President of the Treasury Board appearance before the Standing Committee on Government Operations and Estimates (OGGO) – Supplementary Estimates (C) 2022-23 – March 2023

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

The $100.7 million increase in funding for CIRNAC covers a variety of initiatives and activities, including:

• $30.0 million to make an advance payment to the Okanagan Indian Band, which is currently in mediation with the federal government;
• $20.0 million for local food security efforts in northern isolated communities; and
• $19.0 million to stabilize the department’s internal services.

Department of Indigenous Services Canada (ISC)

The $764.1 million increase in funding for ISC relates to a number of items, the largest of which are:

• $271.1 million to reimburse First Nations and emergency management service providers for on-reserve response and recovery activities;
• $170.9 million for the continued implementation of Jordan’s Principle;
• $90.0 million for the First Nations Child and Family Services Program; and
• $69.6 million for adult education.

New tax measures

The Tax-Free First Home Savings Account allows prospective buyers to save up to $40,000 tax-free toward their first home. Like an RRSP, contributions will be tax-deductible, and withdrawals to purchase a first home—including investment income—will be non-taxable, like a TFSA.

The Multi-Generational Home Renovation Tax Credit allows Canadians to claim a portion of renovation costs required for family members living with them who are seniors or disabled.

The Underused Housing Tax is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022.

Military equipment

The Prime Minister announced an additional $500 million of military aid on November 14, 2022.

Recent announcements regarding equipment include the provision of:

• 200 Canadian-made armoured personnel carriers;
• a National Advanced Surface-to-Air Missile System (NASAMS) and associated munitions to protect against drone, missile, and aircraft attack; and
• four Leopard 2 main battle tanks from the Canadian Armed Forces’ (CAF) inventory, along with ammunition and spare parts. The tanks will be transported to Europe in the coming weeks, and CAF members will train Ukrainian soldiers on the use of these tanks in a third country.

Operation Unifier

Since the start of Op UNIFIER in 2015, the CAF has trained over 35,000 Ukrainian military and security personnel in battlefield tactics and advanced military skills. Early in 2022, Op UNIFIER was expanded and extended until March, 2025.

Approximately 230 CAF personnel are currently deployed on Op UNIFIER:

• approximately 170 CAF in the UK to support the training of Ukrainian recruits;
• approximately 40 combat engineers in Poland to assist in the training of Ukrainian sappers; and
• other personnel across Europe, working with Allies on a range of activities.

Ukraine immigration measures

Through the Canada-Ukraine authorization for emergency travel (CUAET), Ukrainian nationals and their family members can apply for a temporary resident visa to travel to and stay in Canada temporarily. 514,020 temporary resident applications have been approved between March 17, 2022 and January 24, 2023.

Public debt charges

The Supplementary Estimates (C), 2022–23 provides an updated forecast for public debt charges:

• interest on unmatured debt, up $6.6 billion to $26.2 billion
• other interest costs, essentially unchanged (down $2 million) at $5.1 billion

The increase is due to the sharp rise in short-term interest rates and the impact of higher inflation on real return bonds, which adjust payments (both interest and return of principal) to offset inflation, as measured by the Consumer Price Index (Note: The government ceased issuing new real return bonds in 2022 due to low demand).

As shown in the FES^{Footnote 1}, public debt charges are forecast to fall slightly in 2024-25 as inflation and interest rates are forecasted to subside, before growing modestly with additional borrowing requirements in 2025-26 through 2027-28.

As a share of GDP, public debt charges remain very low by historical standards—they are expected to rise to 1.5 per cent in 2023-24 before declining to 1.3 per cent by 2027-28. This is still near historic lows, and well below the peak of 6.5 per cent of GDP in the 1990s and 2.1 per cent in 2007-2008 before the financial crisis.

Elderly Benefits

The Supplementary Estimates (C), 2022–23 provides an updated forecast for elderly benefits:

• Old Age Security: up $1.1 billion to $53.0 billion
• Guaranteed Income Supplement: up $49.0 million to $15.5 billion
• Allowance (for survivors): down $73.0 million to $544.0 million

The changes are based on updated forecasts of the average monthly rate, number of beneficiaries, and benefit repayment amounts. The total for all three benefits matches the $69.0 billion forecast for elderly benefits in the FES.

The $69.0 billion forecast is a 13.5% increase from 2021–22 spending, driven by the increasing population of seniors and projected consumer price inflation, to which benefits are fully indexed, as well as the 10 per cent increase to Old Age Security payments for pensioners 75 and over as of July 2022. Over the next five years (through 2027-28), elderly benefits are forecast to grow by 7.0 per cent on average annually.

Seven million seniors aged 65 or older directly benefit from Old Age Security.

Issue

Treasury Board approves voted expenditures before they are presented in Estimates and appropriation bills. However, Treasury Board does not typically approve statutory spending, including tax expenditures.

Response

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

Background

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

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

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

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

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

Issue

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

Response

• The Government of Canada is committed to providing information to parliamentarians and Canadians so they can understand how tax dollars are spent and hold the government to account for its spending decisions.
• The Government has continued to make changes to increase transparency of financial information, and to make Estimates documents easier to understand.
• The government continues to welcome feedback on its documents and processes.

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

• Setting a specific date for presenting the Budget or introducing the Budget and the Main Estimates concurrently would unnecessarily restrict the Government’s ability to respond to global and domestic imperatives.
• It is important to note that new spending requirements for initiatives announced in the Budget would not be sufficiently developed in time to be included in the Main Estimates.
• A pilot project to align the Estimates in the 42nd Parliament was undertaken. The pilot was not extended, and the system reverted to the current standing orders and process.

Background

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

In response, Treasury Board of Canada Secretariat (TBS) made ongoing changes to products and processes, including:

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

On March 29, 2022, the Senate Committee on National Finance (NFFN) passed a motion so that the Committee be authorized to conduct a three-year study of the federal estimates process and other finance issues and to submit a final report no later than April 14, 2024. The committee began the study with an appearance by the Auditor General on October 4, 2022 and TBS officials appeared more recently on February 8, 2023.

TBS also conducted pilot projects on aligning Main Estimates with the federal budget and on purpose-based votes.

On aligning Main Estimates and the federal budget:

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

On the Department of Transport purpose-based vote pilot:

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

On fixing a date for the federal budget:

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

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

• Recent reports by the Parliamentary Budget Officer have recommended requiring publication of the Public Accounts and the Departmental Results Reports no later than September 30th, and tabling of the Departmental Plans at the same time as Main Estimates.
• The Standing Committee on Public Accounts recommended in their report on the Public Accounts of Canada 2021 that the tabling date be changed to October 15.
• Parliament does receive information on actual expenditures prior to tabling of Public Accounts and the Departmental Results Reports (DRRs). The Fiscal Monitor for March 31 is released on the last Friday in May and provides preliminary financial results which include the majority of actual spending for the fiscal year.
• The government will consider the PAC report and the steps required to ensure the Public Accounts can be tabled by October 15 which may be feasible.  Consultations will be held with the Receiver General of Canada, the Office of the Auditor General, and the CFO Community to assess how timelines can be amended to facilitate this target tabling date.  Consideration will be required in relation to election years as the current requirement is that Parliament must be in session to table to the Public Accounts.
• Recent federal elections (2019 and 2021) took place in the fall and resulted in the later tabling of Public Accounts and DRRs. The 2018-19 DRRs would normally have been tabled in fall 2019 but were ultimately tabled on February 26, 2020. The 2020-21 DRRs would normally have been tabled in fall 2021 but were ultimately tabled on February 1, 2022. In these cases, the time needed for new ministers to review and approve the reports for their portfolios is compressed and have a consequence on the timing for tabling.

On tabling of Departmental Plans and alignment with Main Estimates:

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

TB Vote 10, Government-wide Initiatives

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

Supplementary Estimates (C), 2022–23 includes an additional $9.3 million in TB Vote 10 for the Application Modernization Initiative. This funding will enable several federal departments and agencies to upgrade outdated and at-risk information technology (IT) applications hosted on aging infrastructure by moving these applications to either the Cloud or to a modern data centre.

