Appearance Before the Committee of the Whole in the House of Commons - Supplementary Estimates (B) 2021–22

Introduction

Mister/Madam Chair, I am pleased to be here today to discuss the Supplementary Estimates (B), for 2021–22.

Open and transparent reporting

The ability to exercise oversight is one of the most important roles parliamentarians can play on behalf of our citizens.

In fact, accountability is predicated on parliamentarians knowing how public funds are being spent, so that they can hold the government to account for its actions.

Which is why our government will continue to make every effort to make sure that parliamentarians have access to accurate, timely, and understandable information about government spending.

The Supplementary Estimates are one part of a broad set of reports that provide information on spending plans and outcomes to Canadians and parliamentarians.

These reports include the Departmental Plans, the Fiscal Monitor, the Departmental Results Reports, and the Public Accounts.

We also present this information through GC InfoBase, an interactive online tool that displays a wealth of federal data in a visual way.

It contains the Estimates, along with other data related to government finances, people, and results.

Publishing expenditure datasets on digital tools like this is central to providing parliamentarians and Canadians with more information on where public funds are going, and how they are being invested.

Government-wide Supplementary Estimates

Mister/Madam Chair, I would now like to turn to the Supplementary Estimates in more detail.

The Supplementary Estimates present information to Parliament on spending that was either not ready for inclusion in the Main Estimates or has since been refined to account for new developments in programs or services.

With these Supplementary Estimates (B) for 2021–22, the government is seeking Parliament’s approval of funding to address matters of importance to Canadians.

This includes the government’s ongoing response to the COVID‑19 pandemic as well as infrastructure and services to address the specific needs of Indigenous communities.

Mr. Chair, the health, safety and well-being of all Canadians are of the utmost importance to the government.

Which is why approximately $1.2 billion of proposed voted spending is for the government’s ongoing response to the COVID‑19 pandemic.

Canadians care about each other, and they also care about those less fortunate outside of our borders.

That is why Budget 2021 announced funding to help some of the world’s poorest countries access the tools they need to help contain the spread of COVID‑19.

These Estimates seek $375.0 million to deliver on that commitment to support access by developing countries to vaccines, therapeutics and diagnostics.

Mr. Chair, I mentioned these Supplementary Estimates seek Parliament’s approval of funding to address the needs of Indigenous communities.

I would like to highlight some of these key voted items.

Budget 2021 announced funding for the government to accelerate its work to close infrastructure gaps in Indigenous communities, creating good jobs and building healthier, safer, and more prosperous Indigenous communities in the long term.

These Estimates deliver on that commitment with $725.2 million to support construction, renovation, operation and maintenance of housing, schools, health facilities, water and wastewater, and other community infrastructure.

This funding will also support the transfer of infrastructure to Indigenous-led organizations and fund the operation and maintenance of Indigenous-owned infrastructure.

These Estimates also seek $412.2 million for the Specific Claims Settlement Fund, which provides compensation to First Nations in accordance with negotiated agreements, as well as $361.3 million to fund prevention and protection services to support the safety and well-being of First Nations children and families living on reserve.

To ensure Indigenous peoples can access high-quality health care, Budget 2021 announced several measures, including one in these estimates for $332.4 million to ensure continued high-quality care through the Non-Insured Health Benefits Program.

This program supports First Nations and Inuit people with medically necessary services not otherwise covered, such as mental health services, medical travel, medications, and more.

Another budget initiative which is presented in these estimates is funding to help people on reserve and status Indians in Yukon transition from income assistance to employment and education.

Specifically, $308.7 million is sought to assist eligible individuals and families with basic or special needs, case management and pre-employment measures designed to increase self-reliance, improve life skills and promote greater attachment to the workforce.

Mr. Chair, we are fortunate in Canada to have Canadian Armed Forces personnel to defend Canada and its interests and respond in times of crisis, whether it be the devastating floods in British Columbia or a global pandemic.

These Estimates seek $327.7 million to cover a pay increase for Canadian Armed Forces personnel to align with the bargaining settlements for the core public administration.

The funds will also support restructuring of pay and allowances for certain occupations within the Forces, as well as an extension of the allowance for personnel deployed to support Canadians during the COVID‑19 pandemic.

TBS-specific Supplementary Estimates (B)

Mr. Chair, I’d also like to draw your attention to the portion of the Supplementary Estimates for my department, although a very small part of these funds is for the Treasury Board of Canada Secretariat (TBS) itself.

Under the vote for Compensation Adjustments, we are seeking Parliament’s authority for $1.5 billion.

This funding will be used to compensate affected organizations for salary adjustments arising from recently negotiated collective bargaining agreements and other changes to the terms and conditions of employment.

This funding will also be used to compensate employees for damages associated with the Phoenix pay system and for the extended implementation time frames of collective agreements during the 2018 round of collective bargaining.

Conclusion

Mister/Madam Chair, that concludes my presentation of some of the major voted items in these Supplementary Estimates.

I am pleased to report that parliamentarians have online access to even more detailed information than what I have had time to present to you today.

We will continue to make that information available because of our belief in Canadians’ right to know where public funds are going, and how they will be invested on their behalf.

Thank you.

Issue

Additional spending presented in Supplementary Estimates (B), 2021–22

Response

• Our government is committed to responding to the needs of Canadians and is making critical investments in infrastructure and services for Indigenous communities, as well as ongoing support for Canadians and businesses facing difficulties as a result of the COVID‑19 pandemic.
• Through the Supplementary Estimates (B), 2021–22, the government is seeking Parliament’s authority to spend $8.7 billion in voted expenditures.
• The Supplementary Estimates also include, for information purposes only, details regarding an increase in forecast statutory expenditures, amounting to $4.7 billion in budgetary expenditures and $2.8 billion in loans, investments and advances.

