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MINUTES OF PROCEEDINGS


TUESDAY, FEBRUARY 4, 1997
(Meeting No. 38)
The Evidence for this meeting is not available because it was held in camera.

[Text]

The Standing Committee on Public Accounts met in camera at 3:38 o'clock p.m. this day, in Room 269, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Roger Gallaway, Ivan Grose, Michel Guimond, Charles Hubbard, Rey Pagtakhan and Yves Rocheleau.

Acting Members present: Marlene Catterall for Alex Shepherd, Bob Mills for John Williams and Pat O'Brien for Denis Paradis.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

In accordance with Standing Order 106(2), it was agreed,--That Ivan Grose be elected Vice-Chair of the Committee.

In accordance with its mandate under Standing Order 108(3) (d), the Committee proceeded to the consideration of Chapter 11 (Revenue Canada--Combatting Income Tax Avoidance) of the May 1996 Report of the Auditor General.

The Committee proceeded to the consideration of a Draft Report respecting Chapter 11 and proposed revisions thereto.

It was agreed,--That the Draft Report, as amended, be concurred in.

It was agreed,--That the Chair be authorized to make such grammatical and editorial changes to the Report as may be necessary without changing the substance of the Report.

It was ordered,--That the Report, as amended, be presented by the Chair of the Committee to the House of Commons.

The Committee proceeded to the consideration of the future business of the Committee.

It was agreed,--That the meeting scheduled for February 18, 1997 at 3:30 o'clock p.m. be rescheduled to February 20, 1997 at 11:00 o'clock a.m.

At 4:31 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, FEBRUARY 11, 1997
(Meeting No. 39)

The Standing Committee on Public Accounts met at 3:40 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Roger Gallaway, Ivan Grose, Michel Guimond, Charles Hubbard, Denis Paradis, Rey Pagtakhan and Jim Silye.

Acting Member present: Pierre Brien for Pierre de Savoye.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Shahid Minto, Assistant Auditor General. From the Secretariat of the Treasury Board of Canada: Al Clayton, Executive Director, Bureau of Real Property and Materiel, Government Operations Sector. From the Department of the National Defence: Louise Fréchette, Deputy Minister.

In accordance with its mandate under Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 23 of the November 1996 Report of the Auditor General (Materiel Management in the Federal Government).

L. Denis Desautels, Al Clayton and Louise Fréchette made opening statements and, with the other witnesses, answered questions.

It was agreed,--That the questioning of the witnesses continue tomorrow afternoon from 3:30 o'clock p.m. to 4:15 o'clock p.m.

At 5:16 o'clock p.m., the Committee adjourned to the call of the Chair.


WEDNESDAY, FEBRUARY 12, 1997
(Meeting No. 40)

The Standing Committee on Public Accounts met at 3:44 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Ivan Grose, Michel Guimond, Charles Hubbard, Rey Pagtakhan, Yves Rocheleau, Alex Shepherd and Jim Silye.

Acting Member present: Dianne Brushett for Sue Barnes.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Shahid Minto, Assistant Auditor General; Henno Moenting, Principal, Audit Operations; Jim Blain, Director, Audit Operations. From the Secretariat of the Treasury Board of Canada: Al Clayton, Executive Director, Bureau of Real Property and Materiel, Government Operations Sector. From the Department of the National Defence: Louise Fréchette, Deputy Minister; P.L. Lagueux, Assistant Deputy Minister (Materiel). From the Library of Parliament: Michelle Salvail, Research Officer, Research Branch.

Pursuant to Standing Order 108(3)(d), the Committee resumed consideration of Chapter 23 of the November 1996 Report of the Auditor General (Materiel Management in the Federal Government) (See Minutes of Proceedings of Tuesday, February 11, 1997, Meeting No. 39).

Louise Fréchette, P.L. Lagueux, L. Denis Desautels, Shadid Minto and Al Clayton answered questions.

At 4:44 o'clock p.m., the sitting was suspended.

At 4:50 o'clock p.m., the sitting resumed in camera.

Pursuant to Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 26 of the November 1996 Report of the Auditor General (Canada Infrastructure Works Program--Lessons Learned).

