President of the Treasury Board appearance before the Standing Committee on Government Operations and Estimates (OGGO) – Supplementary Estimates (B) 2022-23 - November 2022
Notice to readers
This report contains either personal or confidential information, or information related to security, which has been redacted in accordance with the Access to Information Act.
On this page
- A. Scenario Note
- B. Overview of the Supplementary Estimates (B) 2022-23
- C. TBS Estimates – Programs and PS Insurance
- D. Treasury Board Central Votes
- E. Strategic Policy Review
- F. President of the Treasury Board Mandate Letter Commitments
- Government-Wide
- Supply Cycle
- Public Servants, HR Management and Guidance
- Return to Occupancy and Transition to Hybrid
- Vaccines – Mandate and HR Guidance
- Mental Health in the Public Service
- Collective Bargaining
- Pay Equity
- Executive Salary Increases and Performance Pay
- Diversity, Inclusion and Accessibility in the Public Service
- Official Languages in the Public Service and Modernization of the Official Languages Act
- Phoenix-Related Issues
- Class Action – Black federal public servants (Thompson Class Action)
- Growth of the Public Service
- Indigenous languages in the Public Service
- Values and Ethics
- Hot Issues for TBS
- S-6 : Second Annual Regulatory Modernization Bill
- Cyber Security Incidents & Roles and Responsibilities
- Privacy and the Use of Data
- Access to Information
- National Security and Intelligence Committee of Parliamentarians – NSICOP
- Digital Credentials
- AG Audit – Cybersecurity of Personal Information in the Cloud
- Federal Procurement and Professional Services
- Supplier Diversity
Scenario Note
Appearance of the President of the Treasury Board, the Honourable Mona Fortier, and TBS officials before the House Of Commons Standing Committee on Government Operations and Estimates (OGGO), and the Senate Standing Committee On National Finance (NFFN) on Supplementary Estimates (B) 2022-23
Background
- The President of the Treasury Board is expected to table the Supplementary Estimates (B) 2022-23 in the House of Commons on November 18 (and in the Senate on November 22nd).
- The estimates are referred to various House of Commons standing committees, including to OGGO for TBS. In the Senate they are referred to NFFN.
- House committees may examine and amend the estimates until three sitting days before the last allotted supply day (date not yet known). After that deadline, committees may conduct ‘subject matter’ studies, but can no longer amend the estimates. There is no deadline for NFFN’s study, and they cannot amend the estimates.
- OGGO has invited the President and TBS officials to appear on November 21, 2022, as part of their study.
- The OGGO appearance is expected to be fully in person, with the President and all supporting officials appearing in the room.
- NFFN has not yet invited the President and TBS officials to appear.
- The NFFN appearance is expected to be hybrid with the President appearing in person, and supported in person by Annie Boudreau, Assistant Secretary, EMS; Karen Cahill, Assistant Secretary and CFO, CSS; and Carole Bidal, Associate Assistant Deputy Minister, Employee Relations and Total Compensation, OCHRO. The remaining officials are expected to appear remotely.
Day of – Scenario (OGGO)
- The meeting is expected to begin at 11:00 am. The President is scheduled to attend for the first hour (11:00 am to noon) along with TBS officials, and officials will remain for an additional hour of questioning (12:00 pm to 1:00 pm).
Briefing Binder
- A binder has been prepared in anticipation of the appearance, which the President’s office and supporting witnesses received on November 10. The binder provides an overview of the key government-wide items included in the Estimates, including spending focused on Indigenous peoples, Disaster relief and mitigation, and global engagement. The binder also includes material on key issues such as COVID-19 spending, financial transparency, values and ethics, and digital government.
- New issue cards include those on the Black federal public servant class action; the growth of the public service; Indigenous language in the public service; the AG’s audit on cybersecurity and personal information in the Cloud; supplier diversity; and outsourcing of contracts.
Supporting Officials
- Annie Boudreau, Assistant Secretary, Expenditure Management Sector
- Karen Cahill, Assistant Secretary and Chief Financial Officer
- Monia Lahaie, Assistant Comptroller General, Financial Management Sector, OCG
- Samantha Tattersall, Assistant Comptroller General, Acquired Services and Assets Sector, OCG
- Paul Wagner, Assistant Deputy Minister, Strategy and Transformation, OCIO
- Kelly Acton, Assistant Deputy Minister, Policy and Performance Sector
- Carole Bidal, Associate Assistant Deputy Minister, Employee Relations and Total Compensation
- Rod Greenough, Executive Director of Expenditure Strategies and Estimates, EMS (after the first hour)
Other Relevant Information
- OGGO is also expected to hear from the PSPC minister and officials on the estimates on November 24.
- OGGO continues their study on 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).
- OGGO has begun studies on both Diversity in Procurement, and on Outsourcing of Contracts. The outsourcing study heard from TBS and PSPC officials on October 3, and from public service unions on October 24. The unions were very critical of government outsourcing during their appearance. The Diversity in Procurement began with a single meeting in October and is now in a holding pattern.
- The Chief Information Officer of Canada appeared at OGGO on Thursday, November 17, 2022, as part of their study on the ArriveCan App. The Committee also received testimony from PSPC, PHAC, CBSA and SSC officials on Monday, November 14, 2022.
- NFFN held two follow-up meetings this fall on the Main Estimates 2022-23, which were studied and adopted last spring. The President appeared on the Mains in April alongside TBS officials, and some officials reappeared in October. During the October hearing, Senators raised the timing of Public Accounts and DRR tabling, collective bargaining, and the return to occupancy/hybrid future of public service.
- NFFN has begun a multi-year study about the estimates and other financial matters, with the Auditor General appearing in October at the only meeting on the subject so far.
- Recently, NFFN has been studying Bill C-31, An Act respecting cost of living relief measures related to dental care and rental housing.
- 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 financial documents (such as the Public Accounts).
Overview of Supplementary Estimates (B), 2022–23
Issue
Additional spending presented in Supplementary Estimates (B), 2022–23.
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.
- Through these Supplementary Estimates, the Government is seeking parliamentary approval of $20.8 billion in new voted spending.
- These planned expenditures support a variety of government priorities, including financial settlements and compensation for Indigenous peoples.
- The Supplementary Estimates also include proposed spending for refugee resettlement and disaster relief, as well the construction of affordable housing to address the urgent needs of vulnerable Canadians.
Background
Supplementary Estimates present information on additional spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have subsequently been refined to account for developments in particular programs and services.
The Supplementary Estimates (B), 2022–23 present a total of $25.8 billion in incremental budgetary spending, which reflects $20.8 billion to be voted and a $5.0 billion increase in forecast statutory expenditures.
If approved by Parliament, voted budgetary spending would increase by $20.8 billion (10.4%) to a total of $219.9 billion. The majority of the new voted spending is to:
- provide compensation and implement settlement agreements with Indigenous groups;
- fund the continuing COVID-19 response, both in Canada and abroad;
- provide disaster financial assistance to the province of British Columbia;
- address urgent housing needs; and
- support immigration and settlement measures.
These Estimates show, for information purposes, changes in planned statutory expenditures. Statutory budgetary expenditures are forecast to rise $5.0 billion (2.4%) to a total of $213.1 billion.
The increase is primarily due to:
- $2.0 billion for a one-time top-up to the Canada Health Transfer;
- $1.8 billion for COVID-19 tests; and
- $750.0 million in payments to provinces and territories for transit and housing.
Supplementary Estimates (B), 2022–23 also include $1.95 billion in statutory loans for financial assistance to Ukraine.
In comparison to last year, budgetary Estimates are roughly $36.2 billion or 9.1% higher than as at Supplementary Estimates (B), 2021–22. The bulk of the increase relates to the Department of Indigenous Services (up $23.0 billion) and the Department of Crown-Indigenous Relations and Northern Affairs (up $6.9 billion). This increase reflects the government’s efforts to settle Indigenous claims and support the infrastructure and services that are vital to Indigenous communities’ physical, mental, social and economic health and well-being.
TBS Estimates – Programs and PS Insurance
Issue
How much is TBS seeking in the 2022-23 Supplementary Estimates (B) for Programs and PS Insurance?
Response
- Through these Supplementary Estimates TBS is seeking $31.6 million to increase its Program Expenditures authorities in 2022-23.
- The majority of these authorities will support out-of-court settlements, as well as digital initiatives announced in Budget 2021.
- The funding will also be used to contribute to Financial Management Transformation, and create an accessible and inclusive workplace enabling full and equal participation for all employees.
- In addition, these funds include a transfer from the National Research Council of Canada to TBS to initiate a Buy Clean Secretariat for green federal procurement. This collaboration will feature support for low-carbon construction materials and low-carbon design of built assets.
- Other transfers include contributions to the Greening Government Fund from several departments to provide project funding that will help reduce greenhouse gas emissions in federal government operations. TBS is also transferring $6.4 million out to various organizations to support these kinds of projects.
- TBS will also be seeking to increase its Public Service Insurance authorities in 2022-23 by $536.5 million to ensure the Royal Canadian Mounted Police Disability Insurance Plan meets its financial obligations.
Background
TBS will be seeking Parliamentary approval to increase its Vote 1, Program Expenditures authorities in 2022-23 by $31.6 million for the following:
- $20.3 million for out-of-court settlements. Details cannot be disclosed as these are confidential agreements.
- $5.1 million for the Office of the Chief Information Officer to support the governance and oversight of digital initiatives (Budget 2021). This funding will enhance strategic direction and leadership in the areas of data and information management, information technology, security, privacy, and access to information across the Government of Canada.
- $4.3 million transfer from various organizations to TBS to support Financial Management Transformation. This funding will support the Integrated Finance & Material Systems and will be used to co-ordinate the GC wide transition to SAP S/4HANA. SAP S/4HANA is an enterprise resourcing planning software for financial management. Funding will support the government-wide transition of Financial Management Systems to the new version of SAP S/4HANA, and Executive Leadership baseline increase under the Office of the Comptroller General.
- $2.8 million to settle claims arising from the White Class Action settlement. These funds are a reprofile from 2021-22 to 2022-23 and will be used for the payment of potential claims and appeals that may come forward. The White Class action settlement agreement allows discharged members of the Royal Canadian Mounted Police (RCMP) to be reimbursed as a result of being disadvantaged because their long-term disability benefits were reduced by the disability benefits received under the Pension Act.
- $1.8 million for the Centralized Enabling Workplace Fund to create an accessible and inclusive workplace. This funding will support the creation of a more accessible and inclusive workplace that enables full and equal participation for all employees. This funding is a reprofile from previous years that will support the government in meeting these policies and legal requirements through investment in the development of new tools, guidance, process improvements and projects/initiatives aimed at improving accommodation practices and removing systemic barriers.
- $1.6 million to enhance the oversight for Benefits Delivery Modernization (BDM) program (Budget 2021). This funding will allow TBS to continue to explore enabling approaches in providing policy advice and exercise its due diligence and oversight role to the BDM program as a pathfinder for other large transformation initiatives.
- $1.1 million transfer from the Department of Public Works and Government Services to Treasury Board Secretariat to support financial management transformation initiatives and the Comptrollership Data Strategy.
- $0.4 million to oversee the implementation of an ePayroll solution (Budget 2021). This funding will enable TBS to provide enhanced oversight, guidance, and direction to Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) in moving forward to develop a potential ePayroll solution.