Since the launch of the Application Modernization Initiative, Treasury Board Secretariat has prioritized projects based on factors such as alignment with Government of Canada (GC)-wide priorities and the urgency of need to migrate to new solutions.

TB Vote 30, Paylist Expenditures

Allocations from TB Vote 30 are used to supplement the appropriations of departments for requirements related to parental and maternity allowances, entitlements on cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration including members of the Royal Canadian Mounted Police and the Canadian Forces, where these have not been provided from Vote 15, Compensation Adjustments.

Supplementary Estimates (C), 2022–23 presents additional paylist requirements of $140 million. This funding will allow Vote 30 to meet:

• anticipated allocation requests (parental benefits, termination benefits, etc) from departments;
• potential needs related to collective bargaining agreements signed before year-end; and
• qualifying claims for excess vacation liabilities.

This increase will ensure that TB Vote 30 remains viable through to the end of the fiscal year. Any unused amounts will be returned to the fiscal framework.

Issue

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

Response

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

Background

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

The Treasury Board has three principal roles:

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

Since December 2003, the Treasury Board has also been asked to serve as the Committee of the Privy Council advising the Governor in Council. This role is often referred to as “Treasury Board, Part B.” The principal role of Treasury Board, Part B, is to provide “regulatory oversight”, reviewing and approving most regulations and orders-in-council.

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

Specific responsibilities assigned directly to the President include:

• coordinating the activities of the Secretary, Comptroller General, Chief Human Resources Officer and the Chief Information Officer of Canada and delegating responsibility to the Secretary or other officials accordingly;
• recommending external members of departmental audit committees;
• establishing the form and tabling of the Public Accounts;
• publishing a consolidated quarterly report on Crown corporations;
• receiving and tabling a wide range of reports under legislation or Treasury Board policies.

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

• establish policies and forms with respect to the administration of the Access to Information Act and the Privacy Act;
• administer components of the Official Languages Act;
• administer components of the Public Servants Disclosure Protection Act.

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

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

• engage in collective bargaining under the Federal Public Sector Labour Relations Act;
• make rules respecting deployments, probation and promotion under the Public Service Employment Act;
• set pay levels for Canadian Armed Forces members under the National Defence Act.

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

Issue

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

Response

• In Budget 2022, the Government of Canada committed to conducting a Strategic Policy Review.
• This Strategic Policy Review has two objectives:
  • First, it will assess program effectiveness in meeting the government’s key priorities of strengthening economic growth, inclusiveness, and fighting climate change.
  • Second, it will identify opportunities to save and reallocate resources as programs and operations are adapted to a post-pandemic reality, where, among other changes, services are increasingly delivered digitally.
• We are ensuring that Canadians’ tax dollars are being used effectively, that we are focused on the right priorities, and that government programs are delivering results for Canadians.
• We will provide an update on our work in Budget 2023.

Background

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

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

There are two streams for the Strategic Policy Review:

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

The review targets savings of $6 billion over five years, and $3 billion annually by 2026-27.

Budget 2023 will provide an update on the review’s progress.

Issue

On December 15, 2022, deputy heads across the core public administration, were directed to adopt a common hybrid work model. Organizations that have not already implemented this hybrid model are to plan a phased introduction beginning January 16, 2023, with full implementation by March 31, 2023.

Response

• Coming out of the pandemic, the federal government has chosen to adopt a hybrid way of working. This new approach blends the flexibility of remote work with the valuable experiences that can only be experienced working onsite.
• While departments and agencies are each unique, the experience of working in the public service or receiving services from it should be the same across the government and across the country.
• This is why the federal public service has adopted a consistent hybrid work model that requires employees to work on site at least 2 or 3 days each week or 40–60% of their regular schedule. This model applies to the core public administration, and it is strongly recommended that separate agencies adopt a similar approach.
• To allow the federal public service to smoothly transition to hybrid work, a phased introduction began January 16, 2023, with full implementation by March 31, 2023.
• There will be a limited number of potential exceptions for specific circumstances. For example, departments may request approval to have certain functions performed remotely where there is clear enhancement in the services being provided to Canadians.
• In addition, exceptions can be granted for specific IT functions subject to recruitment and retention challenges, which are present across Canada in both private and public sectors.

If pressed on extensions:

• Following consultation with OCHRO, functions in certain call centres at IRCC and ESDC, as well as in the Pay Centre within PSPC have been given approval to continue teleworking for the next 12 months, while they assess the service benefits of a full-time teleworking environment.
• CRA’s call centre employees will continue teleworking for the next 12 months for the same reasons.

Background

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

TBS is addressing this Mandate Letter Commitment in part by addressing Employer-led policies to enable hybrid as a component of “flexible and equitable working arrangements”. Per the President of the Treasury Board, “hybrid is here to stay”. Additional measures to address how TBS, PCO, and the Central Service Providers (PSPC, SSC, PSC) will enable the Future of Work are being defined and will serve as the basis for future consultations. It is paramount that the Future of Work envisioned for the Public Service enables departments to fulfill their mandates, including improved service delivery for Canadians.  

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

In November 2021, updated Health Canada’s Public Service Occupational Health Program guidance allowed departments and agencies to begin gradually increasing occupancy and planning for re-entry into their workplaces.

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

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

On May 12, 2022, Health Canada’s PSOHP further updated its occupational health guidance to advise that departments and agencies could return to full building occupancy with appropriate use of workplace preventive practices.

In June 2022, 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 can best support our core purpose: serving Canadians.

As a follow-up to the Clerk’s message, in August 2022, the Chief Human Resources Officer requested information from organizations on their hybrid testing to-date. The information collected showed that most public servants were operating under a wide variety of hybrid models and there was a need for consistency in how hybrid work is applied.

As such, the federal public service is adopting a common hybrid work model that will see employees work on site at least 2–3 days each week, or 40–60% of their regular schedule. The Direction on prescribed presence in the workplace was published on December 15, 2022. To allow departments and employees to smoothly transition to a common hybrid model, a phased introduction began on January 16, 2023, with full implementation by March 31, 2023.

OCHRO continues to develop a plan for the future of work within the Public Service, which is not only about hybrid work, but a future-oriented plan to transform the public service. TBS and OCHRO are working to modernize people management practices including the common hybrid work model, but also talent management, skills and inclusion, how we organize work, and being digital and data driven.

Issue

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

Response

• We are currently negotiating with 26 out of 28 bargaining tables across the public service. Negotiations at many of these tables are moving towards positive results, and we have already signed an agreement with one bargaining agent that includes wage increases of more than 10% over four years.
• This past spring, four Public Service Alliance of Canada (PSAC) groups representing 120,000 public servants, declared impasse in negotiations. We have consistently stated that there are many areas for compromise, and the recently released Public Interest Commission Reports have echoed that view.
• That is why we’re happy to confirm that the PSAC will be returning to the bargaining table in April to resume negotiations with the government towards a settlement for its TC, EB, SV, and PA groups. These negotiations will be supported by a third-party mediator.
• We remain committed to reaching agreements with all bargaining agents that are fair to employees, mindful of today’s economic and fiscal context, and reasonable for Canadians.

Background

To date, twenty-six (26) of the twenty-eight (28) bargaining units in the core public administration have served notice to bargain for the 2021-2022 round of collective bargaining.  Eighteen (18) of these groups have opted for arbitration as their dispute resolution process, while eight (8) groups have chosen conciliation/strike.

Issue

The Government of Canada approved retroactive base pay increases for executives and certain other senior levels on April 14, 2022 and published the results of the Performance Management Program for Executives in the core public administration for the 2020- 2021 cycle on July 29, 2022.