Michelle Salvail, Henno Moenting and Jim Blain briefed the Committee respecting Chapter 26.

At 5:07 o'clock p.m., the Committee adjourned to the call of the Chair.


THURSDAY, FEBRUARY 20, 1997
(Meeting No. 41)

The Standing Committee on Public Accounts met at 11:19 o'clock a.m. this day, in Room 371, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Roger Gallaway, Michel Guimond, Charles Hubbard, Denis Paradis and Yves Rocheleau.

Acting Members present: Patrick Gagnon for Ivan Grose, and John Loney for Rey Pagtakhan.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Maria Barrados, Assistant Auditor General. From the Secretariat of the Treasury Board of Canada: Alan Winberg, Assistant Secretary, Government Review and Quality Services Sector; Paul Thibault, Executive Director, Infrastructure Works; Tom Scott, Senior Advisor, Programs, Infrastructure Works; Hani Mokhtar, Senior Advisor, Policy, Infrastructure Works. From the Federal Office of Regional Development (Québec): Guy MacKenzie, Assistant Deputy Minister (Operations).

In accordance with its mandate under Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 26 of the November 1996 Report of the Auditor General (Canada Infrastructure Works Program--Lessons Learned).

L. Denis Desautels, Paul Thibault, Guy MacKenzie and Maria Barrados made opening statements and, with the other witnesses, answered questions.

At 1:02 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, MARCH 4, 1997
(Meeting No. 42)

The Standing Committee on Public Accounts met in a televised session at 3:35 o'clock p.m. this day, in Room 253-D, Centre Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Ivan Grose, Michel Guimond, Charles Hubbard, Rey Pagtakhan and Jim Silye.

Acting Member present: Eleni Bakopanos for Sue Barnes.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Peter Kasurak, Principal, Audit Operations. From the Department of National Defence: Louise Fréchette, Deputy Minister; Vice-Admiral L.E. Murray, Acting Chief of Defence Staff; Robert Emond, Assistant Deputy Minister, Finance and Services; Lieutenant-General A.M. De Quetteville, Commander, Air Command; John Adams, Assistant Deputy Minister, Infrastructure and Environment.

In accordance with its mandate under Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 34 of the November 1996 Report of the Auditor General (National Defence--Support Productivity).

Denis Desautels, Peter Kasurak, Louise Fréchette et Vice-Admiral L.E. Murray made opening statements and, with the other witnesses, answered questions.

At 5:33 o'clock p.m., the Committee adjourned to the call of the Chair.


WEDNESDAY, MARCH 5, 1997
(Meeting No. 43)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 3:36 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Ivan Grose, Michel Guimond, Charles Hubbard, Rey Pagtakhan, Yves Rocheleau and Jim Silye.

Acting Member present: Eleni Bakopanos for Sue Barnes.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

Witnesses: From the Library of Parliament: Michelle Salvail, Research Officer, Research Branch. From the Office of the Auditor General of Canada: Eric Anttila, Principal, Audit Operations; Hugh McRoberts, Principal, Audit Operations.

In accordance with its mandate under Standing Order 108(3)(d), by unanimous consent, the Committee proceeded to the consideration of Chapter 24 of the November 1996 Report of the Auditor General (Systems under Development--Getting Results).

Michelle Salvail briefed the Committee respecting Chapter 24 and, with the other witnesses, answered questions.

The Committee proceeded to the consideration of a Draft Report respecting Chapter 14 of the September 1996 Report of the Auditor General (Service Quality).

The Committee considered the Draft Report and proposed revisions thereto.

At 4:55 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, MARCH 11, 1997
(Meeting No. 44)

The Standing Committee on Public Accounts met in a televised session at 3:35 o'clock p.m. this day, in Room 253-D, Centre Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Ivan Grose, Michel Guimond, Charles Hubbard, Denis Paradis and Alex Shepherd.