Background

Issue

For what purposes has the government used Government Contingency funding (Treasury Board Vote 5) since the 2021–22 Supplementary Estimates (A)?

Response

• The government is committed to ensuring that programs and initiatives have adequate funding to meet the needs of Canadians.
• Treasury Board Vote 5 is a long-standing vote which provides the government with the flexibility to meet unforeseen expenditures until parliamentary approval can be obtained.
• These estimates provide detail on the approvals granted for access to funding through Treasury Board Vote 5.
• The funding is for initiatives that address government priorities, including economic support to groups affected by the COVID‑19 pandemic, as well as for urgent infrastructure and service needs in Indigenous communities.

Background

• Treasury Board Vote 5, Government Contingencies, is a centrally managed vote used to supplement other appropriations or grant authorities to address urgent, unforeseen and unavoidable cash requirements of organizations.
• To obtain Treasury Board approval for funding from Treasury Board Vote 5, an organization must:
  • provide a valid reason as to why a payment must be made before the next Supply period
  • demonstrate that it is unable to cover its funding needs from its existing appropriations
• Organizations provide TBS with a series of cash flow analyses, and funding is only allocated for urgent payments when required.
• Allocations from this central vote are temporary and are typically reimbursed by organizations once Parliament approves supply of the next Supplementary Estimates.
• The Supplementary Estimates (B) reported on five approved allocations totalling $136.4 million:
  • $57.8 million (of the up to $76.3 million authorized) for Canadian Heritage to provide timely pandemic-related financial relief through the Recovery Fund for Arts, Culture, Heritage, and Sport Sectors and the Reopening Fund for events and in-person experiences
  • $40 million for Crown-Indigenous Relations and Northern Affairs Canada to support shovel-ready infrastructure projects in Indigenous communities
  • $25.3 million for Crown-Indigenous Relations and Northern Affairs Canada to implement a coordination agreement with Cowessess First Nation for child and family services
  • $10 million (of the up to $30 million authorized) for Western Economic Diversification Canada to support small- and medium-sized enterprises in western Canada to recover from the pandemic
  • $3.3 million for the National Battlefield Commission to mitigate financial pressures caused by the pandemic and recent collective bargaining
• The Supplementary Estimates (B) also reported on seven initiatives for which access to Treasury Board Vote 5 had been approved by the Treasury Board but for which no allocations had been made at the time of tabling:
  • up to $50 million for the Pacific Economic Development Canada to support the prompt establishment of a dedicated regional development agency for British Columbia
  • up to $44.3 million for the Innovation, Science and Economic Development Canada to provide timely grant payments under the Canada Digital Adoption Program
  • up to $21 million for Telefilm Canada to provide timely pandemic-related financial relief to Canadian cinemas and local film festivals
  • up to $10.8 million for the Privy Council Office to support the joint public inquiry into the April 2020 Nova Scotia tragedy
  • up to $3.9 million for Canadian Heritage to provide timely financial support to help cultural facilities renovate and adapt their physical spaces in response to the pandemic
  • up to $1.9 million for Library and Archives Canada to digitize, describe and provide access to Indigenous-related documentary heritage
  • up to $0.6 million for the Leaders’ Debates Commission to ensure that the commission was prepared to organize debates for the 44th general election

Issue

Why is TBS requesting $1.5 billion for compensation adjustments in the Supplementary Estimates (B), 2021–22?

Response

• The Government of Canada respects the collective bargaining process and negotiates with bargaining agents to reach agreements that are fair to employees and to taxpayers.
• The funding in these Supplementary Estimates relates to compensation adjustments made between November 14, 2020, and August 6, 2021, based on new collective agreements with several employment groups.
• This funding also includes compensation to employees for damages associated with the Phoenix pay system and for the extended implementation time frames of collective agreements during the 2018 round of collective bargaining.

Background

• Treasury Board Vote 15, Compensation Adjustments, is a centrally managed vote that supports the role of the Treasury Board as the employer of the federal government.
• This funding is used to compensate appropriated organizations for salary adjustments arising from negotiated collective bargaining agreements and other changes to the terms and conditions of employment of the public administration.
• As the employer, the Treasury Board requests funding for all organizations under its purview. This approach reduces the number of organizations appearing in Estimates and appropriation bills, streamlining the preparation and review of those documents.
• When Parliament approves the Appropriation Act for these Supplementary Estimates, funds will be distributed from Treasury Board Vote 15 to applicable organizations, and the details will be reported online.
• The funding in these Supplementary Estimates will cover agreements signed and other adjustments made between November 14, 2020, and August 6, 2021, including:
  • three recently concluded collective agreements for the Computer Systems (CS) group, the Correctional Services (CX) group, and Royal Canadian Mounted Police (RCMP) members and reservists
  • two collective agreements reached by separate agencies (the National Capital Commission and the Communications Security Establishment)
  • compensation to employees for damages associated with the Phoenix pay system and for the extended implementation time frames of collective agreements during the 2018 round of collective bargaining

Issue

How much is TBS seeking in the 2021–22 Supplementary Estimates (B) for the policy on COVID‑19 vaccination for the core public administration?