Response

• Performance pay is an important part of executives’ compensation that helps deliver results for Canadians and supports the attraction and retention of talent.
• Performance pay must be re-earned every year and executives who do not meet performance expectations or cannot be assessed are not eligible for performance pay.
• Performance commitments for executives are based on performance measures specific to each executive’s role and responsibilities. Executives must deliver on these commitments while embodying the Key Leadership Competencies and the Values and Ethics Code for the Public Sector.
• The Government of Canada regularly reviews its compensation practices to ensure it positions itself to attract and retain talent within a competitive Canadian labour market.
• Incentive plans that reward executives for the delivery of expected results are common among Canadian private and public sector organizations.

If asked about performance pay being revoked:

• Executives whose performance does not meet expectations or cannot be assessed are not eligible for performance pay. Retroactive revisions of performance pay are also possible and determined by deputy heads and managed at the individual department level.

If asked about Performance Pay and linkages to objectives in Departmental Plans:

• Departmental plans set out broad, high-level targets for departments while performance targets for individual employees are set using specific criteria, which include management excellence and corporate objectives. 

Background

Issue

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

Response

• The Government of Canada continues efforts on many fronts to create a federal public service that sees our differences as our strength and fosters a deep sense of belonging among all public servants.
• The government has launched several initiatives, co-developed with equity‑seeking employee networks, to support departments in improving diversity and inclusion, including Mentorship Plus and the Mosaic Leadership Development Program, which help equity seeking employees advance to leadership roles.
• We are modernizing the self-identification questionnaire for public servants to allow the core public administration to measure the representation of more equity-seeking groups.
• In addition, the Public Service Employment Act was amended in 2021 to strengthen measures aimed at addressing potential bias and barriers in staffing.
• We continue to support the implementation of the Accessibility Strategy for the Public Service, and assist departments and agencies in meeting the requirements of the Canada Accessibility Act.
• We are working to ensure progress is made on our commitment to hire 5,000 people with disabilities in the public service by 2025.
• In addition to these efforts, Budget 2022 proposed $3.7 million over four years, starting in 2022–23, to establish a Mental Health Fund for Black federal public service employees.  

Background

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

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

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

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

OCHRO is also modernizing its self-identification questionnaire by modernizing the language, ensuring everyone is sees themselves, and in moving it online to a Treasury Board Application, making it convenient, portable and safe. The public service will be able to measure representation of equity-seeking groups over and above current employment equity groups. Launch is planned for early 2023. 

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

After almost 3 years of operation, CDI produced concrete results. Several enterprise-wide initiatives have been put in place, co-developed with equity-seeking employee networks, to address specific barriers. Examples include:

• The launch of the Mentorship Plus Program, which includes a sponsorship component that pairs members of under-represented groups with executives, enhancing traditional mentorship by including sponsorship, thus providing more equitable access to career development opportunities for all public servants
  • To date, there are 52 departments and agencies taking part in the Mentorship Plus program across the Federal Public Service.
• The launch of the Mosaic Leadership Development Program, intended to address key issues of under-representation in EX positions, which is one of the hardest barriers to overcome for under-represented groups. The first cohort saw the successful graduation of 38 diverse participants.
• Following the modification of the nomination criteria in 2020 to support cohort diversity, representation of all EE groups has increased in the Executive Leadership Development Program (ELDP). Representation in cohorts launched in 2022-23 was:
  • EX Cohort:  9% for Indigenous People, 48% for Visible Minorities and 12% for Persons with Disabilities.
  • ADM Cohort:  12% for Indigenous People, 40% for Visible Minorities and 4% for Persons with Disabilities.
• Talent Enablement Strategies were co-developed in partnership with Black and Indigenous executive networks, to increase representation in senior leadership roles. Those Strategies are being implemented through concrete actions, such as visibility initiatives highlighting Black and Indigenous executive talent.
• An assessment framework of the Talent Enablement Strategies is in development and will allow for quantitative and qualitative reporting of progress achieved.
• Inclusive talent renewal and succession planning activities are being conducted to enhance diverse representation of Assistant Deputy Ministers.
• Amplification of the voices of diverse employees through the Federal Speakers’ Forum for Diversity and Inclusion. The forum provides a platform for departments to reach out to a roster of speakers and tap into their rich repertoire of lived experience and poignant stories.
• Launch of the Maturity Model on Diversity and Inclusion self-assessment tool to support organizations in understanding their maturity in five dimensions of diversity and inclusion.

OCHRO has also worked closely with the department of Labour to support the Task Force on the Review of the Employment Equity Act. The Task Force plans to share its report with the Minister of Labour on February 28, 2023.

The Government of Canada has amended the Public Service Employment Act to address systemic barriers for equity-seeking groups. Theseamendments received Royal Assent on June 29, 2021 and reaffirm the importance of a diverse and inclusive workforce and strengthen provisions to address potential bias and barriers in staffing processes.

With these changes:

• All new or revised qualification standards must be evaluated for bias and barriers for members of equity-seeking groups.
• Permanent residents now have the same preference as Canadian Citizens when appointments are made through external advertised hiring processes.
• The design and application of assessment methods must include an evaluation of bias and barriers and reasonable efforts for mitigation (not yet in force).
• The Public Service Commission now has explicit authority to audit for bias and barriers that disadvantage members of equity-seeking groups.
• The Commission and deputy heads will have explicit authority to investigate bias and barriers for members of equity-seeking groups (not yet in force).

These amendments represent foundational work that will help departments take measures in their staffing actions to reduce barriers and encourage more inclusive recruitment practices.

Budget 2022 provided $3.7 million to the Treasury Board of Canada Secretariat to develop a mental health fund for black public service employees. TBS worked with Black employee networks to co-develop a broader action plan proposal, including the mental health fund but also measures to support the career advancement, training, sponsorship and educational opportunities of Black employees in the federal public service.

This work complements other measures taken to address systemic racism and barriers in the public service. These include the amendments to the Public Service Employment Act and initiatives such as Mentorship Plus, the Mosaic Leadership Development Program, and the publication of disaggregated data for multiple sub-groups, including Black employees, which give organizations a clear picture of the makeup of their workforce.

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

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

Issue

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

Response

• The Government is committed to promoting official languages and ensuring that the Official Languages Act reflects our changing society.
• The modernization of the Act, through Bill C-13, is an opportunity to strengthen access to services in both official languages across the country.
• Bill C-13 includes enhancements to address the challenges facing the French language and the concerns of official language minority communities, and will further improve our ability to serve Canadians in the official language of their choice.
• As part of the modernization of official languages, the government has proposed a series of measures to strengthen the bilingual capacity of the public service. This includes the development of a new second language training framework and the revision of second language requirements for bilingual supervisory positions in designated bilingual regions.

On the role of TBS:

• The Treasury Board Secretariat is responsible for the overall direction and coordination of Government of Canada policies and programs to ensure that Canadians receive federal services in the official language of their choice.
• Treasury Board will continue to ensure that language of work rights are respected in the federal public service.

Background

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

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

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

Damages

Overpayments

Issue

The Government filed a motion to dismiss a class action lawsuit which seeks damages on behalf of current and former Black public servants, as well as any Black individuals who have applied for positions in federal government departments and agencies, dating back to 1970. The Government is taking continued steps to address issues related to harassment and systemic discrimination in its institutions. 

Response

• The Government of Canada is working to create a diverse and inclusive public service, free from racism, harassment and discrimination, including:
  • Identifying ways to improve and strengthen its internal systems and processes;  
  • Developing, through upcoming consultations with an expert panel, a restorative engagement process where employees who have suffered racism, harassment and discrimination can share their personal accounts and lived experience in a safe, confidential space and contribute to systemic change;
  • Establishing a mental health fund for Black federal public servants; and
  • Reviewing systems and processes for addressing current and historical complaints.
• There are existing processes to deal with complaints or grievances related to harassment and discrimination in the public service and the Government’s response to the Thompson class action is consistent with the existing legal framework for complaints of this nature.

