overview of the Main Estimates 2022-23

Issue

Main Estimates, 2022–23 present a total of $397.6 billion in budgetary spending, which reflects $190.3 billion to be voted and $207.3 billion in forecast statutory expenditures.

Response

  • The Government of Canada is seeking the necessary investments to give Canadians the support they need to address the continued effects of the COVID-19 pandemic and establishing the essential conditions for a successful economic recovery.
  • Investments in the Government’s response to the pandemic includes funding to procure vaccines, therapeutics and other supplies, for border measures, as well as support for hard hit tourism, arts, culture and heritage sectors.
  • Main Estimates and related documents provide insight into how the government proposes to allocate taxpayers’ money and help ensure spending is transparent and accountable to parliamentarians and Canadians.
  • The largest increases in voted expenditures in the Main Estimates are for the Department of Indigenous Services; the Department of Employment and Social Development; the Office of Infrastructure of Canada and the Department of Industry.

Background

($billions) 2021–22 Main Estimates 2022–23 Main Estimates
Budgetary
Voted 141.9 190.3
Statutory 200.3 207.3
Total Budgetary 342.2 397.6
Non-budgetary
Voted 0.18 0.23
Statutory 4.27 0.14
Total Non-budgetary 4.45 0.37

Main Estimates, 2022–23 present a total of $397.6 billion in budgetary spending, which reflects $190.3 billion to be voted and $207.3 billion in forecast statutory expenditures.

The level of voted budgetary spending is $48.4 billion higher than what was presented in the 2021–22 Main Estimates.

The largest increases in voted expenditures (in comparison to the 2021–22 Main Estimates) are for:

  • the Department of Indigenous Services ($26.1 billion increase, including payments i for out-of-court settlements and for drinking water in First Nations communities);
  • the Department of Employment and Social Development ($7.2 billion increase, including $5.0 billion in payments to provinces and territories for early learning and childcare);
  • the Office of Infrastructure of Canada ($2.5 billion increase for both wide-ranging (Investing in Canada program) and targeted (public transit, homelessness, green and inclusive buildings) infrastructure programs; and
  • the Department of Industry ($2.1 billion increase, almost entirely in grants and contributions, including those promoting innovation and digital adoption, as well as support for universal access to high-speed internet).

Voted spending will be authorized through two appropriation bills. The first, Interim Supply, was approved by Parliament in March and provided $75.5 billion in order to cover spending until the end of June 2022. The second, Full Supply, will be introduced in June for the balance ($115.0 billion) of funding presented in the Main Estimates.

The level of statutory budgetary spending is $7.0 billion higher than what was presented in the 2021–22 Main Estimates.

Significant changes in statutory spending from the 2021–22 Main Estimates include:

  • increases in major transfer payments (as published in the Economic and Fiscal Update 2021), most notably Elderly Benefits (+$5.9 billion), the Canada Health Transfer (+$2.1 billion) and fiscal equalization (+$1.0 billion);
  • an increase in interest on unmatured debt (+$2.9 billion);
  • an increase in Canada Student Grants (+$1.5 billion);
  • an increase in Climate Action Incentive Payments (+$1.2 billion); and
  • the winding down of benefit payments to individuals under the Canada Recovery Benefits Act (decrease of $9.9 billion).

C. Estimates & Financial Accountability Reform (Pilot, PBO/opposition calls for reform, tabling dates/delays)

Issue

Changes made to Estimates and other financial reporting to increase transparency and respond to recommendations.

Response

  • The Government of Canada is committed to make it easier for parliamentarians and Canadians to hold the government to account for its spending decisions.
  • Ongoing changes have been made to address comments received from parliamentarians, to increase transparency and to make Estimates documents easier to understand.
  • The government continues to welcome feedback on its documents and processes and appreciates efforts and recommendations to simplify and track departmental spending and results.

If pressed on a set date for the Budget, or tabling the Budget before the Main Estimates or concurrently:

  • Setting a specific date for presenting the Budget or introducing the Budget and the Main Estimates concurrently would unnecessarily restrict the Government’s flexibility to respond to global and domestic imperatives.
  • It is important to note that new spending requirements for initiatives announced in the Budget would not be sufficiently developed in time for inclusion in the Main Estimates.
  • We did undertake a pilot project to align the Estimates in the 42nd Parliament, the extension of this pilot was not supported by Parliament or external observers, so the system reverted to the current standing orders and process.

Background

In 2012 and in 2019, the Standing Committee on Government Operations and Estimates (OGGO) released reports on Estimates and supply processes.

In response, Treasury Board Secretariat made ongoing changes to products and processes, including:

  • Tagging items in Supplementary Estimates which stem from a federal budget;
  • Development and ongoing expansion of GC InfoBase, an online searchable database;
  • Expanding financial data in Departmental Plans and tabling them very soon after Main Estimates; and
  • Providing a reconciliation of Estimates to the latest federal budget or fiscal update.

The Treasury Board Secretariat also conducted pilot projects on aligning Main Estimates with the federal budget and on purpose-based votes.

On aligning Main Estimates and the federal budget:

  • In 2017, provisional changes to House of Commons Standing Orders had allowed for Main Estimates to be tabled in the House of Commons by April 16.
  • This two-year change allowed for the tabling of an Interim Estimates and a delayed tabling of Main Estimates. Budget implementation votes were then used to include planned spending from the latest federal budget in the Main Estimates.
  • This mechanism allowed for complete alignment and reconciliation of the accrual-based Budget with the cash-based Estimates. In response to feedback, the second year of this pilot saw separate votes for each budget measure, and these amounts were included in departmental plans.
  • The use of Budget implementation votes also reduced the delay for departments to obtain Parliamentary authority for new spending, by securing the appropriation before the Treasury Board approved departmental submissions. Monthly online reporting ensured transparency on timing of Treasury Board approvals and the release of funds.
  • However, there were mixed reviews of the Budget implementation votes. Departments appreciated the flexibility in the timelines for obtaining Treasury Board approvals, and having fewer new approvals to risk-manage through the fiscal year.
  • Many Parliamentarians perceived a reduced opportunity to influence or exert control over government spending – which greatly outweighed any process efficiencies the government achieved. One of the concerns with the Budget implementation votes was that parliament was being asked to approve amounts before the Treasury Board.
  • The extension of this pilot was not supported by Parliament or external observers, so the system reverted to the current standing orders and process.
  • It is not possible to have any budget items approved by Treasury Board before the budget is tabled. Budget announcements can require external consultation before detailed implementation plans can be drawn up and Treasury Board submissions prepared. In addition, the budget can respond to recent developments, for which there is insufficient advance notice to prepare a full TB submission. Lastly there is the issue of budget secrecy, where decisions are closely held until the tabling of the budget.

On the Department of Transport purpose-based vote pilot:

  • The Department of Transport also undertook a pilot project on purpose-based grant and contribution votes beginning in 2016–17, whereby it had three separate votes for grants and contributions. The votes were based on the departmental Program Alignment Architecture.
  • That pilot ended in 2020–21. Transport has returned to a single vote for all of its grants and contributions programs.
  • Transport experienced some challenges in managing its transfer payment programs over the three separate votes. Flexibility to reallocate grant and contribution funding to departmental priorities was limited.
  • The pilot has demonstrated that there were risks and costs to the expansion of the pilot to other votes and other departments.
  • Additionally, according to Transport Canada, the pilot vote structure has not necessarily strengthened forecasting scrutiny, nor ensured greater expenditure transparency.

On fixing a date for the federal budget:

  • OGGO reports in 2012 and 2019 recommended tabling the budget and the main estimates concurrently. The parliamentary Budget Officer has also recommended this.
  • In response to both OGGO reports, the Government disagreed with the recommendation as it would unnecessarily restrict the Government’s flexibility in responding to global and domestic imperatives.

On setting or amending dates for the tabling of Public Accounts and Departmental Results Reports:

  • Recent reports by the Parliamentary Budget Officer have recommended requiring publication of the Public Accounts and the Departmental Results Reports no later than September 30th, and tabling of the Departmental Plans at the same time as Main Estimates.
  • Parliament does receive information on actual expenditures prior to tabling of Public Accounts and the Departmental Results Reports (DRRs). The Fiscal Monitor for March 31 is released on the last Friday in May and provides preliminary financial results which include the majority of actual spending for the fiscal year.
  • Changing the tabling deadline of Public Accounts of Canada to September 30th is not feasible, especially during an election year when no Parliament is in session. Generally, the completion of the audit of the consolidated financial statements of the Government of Canada occurs the first week of September and the printed copies are received in mid-October. The September 30th deadline does not allow for the administrative tasks necessary for the printing and publishing of Public Accounts.
  • Recent federal elections (2019 and 2021) took place in the fall and resulted in delays in the tabling of DRRs. The 2018-19 DRRs would normally have been tabled in fall 2019, but were ultimately tabled on February 26, 2020. The 2020-21 DRRs would normally have been tabled in fall 2021, but were ultimately tabled on February 1, 2022. These delays reflect the time needed for new ministers to review and approve the reports for their portfolios, and the limited window for tabling in the late part of the calendar year.

On tabling of Departmental Plans and alignment with Main Estimates:

  • Departmental Plans fully reflect the funding requirements presented in Main Estimates for those departments.
  • The 2022–23 Departmental Plans were tabled on March 2, the day after tabling of the Main Estimates.

D. Treasury Board Secretariat and TB Central Votes

Issue

In the 2022–23 Main Estimates, $7.85 billion in requirements is presented for Treasury Board Secretariat and Treasury Board central votes. This is an increase of approximately $831 million.

Response

  • Central votes support Treasury Board in its roles as the expenditure manager, employer and general manager for the Government of Canada.
  • Together, these central votes make up the vast majority ($7.5 billion) of the funding shown in Main Estimates under Treasury Board Secretariat.
  • Some of these central votes are used to reimburse organizations for costs such as those associated with contingencies; government-wide Initiatives; maternity/parental allowances; or compensation changes related to collective bargaining agreements.
  • Other central votes are used to facilitate departments carrying forward funds into the next fiscal year in order to pay for projects that have been delayed.

Background

Treasury Board Secretariat Vote 1 is presenting a total of $320 million in requirements for program expenditures, which pay for the activities of the Secretariat. This is similar to the amount for all Estimates in 2021–22 (which was $323 million) and $39 million higher than the 2021–22 Main Estimates. The growth in funding from the 2021–22 Main Estimates includes resources to improve the provision of digital services, advance job classifications, help modernize the Official Languages Act, as well as for the Access to Information Review and Action Plan.

To support the Treasury Board in performing its statutory responsibilities for managing the government’s financial, human and materiel resources, a number of central votes (numbered 5 through 35) are required:

TB Vote 5, Government Contingencies

Allocations from TB Vote 5 are used to supplement other appropriations or grant authorities in order to address urgent, unforeseen and unavoidable cash requirements of organizations. The 2022-23 Main Estimates included $750 million for TB Vote 5. This annual amount has been constant for over 20 years.

TB Vote 10, Government-wide Initiatives

Allocations from TB Vote 10 are used to supplement the appropriations of departments in order to implement strategic management initiatives in the federal public administration.

The amount in TB Vote 10 varies from year to year depending on the initiatives included. The 2022-23 Main Estimates include $152 million in TB Vote 10 (up from $111 million in 2021–22). Amounts are planned for the following initiatives:

  • $107 million for COVID-19 vaccine policy implementation in the core public administration, including the RCMP;
  • $24 million to respond to claims arising from the Phoenix system;
  • $10 million for the modernize business applications and migrate them to secure data centres or the cloud (Application Modernization Initiative);
  • $7 million to modernize the Program and Administrative (PA) Services occupational group;
  • $3 million uncommitted balance.

TB Vote 20, Public Service Insurance

The public service group insurance plans and programs include health and dental care benefits, as well as disability and life insurance for active and retired employees and their eligible dependants. The $3.2 billion for 2022–23 represents an increase of roughly $148 million, in response to cost increases driven by price inflation and population growth.

