President of the Treasury Board appearance before the Standing Committee on Government Operations and Estimates (OGGO) – Supplementary Estimates (B) 2024-25 – December 2024

Background

The President of the Treasury Board tabled the Supplementary Estimates (B), 2024–25, on November 18, 2024.

The Estimates are referred to various House of Commons standing committees, including to the Standing Committee on Government Operations and Estimates (OGGO), for the Treasury Board of Canada Secretariat (TBS). In the Senate, they are all referred to the Standing Senate Committee on National Finance (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 NFFN cannot amend the Estimates.

TBS officials appeared at NFFN on November 27, 2024.

Day of: scenario (OGGO)

The meeting is expected to begin at 11 am, subject to delays in the Chamber, and is expected to be composed of two panels:

• the first hour (11 am to 12 pm) consists of the President of the Treasury Board and TBS officials, on the Supplementary Estimates (B), 2024–25
• the Parliamentary Budget Officer will be appearing for the second hour (12 pm to 1 pm)

Briefing binder

A binder has been prepared in anticipation of the appearance, which the President’s office and supporting witnesses have now received. The binder provides an overview of the key government-wide items included in the Estimates as well as material on key issues such as:

• an update on the implementation of Budget 2024 items
• Canada Life
• return to office
• public service productivity
• conflict of interest
• values and ethics
• measures to strengthen management and oversight
• cyber security incidents
• the responsible use of artificial intelligence (AI)

One placemat focuses on the Supplementary Estimates (B) and one placemat highlights key issues.

Supporting officials

• Bill Matthews, Secretary of the Treasury Board
• Antoine Brunelle-Côté,Assistant Secretary, Expenditure Management Sector
• Karen Cahill, Assistant Secretary and Chief Financial Officer

Other relevant information

OGGO is currently dealing with multiple studies related to outsourcing and procurement practices including ArriveCAN, Indigenous procurement, the purchase of the official residence of the consul in New York City, and consulting contracts awarded to McKinsey & Company. With respect to the study on Indigenous procurement, TBS was not named in the motion and has not been invited to appear. TBS also appeared as part of the study of the purchase of the official residence of the consul in New York City.

On October 8, 2024, TBS officials appeared on the study of federal grants and contributions, a study initiated by the Opposition concerning the Audit of the Administration of Grants and Contribution by Environment and Climate Change Canada in response to the oversight in relation to dollars spent on green subsidies. Items of interest to TBS raised during that appearance include:

• funds spent through the environment department’s grants and contributions program which were approved by TBS
• the number of grants and contributions of over $100,000 awarded since 2016 which have been reviewed by TBS
• how it can be ensured there is impartiality and neutrality in awarding contributions and grants of over $50 million

OGGO and NFFN remain concerned with the level of transparency and accountability from the government as it relates to the procurement process and the tablings of the financial documents (such as the Public Accounts and the timing of the tabling for Estimates documents as opposed to the budget). Concern regarding the late tabling of the 2024 Public Accounts was a focal point during the Parliamentary Budget Officer’s appearance at NFFN on November 26, 2024. In the House of Commons, opposition members of Parliament have stated that should the Supplementary Estimates (B) not be passed by December 10, 2024, it would be due to government’s refusal to fully comply with the Motion for Productions of Papers related to Sustainable Development Technology Canada passed by the House on June 10, 2024.

Issue

Additional spending presented in Supplementary Estimates (B), 2024–25, both across government and specifically for TBS

Response

Throughout the year, the government seeks Parliament’s approval of proposed spending through the Estimates. These documents also provide Canadians with transparency around the planned spending of public funds.

Supplementary Estimates (B), 2024–25, present $24.8 billion in incremental spending, which includes $21.6 billion in new voted spending and $3.2 billion in forecast statutory budgetary expenditures.

These Supplementary Estimates present planned expenditures to support a variety of government priorities, such as:

• health and social programs for First Nations and Inuit
• training and equipment for the Canadian Forces
• support for Veterans and their families

Background

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), 2024–25, present a total of $24.8 billion in incremental budgetary spending, which reflects $21.6 billion to be voted and a $3.2-billion increase in forecast statutory expenditures.

If approved by Parliament, voted budgetary spending would increase by $21.6 billion in comparison to the Main Estimates and Supplementary Estimates (A), to a total of $224.4 billion. Much of the new voted spending is for:

• programs for First Nations and Inuit, including $955.2 million for First Nations child and family services, $725.0 million for services and supports under Jordanʼs Principle, and $562.5 million for non-insured health benefits
• compensation and benefits, primarily $970.8 million to compensate departments and agencies for negotiated salary adjustments and $643.6 million for public service insurance plans and programs
• military procurement projects, such as $659.1 million for the Future Aircrew Training Program, $561.0 million for multi-mission aircraft, and $315.3 million for joint support ships
• support for Veterans and their families, with $942.5 million for demand-driven programs and services
• disaster response and recovery, primarily $800.0 million to reimburse provinces and territories through Disaster Financial Assistance Arrangements

These Estimates also show, for information purposes, changes in planned statutory expenditures. Statutory budgetary expenditures are forecast to rise $3.2 billion to a total of $262.3 billion. The increase is largely related to the Canada Carbon Rebate for small businesses ($2.6 billion) and for individuals ($307.0 million).

Statutory non-budgetary expenditures are also forecast to rise, reflecting:

• financial assistance to Ukraine
• investment in the World Bank’s capacity to help developing countries and advance the United Nations’ Sustainable Development Goals

Issue

Supplementary Estimates (B) includes $6.4 billion in planned spending announced in Budget 2024, bringing the total to $8 billion.

Response

Supplementary Estimates include approximately $6.4 billion for Budget 2024 initiatives.

This includes investments for:

• Indigenous Services Canada to cover health benefits, wellness and treatment, education, and community infrastructure
• National Defence to support military aid to Ukraine and to keep Canada’s Halifax-class frigates in service
• funding to create interim housing, assist the homeless and provide international humanitarian assistance

Other funding announced in Budget 2024 will be presented in future Estimates.

Background

New spending presented in Budget 2024 will follow different paths to approval:

• voted appropriations presented in Estimates and approved through appropriation acts
• statutory expenditures approved through other legislation, such as Budget Implementation Act, 2024, No. 1; statutory expenditures are presented in Estimates for information only
• tax changes approved through changes to legislation or regulation

Issue

Budget 2024 announced new funding for TBS programs.

Response

As President of the Treasury Board, I am focused on ensuring that government is well managed and effective so that Canadians are well served.

To achieve these priorities, Budget 2024 announced new funding to:

• implement new provisions under the Official Languages Act
• strengthen the government’s cyber security capabilities
• improve the ATIP Online Request platform to increase transparency for Canadians
• make pay and HR activities simpler and more efficient
• continue work under the Federal Contaminated Sites Action Plan
• support accessibility within the public service

Budget 2024 also underscored the government’s commitment to strengthen accountability, procurement and conflict of interest regimes.

Background

Issue

The Standing Committee on Government Operations and Estimates (OGGO) undertook a review of the Changeover of the Public Service Health Care Plan from Sun Life to Canada Life and presented its final report in the House of Commons on June 3, 2024. The Government of Canada provided its response to the committee on October 1, 2024.

On November 1, 2024, the Pensioners’ Dental Services Plan transitioned from Sun Life to Canada Life. On January 1, 2025, changes to the Public Service Dental Care Plan (PSDCP) benefits will come into effect.

Response

Parliamentary context

On June 3, 2024, OGGO tabled its 20th report, entitled the Changeover of the Public Service Health Care Plan from Sun Life to Canada Life. A government response was tabled in the House of Commons on October 1, 2024.

This study was initiated by the Bloc Québécois member of the committee, and three meetings were held. Opposition parties were particularly critical regarding the perceived lack of transparency and consultation concerning the transition and implementation of the changeover from Sun Life to Canada Life.

Background

Per the Financial Administration Act, the Treasury Board has authority for all aspects of the public service benefit plans. The President of the Treasury Board, as employer of the public service, is responsible for the overall administration of the public service benefit plans.

Public Services and Procurement Canada is the contract authority, responsible for awarding and managing the contract. Questions relating to the procurement process, including contract performance and remedies available to be pursued, should be directed to Public Services and Procurement Canada.

TBS is the project authority responsible for all matters concerning the technical content of the work. This includes assigning tasks to the contractor, receiving and reviewing reports, accepting the work, requiring corrections or replacements at the contractor’s expense, authorizing payments and the design of the plan.

The PSDCP is a mandatory employer-paid dental care plan that covers dental services and supplies not covered under a provincial or territorial health or dental plan. The PSDCP is negotiated with bargaining agents.

Issue

On September 9, 2024, TBS implemented the updated hybrid work model, requiring eligible employees to work onsite at least three days per week instead of two to three; executives to be onsite a minimum of four days per week to ensure leadership and effective support for their teams.

Response

The updated hybrid work model enhances our ability to perform as organizations by building stronger teams and cultures, contributes to better service delivery for Canadians, and reinforces the public’s confidence in the public service.

As has always been the case, including before hybrid work, the employer has the exclusive management right to designate the location of work and to require employees to report to their designated worksite.

Managers are responsible for managing any cases of non-compliance with the Direction on Prescribed Presence in the Workplace. They are expected to monitor and identify where employees are not compliant and address these situations on a case-by-case basis, working closely with labour relations.

Departments will continue to carefully monitor implementation, with a focus on duty to accommodate, technology, and occupational health and safety. Employee engagement is critical to our approach, and we will continue to seek employees’ feedback.