If pressed:

• Over the last several months, significant work was accomplished in the development phase of the project for the Mental Health Fund for Black federal public servants.  With this phase now complete, proposals are now moving through the Cabinet and Budget process.  Public servants seconded to TBS to work on these proposals have returned to their regular roles and organizations.

Background

The Attorney General of Canada is engaged in several employment-related discrimination and harassment class actions on behalf of a number of departments and agencies.

The broadest, largest, and most high-profile of these cases is Thompson et al v. HMK.  This claim seeks damages on behalf of current and former Black public servants and any Black individuals who have applied for jobs in the federal public service dating back to 1970 but were not successful due to their race.

The plaintiff group in the proposed Thompson class action sent a letter to the United Nations’ Office of the High Commissioner for Human Rights (OHCHR) setting out various allegations with respect to ongoing systemic anti-Black harassment and discrimination in the federal public service. Canada has not been advised of any advancements in this area.

The certification hearing in the Thompson case is scheduled to be heard in Federal Court in October 2023. As a result of intervening motions and as a reflection of the large evidentiary records, the certification hearing in Thompson was rescheduled by the Court for October 2023.

Issue

Since the beginning of the pandemic, the population of the federal public service has grown by over 35,000 employees.

Response

• The Government of Canada is committed to delivering quality services, programs and policies for Canadians.
• At the same time, we have set an ambitious agenda to address and advance important priorities, including climate change, reconciliation, inclusion and innovation.
• Deputy heads of federal organizations are responsible for building an appropriate workforce to fulfill their respective mandates. The size and composition of the public service fluctuates according to evolving priorities and needs.
• While the size of the federal public service has grown in recent years, relative to the Canadian population it remains comparable to the level it was in 2010.
• In addition, over the past decade, the percentage of government expenditures dedicated to personnel costs as a percentage of total government expenditures has generally remained the same.

Background

The size of the Public Service fluctuates in response to government priorities and program requirements, as well as increases in program funding in federal budgets.

The federal public service represented 0.86% of the Canadian population in 2022 and was 0.83% in 2010.

Managing hiring, talent and departures within organizations is the responsibility of deputy heads.

The mandates and activities of federal departments and agencies are as diverse as the people they serve. Deputy ministers each have the authority to determine their human resource needs at the departmental level.

Since 2011, the ratio of personnel expenditures as a percentage of total government expenditures by fiscal year has been relatively consistent ranging from a low of 11.7% in 2021 to a high of 17.1% in 2013. For fiscal year 2022 the ratio was 15.6%.

Issue

Certain Indigenous groups and stakeholder groups have called for, at various times, recognition of support for the use of Indigenous languages in the public service, and exemptions from official language requirements for Indigenous employees.

Response

• We recognize that speaking an Indigenous language is an asset to the government.
• The Government of Canada continues to work in partnership with Indigenous Peoples to support their efforts to reclaim, revitalize, maintain, and strengthen Indigenous languages in Canada.
• In particular, the Treasury Board of Canada Secretariat is participating in interdepartmental working groups with Indigenous employee networks and various stakeholders to examine the use of Indigenous languages by public servants in the delivery of services to Canadians.
• In line with our commitment to create an inclusive workplace for all, discussions are underway regarding specific challenges that Indigenous employees may face in meeting official language requirements.
• TBS is also working on an inclusive language training framework that is effective, flexible, accessible, and learner driven.

If pressed on bilingualism bonus and indigenous language training:

• The Government of Canada currently provides all non-executive staff in bilingual positions who meet the language requirements of their position a bilingualism bonus as specified in the Bilingualism Bonus Directive. While we are looking for ways to support Indigenous languages, there is no plan to extend bonuses to languages other than French and English.

Background

The Government of Canada is committed to achieving reconciliation with Indigenous peoples and building a renewed relationship based on the recognition of rights, respect, cooperation, and partnership. Reconciliation includes ensuring Indigenous public servants are represented, including in senior leadership positions, and that a deep sense of inclusion is fostered to support them.

The Department of Canadian Heritage (PCH) is mandated to work with First Nations, Inuit and the Métis Nation to implement the Indigenous Languages Act and ensure it is supported financially to preserve, promote and revitalize Indigenous languages in Canada. The Treasury Board of Canada Secretariat, Office of the Chief Human Resources Office (TBS-OCHRO) is engaged in activities to support Indigenous employees in the Federal Public Service.

The 2017 Many Voices, One Mind: a Pathway to Reconciliation report, which has been adopted as the government-wide strategy to achieve a workplace where Indigenous people seeking and living a public service career are welcomed, respected, supported, and fully included in all facets of Public Service life, asserted that “official language requirements can be a barrier to the advancement for Indigenous employees.”

TBS-OCHRO are participating in working groups to better understand and identify ways to address these challenges while creating a more inclusive workplace for Indigenous employees. The working groups aim to identify opportunities to address Indigenous representation in the workplace, as well as official languages barriers to employment and advancement of Indigenous employees, including challenges associated with learning a second official language.

The three working groups are the following:

• The Joint Committee on the Use of Indigenous Languages in the Federal Public Service is a joint employer-union committee mandated to examine the use of Indigenous languages in the public service, Indigenous language skills in the performance of employee duties, and considering the advantages that Indigenous language speakers bring to the public service. The committee is responsible to deliver a report on the results of two questionnaires sent to 25 participating organizations. The Joint Report on the use of Indigenous languages in the federal public service is expected to be released in March 2023.
• The Working Group on the Incentivization of Inuktut in the Federal Public Service in Nunavut is co-chaired by TBS-OCHRO and the Pilimmakasaivik Centre (CanNor), and is comprised of representatives from CanNor, TBS/OCHRO, the RCMP, Service Canada, Public Prosecution Service of Canada, and representatives from the Government of Nunavut (ad hoc), mandated to examine the use of Inuktut in Nunavut and propose options for its recognition and incentivization in the federal public service, and to support the Government of Canada’s efforts to meet obligations of article 23 of the Nunavut Agreement to increase Inuit participation in government employment to a representative level. TBS-OCHRO is leading this working group with the Pilimmaksaivik Federal Centre of Excellence for Inuit Employment in Nunavut, and Service Canada and the Public Prosecution Service of Canada are also members of this group.
• The Working Group for Amendments to the Official Language Requirements for Indigenous Employees is facilitated by the Knowledge Circle for Indigenous Inclusion, and comprised of representatives from TBS-OCHRO, the Indigenous Federal Employee Network (IFEN), the Indigenous Executive Network (IEXN) and the Public Service Commission. Its mandate is to explore policy changes and other approaches to address barriers to career advancement for Indigenous employees posed by official languages requirements. As an example, Employment and Social Development Canada is running a pilot project to assist Indigenous public servants acquire French. As part of developing a second language training framework, TBS-OCHRO is considering what type of adapted language training should be offered on a permanent basis to Indigenous learners.

Drivers include:

• The 2017 Many Voices, One Mind: a Pathway to Reconciliation report, which has been adopted as the government-wide strategy to achieve a workplace where Indigenous people seeking and living a Public Service career are welcomed, respected, supported, and fully included in all facets of Public Service life, asserted that “official language requirements can be a barrier to the advancement for Indigenous employees.”
• The Clerk’s Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service.
• During the last round of collective bargaining negotiations which concluded in October 2020, the Public Service Alliance of Canada (PSAC) tabled proposals regarding an Indigenous language allowance. While the proposals were not accepted, the parties agreed to incorporate a Memorandum of Understanding (MoU) to set up the Joint Committee on the use of Indigenous languages in the Program and Administrative Services (PA) and Education and Library Science (EB) collective agreements.

• The Indigenous Languages Act (the Act) aims to support the efforts of Indigenous Peoples to reclaim, revitalize, maintain, and strengthen Indigenous languages in Canada, and recognizes that the rights of Indigenous Peoples under Section 35 of the Constitution Act include rights related to Indigenous languages. The Act also contains provisions relating to federal institutions providing access to services in Indigenous languages by way of agreements or regulations if the institution has the capacity to do so and there is sufficient demand for access to those services in that language.