Acting Members present: Pat O'Brien for Roger Gallaway, Ian McClelland for Jim Silye, and Gary Pillitteri for Sue Barnes.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

Witnesses: From the Office of the Auditor General: L. Denis Desautels, Auditor General; Eric Anttila, Principal, Audit Operations. From the Treasury Board Secretariat: Peter Harder, Secretary of the Treasury Board and Comptroller General of Canada; Paul E. Rummell, Chief Information Officer. From Transport Canada: Paul Gauvin, Acting Deputy Minister; Ron Jackson, Assistant Deputy Minister, Safety and Security.

The Chair presented the Ninth Report of the Sub-committee on Agenda and Procedure which read as follows:

The Sub-committee on Agenda and Procedure of the Standing Committee on Public Accounts met on Thursday, March 6, 1997 and agreed to report the following:

1. That the Committee only hold a preparatory briefing prior to meetings on new subjects if a briefing is requested by the Committee.

2. That the Committee hold meetings during March and April 1997 as follows:


Wednesday, March 123:30 p.m.

In camera meeting on Draft Report on Chapter 14 of the September 1996 Report of the Auditor General (Service Quality)


Tuesday, March 183:30 p.m.

Meeting on Chapter 37 of the November 1996 Report of the Auditor General (Enforcing the Income Tax Act for Large Corporations) with the Auditor General and National Revenue


Wednesday, March 193:30 p.m.

In camera meeting on Draft Report on Chapter 26 of the November 1996 Report of the Auditor General (Canada Infrastructure Works Program--Lessons Learned)


Tuesday, April 83:30 p.m.

Meeting on the application of the stated accounting policies of the Government of Canada and specifically on the accounting treatment of the payments to the maritime provinces in 1996 respecting the Harmonized Sales Tax and the accounting treatment of the creation of the Canada Foundation for Innovation in 1997, with the Auditor General and the Minister of Finance


Wednesday, April 93:30 p.m.

In camera meeting on Draft Report on Chapter 23 of the November 1996 Report of the Auditor General (Materiel Management in the Federal Government)


Tuesday, April 153:30 p.m.

Meeting with the Auditor General on the Main Estimates 1997-98 for the Office of the Auditor General


Wednesday, April 163:30 p.m.

In camera meeting on Draft Report on Chapter 17 of the September 1996 Report of the Auditor General (Human Resources Development Canada--Canada Pension: Disability)


Tuesday, April 223:30 p.m.

Meeting on Chapter 30 of the November 1996 Report of the Auditor General (Correctional Service Canada-- Reintegration of Offenders) with the Auditor General and Correctional Service


Wednesday, April 233:30 p.m.

In camera meeting on Draft Reports to the House


Tuesday, April 2911:00 a.m.

In camera preview of the April 1997 Report of the Auditor General to be tabled that day in the House


Wednesday, April 303:30 p.m.

Meeting with the Auditor General on the April 1997 Report of the Auditor General to be tabled in the House on April 29.

3. That the Chair of the Committee be authorized to seek the authority and the necessary funds to permit four (4) members of the Standing Committee on Public Accounts and two (2) staff persons of the Committee to travel to Edmonton, Alberta, to attend the Annual Conference of the Canadian Council of Public Accounts Committees from September 14 to 16, 1997.

On motion of Ivan Grose, the Ninth Report of the Sub-committee on Agenda and Procedure was concurred in.

Pursuant to Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 24 of the November 1996 Report of the Auditor General (Systems under Development--Getting Results).

Peter Harder, L. Denis Desautels and Paul Gauvin made opening statements and, with the other witnesses, answered questions.

At 5:32 o'clock p.m., the Committee adjourned to the call of the Chair.


WEDNESDAY, MARCH 12, 1997
(Meeting No. 45)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 3:50 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Ivan Grose, Michel Guimond, Denis Paradis, Rey Pagtakhan and Jim Silye.

Acting Member present: Tony Ianno for Sue Barnes.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

In accordance with its mandate under Standing Order 108(3)(d), the Committee resumed consideration of the Draft Report respecting Chapter 14 of the September 1996 Auditor General Report (Service Quality).

The Committee considered the Draft Report and proposed revisions thereto.

It was agreed,--That Denis Paradis be authorized to submit a Supplementary Opinion to be appended to the Report to the House and that it be submitted to the Clerk of the Committee, in both official languages, not later than Wednesday, March 19, 1997.