Parliamentary context

Since the announcement of the updates to the hybrid work model in the public service in May 2024, the issue of hybrid work for public servants has seen an increase in interest among parliamentarians.

More specifically, the President of the Treasury Board and TBS officials were asked multiple questions on the topic during their appearances on the Main Estimates 2024–25 at the Standing Committee on Government Operations and Estimates (OGGO). The issue has alsobeen brought up in the House of Commons during Question Period.

Opposition parties have expressed concern in committee regarding labour unions not being consulted, and the potential inconsistencies in the hybrid work initiative as it relates to government contractors still working from home.

The Canadian Association of Professional Employees (CAPE), the Professional Institute of the Public Service of Canada (PIPSC) and the Public Service Alliance of Canada (PSAC) have also each provided a letter to the Chair of OGGO, requesting a study to investigate the decision behind the three-day return-to-office mandate.

Background

In June 2022, following the peak of the pandemic, the Clerk of the Privy Council outlined her expectations for a hybrid workforce and encouraged departments to experiment with models. Following this, departments and agencies tested different options to learn how a hybrid work model could best support our core purpose: serving Canadians.

Following the Clerk’s message, the Chief Human Resources Officer began collecting information from organizations on their hybrid testing. In total, three questionnaires were circulated: in fall 2022, spring 2023 and fall 2023. Results from each questionnaire were shared with the Public Service Management Advisory Committee and the National Joint Council, a governance body for employer-union engagement.

The information collected from the initial questionnaire showed that most public servants were operating under a wide variety of hybrid models and that there was a need for consistency in how hybrid work is applied.

In response, and further to engagement with deputy heads, the federal public service announced on December 15, 2022, the Direction on Prescribed Presence in the Workplace,requiring all core public administration employees eligible for a hybrid work arrangement to work onsite at least two to three days each week, or 40% to 60% of their regular schedule, as of March 31, 2023.

At that time, the direction included both exceptions and extensions to departments, granting them the ability to continue to deliver critical services, such as call centre functions, during the transition to the common hybrid work model.

Further to analysis from the subsequent spring and fall 2023 questionnaires, additional revisions were announced to the direction on May 1, 2024, requiring a minimum three-day onsite presence beginning September 9, 2024, with executives expected to attend work onsite four days per week. Additionally, federal organizations that had previously received time-limited extensions and information technology (IT) employees who were granted an exemption are required to begin implementing the minimum onsite work requirement as of September 2024, with full implementation by September 2025.

As part of negotiations with public service bargaining agents, the employer and certain bargaining agents signed letters of agreement on telework that sit outside of collective agreements.

Under the terms of the letters, joint departmental review panels were to be created within government organizations to address individual grievances where an employee is not satisfied with a decision made related to telework and hybrid work and chooses to refer the grievance to the joint departmental review panel. Each department is responsible for creating the panels and developing terms of reference with bargaining agents, with guidance provided by TBS.

Letters signed by the PSAC, the Canadian Association of Professional Employees (CAPE), and the Professional Institute of the Public Service of Canada (PIPSC) include the provision of a Joint Consultation Committee to support the review of the Directive on Telework. While CAPE has withdrawn from their Joint Consultation Committee in response to the updated direction, PIPSC and PSAC are on track to complete the consultation process this fall (2024).

Issue

On August 27, 2024, the Honourable Anita Anand announced a working group with the goal of developing recommendations on how to enhance productivity in the public sector and inform the government’s economic plan.

On October 4, the President announced details on the working group, including the terms of reference for the group’s work.

Response

The Government of Canada recognizes the significant role the public sector plays in the country’s economy and its impact on Canada’s overall productivity.

As part of a whole-of-government effort, the President of the Treasury Board and Minister of Transport are establishing a working group to examine productivity in the public sector. The working group will examine:

• service delivery to Canadians
• how technology can help address barriers for individuals and businesses
• the public sector’s capacity for innovation and flexibility

Membership of the working group is currently being finalized and will consist of Canadians with proven insight into government, business, labour and academia.

The working group will provide advice and recommendations to the President of the Treasury Board, through an interim and final report.

The interim report will be delivered to the President by December 20, 2024, with a final report delivered on or before February 28, 2025.

The reports will provide observations of the current status of productivity in the federal public service, the factors affecting public service productivity, and priorities for action.

Should the working group identify additional areas of study during its review, the government may decide to extend or renew the working group’s mandate.

Parliamentary context

The issue of productivity in the public service has not been debated in the House of Commons or the Senate since the announcement of a Working Group on Public Service Productivity in August 2024.

Background

A fundamental responsibility of government is to ensure that spending on programs and services is focused on priorities and delivers value to Canadians. Public service productivity is one way to measure how well we are accomplishing these goals.

The public sector in Canada accounts for nearly 40% of Canada’s GDP, a significant part of Canada’s workforce and economy, so it is important to consider the role that the public sector can play in improving Canada’s productivity.

While private sector productivity is often measured by inputs, outputs, and sales of goods and services, those same measures do not apply to the varied business lines in the public sector. With that in mind, the President of the Treasury Board and Minister of Transport established a working group to examine how the public service can continue to be innovative, flexible and efficient in delivering services for Canadians.

The Terms of Reference, published October 4, 2024, outline the mandate of the working group, which is to examine productivity in Canada’s federal public service and to provide advice and recommendations that will inform the government’s future economic planning and could also be applicable to other levels of government and public institutions.

The working group will comprise members with proven insight into government, business, labour and academia. Membership is currently under review and will be announced in the coming weeks.

The government’s work to ensure value for money continues. Along with recent efforts to refocus $15.4 billion in spending toward Canadians’ highest priorities, the findings of this working group will help ensure the government continues to contribute to Canadians’ prosperity into the future.

Issue

The government is continuing to take 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.

To advance the work on an Action Plan for Black Public Servants, the government provided close to $50 million through Budget 2022 and Budget 2023.

On February 21, 2024, I announced three initiatives that are part of this Action Plan:

1. Black-centric enhancements to Health Canada’s Employee Assistance Program
2. a new executive leadership program for Black executives through Canada School of Public Service
3. individualized assessment, counselling and coaching services to Black public servants through the Public Service Commission of Canada

Budget 2023 provided $6.9 million over two years, starting in 2023–24, to TBS to advance a restorative engagement program. This program will help to empower employees who have suffered harassment and discrimination and will drive culture change in the public service. Options for the design of the program are currently being developed.

If pressed (Thompson class actions):

• When it comes to questions of law, complaints related to workplace discrimination, including those raised in the class action, are best addressed within the existing statutory recourse regimes established by Parliament, notably the grievance mechanisms within the public service under the Federal Public Sector Labour Relations Act.
• The grievance process cannot be circumvented by separate action because section 236 of the Act prevents courts from hearing disputes covered by the Act’s grievance process, meaning employees must use the established process instead of taking separate legal action.

If pressed (Study on the Black Executive Community in the Federal Public Service):

• We know that racism has plagued many workplaces, including the public service. To date, we have taken action on several fronts to tackle racism, but we have much more to do.
• Through the Clerk’s Call to Action on Anti-Racism, Equity and Inclusion in the Public Service, as well as the Action Plan for Black Public Servants which is being implemented by an internal task force at TBS, we are taking steps to address all forms of racism, bias, barriers and discrimination which have taken root over generations.
• While we continue this important work, there is an urgent need to directly address the issues highlighted in Dr. Rachel Zellars’Study on the Black Executive Community in the Federal Public Service. The Office of the Chief Human Resources Officer (OCHRO) is reviewing the report, and with input and assistance from the Black Executives Network, has developed a preliminary response plan of actions for deputy heads and for OCHRO to be implemented as a priority.
• I want to acknowledge the courageous employees who have come forward to share their experiences, as painful as they may be. The views and voices of Black public servants will continue to shape current and future initiatives.

Parliamentary context

On October 19, 2023, the Auditor General of Canada tabled a report, Inclusion in the Workplace for Racialized Employees: Independent Auditor’s Report, with recommendations implicating TBS. However, the report has yet to be studied in committee.

On December 11, 2023, the Standing Senate Committee on Human Rights (RIDR) tabled a report follows its study, Anti-Black Racism, Sexism and Systemic Discrimination in the Canadian Human Rights Commission. TBS was implicated in recommendations highlighted in the report, especially as they pertain to anti-racism for federal public service employees. TBS officials appeared in the context of this study on May 8, 2023.

A government response to RIDR’s report, prepared by the Department of Justice Canada, was tabled on May 10, 2024.

Background

Issue

We are negotiating collective agreements across the public service that are fair to employees and reasonable for taxpayers.

Response

The Government of Canada is fully committed to reaching collective agreements that are fair to employees and reasonable for taxpayers.

We have now reached agreements with a total of 21 bargaining units, covering 95% of the public service. For separate agencies such as the Canada Revenue Agency, agreements have been reached with 27 bargaining units, covering almost 99% of the separate agency population.

We are continuing with negotiations for the remaining active bargaining tables and are committed to reaching similar positive outcomes.

We anticipate that the next round of collective bargaining will begin in January 2025 as the agreements that were negotiated in the 2021 round of bargaining begin to expire.

Parliamentary context

In June 2024, there was focus on the Canada Border Services Agency’s Border Services (FB) group collective agreement when employees considered strike action for fair negotiations.

In spring 2024, parliamentarians raised particular concerns around the issue of collective bargaining related to the Canadian National Railway Company.

Background

Issue

The parliamentary focus on ArriveCAN has led to interest in conflict of interest declarations made by public servants in relation to contractual relationships with the Government of Canada.