The Government of Canada has a specific legal obligation under Article 23 increase Inuit participation in government employment in Nunavut to a representative level.  A federal whole-of-government Inuit Employment Plan was developed to identify actions that would advance Inuit representation in the federal public service in Nunavut. These included removing HR barriers, the use and recognition of Inuktut in federal workplaces, and exploring the effectiveness of incentives for the use of Inuktut in the workplace.

Issue

Should Parliamentarians decide to conduct a statutory review of the Conflict of Interest Act, the President of the Treasury Board would be responsible for seeking Cabinet approval of, and tabling, any required Government Response, as well as sponsoring any bills to amend the Act.

Response

• The Government is committed to ensuring that federal public office holders carry out their duties with integrity and impartiality at all times.
• The Conflict of Interest Act sets out stringent conflict of interest and post-employment rules for public office holders.
• Under the Act, official office holders must abstain from participating in decisions that provide an opportunity to further private interests.
• The Government looks forward to hearing from Parliamentarians on this important matter, including any recommendations they may wish to bring forward to strengthen the Conflict of Interest Act.

Background

The Conflict of Interest Act establishes conflict of interest and post-employment rules for public office holders. Public office holders covered under the Act include ministers, ministerial staff, and Governor-in-Council appointees such as deputy heads. The Act plays an important role in maintaining public confidence in the integrity of public office holders and government decision-making. Although the Act does not assign responsibilities to a specific Minister, the President of the Treasury Board has been deemed as the minister responsible for the Conflict of Interest Act.

The Conflict of Interest and Ethics Commissioner administers the Conflict of Interest Act by establishing compliance measures, investigating possible contraventions of the Act, and providing advice to public office holders on their obligations. The Commissioner is an officer of Parliament. Officers of Parliament are independent from the Government and report directly to Parliament. On January 9, 2018, Mario Dion was appointed as the second Conflict of Interest and Ethics Commissioner for a term that expires January 8, 2025.

The Conflict of Interest Act came into force on July 9, 2007. It created, for the first time, a legislative regime governing the ethical conduct of public office holders. Prior to this date, public office holders were subject to non-statutory codes of conduct. TheAct required a one-time statutory review by a parliamentary committee, which was completed by the Standing Committee on Access to Information, Privacy and Ethics (ETHI) in 2014.

There are also safeguards in place to address potential or actual conflicts of interest within procurement. These include standard contract clauses, the requirement for all proposals to be reviewed through a conflict of interest lens, and the need for evaluators to recuse themselves for real or possible conflicts. In addition, Public Services and Procurement Canada has established a Code of Conduct for Procurement and an Integrity Regime for procurements conducted under its authority. Separately, the Directive on Transfer Payments also includes safeguards to ensure that no current or former public servant or public office holder can derive direct benefit from a funding agreement. 

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

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

Issue

The Lobbying Act is required to be reviewed by Parliament every five years and the last review was conducted in 2012. A review would be initiated by Parliament designating a Parliamentary Committee to review the Act. As the President of the Treasury Board maintains overall responsibility for the Act, the President would be responsible for seeking Cabinet approval of, and tabling, any required Government Response to a Committee report, as well as sponsoring any bills to amend the Act.

Response

• Lobbying is a legitimate part of our democratic system and is recognized as an important part of ensuring free and open access to government.
• The Lobbying Act ensures that the lobbying of federal office holders is conducted with the highest standards of integrity and transparency recognizes the need for Canadians to be able to know who is lobbying whom in government.
• The Act establishes the categories of office holders and the associated requirements under the Act.
• For Designated Public Office Holders, there is a 5-year ban on lobbying activities after leaving office. If employed by a corporation, lobbying activities must not be 20% or more of their duties.
• The government welcomes all opportunities to hear about how   transparency and accountability can be improved in lobbying activities.
• We look forward to hearing the views of Parliamentarians should they decide to conduct a review of the Lobbying Act.

Background

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

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

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

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

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

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

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

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

The Act establishes two categories of office holders:

• Public Office Holder (any officer or employee of Canada, including anyone occupying an elected or appointed position in the federal government);
• Designated Public Office Holder (includes Ministers and appointed staff, Members of Parliament, Senators, Deputy, Associate Deputy and Assistant Deputy Ministers, Order in Council appointees).

Designated Public Office Holders are subject to a 5-year ban on lobbying activities after leaving office. However, if employed by a corporation, they are permitted to lobby as long as those lobbying activities do not constitute a significant part (i.e., 20% or more) of their duties.

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 November 29, 2022, the President announced the review of the Public Servants Disclosure Protection Act (PSDPA). The announcement follows the tabling and publication of the 15th Annual Report on the Public Servants Disclosure Protection Act that took place on October 21, 2022. 

Response

• The government is committed to promoting a positive, respectful, and safe public sector culture that is grounded in values and ethics, and where public servants feel safe to disclose wrongdoing.
• Budget 2022 provided $2.4 million over five years, starting this year, to launch a review of the Public Servants Disclosure Protection Act.
• In November, I announced the establishment of the PSDPA Review Task Force, that will recommend amendments to the PSDPA, and changes to the administration and operation of the disclosure regime focussed on the protection of individuals involved in disclosing wrongdoing from acts of reprisal.
• The Task Force is composed of people who bring significant experience and diverse expertise in the field and is expected to take 12 to 18 months to complete the review.
• The Task Force will conduct wide consultations and invite input from a range of stakeholders to ensure a variety of experiences related to the federal whistleblower regime are considered. I look forward to receiving and disseminating the Task Force’s report of their recommendations for improvements to the Act.

If questioned on the government’s abstention on C-290:

Our government would like to allow the Task Force to complete its work before moving ahead with amendments to the Public Servants Disclosure Protection Act. This will ensure that the changes are based on the most current and comprehensive analysis available.

Background

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

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

On February 17, 2021, the Government Operations Committee adopted a motion to readopt the 2017 report and request a government response. Since Parliament was dissolved prior to a government response being tabled, there was no longer a requirement for a response.

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

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

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

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

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

In June 2022, Private Members Bill (PMB) 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. As of February 15, 2023, Bill C-290 passed Second Reading in the House of Commons and has been referred to OGGO for consideration.

On October 20, 2022, we tabled the Annual Report on the Public Servants Disclosure Protection Act, showing that in 2021-2022, public sector organizations received more enquiries and more allegations of wrongdoing than in any of the previous five years. In that year, 194 public servants made 178 internal disclosures containing 381 allegations of wrongdoing, a significantly higher number than the average 235 of the previous five years. This includes:

• 50% serious breach of conduct
• 19% gross mismanagement in the public sector
• 8% misuse of public funds

We announced the establishment of the PSDPA 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, Senior Officers for Internal Disclosure, and bargaining agent representatives. The Task Force is beginning its work in January 2023, with the review expected to take approximately 12 to 18 months to complete.

The Office of the Chief Human Resources Officer is developing a project plan for research and stakeholder consultations with the budget allocation of $2.4 million over five years received in Budget 2022.

This review will build on the work that OGGO undertook five years ago and the recommendations from the 2017 report with research on the latest developments in whistleblowing in other jurisdictions and current input from stakeholders, including views expressed during Parliamentary consideration of Bill C-290 An Act to amend the Public Servants Disclosure Protection Act, introduced by Bloc Québécois MP Jean-Denis Garon.

Issue

What are the mandate commitments for the President of the Treasury Board?

Response

• As President of the Treasury Board, I am committed to providing ongoing leadership to help advance the Government’s agenda and ensure that the Government continues to meet the challenges of today and tomorrow.
• My mandate commitments span a wide range of government priorities, including fighting climate change, enhancing digital services for Canadians, and strengthening the competitiveness of Canadian businesses.
• These commitments are grounded in the goals of the government to improve services and deliver results for Canadians.

Background

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

• Equity, diversity, inclusion in the federal public service;
• Digital government;
• Greening government;
• Government procurement;
• Strengthening and modernizing the public service for the twenty-first century; and
• Regulatory Modernization.