Response

• Vaccination is one of the most effective tools we have at our disposal to protect broader public health in the face of COVID‑19, and to prevent future outbreaks.
• As the country’s largest employer, the Government of Canada is leading by example, and all federal public servants, including members and reservists of the RCMP must be vaccinated.
• This is a priority for which we are requesting $85.4 million:
  • $3.5 million would be used to deliver and support specific activities to help core public administration organizations implement the policy on vaccination
  • $81.9 million is budgeted to help the core public administration and the RCMP shoulder departmental costs to implement the vaccination policy

Background

TBS will be seeking parliamentary approval to increase its Vote 1, Program expenditures authorities in 2021–22 by $3.5 million and its Vote 10, Government-wide Initiatives authorities in 2021–22 by $81.9 million to implement the Policy on COVID‑19 Vaccination for the Core Public Administration Including the Royal Canadian Mounted Police:

• $3.5 million funding in Vote 1 will be used for activities done by TBS to support the government-wide implementation of the policy, and will be comprised of the technical delivery, operational costs and support to core public administration organizations for Government of Canada Vaccination Attestation Tracking System (GC‑VATS), the technical delivery of the Screening Application, TBS guidance and support to core public administration organizations for policy implementation and communications support costs
• $81.9 million funding in Vote 10 will be allocated to other government departments for the implementation of the policy on COVID‑19 vaccination for the core public administration and the RCMP, and any potential core public administration–wide productivity losses, replacement costs and overtime

It is anticipated that the framework for allocations from TBS Vote 10 will include two components: a baseline funding amount to be provided to all core public administration organizations, and an additional envelope of funding that will be set aside to allow organizations to request specific amounts to address their individual pressures.

Issue

How much is TBS seeking in the 2021–22 Supplementary Estimates (B) for public service job classification?

Response

• As the largest employer in Canada, the government is committed to ensuring the value of work performed by public servants is determined fairly and transparently, and that qualification standards are free from bias based on gender, age, education, language, culture and income.
• Funding in the amount of $3.8 million will ensure that the classification program, within TBS, provides central direction to core public administration organizations on how public service work is organized and evaluated.
• This program underpins other human resource disciplines, such as staffing, compensation and labour relations to enable effective people management in support of the delivery of government programs, services, and outcomes for Canadians.

Background

TBS will be seeking parliamentary approval to increase its Vote 1, Program expenditures authorities in 2021–22 by $3.8 million for advancing public service job classification (Budget 2021).

The Classification Program supports a diverse workplace that ensures that the value of work performed by public servants is determined fairly and transparently. It also ensures that qualification standards are free from bias based on gender, age, education, language, culture and income. Funding will support the modernization of various occupational groups that cover approximately 50% of positions in the public service, some of which are comprised mainly of women. These initiatives, along with the implementation of the Pay Equity Act, will help to ensure that the principle of equal pay for work of equal value is upheld. Modernization initiatives fulfill TBS’s negotiated, Treasury Board–approved commitments to bargaining agents.

This funding will also support the policy development work needed to reposition classification for the future of work and ensure that the public service reflects the diversity of the Canadians that it serves.

Issue

How much is TBS seeking in the 2021–22 Supplementary Estimates (B) for Office of Public Service Accessibility?

Response

• Accessibility in the public service is about ensuring that all employees have the tools they need to do their best work and succeed in their careers. It is about identifying and removing barriers that prevent people from participating and ensuring access to devices, services, programs and information.
• COVID‑19 has changed how we live, how we work and how we collaborate. Awareness of accessibility and inclusiveness includes understanding the barriers to accessibility employees may face in the workplace or as they work remotely.
• The $2.5 million sought for the Office of Public Service Accessibility would allow the Government of Canada to continue leading the implementation of Nothing Without Us: An Accessibility Strategy for the Public Service of Canada, helping ensure that persons with disabilities can directly influence policy and program decisions that affect them.

Background

TBS will be seeking parliamentary approval to increase its Vote 1, Program expenditures authorities in 2021–22 by $2.5 million for Office of Public Service Accessibility (Budget 2021).

This funding will be used to allow the Office of Public Service Accessibility to continue its leadership role on behalf of the Government of Canada in the implementation of Nothing Without Us: An Accessibility Strategy for the Public Service of Canada, which ensures that persons with disabilities can directly influence policy and program decisions that affect them. The objective of this renewal is to help prepare the public service to lead by example in meeting the requirements of the Accessible Canada Act, 2019, that requires federally regulated organizations, including the federal government, to develop and publish accessibility plans outlining their efforts to identify, prevent and remove barriers to accessibility.

Issue

How much is TBS seeking in the 2021–22 Supplementary Estimates (B) for regulatory reviews and the External Advisory Committee on Regulatory Competitiveness?

Response

• The Government of Canada has pledged to help businesses adapt for the future and thrive in the wake of the pandemic.
• Modernizing our regulatory system plays a part in reducing the administrative burden on business and industry.
• Announced and funded through the 2018 Fall Economic Statement and Budget 2019, the External Advisory Committee on Regulatory Competitiveness has provided recommendations to help shape Canada’s regulatory modernization efforts and provided an independent perspective on regulatory barriers facing businesses, representatives and academics.
• The Committee’s mandate ended in March 2021, and the $2.3 million requested in the Supplementary Estimates would sustain the important work of the Committee going forward, ensuring the continued implementation of targeted reviews of regulatory requirements.