TB Vote 25 (Operating Budget Carry Forward) and 35 (Capital Budget Carry Forward)

The Operating Budget Carry Forward and Capital Budget Carry Forward received ongoing increases of $500 million (to $2.1 billion) and $100 million (to $700 million) respectively starting in the 2021-22 Supplementary Estimates (A). This ongoing increase to these central votes will ensure sufficient resources to cover potentially higher carry-forward requests related to ongoing growth in departmental budgets and spending delays due to COVID-19.

TB Vote 30, Paylist Requirements

Allocations from TB Vote 30 are used to reimburse departments for specific personnel costs, such as parental allowances, severance pay and vacation cash-out on retirement. The $600 million amount remains the same as the 2021–22 Main Estimates.

E. Overview of Roles and Responsibilities (TB/TBS)

Issue

Roles and responsibilities of the Treasury Board, its President and the Secretariat.

Response

  • The importance of the Treasury Board as manager and employer of the government goes back to 1867, when it was first established as the only statutory Cabinet committee.
  • The President, as chair of the Treasury Board, is accountable for the principal management, expenditure and employer responsibilities that fall to the committee, and other specific policy-making authorities.
  • The Treasury Board of Canada Secretariat provides advice and makes recommendations to the Treasury Board on how the government spends money on programs and services, how it regulates and how it is managed, helping ensure tax dollars are spent wisely and effectively for Canadians.

Background

While the primary statute setting out the role of the Treasury Board is the Financial Administration Act, there are over 20 other statutes that also establish its roles and authorities. The Treasury Board’s powers and responsibilities are also set out in regulations, orders-in-council, policies, guidelines and practices.

The Treasury Board has three principal roles:

  1. It acts as the government’s “expenditure manager”:
    • preparing the government’s expenditure plans (the Estimates) and monitoring program spending by government departments;
    • approving the use of new money that has been set aside in the budget, including for major procurements, assets, new programs, and grants and contributions.
  2. It acts as the government’s “management board”:
    • setting the rules that establish how people, public funds and government assets are managed;
    • reviewing departmental investment plans in support of accountability of government operations.
  3. It acts as the “employer” of the core public administration:
    • entering into collective bargaining for the core public administration;
    • determining terms and conditions of employment;
    • setting rules on human resources management.

The management, expenditure and employer responsibilities that fall to the Treasury Board are also the President’s own responsibilities and form the basis for their key accountabilities.

Specific responsibilities assigned directly to the President include:

Other statutes assign specific authorities to either the President or the Treasury Board. For example, the President has the authority to:

The Treasury Board’s authority to act as the employer for the core public administration is established under various statutes.

As the Chair of the Treasury Board, the President supports the Treasury Board’s employer responsibilities. Legislation gives the Treasury Board the authority to:

The Treasury Board of Canada Secretariat supports the Treasury Board by making recommendations and providing advice on program spending, regulations and management policies and directives, while respecting the primary responsibility of deputy heads in managing their organizations and in their roles as accounting officers before Parliament. In this way, the Secretariat helps to strengthen government performance, results and reporting and supports good governance and sound stewardship.

F. Strategic Policy Review

Issue

Budget 2022 includes a Government of Canada commitment to conduct a Strategic Policy Review. Budget 2023 will provide an update on the review’s progress.

Response

  • In Budget 2022, the Government of Canada committed to conducting a Strategic Policy Review.
  • This Strategic Policy Review will assess program effectiveness in meeting the government’s key priorities of strengthening economic growth, inclusiveness, and fighting climate change. It will also adapt government to the post-pandemic reality, such as digital service delivery.
  • This is about smarter government and ensuring Canadians’ tax dollars are being used effectively and to ensure that government programs are delivering the intended results.
  • It’s about getting value for taxpayer dollars. Focusing on priorities and doing them better – delivering on the government’s goals more sustainably and effectively.

Background

The Government of Canada already requires major programs to be reviewed regularly – at least every five years – to verify that taxpayer dollars are being used effectively and that government programs are delivering intended results.

This approach, along with lessons learned from past strategic reviews that assessed a range of programs and operations at the same time, will inform the Strategic Policy Review to ensure it is effective in meeting the Government’s objectives.

There are two streams for the Strategic Policy Review:

  • Stream 1 will assess program effectiveness in meeting the government’s key priorities of strengthening economic growth, inclusiveness, and fighting climate change.
  • Stream 2 will identify opportunities to save and reallocate resources to adapt government programs and operations to a new post-pandemic reality. Further areas of focus could include real property, travel, and increased digital service delivery, based in part on key lessons taken from how the government adapted during the pandemic, such as through increased virtual or remote work arrangements.

The review targets savings of $6 billion over five years, and $3 billion annually by 2026-27. Budget 2023 will provide an update on the review’s progress.

Progress on the Review will be included in Budget 2023.

Government-Wide

In this section
  1. Indigenous Spending (ISC) (EMS)
  2. Major Transfer Payments
  3. COVID-19 Expenditures

1. Spending Related to Indigenous Canadians and their Communities

Issue

Spending related to Indigenous Canadians and their communities has grown sharply.

Response

  • As part of our ongoing journey toward reconciliation, the Government of Canada is committed to making necessary investments to settle claims and support the infrastructure and services that are vital to Indigenous communities’ physical, mental, social and economic health and well-being.
  • The $39.6 billion in funding for the Department of Indigenous Services Canada includes:
    • an increase in funding for out-of-court settlements; and
    • an increase in funding for infrastructure in Indigenous communities and improvements for access to safe, clean drinking water in First Nations communities.
  • The $5.8 billion presented by the Department of Crown-Indigenous Relations and Northern Affairs includes increased funding to settle specific claims, as well as for investments in Indigenous infrastructure.

Background

The Department of Indigenous Services Canada (ISC) has the largest requirements in terms of voted funding in the Main Estimates ($39.6 billion), and the Department of Crown-Indigenous Relations and Northern Affairs is the eighth largest ($5.8 billion).

As pointed out in the Parliamentary Budget Officer’s report on the 2022–23 Main Estimates, Indigenous-related spending has increased significantly over the past six years. The combined budgetary total for the two departments has seen a 214 % increase compared to 2017–18.

Department of Indigenous Services Canada (ISC)

The $39.6 billion in funding for the department represents an increase of $26.1 billion as compared to the 2021–22 Main Estimates or $17.8 billion compared to total Estimates for 2021–22.

This is primarily due to:

  • an increase in funding for out-of-court settlements;
  • an increase in funding for infrastructure in Indigenous communities and improvements for access to safe, clean drinking water in First Nations communities.

More than half (roughly $22 billion) of ISC’s budgetary authorities are for out-of-court settlements. In January, Agreements-in-Principle were announced relating to:

  • compensation for First Nations children on reserves and in Yukon who were removed from their homes, and those impacted by the government’s narrow definition of Jordan’s Principle, including for their parents and caregivers;
  • long-term reform of the First Nations Child and Family Services program and a renewed approach to Jordan’s Principle, in order to eliminate discrimination and to reform Indigenous Services Canada processes, procedures and practices to prevent the discrimination from recurring.

These Agreements-in-Principle are not final. Canada and the respective parties are now working to reach final and binding settlement agreements on both compensation and long-term reform of the First Nations Child and Family Services program and a renewed approach to Jordan’s Principle and other initiatives undertaken by Indigenous Services Canada.

Department of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC)

The $5.8 billion presented by CIRNAC in the 2022–23 Main Estimates is an increase of $1.1 billion as compared to the 2021–22 Main Estimates, but $1.3 billion lower than total Estimates for 2021–22.

The increase from the 2021–22 Main Estimates relates primarily to funding to settle specific claims, as well as for investments in Indigenous infrastructure. The decrease in comparison to total Estimates for 2021–22 relates primarily to payments for the Federal Indian Day School (McLean) settlement which were made in that year.

2. Major Transfer Payments

Issue

Main Estimates, 2022–23 reflects major transfers to individuals, provinces and territories, as projected in the Economic and Fiscal Update 2021.

Response

  • These Estimates reflect the Government’s continuing commitment to give Canadians the support they need to address the effects of the COVID-19 pandemic and establish the conditions for a successful economic recovery.
  • The majority of expenditures presented in the Main Estimates are transfer payments, which are payments made to individuals, other levels of government and other organizations. Transfer payments make up approximately 61.1% of expenditures in these Estimates, or $243.1 billion.
  • Major transfers to persons consist of elderly benefits, Employment Insurance benefits, the Canada Child Benefit, and the Canada Emergency Response Benefit and Recovery Benefits.
  • Through transfer payments, the Government also provides significant financial support to provincial and territorial governments to assist them in the provision of programs and services, principally health care, as well as funding related to local infrastructure priorities, home care, mental health, early learning and childcare.

Background

As the Main Estimates were tabled in advance of Budget 2022, they reflect projections from the Economic and Fiscal Update 2021. The Budget 2022 projections will be included in Supplementary Estimates (A).

Projection
2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027
Major transfers to persons
Elderly benefits 58.5 61.6 68.3 73.0 77.4 81.9 86.5
Employment Insurance benefits 58.4 39.5 31.7 24.7 25.1 25.6 26.5
COVID-19 income support for workers 55.8 20.4 0.4 0.0 0.0 0.0 0.0
Canada Child Benefit 27.4 26.4 25.5 25.8 26.5 27.3 28.2
Total 200.1 147.9 126.0 123.5 128.9 134.8 141.2
Major transfers to other levels of government
Canada Health Transfer 45.9 43.1 45.2 48.7 51.1 53.2 55.2
Canada Social Transfer 15.0 15.5 15.9 16.4 16.9 17.4 17.9
Equalization 20.6 20.9 21.9 23.6 24.8 25.8 26.8
Territorial Formula Financing 4.2 4.4 4.6 4.9 5.1 5.2 5.4
Canada Community-Building Fund 4.3 2.3 2.3 2.4 2.4 2.5 2.5
Home care and mental health 1.3 1.5 1.2 1.2 1.2 1.2 1.2
Canada-Wide Early Learning and Child Care 0.0 3.0 4.5 5.5 6.5 7.7 7.7
Other fiscal arrangements 15.4 -5.6 -6.0 -6.5 -6.8 -7.2 -7.5
Total 106.7 85.0 89.6 96.2 101.1 105.8 109.2

Major Transfers to Persons

Major transfers to persons consist of elderly benefits, Employment Insurance (EI) benefits, the Canada Child Benefit, and the Canada Emergency Response Benefit and Recovery Benefits.

Elderly benefits are forecast to grow by $4.9 billion per year on average. Growth in elderly benefits is due to the increasing population of seniors, reflecting this ongoing demographic change, and projected consumer price inflation, to which benefits are fully indexed, as well as the 10 per cent increase to Old Age Security payments for pensioners 75 and over on an ongoing basis as of July 2022 announced in Budget 2021.

EI benefits are projected to decrease in 2022–23, largely reflecting the expiration of temporary COVID-related EI measures and a lower unemployment rate. EI benefits are expected to fall further to $24.7 billion by 2023-24 as a result of the projected improvement in the labour market and grow at an average of 2.3 per cent annually thereafter.

COVID-19 income support programs are expected to decrease as the recovery strengthens and temporary programs end. The Canada Emergency Response Benefit ended in September 2020, and the Canada Recovery Benefit ended on October 23, 2021. The government has extended sickness and caregiving benefits until May 7, 2022, and introduced the Canada Worker Lockdown Benefit. The lockdown benefit is available to workers who face direct work interruptions due to public health lockdowns and is accessible until May 7, 2022.

Canada Child Benefits (CCB) will decline in 2022-23 due to the conclusion of the temporary supplement for families with young children introduced in the 2020 Fall Economic Statement, as one of the measures to support Canadians through the pandemic. For the period of 2023-24 to 2026-27, CCB payments are expected to grow at an average annual rate of 2.5 per cent, reflecting forecasted consumer price inflation to which the benefits are indexed.

Major Transfers to Other Levels of Government

The Government of Canada provides significant financial support to provincial and territorial governments on an ongoing basis to assist them in the provision of programs and services.