The commitments include leading whole-of-government initiatives aimed at delivering improved services and results for Canadians, including:

• “Continuing leadership to update and replace outdated IT systems and modernize the way government delivers benefits and services to Canadians”
• “Supporting the Canadian Digital Service in accelerating and expanding the use of their services across government, with an aim of improving the digital experience for Canadians, including through increasing the number of digitally-accessible government services"
• “Working towards a common and secure approach for a trusted digital identity platform to support seamless service delivery to Canadians across the country”
• “Bringing forward a coherent and coordinated plan for the future of work within the Public Service, including developing flexible and equitable working arrangements.”
• “Continue leading our regulatory reform efforts in collaboration with your Cabinet colleagues to improve transparency, reduce administrative burden and lead our efforts to harmonize regulations that maintain high safety standards and improve the competitiveness of Canadian businesses.”
• “Ensure government policy continues to be developed through an intersectional lens, is reflective of the needs and aspirations of Canadians and supports our path to net-zero through:
  • Continuing to refine and strengthen the quality of life framework to ensure that we achieve long-term outcomes that benefit people, and that progress towards those aims is rigorously reported;
  • Working with the Minister of Environment and Climate Change on the application of a climate lens to ensure climate adaptation and mitigation considerations are integrated throughout federal government decision-making; and
  • Supporting the Minister for Women and Gender Equality and Youth in the evaluation process of GBA Plus with the goal of enhancing the framing and parameters of this analytical tool and with particular attention to the intersectional analysis of race, indigeneity, rurality, disability and sexual identity, among other characteristics.”

The 2022 Fall Economic Statement included support for key areas of Treasury Board responsibility, such as:

• Government of Canada human resources management ($68 million over five years, from 2023-24 to 2027-28);
• modern and reliable Government of Canada information technology infrastructure and services ($51 million for 2022-23);
• extending support for regulatory modernization ($12 million over three years, from 2022-23 to 2024-25); and
• increasing bilingual capacity in the public service ($2 million over two years, from 2022-23 to 2023-24).  

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

• the August 2022 launch of the Government of Canada’s Digital Ambition 2022, which provides a clear, long-term strategic vision for the Government of Canada to advance digital service delivery, cyber security, talent recruitment, and privacy; and
• the November 2022 announcement of the Public Servants Disclosure Protection Act review task force, which will consider opportunities to enhance the federal disclosure process and strengthen protections and supports for public servants who come forward to disclose wrongdoing.

Issue

The Government is committed to continue to lead our regulatory reform efforts to improve transparency, reduce administrative burden and lead efforts to harmonize regulations that maintain high safety standards and improve the competitiveness of Canadian businesses. Key activities include continuing to control the growth of administrative burden of regulations on Canadian businesses, seeing Bill S‑6, An Act respecting regulatory modernization, through Parliament, and advancing the third round of Targeted Regulatory Reviews.

Response

• The Government of Canada is committed to ensuring that federal regulations evolve with changing technologies and reflect current business realities, while continuing to protect Canadian’s health, safety, and the environment.
• The Government is also committed to controlling the administrative burden that regulations impose on Canadian businesses. My department recently published the Report on the internal review of the Red Tape Reduction Act, which found that the ‘one for one rule’ is working and that the Red Tape Reduction Act, is achieving its objectives in controlling the growth of administrative burden.
• In 2022, the Government introduced Bill S‑6, An Act respecting regulatory modernization, to reduce regulatory burden on Canadians. Bill S‑6 proposes 45 changes to 28 acts, which address issues raised by businesses and Canadians.
• Currently the Government’s third round of Targeted Regulatory Reviews is focused on the two themes of Blue Economy and Supply Chains. I invite Canadians, businesses and other stakeholders to contribute to Blue Economy Regulatory Review public consultations by March 17, 2023.

Background

Red Tape Reduction Act (RTRA) – In 2015, Canada became the first country in the world to legislate a requirement to limit growth of administrative burden once the RTRA came into force, via the “one for one rule”. Whenever a regulatory change imposes new administrative burden costs on businesses, this administrative burden must be offset with a corresponding decrease dollar-for-dollar and a regulation must be repealed.

The RTRA requires a review of the Act five years after coming into force. The review, launched in 2020 and a report issued in 2022, found that the ‘one for one rule’ operates as designed and the Actoverall achieves its goals. However, it showed the limits of the rule and that we should:

• Promote the ongoing review of regulatory stock to ensure regulations remain relevant;
• Consider broadening the scope of the one-for-one rule beyond business to cover administrative burden on individuals and organizations; and
• Explore ways to address cumulative regulatory burden.

Annual Regulatory Modernization Bill (ARMB) – In 2018, the ARMB was announced to ensure that Canada’s regulatory system continues to adapt to changing technologies and reflects the realities of Canadian businesses. Key feedback expressed by business stakeholders at multiple forums included having a regularized mechanism in place to address legislative irritants, which is critical to ensuring the regulatory system stays relevant. Regulations provide support to laws, passed by Parliament, and are enforceable by law. Bill S‑6 modifies legislation, not regulations.

• First ARMB – The first ARMB passed as part of the Budget Implementation Act, 2019, No 1, and modified 12 laws that digitized paper-based processes, enabled innovation through regulatory sandboxes, and made changes in consideration of zero-emission vehicles.
• Second ARMB – On March 31, 2022, the Government introduced S-6 in the Senate, which was studied by seven Senate committees, with the Senate Standing Committee on Banking Trade and Commerce (BANC) playing the leading role. Senators took a particular interest in engagement with stakeholders and posed questions on matters raised by witnesses, which, at times, fell outside the scope of S-6. It passed Third Reading in the Senate on June 20, 2022, and subsequently passed First Reading in the House of Commons on June 22, 2022.

Targeted Regulatory Reviews (TRR) – TRR examine existing regulations and regulatory practices and identify novel regulatory approaches in order to support economic growth and innovation. Stakeholder engagement is central to the TRR and feedback is sought on ways to enable more agility, transparency, and responsiveness resulting in benefits for all Canadians. These Reviews lead to the development of plans of actions called Regulatory Roadmaps.

• Round 1 (2018) – Focused on three high-growth sectors: agri-food and aquaculture, health and biosciences, as well as transportation and infrastructure.
• Round 2 (2019) – Focused on three important sectors: clean technology, digitalization and technology neutrality, and international standards.
• Round 3 (2022 – In progress) – Focus on the blue economy and supply chains.

Issue

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

Response

• The Government of Canada, like every other government and private sector organization in the world, faces ongoing and persistent cyber threats.
• The government has systems and tools in place to monitor, detect and investigate potential threats, and takes active measures to address and neutralize them.
• Together, the Treasury Board of Canada Secretariat, Shared Services Canada, and the Communications Security Establishment work with departments to ensure the government’s cyber security is strong and effective.
• The Government of Canada Cyber Security Event Management Plan (GC CSEMP) was recently updated to reflect lessons learned from cyber simulation exercises and recent cyber incidents which impacted the GC.

Background

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

Budget 2022 provided $875.2 million over five years, beginning in 2022-23, and $238.2 million ongoing for additional measures to address the rapidly evolving cyber threat landscape. These measures include:

• $263.9 million over five years, starting in 2022-23, and $96.5 million ongoing to enhance the Communications Security Establishment’s (CSE)abilities to launch cyber operations to prevent and defend against cyber attacks;
• $180.3 million over five years, starting in 2022-23, and $40.6 million ongoing to enhance CSE’s abilities to prevent and respond to cyber attacks on critical infrastructure;
• $178.7 million over five years, starting in 2022-23, and $39.5 million ongoing to expand cyber security protection for small departments, agencies, and Crown corporations; and,
• $252.3 million over five years, starting in 2022-23, and $61.7 million ongoing for CSE to make critical government systems more resilient to cyber incidents.