Background

TBS will be seeking parliamentary approval to increase its Vote 1, Program expenditures authorities in 2021–22 by $2.3 million for regulatory reviews and the External Advisory Committee on Regulatory Competitiveness (Budget 2021).

This funding will be used to continue to implement targeted reviews of regulatory requirements that are bottlenecks to economic growth and innovation, and for the continuation of the External Advisory Committee on Regulatory Competitiveness (EACRC), which provides the President with advice on how to improve Canada’s regulatory competitiveness and address government-wide issues that impact the federal regulatory landscape.

Renewed funding would enable TBS to continue its efforts to support regulatory excellence by leveraging the expertise of the EACRC and to meet the commitment set out in Budget 2021 to launch a third round of Regulatory Reviews focused on how regulations can accelerate Canada’s recovery from the pandemic.

Issue

How much is TBS seeking in the 2021–22 Supplementary Estimates (B) for the Regulatorsʼ Capacity Fund?

Response

• The Government of Canada is committed to fostering innovation in its approach to regulations, striving to bring value to businesses while maintaining world-class health, safety and security protections for Canadians and the environment.
• A total of $600,000 would go to the Regulators’ Capacity Fund to support experimentation and innovation by federal regulators in their work with industry.
• This investment would help ensure that regulations are responsive to complex, rapidly evolving technological and business environments.
• Regulatory experimentation improves the regulatory outcomes for Canada and Canadians. It allows the government to keep pace with advances in technology and bringing innovative products and services into the marketplace.

Background

TBS will be seeking parliamentary approval to increase its Vote 10, Government-wide Initiatives authorities in 2021–22 by $0.6 million for Regulatorsʼ Capacity Fund.

This funding is a reprofile of lapsed funds under the Regulators’ Capacity Fund program required to support additional projects. These projects aim to assist regulatory departments and agencies looking to modernize their systems and build capacity to incorporate economic and competitiveness considerations into the design and implementation of regulations.

10. Financial reporting and transparency / reporting on COVID‑19 expenditures

11. Federal workplaces: post-pandemic planning

12. Other Leave With Pay (699)

13. Vaccines: mandate and human resources guidance

14. Mental health in the public service

Issue

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

Response

• The Government of Canada has concluded collective agreements covering approximately 99% of public servants for the 2018 round of bargaining.
• Negotiations with the Public Service Alliance of Canada (PSAC) are underway for the next round of bargaining, and we anticipate starting negotiations with other bargaining agents in the coming months.
• We remain committed to reaching agreements with all bargaining agents that are fair to employees, mindful of today’s economic and fiscal context, and reasonable for Canadians.

Background

To date, the government has reached 53 agreements for the 2018 round, including recent tentative agreements, with groups covering close to 270,000 employees, or approximately 99% of public servants in the core public administration and separate agencies. The agreements include pattern economic increases over either three or four years, new provisions for caregiver leave, extended parental leave, and a memorandum of understanding on the implementation of collective agreements. Most agreements also include up to 10 days of paid leave for domestic violence.

The tentative agreement reached with PSAC for the Border Services (FB) group has recently been approved by the Board and will be signed with PSAC shortly.

Negotiations to conclude the 2018 round of collective bargaining are ongoing between TBS and two core public administration bargaining units: the Police Operations (PO) group, represented by the Canadian Union of Public Employees, and the Ships’ Officers (SO) group, represented by the Canadian Merchant Service Guild. Negotiations are also ongoing between the PSAC and four separate agencies: the Canadian Security Intelligence Service, the Office of the Superintendent of Financial Institutions, Statistics Survey Operations (SSO) and the Office of the Auditor General.

In the context of the 2021 round of collective bargaining, PSAC filed notice to bargain for four collective agreements that expired in 2021: Program and Administrative Services (PA), Technical Services (TC), Operational Services (SV), and Education and Library Sciences (EB). The parties exchanged bargaining proposals in June 2021 and participated in negotiations during the summer and fall of 2021. Negotiations are scheduled to continue in the winter. The PSAC also filed notice to bargain with two separate agency groups: the Canada Revenue Agency and the Parks Canada Agency. These negotiations have not commenced yet.

Issue

The Government of Canada’s commitment to ensure men and women receive equal pay for work of equal value

Response

• The Government of Canada is committed to creating an inclusive public service where women receive equal pay for work of equal value.
• With the coming into force of the Pay Equity Act, TBS is working with bargaining agents to identify and systematically close any pay gaps that exist by increasing compensation for employees in jobs held predominantly by women receiving equal pay for work of equal value.
• The Pay Equity Act has a clear process for all federally regulated employers to follow. Cost estimates will be part of future negotiations with bargaining agents and will be released publicly at the end of negotiations.

Background

With the coming into force of the Pay Equity Act on August 31, 2021, TBS is working with bargaining agents and employee representatives to develop a pay equity plan that identifies gaps between the compensation of jobs held mostly by women and those held mostly by men that involve work of equal value.

This plan will cover all employees in the core public administration^{Footnote 3} of the federal public service, with the exception of the RCMP. A separate pay equity plan will be developed for members of the RCMP.

Once these plans are in place, TBS will systematically close pay gaps by increasing the compensation of employees in jobs held predominantly by women not receiving equal pay for work of equal value.

Issue

The Government of Canada recently announced its priorities to promote diversity and inclusion in the public service.