On May 20, TBS announced actions it was taking to strengthen contracting practices, including a review of the Directive on Conflict of Interest.

Response

The Directive on Conflict of Interest provides guidance for the actions and behaviours of public service employees.

The directive establishes measures to prevent, mitigate and resolve situations in which public servants could be in real, apparent or potential conflict of interest or conflict of duties.

Organizations may have additional requirements relating to conflict of interest and conflict of duties that address risks specific to their operational realities.

A review of the Directive on Conflict of Interest has been done to clarify requirements regarding employees who engage in outside employment, particularly when contracting with the government. The revised directive will be issued by the end of January 2025. Additionally, guidance provided to deputy heads on enforcing and implementing the Directive on Conflict of Interest is being reviewed, and revised guidance will be issued in this fiscal year.

Parliamentary context

Focus on conflicts of interest and values and ethics stemmed from the study on ArriveCAN

Both the Standing Committee on Government Operations and Estimates (OGGO) and the Standing Committee on Public Accounts conducted a deep dive into ArriveCAN, and TBS officials appeared in front of committees on various occasions dealing with this topic.

Various production motions for documents relating to ArriveCAN, COVID Alert, Indigenous contracting, Sustainable Development Technology Canada, and McKinsey & Company have been issued in the House and committees.

Background

The Directive on Conflict of Interest requires employees to seek the approval of their deputy head before entering into a contractual arrangement with the Government of Canada for which they receive any direct or indirect benefit or income. Deputy heads are responsible for ensuring that conflicts of interest in their organizations are identified and resolved appropriately and in favour of the public interest. As such, employees may, with the approval of their deputy head, contract or subcontract with the government.

The approval of their deputy head is based on whether the contract presents a real, potential or apparent conflict of interest and whether appropriate and effective mitigation measures can be implemented in agreement with the individual. Complying with the requirements of the directive and of the Values and Ethics Code for the Public Sector is a condition of employment. Employees who violate the directive or the Values and Ethics Code for the Public Sector are subject to disciplinary measures, up to and including termination.

Further to the March 20 announcement, Taking action against fraud and strengthening financial and procurement management, OCHRO is reviewing the Directive on Conflict of Interest “to ensure that the requirements are clear and effective, particularly as they relate to employees who engage in outside employment, including contracts with the Government of Canada.” Additionally, we are reviewing guidance provided to deputy heads who are responsible for enforcing and implementing the guide to support the effective exercise of their authorities and responsibilities under this directive.

The review of the directive is complete. The revised directive should be issued in January.

Issue

Bill C‑13 received royal assent on June 20, 2023. The modernized Official Languages Act introduces several changes that affect the Treasury Board, its President and its Secretariat.

Response

The government is committed to promoting official languages and ensuring that the Official Languages Act reflects our changing society.

The Treasury Board has longstanding responsibilities under the Official Languages Act, including:

• communications with and services to the public
• language of work in federal institutions
• participation of English-speaking and French-speaking Canadians in the federal public service

The modernized Act expanded the Treasury Board’s role and responsibilities to monitor, audit and evaluate the compliance of federal institutions with their obligations.

If pressed on the implementation of the modernized Act:

• As part of our mandate to provide general direction to federal institutions in taking positive measures to implement the commitments set out in Part VII of the Act, we are developing regulations for the application of Part VII, in consultation with Canadian Heritage. Currently, these regulations are at the stage of statutory consultations with official language minority communities. The draft regulations will then be completed and tabled in Parliament in early 2025. These regulations will support the vitality of official language minority communities, foster the full recognition and use of both English and French in Canadian society, and promote the inclusion of language clauses in federal-provincial/territorial agreements.
• To support institutions in establishing a culture of bilingualism in the workplace, TBS is working on creating tools designed to respond to the linguistic needs and enhance the use of both official languages.

Parliamentary context

Bill C‑13, An Act for the Substantive Equality of Canada’s Official Languages, received royal assent on June 20, 2023. The bill received support from every party in the House of Commons and marked the first major review of the Act since 1988.

The President of the Treasury Board tabled the Annual Report on Official Languages 2022–23 in Parliament on June 17, 2024.

There have been four parliamentary committee appearances related to official languages in the last year. Of note, TBS officials appeared at the Standing Committee on Official Languages (LANG) on March 21, 2024, in the context of their study, Language Obligations Related to the Process of Staffing or Making Appointments to Key Positions. LANG is expected to table its report soon, with multiple recommendations possibly implicating TBS.

Background

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

• ensure respect for English and French, equality of status for both languages, 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 in Canadian society

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. On June 16, 2022, Private Member’s Bill C‑290, An Act to amend the Public Servants Disclosure Protection Act, was introduced. The bill passed third reading on January 31, 2024, and was referred to the Senate.

On November 29, 2022, the President announced the task force to review the Public Servants Disclosure Protection Act. The task force’s report is expected to be released before the end of the year.

Response

The government is dedicated to promoting a positive, respectful and safe public sector culture that is grounded in values and ethics, where public servants feel safe to disclose wrongdoing.

The Public Servants Disclosure Protection Act helps to support an ethical workplace culture and the integrity of the federal public sector. It provides public servants with important protections from reprisal if they come forward in good faith to disclose serious wrongdoing in the workplace.

In November 2022, a task force was appointed to explore revisions to the Public Servants Disclosure Protection Act, consider opportunities to enhance the federal disclosure process, and strengthen protections and supports for public servants who come forward to disclose wrongdoing.

The review began in January 2023, and I look forward to receiving the task force’s report by the end of 2024, with their recommendations for improvements to the Act.

Parliamentary context

Stronger whistleblower protections are currently being proposed through Private Member’s Bill C‑290, An Act to amend the Public Servants Disclosure Protection Act.

The bill passed in the House of Commons unanimously on January 31, 2024, and the bill is currently being debated in the Senate at second reading.

Recently, in the context of the Senate Standing Committee on National Finance’s (NFFN’s) study of the Main Estimates 2024–25, the Public Sector Integrity Commissioner, as well as senators, expressed concerns that without additional funding, the Commissioner’s office is at risk of not being able to fulfill its mandate as it relates to whistleblower protection.

Opposition parliamentarians often cite whistleblower concerns when questioning government responses and transparency around situations relating to conflict of interest and values and ethics

Background

In June 2017, the Standing Committee on Government Operations and Estimates (OGGO) tabled its report on its 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, OGGO 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.

Your predecessor announced the establishment of the Public Servants Disclosure Protection Act Review Task Force in November 2022. It is composed of people who bring significant experience and diverse expertise within the field, including academics, individuals with expertise in other Canadian jurisdictions, those with experience as Senior Officers for Internal Disclosure, and bargaining agent representatives. The Task Force began its work in January 2023, with the review expected to conclude with a report and recommendations by end of 2024.

Budget 2022 provided $2.4 million over five years to launch a review of the Public Servants Disclosure Protection Act.

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
• current input from stakeholders, including a survey accessible to the public sector and members of the general public
• views expressed during parliamentary consideration of Bill C‑290 An Act to amend the Public Servants Disclosure Protection Act, introduced by Bloc Québécois MP Jean-Denis Garon

In June 2022, Private Member’s Bill C‑290, An Act to Amend the Public Servants Disclosure Protection Act, was introduced in Parliament to expand the application of the Act to additional categories of individuals, allowing that a protected disclosure be made to any officer within the portion of the public sector in which the public servant is employed, the extension of the period during which a reprisal complaint may be filed, and to add a duty to provide support to public servants. Bill C‑290 passed second reading in the House of Commons, was referred to OGGO for clause-by-clause consideration, and was reported back to the House with 30 amendments on September 18. The bill passed third reading on January 31, 2024, and was referred to the Senate, where it was read for the first time on February 6, 2024. Second reading is now underway, with debates having taken place on September 17, 2024, and October 31, 2024.

On October 28, 2024, the annual report on the Public Servants Disclosure Protection Act for 2023–24 was tabled showing that 250 public servants made 266 internal disclosures concerning 425 allegations of wrongdoing. This compares to 152 public servants who made 246 internal disclosures concerning 356 allegations of wrongdoing in 2022–23.

Issue

Status of the Phoenix damages agreements reached with unions in 2019 and 2020 and the new HR and pay system.

Response

All public service employees deserve to be paid accurately and on time. Pay issues that employees continue to face are not acceptable, and it is our responsibility to fix them.

The Government of Canada remains committed to resolving outstanding pay issues for public servants while moving toward modernizing processes and systems to improve the overall HR and pay experience for employees.

That is why we are supporting improvements to our systems by reducing the number of HR systems in the core public administration and facilitating automation. We will continue working with all partners, including bargaining agents, to simplify HR and pay processes.

TBS is focused on the simplification of complex pay rules to facilitate automation and reduce the number of HR systems in the government. Through policy review and collaboration with bargaining agents, this initiative aims to reduce the number of rules that must be understood by employees, applied by delegated managers and pay practitioners, and configured and implemented in the 30 HR systems across the public service.

If pressed on the Bouchard court case:

• We cannot comment further as this issue remains the subject of litigation.

If pressed on the need for future Phoenix damages compensation:

• We are aware that bargaining agents have requested additional compensation for Phoenix damages.
• We are committed to a continued dialogue with bargaining agents on this issue.

Parliamentary context

Parliamentarians have been seized with this issue since the Phoenix implementation, as it affected many public servants.

Phoenix-related issues are often brought up when discussing topics that include public servants, IT, contracting, and cost of living increases.