The Canada Health Transfer (CHT) and the Canada Social Transfer (CST) are federal transfers which support specific policy areas such as health care, post-secondary education, social assistance and social services, early childhood development and childcare.

The CHT is projected to grow from $43.1 billion in 2021-22 to $55.2 billion in 2026-27, as it grows in line with a three-year moving average of nominal GDP growth, with funding guaranteed to increase by at least 3 per cent per year. The CST is legislated to grow at 3 per cent per year.

The Equalization and Territorial Formula Financing (TFF) programs provide unconditional transfers to the provinces and territories. Equalization enables less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. TFF provides territorial governments with funding to support public services, in recognition of the higher cost of providing programs and services in the north.

The federal government also provides funding related to local infrastructure priorities, home care, mental health, early learning and childcare. Canada Community-Building Fund payments are indexed at 2 per cent per year, with increases applied in $100 million increments. Home care and mental health transfers are projected to stabilize at $1.2 billion starting in 2022-23. Canada-Wide Early Learning and Child Care transfer payments are expected to increase from $3.0 billion in 2021-22 to $7.7 billion in 2025-26 according to the terms of agreements with provinces and territories.

3. COVID-19 Expenditures

Issue

Spending related to the government’s response to COVID-19 included in the 2022-23 Main Estimates.

Response

  • These Estimates reflect the Government’s continuing commitment to invest in the response to the COVID-19 pandemic.
  • While projected spending is down significantly from last year, there is still significant effort needed to keep Canadians safe and to weather the broader impacts of the pandemic.
  • Of the $397.6 billion in proposed spending in the 2022–23 Main Estimates, approximately $9.7 billion is related to the COVID-19 pandemic response.
  • This funding would be used to procure vaccines, therapeutics and other supplies, for border measures, as well as support for hard hit tourism, arts, culture and heritage sectors.
  • Canada’s COVID measures will continue to be guided by science and will evolve as needed.
  • Additional information on COVID-19 authorities and expenditures is readily available through GC InfoBase.

Background

($billions) 2021-22 Main Estimates 2022–23 Main Estimates
Budgetary
Voted 141.9 190.3
Statutory 200.3 207.3
Total 342.2 397.6
Of which: COVID-19 related 22.1 9.7

The planned spending for COVID-19 measures (including the Economic Response Plan) is $9.7 billion in 2022-23, a decrease of $12.4 billion compared to the 2021-22 Main Estimates.

  • Significant COVID-19 2022-23 total include:
    • $3.3 billion increase for procurement and management of COVID-19 vaccines and supplies;
    • $2.2 billion for further support for medical research and vaccine developments (continuation from 2021-22 Estimates);
    • $1.0 billion for additional COVID-19 therapeutics procurement (continuation from 2021-22 Estimates).
  • The overall reduction of $12.4 billion is largely attributable to the winding down of benefit payments to individuals under the Canada Recovery Benefits Act:
    • -$4.2 billion for Canada Recovery Caregiving Benefit;
    • -$2.3 billion for Canada Recovery Sickness Benefit;
    • -$3.4 billion for Canada Recovery Benefit.

Supply Cycle

In this section
  1. Treasury Board role in granting spending authorities
  2. 2022-23 Departmental Plans Overview – TBS

4. Treasury Board role in granting spending authorities

Issue

Treasury Board’s approval of federal expenditures.

Response

  • Canadians and the parliamentarians who represent them have the right to know how public funds are being spent and to hold the government to account.
  • The Estimates support Parliament’s review of proposed new spending of the Government of Canada and the ensuing appropriation bills, which grant spending authorities upon Royal Assent.
  • Supplementary Estimates present information on incremental spending requirements, which were either not sufficiently developed in time for inclusion in the Main Estimates or have subsequently been refined to account for recent developments.
  • The Treasury Board approves program parameters set out in departmental submissions and any voted amounts to be included in the Estimates and related appropriation bills.

Background

The Treasury Board approves the program parameters set out in departmental submissions, including any voted amounts to be included in the Estimates and the appropriation bill.

The Secretariat’s due diligence includes validating the legal and policy authorities supporting the program, reviewing the implementation approach, and verifying compliance with Treasury Board policies.

While departments provide as much information as possible at the time of Treasury Board approval, there are some details – such as the regional distribution and take-up rate for contribution programs – that may only be roughly estimated at that point. In addition, while Treasury Board submissions can seek contracting authorities, the ultimate recipients of competitive contracts are not known at the Treasury Board submission stage. More complete information becomes available over the course of program implementation.

Individual ministers and their officials are responsible for, and best placed to answer to parliamentary committees on:

  • program plans, expenditures, implementation, and performance;
  • ensuring that their organizations follow Treasury Board policies; and
  • departmental oversight, internal control, performance measurement and reporting.

Statutory Expenditures

“Statutory” expenditures are authorized by Parliament through legislation other than an appropriation act, such as a Budget Implementation Act, or a program’s or department’s enabling legislation.

The Treasury Board does not typically approve statutory spending as the legislation is introduced and under the purview of other Ministers. To support such expenditures, the enabling legislation includes specific language to authorize payments to be made from the Consolidated Revenue Fund for the stated purpose.

The legislation may also refer to other program parameters, or terms and conditions, that require approval of the Treasury Board. Statutory spending may also be subject to Treasury Board policies, such as contracting and transfer payments.

Statutory expenditures are reported in the Public Accounts and in some cases subject to other reporting, for example the annual Report on Federal Tax Expenditures.

5. 2022-23 Departmental Plans Overview – TBS

Issue

TBS priorities in its 2022-23 Departmental Plan.

Response

  • The Government of Canada is committed to delivering its plans and priorities in a manner that is open, transparent and accountable to Canadians and Parliament.
  • The Departmental Plans set out the objectives and expected results for departments and how they will use tax dollars to achieve these results throughout the year.
  • As part of 2022-23 priorities, TBS will:
    • work to ensure that climate adaptation and mitigation considerations are integrated throughout federal government decision-making, and work to purchase 100% clean energy by the end of 2022;
    • improve the digital experience for Canadians by helping departments to deliver new and existing services quickly and easily;
    • support departments in meeting the requirement that at least 5% of the value of federal contracts are awarded to Indigenous businesses;
    • strengthen the public service, by helping to implement plans outlined in the Call to Action on Anti-Racism, Equity, and Inclusion in the Public Service, by removing barrier to inclusion, and by bringing forward a coordinated plan for the future of work.
    • conduct a Strategic Policy Review to assess program effectiveness in meeting the government’s key priorities of strengthening economic growth, inclusiveness, and fighting climate change.
  • TBS will report on its progress and achievements through its Departmental Results Report after the end of the fiscal year.

Background

TBS’s 2022–23 Departmental Plan outlines $7,85 billion in total planned spending and sets out five priority areas for the department’s 2,202 total full-time equivalents (FTEs).

The breakdown of these planned departmental expenditures is as follows:

  • $4.34 billion and 302 FTEs for spending oversight in reviewing current and proposed government spending to ensure that it is efficient, effective and helping to achieve government priorities. As part of fulfilling this responsibility, TBS will manage $4.30 billion for government contingencies, government-wide initiatives, compensation requirements, operating and capital budget carry-forward, and paylist requirements.
  • $3.29 billion and 566 FTEs for employer responsibilities as TBS develops policies and sets the strategic direction for managing people and the workplace in the public service, including supporting the health and safety of public servants and creating a diverse, equitable and inclusive workforce and accessible workplaces. As part of fulfilling this responsibility, TBS will manage $3.2 billion for payments under the public service pension, benefit and insurance plans, including the employer’s share of health, income maintenance and life insurance premiums.
  • $113.4 million and 612 FTEs for administrative leadership as TBS leads government-wide initiatives, develops policies, and sets the strategic direction for federal government administration. As part of fulfilling this responsibility, TBS will advance digital government, complete its review of the access to information regime, strengthen procurement policies, and make government operations greener.
  • $11.7 million and 73 FTEs for regulatory oversight as TBS continues to lead regulatory reform efforts to improve transparency, reduce administrative burden, and lead efforts to harmonize regulations that maintain high safety standards and improve the competitiveness of Canadian businesses.
  • $93.0 million and 649 FTEs for TBS’s internal services so that it can meet its corporate obligations and deliver its programs, including supporting knowledge-based activities, to:
    • foster the well-being of TBS employees
    • build a diverse, inclusive and accessible TBS workplace
    • prepare TBS for the future (for example, by creating new digital tools to help employees work in a hybrid workplace)

Public Servants, HR Management and Guidance

In this section
  1. Return to Occupancy
  2. Other Leave with Pay (699)
  3. Vaccines – Mandate and HR Guidance
  4. Mental Health in the Public Service
  5. Collective Bargaining
  6. Pay Equity
  7. Diversity, Inclusion and Accessibility in the Public Service
  8. Official Languages in the Public Service and Modernization of the Official Languages Act
  9. Phoenix-Related Issues
    1. Damages
    2. Overpayments

6. Return to Occupancy

Issue

As public health guidance evolves, the Treasury Board of Canada Secretariat is planning for gradual increases in occupancy of federal workplaces and a phased transition to flexible, post-pandemic workplace models.

Response

  • Public servants can be confident that every measure continues to be taken to ensure their health and safety in the workplace.
  • The Government will continue to use the experience of the last two years to draw lessons and inform our research, experimentation and planning on flexible, hybrid workforce models as part of how and where public servants will work in the future.
  • There is no-one-size-fits-all approach. The Treasury Board of Canada Secretariat is supporting Deputy Heads in their transition to hybrid work models by providing guidance and best practices to promote a coherent approach while respecting the different operational realities of federal organizations.
  • Canada’s federal public service is committed to creating inclusive, flexible, healthy, and safe workplaces where a hybrid workforce can deliver results for Canadians.

Background

The Prime Minister in his December 2021 mandate letter to the President of the Treasury Board requested that she, “Work with the Clerk of the Privy Council, and in consultation with public sector unions, to strengthen and modernize the Public Service for the twenty-first century by: Bringing forward a coherent and coordinated plan for the future of work within the Public Service, including developing flexible and equitable working arrangements.”

The COVID-19 crisis resulted in an abrupt shift to remote working arrangements for public servants in all jurisdictions as Canadians made every effort to stay home and practice physical distancing. The public service responded quickly to implement unprecedented programs to support Canadians and to support our employees, but also to ensure ongoing operations and the continued delivery of key programs and services to Canadians.

The following principles continue to inform decision making and planning in the current context:

  • the health, safety, and wellness of public servants and Canadians are paramount;
  • public health advice to contain the spread of COVID-19 will be adhered to; and
  • programs and services that Canadians rely on will be maintained.

On November 15, 2021 the full implementation of the Policy on COVID-19 Vaccination for the Core Public Administration Including the Royal Canadian Mounted Police and updated Health Canada’s Public Service Occupational Health Program guidance allowed departments and agencies to begin gradually increasing occupancy and planning for re-entry into their workplaces.

On December 16, 2021 in response to the COVID-19 Omicron variant, departments and agencies were asked to pause any planned increases to building occupancy, review current occupancy levels and consider increasing remote work, as required.

On February 28, 2022, Health Canada’s Public Service Occupational Health Program updated the occupational health guidance for the federal public service recognizing the evolving public health measures related to the COVID-19 pandemic. This update allowed departments and agencies to resume their planning to gradually increase building occupancy, while continuing to respect the appropriate use of workplace preventive practices.

The Treasury Board of Canada Secretariat of Canada continues to refine and communicate a post-pandemic planning framework, including enterprise planning principles and planning phases for the short-, medium- and long-term horizons, to support deputy heads. This provides enterprise coherence while allowing deputy heads to adapt plans to their unique context and mandate. As updated occupational health guidance is issued departments and agencies continue their efforts and analysis to determine where and how federal public servants can work based on their operational contexts and the nature of their work.

The immediate and short-term planning efforts will focus on gradually increasing occupancy of federal workplaces, establishing a foundation for hybrid work models and consolidating and sharing lessons from the COVID-19 pandemic. Medium and Long-term planning will focus on framing broader transformation towards a future-ready public service.