Response

• Bias, barriers and discrimination are an everyday reality for too many Canadians. While the public service has made progress, more needs to be done.
• To that end, TBS launched a suite of concrete initiatives, co-developed with equity-seeking employee networks, to support departments in addressing barriers to recruitment and promotion.
• The government also amended the Public Service Employment Act to help to address potential bias and barriers in staffing processes.
• The government of Canada’s Office of Public Service Accessibility is now implementing its strategy, Nothing Without Us,a roadmap for the public service to lead by example as an accessible and inclusive employer and service provider.

Background

The work of building a representative public service is a concerted effort that must be taken across the enterprise, given that these responsibilities are held by many organizations with different areas of influence and control. To name a few:

• the Clerk sets out expectations and appoints deputy heads
• the Public Service Commission of Canada administers the Public Service Employment Act and delegates to deputy heads the authority to appoint public servants
• the Treasury Board sets the policy frame for the core public administration and sets terms and conditions of employment
• TBS collects and researches data and supports senior executive talent management
• The Employment Equity Act sets the definition of designated employment equity groups for all federally regulated organizations

The Federal Black Employee Caucus has advocated strongly for disaggregated data and initiatives to increase the executive representation of Black employees. The Federal Black Employee Caucus’s recommendations and the steps being taken in the public service are aligned with the recommendations of the previous reports, such as the “Many Voices, One Mind” report on Indigenous representation and the final report from the Joint Union/Management Task Force on Diversity and Inclusion in the public service.

In Budget 2018, the government announced funding for a Centre for Wellness, Inclusion and Diversity in the public service. This launched in June 2019 and was the basis for as the Centre on Diversity and Inclusion (CDI) launched in October 2020, after funding was announced in the 2020 Fall Economic Statement. CDI’s resources support the evolving diversity and inclusion agenda in the public service, and the wellness component will be handled by the Centre of Expertise on Mental Health in the Workplace.

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 to take deliberate actions to address systemic racism and make the public service more inclusive. At the same time, the former President of the Treasury Board announced the five areas of focus for the public service 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

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 the Federal Anti-Racism Secretariat at Canadian Heritage, which has developed an Anti-Racism Strategy for all of Canada. The 50 – 30 Challenge is another recently launched external-facing initiative among the Government of Canada, business and diversity organizations. The goal of the program is to challenge Canadian organizations to increase the representation and inclusion of diverse groups within their workplace.

Issue

The government is committed to modernizing the Official Languages Act. While Canadian Heritage is the lead department, TBS has key responsibilities for bilingualism in the public service under the legislation.

Response

• We are committed to promoting official languages and ensuring compliance with the Official Languages Act and its related policies.
• Respecting official languages is not only an obligation but a government priority.
• That’s why TBS is working closely with Canadian Heritage, the Department of Justice Canada and other departments to modernize the Official Languages Act and why we have committed to reintroduce legislation in our first 100 days.

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.

Issue

Implementation status of the Phoenix damages agreements reached with unions in 2019 and 2020

Response

• We recognize that the implementation of the Phoenix pay system has had an impact, directly or indirectly, on many current and former employees.
• Damages agreements have been reached with all bargaining agents to compensate employees for general damages and severe impacts caused by the pay system.
• Claims processes are in place for most of these agreements, and we are working closely with PSAC to implement the remaining element of that agreement by the end of the year.

Background

In May 2019, the Government of Canada reached a tentative agreement with members of the Senior Level Phoenix Union-Management subcommittee on damages for compensation for employees impacted by the implementation of the Phoenix pay system. This agreement was ratified in June 2019 by all federal government bargaining agents except for PSAC. Separate agencies have signed similar agreements covering their employees (except those represented by PSAC).

PSAC rejected the agreement, stating that the compensation was insufficient.

Issue

The Public Service Pension Investment Board (PSPIB) and its investments, particularly its relationship with Revera Inc.

Revera Inc. is currently facing a class-action lawsuit related to deaths as a result of COVID‑19, and unions have called on the government to transfer ownership of Revera so as to make it public.

Response

• The PSPIB operates at arm’s length from the federal government. It is not part of the federal public administration, and its multi-billion-dollar business and affairs are managed by a board of directors.
• PSPIB makes publicly available its Responsible Investment Policy, which informs its investment activities and guides the way it conducts operations.

If pressed (on Revera)

• We are aware of reports of legal action against this company and cannot comment further on matters before the courts.

Background

Revera Inc. has been a wholly owned subsidiary of the PSPIB (also known commercially as PSP Investments) since 2007. The PSPIB is a Crown corporation established by Parliament in accordance with the Public Sector Pension Investment Board Act in 1999. The PSPIB reports to Parliament through the President of the Treasury Board, who is responsible for PSPIB’s legislation, and includes certain information about Revera Inc. in its annual report.

The PSPIB operates at arm’s length from the federal government. It is not an agent of Her Majesty, and its business affairs are governed by an 11-member board of directors. Since April 1, 2000, the PSPIB has been investing the amounts transferred by the Government of Canada on behalf of the pension plans for the public service, the Canadian Armed Forces – Regular, the Canadian Armed Forces – Reserve (since its establishment on March 1, 2007), and the RCMP.

There is an established and merit-based process for nominating members to the Board of Directors of the PSPIB. The Governor in Council appoints members based on recommendations from the President of the Treasury Board, who selects qualified candidates from a list generated by an independent nominating committee.

TBS does not recommend the appointees to the PSPIB board of directors to the President; however, it serves as secretariat to the nominating committee for the PSPIB. Qualified candidates are recommended to the President by this nominating committee.