Background

To date, approximately $711 million has been paid in damages relating to the Phoenix pay system, including some $26 million in 2023.

$16.5 million from the 2024–25 Main Estimates is allocated to reimburse departments that pay claims for expenses and financial losses due to Phoenix issues. This is an estimate, and actual amounts may be less.

Phoenix damages entitlements for employees (current and former) are provided by the following damage agreements with the bargaining agents.

Issue

What are the priorities and mandate commitments for the President of the Treasury Board and how are they being advanced?

Response

As President of the Treasury Board, I am focused on ensuring that government is well managed and effective so that Canadians are well served.

Part of this involves:

• overseeing the prudent use of public funds
• taking action to strengthen and uphold the highest standards of procurement
• maintaining effective cyber security protections
• improving public service productivity
• supporting openness and transparency across government

I am also committed to advancing diversity and inclusion and addressing workplace harassment, discrimination and violence within the public service, with initiatives such as the action plan to support Black public servants.

Parliamentary context

Parliamentarians, including Treasury Board critics, often refer to mandate letters when they are seized with an issue that relates to a specific minister’s mandate commitment that is not being met.

Background

The Prime Minister’s letter of December 16, 2021, addressed to the previous President of the Treasury Board, contains over 30 commitments for which the President is responsible in whole or in part, spanning areas such as:

• equity, diversity, accessibility and inclusion in the federal public service
• digital government
• greening government
• government procurement
• strengthening and modernizing the public service for the 21st century
• 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”
• “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 [Gender-Based Analysis 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 2024 included support to advance commitments in key areas of the Treasury Board’s responsibility, such as:

• $135 million in 2024–25 for Public Services and Procurement Canada and TBS to improve public service HR and pay systems, including continuing work on a potential next generation pay solution
• $84 million over five years for TBS and Library and Archives Canada to maintain the access to information and privacy regime
• $26 million over five years, starting in 2024–25, to Canadian Heritage, TBS and the Office of the Commissioner of Official Languages to support the implementation of An Act for the Substantive Equality of Canada’s Official Languages
• $17 million over five years, less $1 million sourced from existing resources, for TBS and the Public Service Commission of Canada to support the Office of Public Service Accessibility, the Federal Internship Program for Canadians with Disabilities, and improve recruitment and assessment processes for persons with disabilities
• $11.1 million over five years to TBS to implement a whole-of-government cyber security strategy

Budget 2024 also announced other priorities, including:

• a proposal to amend the Red Tape Reduction Act to provide ministers with authority to enable regulatory sandboxes, which would include authority to grant temporary exemptions to legislation or regulations to allow for testing of products, services, processes or new regulatory approaches
• language committing the government to “Addressing internal trade barriers, including through regulatory harmonization, in collaboration with provinces and territories, to cut the red tape holding back trade between provinces and territories, to ensure Canada can reach its full economic potential”
• as previously disclosed in TBS’s 2024–25 Departmental Plan, the government has updated the value of the Low-carbon Fuel Procurement Program to $134.9 million over eight years, starting in 2024–25

To date, actions taken in 2024–25 related to the President of the Treasury Board’s mandate commitments and priorities include:

• On May 22, 2024, the Government of Canada’s first Enterprise Cyber Security Strategy was released. The strategy aims to help safeguard government systems, protect Canadians’ information, and strengthen the resilience of digital government to ensure the continued delivery of secure and reliable digital services.
• On May 29, 2024, the Government of Canada Trust and Transparency Strategy was published. Two key pillars will support the achievement of the objectives of the Trust and Transparency Strategy: the Access to Information Modernization Action Plan and the National Action Plan on Open Government.
  • As part of access to information (ATI) modernization, the Policy Guidance on the Disclosure of Historical Records Under the Access to Information Act, published the same day, is intended to enable a more efficient and consistent approach to the review and potential disclosure of historical records. The new guidance identifies recommended non-statutory time thresholds to help federal institutions apply discretionary exemptions under the Access to Information Act.
  • The National Action Plan on Open Government sets out commitments to make the Government of Canada more transparent, accountable and participatory. The Government of Canada has launched engagement opportunities to develop the 2025–29 National Action Plan on Open Government.
• On May 29, 2024, the government announced new mandatory procedures for procurement as part of the Directive on the Management of Procurement. The procedures provide an additional check and balance for public service managers to ensure that they are clear about their responsibilities and accountabilities when undertaking professional services procurement activities related to oversight, conflict of interest and integrity provisions in the directive.
• On September 5, 2024, the President of the Treasury Board and Shalanda Young, Director of the U.S. Office of Management and Budget, issued a statement emphasizing the importance of regulatory cooperation between Canada and the United States.
  • They discussed progress on the Canada–United States Regulatory Cooperation Council initiatives, which aim to facilitate cross-border trade and reduce costs for consumers. Key areas of collaboration include reducing red tape in the agriculture sector and advancing innovation in transportation and auto manufacturing.
• On September 16, 2024, the President of the Treasury Board launched public consultations on Canada’s first AI strategy for the federal public service. Public consultations will run from September 16 to October 31, 2024, with the strategy expected to be published in spring 2025.
• On August 27, 2024, the President of the Treasury Board announced the intention to strike a working group to examine productivity in the public service. The Working Group’s Terms of Reference were published in October 2024.
• On September 26, 2024, the President of the Treasury Board and the Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs met with federal, provincial and territorial ministers of the Committee on Internal Trade to continue working with other levels of governments to decrease the costs of goods and services for Canadians and allow the freer movement of labour in the country.
• On October 2, 2024, the President of the Treasury Board announced the launch of a new stream of the Executive Leadership Development Program, dedicated to Black employees. Over the next two years, up to 100 Black executives at the EX-01, EX-02 or EX-03 levels will participate in the program, which includes mentorship, sponsorship and career progression support.
  • This forms part of the government’s Action Plan for Black Public Servants, announced in February 2024. Other initiatives include funding for Black-centric enhancements to the Employee Assistance Program and increased activities by the Public Service Commission of Canada for individualized assessment, counselling and coaching services for Black public servants.

Other recent actions related to the President of the Treasury Board’s mandate commitments include:

• Effective April 1, 2023, the Directive on the Management of Procurement was amended to reinforce expectations that federal procurement activities are conducted with ethically, socially and environmentally responsible companies and require that all suppliers and their subcontractors adhere to the Code of Conduct for Procurement. In addition, departments will be required to implement measures for identifying, mitigating and disclosing risks of human trafficking, forced or child labour, and other unethical business practices in their supply chains and including these considerations in their procurements.
• Effective July 11, 2023, the Directive on the Management of Materiel was amended to include new and modified requirements in support of the federal Greening Government Strategy and the commitment to electrify the entire federal fleet of light-duty vehicles by 2030.
  • The updated 2024 strategy aims to reduce emissions from federal government real property and conventional fleet operations by 40% by 2025 and achieve net zero by 2050.
• In October 2023, the government announced a panel of experts who will make recommendations on the structure and design of a new restorative engagement program for public servants. The goal of the program is to address past harms and promote healing for employees who have reported experiencing harassment, discrimination and violence in the workplace.
  • In January 2024, the panel submitted its report. The Government of Canada is now assessing these recommendations and will conduct further meaningful consultation with key partners and communities of practice to ensure the program design meets the needs of public servants.
• On March 20, 2024, the government announced a series of actions to enhance its oversight of departmental practices and processes and support effective management across government, including:
  • a new risk and compliance process which will assess government-wide trends, risks and individual departmental performance in key management areas and take immediate corrective actions where necessary; using this process, TBS will more actively oversee government-wide management practices and outcomes
  • a horizontal audit that the Comptroller General will undertake beginning in April 2024 across a number of large departments to assess governance, decision-making and controls associated with professional services contracts, including IT; audit results, expected by December 2024, will inform any additional measures that are necessary
  • an update to the Manager’s Guide: Key Considerations When Procuring Professional Services; these updates include additional guidance to help managers in making decisions that demonstrate a prudent use of tax dollars
  • measures to strengthen the accountability of managers when procuring professional services by embedding certain elements of the guidewithin mandatory procedures that fall under the Directive on the Management of Procurement
  • publishing additional information about contracts on the Open Data portal and ensure that it is presented clearly, accurately and in a more user-friendly way
  • a commitment for the Office of the Chief Human Resources Officer to review the Directive on Conflict of Interest to ensure that the requirements are clear and effective, particularly as they relate to employees who engage in outside employment, including contracts with the Government of Canada

Issue

The Refocusing Government Spending initiative, launched in Budget 2023, with an extension and expansion in the 2023 Fall Economic Statement and Budget 2024, to deliver a refocusing of government spending to continue to serve Canadians most effectively

Response

Budget 2024 announced the second phase of the refocusing government spending initiative by directing organizations to identify operating cost savings totalling $4.2 billion from 2025–26 to 2028–29 and $1.3 billion ongoing.

Savings will only be drawn from operating budgets and through natural attrition, to the greatest extent possible.

This initiative will be implemented without impacting programs and services that benefit Canadians and in a way that continues to support regional representation and a diverse public service workforce.

Approved savings amounts will be presented in the 2025–26 Main Estimates and departmental plans.

Combined with the $15.4 billion in refocused spending outlined in Budget 2023, implementation of these measures would save $4.8 billion per year in 2026–27 and ongoing and return the public service closer to its pre-pandemic growth track.