- $0.3 million transfer from various organizations to the Treasury Board Secretariat to support the Capacity Accelerator Project, which is required to meet increased demand for internal audit services and to continue developing a sustainable, diverse, and professional internal audit community.
- $0.2 million transfer from the National Research Council of Canada to the Treasury Board of Canada Secretariat to support the implementation of a Buy Clean Secretariat for federal procurement. This initiative will support this Buy Clean strategy through collaboration between the Treasury Board of Canada Secretariat and the National Research Council of Canada (NRC) on low-carbon construction materials and low-carbon design of built assets.
- $0.1 million transfer from Shared Services Canada to the Treasury Board Secretariat for the GCpass Service. This funding is necessary to fulfil agreements made between the department and the central agency during the project planning phase of the Internal Centralized Authentication Service (ICAS) project, now referred to as the GCpass Service. The transfer will allow TBS to support its business function role for the GCpass Service which is a new way of logging in to MyGCPay, the Compensation Web Applications and the Phoenix pay system.
- $0.05 million transfer from the Privy Council Office and Canadian Security Intelligence Service to the Treasury Board Secretariat for contributions to the Greening Government Fund. These contributions provide project funding to federal government departments and agencies and aims to support and share the results of projects that will reduce greenhouse gas emissions in federal government operations.
- $0.02 million transfer from the Department of Finance Canada to the Treasury Board Secretariat for the Financial Community Developmental Programs and the Inclusion, Diversity, Equity and Accessibility initiative. This funding will enable TBS to lead the financial management community on the initiative, strengthen capacity and increase data analytics to provide support to candidates and enhance the referral process.
- -$0.07 million transfer from the Treasury Board of Canada Secretariat to the Department of Crown-Indigenous Relations and Northern Affairs to support activities related to engagement with Indigenous Partners regarding the conducting of the Access to Information Act Review. These funds are to be used to engage with the Union of British Columbia Indian Chiefs (UBCIC) / National Claims Research Directors (NCRD) to obtain their feedback on their unique issues and concerns with access to information through the review of the Access to Information Act.
- -$6.4 million transfer to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations.
TBS will be seeking parliamentary approval to increase its Vote 20, Public Service Insurance authorities in 2022-23 by $536.5 million to ensure the Royal Canadian Mounted Police Disability Insurance Plan meets its financial obligations, and that RCMP members continue to receive disability insurance coverage.
Treasury Board Central Votes
Issue
Supplementary Estimates (B), 2022–23 includes funding in Treasury Board Central Votes which will be allocated to departments once the appropriation act is approved.
Response
- Central votes support Treasury Board in its roles as the expenditure manager, employer and general manager for the Government of Canada.
- For example, these 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.
- Government-wide initiatives in these Estimates include $1.2 million in funding for departments and agencies to strengthen their capacity to improve the design and implementation of regulations.
- Proposed funding of $385.4 million is also included to compensate departments for collective agreements signed and other adjustments made between April 1 and September 12, 2022.
- In addition, TB central votes in these Estimates include $536 million in proposed spending to fund long-term disability coverage for members of the Royal Canadian Mounted Police.
- These Estimates also include $415.0 million in TB Vote 25 to allow eligible organizations to carry forward unspent operating funds from 2021–22, up to the 5% limit.
Background
Central votes support Treasury Board in its roles as the expenditure manager, employer and general manager for the Government of Canada. 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.
Funding for four central votes has been included in Supplementary Estimates (B), 2022–23.
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 2022-23 Main Estimates include $152 million in TB Vote 10 for:
- $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 to 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.
Supplementary Estimates (B), 2022–23 includes an additional $1.2 million in TB Vote 10 for the Regulatorsʼ Capacity Fund which helps departments and agencies strengthen their capacity (e.g., temporary staff, research contracts) to incorporate economic and competitiveness considerations in the design and implementation of regulations. TBS plans to launch a call-out for project proposals in fall 2022 and will allocate this $1.2 million among approved projects. Funding allocations will be shown in future Estimates documents.
TB Vote 15, Compensation Adjustments
Treasury Board Vote 15, Compensation Adjustments, is used to compensate appropriated organizations for salary adjustments arising from negotiated collective bargaining agreements and other changes to the terms and conditions of employment of the public administration.
As the employer, Treasury Board requests funding for all organizations under its purview. This approach reduces the number of organizations appearing in Estimates and appropriation bills, streamlining the preparation and review of those documents.
When Parliament approves the appropriation act for these Supplementary Estimates, funds will be distributed from Treasury Board Vote 15 to applicable organizations. Details on the planned allocation by organization are included in an online annex to Supplementary Estimates (B).
The $385.4 million of TB Vote 15 funding in these Supplementary Estimates (B) will cover agreements signed and other adjustments made between April 1 and September 12, 2022, for:
- Executives and senior leaders in the core public administration and in separate agencies, and chief executives of appropriated Crown corporations;
- Employees in the Audit Services group at the Office of the Auditor General of Canada represented by the Public Service Alliance of Canada; and
- Students at Parks Agency Canada and the National Capital Commission.
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.
Supplementary Estimates (B), 2022–23 includes $536.5 million in TB Vote 20 for the Royal Canadian Mounted Police Life and Disability Insurance Plan. The RCMP Disability Insurance Plan provides long-term disability coverage to regular members, civilian members and employees hired under the Public Service Employment Act who are unable to perform their duties due to a disability. Monthly benefit payments equal 75% of monthly income on the date of discharge, through to age 65. This amount includes a payment of $499 million to bring the plan out of deficit and replenish the reserve fund for anticipated claims, as well as funding to support increased employer-paid premium costs.
TB Vote 25, Operating Budget Carry Forward
The Operating Budget Carry Forward allows eligible federal organizations to access unspent operating funding from the previous fiscal year, up to a limit of 5% of Main Estimates amounts. The ability to carry funds forward provides organizations with financial flexibility and discourages unnecessary year-end spending.
Supplementary Estimates (B), 2022–23 includes $415.0 million in TB Vote 25. This funding will be used to allow eligible organizations to carry forward unspent operating funds from 2021–22, up to the 5% limit. Higher carry-forward requests are due in part to ongoing growth in departmental budgets, unspent COVID-19 authorities, supply chain disruptions, delays in reaching and administering settlement agreements, as well as the introduction of new spending items and related delays in implementation. Funding allocations will be shown in future Estimates documents.
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 has two objectives.
- First, it will assess program effectiveness in meeting the government’s key priorities of strengthening economic growth, inclusiveness, and fighting climate change.
- Second, it will identify opportunities to save and reallocate resources as programs and operations are adapted to a post-pandemic reality, where, among other changes, services are increasingly delivered digitally.
- We are ensuring that Canadians’ tax dollars are being used effectively, that we are focused on the right priorities, and that government programs are delivering results for Canadians.
- We will provide an update on our work in Budget 2023.
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.
President of the Treasury Board Mandate Letter Commitments
Issue
What are the mandate commitments for the President of the Treasury Board?
Response
- As President of the Treasury Board, I am committed to developing more agile and effective ways to serve Canadians and to ensure that the Government continues to meet the challenges of today and tomorrow.
- My mandate commitments span a wide range of government priorities, including fighting climate change, enhancing digital services for Canadians, and strengthening the competitiveness of Canadian businesses.
- These commitments are rooted in the common goal of improving services and delivering results for Canadians.
Background
The Prime Minister’s letter of December 16, 2021 contains over 30 commitments for which the President of the Treasury Board is responsible in whole or in part, spanning areas such as:
- Equity, diversity, inclusion in the federal public service;
- Digital government;
- Greening government;
- Government procurement;
- Strengthening and modernizing the public service for the twenty-first century; and
- Regulatory Modernization.
The commitments include leading whole-of-government initiatives aimed at delivering improved services and results for Canadians, including:
- “Continuing leadership to update and replace outdated IT systems and modernize the way government delivers benefits and services to Canadians”
- “Supporting the Canadian Digital Service in accelerating and expanding the use of their services across government, with an aim of improving the digital experience for Canadians, including through increasing the number of digitally-accessible government services”
- “Working towards a common and secure approach for a trusted digital identity platform to support seamless service delivery to Canadians across the country”
- “Bringing forward a coherent and coordinated plan for the future of work within the Public Service, including developing flexible and equitable working arrangements.”
- “Continue leading our regulatory reform efforts in collaboration with your Cabinet colleagues to improve transparency, reduce administrative burden and lead our efforts to harmonize regulations that maintain high safety standards and improve the competitiveness of Canadian businesses.”
- “Ensure government policy continues to be developed through an intersectional lens, is reflective of the needs and aspirations of Canadians and supports our path to net-zero through:
- Continuing to refine and strengthen the quality of life framework to ensure that we achieve long-term outcomes that benefit people, and that progress towards those aims is rigorously reported;
- Working with the Minister of Environment and Climate Change on the application of a climate lens to ensure climate adaptation and mitigation considerations are integrated throughout federal government decision-making; and
- Supporting the Minister for Women and Gender Equality and Youth in the evaluation process of GBA Plus with the goal of enhancing the framing and parameters of this analytical tool and with particular attention to the intersectional analysis of race, indigeneity, rurality, disability and sexual identity, among other characteristics.”
Budget 2022 announced support for commitments related to improving government whistleblower protections and supports, and to reviewing government programs.
- It proposed to provide $2.4 million over five years, starting in 2022-23, to Treasury Board of Canada Secretariat to launch a review of the Public Servants Disclosure Protection Act.
- Budget 2022 also announced the launch of a comprehensive strategic policy review, which targets savings of $6 billion over five years, and $3 billion annually by 2026-27.
On June 25, 2022, the Government launched the task force on Services to Canadians, with a mandate to review service delivery, identify gaps and areas for improvement, and make recommendations to ensure Canadians receive the highest quality of service.
Spending Related to Indigenous Canadians and their Communities
Issue
Spending related to Indigenous Canadians and their communities in Supplementary Estimates (B), 2022–23.
Response
- As part of our ongoing journey toward reconciliation, the Government of Canada is making necessary investments to support Indigenous Canadians and their communities.
- In Supplementary Estimates (B), the Department of Crown-Indigenous Relations and Northern Affairs is seeking $6.3 billion in additional funding, while the Department of Indigenous Services is seeking $2.2 billion.
- Proposed funding would support items like claim settlements, housing, and food security.
- Other federal organizations are also requesting funding for programs targeted specifically to Indigenous communities, in areas such as fishing and policing.
- These investments will support the infrastructure and services that are vital to Indigenous communities’ physical, mental, social, and economic health and well-being.
Background
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.
In Supplementary Estimates (B), 2022–23, Department of Crown-Indigenous Relations and Northern Affairs is seeking $6.3 billion in additional funding, while the Department of Indigenous Services is seeking $2.2 billion. Together, the two departments account for roughly 41% of the total voted funding in Supplementary Estimates (B), 2022–23).
Department of Crown-Indigenous Relations and Northern Affairs (CIRNAC)
The $6.3 billion increase in funding for CIRNAC represents growth of approximately 86% over Estimates to date for 2022–23.
The funding relates primarily to funding to claim settlements, including:
- $3.0 billion to quickly implement out-of-court settlements, should agreements be reached;
- $677.6 million to replenish the Specific Claims Settlement Fund, which is used to pay settlements and tribunal awards valued at up to $150 million;
- $673.5 million for the settlement of the Blueberry River, Doig River, Halfway River and West Moberly First Nations’ Treaty 8 Land Entitlement specific claims; and
- $673.0 million for childhood claims, abuse compensation and administration costs for the Federal Indian Day Schools and Sixties Scoop Settlement Agreements.