Pursuant to the Public Sector Pension Investment Board Act, the President of the Treasury Board is responsible for establishing a nominating committee whose mandate is to establish a list of qualified candidates for proposed appointment as a director of the board of the PSPIB. The Chairperson is appointed by the President of the Treasury Board after they have consulted with the Ministers of National Defence and Public Safety. Upon recommendation of qualified candidates by the nominating committee, the President of the Treasury Board will make a recommendation for appointment to the Governor in Council.

Revera Inc. is an owner, operator and investor in the senior living sector. Through its portfolio of partnerships, Revera owns or operates more than 500 properties across Canada, the United States and the United Kingdom, offering seniors’ apartments, independent living, assisted living, memory care and long-term care.

Issue

In June 2021, the Standing Committee on Access to Information, Privacy, and Ethics (ETHI) tabled its second report, entitled Questions of Conflict of Interest and Lobbying in Relation to Pandemic Spending. The report contained 23 recommendations, of which 12 related to the Conflict of Interest Act and other conflict of interest safeguards in Treasury Board policies.

Response

• The Conflict of Interest Act is there to prevent conflicts between private interests and the duties of public office holders.
• Recommendations from the second report by ETHI provides input on how best we can ensure federal public office holders carry out their duties with integrity and impartiality in an open, fair and transparent manner.
• The government is committed to ensuring that federal public office holders carry out their duties with integrity and impartially.

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.

The Conflict of Interest Act came into force on July 9, 2007, which 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.

The Conflict of Interest Act required a one-time statutory review by a parliamentary committee. In 2014, ETHI completed the review of the Act. ETHI recommended some changes to the law, including expanding the Act’s definition of public office holder, clarifying certain provisions, and adjusting the administration of the Act. Later that year, a regulation was enacted to add new positions subject to the Act (for example, Governor of the Bank of Canada).

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.

A provision is also included in the Directive on Transfer Payments to ensure that no current or former public servant or public office holder can derive direct benefit from a funding agreement. Furthermore, no member of the Senate or the House of Commons shall be admitted to any share or part of the agreement, or to any benefit arising from it, that is not otherwise available to the general public.

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 the federal conflict of interest and lobbying regimes; accountability to Parliament; government contribution agreements and contracts with the WE group; ensuring that processes for entering into contribution agreements or contracts are fair, transparent, and comply with the Official Languages Act; volunteer programs; and the use of new technologies that may have privacy implications.

Among these recommendations, ETHI recommended that “the Government of Canada conduct a comprehensive review of the Conflict of Interest Act.” 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.” Pursuant to Standing Order 109, ETHI requested that the government provide a comprehensive response to its report, which would have been due within 120 days.

On August 15, 2021, Parliament was dissolved. Dissolution of Parliament immediately puts an end to the requirement to respond to House of Commons committee reports. ETHI can, however, still issue a new request for the government to respond to its report. If ETHI issues such a request, the government would be required to table a response within 120 days, pursuant to Standing Order 109.

Issue

In June 2021, ETHI recommended that the government introduce legislative changes to the Lobbying Act. The Lobbying Act is required to be reviewed every five years, and the last review was conducted in 2012.

Response

• Lobbying is a legitimate part of our democratic system and is recognized as an important part of ensuring free and open access to government.
• The Lobbying Act ensures that the lobbying of federal office holders is conducted with the highest standards of integrity and recognizes the need for Canadians to be able to know who is lobbying whom in government.
• We welcome all opportunities to hear about how we can improve transparency and accountability in lobbying activities.

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 Conflict of Interest Act.

The Lobbying Act is based on four key principles:

1. free and open access to government is an important matter of public interest
2. lobbying public office holders is a legitimate activity
3. it is desirable that public office holders and the general public be able to know who is engaged in lobbying activities
4. the system of registration of paid lobbyists should not impede free and open access to government

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 arm’s 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.

The Lobbying Act requires a statutory review every five years by a parliamentary committee. In 2012, ETHI completed the first statutory review of the Act. ETHI noted that the Act is generally working well in accordance with its objectives but recommended some changes to the law. These recommendations included changes to lobbyists’ returns, banning the receipt of gifts from lobbyists, and adding administrative monetary penalties to the Act. No changes to the Act were made.

Over the past year, a series of recommendations have been made to improve the Lobbying Act. First, in February 2021, the Lobbying Commissioner submitted 11 preliminary recommendations in response to a November 2020 request from ETHI. These were based on the experience of the Office of the Commissioner of Lobbying administering the federal lobbying regime as well as the experience of provincial, territorial and municipal regimes.

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 the federal conflict of interest and lobbying regimes; accountability to Parliament; government contribution agreements and contracts with the WE group; ensuring that processes for entering into contribution agreements or contracts are fair, transparent, and comply with the Official Languages Act; volunteer programs; and the use of new technologies that may have privacy implications.

Among these recommendations, ETHI recommended that “the Government of Canada introduce legislative changes to the Lobbying Act to give the Commissioner of Lobbying real powers to investigate, issue fines and impose lobbying bans to those who disregard the Act.” 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.” Pursuant to Standing Order 109, ETHI requested that the government provide a comprehensive response to its report, which would have been due within 120 days.

On August 15, 2021, Parliament was dissolved. Dissolution of Parliament immediately puts an end to the requirement to respond to House of Commons committee reports. ETHI can, however, still issue a new request for the government to respond to its report. If ETHI issues such a request, the government would be required to table a response within 120 days, pursuant to Standing Order 109.