Parliamentary context

Parliamentarians have been interested in how government funds can be reallocated. Members from all parties have asked questions regarding the Refocusing Government Spending initiative in recent parliamentary appearances on the Estimates, including at the last appearance of the President of the Treasury Board at the Standing Committee on Government Operates and Estimates (OGGO) for Supplementary Estimates (A) 2024–25 on June 19, 2024.

Background

Budget 2023 proposed two measures to refocus government spending:

1. reduce spending on professional services, travel and operations
2. phase in a roughly 3% reduction of eligible spending by departments and agencies by 2026–27; comparable reductions will be applied to Crown corporations

The 2023 Fall Economic Statement announced plans to extend and expand the Budget 2023 measures, with departments and agencies generating additional savings of $345.6 million in 2025–26 and $691 million ongoing. Combined with the $15.4 billion in refocused spending outlined in Budget 2023, implementation of these measures would save $4.8 billion per year in 2026–27 and ongoing and return the public service closer to its pre-pandemic growth track.

Information on the first phase of the refocusing results has been reported through the 2024–25 Estimates documents:

• $500 million for 2023–24 (shown in Supplementary Estimates (B), 2023–24) based on travel and professional services spending
• $10.5 billion over three fiscal years (2024–25 to 2026–27) shown in Main Estimates 2024–25

Additional information was included in Departmental Plans, and more will be included in future Departmental Performance Reports.

Budget 2024 announced the implementation of Phase 2 of the Refocusing Government Spending initiative.

Phase 2 of the Refocusing Government Spending initiative (RGS2) will achieve the remaining savings of $4.2 billion over four years, starting in 2025–26 and $1.3 billion ongoing toward the overall refocusing government spending target. This covers the $1.8 billion shortfall from RGS1 and the RGS2 target announced in the Fall Economic Statement 2023.

Ministers are developing their proposals for RGS2 to explain the reductions they intend to make. Proposals will be considered by the Treasury Board at a meeting in December. The package of proposals approved by the Treasury Board will then be submitted to the Prime Minister for his concurrence before their inclusion in the 2025–26 Main Estimates.

Issue

Changes made to Estimates and other financial reporting to increase transparency and respond to recommendations and addressing the Parliamentary Budget Officer’s request for a fixed budget date that falls before the tabling of the Main Estimates

Response

The Government of Canada is committed to making it easier for parliamentarians and Canadians to hold the government to account for its spending plans and 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.

The government is also taking steps to streamline the process for the production of the Public Accounts of Canada, which provides information on spending and how revenues are generated.

Ifpressed on a set date for the budget or including all budget items in the Main Estimates:

• setting a specific date for presenting the budget would restrict the government’s flexibility to respond to unplanned or evolving situations
• in addition, it would not be feasible to include all budget items in the main estimates as many require further development and refinement before they can be approved by the Treasury Board and listed in the Main Estimates for parliamentary approval
• that said, the government is open to further suggestions on how to enhance the Estimates process and looks forward to recommendations that may come from the Senate finance committee’s study, which is currently underway

Parliamentary context

Parliamentarians, as well as the Parliamentary Budget Officer in his April 13, 2023, report on Budget 2023, voiced concerns about the timing of various supply cycle tablings, arguing that to improve transparency and comprehensibility for parliamentarians and the public, an earlier fixed budget date be adopted, before the tabling of the Main Estimates.

Background

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

In response, 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
• providing a reconciliation of Estimates to the latest federal budget or fiscal update

On March 29, 2022, the Standing Senate Committee on National Finance (NFFN) passed a motion so that the committee be authorized to conduct a study of the federal Estimates process and other finance issues and to submit a final report no later than April 14, 2024. The committee began the study with an appearance by the Auditor General on October 4, 2022. The committee has also since heard from the Parliamentary Budget Officer and officials from TBS.

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 provisions were not reintroduced in the 43rd Parliament, so the system reverted to the current standing orders and process.
• It is not possible to have any budget items approved by the 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 Treasury Board submission. Lastly, there is the issue of budget secrecy, where decisions are closely held until the tabling of the budget.

On the Transport Canada purpose-based vote pilot:

• Transport Canada also undertook a pilot project on purpose-based grants and contributions 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 Canada experienced some challenges in managing its transfer payment programs over the three separate votes. Flexibility to reallocate grants and contributions 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.
• In his April 13, 2023, report on Budget 2023, the Parliamentary Budget Officer reiterated his request for the Main Estimates to be tabled following the federal budget to include related investments.

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 30 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 Public Accounts of Canada report and the steps required to ensure the Public Accounts can be tabled by October 15 which may be feasible (the Public Accounts 2023 were tabled in the House by the President on October 24, 2023). Consultations will be held with the Receiver General of Canada, the Office of the Auditor General, and the chief financial officer 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 government continues to ensure that both the Departmental Plans and the Main Estimates are tabled in a timely manner to ensure parliamentarians have the information they need on the government’s plans for the upcoming fiscal year.
• The Departmental Plans 2024–25 were tabled on February 29, the same day as the Main Estimates 2024–25.

Issue

The Government of Canada’s use of professional services

Response

Contracted services are a regular part of government operations and complement the work of the public service.

These services are used to support a broad range of activities, including construction and engineering, health care delivery, and contaminated site remediation.

As a percentage of total expenditures, government spending on professional services has remained relatively consistent for more than a decade.

TBS regularly reviews its guidance to support departments in its contracting activities.

Notably, TBS has recently taken a series of actions to strengthen management and oversight of government procurement with a specific focus on professional services.

The manager’s guide about the use of professional services has been updated to include additional guidance to reinforce managers’ responsibilities in making decisions that demonstrate a prudent use of tax dollars.

TBS has added new mandatory procedures that every manager will need to fulfill when procuring professional services. This includes managers certifying that:

• they do not have a conflict of interest
• they have not directed which resources should be working under the contract
• the contractor did not assist or have unfair access in the solicitation process

Finally, the Comptroller General is undertaking a horizontal audit to assess governance, decision-making and controls associated with professional services contracts, including IT. Audit results, expected by December 2024, will inform any additional measures that are necessary.

Parliamentary context

Parliamentarians regularly brought up concerns around the government’s over-reliance on contracting outside IT services and consulting services during OGGO studies on ArriveCAN, McKinsey & Company, outsourcing of contracts, and Indigenous procurement. It has also been a concern raised during a Standing Committee on Public Accounts study on ArriveCAN.

Parliamentarians are concerned about a lack of transparency over contractors and subcontractors and, as a result of tensions in the House of Commons and committees related to testimony given during the ArriveCAN study, a motion was adopted to call Kristian Firth (Partner of GC Strategies) to the bar of the House to provide further answers to questions not responded to during committees.

Background

Government spending on external professional services – a broad category that includes everything from nursing to engineering to research to management consulting – increased by $1,078 million (6%) in 2022–23 when compared to fiscal 2021–22. Although 64% of departments have increased their external professional services in fiscal 2022–23, the year-over-year variance (%) or “growth rate” of 6% for the Government of Canada is the lowest it’s been in the past three years. This is mainly related to four major types of professional services:

1. informatics services (computer services, IT and telecommunications consultants)
2. health and welfare services (hospital services, welfare services purchased from social and related agencies, physicians and surgeons, paramedical personnel, and dental services)
3. business services (accounting and audit services, banking services, collection agency fees and charges, real estate services, and other business services)
4. engineering and architectural services (architectural design; control and plans; construction supervision of buildings and architecture of naval vessels; services related to assessment, remediation, care, maintenance and monitoring of contaminated sites; and engineering consultants)

While absolute spending has increased, the proportion of spending on external professional services has remained relatively consistent when compared to overall expenditures. Specifically, total departmental external professional services in 2011 was 11.1% of gross external expenditures, excluding transfer payments and public debt charges as compared to 11.7% in 2022. Through those years, the range was from 10.6% (2013 and 2021) to 11.8% (2016 and 2017).

Since 2011, the ratio of external professional services as a percentage of personnel expenditures by fiscal year has been relatively consistent, ranging from a low of 19% (in 2013) to a high of 23% (in 2017). For fiscal year 2022, the ratio was 22%.

While contracting is a normal and acceptable delivery strategy, the Office of the Chief Information Officer of Canada is developing a Government of Canada Digital Talent Strategy to ensure that the federal public service has the in-house digital talent and leadership it needs to build, deliver and maintain simple, secure and efficient digital services and programs.

The strategy is designed to support the digital community in the federal public service. This includes people who have skills, knowledge and experience in a variety of digital disciplines, including development, cyber security, data and many more. It also includes leaders who guide and sponsor digital initiatives.

Along with Public Services and Procurement Canada, TBS published the results of its review of contracts with McKinsey & Company in June 2023. The independent audits conducted as part of the review found no evidence of political interference in the contracts awarded to McKinsey & Company. The review also found that certain administrative requirements and procedures were not consistently followed. In addition to departments taking action, TBS outlined a number of measures it has since implemented to address these findings. This includes amendments made in June 2023 to the Directive on the Management of Procurement and the Guide to the Proactive Publication of Contracts to:

• require a risk-based system of internal control that is maintained, monitored and reviewed to provide reasonable assurance that procurement transactions are carried out in accordance with the framework and applicable laws, regulations and policies as well as ensure the accuracy, completeness and timely publication of contracting information for proactive disclosure​
• strengthen documentation requirements, particularly regarding the justification for the use of sole source
• require greater transparency in large professional services contracts above a dollar threshold by requiring additional details in contract descriptions

There have been serious questions raised regarding the integrity of the federal procurement system, including the practices of certain suppliers to the Government of Canada. Recent and ongoing audits (including by the Office of the Auditor General, Indigenous Services Canada and departmental internal auditors), practice reviews (by the Procurement Ombud), investigations (including by internal departmental investigators, the Privacy Commissioner, and the Royal Canadian Mounted Police) and studies by parliamentary committees concerning the use of professional services have consistently identified gaps in contracting practices and documentation.

