:
Good morning, Mr. Chair and members of the committee.
Thank you for inviting the Privy Council Office, PCO, to review our 2017-18 Supplementary Estimates (C) and our 2018-19 Interim Estimates.
My name is Matthew Shea, and I have been the new Chief Financial Officer of PCO since December 2017.
[English]
I'm accompanied today by Ms. Marian Campbell Jarvis, assistant secretary to the cabinet for social development policy, and Ms. Sylvie Godin, executive director of finance in the planning directorate of the corporate services branch at PCO.
As you know, the mandate of PCO is to serve Canada and Canadians by providing professional, non-partisan advice and support to the Prime Minister and ministers within his portfolio and to provide effective operation of cabinet.
PCO supports the development of Government of Canada policy, legislative, and government administration agendas, coordinates responses to issues facing the government and the country, and supports the effective operation of the cabinet.
PCO is led by the Clerk of the Privy Council, who acts as the secretary to the cabinet and the head of the public service.
PCO has three main roles.
[Translation]
First, we provide non-partisan advice to the Prime Minister, portfolio ministers, cabinet and cabinet committees on matters of national and international importance.
[English]
This includes providing advice and support on the full spectrum of policy, legislative, and government administration issues faced by the government.
Second, PCO is the secretariat to the Cabinet in all of its committees except the Treasury Board, which is supported by the Treasury Board Secretariat.
[Translation]
And third, PCO fosters a high-performing and accountable public service.
[English]
I would also add that, like the Department of Finance and TBS, PCO is a central agency, and as such exercises a leadership role across government departments and agencies to provide advice to the Prime Minister and cabinet and to ensure coherence and coordination of policy development and delivery.
Now I will begin by providing you with an overview of PCO's 2017-18 authorities to date, and will continue with some remarks about the 2017-18 supplementary estimates (C).
In addition to the $144.9 million received via the main estimates for 2017-18, PCO sought an additional $34.4 million in 2017-18 supplementary estimates (A) for the operations of the National Inquiry into Missing and Murdered Indigenous Women and Girls and was given access to a carry-forward of $5.3 million, as well as collective bargaining funding of $2.3 million, to bring our total authorities to $186.9 million.
PCO also sought an additional $34.3 million in 2017-18 supplementary Estimates (B), bringing the total 2017-18 authorities to $221.2 million. The additional resources were used to
[Translation]
continue one of our Budget 2016-17 initiatives, which is the information management and information technology project, that consists of the replacement and upgrade of the current IT infrastructure, the modernization of PCO systems, the introduction of new information sharing, business intelligence and reporting solutions, and transitioning its top secret Canadian network.
[English]
Also, we got money to lead the establishment of NSICOP and its secretariat. PCO received funds to cover costs for NSICOP's accommodation, security, IT, and salary until NSICOP received its own appropriation in December 2017.
We also received funding to fund a study led by OECD to assess the current state of innovation in the public sector and propose areas of action to reinforce capacity to innovate and thereby deliver better outcomes for citizens and government. We're now seeking an additional $1.6 million in supplementary estimates (C), bringing the total authorities to $222.8 million for the year.
The additional resources will be used as follows: $1.4 million for the implementation of the centre for expertise for the Impact Canada initiative within PCO to lead and provide support to partner departments in the use of challenges and other outcomes-based funding approaches to improve results for citizens.
This funding has been earmarked for the establishment of the Impact Canada centre of expertise, which will work with departments and agencies to design high-impact, outcomes-based initiatives; measure impact; and share what works.
Under this approach, the Government of Canada will open up the problem-solving process to innovators who can bring fresh perspectives and new ideas, through the use of prizes and challenges, and will pay for success instruments, such as social impact bonds, behavioural insights, and impact-measurement methodologies.
Work under the Impact Canada initiative is already under way. Infrastructure Canada launched the Smart Cities Challenge in November 2017, and communities across Canada are currently developing proposals to win some of the $75 million in prize funding available.
Other key areas of focus for future outcomes-based initiatives are being developed by Natural Resources Canada around clean technology.
We are also requesting $1 million for the establishment of a lesbian, gay, bisexual, transgender, queer, and two-spirited—LGBTQ2—secretariat within PCO to support the work of the special adviser on LGBTQ2 issues and the development and coordination of the government's LGBTQ2 agenda.