Other CIRNAC funding covers a variety of initiatives, such as housing, food security and infrastructure:
- $458.2 million, announced in Budget 2022, for housing for self-governing and modern treaty First Nations, Inuit, and Métis;
- $87.3 million for northern food security; and
- $39.8 million to support the lifecycle infrastructure approach for existing Self-Government Agreement holders.
Department of Indigenous Services (ISC)
The $2.2 billion increase in funding for ISC represents growth of approximately 5% over Estimates to date for 2022–23.
This funding relates to a number of items, the largest of which are:
- $455.5 million to support COVID-19 public health responses and the Indigenous Community Support Fund;
- $373.1 million in Indigenous community infrastructure, primarily for water and wastewater infrastructure; and
- $264.5 million to work with First Nations on- and off-reserve, Inuit, and Métis peoples to implement and operationalize their own children and family services laws.
Other Organizations
Supplementary Estimates (B), 2022–23, also includes funding for other federal organizations to support a diverse range of programs and activities focused primarily on Indigenous people or organizations, for example:
- $194.7 million to advance reconciliation on Indigenous rights and fisheries issues (DFO);
- $34.2 million for Indigenous Natural Resource Partnerships (Budget 2022) (NRCan);
- $22.6 million for the Keewatin Infrastructure and Equipment Project through the Remote Passenger Rail Program (Transport); and
- $20.5 million for First Nation and Inuit policing facilities as well as $15.0 million for the First Nations and Inuit Policing Program (PSEP).
COVID-19 Expenditures
Issue
Spending related to the government’s response to COVID-19 included in Supplementary Estimates (B), 2022-23.
Response
- The health, safety and well-being of all Canadians are of the utmost importance to the Government.
- The Government continues to address the impacts from the COVID-19 pandemic through funding for health measures both in Canada and abroad.
- Notable measures in these estimates include:
- $732 million for Global Affairs Canada to help developing countries access vaccines, therapeutics and diagnostics;
- Almost $700 million for the Public Health Agency of Canada to support research and vaccine development and procurement; and
- More than $450 million for the Department of Indigenous Services for public health responses and the Indigenous Community Support Fund.
Background
The Supplementary Estimates (B), 2022-23 include $4.8 billion to support the Government’s response to the pandemic, including statutory budgetary expenditures forecast of $1.8 billion for COVID-19 tests. This builds on the $9.7 billion in planned spending for COVID-19 measures (including the Economic Response Plan) that was identified in the Main Estimates, 2022–23 and $1.8 billion in Supplementary Estimates (A), 2022-23.
COVID-19 related expenditures in Supplementary Estimates (B), 2022-23 include:
- $732.0 million for Global Affairs Canada to help developing countries access vaccines, therapeutics and diagnostics – This funding will be used to procure and distribute COVID-19 vaccines, diagnostic tests and therapeutics, as well as to build capacity in developing countries’ health systems. This funding will also support additional activities in targeted countries with low vaccination rates, including COVID-19 vaccine delivery support, outreach and awareness campaigns to increase vaccine confidence, and vaccine production;
- $696.2 million for the Public Health Agency of Canada to support research and vaccine development and procurement – This funding is to support the continued development and acquisition of vaccine doses, including new formulations to provide the best protection against COVID-19;
- $455.5 million for the Department of Indigenous Services for public health responses and the Indigenous Community Support Fund – This funding will support public health measures (such as vaccination and testing) in Indigenous communities and address emerging needs as a result of the COVID-19 pandemic (e.g. perimeter and food security, mental health, elder and cultural supports). Funding will also be used to increase home care support services and to contract with agencies for nursing staff to address shortages in the short-term; and
- $400.0 million for the Public Health Agency of Canada for border and travel measures and isolation sites – This funding will be used for COVID-19 testing of international travellers entering Canada, designated quarantine facilities for travellers, as well as continued oversight, development, implementation and monitoring of border measures.
In 2021–22, amounts related to the COVID-19 Economic Response Plan were identified in the Estimates, and the authorities and expenditures were reported in GC Infobase. Budget 2022 pivots the government’s focus away from broad-based emergency COVID-19 expenditures. For 2022–23, the reporting of COVID-19 authorities through GC Infobase will be limited to those items contained in the Economic Response Plan.
Disaster Relief and Mitigation Spending
Issue
$1.5 billion in funding for the Disaster Financial Assistance Arrangements contribution program, and other disaster relief and mitigation spending in Supplementary Estimates (B), 2022–23.
Response
- The Government is committed to helping Canadians who are most in need, including those who have suffered losses due to natural disasters.
- Within Canada, emergency management responsibilities are shared by federal, provincial and territorial governments, non-government organizations, business owners and individual citizens.
- The $1.5 billion in funding in these Supplementary Estimates will be used to assist British Columbia with its response and recovery costs from recent natural disasters.
- Additional proposed funding will provide agricultural disaster relief funding, support non-governmental organizations’ ability to provide emergency disaster relief, and advance Canada’s Flood Risk Plan.
Background
Disaster Financial Assistance Arrangements
In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by the Department of Public Safety and Emergency Preparedness. When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.
Through the DFAA, assistance is paid to the province or territory – not directly to affected individuals, small businesses or communities. A request for reimbursement under the DFAA is processed immediately following receipt of the required documentation of provincial/territorial expenditures and a review by federal auditors.
Federal funding is based on a cost-sharing formula, with a wide range of eligible expenses, including emergency services, security measures, repairs to public buildings and infrastructure, clean-up, as well as restoration or repairs to individual principal residences, small businesses and farms.
The $1.5 billion in funding in Supplementary Estimates (B), 2022–23 will be used to assist British Columbia with its response and recovery costs from recent natural disasters: the 2020 flood and landslides as well as the 2021 fires, floods and landslides.
On March 22, 2022, the President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness, announced an advisory panel that will review and make recommendations to update the DFAA program. The increase in the frequency and cost of natural disasters in recent years has led to the growing cost of the program. The DFAA program review is being launched to ensure that an updated, sustainable system continues to be available to provinces and territories for disaster recovery.
Other Disaster-related Funding
Supplementary Estimates (B), 2022–23 also includes:
- $108.0 million of payments under the Farm Income Protection Act (statutory) for agricultural disaster relief;
- $77.0 million to help non-governmental organizations build capacity and deploy resources to respond to emergencies including the COVID-19 pandemic or other large-scale emergencies such as wildfires and floods;
- $8.0 million to support the Canadian Red Cross’s urgent relief efforts related to COVID-19, floods and wildfires; and
- $3 million to continue to advance Canadaʼs Flood Risk Plan.
Hurricane Fiona
The Government of Canada is working with partners from all orders of government, and across federal departments and agencies, to support recovery and clean-up efforts. Funding specifically related to Hurricane Fiona is not included in Supplementary Estimates (B), 2022–23; it will appear in future Estimates.
On October 4th, the Prime Minister announced the Hurricane Fiona Recovery Fund which will provide up to $300 million over two years, starting this year, to help those impacted by the storm and to support long-term recovery efforts. This additional funding will provide support for costs that may not be covered by existing federal programs, including the Disaster Financial Assistance Arrangements.
Housing
Issue
Supplementary Estimates (B), 2022–23 includes funding to increase the availability of affordable housing.
Response
- Everyone deserves a safe and affordable place to live and raise their families. Canada’s housing shortage is making it difficult for Canadians to find affordable housing.
- Supplementary Estimates (B), 2022–23 includes funding for housing measures announced in Budget 2022, including affordable housing and housing for Indigenous peoples.
- The proposed measures in Budget 2022 — together with actions taken by other orders of government— will put Canada on the path to double the construction of new housing and meet Canada’s housing needs over the next decade.
Background
Canada is facing a housing shortage. To fill the gap that already exists—and to keep up with a growing population over the next decade—Finance Canada and the Canada Mortgage and Housing Corporation (CHMC) estimate that Canada will need to build at least 3.5 million new homes by 2031.
In a given year, about 200,000 new housing units are built in Canada. To meet the housing needs of a growing population, Canada will need to double the current rate of new construction over the next decade.
Budget 2022 proposed measures that—in partnership with actions taken by other orders of government—will put Canada on the path to double the construction of new housing and meet Canada’s housing needs over the next decade.
Supplementary Estimates (B), 2022–23 includes funding for the following housing measures announced in Budget 2022:
- $750.0 million in payments to provinces and territories for transit and housing (Finance, enacted through the Budget Implementation Act, 2022, No. 1);
- $458.2 million for self-governing and modern treaty First Nation, Inuit, and Métis housing (CIRNAC);
- $441.6 million for the Rapid Housing Initiative which aims to create new affordable housing for people and populations who are vulnerable (CMHC); and
- $10.3 million to co-develop an Urban, Rural and Northern Indigenous Housing Strategy CMHC).
In addition to funding announced in Budget 2022, Supplementary Estimates (B), 2022–23 also contains funding for a number of other Canada Mortgage and Housing Corporation programs, such as:
- $91.8 million for the Affordable Housing Innovation Fund;
- $38.0 million for the Federal Lands Initiative which supports the transfer of surplus federal lands and buildings be developed or renovated for use as affordable housing; and
- $27.0 million for the Rental Construction Financing Initiative.
Finally, Supplementary Estimates (B), 2022–23 also includes $200 thousand to support the Federal Housing Advocate, housed at the Canadian Human Rights Commission, which helps to promote and protect the right to housing in Canada.
Global Engagement
Issue
Supplementary Estimates (B), 2022–23 includes funding for Canada to support other nations and displaced persons, through foreign aid and immigration.
Response
- The Government recognizes the importance of foreign aid to promote sustainable prosperity, address a range of worldwide issues, and enhance our own security.
- These Supplementary Estimates (B) reflect funding for Canada to help address global challenges, primarily through financial and humanitarian aid to Ukraine and developing nations.
- The Estimates also include funding to support Afghan refugees and Ukrainians displaced by war, as well as ongoing immigration measures such as legal aid.
Background
Supplementary Estimates (B), 2022-23 reflects funding for Canada to contribute to facing global challenges, primarily through:
- foreign aid, focused on Ukraine and on developing nations; and
- immigration measures, primarily for Afghan refugees and Ukrainians displaced by war.
Ukraine
- $1.95 billion in loans to Ukraine (Finance, under the Bretton Woods and Related Agreements Act). The loan amounts were disbursed between April 20 and August 17, and are made up of
- $1.45 billion through the IMF Administered Account which assists Ukraine in meeting its balance of payments and budgetary needs, and in stabilizing the country’s economy; and
- $500.0 million through a bilateral sovereign loan;
- $184.4 million for immigration, settlement measures, temporary accommodations and income support for Ukrainians (IRCC, GAC, PHAC, IRB);
- $151.7 million to advance Ukrainian resilience and early recovery, including humanitarian assistance and support for landmine removal (GAC); and
- $250.0 million reallocation of resources to provide military aid (DND).
Afghan Refugees
- $658.5 million for the resettlement of Afghan refugees, including processing new permanent resident admissions, settlement services, security and enforcement activities, as well as health screening and assessments (IRCC, CBSA, PHAC, ESDC).