In their reports, the Auditor General of Canada and the Procurement Ombud confirmed there are clear rules in place to ensure sound procurement management practices across government, but more can be done. In response, TBS and Public Services and Procurement Canada announced a series of new measures on March 20 to strengthen management and oversight of government procurement.

Issue

The Auditor General’s report on professional services contracts examined whether contracts awarded to McKinsey & Company were conducted in accordance with applicable policies and whether the government received value for money for those contracts.

Response

The Government of Canada has a robust set of policies in place for the management of procurement.

In fact, the Auditor General’s audit on professional services acknowledges that federal contracting and procurement policies exist but were not being consistently followed.

These were concerning findings, and departments, as responsible stewards of public funds, need to improve compliance.

TBS has taken action to strengthen procurement practices across organizations, including releasing a Manager’s Guide: Key Considerations When Procuring Professional Services to help managers meet their responsibilities under the Treasury Board’s rules when procuring goods and services.

TBS also announced new mandatory procedures in May 2024 as part of the Directive on the Management of Procurement, which addresses, among other requirements, conflict of interest in contracting for departments and agencies.

In addition, TBS is developing a risk and compliance process to assess trends, risks and individual departmental performance in key management areas and will take corrective actions where required.

As well, TBS launched a horizontal audit to assess governance, decision-making and controls associated with professional service contracts, including IT. Audit results will inform any additional measures that are necessary.

TBS will continue to help departments build capacity and strengthen professionalization of the federal procurement community to reinforce best practices and mitigate the types of administrative errors identified in this review.

Parliamentary context

On June 4, 2024, the Auditor General of Canada tabled three reports, including Report 5 of 2024, entitled Professional Services Contracts.

Following the Office of the Auditor General (OAG) report, TBS officials appeared at the Standing Committee on Government Operations and Estimates (OGGO) on September 19, 2024, in the context of their study, Federal Government Consulting Contracts Awarded to McKinsey & Company.

Prior to the tabling of the OAG report, the President of the Treasury Board appeared at OGGO on February 8, 2023, to discuss federal government consulting contracts awarded to McKinsey & Company more broadly.

The issue of contracts awarded to McKinsey & Company by the federal government has been brought up regularly in parliamentary debates, including both in committees and during Question Period.

Background

In January 2023, the Prime Minister requested that the President of the Treasury Board and the Minister of Public Services and Procurement Canada undertake a review of federal contracts awarded to McKinsey & Company. TBS asked departments with McKinsey & Company contracts (10 in total) to undertake an internal compliance audit. All departments did and, where applicable, developed management actions plans to address the administrative weaknesses. In addition, TBS and Public Services and Procurement Canada published a final report in June 2023 that included additional measures both departments would take in this area. The Minister of Public Services and Procurement Canada also requested the Procurement Ombud to undertake a review, which he released in March 2024.

The OAG audit is in response to a motion adopted by the House of Commons Standing Committee on Government Operations and Estimates (OGGO) on January 18, 2023, for the OAG to conduct a performance and value-for-money audit of the contracts awarded to McKinsey & Company since January 1, 2011. It is broader in scope, as it was to look at more than compliance and also included the 10 Crown corporations that had contracts with McKinsey & Company.

In large part, the OAG audit reconfirms the findings that have been noted through previous audits and reviews, notably, that no political interference was found, but that departments and agencies frequently failed to properly follow all aspects of their procurement policies. Rather than repeat recommendations, the OAG encourages departments to implement the recommendations resulting from previous reviews.

This report provides a single recommendation concerning a more proactive process to identify conflict of interest in procurements. While the OAG did not find instances of conflict of interest, this has been identified as a good practice that TBS agrees with.

TBS has provided a management response to the recommendation on behalf of all 10 federal departments included in the report (not Crown corporations). The recommendation:

• emphasizes the existing duties of public servants, as a term and condition of employment, to uphold the Values and Ethics Code for the Public Sector and adhere to the Directive on the Conflict of Interest
• highlights that, further to the commitment made by the President made on March 20, 2024, and reiterated in Budget 2024, the Directive on the Management of Procurement has been amended to strengthen the management and oversight of government procurement with new mandatory procedures when contracting professional services that will require all business owners or managers to sign off on a conflict of interest before entering into a contract

Issue

Federal real property policy requirements and supporting investments in affordable housing

Response

The Government of Canada is committed to making housing affordable for Canadians.

The Federal Lands Initiative, led by the Canada Mortgage and Housing Corporation (CMHC), is a $200-million fund to support the transfer of surplus federal lands and buildings and create approximately 4,000 units of affordable housing.

A number of legal obligations referenced in Treasury Board policy must be honoured during the disposal process before a property is transferred to CMHC or the Canada Lands Company to be sold.

The Treasury Board provided CMHC with flexibilities to make properties available at discounted value or at no cost in order to be developed or renovated for use as affordable housing.

TBS continues to work with Public Services and Procurement Canada and federal partners to look at ways to build on these actions. The government is committed to expediting the real property disposals process to support the use of surplus federal lands to enable investments in affordable housing while continuing to meet our legal obligations.

Parliamentary context

On August 20, 2024, a TBS official appeared at the Standing Committee on Government Operations and Estimates (OGGO) to give testimony on the Directive on the Management of Real Property in the context of OGGO’s study on the purchase of the official residence of the Consul General in New York.

In the last year, a handful of questions have been brought up during Question Period relating to the disposal of federal property, mostly answered by the Minister of Public Services and Procurement.

Background

Issue

The updated Greening Government Strategy, led by TBS, specifies that Government of Canada operations will be net-zero emissions by 2050 and will enhance its climate resilience by 2035, while also reducing environmental impacts beyond carbon, including on waste, water and biodiversity.

Response

Climate change is one of the greatest global challenges of our time, and climate action is required now.

Through the Greening Government Strategy, the Government of Canada is greening its operations and targeting net-zero emissions.

The strategy focuses on key areas, including real property, mobility and fleets, procurement of goods and services and climate resiliency, and we are making good progress. For example, as of 2023–24:

• we realized a 42% reduction in greenhouse gas emissions from our real property and conventional vehicle fleet compared to 2005 levels
• 83% of the federal government’s new purchases of light-duty vehicles were green (45% zero-emission vehicles, 38% hybrids) where the target applied
• after just over one year after coming into force, already 39% of our procurement processes with major suppliers applied the Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets

TBS will continue to work with departments and Crown corporations to meet our targets and ensure net-zero emissions in government operations by 2050.

Parliamentary context

The Commissioner of the Environment and Sustainable Development has tabled audits in Parliament on various items implicating TBS:

• contaminated sites in the North
• greening government
• greening of construction materials in public infrastructure

TBS has appeared at the Standing Senate Committee on Energy, the Environment and Natural Resources (ENEV) and the House of Commons Standing Committee on Environment and Sustainable Development (ENVI) several times in the last year.

Background

As the owner and manager of the largest fixed asset portfolio in Canada (over 34,000 buildings; 20,000 engineered assets, such as bridges and dams; and over 40,000 vehicles), the Government of Canada has a critical role to play in meeting Canada’s climate objectives.

With over $30 billion in annual procurement, the government is the largest public buyer in Canada and is well positioned to leverage its procurement power to stimulate market demand for low-carbon products from Canada’s emerging clean technology sector.

The Government of Canada is transitioning to net-zero emissions and climate-resilient operations while also reducing environmental impacts beyond carbon, including reductions in waste and water use and improvements to biodiversity.

The Greening Government Strategy: A Government of Canada Directive specifies greening government commitments for:

• government-owned buildings
• government-owned fleet
• government procurement
• climate resilience (adaptation)

The strategy was created in 2017 and updated in 2020 and 2024.

The Centre for Greening Government supports TBS’s mandate by:

• providing strategic advice to other federal departments and agencies regarding net-zero emissions, climate resilient and green operations through:
  • providing practical guidance and tools for net-zero, resilient and green real property, fleet and procurement
  • convening interdepartmental working groups and external stakeholder communities of practice to share expertise, successes and best practices among departments
• tracking and publicly disclosing government environmental performance information, including greenhouse gas emission reductions for federal operations
• administering the Greening Government Fund to reduce emissions and support projects that can be replicated within and across departments
• administering the Low-carbon Fuel Procurement Program
• working with Public Services and Procurement Canada on common procurement tools that incorporate greening criteria.

Issue

TBS has published the Government of Canada Trust and Transparency Strategy, which sets out commitments to support federal government institutions in reinforcing public trust. In parallel, TBS is also advancing key actions to ensure the Government of Canada’s privacy risks are being accurately identified and managed.

Response

Access to information is essential for our democracy and must reflect Canadians’ and Indigenous Peoples’ expectations for accessible, timely and trustworthy information.

At the same time, it must respect the privacy rights of Canadians.

The government has taken steps to help strengthen public trust and address the most pressing challenges facing the ATI regime.

For example, the government recently published the Government of Canada Trust and Transparency Strategy to guide efforts to increase openness and access to information.

Additionally, the Access to Information Modernization Action Plan and the Policy Guidance on the Disclosure of Historical Records Under the Access to Information Act set out efforts to improve access to government information through modern polices and practices.

The government is continuously adopting measures to safeguard the personal information held by its institutions, especially with the increasing use of data and emerging technologies across the government.