OCHRO continues to engage with provincial, territorial and municipal counterparts (i.e. Ottawa and Gatineau) as well as networks of international public service officials, particularly through the OECD, on post-pandemic planning issues. In addition, officials across government are assessing the lessons learned from the COVID-19 pandemic in terms of what worked well and what could be improved upon as well as researching how best to maintain and maximize flexible work arrangements for employees while maintaining services to Canadians. Engagement with stakeholders, including bargaining agents, partners and communities will continue throughout the current and future phases.

7. Other Leave with Pay (699)

Issue

How has ‘Other Leave With Pay (699)’ been used in response to the COVID-19 pandemic?

Response

  • The guidance on ‘Other Leave With Pay (699)’ has been adjusted in response to the changing circumstances of the pandemic.
  • Effective November 15, of last year, ‘Other Leave With Pay (699)’ is only available under exceptional circumstances that are not already provided for in existing provisions and only for temporary use.
  • The government continues to monitor ‘Other Leave With Pay (699)’ usage to ensure sound stewardship, as well as the health and safety of employees, and will remain flexible as circumstances evolve.

Background

‘Other Leave With Pay (699)’ has been made available to federal public service employees who have been unable to work their full hours as a result of the pandemic. Its use dates back to the 1962 Civil Service Regulations, and has always been intended for situations not already covered by other types of leave and where employees are unable to report to work for reasons beyond their control.

  • A special working group was formed with bargaining agents to consult on clarifications to ‘Other Leave With Pay (699)’. Guidance came into effect on November 9, 2020, that clarified its use while respecting collective agreements. Cases were reviewed regularly by managers, and departments were instructed to carefully consider each case to mitigate negative impacts upon women, parents and members of other vulnerable segments of our workforce.

The guidance that came into effect on November 15, 2021 strikes an important balance that keeps in mind our collective responsibilities to Canadians for sound stewardship and the need to adjust to changing and long-term circumstances (such as Canada’s progress in vaccinating its population and in implementing effective public health measures, including widely available COVID-19 vaccines and rapid tests), including the Policy on COVID-19 Vaccination for the Core Public Administration including the Royal Canadian Mounted Police.

The Employer returned to the standard application of the provisions of the collective agreements and terms and conditions of employment. With this guidance, departments must now manage requests for this leave through the departmental processes that were available pre-pandemic. That is, if an employee requests an accommodation, one which triggers the legal duty to accommodate, the Employer must attempt to find an acceptable accommodation up to the point of undue hardship.

Employees may still be eligible for ‘Other Leave With Pay (699)’ if:

  • They require time off to get tested
  • Their work requires them to be onsite, and
    • remote work is not possible, and
    • They have been instructed to isolate or quarantine by a medical practitioner or public health authority

On December 20, 2021, in response to a spike in the Omicron variant and widespread school closures, a temporary provision was granted permitting the use of ‘Other Leave with Pay’ for caregiving purposes. With the easing of COVID-19 restrictions in almost all jurisdictions across Canada, this temporary provision ended on March 1, 2022.

‘Other Leave With Pay (699)’ will not be available if employees have travelled for personal reasons and are required to isolate or quarantine.

Our data shows that public servants primarily accessed this leave in the early weeks of the pandemic, based on individual need and organizational requirements. There has since been a significant and steady decline in usage.

On March 7, 2022 the Federal Public Sector Labour Relations and Employment Board issued a decision on two Public Service Alliance of Canada policy grievances regarding the employer’s guidance on the “699 leave” for reasons related to the COVID-19 pandemic. We are in the process of analyzing it.

8. Vaccines – Mandate and HR Guidance

Issue

On October 6, 2021, the Government of Canada announced the details of its plans to require vaccination across the federal public service as well as next steps for the federally regulated air, rail and marine transportation sectors.

Response

  • As the country’s largest employer, the Government of Canada has led by example to protect the health and safety of the federal workforce.
  • Throughout this pandemic, vaccination has remained one of the most effective means to protect broader public health in the face of COVID-19, along with preventive public health measures such as distancing, masking and testing.
  • The vaccine mandate has helped to keep federal workplaces and the communities in which public servants work safer.
  • The Policy on COVID-19 Vaccination for the Core Public Administration, including the RCMP requires the review of the need for the policy at a minimum of every six months. The Treasury Board of Canada Secretariat is reviewing all elements of the policy and results will be communicated in due course. Any decision made will be based on science and the advice of public health officials.

Background

The COVID-19 pandemic continues to have an unprecedented impact on the health of Canadians. Health Canada and the Public Health Agency of Canada advise that COVID-19 vaccines are a critical tool that reduce the risks of COVID-19. To protect the health and safety of public service employees, the Government of Canada announced the details of the “Policy on COVID-19 Vaccination for the Core Public Administration (CPA) including the Royal Canadian Mounted Police” (the Policy).

The Policy came into effect October 6, 2021 and was accompanied by the Framework on mandatory COVID-19 testing for implementation of the Policy, as well as the Framework for implementation of the Policy. A Managers’ Toolkit for the Implementation of the Policy was also created and has been updated five times with more subjects and questions and answers.

Bargaining agents and heads of human resources, as well as the labour relations and occupational health and safety communities, have been engaged throughout the development and implementation of the Policy, facilitating implementation across the CPA.

Employees have an obligation to provide a true attestation, which becomes a record with legal standing. Making a false statement would constitute a breach of the Values and Ethics Code for the Public Sector and may result in disciplinary action up to and including termination. All attestation information provided by employees is subject to verification and audit. Managers have the right to request proof of vaccination at any time to confirm an employee’s attestation, and it must be in a format that is recognized federally, provincially, or territorially (to be defined by the employer). Organizations are responsible for conducting audits on attestations and consent forms.

Requests for accommodation are assessed on a case-by-case basis, i.e. considering facts and circumstances that may be unique to the individual or the workplace, and always in accordance with the associated Government of Canada policy instruments.

Employers are obligated to ensure that they do not discriminate against individuals based on several prohibited grounds. This is not new: at the federal level, the Canadian Human Rights Act has been in place since 1977, and the public service has long had processes in place for considering requests for accommodation.

Managers are supported by experienced human resources professionals who receive policy guidance from the Office of the Chief Human Resources Officer, and are supported by legal and privacy advisors. Internal procedures for handling these requests must fully align to the Privacy Act and associated Government of Canada policy instruments. All data on employees’ requests for accommodation and their vaccination status are collected in accordance with the Privacy Act, the Policy on Privacy Protection and its related instruments.

Reported attestations in the Core Public Administration including the Royal Canadian Mounted Police as of March 28, 2022

  • Total Reported Attestations: 280,157
  • Fully Vaccinated: 98.5%
  • Partially Vaccinated: 0.3%
  • Unvaccinated: 0.3%
  • Accommodation Requests: 1.0%

9. Mental Health in the Public Service

Issue

Status of mental health of public servants and related supports.

Response

  • In light of the mental health impact of COVID 19, a number of actions have been taken to support public servants, including making free virtual mental health resources available through the Wellness Together Canada portal and helping Government of Canada employees easily access their departmental Employee Assistance Program for mental health support.
  • With tools like the Public Service Employee Survey, senior officials are improving the data on the mental health of employees to better understand where supports are needed.
  • The focus is now on exploring options for improving mental health supports for public servants, with a particular emphasis on the needs of equity-seeking groups who face distinct mental health challenges that can arise from structural racism and inequalities in access to mental health care.
  • My mandate letter called for the establishment of a mental health fund for Black public servants, and Budget 2022 proposes to provide $3.7 million over four years, starting in 2022-23, to the Treasury Board of Canada Secretariat for Black-led engagement, design, and implementation of this mental health fund.

Background

The President of the Treasury Board has a mandate commitment to establish a mental health fund for Black public servants. It arose from the Thompson class action suit (Nicholas Marcus Thompson et al V. Her Majesty the Queen), where on July 9, 2021, the Plaintiffs filed a motion seeking an Order for the establishment of a fund to provide mental health services and counselling for Black public servants who have suffered mental health and physical symptoms associated with experiences of racial trauma and systemic discrimination within the Public Service of Canada.

A psychologically healthy and safe workplace is the foundation of a safe, effective, productive and engaged workforce, built on progress organizations have made on implementing the Federal Public Service Workplace Mental Health Strategy and aligning with the National Standard of Canada for Psychological Health and Safety in the Workplace.

OCHRO supports organizations by:

  • providing direct support and guidance on implementing action plans to address mental health and align with the Standard
  • building capacity and connection through networks and communities of practice
  • strengthening data and business intelligence
  • providing access to credible leading practices, resources, and tools
  • raising awareness of mental health problems and illnesses and helping to reduce associated stigma

In 2016 the Government of Canada adopted the Federal Public Service Workplace Mental Health Strategy, and we continue to work closely with bargaining agents to implement this strategy and to support a safe and healthy work environment across all federal workplaces.

The Government currently has the following supports in place for all public servants:

  • The Employee Assistance Program (EAP) is a free, confidential short-term counselling service available 24/7 to employees and their immediate family members. Counselling is for personal or work-related problems, as well as crisis counselling. All departments must offer an EAP – Health Canada is the service provider of most departments (87) but not all the federal public service.
  • The Public Service Health Care Plan (PSHCP) currently provides coverage for plan members (which include eligible current employees and pensioners) and their dependants for up to $2,000 per calendar year in mental health services provided by psychologists, social workers, psychotherapists, or counsellors. Further information on current Plan coverage and eligibility criteria can be found on the National Joint Council and SunLife websites.
  • The Centre of Expertise on Mental Health in the Workplace has a web page with links to many helpful resources on a wide range of mental health-related topics for public servants, including mental health in the workplace, self-care strategies, coping with stress and financial well-being.

Many departments and agencies offer informal conflict management services (ICMS) to help individuals prevent, manage, and resolve workplace issues. Many also have their own internal mental health resource web pages and may offer further services and resources specific to their own organizations.

Public Service Employee Survey (PSES) & APEX Executive Work and Health Survey (EWHS) Results

  • Overall, the 2020 Public Service Employee Survey (PSES) reported improvements in mental health:
    • 68% of employees indicated their workplace was psychologically healthy (up from 61% in 2019); and,
    • 81% of employees indicated their department or agency was doing a good job raising awareness of mental health (up from 73% in 2019).
  • Responses showed increases in work-related stress (17% in 2019 to 18% in 2020) and being emotionally drained after a workday (29% in 2019 to 31% in 2020).
    • For management, however, these increases were more significant. At the EX-level, for example, work-related stress went from 21% in 2019 to 30% in 2020 and being emotionally drained after a workday went from 35% in 2019 to 47% in 2020.
  • The more recent APEX EWHS indicated two main areas of concern for Executives:
    • burnout-exhaustion (75% in 2021 vs. 54% in 2017)
    • diagnosis of mental health disorders (17% in 2021 vs. 16% in 2019 and 11% in 2012)

10. Collective Bargaining

Issue

The government’s negotiation of new collective agreements for public servants.

Response

  • The Government of Canada has concluded collective agreements covering nearly 99% of public servants for the 2018 round of bargaining.
  • Negotiations with the Public Service Alliance of Canada, the Professional Institute of the Public Service of Canada and the Canadian Association of Professional Employees are underway now for the 2021-22 round of bargaining and we anticipate starting negotiations with other bargaining agents in the coming months.
  • We remain 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.

If asked about the role of TBS in separate agency negotiations, including the OAG

  • TBS establishes a government-wide mandate to set all federal employers up for success in reaching fair agreements with their bargaining agents

Background

To date, the government has reached 54 agreements for the 2018 round with groups covering close to 270,000 employees or approximately 99% of public servants in the core public administration (CPA) and separate agencies.

The majority of the agreements include pattern economic increases over either three- or four-years, new provisions for caregiver leave, extended parental leave, and a memorandum of understanding on the implementation of collective agreements. Most agreements also include up to ten days of paid leave for domestic violence.