Foreign Aid for Developing Nations
- $732.0 million to help developing countries access vaccines, therapeutics and diagnostics to fight COVID-19 (GAC); and
- $250.0 million to respond to the global food and nutrition crisis, with a focus in Sub-Saharan Africa (GAC). The funds will help key humanitarian food and nutrition partners, both Canadian and international, reach more people in more places with life-saving services. This includes food assistance, emergency cash and vouchers, and ready-to-use therapeutic food, often used for emergency feeding of malnourished children.
Broader immigration measures
- $170.7 million to provide asymptomatic asylum seekers with temporary accommodations and support services (IRCC);
- $113.5 million for departments to implement the 2022-2024 Immigration Levels Plan (IRCC, IRB, CBSA, CSIS, RCMP); and
- $43.5 million for legal aid for refugees and immigrants (Justice).
Treasury Board Role in Granting Spending Authorities
Issue
Treasury Board approves voted expenditures before they are presented in Estimates and appropriation bills. However, Treasury Board does not typically approve statutory spending, including tax 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.
Estimates Reform
Issue
Changes made to Estimates and other financial reporting to increase transparency and respond to recommendations.
Response
- The Government of Canada is committed to making 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 of financial information and to make Estimates documents easier to understand.
- The government continues to welcome feedback on its documents and processes.
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.
- A pilot project to align the Estimates in the 42nd Parliament was undertaken and proved unsuccessful. The pilot was not extended, and 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 of Canada Secretariat (TBS) 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.
On March 29, 2022, the Senate Committee on National Finance (NFFN) passed a motion so that the Committee be authorized to conduct a three-year study of the federal estimates process and other finance issues and to submit a final report no later than April 14, 2024. They are expected to begin this study in Fall 2022.
TBS 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 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.
- Departments appreciated the flexibility in the timelines for obtaining Treasury Board approvals and having fewer new approvals to risk-manage through the fiscal year. However, there were mixed reviews of the Budget implementation votes.
- 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.
- The Standing Committee on Public Accounts recommended in their report on the Public Accounts of Canada 2021 that the tabling date be changed to October 15.
- 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.
- The government will consider the PAC report and the steps required to ensure the Public Accounts can be tabled by October 15 which may be feasible. Consultations will be held with the Receiver General of Canada, the Office of the Auditor General, and the CFO Community to assess how timelines can be amended to facilitate this target tabling date. Consideration will be required in relation to election years as the current requirement is that Parliament must be in session to table to the Public Accounts.
- Recent federal elections (2019 and 2021) took place in the fall and resulted in the later tabling of Public Accounts and 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. In these cases, the time needed for new ministers to review and approve the reports for their portfolios is compressed and have a consequence on the timing for tabling.
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.
Overview of Roles and Responsibilities
Issue
Roles and responsibilities of the Treasury Board, the 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:
- 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.
- 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.
- 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.
Since December 2003, the Treasury Board has also been asked to serve as the Committee of the Privy Council advising the Governor in Council. This role is often referred to as “Treasury Board, Part B.” The principal role of Treasury Board, Part B, is to provide “regulatory oversight”, reviewing and approving most regulations and orders-in-council.
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:
- coordinating the activities of the Secretary, Comptroller General, Chief Human Resources Officer and the Chief Information Officer of Canada and delegating responsibility to the Secretary or other officials accordingly;
- recommending external members of departmental audit committees;
- establishing the form and tabling of the Public Accounts;
- publishing a consolidated quarterly report on Crown corporations;
- receiving and tabling a wide range of reports under legislation or Treasury Board policies.
Other statutes assign specific authorities to either the President or the Treasury Board. For example, the President has the authority to:
- establish policies and forms with respect to the administration of the Access to Information Act and the Privacy Act;
- administer components of the Official Languages Act;
- administer components of the Public Servants Disclosure Protection Act.
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:
- engage in collective bargaining under the Federal Public Sector Labour Relations Act;
- make rules respecting deployments, probation and promotion under the Public Service Employment Act;
- set pay levels for Canadian Armed Forces members under the National Defence Act.
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.
Return to Occupancy and Transition to Hybrid
Issue
As public health guidance evolves, the Government is gradually increasing occupancy of federal workplaces and continuing a phased transition to flexible, post-pandemic workplace models.
Response
- Coming out of the pandemic, the federal government has moved from a remote by default to a hybrid by design approach. As is the case in many organizations around the world, hybrid work is here to stay.
- Departments have been increasing occupancy in their respective worksites since the spring and more and more public servants in the Core Public Administration are now making their way into offices on a regular basis.
- In addition to providing the flexibility for departments and agencies to serve Canadians as effectively as possible, hybrid work provides the opportunity to reduce costs and greenhouse gas emissions associated with excess building space and commuting.
- Public servants can be confident that every measure continues to be taken to ensure their health and safety in the workplace.
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.”
TBS is addressing this Mandate Letter Commitment in part by addressing Employer-led policies to enable hybrid as a component of “flexible and equitable working arrangements”. Per the President of the Treasury Board, “hybrid is here to stay”. Additional measures to address how TBS, PCO, and the Central Service Providers (PSPC, SSC, PSC) will enable the Future of Work are being defined and will serve as the basis for future consultations. It is paramount that the Future of Work envisioned for the Public Service enables departments to fulfill their mandates, including improved service delivery for Canadians.
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. During this time, federal public servants proved their ability to adapt to new ways of working, both on-site and remotely, while delivering results for Canadians – even as many dealt with a sudden and unplanned shift from the office to working remotely. 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.
In November 2021, 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 (PSOHP) 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.
On May 12, 2022, Health Canada’s PSOHP further updated its occupational health guidance to advise that departments and agencies could return to full building occupancy with appropriate use of workplace preventive practices. To support Deputy Heads in the transition to hybrid work approaches, the Treasury Board of Canada Secretariat of Canada, in its role as the Employer, continues to refine and communicate a post-pandemic planning framework, including enterprise planning principles and policy updates. By modifying existing policies for people management, asset management, and information security, Treasury Board provides enterprise coherence while allowing deputy heads to adapt plans to their unique context and mandate.
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 transition to hybrid models and modern people management approaches. TBS is also conducting a systematic review of hybrid policies for which updates are required. In addition, officials across government are assessing the lessons learned from the experience of hybrid work. Engagement with stakeholders, including bargaining agents, partners, and communities on next steps of the Future of Work plan will continue throughout the current and future phases.
As we work to develop a plan for the future of work within the Public Service, it is important to recognize that it is not only about hybrid work, but something much larger. As the Employer, it is about stewarding the transformation of the people management and human resources practices in the public service. TBS and OCHRO are implementing the changes we will need to make changes to modernize people management practices including flexible work models, but also talent management, skills and inclusion, how we organize work, and being digital and data driven.
Vaccines – Mandate and HR Guidance
Issue
The Policy on COVID-19 Vaccination for the Core Public Administration, including the RCMP, the details of which were announced on October 6, 2021, was suspended on June 20, 2022.
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 during the COVID-19 pandemic.
- The Policy on COVID-19 Vaccination for the Core Public Administration, including the RCMP came into effect in October 2021.
- Over 98% of employees reported being fully vaccinated after the Policy came into effect in October 2021.
- The Policy includes a 6-month review requirement to ensure its application remains relevant and effective. Following this review, the Policy was suspended on June 20, 2022, based on the success of Canada’s vaccination campaign and the evolution of the pandemic.
- All Canadians are encouraged to stay up to date with their vaccinations.
If pressed on auditing and verification
- The suspension of the policy did not impact the verification and audit approach organizations put in place to review and validate employee attestations. The verification process is managed by each organization.
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.
The Policy was reviewed, and a decision was made to suspend it as of June 20, 2022 but the audit and verification requirement and process remains in effect.
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 had an obligation to provide a true attestation, which became a record with legal standing. Making a false statement constitutes 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 were 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 were 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.
Reported attestations in the Core Public Administration including the Royal Canadian Mounted Police as of June 20, 2022:
- Total Reported Attestations: 279,435
- Fully Vaccinated: 98.5%
- Partially Vaccinated: 0.3%
- Unvaccinated: 0.3%
- Processed Accommodation Requests: 73%
Mental Health in the Public Service
Issue
Status of mental health of public service employees and related supports.
Response
- As one of the country’s largest employers, the Government of Canada must show leadership in building awareness about mental illness and in supporting employee mental health and well-being.
- The Government has taken several steps to support employees, including making free virtual mental health resources available through the Wellness Together Canada portal, helping employees access their departmental Employee Assistance Program more easily, and increasing the annual coverage on mental health services under the Public Service Health Care Plan.
- We are also collecting data through the Public Service Employee Survey and the new Federal Public Service Mental Health Dashboard to better understand where additional supports are needed.
- In addition, Budget 2022 provided $3.7 million to the Treasury Board of Canada Secretariat to develop a mental health fund for black public service employees. This work is being co-developed with Black employee networks.
Response
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 continues 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 service employees:
- 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. September 2022, the Government of Canada announced changes for the PSHCP. Effective July 1, 2023, PSHCP members and their eligible dependants will have access to $5,000 per calendar year in mental health services and will no longer require a prescription to access the services. 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 service employees, including mental health in the workplace, self-care strategies, and coping with stress.
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)
The President of the Treasury Board has a mandate commitment to establish a mental health fund for Black public service employees. 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 service employees who have suffered mental health and physical symptoms associated with experiences of racial trauma and systemic discrimination within the Public Service of Canada.
Collective Bargaining
Issue
The government’s negotiation of new collective agreements for public servants.
Response
- Negotiations with most bargaining agents are underway. We will be starting negotiations with other bargaining agents in the coming months.
- Treasury Board and the Association of Canadian Financial Officers recently signed a collective agreement for the new Comptrollership Group, which includes an average economic increase of 2.7% per year. The agreement has been ratified by the union membership. We are optimistic that similar agreements can be reached with other groups.
- Four Public Service Alliance of Canada (PSAC) groups representing 120,000 public servants in the Core Public Administration declared an impasse in negotiations. Public Interest Commission hearings are scheduled to begin in the coming weeks. PSAC is asking for average increases, including pay and other provisions, of up to 14% per year for 3 years across their bargaining groups.
- 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.
Background
To date, the government has reached 55 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 caregiving 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 (CMSG). The SO group has declared an impasse in negotiations and, on May 3, 2022, filed a request for the establishment of an arbitration board with the Federal Public Sector Labour Relations and Employment Board (FPSLREB). The Employer has filed a complaint with the FPSLREB indicating that the CMSG failed in its legal duty to negotiate in good faith. The FPSLREB’s decision on this complaint is pending. Negotiations are also ongoing between the Public Service Alliance of Canada (PSAC) and two separate agencies: the Statistics Survey Operations (SSO) and the Office of the Superintendent of Financial Institutions (OSFI). The negotiations at SSO reached an impasse and the establishment of an arbitration board was requested in March 2022. The arbitration hearing was held July 12-14, 2022, and the arbitral award was released on October 28, 2022.
Negotiations at OSFI also reached an impasse and the PSAC requested the establishment of an arbitration board in June 2022. The hearing is schedule December 8, 2022.
In the context of the 2021-22 round of collective bargaining for the CPA, 13 bargaining agents have filed notice to bargain on behalf of 24 bargaining units. Only four bargaining agents have yet to serve notice to bargain. This includes the AJC (for the Law Practitioner group), the CMSG (for the Ship’s Officers group), the FGDTLC-East (for the Ship Repair East group), and the NPF (RCMP Members below the rank of Inspector and Reservists). On May 19, 2022, PSAC announced publicly that it is declaring impasse for four of its five bargaining units (PA, TC, SV, EB). CAPE is the only other bargaining agent to have signalled an intent to declare impasse, but they have not officially done so and are currently engaged in mediation with the Employer.