It was agreed,--That the Draft Report, as amended, be concurred in.

It was agreed,--That the Chair be authorized to make such grammatical and editorial changes to the Report as may be necessary without changing the substance of the Report.

It was ordered,--That the Report, as amended, be presented by the Chair of the Committee to the House of Commons.

At 5:11 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, MARCH 18, 1997
(Meeting No. 46)

The Standing Committee on Public Accounts met in a televised session at 3:54 o'clock p.m. this day, in Room 253-D, Centre Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Michel Guimond, Charles Hubbard, Denis Paradis, Rey Pagtakhan, Yves Rocheleau and Jim Silye.

Acting Member present: Harold Culbert for Ivan Grose.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Shahid Minto, Assistant Auditor General; Barry Elkin, Principal, Audit Operations. From National Revenue: Barry Lacombe, Assistant Deputy Minister, Verification, Enforcement and Compliance Research Branch; Robert Beith, Assistant Deputy Minister, Appeals Branch; Ed Gauthier, Director General, Audit Directorate, Verification, Enforcement and Compliance Research Branch.

In accordance with its mandate under Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 37 of the November 1996 Report of the Auditor General of Canada (Revenue Canada--Enforcing the Income Tax Act for Large Corporations).

It was agreed,--That the meeting scheduled for tomorrow at 3:30 o'clock p.m. be cancelled; that the Committee consider the Draft Report on the Infrastructure Works Program on Tuesday, April 8 at 3:30 o'clock p.m.; and that consideration of the matter previously scheduled for April 8 be postponed until the week of April 21, 1997.

L. Denis Desautels and Barry Lacombe made opening statements and, with the other witnesses, answered questions.

At 5:59 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, APRIL 8, 1997
(Meeting No. 47)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 4:46 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Michel Guimond, Charles Hubbard, Denis Paradis, Yves Rocheleau and Alex Shepherd.

Acting Member present: Geoff Regan for Ivan Grose.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

In accordance with its mandate under Standing Order 108(3)(d), the Committee resumed consideration of Chapter 26 of the November 1996 Auditor General Report (Canada Infrastructure Works Program--Lessons Learned).

The Committee proceeded to the consideration of a Draft Report respecting Chapter 26.

The Committee considered the Draft Report and revisions thereto.

It was agreed,--That the Draft Report, as amended, be concurred in.

It was agreed,--That the Chair be authorized to make such grammatical and editorial changes to the Report as may be necessary without changing the substance of the Report.

It was ordered,--That the Report, as amended, be presented by the Chair of the Committee to the House of Commons.

At 5:04 o'clock p.m., the Committee adjourned to the call of the Chair.


WEDNESDAY, APRIL 9, 1997
(Meeting No. 48)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 4:17 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Sue Barnes, Pierre de Savoye, Michel Guimond, Charles Hubbard, Rey Pagtakhan and Jim Silye.

Acting Member present: Harold Culbert for Ivan Grose.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

In accordance with its mandate under Standing Order 108(3)(d), the Committee resumed consideration of Chapter 23 of the November 1996 Auditor General Report (Materiel Management in the Federal Government).

The Committee proceeded to the consideration of a Draft Report respecting Chapter 23.

The Committee considered the Draft Report and revisions thereto.

It was agreed,--That the Draft Report, as amended, be concurred in.

It was agreed,--That the Chair be authorized to make such grammatical and editorial changes to the Report as may be necessary without changing the substance of the Report.

It was ordered,--That the Report, as amended, be presented by the Chair of the Committee to the House of Commons.

At 5:13 o'clock p.m., the Committee adjourned to the call of the Chair.


TUESDAY, APRIL 15, 1997
(Meeting No. 49)

The Standing Committee on Public Accounts met at 3:34 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Michel Guimond, Charles Hubbard, Denis Paradis, Jim Silye, John Williams.