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

TBS maintains the GC Cyber Security Event Management Plan (GC CSEMP). The GC CSEMP is the whole-of-government incident response plan providing an operational framework which outlines the stakeholders and actions required to ensure that cyber security events are addressed in a consistent, coordinated, and timely fashion across the government. The plan is applicable to all departments subject to the Policy on Government Security. The GC CSEMP was recently updated in November 2022 to reflect significant lessons learned from cyber simulation exercises and recent cyber incidents which impacted the GC, since the last update in April 2020. To ensure that the GC CSEMP is up-to-date and effective, the plan is tested regularly and reviewed on an annual basis, and updated if changes are warranted. The most recent cyber simulation took place on February 15, 2023. An after-action report is currently being drafted.

Issue

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

Response

• The Government of Canada takes its responsibility to protect the privacy of Canadians very seriously.
• The Treasury Board of Canada Secretariat supports institutions in managing their information holdings through a suite of policies and directives.
• These policies and directives provide guidance on the management of personal information and data, and ensure that assessments are undertaken on the planned collection and use of personal information.
• All material privacy breaches must be reported to TBS and the Office of the Privacy Commissioner to ensure that appropriate action is taken to respond to the situation and prevent future occurrences.
• Guidance was updated in October 2022, to strengthen the government’s prevention and management of privacy breaches.
• As the government continues its transformation to a more digital government, we will continue to ensure that our approach and actions are guided by respect for the privacy of Canadians.

Background

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

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

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

In October 2022, the policy instruments related to privacy breaches were updated to further strengthen government’s prevention and management of privacy breaches. 

The Policy on Privacy Protection requires that federal institutions establish plans and procedures for addressing any privacy breaches in their institution. The Policy also requires institutions to report material privacy breaches to TBS and the Office of the Privacy Commissioner. Material privacy breaches involve sensitive personal information or data (for example, medical or financial information or data) that could cause a real risk of significant harm to the individual. 

TBS records and reviews the breach reports and identifies where additional guidance or training may be required. Where warranted, based on scope and sensitivity, TBS works with the institution on its response and mitigation efforts.

The Office of the Privacy Commissioner determines its response to a breach report based on a risk assessment. The approach ranges from an informal review through to a full investigation.

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

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

Issue

With the conclusion of the Access to Information Review and the final report tabled in Parliament, key actions are being taken to improve how Canadians experience access to information (ATI) systems and processes.   

Response

• The Government is committed to openness and transparency and has taken action on several fronts to enhance access to information.
• This includes enhancing proactive disclosure, increasing operational capacity of institutions that fall under the Access to Information Act, and implementing digital solutions such as the ATIP Online portal.
• Work underway will make it easier for Canadians and Indigenous People have timely access to information held by the government.
• In addition, the Government recently completed a review of Access to Information, which included broad consultation with Canadians, Indigenous peoples, experts, and key stakeholder.
• Feedback gathered through this review will inform additional steps to further improve access to information. In addition, we welcome the views of Parliament as a key input into this work.

Background

The review of the Access to Information Act (ATIA) was launched to offer an opportunity to have an open exchange on making ATI systems and processes more resilient. In December 2022, the President of Treasury Board submitted a report to Parliament and published an Indigenous-specific ‘What We Heard’ report on engagement undertaken as part of the review of access to information.

The report to Parliament was organized around three key strategic outcomes: 1) Improving Service to Canadians, 2) Enhancing Trust and Transparency and 3) Advancing Reconciliation with Indigenous Peoples. These strategic outcomes will inform further work to help the GC create a stronger, more robust, and more reliable ATI system for all Canadians and Indigenous Peoples.

Given the importance of this review, the Government consulted broadly with Canadians, Indigenous peoples, experts, and key stakeholders whose views and experiences will inform next steps. This public engagement process included a call for submissions, a user-experience survey, and thematic workshops. In a separate track of engagement, TBS has also been engaging with Indigenous groups and representatives to better accommodate their unique perspectives and specific needs relating to access to information.

The President of the Treasury Board invited National Indigenous Organizations (NIOs) and 36 Modern-Treaty and self-government holders to participate in the review. At the conclusion of the Review, TBS held bilateral discussions and received written submissions from several Indigenous groups and governments, as summarized in the Indigenous-specific What We Heard Report (WWHR). In the spirit of Government of Canada’s commitments to reconciliation and the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act, our engagement with Indigenous peoples remains ongoing.

As part of the review process and, as discussed in the report, TBS’s Internal Audit and Evaluation Bureau (IAEB) assessed the efficiency and effectiveness of proactive publication across the GC which includes disclosures related to information on contracts. The evaluation noted a need for institutions to be monitoring performance against their obligations and examining the use and usefulness of proactively published information. Leveraging the findings of the evaluation, the review did consider improvements to proactive publications as a whole and concluded that examining ways to engage with users to identify high demand and high value information, as well as developing improved accountability mechanisms would allow the Government of Canada to improve the quality of proactively published information.

While the first Review is concluded, the Government’s work to improve access to information continues. TBS officials have been continuously advancing initiatives targeting improvements to the ATI regime. These improvements target the three strategic outcomes outlined in the report to Parliament notably:

• Maintaining engagement with Indigenous organizations and governing bodies;
• Updating the TBS Manual for ATIP practitioners to guide and standardize ATIP community practices;
• Onboarding institutions that fall under the ATIA onto the ATIP Online portal, where requests can now be submitted to 228 institutions and organizations;
• Reviewing the approach to the annual statistical reporting required under the ATIA to better identify systemic issues; and
• Supporting the recruitment, retention, learning and networking of the ATIP community through the continued work of TBS’ ATIP Community Development Office.

Regular reviews will ensure Canada’s access to information regime stays in step with future advances to continue to provide open, accessible, and trustworthy information to Canadians in this digital age.  

Issue

The Government is working towards a national approach to digital credentials to support seamless service delivery to Canadians across the country.

Response

• As part of its commitment to providing Canadians convenient and secure online services, the Government is exploring a national approach to digital credentials. This would allow for digital versions of a person’s credentials to be saved to a personal device, like a phone or a laptop.
• We are in the early stages of exploring this national approach. Initial engagement with key stakeholders, including provinces, territories, and key economic sectors, has begun.
• These conversations will ensure that a diverse range of Canadians are engaged and given the opportunity to have their voices heard.
• Digital credentials would be voluntary and could provide secure and convenient access to services like social benefits, tax filing, or accessing health records.
• Importantly, any personal information used with digital credentials will be protected as per the Privacy Act. Canadians control when and how their information is used.
• As well, this approach would make use of existing credentials rather than creating a new national identity program and provinces and territories will continue to have jurisdiction in providing your license and health cards.

Background

The pandemic has exposed serious deficiencies in how we deliver services and conduct transactions across government and the economy. The pictures of Canadians standing in line for days to obtain passports or travel by air are just the latest symptoms of outdated and analogue processes. Currently, many services require Canadians to either visit a service location, mail, or scan their paper documents, which can include personal or sensitive information. The underlying challenge is that these processes are costly, slow, and are not always possible for people in Canada. This is the case for a wide range of public and private sector services, including social benefits, financial services, and other regulated services provided by small and medium enterprises, as well as transactions, such as buying a home or exporting a product.

There are more than 50 separate online systems for individuals to log into, with federal organizations verifying identity information manually and independently. Canadians do not understand why they are being asked to provide their information to each department repeatedly and must wait days to access each service. Departments are investing in redundant systems and processes to verify information and addressing fraud and security vulnerabilities independently. To address these challenges, the Government is establishing a modern solution, Sign-In Canada, that allows individuals to log-in and verify their identities to access all federal programs and services. Establishing a modern enterprise-wide sign-in solution reduces duplication of efforts for verifying identities, for Canadians, businesses, and GC departments, which ultimately allows departments to focus on improving their service experience for all end users.