Subsection 14.1(1) of the Lobbying Act requires that the Act be reviewed by a Parliamentary Committee every five years. The last review of the Act was conducted in 2012. The June 2021 report issued by ETHI is not deemed a formal review of the Lobbying Act.

Issue

On February 17, 2021, the Standing Committee on Government Operations and Estimates retabled a report that included recommendations for legislative amendments to the Public Servants Disclosure Protection Act, and requested that the government table a comprehensive response to the report. Parliament was dissolved prior to a government response being tabled.

Response

• We are committed to promoting a positive, respectful and safe public sector culture that is grounded in values and ethics, and where public servants feel safe to disclose wrongdoing.
• The Public Servants Disclosure Protection Act helps ensure an ethical workplace culture and supports the integrity of the federal public sector.
• The Government of Canada has made, and continues to make, meaningful improvements to the federal disclosure process.

If pressed

• This includes enhancing reporting through the annual report on the Public Servants Disclosure Protection Act, and more guidance to deputy heads and departments to help public servants navigate the disclosure process.

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.

In February 2018, the Standing Committee on Government Operations and Estimates adopted a motion to invite the President of the Treasury Board to provide a briefing on the progress made by the government in implementing the recommendations made by the Committee in its statutory review of the Public Servants Disclosure Protection Act.

On February 17, 2021, the Government Operations Committee adopted a motion by Conservative MP Kelly McCauley to readopt the 2017 report and request a government response. Parliament was dissolved prior to a government response being tabled, and the dissolution of Parliament means there is no longer a requirement for a response to be tabled. If a committee in the new Parliament readopts the same recommendations again and requests a response, this would trigger a new requirement for a response, and the government would consider the substance of a response at that time.

The Office of the Chief Human Resources Officer is leading the implementation of activities in support of these commitments. More generally, we have taken a number of actions to foster an environment where public servants feel safe and protected to come forward, including:

• conducting outreach and education activities to inform public servants about the disclosure of wrongdoing process and protection against acts of reprisal
• establishing a Centre of Expertise on Mental Health in the Workplace, helping implement the National Standard of Canada for Psychological Health and Safety in the Workplace
• establishing a Centre on Diversity and Inclusion, providing public servants with a platform for engaging with these issues and conducting research and analysis
• 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
• completing the first phase of Policy Suite Reset for the Policy on People Management and the Policy on the Management of Executives, which sets 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
• monitoring public servant sentiment via the annual Public Service Employee Survey.

Issue

How is cyber security addressed in the Government of Canada, including cyber threats that may pose a risk to government infrastructure and services and the Government of Canada’s response to notable cyber incidents this past year?

Response

Like every other government and private sector organization in the world, the Government of Canada faces ongoing and persistent cyber threats.

The government has robust systems and tools in place to monitor, detect and investigate potential threats, and takes active measures to address and neutralize them.

Together, TBS, Shared Services Canada and Communications Security Establishment Canada work to ensure the government’s cyber security posture is current and effective.

The government is continuously working to enhance cyber security in Canada by identifying cyber threats and vulnerabilities, and by preparing for and responding to all types of cyber incidents to better protect Canada and Canadians.

Issue

In June 2021, Canada’s Digital Government Strategy was released. This document outlined the government’s priorities for digital government and provided a roadmap for implementation. This work continues to underpin efforts across the Government of Canada to deliver safe, secure and reliable services and information to citizens, residents, visitors and businesses.

Response

• The Government of Canada is committed to providing Canadians with the online service experience they expect in a digital age, with secure, reliable and easy to access at any time and from any device.
• We have a robust and modern strategy to deliver secure and efficient services to citizens, residents, visitors and businesses, by putting the right tools, systems and people in place.
• These efforts are built upon a strong policy framework and a set of digital principles characterized by a preoccupation with accessibility, information and data, cyber security and, above all, user needs.

Background

The Government of Canada is building a policy framework that supports government‑wide digital transformation. This includes the Policy on Service and Digital, which took effect April 1, 2020. This policy suite establishes a set of now-integrated rules that will guide how the Government of Canada manages service delivery, accessibility, information and data, information technology, and cyber security to deliver better, user-centric services in the digital era.

The Government of Canada also announced its updated Digital Standards Playbook that establishes how all public servants should work differently in the digital age. This includes ensuring that services, programs and operations are user-centric, and that the Government of Canada leverages digital technologies and methods to deliver the high-quality citizen services Canadians expect. The standards were recently updated with further guidance on how departments and agencies can fully integrate the standards into their work.

This includes responsibly and ethically leveraging artificial intelligence in service delivery. The Government of Canada’s world-leading Directive on Automated Decision-Making and Algorithmic Impact Assessment tool supports the responsible, human rights-based use of automated decision-making systems by helping departments and agencies assess and mitigate any associated impacts. The Government of Canada has also created an artificial intelligence source list to support departments and agencies in procuring ethical and effective artificial intelligence solutions, including services and products that enable improved, digital-age public services.

The Canadian Digital Service delivers a variety of digital government initiatives. GC Notify, a platform product, allows departments to quickly and easily send emails and text messages to service users. To date, 172 services have sent over 22.4 million notifications through GC Notify. COVID Alert is Canada’s free COVID‑19 exposure notification app, released in partnership with Health Canada and developed in collaboration with partners in the private sector and provincial governments. These are complemented by numerous partnership initiatives with a wide range of federal organizations, providing targeted advice and assistance on key service initiatives.

TBS continues to work actively with its partners across the Government of Canada to concretely advance the digital government mandate and to improve services to Canadians. This includes efforts to improve governance while empowering teams to be agile and focus on designing user-centred services.