To date, twenty-four (24) of the thirty (30) bargaining units in separate agencies have received notice to bargain for the 2021-2022 round of collective bargaining. These include groups represented by three (3) different bargaining agents; PSAC, PIPSC and the Research Council Employees’ Association. Eleven (11) separate agencies have started or are in the process of starting the collective bargaining process with their respective groups. These include Parks Canada, Canadian Food Inspection Agency, Social Sciences and Humanities Research Council, National Capital Commission, Canada Revenue Agency, Communications Security Establishment, Office of the Superintendent of Financial Institutions, National Research Council of Canada, National Film Board, Canadian Nuclear Safety Commission and Canada Energy Regulator. On September 1, 2022, the PSAC declared an impasse with the Canada Revenue Agency for the Program Delivery and Administrative Services group. The FPSLREB confirmed that the parties would participate in mediation in December with PIC hearings tentatively scheduled in January and February.
Pay Equity
Issue
The Government of Canada’s commitment to ensuring 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.
- TBS is working with bargaining agents and employee representatives to meet the requirements set out in the Pay Equity Act. This includesestablishing pay equity committees and developing pay equity plans that identify and address gaps in compensation for women and men where the work is of equal value.
- With pay equity plans in place, we will then 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.
- Canadians expect women to be full participants in the economic, social and democratic life of our country. This initiative is among the many steps the Government of Canada is taking to create a more inclusive federal public service.
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.
The Pay Equity Act calls for one pay equity plan to be developed for members of the RCMP and a separate plan for other employees in the core public administration.
In recognition of the size and complexity of the core public administration, in summer 2022, TBS submittedan application to the Pay Equity Commissioner to have multiple pay equity plans covering core public administration employees (excluding RCMP members).
Applications to the Pay Equity Commissioner for multiple pay equity plans are permitted under the Pay Equity Act. The Commissioner will make the final decision on any such application after hearing from all workplace parties.
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.
Executive Salary Increases and Performance Pay
Issue
The government of Canada approved retroactive base pay increases for executives and certain other senior levels on April 14, 2022 and published the results of the Performance Management Program for Executives in the Core Public Administration (CPA) for the 2020- 2021 cycle on July 29, 2022.
Response
- Performance pay is an important part of executives’ compensation that helps deliver results for Canadians and supports the attraction and retention of talent. It must be re-earned every year.
- Performance commitments for executives are based on performance measures specific to each executive’s role and responsibilities. Executives must deliver on these commitments while embodying the Key Leadership Competencies and the Values and Ethics Code for the Public Sector.
- Similar plans that reward executives for the delivery of expected results are common among Canadian private and public sector organizations.
If asked about Performance Pay and linkages to objectives in Departmental Plans:
- Departmental plans set out broad, high-level targets for departments while performance targets for individual employees are set using specific criteria, which include management excellence and corporate objectives.
Background
Salary Increases
The government approved retroactive base pay increases for executives and certain other senior levels on April 14, 2022. Executives base pay had not been revised since April 1, 2017. The retroactive increases are 2.8% in 2018-2019, 2.2% in 2019-2020, 1.5% in 2020-2021, and 1.5% in 2021-2022 to the base salaries of senior leaders.
The retroactive salary increases are in line with increases in collective agreements of other occupational groups. The implementation of the increases will proceed in a phased approach and the timeline outlined below could vary for organizations not served by the Public Service Pay Centre.
- The first phase is focused on the completion of the 2021-22 performance pay cycle by the end December 2022.
- The second phase is focused on the implementation of new pay rates. This began in fall 2022 and will be completed by the current fiscal year.
- The final phase will focus on processing retroactive payments for executives and will begin in 2023 following the completion of the performance pay cycle. Priority will be given to active executives, followed by retired executives and then employees who acted in executive positions during the retroactive periods. This phase is expected to be completed by the end of 2023-24.
Performance Pay
Compensation for executives is different from that of other employees, due to the nature and scope of their work. In addition to base salary, executives may earn performance pay that is composed of at risk pay and, for a few, a bonus that reflects the level of achievement of their objectives and the demonstration of the Key Leadership Competencies. Deputy Heads are responsible for managing performance pay in their organizations.
The approved salary increases are not changing the rules and policy for performance pay. However, performance is calculated as a percentage of base salary. As such, performance pay will also increase as salary increases, even if there is no change to performance pay policy per se.
- Executive performance pay is part of existing departmental reference levels and is already accounted for in the government’s annual appropriation process.
- Executives in the core public administration are eligible for performance pay when they meet the commitments outlined in their annual performance agreements and demonstrate Key Leadership Competencies.
- Performance pay is an important component of executives’ total compensation package and must be re-earned each year. The at-risk nature of performance pay helps hold executives accountable for delivery of results and excellence in leadership.
- Performance pay has two components:
- At-risk pay – calculated as a percentage of salary; must be re-earned every year and is based on the extent to which performance commitments were achieved; and
- Bonus pay – calculated as a percentage of salary; must be re-earned every year and only awarded for truly exceptional performance.
- Executives who do not meet performance expectations or cannot be assessed are not eligible for performance pay.
- In 2020-2021, 6,738 executives (98.2%) across the core public administration earned performance pay while 985 (14.4%) of executives received a bonus as part of their performance pay. The expenditure for at-risk pay was $102.70M and bonuses was $5.06 for a total of $107.76 M.
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 of Canada continues efforts to create a federal public service that sees our differences as our strength and provides all public servants with a deep sense of belonging.
- The government has launched a suite of initiatives to support departments in improving diversity and inclusion.
- For instance, the Mentorship Plus initiative and the Mosaic Leadership Development Program help equity seeking employees advance to leadership roles.
- We are also collecting and publishing disaggregated data to better understand the experiences of racialize groups to determine where additional supports may be needed.
- As well, amendments to the Public Service Employment Act will address potential bias and barriers in staffing.
- We are also implementing theAccessibility Strategy for the Public Service of Canada, which aims to improve workplace accessibility in the public service of Canada.
- In addition to these efforts, Budget 2022 proposed $3.7 million over four years, starting in 2022–23, to develop a Mental Health Fund for Black federal public service employees. This work is being co-developed with Black employee networks.
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
Important progress in the past year has been made 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. Data is publicly available on Canada.ca.
To help users easily access and analyze the numbers, an online interactive data visualization tool has been launched. 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 almost 2 years of operation, CDI produced concrete results. Several enterprise-wide initiatives have been put in place, co-developed with equity-seeking employee networks, to address specific barriers. Examples include:
- The launch of the Mentorship Plus Program, which includes a sponsorship component that pairs members of under-represented groups with executives, enhancing traditional mentorship by including sponsorship, thus providing more equitable access to career development opportunities for all public servants
- To date, there are 51 departments and agencies taking part in the Mentorship Plus program across the Federal Public Service.
- The launch of the Mosaic Leadership Development Program, intended to address key issues of under-representation in EX positions, which is one of the hardest barriers to overcome for under-represented groups. The first cohort saw the successful graduation of 39 diverse participants.
- More diverse cohorts of the Executive Leadership Development Program (ELDP), with the fall 2020 cohort as the most diverse cohort since the inception of program in 2016, with 52% of participants from at least one of the most under-represented employment equity groups (Indigenous peoples, members of visible minorities, and persons with disabilities)
- Talent enablement strategies targeted to specific groups, including Black and Indigenous executives, to increase their representation in senior leadership roles
- Amplification of the voices of diverse employees through the new Federal Speakers’ Forum for Diversity and Inclusion. The forum provides a platform for departments to reach out to a roster of speakers and tap into their rich repertoire of lived experience and poignant stories.
- Launch of the Maturity Model on Diversity and Inclusion self-assessment tool to support organizations in understanding their maturity in five dimensions of diversity and inclusion.
The Government of Canada has amended the Public Service Employment Act to address systemic barriers for equity-seeking groups. These amendments received Royal Assent on June 29, 2021 and reaffirm the importance of a diverse and inclusive workforce and strengthen provisions to address potential bias and barriers in staffing processes.
With these changes:
- All new or revised qualification standards must be evaluated for bias and barriers for members of equity-seeking groups.
- Permanent residents now have the same preference as Canadian Citizens when appointments are made through external advertised hiring processes.
- The design and application of assessment methods must include an evaluation of bias and barriers and reasonable efforts for mitigation (not yet in force).
- The Public Service Commission now has explicit authority to audit for bias and barriers that disadvantage members of equity-seeking groups.
- The Commission and deputy heads will have explicit authority to investigate bias and barriers for members of equity-seeking groups (not yet in force).
These amendments represent foundational work that will help departments take measures in their staffing actions to reduce barriers and encourage more inclusive recruitment practices.
Budget 2022 provided $3.7 million to the Treasury Board of Canada Secretariat to develop a mental health fund for black public service employees. Work is currently underway with the Black employee’ networks to co-develop a proposal for a broader Action Plan, including the mental health fund, for Black federal public service employees, that will also remove systemic barriers and support career advancement, training, sponsorship and educational opportunities.
This work complements other measures taken to address systemic racism and barriers in the public service. These include the amendments to the Public Service Employment Act and initiatives such as Mentorship Plus, the Mosaic Leadership Development Program, and the publication of disaggregated data for multiple sub-groups, including Black employees, which give organizations a clear picture of the makeup of their workforce.
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.
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 that the Official Languages Act reflects our evolving society.
- TBS is responsible for ensuring that Canadians receive federal services in either official language, that public servants can work in the language of their choice and that English-speaking and French-speaking Canadians can participate equally in the public service.
- The modernization of the Act, through Bill C-13 is an opportunity to strengthen access to services in both official languages across the country. I look forward to working with all parliamentarians to advance bilingualism across the country.
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 released a document in February 2021 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. Bill C-13 builds on and enhances the proposals in C-32. The proposals and changes that directly affect Treasury Board and TBS are to:
- Strengthen existing Treasury Board authorities by making certain existing permissive provisions mandatory.
- Expand Treasury Board's authorities to add a new power to monitor compliance by federal institutions with the provisions of the Act regardingthe obligation of federal institutions to take positive measures to enhance the development of official language minority communities and to foster the full recognition and use of English and French in Canadian society.
The implementation of TBS's new responsibilities related to Part VII would result in the creation of an official languages policy centre for Parts IV, V, VI and VII of the Act.
Additional and permanent resources will be required to enable the Secretariat to fully assume new responsibilities.
Phoenix-related issues (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 an 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 processes were launched to allow those eligible to make specific claims.
- In December 2021, the last claims processes were launched. Since then, all compensation elements of the damages agreements have been implemented.
If pressed on the need for future Phoenix Damages:
- While unresolved pay issues remain, we continue to monitor the situation and meet regularly with bargaining agents at Phoenix-related forums where issues such as this can be raised and addressed.
- We are aware that bargaining agents have raised this issue and we are committed to a continued dialogue to better understand their concerns.
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 applied to up to 118,000 current and 21,000 former employees.
The agreement included 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 $685M has been paid in damages relating to the Phoenix pay system, including some $125 million in 2022.
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 deducts 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 the same 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.
Phoenix-related issues (Overpayments)
Issue
Recovery of overpayment amounts resulting from Phoenix pay issues.