The Government is also exploring a national approach to digital credentials to accelerate the shift to digital by enabling the issuance of digital versions of credentials directly to individuals and businesses that could be held in a digital wallet on their personal device. For example, in the physical world, credentials such as your driver’s licence or health card can allow you to provide information about who you are, what you can do, or what services you can access; digital credentials would be the digital equivalent of these documents. Digital credentials would enable safer and more efficient service to individuals and organizations, including obtaining social benefits (e.g., maternity leave, Employment Insurance, Canadian Pension Plan), filing taxes, applying for a job, accessing health records, opening a bank account, or buying a home. Individuals would be in control of what information they share and with whom. There would be no centralized database as information would be held directly by Canadians, just as they hold their physical documents.

The Government of Canada has been working in the open in various multilateral forums with like-minded countries on the topic of digital government, including digital credentials, such as Digital Nations (since 2014), Agile Nations (since 2020), the European Commission (since 2020), the Organization for Economic Co-operation and Development OECD (since 2017), and the G20 (2021).

Digital technology is changing our economy and our society—the way we access services, work, and connect with each other. With more of our interactions taking place online than ever before, the need for faster, simpler, and safer digital services is growing. This is why enabling the use of digital credentials is so important. It will serve as a key foundation of digital government and the digital economy. It will act as the roads and bridges in the country’s digital infrastructure.

The Government is in the planning stages of making it quicker and easier for individuals and businesses to obtain and deliver digital services using safe and secure digital credentials. This will be done in collaboration with Canadian jurisdictions and key economic sectors. The Government has begun conducting consultations with key stakeholders to design and test the national approach for digital credentials, including the testing of key uses. A broad approach will ensure that a diverse range of Canadians, including Indigenous communities, persons with disabilities and hard to reach Canadians are engaged, and given the opportunity to have their voices heard and their needs taken into consideration. Consultations will ensure that we are working to build a national approach to digital credentials that puts security and privacy and inclusion at the forefront.

The use of digital credentials would be optional and would offer Canadians the ability to provide electronic equivalents of documents they already have and are required to conduct online service transactions. The Government is looking to leverage new technology to meet this need, while ensuring that trust is maintained, and privacy is protected. when interacting with government in Canada. Over time, digital credentials could be used by other public and private sector services.  

Issue

In November 2022, the Auditor General of Canada tabled four performance reports on government services and programs in the House of Commons, one of which was focused on cyber security of personal information in the cloud.

The Treasury Board of Canada Secretariat (TBS) has developed a management response and action plan, in collaboration with Communications Security Establishment (CSE), Public Services and Procurement Canada (PSPC) and Shared Services Canada (SSC), to address the recommendations from the report.

Response

• The Government of Canada is committed to protecting the information of Canadians.
• This includes strong and effective safeguards for information stored in the cloud.
• We welcome the Auditor General’s findings on how these safeguards can be better applied and documented.
• As part of this work, Treasury Board of Canada Secretariat published new direction on cloud adoption providing increased support and alignment in government’s transition to cloud use while maintaining a strong security posture.
• The Treasury Board of Canada Secretariat, along with our partners, Public Services and Procurement Canada, Shared Services Canada, and the Communications Security Establishment will continue to consistently apply, document and monitor cloud security control safeguards.

Background

On November 15, 2022, the Auditor General of Canada tabled a performance audit report focused on Cyber Security of Personal Information in the Cloud.

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 our professional public service.
• Although contracted service expenditures have increased over the past decade, the Government’s spending in this area as a percentage of total expenditures has remained relatively consistent (11.1% in 2011 vs 11.7% in 2022).
• There are rules and requirements in place at various levels within government to support fairness, openness, and transparency in federal procurement.
• These are regularly reviewed and enhanced where necessary.
• In line with this approach, Minister Jaczek and I are overseeing a review of contracts with McKinsey. Federal departments, through their internal audit teams, are assessing compliance with Treasury Board policy and departmental internal control frameworks.
• As an additional level of verification, we have asked the Procurement Ombudsman to provide a third-party assessment of compliance with our contracting rules.
• Following this review, and based on any gaps identified, TBS will determine if there are opportunities to enhance procurement rules, requirements and processes.

Background

Government spending on External Professional Services (EPS) – a broad category that includes everything from nursing to engineering to research to management consulting – has increased from $8.5B in 2015-16 to $13.5B in 2021-22, for a total increase of $5.0B mainly related to four major types of professional services:

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

While absolute spending has increased, the proportion of spending on EPS has remained relatively consistent when compared to overall expenditures.  Specifically, total departmental EPS 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%.

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

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, cybersecurity, data, and many more. It also includes leaders who guide and sponsor digital initiatives. The Strategy is currently under development and will be forthcoming later in 2023.

Issue

The OGGO Committee is currently undertaking a study of supplier diversity.

Response

• The Government of Canada is committed to helping more businesses get involved in federal procurement to build a more inclusive economy.
• Through the Directive on the Management of Procurement, we are taking concrete steps to increase the participation of underrepresented groups in government procurements.
• The Directive includes several provisions to support supplier diversity and remove barriers for suppliers.
• The Treasury Board Secretariat is also working closely with Public Services and Procurement Canada and Indigenous Services Canada to support the government’s commitment to award a minimum of 5% of federal contracts to businesses managed and led by Indigenous Peoples by 2025.

Background

Supplier diversity and social procurement leverages government purchasing power towards socio-economic objectives such as enhancing market competition; job creation; economic and social benefits of procuring from small and medium enterprises (SMEs), local industry, social enterprises, and not-for-profit organizations; encouraging socially responsible business conduct; as well as advancing diversity and inclusion.

Under the Treasury Board Directive on the Management of Procurement, it is expected that procurements are managed in a manner that enables operational outcomes, demonstrates sound stewardship and best value. Best value considers not just the price, but also non-financial outcomes such as social, economic, Indigenous, and environmental returns. The Directive on the Management of Procurement, which fully came into effect Spring 2022, also supports supplier diversity by setting expectations that departments:

• Leverage procurement to provide socio-economic and environmental benefits;
• Unbundle requirements so that instead of a large contract with a single supplier, contracts can be broken down into smaller pieces which allows for procurements to better align with the capacity of smaller and more diverse suppliers to respond;
• Before launching a procurement, engaging with industry early and conducting market analysis to gain deeper understanding of industry capacity, opportunities, and barriers. By doing so industry is engaged and the government has a better understanding of who has the capacity to deliver and concurrently allows those companies to understand what the government wants;
• Make contracts simpler and easier to understand, as well as limit the number of mandatory technical criteria. SMEs have identified the complexity of the procurement process and   long complex technical requirements as barriers to participation as they increase the risk of mistakes in bidding (resulting in disqualification) and often gear the procurement to the large firms who have the capability to meet the governments demands.

In addition to the above Treasury Board Secretariat supports increasing indigenous procurement through specific initiatives:

• 5% Indigenous Procurement Target: in order to increase economic prosperity for Indigenous businesses, the Government of Canada has committed to award a minimum of 5% of the annual value of contracts to Indigenous businesses.
  • As of April 2022, the TB Directive on the Management of Procurement was updated to provide guidance on how to measure and report on progress towards the 5% target.
  • A phased onboarding approach has been developed for departments and agencies to meet the target by the end of Fiscal Year 2024-2025. As of now, 32 departments are expected to meet the target in 2022-23. The remaining departments are expected to meet the target in 2023-24 (20 departments) and 2024-25 (43 departments).
• Nunavut Directive: In support of obligations under Article 24 of the Nunavut Agreement, TBS has established a Directive that aims to increase participation by Inuit firms in business opportunities to support the Nunavut Settlement Area (NSA) economy, improve Inuit firm capacity to compete for government contracts and leases in the NSA, and employ Inuit at a representative level in the NSA workforce.

In support of these measures, TBS has worked with the Canada School of Public Service to deliver a mandatory training course on Indigenous Considerations in Procurement, which provides a common understanding of procuring from Indigenous businesses within the Government of Canada. New employees are required to complete the course within 3 months of joining the functional procurement community.