Negotiations to conclude the 2018 round of collective bargaining are ongoing between TBS and two CPA bargaining units: the Police Operations (PO) group represented by the Canadian Union of Public Employees (CUPE) and the Ships’ Officers (SO) group represented by the Canadian Merchant Service Guild. The SO group declared an impasse in negotiations and signaled an intent to request the establishment of an arbitration board. Negotiations are also ongoing between the Public Service Alliance of Canada (PSAC) and two separate agencies: the Office of the Superintendent of Financial Institutions (OSFI) and the Statistics Survey Operations (SSO). The negotiations at SSO have reached an impasse and the establishment of an arbitration board was requested in March 2022. The Canadian Security Intelligence Service (CSIS) and the PSAC concluded a tentative agreement in December 2021 which is currently pending final ratification and approval. The Office of the Auditor General also reached a tentative agreement with the PSAC on April 1, 2022, which was ratified by the members of the bargaining unit immediately thereafter and ended the strike previously declared by the PSAC. The tentative agreement is for a five-year duration (2018-2023).

In the context of the 2021-2022 round of collective bargaining, five bargaining agents have filed notice to bargain on behalf of 10 bargaining units. This includes the PSAC (for their five bargaining units, with which bargaining is ongoing since last June, as well as CAPE (for their two bargaining units) and PIPSC (for one of their six bargaining units), with which negotiations began in February and March 2022.

To date, eight bargaining units from seven separate agencies have received notice to bargaining for the 2021 round of collective bargaining. These include Parks Canada Agency (Parks), the Canadian Food Inspection Agency (CFIA), the Social Sciences and Humanities Research Council (SSHRC), the Canada Revenue Agency (CRA), the National Capital Commission (NCC), the Communications Security Establishment (CSE) as well as the Office of the Superintendent of Financial Institutions (OSFI). All bargaining units are represented by the Public Service Alliance of Canada (PSAC), except for OSFI, who received its notice to bargain from the Professional Institute of the Public Service of Canada (PIPSC).

11. Pay Equity

Issue

The Government of Canada’s commitment to ensure men and women receive equal pay for work of equal value.

Response

  • The Government of Canada is committed to creating an inclusive public service where women receive equal pay for work of equal value.
  • With the coming into force of the Pay Equity Act, TBS will be working with bargaining agents to identify and systematically close any pay gaps that exist by increasing compensation for employees in predominantly female jobs not receiving equal pay for work of equal value.
  • The Pay Equity Act has a clear process for all federally regulated employers to follow. Cost estimates will be part of future negotiations with bargaining agents and will be released publicly at the end of negotiations.

Background

With the coming into force of the Pay Equity Act on August 31, 2021, the Treasury Board of Canada Secretariat (TBS) will now work with bargaining agents and employee representatives to develop pay equity plans for employees in the core public administration and for members of the RCMP. The pay equity plans will identify gaps between the compensation of jobs held mostly by women and those held mostly by men that involve work of equal value.

Once these plans are in place, TBS will systematically close pay gaps by increasing the compensation of employees in predominantly female jobs not receiving equal pay for work of equal value.

Timing

The Pay Equity Act has a clear process for all employers to follow, including timelines to implement the Act. The Act requires employers to finalize pay equity plans within three years after the coming into force of the Act and to close pay gaps once the final pay equity plans are posted. Pay equity plans will then be updated every five years to close any new pay gaps that may have arisen.

Previous Regime

Before the new legislation came into force, the system for public service pay equity complaints was under the Canadian Human Rights Act.

The Government is managing its response to existing pay equity complaints filed under the Canadian Human Rights Act, to the extent possible, in a way that is aligned with its agenda for pay equity reform. This includes taking measures to expedite pay equity litigation, reach negotiated settlements whenever warranted, and use informal dispute resolution.

The Treasury Board Secretariat and the Association of Canadian Financial Officers (ACFO) have agreed to undertake a study to help resolve a 2016 pay equity complaint concerning employees in the Financial Management group. The joint study is presently underway.

12. Diversity, Inclusion and Accessibility in the Public Service

Issue

In early 2021, the Government of Canada announced its priorities to promote diversity and inclusion in the public service. Further commitments were highlighted in the December 2021 Mandate Letter to the President of the Treasury Board.

Response

  • The Government has launched a suite of initiatives to support departments in improving diversity and inclusion, including development and mentorship programs, executive talent management and recruitment, and amendments to the Public Service Employment Act.
  • In support of the Clerk’s Call to Action on Anti-Racism, Equity and Inclusion, and my Mandate Letter, Budget 2022 proposes to provide $3.7 million over four years, starting in 2022-23, for Black-led engagement, design, and implementation of a Mental Health Fund for Black federal public servants.
  • The Office of Public Service Accessibility is also implementing its strategy, Nothing Without Us, which includes a commitment to hire 5,000 new public servants with disabilities by 2025.

Background

In the 2020 Fall Economic Statement, the Government announced funding for the Centre on Diversity and Inclusion (CDI). CDI’s resources support the evolving diversity and inclusion agenda in the public service.

In January 2021, the Clerk of the Privy Council launched a Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service to all Deputy Ministers, Heads of Separate Agencies, and Heads of Federal Agencies – calling on them to take deliberate actions to address systemic racism and make the public service more diverse and inclusive. At the same time, the former President of the Treasury Board announced five public service priorities on diversity and inclusion:

  • disaggregating and publishing data for a more accurate picture of representation gaps
  • ensuring the right benchmarks
  • increasing the diversity of the senior leaders of the public service
  • addressing systemic barriers
  • engagement, awareness and education

We made important progress in the past year with the release of unprecedented levels of disaggregated enterprise data that provide first-ever views into the composition of 21 employment equity subgroups, including Black, Métis and Inuit employees, as well as employees with a hearing impairment or mobility challenges. This kind of data responds to requests by stakeholders to enable more granular analysis and is a foundation for better evidence-based decision-making. We’ve been sharing this data publicly on Canada.ca.

To help users easily access and analyze the numbers, we’ve launched an online interactive data visualization tool. This business intelligence tool allows users to manipulate fields and parameters easily while accessing and visualizing human resources demographic and employment equity data on the core public administration.

After 18 months of operation, we put in place several enterprise-wide initiatives, co-developed with equity-seeking employee networks, to address specific barriers. Examples include the Mentorship Plus program, which includes a sponsorship component; the Mosaic Leadership Development program, to address issues of under representation in Executive positions; and the Federal Speakers Forum, which amplifies the voices and lived experiences of diverse employees.

In Budget 2021, the Office of Public Service Accessibility was renewed for three years to help the federal public service meet the requirements of the Accessible Canada Act.

In 2019, the government established an Anti-Racism Secretariat at Canadian Heritage, which has developed an Anti-Racism Strategy for all of Canada. Multiple commitments in the strategy that apply to the public service are geared to ensure that public service leads the charge as a model employer in promoting inclusion.

13. Official Languages in the Public Service and Modernization of the Official Languages Act

Issue

The government is committed to modernizing the Official Languages Act. While Canadian Heritage is the lead department, the Treasury Board Secretariat has key responsibilities under the Act with respect to bilingualism in the public service, and communications and provision of services to the public.

Response

  • The Government is committed to promoting official languages and ensuring compliance with the Official Languages Act throughout the public service and in services to Canadians.
  • TBS is currently responsible for communications with and services to the public, language of work, and the equitable participation of English-speaking and French-speaking Canadians in the public service.
  • The modernization of the Act is an opportunity to reinforce compliance monitoring of federal institutions and to increase the linguistic capacity of our public service, thus further enhancing our ability to serve Canadians in the official language of their choice.

Background

The Official Languages Act (Act) is a quasi-constitutional act that aims to:

  • Ensure respect for English and French, their equality of status, and equal rights and privileges as to their use in federal institutions;
  • Support the development of English and French linguistic minority communities;
  • Advance the equality of status and use of English and French.

The last major revision of the Act took place in 1988. Canada’s social, demographic and technological realities have changed considerably since then, and the Act must be adapted to Canada’s current situation.

Treasury Board’s current role in official languages

Under the Official Languages Act, the Treasury Board is responsible for the general direction and coordination of the policies and programs of the Government of Canada relating to the implementation of those parts of the Official Languages Act that are related to:

  • Communications with and Services to the Public (Part IV)
  • Language of Work in Federal Institutions (Part V);
  • Participation of Anglophones and Francophones in the federal public service (Part VI).

The Treasury Board Secretariat is responsible for the implementation of these powers. It establishes and interprets official languages policies, directives and regulations and ensures that federal institutions comply with them.

Modernization

Following an analysis of stakeholder proposals and the development of options, the Government in February 2021 released a document on its intentions entitled English and French: Towards Substantive Equality of Official Languages in Canada. This document sets out a series of proposed legislative, regulatory and administrative changes to achieve a new linguistic balance. These administrative measures would include, among other things, inclusive second language training so that diverse learner needs are met as well as the revision of minimum second language requirements for bilingual supervisors.

On June 15, 2021, Bill C-32, which reflected the legislative proposals set out in the document, was introduced in the House of Commons. With the dissolution of Parliament in August 2021, Bill C-32 died on the Order Paper.

On March 1, 2022, the government introduced a new bill, C-13. This bill builds on the series of legislative proposals contained in the former Bill C-32 and its adoption would strengthen and broaden the powers of the Treasury Board in order to increase the compliance of federal institutions with their official languages obligations. More specifically, it would become mandatory for the Treasury Board to exercise the following powers:

  • establish policies to give effect to Parts IV, V and VI and subsection 41(5) of the Act or recommend policies to the Governor in Council or issue directives to give them effect;
  • monitor and audit compliance by federal institutions with official languages policies, directives and regulations, whether issued by the Treasury Board or the Governor in Council;
  • evaluate the effectiveness and efficiency of policies, directives and programs of federal institutions relating to official languages;
  • to inform the public and the employees of federal institutions about the policies, directives and programs relating to Parts IV, V and VI, and to inform the employees of federal institutions about the policies, directives and programs relating to Parts IV, V and VI and subsection 41(5).

C-13 also proposes to clarify that the Treasury Board may delegate some of its powers to individual institutions (under the current paragraph 46(2)(g)) but that it cannot delegate its overall oversight function in this way.

Additional and permanent resources would be required to enable the Secretariat to fully assume new responsibilities.

Language competencies of organizational leaders

In recent months, the Commissioner of Official Languages has received a significant number of complaints about the unilingual (English) speeches of the CEO of Air Canada and the Minister of Immigration, Refugees and Citizenship Canada (IRCC). The appointment of Marie Simon as Governor General, who is bilingual but not fluent in French, also generated some criticism, particularly about the language skills of organizational leaders. Governor-in-Council appointments – deputy heads as well as heads of Crown corporations and institutions under the Official Languages Act - are not, however, subject to bilingualism requirements.

14. Phoenix-Related Issues

a. Damages

Issue

Implementation status of the Phoenix damages agreements reached with unions in 2019 and 2020.

Response
  • We recognize that the implementation of the Phoenix pay system has had a direct or indirect impact on many current and former employees.
  • Damages agreements have been reached with all bargaining agents to compensate employees for general damages and severe impacts caused by the pay system.
  • Both current and former employees, have been compensated either in time or in cash, through processes that started in 2019. In addition, a number of claims processes were launched to allow those eligible to claim their entitlements.
  • In December 2021, the last claims processes were launched marking an important milestone, as with all compensation elements of the damages agreements now implemented.

If pressed

  • While unresolved pay issues remain, we continue to monitor the situation and meet regularly with bargaining agents at Phoenix-related forums where these issues can be raised and addressed.
Background

In May 2019, the Government of Canada reached a tentative agreement with members of the Senior Level Phoenix Union-Management sub-committee 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 for 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 that the compensation was insufficient.

June 2019 Damages Agreement (all bargaining agents except PSAC)

The agreement reached with bargaining agents (with the exception of PSAC) in 2019 applies to up to 118,000 current and 21,000 former employees.