The privacy impact assessment (PIA) suite of policy instruments was recently updated to ensure federal institutions appropriately manage the privacy risks of their personal information holdings.

The government will continue to work with key stakeholders and federal institutions to improve access to government information and the safe holding of Canadians’ private information.

Parliamentary context

In June 2023, the House of Commons Standing Committee on Access to Information, Privacy and Ethics (ETHI) completed their study, Access to Information and Privacy Systems, and tabled its reports, with several recommendations implicating TBS.

The President of the Treasury Board and senior officials from TBS appeared on April 18, 2023, in the context of ETHI’s study.

The government response to the report was tabled on October 17, 2023.

All opposition parties agree with the recommendations from the ETHI report and have consistently voiced concern the perceived lack of progress of the government on the broader issue of transparency.

Parliamentarians from every party have expressed significant interest in reviewing and modernizing the Access to Information Act, with the next legislated review to be launched no later than June 2025.

On October 10, 2024, ETHI published their report on the study of the federal government’s use of technological tools capable of extracting personal data from mobile devices and computers. The study followed a Radio-Canada story of 13 federal institutions not having undergone PIAs prior to launching initiatives with these technological tools.

The President of the Treasury Board and senior officials from TBS appeared on March 21, 2024, in the context of ETHI’s study.

The government response is being led by TBS and is to be tabled by February 7, 2025. The 14 recommendations include updating the Directive on Privacy Impact Assessment and amending the Privacy Act to include explicit transparency requirements.

Background

The Government of Canada is committed to the core principles of transparency, accountability and participation, which are integral to a healthy, functioning democracy, and to maintaining public trust.

In line with the government’s commitment to transparency, the 2024 federal budget proposed $84 million in funding for TBS and Library and Archives Canada to maintain the access to information and privacy (ATIP) regime and expedite requests. Some funding for TBS and Library and Archives Canada will be devoted specifically to advance the work on declassification and disclosure and support other key actions.

On May 29, 2024, the President of the Treasury Board announced the publication of the Government of Canada Trust and Transparency Strategy, which sets out a whole-of-government blueprint to strengthen public trust in federal institutions.

The Government of Canada Trust and Transparency Strategy is made up of two key pillars: the Access to Information Modernization Action Plan and the National Action Plan on Open Government.

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, faces persistent cyber threats.

There are systems and tools in place to monitor, detect and investigate potential threats, and take active measures to neutralize them.

Cyber threat activities are growing in scale and complexity. In response, the Government of Canada published its first Government of Canada’s Enterprise Cyber Security Strategy this past May.

The strategy is a proactive, whole-of-government approach to help strengthen the government’s ability to effectively combat cyber threats and address vulnerabilities.

TBS and its partners across government will continue to prevent, detect and manage cyber incidents so that federal organizations can deliver reliable and secure digital services to Canadians.

Parliamentary context

On November 15, 2022, the Auditor General of Canada tabled a report, Cybersecurity of Personal Information in the Cloud.

The Standing Committee on Public Accounts (PACP) subsequently did a study on the audit, with the Chief Information Officer of Canada appearing on March 30, 2023.

PACP’s report Cybersecurity of Personal Information in the Cloud was tabled on October 9, 2024. A government response to the report is expected to be tabled by February 6, 2025.

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.

Cyber security is a shared responsibility across government. Departments and agencies have a responsibility to ensure that cyber security is managed within their organization, including the cyber security of departmental programs and services.

TBS, Shared Services Canada and Communications Security Establishment Canada (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 Canada, also provides support on cyber security from a national perspective.

TBS:

• provides policy leadership, advice and guidance for all matters related to government security
• establishes and oversees a whole-of-government approach to security
• provides strategic oversight of government cyber security event management to ensure effective coordination of major security events and support government-wide decision-making

The Chief Information Officer of Canada:

• sets IT security policy
• defines cyber security requirements
• executes decisions on the management of cyber security risks on behalf of the Government of Canada

Over the past decade, the government has taken steps to improve its cyber security posture by standardizing IT infrastructure and integrating cyber defence services, establishing the Canadian Centre for Cyber Security, and putting in place clear governance, policies and tools to support cyber security. Despite this progress, gaps still remain. The Government of Canada’s Enterprise Cyber Security Strategy aims to address these gaps and ensure the government is well positioned to address future cyber threats. It is a forward-looking plan to improve cyber security across government departments and agencies to continue to provide secure and reliable digital government services. It serves as a framework to move the government even more from a defensive position to a proactive cyber security approach by improving training, applications, policy and monitoring. Budget 2024 proposes to provide $11.1 million over five years, starting in 2024–25, for TBS to implement a whole-of-government cyber security strategy. Specifically, funding will support key actions, including:

• establishing a centralized evaluation system with independent assessments and thorough reviews of departments’ cyber security to identify and prioritize risks
• creating a federated integrated risk management platform to enable prioritization and data-driven reporting as a key part of a broader enterprise portfolio management system
• creating a government-wide vulnerability management program for a coordinated vulnerability disclosure process and will focus on people, processes, policies and technology
• forming a new “purple team” that will emulate techniques used by malicious threat actors against government systems to proactively test and audit any security gaps; this type of team does not currently exist in the government

TBS also maintains the Government of Canada 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. To ensure that the GC CSEMP is up to date and effective, the plan is tested regularly, reviewed on an annual basis, and updated if changes are warranted, for example, in light of lessons learned from cyber events. The latest version of GC CSEMP was published in October 2023.

The most recent cyber simulation took place in February 2023 as part of the government’s executive level cyber simulation exercises designed to test how the government responds to a significant cyber event impacting multiple Government of Canada departments.

In January 2024, escalation under the GC CSEMP was required in response to a cyber incident impacting remote access services of Global Affairs Canada within Canada. While Global Affairs Canada’s critical services were not impacted, this resulted in a data breach that affected employees.

In February 2024, the Royal Canadian Mounted Police (RCMP) was affected by a cyber event that targeted its networks, forcing it to launch a criminal investigation into the breach. There was no impact on RCMP operations and no known threat to the safety and security of Canadians.

In March 2024, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) experienced a cyber attack resulting in unauthorized access to data capture network. Following extensive forensic analysis performed by the Canadian Centre for Cyber Security, there was no evidence that information was lost or that data was exfiltrated during the incident. It is also worth noting that Canadian Centre for Cyber Security did not assess this incident as a systemic risk to the Canadian financial sector.

In August 2024, TBS issued the Improving GC Cyber Security Health: Security Policy Implementation Notice to reinforce specific requirements under the Policy on Government Security and the Policy on Service and Digital.

Cyber incidents have also impacted services contracted out by the government. Compromises within the supply chain have an impact on the Government of Canada and introduce operational risks when third-party services are used. Managing cyber security risks in supply chains requires ensuring the integrity, security, quality and resilience of the supply chain and its products and services.

In October 2023, relocation support services provided by a third-party supplier (BGRS and SIRVA Canada) were affected by a cyber incident which impacted current and former affected employees of the Government of Canada, the Canadian Armed Forces and the Royal Canadian Mounted Police. In February 2024, a fourth-party supplier (MSH International) under Canada Life providing Public Service Health Care Plan travel and emergency assistance benefits was affected by a cyber incident. Both of these incidents had privacy implications and warranted a Government of Canada–wide response, including invocation of the GC CSEMP communications framework to ensure consistent and coordinated messaging from the Government of Canada. The Policy on Privacy Protection also requires that federal institutions have plans in place to respond to privacy breaches, including those resulting from a cyber security event or incident.

Issue

Departments have been exploring AI technologies to improve services to Canadians. The Government of Canada is committed to ensuring the responsible development and use of AI in the federal public service. Media and public interest in AI has grown significantly over the past year, following the release of generative AI tools such as ChatGPT to the public.

Response

The Government of Canada is committed to ensuring the responsible use of AI and ensuring it is governed with clear values, ethics and rules.

While AI has been used in the Government of Canada for decades, recent rapid advancements in technology, including the growing use of generative AI, will increasingly enable new approaches in government service delivery.

The Government of Canada recently completed consultations to help shape its upcoming AI strategy.

The strategy will accelerate responsible AI adoption throughout the federal public service to enhance productivity of public servants, increase our capacity for science and research, and deliver better digital services for people in Canada.

The Government of Canada AI strategy is expected to be published in the spring of 2025.

Parliamentary context

While the issue of responsible use of AI has been the subject of contentious debates in the House or in the Senate, it was brought up in the context of the Standing Committee on Access to Information, Privacy and Ethics (ETHI) study, Use and Impact of Facial Recognition Technology.

In ETHI’s report, presented to the House on October 4, 2022, four recommendations touch on the use of AI. More specifically, Recommendation 7 called for an enhancement of the Treasury Board Directive on Automated Decision-Making to ensure the participation of civil society groups in algorithmic impact assessments and to impose more specific requirements for the ongoing monitoring of AI systems.

The government response to ETHI’s report, led by TBS, was tabled in the House on February 1, 2023.

Bill C‑27, Digital Charter Implementation Act, 2022, is currently at consideration in committee at the Standing Committee on Industry and Technology (INDU). In June 2022, the Government of Canada tabled the Artificial Intelligence and Data Act as part of Bill C‑27.

Background

Issue

The Government of Canada’s ability to improve the delivery of government services depends entirely on the Government of Canada’s digital capacity driven by digital talent. Driven by Canada’s Digital Ambition, the Government of Canada Digital Talent Strategy will ensure that the Government of Canada has the digital skills, processes and culture to design and deliver robust digital services to better serve people across Canada.