Response
- We recognize that the implementation of the Phoenix pay system has had an impact, directly or indirectly, on employees and former employees. All public servants deserve to be accurately paid for their work.
- Overpayment recovery is a normal part of pay administration, but we understand that given the unique situation associated with Phoenix, the repayment of overpayments may pose challenges for some employees.
- Therefore, we have taken action on many fronts to 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.
- We continue to collaborate with Bargaining Agents and departments on the overpayment recovery process.
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.
Class Action – Black Public Servants (Thompson class action)
Issue
The Government recently filed a motion to dismiss a class action lawsuit which seeks damages on behalf of current and former Black public servants, as well as any Black individuals who have applied for positions in government departments and agencies, dating back to 1970. The Government is taking continued steps to address issues related to harassment and systemic discrimination in its institutions.
Response
- The Government of Canada is working to create a diverse and inclusive public service free from racism, harassment and discrimination.
- There are existing processes to deal with complaints or grievances related to harassment and discrimination in the public service.
- The Government continues to take action to eliminate racism and discrimination from our institutions. This work includes passing legislation, creating support and development programs, and publishing disaggregated data. And we know we need to do more to improve the experiences of all public servants so that they can realize their full potential.
- For example:
- the Government of Canada will take steps to develop, through consultations using an Expert Panel, a restorative engagement process where employees who have suffered racism, harassment and discrimination can share their personal accounts in a safe, confidential space and contribute to systemic change;
- we are also reviewing systems and processes for addressing current and historical complaints; and
- we have also begun working with Black public servants to co-create a Black Mental Health Fund
Background
The Attorney General of Canada is engaged in several employment-related discrimination and harassment class actions on behalf of a number of departments and agencies.
The broadest, largest, and most high-profile of these cases is Thompson et al v. HMK.This claim seeks damages on behalf of current and former Black public servants and any Black individuals who have applied for jobs in the federal public service dating back to 1970 but were not successful due to their race.
[This information has been redacted]
The plaintiff group in the proposed Thompson class action recently announced via the media that they intend to send a letter to the United Nations’ Office of the High Commissioner for Human Rights (OHCHR) setting out various allegations with respect to ongoing systemic anti-Black harassment and discrimination in the federal public service.
The certification hearing in the Thompson case is scheduled to be heard in Federal Court in May 2023.
Growth of the public service
Issue
Since the beginning of the pandemic, the population of the federal public service has grown by over 35,000 employees.
Response
- The Government of Canada is committed to providing quality services to Canadians.
- Deputy heads of federal organizations are responsible for building an appropriate workforce to fulfill their respective mandates, and the size and composition of the public service fluctuates according to specific priorities and program requirements.
- While the size of the federal public service has grown in recent years, relative to the Canadian population it is currently at the same level as it was in 2010.
Background
The size of the Public Service fluctuates in response to government priorities and program requirements, as well as increases in program funding in federal budgets.
The federal public service comprised 0.84% of the Canadian population in 2021.
Managing hiring, talent and departures within organizations is the responsibility of deputy heads.
The mandates and activities of federal departments and agencies are as diverse as the people they serve. Deputy ministers each have the authority to determine their human resource needs at the departmental level.
Indigenous Languages in the Public Service
Indigenous Languages in the Public Service (OCHRO)
Treasury Board of Canada Secretariat and the Office of the Chief Human Resources Office is engaged in activities to support Indigenous employees in the federal public service, including by working to better understand the use of Indigenous languages by public servants in serving Canadians.
Response
- We recognize that speaking an Indigenous language is an asset to the government.
- The Government of Canada continues to work in partnership with Indigenous Peoples to support their efforts to reclaim, revitalize, maintain and strengthen Indigenous languages in Canada.
- In particular, the Treasury Board of Canada Secretariat is participating in interdepartmental working groups with Indigenous employee networks and other stakeholders to examine the use of Indigenous languages by public servants in the delivery of services to Canadians.
- As well, in line with our commitment to create an inclusive workplace for all, discussions are also underway regarding specific challenges that Indigenous employees may face in meeting official language requirements.
If pressed on bilingualism bonus and indigenous language training
- The Government of Canada currently provides all non-executive staff in bilingual positions who meet the language requirements of their position a bilingualism bonus as specified in the Bilingualism Bonus Directive. While we are looking for way to support Indigenous languages, there is no plan to extend bonuses to languages other than French and English.
Background
The Government of Canada is committed to achieving reconciliation with Indigenous peoples and building a renewed relationship based on the recognition of rights, respect, cooperation, and partnership. Reconciliation includes ensuring Indigenous public servants are represented, including in senior leadership positions, and that a deep sense of inclusion is fostered to support them.
The Department of Canadian Heritage (PCH) is mandated to work with First Nations, Inuit and the Métis Nation to implement the Indigenous Languages Act and ensure it is supported financially to preserve, promote and revitalize Indigenous languages in Canada. The Treasury Board of Canada Secretariat, Office of the Chief Human Resources Office (TBS-OCHRO) is engaged in activities to support Indigenous employees in the Federal Public Service.
The 2017 Many Voices, One Mind: a Pathway to Reconciliation report, which has been adopted as the government-wide strategy to achieve a workplace where Indigenous people seeking and living a public service career are welcomed, respected, supported, and fully included in all facets of Public Service life, asserted that “official language requirements can be a barrier to the advancement for Indigenous employees.”
TBS-OCHRO are participating in working groups to better understand and identify ways to address these challenges while creating a more inclusive workplace for Indigenous employees. The working groups aim to identify opportunities to address Indigenous representation in the workplace, as well as official languages barriers to employment and advancement of Indigenous employees, including challenges associated with learning a second official language.
The three working groups are the following:
- The Joint Committee on the Use of Indigenous Languages in the Federal Public Service is a joint employer-union committee mandated to examine the use of Indigenous languages in the public service, Indigenous language skills in the performance of employee duties, and considering the advantages that Indigenous language speakers bring to the public service. The committee is responsible to deliver a report on the results of two questionnaires sent to 25 participating organizations. The Joint Report on the use of Indigenous languages in the federal public service is expected to be released in Fall 2022.
- The Working Group on the Incentivization of Inuktut in the Federal Public Service in Nunavut is co-chaired by TBS-OCHRO and the Pilimmakasaivik Centre (CanNor), and is comprised of representatives from CanNor, TBS/OCHRO, the RCMP, Service Canada, Public Prosecution Service of Canada, and representatives from the Government of Nunavut (ad hoc), mandated to examine the use of Inuktut in Nunavut and propose options for its recognition and incentivization in the federal public service, and to support the Government of Canada’s efforts to meet obligations of article 23 of the Nunavut Agreement to increase Inuit participation in government employment to a representative level. TBS-OCHRO is leading this working group with the Pilimmaksaivik Federal Centre of Excellence for Inuit Employment in Nunavut, and Service Canada and the Public Prosecution Service of Canada are also members of this group.
- The Working Group for Amendments to the Official Language Requirements for Indigenous Employees is facilitated by the Knowledge Circle for Indigenous Inclusion, and comprised of representatives from TBS-OCHRO, the Indigenous Federal Employee Network (IFEN), the Indigenous Executive Network (IEXN) and the Public Service Commission. Its mandate is to explore policy changes and other approaches to address barriers to career advancement for Indigenous employees posed by official languages requirements. As an example, Employment and Social Development Canada is running a pilot project to assist Indigenous public servants acquire French. As part of developing a second language training framework, TBS-OCHRO is considering what type of adapted language training should be offered on a permanent basis to Indigenous learners.
Drivers include:
- The 2017 Many Voices, One Mind: a Pathway to Reconciliation report, which has been adopted as the government-wide strategy to achieve a workplace where Indigenous people seeking and living a Public Service career are welcomed, respected, supported, and fully included in all facets of Public Service life, asserted that “official language requirements can be a barrier to the advancement for Indigenous employees.”
- The Clerk’s Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service.
- During the last round of collective bargaining negotiations which concluded in October 2020, the Public Service Alliance of Canada (PSAC) tabled proposals regarding an Indigenous language allowance. While the proposals were not accepted, the parties agreed to incorporate a Memorandum of Understanding (MoU) to set up the Joint Committee on the use of Indigenous languages in the Program and Administrative Services (PA) and Education and Library Science (EB) collective agreements.
- The Indigenous Languages Act (the Act) aims to support the efforts of Indigenous Peoples to reclaim, revitalize, maintain, and strengthen Indigenous languages in Canada, and recognizes that the rights of Indigenous Peoples under Section 35 of the Constitution Act include rights related to Indigenous languages. The Act also contains provisions relating to federal institutions providing access to services in Indigenous languages by way of agreements or regulations if the institution has the capacity to do so and there is sufficient demand for access to those services in that language.
- The Government of Canada has a specific legal obligation under Article 23 increase Inuit participation in government employment in Nunavut to a representative level. A federal whole-of-government Inuit Employment Plan was developed to identify actions that would advance Inuit representation in the federal public service in Nunavut. These included removing HR barriers, the use and recognition of Inuktut in federal workplaces, and exploring the effectiveness of incentives for the use of Inuktut in the workplace.
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 Government is committed to ensuring that federal public office holders carry out their duties with integrity and impartiality.
- The Conflict of Interest Act establishes conflict of interest and post-employment rules for public office holders.
- 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. TheAct 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”.
Lobbying Act
Issue
The Lobbying Act is required to be reviewed by Parliament 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 the legislative review required by the Act
In recent years, 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 lobbying 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”.
Public Servants Disclosure Protection Act Review
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 included $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 Government of Canada continues to make meaningful improvements to the federal disclosure process to help ensure an ethical workplace culture and support the integrity of the federal public sector.
- Budget 2022 proposed $2.4 million over five years, starting this year, to launch a comprehensive review of the Public Servants Disclosure Protection Act.
- We expect to have details on this review to share with parliamentarians and public servants shortly.
- Results of the recently tabled Annual Report on the Public Servants Disclosure Protection Act may indicate a growing awareness of the disclosure process among employees. However, we know that more work is needed to strengthen the disclosure system to ensure employees have the confidence to come forward with cases of potential wrongdoing without fear of reprisal.
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.
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.
On October 20, 2022, you tabled the Annual Report on the Public Servants Disclosure Protection Act, showing that in 2021-2022, public sector organizations received more enquiries and more allegations of wrongdoing than in any of the previous five years. In that year, 194 public servants made 178 internal disclosures containing 381 allegations of wrongdoing, a significantly higher number than the average 235 of the previous five years. This includes:
- 50% serious breach of conduct
- 19% gross mismanagement in the public sector
- 8% misuse of public funds
To meet the commitment to explore possible amendments to the Public Servants Disclosure Protection Act, you have approved the review approach, including the creation of a Task Force composed of external and internal members, The Office of the Chief Human Resources Officer is developing a project plan for research and stakeholder consultations with the budget allocation of $2.4 million over five years received in Budget 2022 and starting in 2022-23.
This review will build on the work that OGGO undertook five years ago and the recommendations from the 2017 report with research on the latest developments in whistleblowing in other jurisdictions and current input from stakeholders, including views expressed during debates in the House on Bill C-290 An Act to amend the Public Servants Disclosure Protection Act, introduced by Bloc Québécois MP Jean-Denis Garon.
Second Annual Regulatory Modernization Bill
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 45 changes to 28 acts, which address issues raised by businesses and Canadians.