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. In February 2020, a claims process was added to provide compensation to current and former employees for financial costs or lost investment income. A claims process for severe personal or financial hardship was launched in January 2021.

2020 PSAC Damages Agreement

The damages agreement was signed with PSAC in October 2020. 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 was provided to current employees in March and September 2021. The other claims processes for former and current employees were launched in November and December 2021.

As part of the agreement signed in October 2020 with the PSAC, the parties agreed to make payments on a best effort basis and the government proceeded with those payments as per the terms of the agreement. The agreement also mentions that applicable deductions would be applied.

To date, approximately $560M has been paid in damages relating to the Phoenix pay system, including more than $400 million in 2021.

The Treasury Board Secretariat sought an interpretation on the taxability of the payments from the Canada Revenue Agency (CRA), who administers Canada’ s tax laws for all Canadians.

The CRA confirmed that these payments are taxable and the Employer deducted taxes from the payments in accordance with this interpretation.

2021 Agreement of the catch-up clause related to the June 2019 MOA

The negotiation of the catch-up agreement ratified on March 3, 2021 was triggered following the signing of the PSAC damages agreement in the fall of 2020. The purpose was to align the compensation, as some elements of the 2020 PSAC agreement differed from the agreement negotiated with other bargaining agents in 2019.

Current and former employees covered under the 2019 damages agreement may be eligible for other monetary benefits that are part of the PSAC damages agreement, such as general damages compensation of up to $1,000 for the late implementation of the 2014 collective agreements.

This catch-up agreement applies to about 118,000 current employees and 21,000 former employees/estates of former employees covered under the 2019 damages agreement.

Current employees represented by the PSAC who received leave under the 2019 agreement as a result of working in positions outside of PSAC during the period covered by the agreement, have also received their outstanding catch-up payments.

Catch-up payments were provided to current employees in September 2021 and the claims process for catch-up payments to former employees was launched in December 2021.

b. Overpayments

Issue

Recovery of overpayment amounts resulting from Phoenix pay issues.

Response
  • Canada’s public servants deserve to be paid properly and on time for their important work.
  • Overpayment recovery is a normal part of pay administration and employees understand the need to repay amounts overpaid to them.
  • We have taken action on many fronts to provide flexibility and minimize the financial impacts on employees experiencing pay issues.
  • Since 2018, flexible repayment options have been in place to provide employees who were overpaid with multiple options to repay the government, and we remain committed to providing employees with these flexibilities, while also fulfilling our duty to taxpayers to recover salary overpayments.
Background

In 2018, measures for more flexible repayment options were provided to employees who received overpayments as a result of Phoenix pay issues, including emergency salary advances and priority payments. The Crown Liability and Proceedings Act places a statutory restriction of six years on the recovery of salary overpayments. This means that outstanding salary overpayments from 2016 will become statute barred in 2022 and will be at risk of being written off.

Phoenix-related salary overpayments and recoveries pose a risk to the Government of Canada (GC) given the size of the outstanding amount owed; and the 6-year statutory time limit on recovery, which would bar the recovery of some amounts as of February 2022.

The Crown has an obligation, as per the Directive on Terms and Conditions of Employment, to recover overpayments, including those relating to salary. This is built on the principles of fairness to taxpayers and the sound stewardship of public funds. Allowing a large number of cases to go unresolved could set a precedent for debtors to ignore a request to acknowledge their debt.

To support the GC in its efforts to recover these outstanding overpayments, and in light of this statutory restriction, the recovery procedures have been modified to include a step for employees to acknowledge their debt or enter into a recovery agreement. Acknowledgement of the debt would then restart the clock on the six-year limitation period. A draft HR information bulletin providing additional information on this process was shared with heads of human resources and bargaining agents for consultation on August 10th, 2021 and was posted on Canada.ca on October 12, 2021.

Starting on October 12, 2021, employees who received overpayments in 2016 and 2017 and do not yet have a repayment plan in place will be receiving a letter detailing the overpayment and options for repayment. They will not need to repay this amount immediately.

If an employee disagrees with the overpayment amount identified in the letter, they will be able to formally dispute this amount while still acknowledging that an overpayment exists. The Pay Centre will then initiate a review of the transaction and provide additional details as required before establishing a flexible repayment plan with the employee.

According to section 4.2 of TBS’ Policy on People Management, through delegated authority by the Treasury Board, Treasury Board Secretariat’s Office of the Chief Human Resources Officer (OCHRO) is responsible for the provision of direction, feedback, and functional leadership to deputy heads and heads of human resources regarding human resources management matters, and any associated tools, systems, and oversight. OCHRO is also responsible for the oversight of the overall performance, compliance, and integrity of people management practices for the Core Public Administration. The recovery of overpayments is outlined in the Directive on Terms and Conditions of Employment. When OCHRO last amended this directive, additional flexibilities were added, to what was already outlined regarding the recovery of overpayments.

Values and Ethics

In this section
  1. Conflict of Interest Safeguards
  2. Lobbying Act
  3. Public Servants Disclosure Protection Review Act (PSDPA)

15. Conflict of Interest Safeguards

Issue

On March 28, 2022, the Standing Committee on Access to Information, Privacy, and Ethics (ETHI) re-adopted its report from the 43rd Parliament, entitled: "Questions of Conflict of Interest and Lobbying in Relation to Pandemic Spending”, which includes a recommendation to conduct a comprehensive review of the Conflict of Interest Act.

Response

  • The Conflict of Interest Act is there to prevent conflicts between private interests and the duties of public office holders.
  • The Government is committed to ensuring that federal public office holders carry out their duties with integrity and impartiality.
  • The Government looks forward to hearing from Parliamentarians should they decide to conduct a full statutory review of the Conflict of Interest Act and bring forward recommendations.

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. Although the Act does not assign responsibilities to a specific Minister, the President of the Treasury Board has been deemed as the minister responsible for the Conflict of Interest Act.

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 for a term that expires January 8, 2025.

The Conflict of Interest Act came into force on July 9, 2007. It 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 Act required a one-time statutory review by a parliamentary committee, which was completed by the Standing Committee on Access to Information, Privacy and Ethics (ETHI) in 2014.

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, Public Services and Procurement Canada has established a Code of Conduct for Procurement and an Integrity Regime for procurements conducted under its authority. Separately, the Directive on Transfer Payments also includes safeguards to ensure that no current or former public servant or public office holder can derive direct benefit from a funding agreement.

On June 10, 2021, ETHI tabled a report entitled “Questions of Conflict of Interest and Lobbying in Relation to Pandemic Spending”. The report offered 23 recommendations regarding, among other things: the federal conflict of interest and lobbying regimes; Government contribution agreements and contracts with the WE group; and ensuring that processes for entering into contribution agreements or contracts are fair, transparent, and comply with the Official Languages Act. Among these recommendations, ETHI recommended that “the Government of Canada conduct a comprehensive review of the Conflict of Interest Act”. The dissolution of Parliament on August 15, 2021, put an end to the requirement to respond to the ETHI report.

On March 28, 2022, ETHI adopted a motion to undertake a new study into issues of conflict of interest and the Lobbying Act in relation to pandemic spending, and re-adopted its June 2021 report. No Government Response was requested. In its dissenting opinion, the Liberal Party of Canada recommended that ETHI conduct “at the earliest opportunity, a full statutory review of the Conflict of Interest Act with appropriate recommendations”.

16. Lobbying Act

Issue

The Lobbying Act is required to be reviewed every five years and the last review was conducted in 2012. On March 28, 2022, the Standing Committee on Access to Information, Privacy, and Ethics (ETHI) re-adopted its the report from the 43rd Parliament, entitled: "Questions of Conflict of Interest and Lobbying in Relation to Pandemic Spending”, which included recommendations related to the Lobbying Act and its review.

Response

  • Lobbying is a legitimate part of our democratic system and is recognized as an important part of ensuring free and open access to government.
  • The Lobbying Act ensures that the lobbying of federal office holders is conducted with the highest standards of integrity and recognizes the need for Canadians to be able to know who is lobbying whom in government.
  • The government welcomes all opportunities to hear about how transparency and accountability can be improved in lobbying activities.
  • We look forward to hearing the views of Parliamentarians should they decide to conduct a review of the Lobbying Act.

Background

The purpose of the Lobbying Act is to ensure transparency and accountability in lobbying. The Act requires lobbyists to register and file returns on their communications with public office holders, which are published in the Registry of Lobbyists. Although the Act does not assign responsibilities to a specific Minister, the President of the Treasury Board has been deemed as the minister responsible for the Lobbying Act.

The Commissioner of Lobbying administers the Lobbying Act and develops the Lobbyists’ Code of Conduct, which governs the ethical conduct of lobbyists. The Commissioner is an independent agent of Parliament. Agents of Parliament operate at arms-length from the Government by carrying out duties assigned by statute and reporting directly to Parliament. On December 30, 2017, Nancy Bélanger was appointed to serve as the second Commissioner of Lobbying, for a seven-year term.

In 1989, the first federal lobbying law, the Lobbyists Registration Act, came into force. In 2008, the law was renamed the Lobbying Act and received several major amendments, including a five-year post-employment lobbying ban for certain senior public office holders.

Section 14.1 (1) of the Lobbying Act requires that “A comprehensive review of the provisions and operation of this Act must be undertaken, every five years after this section comes into force, by the committee of the Senate, of the House of Commons, or of both Houses of Parliament, that may be designated or established for that purpose.”

The last review of the Act was conducted in 2012 by the Standing Committee on Access to Information, Privacy and Ethics (ETHI). The President of the Treasury Board does not have a legislative requirement or authority to initiate this legislative review as required by the Act

In recent years year, a series of recommendations have been made to improve the Lobbying Act. First, in February 2021, the Commissioner submitted 11 preliminary recommendations in response to a November 2020 request from ETHI. The Commissioner recommended that the Act require “registration by default” along with other changes to thresholds for registration under the Act. The Commissioner also made various other recommendations related to reporting requirements under the Act and enforcing compliance with the Act.

Second, on June 10, 2021, ETHI tabled a report entitled “Questions of Conflict of Interest and Lobbying in Relation to Pandemic Spending”. The report offered 23 recommendations regarding, among other things: the federal conflict of interest and lobbying regimes; Government contribution agreements and contracts with the WE group; and ensuring that processes for entering into contribution agreements or contracts are fair, transparent, and comply with the Official Languages Act. The dissolution of Parliament on August 15, 2021, put an end to the requirement to respond to the ETHI report.

On March 28, 2022, ETHI adopted a motion to undertake a new study into issues of conflict of interest and the Lobbying Act in relation to pandemic spending; and re-adopted its June 2021 report. No Government Response was requested. In its dissenting opinion, the Liberal Party of Canada recommended that ETHI conduct “at the earliest opportunity, a full statutory review of the Lobbying Act with appropriate recommendations”.

17. Public Servants Disclosure Protection Review Act (PSDPA)

Issue

In December 2021, the President’s mandate letter included a commitment to continue to take action to improve the government’s whistleblower protections and supports. This includes exploring possible amendments to the Act. Budget 2022 proposes to provide $2.4 million over five years, starting in 2022-23, to the Treasury Board Secretariat to launch a review of the Public Servants Disclosure Protection Act.

Response

  • The government is committed to promoting a positive, respectful, and safe public sector culture that is grounded in values and ethics, and where public servants feel safe to disclose wrongdoing.
  • The Public Servants Disclosure Protection Act helps to ensure an ethical workplace culture and supports the integrity of the federal public sector.The Government of Canada continues to make meaningful improvements to the federal disclosure process and is exploring possible amendments to the Act.
  • Budget 2022 further reaffirmed the government’s commitment, proposing to provide $2.4 million over five years, starting in 2022-23, to launch a review of the Public Servants Disclosure Protection Act.

Background

In June 2017, the Standing Committee on Government Operations and Estimates tabled its report on their independent review of the Public Servants Disclosure Protection Act. The report contained 15 recommendations covering issues such as the definition of terms, training, protection of whistleblowers, research, and assessments.