Issue

Workplace measures to curb the COVID‑19 pandemic and protect the health and safety of federal employees affected institutions’ ability to respond to access to information and personal information requests throughout of the pandemic.

Response

• The government remains committed to maintaining the openness and transparency of government during this challenging time.

• In response to the Information Commissioner’s recommendations, we have made available to all Canadians more information related to COVID‑19 and the government’s response proactively.
• In Budget 2021, we also committed significant new funding to improving and reviewing the access to information program.
• We will continue to work with the Information Commissioner and across the federal public service to meet Canadians’ needs for open, accessible and trustworthy information.

Background

In response to public health direction on COVID‑19, most employees have been working remotely, and many had reduced access to documents and information systems that they would usually use to respond to requests. There are no provisions in the Access to Information Act or the Privacy Act to extend deadlines or place requests on hold due to an emergency.

TBS issued guidance to institutions to make best efforts to process requests and proactively publish information, in accordance with operational realities. Notices currently posted on the Open Government Portal and the Access to Information and Privacy (ATIP) Online Request Service inform requesters of potential delays due to COVID‑19 measures. TBS continues to support institutions with suggested best practices for working digitally to respond to requests.

Since the onset of COVID‑19 measures, institutions have made progress in mitigating the effects of the COVID‑19 measures on their ability to respond to requests. During the week of April 27, 2020, six of the 105 institutions that responded to TBS’s then-weekly capacity questionnaire indicated they had no capacity to respond to ATIP requests. As of July 20, 2021, all of the 144 responding institutions indicated that they had full or partial capacity to respond to requests.

Key mitigation activities have included:

• institutions offering to provide electronic records to requesters where paper records cannot currently be accessed
• institutions utilizing e-post where possible to facilitate electronic responses to requesters
• the former President of the Treasury Board, Jean-Yves Duclos, wrote to his Cabinet colleagues to encourage ministers to proactively publish as much information as possible related to COVID‑19, as well as reminding them of the importance of ensuring best practices in information management
• TBS organized workshops to share best practices to help ATIP offices adapt their procedures to the remote work environment
• the ATIP Online Request Services has remained available as a simple and efficient means for Canadians to submit requests to 2,120 federal institutions
• the government completed a procurement process to ensure modern ATIP request processing software is available to government institutions

The Office of the Chief Information Officer continues to engage with the Offices of the Information Commissioner and Privacy Commissioner to ensure that these oversight bodies are aware of institutions’ operational status.

The review of the Access to Information Act, which began in June 2020, also offers an opportunity to have an open exchange on making access to information systems and processes more resilient.

Issue

The conduct of the government’s Access to Information Act review

Response

• Our access to information regime must meet Canadians’ expectations for accessible, timely and trustworthy information while reflecting today’s digital world.
• A full review of the Access to Information Act was launched in June 2020 to assess processes and systems to improve services and reduce delays and make more information openly available.
• While the first phase of public engagement activities wrapped up on August 2021, there will be other opportunities for Indigenous groups and other stakeholders to share their views over the coming months.

Background

Canada’s current access to information regime dates to 1983, when the Access to Information Act first came into effect. The Act represents a key cornerstone of the Canadian democratic system, but its administration across 265 federal institutions faces increasing pressures. In the last five years alone, the number of requests has more than doubled, from approximately 68,000 requests in 2014–15 to more than 150,000 in 2019–20.

In 2015, the government made the reform of the access to information regime a key mandate commitment for the President of the Treasury Board. In 2016, the government announced that it would review the Access to Information Act in two phases, with Phase I comprising a targeted set of amendments to deliver on specific commitments, and Phase II representing a full review of the Act.

Phase I, or Bill C‑58, was introduced in Parliament in June 2017 and received royal assent two years later, on June 21, 2019. One of the amendments made to the Act through Bill C‑58 was a requirement for the President of the Treasury Board to undertake a review of the Actwithin one year of royal assent and every five years thereafter. This requirement represents Phase II of the government’s commitment to reform Canada’s access to information regime.

On June 18, 2020, the government launched the Access to Information Act review in fulfillment of the legislative requirement. The review focuses on three broad areas: reviewing the legislative framework, opportunities to improve proactive publication to make information openly available, and assessing processes and systems to improve service and reduce delays. In addition, the review is also examining issues specific to Indigenous access to information.

In November 2020, President Duclos invited the Information Commissioner and Privacy Commissioner to provide recommendations to improve access to information, given their important roles and expertise. Both commissioners have responded and submitted their input into the review. President Duclos also sent invitations to the Multi-Stakeholder Forum on Open Government and national Indigenous organizations. These invitations have been published on the review webpage in support of an open and transparent review.

To support public engagement, an online Access to Information platform was launched in March 2021, where the public was able to provide submissions, register for engagement events, and participate in a user experience survey. To date, TBS received 34 submissions and over 300 survey responses, and has heard from 380 participants in five public events. Public engagement activities were closed on the platform on August 15, 2021. TBS has also been engaging with federal institutions subject to the Access to Information Act.

The input received throughout the public engagement process to date is being used to develop a “What We Heard” report. Together with policy and legal analysis, these will inform the President’s final report and recommendations to be tabled in Parliament later in 2022.

The government has committed to a robust engagement process with Indigenous peoples for Phase II of the review. Engagement with Indigenous stakeholders is ongoing and will be the subject of a separate “What We Heard” report in the spring 2022.