- These changes would reduce burdens on businesses, facilitate digital interactions with government, and make cross-border trade easier.
- Many of the proposed changes may seem small, but to Canadian industry and businesses recovering from the pandemic, they matter.
Background
In the 2018 Fall Economic Statement, the Government of Canada introduced a new initiative to ensure that Canada’s regulatory system continues to adapt to changing technologies and reflects the realities of Canadian businesses.
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.
First ARMB – The first ARMB was passed as part of the Budget Implementation Act, 2019, No 1, and modified 12 pieces of legislation that included changes to digitalize paper-based processes, enable innovation through regulatory sandboxes, and make changes in consideration of zero-emission vehicles.
Second ARMB – Amendments in S-6 were proposed by regulatory departments and agencies through a call letter from the Treasury Board of Canada Secretariat. Three initiatives are the result of business suggestions through the Targeted Regulatory Reviews.
Amendments will be administered by the following 11 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; 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.
Bill S-6 was studied by seven different Senate committees, with the Senate Standing Committee on Banking Trade and Commerce (BANC) playing the leading role. BANC coordinated the study to ensure specific components of the bill were delegated to relevant committees. Senators took a particular interest in how stakeholders were engaged and asked questions on matters raised by witnesses, which, at times, fell outside the scope of S-6.
GC Cyber Security Events
Government of Canada’s Roles and Responsibilities and Recent Events
Issue
The Government of Canada’s approach to cyber threats that 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 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 is strong and effective.
- 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 2022 provided $875.2 million over five years, beginning in 2022-23, and $238.2 million ongoing for additional measures to address the rapidly evolving cyber threat landscape. These measures include:
- $263.9 million over five years, starting in 2022-23, and $96.5 million ongoing to enhance CSE’s abilities to launch cyber operations to prevent and defend against cyber attacks;
- $180.3 million over five years, starting in 2022-23, and $40.6 million ongoing to enhance CSE’s abilities to prevent and respond to cyber attacks on critical infrastructure;
- $178.7 million over five years, starting in 2022-23, and $39.5 million ongoing to expand cyber security protection for small departments, agencies, and Crown corporations; and,
- $252.3 million over five years, starting in 2022-23, and $61.7 million ongoing for CSE to make critical government systems more resilient to cyber incidents.
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 governmentwide 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. To ensure that the GC CSEMP is up-to-date and effective, the plan is tested regularly and reviewed on an annual basis, and updated if changes are warranted. A refresh of the GC CSEMP is planned for Fall 2022 and will address lessons learned from cyber simulation exercises as well as recent cyber incidents.
Privacy and the Use of Data
Issue
The Treasury Board of Canada Secretariat’s role in relation to privacy, breaches, and the use of data in the public sector.
Response
- The Government of Canada takes the privacy of Canadians seriously and supports institutions in managing their information holdings through a suite of policies and directives.
- These policies and directives provide guidance on the management of personal information or data, on how to address privacy breaches and ensure that assessments are undertaken on the planned collection and use of personal information.
- As the government continues its transformation to a more digital government, we will continue to ensure that our approach and actions are guided by respect for the privacy of Canadians.
Background
The President of the Treasury Board is the Designated Minister for the 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.
In October 2022, the policy instruments related to privacy breaches have been updated to further strengthen government’s prevention and management of privacy breaches.
The Policy on Privacy Protection requires that federal institutions establish plans and procedures for addressing any privacy breaches in their institution. The Policy 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. TBS records and reviews the breach reports and identifies where additional guidance or training may be required. Where warranted, based on scope and sensitivity, TBS works with the institution on its response and mitigation efforts.
The Office of the Privacy Commissioner determines its response to a breach report based on a risk assessment. The approach ranges from an informal review through to a full investigation.
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.
Access to Information (ATI)
Issue
While the Government’s Access to Information Act review continues, non-legislative key actions are being taken to tackle operational issues and leverage digital service delivery to improve how Canadians experience the access to information (ATI).
Response
- Access to information should reflect today’s digital world and Canadians’ expectations for accessible, timely, and trustworthy information.
- In Budget 2021, we committed significant new funding to improving and reviewing the ATI program.
- This access to information review provides an opportunity to look at how the program is working for Canadians, by examining the legislative framework and looking at opportunities to make information more openly available, and to improve service and reduce delays.
- The government conducted consultations with Canadians, experts, stakeholders and Indigenous organizations and peoples, and remains committed to finalizing the review this year.
- The government continues to take actions to strengthen access to information, such as enhancing proactive disclosure, increasing operational capacity, and implementing digital solutions to ensure more efficient access to information.
Background
The review of the Access to Information Act was launched to offer an opportunity to have an open exchange on making ATI systems and processes more resilient. 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 examining issues specific to Indigenous access to information. 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.
In the context of the review, the public has been able to provide submissions, register for events and participate in a user-experience survey via an online platform. TBS received 34 submissions, approximately 300 survey responses and heard from 380 participants across five public events. The platform was recently updated with details on Indigenous engagement. The five National Indigenous Organizations (NIOs) were invited to participate in the review and an information session on Indigenous engagement was held in April 2022 which outlined the review process, including details on the support available for participation by interested parties.
TBS has held bilateral discussions and received written submissions from 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 recommendations to Parliament later in 2022.
While the review is ongoing, TBS officials have been continuously advancing initiatives targeting improvements to the ATI regime. These improvements, as outlined online, will tackle operational issues, and leverage digital service delivery to improve how Canadians experience the access to information process. Notable improvements include:
- the launch of the TBS ATIP Community Development Office to support ATIP communities in recruitment activities, retention and professional development
- updates to the ATIP Online Request Service allowing users to sign into a secure website, create accounts and send and retrieve their requests through this platform securely and efficiently
- putting in place a new procurement vehicle for departments and agencies to modernize the tools they use to collect and process information to meet their ATI obligations
- changing the practice of removing publicly posted completed ATI requests after two years so that they continue to remain available online
Early in the pandemic, 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 planned for return to workplaces, and to strongly encourage the inclusion of access to information and privacy as critical services moving forward.
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.
- The National Security and Intelligence Committee of Parliament (NSICOP) found that the government established a robust framework and clear governance mechanisms to support the defence of government networks against cyber attacks.
- The report also recommended that the Treasury Board of Canada Secretariat review and strengthen its policy framework to extend its cyber defence policies to all federal organizations and apply cyber defence measures equally to departments and agencies.
- The Government of Canada agrees is working to address the recommendations outlined in the report.
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, the authorities necessary to extend Treasury Board policies relevant to cyber defence to all federal organizations could be sought; 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. In May 2022, these configurations were published as part of the Directive on Service and Digital, under Appendix G: Standard on Enterprise Information Technology Service Common Configurations.
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.
Digital Credentials
Issue
The Government is working towards a national approach to digital credentials to support seamless service delivery to Canadians across the country.
Response
- The Government of Canada is committed to providing Canadians with tools for convenient and secure access to online services.
- The Government is developing a national approach to digital credentials, which would allow for digital versions of a person’s credentials to be saved to a personal device, like a phone.
- Digital credentials would be voluntary and would provide secure, convenient access to services like social benefits, filing of taxes, or accessing health records.
- The Government is in the early stages of exploring this approach. Over the coming months, we will engage with key stakeholders, including provinces, territories, and the public.
- Broad engagement will ensure that a diverse range of Canadians are engaged and given the opportunity to have their voices heard.
Background
The pandemic has exposed serious deficiencies in how we deliver services and conduct transactions across government and the economy. The pictures of Canadians standing in line for days to obtain passports or travel by air are just the latest symptoms of outdated and analogue processes. Currently, many services require Canadians to either visit a service location, mail, or scan their paper documents, which can include personal or sensitive information. The underlying challenge is that these processes are costly, slow, and are not always possible for people in Canada. This is the case for a wide range of public and private sector services, including social benefits, financial services, and other regulated services provided by small and medium enterprises, as well as transactions, such as buying a home or exporting a product.
Governments in Canada, along with other organizations, provide important credentials that are necessary to enable delivery of services and regulatory compliance, such as driver’s licenses, birth certificates, business registration documents, licenses, and permits. These credentials are often provided in paper-based formats, that cannot be securely shared, are costly to process and verify, and are easy to forge.
The Government is developing a national approach to digital credentials to accelerate the shift to digital by enabling the issuance of digital versions of credentials directly to individuals and businesses that could be held in a digital wallet on their personal device. For example, in the physical world, credentials such as your driver’s licence or health card can allow you to provide information about who you are, what you can do, or what services you can access; digital credentials would be the digital equivalent of these documents. Digital credentials would enable safer and more efficient service to individuals and organizations, including obtaining social benefits (e.g., maternity leave, Employment Insurance, Canadian Pension Plan), filing taxes, applying for a job, accessing health records, opening a bank account, or buying a home. Individuals would be in control of what information they share and with whom. There would be no centralized database as information would be held directly by Canadians, just as they hold their physical documents.
Digital technology is changing our economy and our society—the way we access services, work, and connect with each other. With more of our interactions taking place online than ever before, the need for faster, simpler, and safer digital services is growing. This is why enabling the use of digital credentials is so important. It will serve as a key foundation of digital government and the digital economy. It will act as the roads and bridges in the country’s digital infrastructure.
The Government is in the planning stages of making it quicker and easier for individuals and businesses to obtain and deliver digital services using safe and secure digital credentials. This will be done in collaboration with Canadian jurisdictions and key economic sectors. The Government will conduct consultations with the public and key stakeholders to design and test the national approach for digital credentials, including the testing of key uses. A broad approach will ensure that a diverse range of Canadians, including Indigenous communities, persons with disabilities and hard to reach Canadians are engaged, and given the opportunity to have their voices heard and their needs taken into consideration. Consultations will ensure that we are working to build a national approach to digital credentials that puts security and privacy and inclusion at the forefront.
The use of digital credentials would be options and would offer Canadians the ability to confirm their identity during service transactions. The Government is looking to leverage new technology to meet this need, while ensuring that trust is maintained, and privacy is protected. when interacting with government in Canada. Over time, digital credentials could be used by other public and private sector services.
Office of the Auditor General (OAG)
Audit of Cyber Security of Personal Information in the Cloud
Issue
In November 2022, the Auditor General of Canada is expected to table four performance reports on government services and programs in the House of Commons, one of which is focused on cyber security of personal information in the cloud.
The Treasury Board of Canada Secretariat (TBS) has developed a management response and action plan, in collaboration with Communications Security Establishment (CSE), Public Services and Procurement Canada (PSPC) and Shared Services Canada (SSC), to address the recommendations from the report.
Response
- The GC has a critical role to play in protecting the information of Canadians. Information hosted in Cloud Service Providers (CSP) environments is no exception.
- The government is still in the early stages in its adoption of the cloud, and enhancement and maturing of processes and protocols is expected.
- While there is no such thing as zero risk when it comes to cyber threats, we are working hard to ensure that that highest levels of protection are in place. In support of this ongoing effort, we welcome the recommendations of the Auditor General.
- We are committed to working with our partners at Public Services and Procurement Canada, Shared Services Canada, and the Department of National Defense to ensure that Canada’s strong cloud security control safeguards currently in place are consistently applied, documented and monitored.
- My officials have reached out to their counterparts to remind organizations of their responsibilities in ensuring the protection and security of information in the cloud.
