Government Operations Committee on Feb. 10th, 2011

[Richard Dicerni]

I have maybe 35 years.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

Is the concept of cabinet confidentiality a new one?

[Richard Dicerni]

I don't believe so.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

That's good, because I have to tell you we've been hearing a lot from, in particular, the Liberal opposition here with respect to debating the budget in public, and they seem to be moving in the direction of wanting more of a republic-style government in which you debate the budget and you negotiate it out in public, similar to how the United States does, because that allows them to then throw in their little entitlements, as we've seen in the U.S., which has gotten them into so much trouble.

I rack my brains, because in the mid-1990s I was actually in the Ontario government. I was working for a member of the provincial Parliament. I think it was the 1997 budget in particular. I remember sitting in my office listening to then Minister of Finance Martin deliver that budget and remembering with shock, to be honest with you, the unilateral cuts to health, education, and social programs that were made. I think there were $25 billion worth of cuts, and for the life of me I simply don't remember any advance press releasing of that, any advance knowledge to the provinces that it was actually going to take place.

So I'm a bit confused by their desire now for everything to be out in the open despite the risks that may occur. When I asked the Parliamentary Budget Officer the other day whether there was some risk in our system of people profiting from advance knowledge of what might be in the budget, he quite clearly said yes. I'm a bit concerned by the direction of the Liberal opposition.

Let me ask you this. Despite everything that's happened.... And I know it's kind of a difficult question, because things just happen. Nobody would have anticipated the problems we had in the auto sectors. Going forward, what are some of the key priorities for the department, assuming that nothing creeps up like the auto sector did?

[Richard Dicerni]

One thing I've realized over the last four and a half or five years in this department is that something always creeps up. Despite having done the best planning we could do, such as some of the current reviews we may undertake under the Investment Canada Act, even just last week there was public debate over usage-based billing. In the fall I think a number of people were engaged in the BHP discussions. I take it as a constant that the Department of Industry will be a source of news.

In regard to priorities going forward, perhaps I could paraphrase some of Minister Clement's thoughts. One would be on a digital economy strategy. It is very important that we harness the potential that exists out there to enhance our competitiveness. He had a meeting recently with his provincial counterparts to sustain that.

Second, broadly speaking, to reinforce our intellectual property framework, the House of Commons recently passed a bill on spam. There's a bill before a special committee on copyright. So I think intellectual property is important.

In terms of ongoing S and T and innovation, the government has launched a review, chaired by Tom Jenkins, to assist in assuring that taxpayers get the best bang for the buck, including a tax credit, in regard to the $7 billion spent on supporting business in R and D. So we are ensuring that we maximize value out of those investments both in terms of basic research and in commercialization outcomes.

Fourth, in terms of small business, the Senate recently released a report analyzing BDC's proposal for change. They are up for their ten-year legislative review this year, and we will be focusing on how to optimize BDC's contribution to the economy. Over and above that, there is the ongoing focus dealing with certain sectors, such as the aerospace and automobile sectors.

Last, I would note the ongoing commitment of the minister to economic development in northern Ontario.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

With those priorities in mind, are the cost containment measures we're seeking from the department putting any of those at risk?

[Richard Dicerni]

It's our job, as officials—and I am fortunate to have a very good cadre of senior officials—to deliver on these objectives with the resources the government, and subsequently Parliament, gives us.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

I have one last question.

Tell me a little bit about the service standards the department has in place.

[Richard Dicerni]

They vary a great deal. Some are legislatively driven—for example, under Investment Canada, we have to offer investors a view within 45 days. We can seek a 30-day extension.

We have a similar type of guideline within the Competition Bureau, in terms of how we can provide guidelines to companies that are seeking to merge.

At an operational level--and perhaps Helen could speak to that--we have spectrum licences.

[Helen McDonald, Assistant Deputy Minister, Spectrum, Information Technologies and Telecommunications, Department of Industry]

You may know that we hand out a lot of licences for spectrum. We also certify equipment. On our website for many years we've had a series of time performance: if you apply for a licence, you can expect it within x days if the application is complete, and within y days if it requires international collaboration.

We have service standards in our areas of major types of licensing but also in certification of equipment for use within Canada.

[The Chair, Liberal, John McKay]

Thank you, Mr. Calandra.

Mr. Martin, for eight minutes, please.

[Pat Martin, NDP, Winnipeg Centre, MB]

Thank you, Mr. Chair.

Welcome, Mr. Deputy Minister and guests.

You came so willingly and cooperatively to our committee. It's been hard to get some of the departments to attend our committee, or to schedule them.

[Richard Dicerni]

I drew the long straw.

[Pat Martin, NDP, Winnipeg Centre, MB]

I see, you drew the long straw at the deputy ministers meeting.

You do paint a glowing report of the efforts you have made to spend what you have more wisely and to find efficiencies within the existing system without having to cut too drastically.

I note that the impact of the constraint measures imposed on you for the current fiscal year is estimated to be about $3 million, and about $4.6 million in the next fiscal year. What percentage of your total budget does that represent?

[Richard Dicerni]

It's 1%.

[Pat Martin, NDP, Winnipeg Centre, MB]

It's 1%? It must be less than that.

[Richard Dicerni]

The overall operating budget of the department--what we refer to as O and M--is about $400 million.

[Pat Martin, NDP, Winnipeg Centre, MB]

Is that all?

[Richard Dicerni]

Yes.

[Pat Martin, NDP, Winnipeg Centre, MB]

That's a miserly amount of money for such an important portfolio.

[Richard Dicerni]

Well, we do have a policy role as it relates to many of the other agencies, departments within the Industry Canada portfolio, including StatsCan--

[Pat Martin, NDP, Winnipeg Centre, MB]

Right, that's what I mean. I'm adding up all those things. It's such a pluralistic portfolio.

[Richard Dicerni]

There is the Space Agency, the National Research Council, the granting councils--

[Pat Martin, NDP, Winnipeg Centre, MB]

They all have their own budgets.

[Richard Dicerni]

But those are not explicitly under my financial accountability.