In October 2017, the government committed to implement improvements to the administration and operation of the internal disclosure process and to protection from acts of reprisal but not legislative amendments.

On February 17, 2021, the Government Operations Committee adopted a motion to readopt the 2017 report and request a government response. Since Parliament was dissolved prior to a government response being tabled, there was no longer a requirement for a response. If the Committee readopts the recommendations and requests a response, the Government will consider the substance of a response at that time.

In December 2021, the President’s mandate letter included a commitment to continue to take action to improve the government’s whistleblower protections and supports. This includes exploring possible amendments to the Public Servants Disclosure Protection Act.

OCHRO is leading the implementation of activities in support of these commitments. A number of actions to foster an environment where public servants feel safe and protected to come forward with a disclosure have been taken, including:

conducting outreach and education activities to inform public servants about the disclosure of wrongdoing process and protection against acts of reprisal;

  • taking steps to address harassment and violence in the workplace, including providing guidance to deputy heads, managers, departmental advisors and public servants on what constitutes harassment as well as how to prevent and resolve harassment in the workplace; and
  • completing implementation of the Policy Suite Reset for the Policy on People Management and the Policy on the Management of Executives, which set the foundation for the ongoing adaptation of policies to better support an ethical workplace culture in which public servants feel safe to come forward without fear of reprisal.

In addition, we have kept a pulse on this issue by:

  • monitoring departmental activities via the Management Accountability Framework as it relates to people management; and
  • monitoring public servant sentiment via the annual Public Service Employee Survey.

To meet the commitment to explore possible amendments to the Public Servants Disclosure Protection Act, the Office of the Chief Human Resources Officer is developing review options, criteria, and a project plan for research and stakeholder consultations. With the budget proposal of $2.4 million over five years starting in 2022-23, it is expected that the review process will begin in the summer/Fall 2022.

Hot Issues for TBS

In this section
    18.
  1. Second Annual Regulatory Modernization Bill (RAS)
  2. Cyber Security Incidents & Roles and Responsibilities
  3. Privacy and the Use of Data
  4. Access to Information and Transparency during COVID-19
  5. ATIA Review
  6. National Security and Intelligence Committee of Parliamentarians (NSICOP)
  7. Federal Procurement and Professional Services
  8. Revera – Public Sector Pension Investment

18. Second Annual Regulatory Modernization Bill (RAS)

Issue

On March 31, 2022, the Government introduced new legislation in the Senate, Bill S‑6, An Act respecting regulatory modernization - otherwise known as the Second Annual Regulatory Modernization Bill - to reduce regulatory burden on Canadians.

Response

  • The Government of Canada is committed to ensuring that federal regulations evolve with changing technologies and reflect current business realities, while continuing to protect Canadian’s health, safety, and the environment.
  • Bill S‑6 proposes 46 common sense changes to 29 acts, which addresses issues raised by businesses and Canadians.
  • These changes would namely reduce the burden for business, facilitate digital interactions with government, and make cross-border trade easier.
  • Many of the proposed changes may seem small but to Canadian industry and business recovering from the pandemic, they are significant.
  • The process to amend legislation, whether it’s a small change or a significant one, is the same. Grouping relatively minor legislative changes in one bill is both time and cost efficient.

Background

In the 2018 Fall Economic Statement, the Government of Canada introduced a requirement to ensure that Canada’s regulatory system continues to adapt to changing technologies and reflects the realities of Canadian businesses.

The Budget Implementation Act, 2019, No 1 included a regulatory modernization component that modified 12 pieces of legislation and included changes to digitalize paper-based processes, enable innovation through regulatory sandboxes, and make changes in consideration of zero-emission vehicles.

Business stakeholders, including those involved in the Economic Strategy Tables and the Advisory Council on Economic Growth, have stressed that having a regularized mechanism in place to address legislative irritants is critical to ensuring the regulatory system stays relevant.

The regulatory system includes both legislation passed by Parliament and regulations. Regulations provide support to laws and are enforceable by law. Regulations are made by persons or bodies that have been given the authority to make them, such as the Governor in Council or a Minister. Bill S‑6 modifies legislation, not regulations.

Amendments in this bill are proposed by regulatory departments and agencies through a call letter from the Treasury Board of Canada Secretariat. Canadians and businesses also shared suggestions through consultations and targeted regulatory reviews.

Amendments and will be administered by the following 12 organizations: Canadian Food Inspection Agency; Innovation, Science and Economic Development Canada; Natural Resources Canada; Environment and Climate Change Canada; Immigration, Refugees and Citizenship Canada; Fisheries and Oceans Canada; Canada Border Services Agency; Agriculture and Agri-Food Canada; Crown-Indigenous Relations and Northern Affairs Canada; Health Canada; Transport Canada; and Parks Canada.

Some examples of proposed changes in Bill S-6 include:

  • Changes to the Canadian Food Inspection Agency Act would allow CFIA to deliver services and businesses to interact with CFIA through electronic means rather than having to rely solely on paper-based transactions.
  • Amendments to the Canada Transportation Act would enable new mechanisms to be used to more quickly integrate regulatory changes stemming from updates to international transportation safety standards.
  • Changes to the Department of Citizenship and Immigration Act would enable information-sharing to help administer any federal or provincial law for permanent and temporary residents.

The process to develop the third version of the bill is already underway. A consultation will take place in fall 2022 to inform potential amendments for future Annual Regulatory Modernization Bills.

19. Cyber Security Incidents & Roles and Responsibilities

Issue

The Government of Canada’s approach to cyber threats that may pose a risk to government infrastructure and services, and the Government of Canada’s response to notable cyber incidents this past year.

Response

The Government of Canada, like every other government and private sector organization in the world, faces ongoing and persistent cyber threats.

The government has connected systems and tools in place to monitor, detect and investigate potential threats, and takes active measures to address and neutralize them.

Together, the Treasury Board of Canada Secretariat, Shared Services Canada, and the Communications Security Establishment work with departments to ensure the government’s cyber security risk posture is current and effective and to respond to incidents.

The government is continuously working to enhance cyber security in Canada by identifying cyber threats and vulnerabilities, and by preparing for, and responding to, all types of cyber incidents to better protect Canada and Canadians.

Background

The Government works continuously to enhance cyber security in its services by preventing attacks through implementation of protective security measures, identifying cyber threats and vulnerabilities, and by preparing for and responding to all kinds of cyber incidents to better protect Canada and Canadians.

Budget 2021 provided additional funding to the Secure Cloud Enablement and Defence Project to further improve the infrastructure, increase bandwidth, availability, and the resources to facilitate connectivity for departments.

Departments and agencies have a responsibility to ensure that cyber security is managed within their organization. TBS, SSC, and the CSE are the primary stakeholders with responsibility for ensuring the government’s cyber security posture is effective and able to respond to evolving threats. CSE, in concert with Public Safety, also provides support on cyber security from a national perspective. TBS provides strategic oversight of government cyber security event management to ensure effective coordination of major security events and support government‑wide decision-making. The Chief Information Officer of Canada sets Information Technology security policy, defines cyber security requirements, and executes decisions on the management of cyber security risks on behalf of the GC.

TBS maintains the GC Cyber Security Event Management Plan (GC CSEMP). The GC CSEMP is the whole-of-government incident response plan providing an operational framework which outlines the stakeholders and actions required to ensure that cyber security events are addressed in a consistent, coordinated, and timely fashion across the government. The plan is applicable to all departments subject to the Policy on Government Security. The most recently published plan took effect in April 2020 and is available publicly on canada.ca. The update was made to reflect the creation of the Canadian Centre for Cyber Security (CCCS) as well as lessons learned since the last update in 2018.

The GC CSEMP is currently being updated to reflect improved privacy considerations, implications of managed service providers, and lessons learned from recent cyber vulnerabilities and incidents over the past year. As part of the continuous improvement and the overall cyber governance program, the plan is tested through tabletop exercises on a regular basis. Most recently, in February 2022, a senior management simulation, EnGarde 2022, was facilitated to test the efficacy of the proposed updates. Observations from the simulation will inform the next version of the plan, which is anticipated to be published in the summer of 2022.

Since 2020, the Government experienced a number of notable cyber security events: GCKey Credential Stuffing attack, SolarWinds supply chain compromise, the exploitation of MS Exchange critical vulnerabilities, a ransomware incident at a third-party printing service that has contracts with the GC, a vulnerability with MS Print Spooler, and a vulnerability with the Apache Log4j software library. These vulnerabilities and incidents are the result of threats faced by public and private sector organizations alike.

On February 14, 2022, a special report by the National Security and Intelligence Committee of Parliamentarians (NSICOP) was released following a review of the government framework for cyber defence activities. NSICOP finds that the government has established a robust framework and clear governance mechanisms to support the defence of government networks against cyber attacks. However, these frameworks are weakened by the inconsistent application of policy and the inconsistent use of cyber defence services across the government. The Government of Canada agrees with the findings and recommendations of the National Security and Intelligence Committee of Parliament (NSICOP) and will be undertaking action to review its policy framework to identify options to extend relevant cyber defence policies and services to all federal organizations to the greatest extent possible.

20. Privacy and the Use of Data

Issue

The Treasury Board Secretariat’s role in relation to privacy and the use of data in the public sector.

Response

  • The Government of Canada is committed to protecting its data, IT infrastructure, and information ensuring that Canadians can rely on a secure, stable, and resilient digital government.
  • The Government of Canada takes the privacy of Canadians seriously and supports institutions in managing its information holdings through a suite of policies and directives, including the Policy on Service and Digital.
  • The policy ensures the government considers principles like openness, privacy, accessibility, and security when designing digital tools and services. The Directive on Privacy Impact Assessment requires that a privacy impact assessment be undertaken whenever personal information is collected and will be used to form decisions about individuals.
  • As the government continues its transformation to a more digital government, its approach and actions will continue to be guided by the Policy on Service and Digital and the Policy on Privacy Protection and will ensure respect for the privacy of Canadians.

Background

The President of the Treasury Board is responsible for the overall administration of the Privacy Act, which includes issuing policies and guidance pertaining to the protection of personal information.

The Directive on Privacy Impact Assessment requires institutions to conduct Privacy Impact Assessments for non-statistical programs and activities involving the collection, use or disclosure of personal information that raise privacy, confidentiality or security risks.

A Privacy Impact Assessment is an evaluation process which requires an institution to assess and evaluate privacy, confidentiality and security risks associated with the collection, use or disclosure of personal information, and to develop measures intended to mitigate and, wherever possible, eliminate identified risks. Under TBS policies, institutions are required to provide Privacy Impact Assessments to TBS and to the Office of the Privacy Commissioner.

The Directive on Privacy Practices requires that federal institutions establish plans and procedures for addressing any privacy breaches in their institution. The Directive also requires institutions to report material privacy breaches to TBS and the Office of the Privacy Commissioner. Material privacy breaches involve sensitive personal information or data (for example, medical or financial information or data) that could reasonably be expected to cause injury or harm to the individual.

Other TBS policy instruments such as the Government of Canada Digital Standards, the Policy and Directive on Service and Digital, and the Directive on Automated Decision-Making set requirements to ensure that personal information and data is protected and is used in a manner compatible with the Privacy Act, and that privacy protection is accounted for in any plans or strategies to manage information or data.

The Policy on Service and Digital holds deputy heads responsible for ensuring that, when managing personal information or data, including in the context of data interoperability, the privacy of individuals is protected, and that privacy is addressed in the context of any plan or strategy to manage departmental information or data.

21. 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 affected institutions’ ability to respond to access to information and personal information requests throughout of the pandemic.

Response

  • The Government remains committed to maintaining the openness and transparency of government during this challenging time and in Budget 2021, we committed significant new funding to improving and reviewing the ATI program.
  • The Treasury Board of Canada Secretariat has been working with federal institutions to develop and share best practices in processing requests within the public health measures imposed by local health authorities for the safety of federal workers and the broader community as well as reinforce ATIP as a critical function.
  • In response to the Information Commissioner’s recommendations, we have proactively made available to all Canadians more information related to COVID-19 and the government’s response.
  • The review of the access to information regime is an opportunity to look at how it is working for Canadians, including, examining the legislative framework, looking at opportunities to improve proactive publication to make information openly available and assessing processes and systems to improve service and reduce delays.