Background
On November 15, 2022, the Auditor General of Canada is expected to table four performance audit reports on government services and programs in the House of Commons, one of which is focused on Cyber Security of Personal Information in the Cloud.
Fall 2022 OAG Audit Report on Cyber Security of Personal Information in the Cloud
In 2016, the government published a cloud first adoption strategy that directed departments to first consider cloud as the preferred option for delivering information technology services. This strategy was updated in 2018 and it highlighted the benefit of security features provided by cloud service providers and implemented a shared responsibility model that relies on a number of parties working together to protect personal information in the Cloud.
The objective of the OAG audit sought to determine whether Communications Security Establishment (CSE), Public Services and Procurement Canada (PSPC), Shared Services Canada (SSC), Treasury Board of Canada Secretariat (TBS), and selected departments have governance, guidance, and tools in place to protect, detect, and respond to cybersecurity events affecting personal information of Canadians in the Cloud. The audit also sought to assess whether the federal government has met its commitments to the environment and sustainable development in how they procured cloud services.
The audit covered the period from April 1, 2021, to March 31, 2022. For the environment and sustainable development line of enquiry, the audit covered the period from April 1, 2017, to March 31, 2022.
Summary of Findings
Overall, the audit found that:
- There were weaknesses in departments’ controls for preventing, detecting, and responding to cloud cyberattacks.
- The roles and responsibilities for ensuring cloud cybersecurity were unclear.
- TBS did not provide departments with a costing model or funding approach for cloud serves.
- PSPC and SSC did not include environmental criteria in their procurement of cloud services.
The OAG Audit Report outlines five key recommendations:
- Recommendation 1: Clarify the process and roles/responsibilities for validating and monitoring of guardrails and extend to PSPC procured solutions.
- Recommendation 2: Ensure the roles and responsibilities required for security controls are clearly documented and proactively communicated to departments.
- Recommendation 3: Ensure relevance of the GC Cyber Security Event Management Plan (GC CSEMP) and that it is reviewed and tested annually and updated if required. Ensure departments use GC CSEMP.
- Recommendation 4: Develop and provide a costing model and tools to help departments make informed decisions about moving to the cloud and determine resources and funding required.
- Recommendation 5: PSPC and SSC should include environmental criteria in their strategies and contracts for procuring cloud services to support sustainability in procurement practices and contribute to achieving Canada’s net-zero goal.
Management Action Plan
TBS is working with CSE, SSC, and PSPC to implement the recommendations outlined in the OAG Audit Report and has developed a detailed action plan to respond to the recommendations with consideration of the following:
- As of May 2021, one of the GC's security controls known as cloud guardrails was formalized as a policy requirement under the Directive on Service and Digital. These guardrails ensure that departments and agencies are implementing a preliminary baseline set of controls within their cloud-based environments. While a manual approach has been established to validate that these environments have indeed applied the cloud guardrails, SSC, in collaboration with TBS, is implementing an automated approach to validate the guardrails on a continuous basis.
- TBS is also working with SSC, CSE, and PSPC to update, publish, and communicate a Cloud Responsibility Matrix which will further assist departments in ensuring clarity in the roles and responsibilities and expectations when using cloud services.
- The GC Cyber Security Event Management Plan (GC CSEMP) provides an operational framework for the management of cyber security events (including cyber threats, vulnerabilities or security incidents) that impact or threaten to impact the GC’s ability to deliver programs and services to Canadians. A refresh of the GC CSEMP is planned for Fall 2022 and will address lessons learned from cyber simulation exercises as well as recent cyber incidents. This update will also reflect third-party suppliers including cloud service providers who are required to manage and report on cyber events in accordance with the stipulations outlined in their respective contractual agreements with the GC.
- TBS is developing a cloud costing model to help departments make informed decisions about moving to the cloud.
- In addition, PSPC and SSC are aligning the GC's approach to cloud procurement to include standard contract clauses and sustainability terms for cloud service providers.
- In keeping with the Policy on Green Procurement, SSC is integrating environmental performance considerations relating to greenhouse gas reduction targets into the competitive solicitations under the GC Cloud Framework Agreement and working with TBS and PSPC to establish the standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets.
Cloud Security Framework
Cloud computing has the potential to deliver agile and flexible information system services. Under the cloud computing paradigm, the Government of Canada (GC) relinquishes direct control over many aspects of security and privacy, and in doing so, confers a level of trust onto the cloud service provider (CSP). At the same time, GC departments and agencies using cloud services remain accountable for the confidentiality, integrity, and availability of the GC information system and related information hosted by the CSP.
As a result, GC departments and agencies must extend their information system security risk management practice to include cloud environments; however, the shared nature of operating and using a cloud environment changes who is responsible for the implementation, operation, and maintenance of security controls. GC departments and agencies therefore need to understand cloud security and ensure risks are effectively addressed as part of the shared responsibility model.
The GC has implemented an approach to managing security risks in the cloud that safeguards’ Canadians data and privacy through a series of policy instruments, in support of the Policy on Government Security and the Policy on Service and Digital. As outlined under the Direction on the Secure Use of Commercial Cloud Services: Security Policy Implementation Notice, Deputy heads have a duty and responsibility to ensure the protection of information systems under their organization’s custody and/or control. These responsibilities include safeguarding the confidentiality, integrity and availability of GC information and IT assets, and implementing appropriate measures to assure the protection of personal information when using cloud services. These instruments help to guide departments as they adopt commercial cloud services and to ensure the consistent application of cloud security controls and are adaptations of existing risk management and cloud security standards from the US National Institute of Standards and Technology (NIST) and risk management guidance from the Communications Security Establishment (CSE).
Support of Privacy
Cloud computing has similar privacy risks to those faced with traditional on-premise focused information technology (IT) service delivery models, but provides many added benefits to Canadians, including easier access to services and faster sharing of information. GC consumer organization can rely on the GC cloud risk management approach to support those privacy concerns and risks that can be mitigated by information system security. GC consumer organizations are required to conduct a privacy impact assessment (PIA), in accordance with the Directive on Privacy Impact Assessment, when they are planning to substantially modify government programs and activities involving personal information. A substantial modification includes any change to privacy practices related to activities that are automated by information systems. GC consumer organizations are therefore expected to conduct a PIA when they are planning to implement a cloud-based service that involves personal information which will help to ensure that privacy concerns and risks are appropriately mitigated.
Federal Procurement and Professional Services
Issue
The Government of Canada’s Oversight of Procurement and Outsourcing.
Response
- The Government of Canada is committed to providing high-quality services to Canadians, while ensuing the best value for taxpayers.
- To achieve this goal, contracted professional services can be 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.
- These procurements are guided by a number of controls to ensure sound stewardship of funds, and are issued in accordance with regulations, trade agreements and Treasury Board policies and procedures.
- As part of our commitment to transparency, openness and accountability, the Government of Canada publicly discloses contracts over $10,000.
Background
The House of Commons Standing Committee on Government Operations and Estimates (OGGO) is conducting a study on Outsourcing of Contracts. Officials from Public Services and Procurement Canada, Shared Services Canada and TBS appeared on October 3, 2022. Generally, the areas of inquiry focused on spending on contracts and value for money, transparency, and accountability for government outsourcing contracts (particularly IT contracts). As it specifically relates to the contracting process, questions centred on auditing, oversight, and reporting results for government contracts, as well as mitigation of employee-employer relationships.
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 from $8.35B in 2015-16 to $14.65B in 2021-22, for a total increase of $6.3B mainly related to four major types of professional services:
- Informatics Services (Computer services, information technology and telecommunications consultants);
- Health and Welfare Services (Hospital services, welfare services purchased from social and related agencies, physicians and surgeons, paramedical personnel, and dental services);
- Business Services (Accounting and audit services, banking services, collection agency fees and charges, real estate services and other business services); and
- 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 sets out 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.
Supplier Diversity
Issue
The OGGO Committee is currently undertaking a study of supplier diversity.
Response
- Diversity, inclusion and accessibility are key priorities for the Government of Canada. The Government will continue to invest in the empowerment of Black and racialized Canadians, and Indigenous Peoples.
- The Government of Canada has an opportunity to leverage its purchasing power to support broader benefits, such as protecting the environment, supporting innovation, and creating opportunities for underrepresented groups.
- This is why our newly updated Directive on the Management of Procurement sets out expectations for departments to take socio-economic and environmental benefits into consideration when conducting procurements.
- These expectations will ensure that the government takes a broad view when considering best value.
- For example, Treasury Board Secretariat is working with Indigenous Services Canada and Public Services and Procurement Canada to support a new target to have 5% of the value of federal contracts awarded to businesses managed and led by Indigenous Peoples.
- In addition, the Government, through Public Services and Procurement Canada, recently launched the Supplier Diversity Action Plan, which outlines concrete steps to increase the participation of businesses from underrepresented groups in federal procurement. It includes dedicated procurement opportunities as well as enhanced services to help underrepresented groups successfully participate in federal procurement.
Background
Supplier diversity and social procurement leverages government purchasing power towards socio-economic objectives such as enhancing market competition; job creation; economic and social benefits of procuring from small and medium enterprises (SMEs), local industry, social enterprises, and not-for-profit organizations; encouraging socially responsible business conduct; as well as advancing diversity and inclusion.
Under the Treasury Board Directive on the Management of Procurement, it is expected that procurements are managed in a manner that enables operational outcomes, demonstrates sound stewardship and best value. Best value considers not just the price, but also non-financial outcomes such as social, economic, Indigenous, and environmental returns.
The Directive on the Management of Procurement, which fully came into effect Spring 2022, also supports supplier diversity by setting expectations that departments:
- Leverage procurement to provide socio-economic and environmental benefits;
- Unbundle requirements so that instead of a large contract with a single supplier, contracts can be broken down into smaller pieces which allows for procurements to better align with the capacity of smaller and more diverse suppliers to respond;
- Before launching a procurement, engaging with industry early and conducting market analysis to gain deeper understanding of industry capacity, opportunities, and barriers. By doing so industry is engaged and the government has a better understanding of who has the capacity to deliver and concurrently allows those companies to understand what the government wants;
- Make contracts simpler and easier to understand, as well as limit the number of mandatory technical criteria. SMEs have identified the complexity of the procurement process and long complex technical requirements as barriers to participation as they increase the risk of mistakes in bidding (resulting in disqualification) and often gear the procurement to the large firms who have the capability to meet the governments demands.
In addition to the above Treasury Board Secretariat supports increasing indigenous procurement through specific initiatives:
- 5% Indigenous Procurement Target: In support of PSPC and ISC, TBS issued under its Directive on the Management of Procurement, mandatory procedures that outline the expectation for departments to procure to indigenous businesses at minimum 5% of the value of their contracts, including how to measure and report this commitment. The 5% target will be phased in over three years beginning in FY 2022-23, with full implementation expected by FY 2024-25.
- Nunavut Directive: In support of obligations under Article 24 of the Nunavut Agreement, TBS has established a Directive that aims to increase participation by Inuit firms in business opportunities to support the Nunavut Settlement Area (NSA) economy, improve Inuit firm capacity to compete for government contracts and leases in the NSA, and employ Inuit at a representative level in the NSA workforce.
In support of these measures, Treasury Board Secretariat has worked with the Canada School of Public Service to deliver a mandatory training course on Indigenous Considerations in Procurement, which provides a common understanding of procuring from Indigenous businesses within the Government of Canada. New employees are required to complete the course within 3 months of joining the functional procurement community.