[Translation]
A priority for the Government of Canada is to strengthen diversity and inclusion to ensure all Canadians have the opportunity for full economic and social participation in society. This includes the promotion of equality for LGBTQ2 Canadians, protection of their rights, and responses to discrimination against them, both historical and current.
[English]
To this end, the appointed as the special adviser on LGBTQ2 issues, the first such role. And the LGBTQ2 secretariat, the government's first team fully dedicated to LGBTQ2 issues, supports his mandate.
On November 28, 2017, the issued an apology to LGBTQ2 Canadians, which made clear to everyone that discrimination against them was wrong then and is wrong now, and that the Government of Canada will not let it happen again.
However, there is much work left to do to give LGBTQ2 Canadians the true meaning of equality embodied in the apology, the Human Rights Act, and the charter.
[Translation]
An amount of $800,000 will be used to create a secretariat within PCO to support the Working Group of Ministers on the Review of Laws and Policies Related to Indigenous Peoples.
[English]
The Government of Canada is committed to a renewed nation-to-nation, Inuit-to-crown, and government-to-government relationship with first nations, Inuit, and Métis people, based on the recognition of rights, respect, co-operation, and partnership.
On February 22, 2017, the announced the establishment of a working group of ministers responsible for reviewing relevant federal policies, laws, and operational practices to help further a nation-to-nation relationship with indigenous peoples.
One year into its mandate, the working group has engaged with a number of national and regional indigenous leaders and experts, and has sent letters to over 600 indigenous groups and organizations, in order to identify priority laws, policies, and operational practices for the review. The working group will continue to engage indigenous leaders, youth, and experts based on these priorities as it assesses and recommends changes to laws and policies that will meet Canada's commitments to advance reconciliation.
This new funding is partially offset by a transfer of $2.1 million to NSICOP. As previously indicated, PCO has received funding in the supplementary estimates (B) for the establishment of NSICOP. As at December 13, 2017, when NSICOP received its own appropriation, PCO had expended $200,000 of the $2.3 million received, resulting in an unspent balance of $2.1 million being transferred to NSICOP to be used for their appropriations.
This comprises the major needs and initiatives to be funded through PCO's proposed supplementary estimates (C).
The 2018-19 interim estimates were tabled the same day as the supplementary estimates (C).
PCO is requesting $37.6 million in their 2018-19 interim estimates, which represents one-third of the 2018-19 main estimates' program expenditures of $150.3 million. This funding will support PCO financial requirements for the first three months of the 2018-19 fiscal year.
[Translation]
Mr. Chair, members of the committee, thank you for the opportunity to provide you with this context.
[English]
We would be pleased to answer your questions.
:
Thank you, Mr. Chair. I would like to introduce Mostafa Askari, who is the deputy PBO. It's also his birthday today, so that's why he wanted to appear with you.
Voices: Hear, hear!
Mr. Jean-Denis Fréchette: Jason Jacques is the senior director of costing. You will hear a lot about costing in the future. He is also the PBO's CFO. He's wearing many hats, so that's one of them. Sloane Mask is deputy CFO.
Those are my two frugal CFOs. I have to be careful when I speak about money.
[Translation]
Thank you, Mr. Chair, for the invitation. I also want to thank the vice-chair, as well as the members.
We are happy to present the Supplementary Estimates (C) 2017-18, and the Main Estimates, 2018-19—at least the interim parts—of the Office of the Parliamentary Budget Officer.
As you know, amendments to the Parliament of Canada Act last year resulted in the position of Parliamentary Budget Officer being recognized as an independent officer of Parliament. The order in council of September 21, 2017, established its status as such and confirmed that its legislative mandate would be expanded to include the costing of party election platforms.
September 21 was also the date that marked the separation of the PBO and the Library of Parliament, which meant that the PBO had to quickly establish its own administrative processes and internal controls.
[English]
As you are aware, the order in council also added your committee to the list of the already three standing committees mentioned in the legislation. Therefore, this committee is now in good company with the FINA committee, the public accounts, and the national finance in the Senate.
Every separation involves a certain level of risk and uncertainty that can affect ongoing operations. Given that new requirements were also introduced at the same time to produce analyses as part of its services to parliamentary committees, senators, and MPs, and that the new requirements included additional administrative responsibilities resulting from the new legislation, such as annual reports on activities, work plans, submitting reports to both Speakers when we produce our own self-initiated reports, it was strategically imperative to act quickly and decisively to maintain services to parliamentarians without interruption throughout the transition.