Background

In response to public health direction on COVID-19, most employees have been working remotely and many had reduced access to documents and information systems that 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.

In May 2020, TBS issued guidance to institutions to make best efforts to process requests and proactively publish information, in accordance with operational realities. In December 2021, the Chief Information Officer of Canada sent correspondence to Deputy Heads to remind them of their legal obligations under the Access to Information Act as they plan for return to workplaces, and to strongly encourage the inclusion of access to information and privacy as critical services moving forward.

TBS officials will be continuing to work with institutions and support them in developing plans to address challenges faced during the pandemic. As the most recent public health measures are lifted, TBS will double down its efforts to ensure institutions continue their planning on the resumption of activities.

Since the onset of COVID-19 measures, institutions have made progress in mitigating the effects of the COVID-19 measures on their ability to respond to requests. 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.

The review of the Access to Information Act, which began in June 2020, also offers an opportunity to have an open exchange on making ATI systems and processes more resilient. In December 2021, the President of Treasury Board released the interim ‘What We Heard’ report on the first phase of engagement and consultations undertaken as part of the review of access to information. At the same time, a number of early actions that can be taken separately and ahead of any future legislative changes to improve access to information were set out online.

These actions, implemented, planned, or underway, will tackle operational issues and leverage digital service delivery to improve how Canadians experience the access to information process. These include the design and testing of a new version of the ATIP Online Request Service system that will allow users to sign on to the service, create accounts and send and retrieve their requests through this platform securely and efficiently.

22. ATIA Review

Issue

The conduct of the Government’s Access to Information Act review

Response

  • The government is committed to ensuring that the access to information process supports the transparency and accountability of Canadian democratic institutions and will take the necessary time to meet this commitment.
  • Our government has made important progress with the changes brought by Bill C-58, and we are continuing to work to ensure that the access to information regime continues to reflect the needs of Canadians.
  • An interim report released in December 2021 provides a summary of the engagement with stakeholders, citizens and government institutions to date, and outlines the actions being taken to improve access to information in ways that have an immediate impact.
  • The government is now seeking the views of Indigenous organizations and peoples on aspects of the system that are important to them; information and input received will be reflected in an Indigenous specific What We Heard Report and will inform the final report and recommendations to be tabled in Parliament later in 2022.

Background

Canada’s current access to information regime dates to 1983, when the Access to Information Act first came into effect. Access to information represents a cornerstone of the Canadian democracy, but its administration across 265 federal institutions faces increasing pressures. In the last five years alone, the number of requests has more than doubled from approximately 68,000 requests in 2014-15 to more than 145,000 in 2019-20.

In 2015, the Government made the reform of the access to information regime a key mandate commitment for the President of the Treasury Board. In 2016, the Government announced that it would review the Access to Information Act (ATIA) in two phases, with Phase I comprising a targeted set of amendments to deliver on specific commitments, and Phase II representing a full review of the Act.

Phase I, or Bill C-58, was introduced in Parliament in June 2017 and received Royal Assent two years later, on June 21, 2019. One of the key amendments made to the Act through Bill C-58 was a requirement for the President of the Treasury Board to undertake a review of the Act within one year of Royal Assent, and every five years thereafter. This legislative requirement represents Phase II of the Government’s commitment to reform Canada’s access to information regime.

On June 18, 2020, the Government launched the Access to Information Act review in fulfilment of the legislative requirement. The review focuses on three broad areas: reviewing the legislative framework; opportunities to improve proactive publication to make information openly available; and assessing processes and systems to improve service and reduce delays. In addition, the review is also examining issues specific to Indigenous access to information.

In November 2020, the then President of the Treasury Board invited the Information Commissioner and Privacy Commissioner to provide recommendations to improve access to information, given their important roles and expertise. Both Commissioners have responded and submitted their input into the review. The President also sent invitations to the Multi-stakeholder Forum on Open Government. These invitations have been published on the review webpage in support of an open and transparent review.

An online access to information platform was launched in March 2021, where the public was able to provide submissions, register for events and participate in a user-experience survey. TBS received 34 submissions, approximately 300 survey responses and heard from 380 participants across five public events. Following the conclusion of the public engagement process, the input received was summarized in an interim ‘What We Heard’ report which was published in December 2021.

The Government has also committed to a robust engagement process with Indigenous peoples for this Review. In support of Indigenous engagement, in November 2020, the previous President invited the five National Indigenous Organizations (NIOs) to participate in the review.

TBS has held bilateral discussions with several of the NIOs, and a number of discussions with other Indigenous organizations. In March 2022, the President of the Treasury Board sent letters to 36 Modern Treaty and Self-Government holders to participate in the review. Together with policy and legal analysis, information and input received will inform the President’s final report and recommendations to be tabled in Parliament later in 2022.

23. National Security and Intelligence Committee of Parliamentarians (NSICOP)

Issue

How is the Government of Canada responding to the recommendations identified in a special report tabled on February 14, 2022, by the National Security and Intelligence Committee of Parliamentarians, on the government’s framework and activities to defend its systems and networks from cyber attacks.

Response

  • The Government of Canada, like every other government and private sector organization in the world, is subject to ongoing and persistent cyber threats.
  • Now more than ever, secure and reliable connectivity is a necessity for our daily lives and our collective safety and security, as it underpins the delivery of health care, financial transactions, safe transportation, and emergency communications.
  • The Government of Canada agrees with the recommendations of the National Security and Intelligence Committee of Parliament (NSICOP).
  • Work is already underway to implement the management action plan and further strengthen cyber security in the government.

Background

On February 14, 2022, a special report by the National Security and Intelligence Committee of Parliamentarians (NSICOP) was released, following a review of the government framework for cyber defence activities. The report examines the evolution of the Government of Canada’s cyber defence framework; assesses the role and responsibilities of relevant government organizations; and examines relevant case studies in the period from 2004 to the present.

The Committee found that the government has established a robust framework and clear governance mechanisms to support the defence of government networks against cyber attacks. However, these frameworks are weakened by the inconsistent application of policy and the inconsistent use of cyber defence services across the government.

In response to the findings, the Committee recommended that the government continue to extend and strengthen its framework for defending government networks by modernizing authorities and programs as technology evolves and that the government apply Treasury Board policies relevant to cyber defence equally and more broadly across government organizations, including the extension of advanced cyber services to all federal organizations.

The Government of Canada agrees with the recommendations of the Committee. The Treasury Board of Canada Secretariat is undertaking a number of initiatives in response to the recommendations of the Committee, including:

  • conducting a review of its policy framework to support the alignment between the scope of the Policy on Government Security and the Policy on Service and Digital to ensure that cyber defence is applied equally to departments and agencies (within the current TBS authorities under the Financial Administration Act) to the greatest extent possible.
  • undertaking a review of its policy framework to explore and identify potential options to extend Treasury Board policies relevant to cyber defence to all federal organizations, including small organizations, Crown corporations, and other federal organizations not currently subject to its cyber defence policies and directives. This review will take into consideration the Financial Administration Act and the authorities under that Act, as well as any legal considerations, and if deemed feasible, seeking the necessary authorities to extend Treasury Board policies relevant to cyber defence to all federal organizations; and
  • strengthening cyber defence measures as part of ongoing updates to the Policy on Service and Digital which includes establishing a a set of minimum-security configuration requirements for whole-of-government IT services.

The Treasury Board of Canada Secretariat will continue to work with Shared Services Canada and the Communications Security Establishment to support the extension of advanced cyber defence services, including the Enterprise Internet Service of Shared Services Canada and the cyber defense sensors of the Communication Security Establishment, to all federal organizations to the greatest extent possible.

24. Federal Procurement and Professional Services

Issue

The Government of Canada’s use of contracted consultants.

Response

  • The Government of Canada is committed to providing high quality services to Canadians, while ensuring the best value for taxpayers.
  • Contracted professional services are called upon to maintain operations when short-term specialized expertise is required; to address shortages in certain employment groups or in specific geographic locations; or to meet unexpected and temporary fluctuations in workload.
  • Short-term specialized expertise may be required for engineers or architects for a specific time-limited project like the construction of a new building or help to charter planes to repatriate Canadians from conflict areas or for doctors and nurses to provide health care for Indigenous peoples and in northern communities.
  • At the same time, the government is taking steps, internally, to address the requirement for long-term specialized expertise. For instance, the Office of the Chief Information Officer is leading on a new approach to address IT and digital needs including support to identify talent resources and help address vacancy rates.

Background

Budget 2016 announced annual reductions of $221 million in professional services, travel and government advertising. This ongoing reduction was applied to departmental reference levels starting in fiscal year 2016-17. Subsequent Federal Budgets announced new initiatives and funding to departments that resulted in a requirement for more professional services.

Government spending on External Professional Services (EPS) (a broad category that includes everything from nursing to engineering to research to management consulting) has increased 42% from $8.35B in 2015-16 to $11.85B in 2020-21Footnote 1 for a total increase of $3.5B mainly related to 4 major types of professional services:

  1. Informatics Services (Computer services, information technology and telecommunications consultants);
  2. Health and Welfare Services (Hospital services, welfare services purchased from social and related agencies, physicians and surgeons, paramedical personnel, and dental services);
  3. Business Services (Accounting and audit services, banking services, collection agency fees and charges, real estate services and other business services); and
  4. Engineering and Architectural Services (Architectural design, control and plans, construction supervision of buildings, and architecture of naval vessels, services related to assessment, remediation, care, maintenance and monitoring of contaminated sites and engineering consultants).

Federal organizations have the flexibility to be able to address their individual operational context and requirements. Treasury Board policies require organizations to ensure their procurement activities are conducted in a fair, open and transparent manner that ensures best value for money.

The Treasury Board Policy on the Planning and Management of Investments says that departments must ensure that investment decisions are aligned with results, consider areas of significant risk in achieving departmental results, and demonstrate best value while taking into consideration market conditions.

The Treasury Board Guide to Cost Estimating provides guidance for managers faced with Make-or-buy decisions: When decision-makers are considering whether to develop and deliver a program, product, or service or to arrange to have another department or the private sector do the work, they can use cost estimates to determine the one-time and the ongoing costs of each option.

25. Revera – Public Sector Pension Investment

Issue

The Public Sector Pension Investment Board (PSPIB) and its investments, particularly its relationship with Revera Inc. Revera Inc. is currently facing a class-action lawsuit related to deaths as a result of COVID-19, and unions have called on the Government to transfer ownership of Revera so as to make it public.

Response

  • 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.
  • PSPIB makes publicly available its Responsible Investment Policy which informs its investment activities and guides the way it conducts operations.

If Pressed (on Revera):

  • We are aware of reports of legal action against this company and I will not comment further on these matters.

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 in accordance with 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 an 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.

There is an established and merit-based process for nominating members to the Board of Directors of the PSPIB. 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 they have 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.

The Treasury Board of Canada Secretariat does not recommend the appointees to the PSPIB board of directors to the President; however, it serves as secretariat to the nominating committee for the PSPIB. Qualified candidates are recommended to the President by this nominating committee.

Through its portfolio of partnerships, Revera Inc. owns or operates hundreds of senior living properties across Canada, the United States, and the United Kingdom, offering seniors’ apartments, independent living, assisted living, memory care, and long-term care.

In January 2022, Revera announced an agreement for AgeCare to assume the operations of 14 of Revera’s long-term care homes in Alberta and British Columbia, and to acquire Revera’s ownership share in the 13 long-term care homes where Revera is in a joint venture with Axium Infrastructure.

In March 2022, Revera entered into an agreement for Extendicare to acquire 15% of Revera’s interest in 18 long-term care homes in Ontario and six in Manitoba, and to take over operations in all 32 remaining Revera long-term care homes in those provinces. The remaining 85% interest will continue to be owned by an affiliate of Axium Infrastructure.

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