Response

The Government of Canada continues to take concrete steps to develop the expertise and excellence of the public service so it can deliver effective, modern and citizen-focused programs and services to Canadians.

Published in fall 2023, the Government of Canada Digital Talent Strategy outlines our commitment to building a skilled and diverse workforce and identifies specific actions to attract, develop and retain digital talent.

In January 2024, the GC Digital Talent platform was launched to advance efforts for flexible staffing options to recruit and develop digital talent while leveraging existing enterprise recruitment and development services.

The platform currently has over 850 prequalified applicants ready to be paired with digital opportunities across the Government of Canada. New job opportunities are posted on an ongoing basis.

Most recently, the Government of Canada launched the IT Community Training and Development Fund as part of the latest agreement for the IT group with the Professional Institute of the Public Service of Canada (PIPSC).

This fund will help support the professional development of over 20,000 IT practitioners across the Government of Canada.

Parliamentary context

Parliamentarians showed interest for the Government of Canada Digital Talent Strategy during an appearance of TBS officials on April 17, 2024, in the context the Main Estimates 2024–25, at the Standing Senate Committee on National Finance (NFFN).

While the Government of Canada Digital Talent Strategy itself has not otherwise been the subject of debates in Parliaments, members of Parliament and senators have been questioning TBS officials regularly through committee appearances around the importance of recruiting and retaining IT talent within the public service.

Background

The Government of Canada Digital Talent Strategy is driven by the TBS Office of the Chief Information Officer, which has been tasked with managing the digital community.

The strategy has four missions:

• Mission 1 – Attract and recruit digital talent: improve recruitment processes and tools to help the Government of Canada better meet digital talent needs and expectations when joining the federal public service
• Mission 2 – Develop and retain digital talent: create skill development initiatives that enable digital talent to keep pace with the continuous evolution of technology and career pathways that enable meaningful advancement in both individual contributor and leadership roles
• Mission 3 – Build fit-for-purpose processes, policies and tools: develop organizational agility, reduce administrative burden, and set up digital talent and the enterprise for digital change
• Mission 4 – Create a digital culture defined by diversity, equity and inclusion that puts people first to drive service delivery excellence: build a digital community that reflects the diverse people they serve to better equip the Government of Canada to design and deliver equitable, inclusive and accessible services

Early guidance is being shared with departments and agencies to help them fulfill the seven common actions all organizations must take to support digital talent:

1. Use existing enterprise recruitment and development services before developing new ones
2. Align with and comply with the Policy on Service and Digital and its digital talent component, the Directive on Digital Talent and Mandatory Procedures on Digital Talent
3. Review the department’s internal processes that impact digital service development and adjust those that are not fit for purpose
4. Align with government-wide direction on building multidisciplinary teams and using flexible staffing options to recruit and develop digital talent
5. Create space for continuous learning through the Canada School of Public Service or specialized training offerings
6. Instill a human-centred, outcomes-focused and service-focused culture to help increase the Government of Canada’s digital government maturity
7. Identify and communicate to TBS any barriers to recruiting, developing or retaining digital talent

While the strategy is in its early days of implementation, some additional early successes include:

• the Annual Digital Talent Survey, which gathers business intelligence from the digital community for evidence-based HR planning decisions
• a host of services directly to departments, including executive recruitment, talent management, career guidance, mentoring, learning paths and more
• tests of new initiatives and scaling those that best support the digital community, for example, creating a permanent senior technologist role and a dual-track career progression framework

The first “year in review” of the Government of Canada Digital Talent Strategy is currently gathering feedback and is expected to be published this winter.

Supplementary Estimates (B) overview

Supplementary Estimates (B), 2024–25, presents $24.8 billion in budgetary spending:

• $21.6 billion to be voted, a 4.3% increase from 2023–24 Supplementary Estimates (B)
• $3.2 billion in forecast statutory expenditures (down by 18% from 2023–24 Supplementary Estimates (B))

Including Supplementary Estimates (B), total voted budgetary spending for 2024–25 is $224.4 billion, $14.9 billion lower than at the same point in 2023–24. Statutory spending is up $22.2 billion over the same period.

Indigenous services

Indigenous Services Canada is seeking $4.5 billion, including:

• $955.2 million for First Nations child and family services
• $725.0 million for services and supports under Jordan’s Principle
• $562.5 million for non-insured health benefits
• $311.4 million for mental wellness and substance use treatment services
• $274.7 million for First Nations elementary and secondary education

Treasury Board of Canada Secretariat spending and central votes

Changes to TBS departmental votes include:

• $35.9 million in Vote 1 – Program Expenditures for:
  • $18 million for the Next Generation HR and Pay initiative (Budget 2024)
  • $3.6 million for the Office for Public Service Accessibility (Budget 2024)
  • $3.4 million for strengthening Canada’s access to information system (Budget 2024)
  • $3.2 million for the Government of Canada Enterprise Cyber Security Strategy (Budget 2024)
  • $7.7 million for other initiatives, including transfers from or to other government departments
• $643.6 million in Vote 20 – Public Service Insurance to cover cost increases

TBS is also seeking:

• $2 million in Treasury Board Vote 10 – Government-wide Initiatives related to a Phoenix settlement
• $970.8 million in Treasury Board Vote 15 – Compensation Adjustments, which will be transferred to departments and agencies for negotiated salary adjustments

National Defence

National Defence is seeking $3.3 billion, including:

• $763.5 million in military aid to Ukraine
• $659.1 million for the Future Aircrew Training Program
• $561 million for the Canadian Multi-Mission Aircraft project
• $315.3 million for the Joint Support Ship project
• $299.2 million for the sustainment of the Halifax-class frigates

National Defence’s voted budgetary spending for 2024–25 rises to $32.8 billion, $5.7 billion higher than at the same point in 2023–24.

Professional services

Supplementary Estimates (B), 2024–25, includes $3 billion in planned spending on professional and special services. Two departments have over $500 million in planned spending:

• $618.8 million for National Defence, primarily for engineering services as well as scientific and research services
• $533.9 million for Indigenous Services, primarily for administration and legal costs of settlements and wellness services, as well as health services

In Phase 1 of the Refocusing Government Spending initiative, departments identified savings totalling $800 million ongoing related to professional services.

Statutory expenditures

Supplementary Estimates (B), 2024–25, also presents for information purposes:

• $2.6 billion for the Canada Carbon Rebate for small businesses
• a $307.0-million increase in the carbon rebate for individuals

Statutory non-budgetary amounts reflect:

• $400 million in financial assistance to Ukraine
• a $276-million investment in the World Bank to help developing countries and advance the United Nations’ Sustainable Development Goals

Other priorities

Supplementary Estimates (B), 2024–25, includes funding for a wide range of important flagship programs, such as:

• $942.5 million for programs and services which provide support to eligible Veterans and their families
• $742.5 million for Canada Mortgage and Housing Corporation housing programs, including $122.6 million for apartment construction loans, $114.2 million for affordable housing and $100.6 million for the Housing Accelerator Fund
• $317.4 million for the Canadian Dental Care Plan
• $56.4 for the National School Food Program

Procurement and professional services

To strengthen procurement oversight, the government has:

• updated the Manager’s Guide: Key Considerations When Procuring Professional Services and introduced new mandatory procedures for procuring professional services
• revised the Directive on Conflict of Interest
• increased contract information on open data and reviewed existing data for accuracy
• launched a horizontal audit to evaluate governance, decision-making and contracting control
• advanced the development of a risk and compliance process to help assess effectiveness and risk in key administrative areas, with a launch planned for early fiscal year 2025

Conflict of interest and values and ethics

The revised directive will be issued by the end of January 2025 and will clarify requirements for employees with outside employment, especially when contracting with the government.

Employees must inform their deputy head of any outside employment or activities that could lead to a real, apparent or potential conflict of interest, and seek approval before entering any contractual arrangements with the government.

In 2022–23, there were 79 conflict of interest declarations, and in 2023–24, there were 84, indicating that public servants are actively complying with the directive’s requirements.

Public Accounts

The Financial Administration Act mandates that the Public Accounts of Canada be tabled by December 31, or within the first 15 sitting days if the House is not sitting (February 14, 2025).

The government confirmed that the production plan will be adapted to produce the Public Accounts by October 15, starting in 2025.

This change aligns with the Parliamentary Budget Officer’s recommendation to advance the release of annual results.

Refocusing government spending

Budget 2024 directs organizations to identify $4.2 billion in operating savings from 2025–26 to 2028–29, and $1.3 billion ongoing, for a total of $4.8 billion in annual savings.

Savings will only be drawn from operating budgets, using natural attrition to the greatest extent possible, without impacting programs and services, and in a way that continues to support regional representation and public service diversity.

Canada Life

Both Canada Life and MSH International have made improvements.

Public service issues

As of March 31, 2024, the federal public service had 367,772 employees.

Personnel costs as a proportion of total expenditures have remained stable year over year.

The updated hybrid work model aims to improve team-building, service delivery and public confidence.

A working group will examine public sector productivity, technology in service delivery, and options for enhancing innovation and flexibility.

Discrimination and harassment

Everyone has the right to a safe work environment that is free of discrimination. Racism has plagued many workplaces, including the public service.

Efforts continue to create a diverse and inclusive public service free from racism, harassment and discrimination.

Budget 2023 provided $6.9 million over two years to advance a restorative engagement program to empower employees who have suffered harassment and discrimination, and to drive cultural change in the public service.

As well, new programs have been announced that support the mental health, well-being and career aspirations of Black public servants.