Given the situation, a decision was made to negotiate with the Library of Parliament administration to have it provide administrative services in the short and medium term. This decision was based on the following criteria. Services at competitive costs compared with other organizations; the political neutrality of the Library of Parliament; and the experience it has acquired since 2005 in providing similar administrative services to another independent officer of Parliament, the office of the Conflict of Interest and Ethics Commissioner, and its predecessor.
The added benefit of having a team of Library managers already familiar with the needs of the office of the PBO ensured that all PBO analysts and managers could continue their analysis activities during the transition. The flexibility to revisit the administrative agreements with the Library after the 2019 election was also an important criteria.
And personally, for me it was very important to maintain the option to remain a part of the House of Commons IT environment for protection of data, not only while Parliament is sitting, but also during election periods when political parties may decide to submit their campaign proposals on a confidential basis to have their financial costs evaluated.
[Translation]
To ensure a smooth transition, an amount of $731,000 was submitted to, and was approved by, the speakers of the Senate and the House of Commons as part of the supplementary estimates (C). A business case explaining the basis for the budget requests was provided to the speakers, and also to members of the committee.
In the table you were given, the amount of $731,000 was broken down as follows: $39,600 is set aside for additional analytical capacity; $432,213 for goods and services expenditures associated with the new independence requirements, such as licenses and contracts for IT, financial and compensation services; $218,839 will go to transition staff; finally, $40,575 will go to changes to the employee benefit plan.
[English]
I would like now to ask my colleague, Jason, just to walk you through the interim budget, and after that we will be open for questions.
:
Thank you for your question.
We could always say that it is never enough, but the business plan we put forward is essentially a justification. The future is full of unknowns, as Jason and I mentioned. For example, your committee is now one of four committees that, under the law, can require us to fulfill their requests for economic and financial analyses. In the legislation, the word “shall” is used, which can be read as “must”.
All the other committees can ask the PBO—once again, the word “shall” is used—to analyze cost proposals related to private members' bills, government bills or committee motions, for example, and the PBO must do so. The example I have often given is that of the Standing Committee on Health that proposed a motion, a year ago, to have the PBO conduct an analysis of the pharmacare program.
The law now requires us to answer all those questions, but we don't know what the extent of committees' requests for that type of analysis will be. We were careful in developing our request. We think that, at first, the committees will not be as active as we expect, since this is new. In addition, we are nearing the election period. During the presentation, I used the word “frugal”, but I should have perhaps used the word “reasonable”.
I will talk about two other criteria. We also used examples of offices of parliamentary budget officers in other countries similar to ours that provide services similar to a Parliament of about 300 members, in addition to 105 senators. We found that we were following the standard.
Those are the main reasons. That said, the unknown is still election platform costing. We have no idea how active political parties will be 120 days before the next election and will ask us to estimate the cost of their election proposals. This is a bit of a shot in the dark, but, as I mentioned—and we said so in our business plan—we are certain enough that we will be able to respond to the requests over the next few months.
:
Thank you, colleagues. This shouldn't take too long.
Do I have the unanimous consent of the committee to call all of the votes of supplementary estimates (C) 2017-18 together?
Some hon. members: Agreed.
The Chair: Shall votes 1c, 5c, and L7c under the Department of Public Works and Government Services; shall vote 3c under the Office of the Parliamentary Budget Officer; shall vote 1c under Privy Council Office; shall votes 1c and 5c under Shared Services Canada; and shall votes 1c, 15c, 20c, and 30c under Treasury Board Secretariat carry?
DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES
ç
Vote 1c—Operating expenditures..........$159,985,195
ç
Vote 5c—Capital expenditures..........$28,756,764
ç
Vote L7c—Imprest funds, accountable advances, and recoverable advances..........$14,000,000
(Votes 1c, 5c, and L7c agreed to on division)
OFFICE OF THE PARLIAMENTARY BUDGET OFFICER
ç
Vote 3c—Program expenditures..........$690,652
(Vote 3c agreed to on division)
ç
Vote 1c—Program expenditures..........$3,247,797
(Vote 1c agreed to on division)
ç
Vote 1c—Operating expenditures..........$20,455,242
ç
Vote 5c—Capital expenditures..........$150,000
(Votes 1c and 5c agreed to on division)
TREASURY BOARD SECRETARIAT
ç
Vote 1c—Program expenditures..........$10,430,068
ç
Vote 15c—Compensation adjustments..........$36,120,434
ç
Vote 20c—Public service insurance..........$622,900,000
ç
Vote 30c—Paylist requirements..........$250,000,000
(Votes 1c, 15c, 20c, and 30c agreed to on division)
The Chair: Shall the chair report the supplementary estimates (C) 2017-18 to the House?
Some hon. members: Agreed.
The Chair: Do I have the unanimous consent of the committee to call all of the votes of the interim estimates 2018-19 together?
Some hon. members: Agreed.
The Chair: Shall vote 1 under Canada Post Corporation; shall vote 1 under Canada School of Public Service; shall vote 1 under Canadian Intergovernmental Conference Secretariat; shall vote 1 under Canadian Transportation Accident Investigation and Safety Board; shall votes 1 and 5 under Department of Public Works and Government Services; shall vote 1 under Office of the Governor General's Secretary; shall vote 1 under Office of the Parliamentary Budget Officer; shall vote 1 under Office of the Public Sector Integrity Commissioner; shall vote 1 under Privy Council Office; shall vote 1 under Public Service Commission; shall vote 1 under Senate; shall votes 1 and 5 under Shared Services Canada; and shall votes 1, 5, 10, 20, 25, 30, and 35 under Treasury Board Secretariat carry?
ç
Vote 1—Payments to the corporation for special purposes..........$5,552,500
(Vote 1 agreed to on division)
CANADA SCHOOL OF PUBLIC SERVICE
ç
Vote 1—Program expenditures..........$16,097,941
(Vote 1 agreed to on division)
CANADIAN INTERGOVERNMENTAL CONFERENCE SECRETARIAT
ç
Vote 1—Program expenditures..........$1,396,306
(Vote 1 agreed to on division)
CANADIAN TRANSPORTATION ACCIDENT INVESTIGATION AND SAFETY BOARD
ç
Vote 1—Program expenditures..........$6,740,401
(Vote 1 agreed to on division)
DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES
ç
Vote 1—Operating expenditures..........$646,567,281
ç
Vote 5—Capital expenditures..........$295,256,393
(Votes 1 and 5 agreed to on division)
OFFICE OF THE GOVERNOR GENERAL’S SECRETARY
ç
Vote 1—Program expenditures..........$4,996,577
(Vote 1 agreed to on division)
OFFICE OF THE PARLIAMENTARY BUDGET OFFICER
ç
Vote 1—Program expenditures..........$2,909,820
(Vote 1 agreed to on division)
OFFICE OF THE PUBLIC SECTOR INTEGRITY COMMISSIONER
ç
Vote 1—Program expenditures and contributions..........$1,252,472
(Vote 1 agreed to on division)
ç
Vote 1—Program expenditures..........$37,571,013
(Vote 1 agreed to on division)
PUBLIC SERVICE COMMISSION
ç
Vote 1—Program expenditures..........$24,786,900
(Vote 1 agreed to on division)
ç
Vote 1—Program expenditures and contributions..........$18,537,806
(Vote 1 agreed to on division)
ç
Vote 1—Operating expenditures..........$413, 909, 505
ç
Vote 5—Capital expenditures..........$75,026,057
(Votes 1 and 5 agreed to on division)
TREASURY BOARD SECRETARIAT
ç
Vote 1—Program expenditures..........$77,768,597
ç
Vote 5—Government contingencies..........$687,500,000
ç
Vote 10—Government-wide initiatives..........$798,250
ç
Vote 20—Public service insurance..........$599,726,349
ç
Vote 25—Operating budget carry forward..........$400,000,000
ç
Vote 30—Paylist requirements..........$150,000,000
ç
Vote 35—Capital budget carry forward..........$150,000,000
(Votes 1, 5, 10, 20, 25, 30, and 35 agreed to on division)
The Chair: Shall the chair report the interim estimates 2018-19 to the House?
Some hon. members: Agreed.
The Chair: Thank you very much, colleagues. I appreciate this. These will be reported tomorrow.