Acting Members present: Ron Fewchuk for Sue Barnes, Bill Graham for Roger Gallaway, John Loney for Ivan Grose, Michel Dupuy for Alex Shepherd.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal and Michelle Salvail, Research Officers.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Raymond Dubois, Deputy Auditor General; Michael McLaughlin, Assistant Auditor General.

The Committee proceeded to the consideration of the Main Estimates 1997-98: Vote 30 - Auditor General - under FINANCE referred to the Committee on Thursday, February 20, 1997.

L. Denis Desautels and Michael McLaughlin made opening statements.

At 4:06 o'clock p.m., the sitting was suspended.

At 4:41 o'clock p.m., the sitting resumed.

The witnesses answered questions.

Vote 30 under FINANCE carried.

It was ordered,--That the Chair report Vote 30 under FINANCE to the House of Commons.

At 5:19 o'clock p.m., the Committee adjourned until tomorrow at 3:30 o'clock p.m.


WEDNESDAY, APRIL 16, 1997
(Meeting No. 50)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 3:56 o'clock p.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Michel Guimond, Charles Hubbard and Rey Pagtakhan.

Acting Members present: John O'Reilly for Sue Barnes, Mac Harb for Ivan Grose, Ovid Jackson for Denis Paradis, John Loney for Alex Shepherd, Stéphan Tremblay for Pierre de Savoye.

In attendance: From the Research Branch of the Library of Parliament: Michelle Salvail, Research Officer.

In accordance with its mandate under Standing Order 108(3)(d), the Committee resumed consideration of Chapter 17 of the September 1996 Auditor General Report (Human Resources Development Canada--Canada Pension Plan: Disability).

The Committee proceeded to the consideration of a Draft Report to the House respecting Chapter 17.

At 4:09 o'clock p.m., the Committee adjourned until Tuesday, April 22, 1997 at 9:00 o'clock a.m.


TUESDAY, APRIL 22, 1997
(Meeting No. 51)
The Evidence for this meeting is not available because it was held in camera.

The Standing Committee on Public Accounts met in camera at 9:18 o'clock a.m. this day, in Room 209, West Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Michel Guimond, Charles Hubbard, Yves Rocheleau, Alex Shepherd and Jim Silye.

Acting Members present: Robert Nault for Sue Barnes, Len Hopkins for Denis Paradis.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal, Research Officer.

In accordance with its mandate under Standing Order 108(3)(d), the Committee resumed consideration of the Draft Report respecting Chapter 17 of the September 1996 Auditor General Report (Human Resources Development Canada--Canada Pension Plan: Disability).

The Committee considered the Draft Report and revisions thereto.

It was agreed,--That the Draft Report, as amended, be concurred in.

It was agreed,--That the Chair be authorized to make such grammatical and editorial changes to the Report as may be necessary without changing the substance of the Report.

It was ordered,--That the Report, as amended be presented by the Chair of the Committee to the House of Commons.

At 10:53 o'clock a.m., the Committee adjourned to the call of the Chair.


TUESDAY, APRIL 22, 1997
(Meeting No. 52)

The Standing Committee on Public Accounts met in a televised session at 3:37 o'clock p.m. this day, in Room 253-D, Centre Block, the Chair, Michel Guimond, presiding.

Members of the Committee present: Pierre de Savoye, Michel Guimond, Denis Paradis, Rey Pagtakhan, Alex Shepherd and Jim Silye.

Acting Members present: Robert Nault for Sue Barnes, Gordon Kirkby for Ivan Grose.

In attendance: From the Research Branch of the Library of Parliament: Brian O'Neal, Research Officer.

Witnesses: From the Office of the Auditor General of Canada: L. Denis Desautels, Auditor General; Maria Barrados, Assistant Auditor General. From Correctional Service Canada: Ole Ingstrup, Commissioner.

In accordance with its mandate under Standing Order 108(3)(d), the Committee proceeded to the consideration of Chapter 30 of the November 1996 Report of the Auditor General (Correctional Service Canada--Reintegration of Offenders).

L. Denis Desautels and Ole Ingstrup made opening statements and, with the other witness, answered questions.

At 5:16 o'clock p.m., the Committee adjourned to the call of the Chair.

Bernard G. Fournier

Clerk of the Committee


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