Thank you.
The Association of Canadian Financial Officers represents approximately 3,000 financial officers in the public service—that's the FI group. As the association chair, I would like first to take this opportunity to thank the committee for having us here today and to express my appreciation for the work you are doing.
This is an historic occasion for Canada. The Federal Accountability Act has the potential to not only provide more accountability within the federal government but also to increase Canadians' faith in their government and restore pride within the public service.
We will concentrate our remarks on three main points: the importance of consultation, long-term issues, and preventive measures rather than reactive ones.
To start, I would like to express concerns regarding the lack of consultation that took place while the legislation was drafted. During the study of Bill C-11 by the operations and estimates committee, representatives of all political parties expressed concerns about the lack of consultation with the public service. It was seen as a major cause of the bill's weaknesses.
We feel that some of the discussions that have taken place in this committee could have been avoided if there had been more consultation with key stakeholders, such as our association. We understand that the Federal Accountability Act has been discussed as a plan on the political level since the last election was called. However, it was not government policy at that time, and debate was somewhat limited; therefore, our opportunities to provide input have been few, if any.
When it comes to financial accountability, I cannot think of any group more interested and concerned about the issue than financial officers. Financial officers are on the front line in the fight for accountability. It was a mistake to ignore them in the process of drafting Bill C-2. Financial officers, through the association, should be consulted not only on the drafting of legislation but also on its implementation. The combination of our experience and professional qualifications can only add value to the process.
As such, our first recommendation is that public service unions be included in the committee of deputy ministers that will review existing Treasury Board financial management policies. This committee is part of the action plan that accompanies this bill. Front-line public servants will undoubtedly offer a different perspective than management's—an unbiased, informed, and especially interested opinion that will lead to a better and more comprehensive approach to accountability.
It is important to recognize that this legislation will have a long-term impact on how things are done by the federal government. The previously mentioned committee is only one of a number of initiatives that aim to eliminate potentially restrictive rules and regulations. We agree with these important measures, but we're concerned that focusing only on past rules and regulations does not go far enough.
Our second recommendation, as written in our latest report entitled Checks and Balances III: In Pursuit of Balance, is that there should be a similar test imposed on all new rules and regulations for financial management, going forward. Such a test is essential to our efforts to balance the need for accountability and efficiency.
We also understand that there is a call for the review of this legislation every five years. We are wary of a process that plans to correct mistakes in five years and opens us to the possibility of another wide-ranging reform. We would be better off spending a proper amount of time to arrive at a product that will stand the test of time.
It is important to allow for accountability, not only for today as a result of some scandals, but for tomorrow as well, when accountability will no longer be on the front page of newspapers. This will be the time when we will be most at risk.
As shown by our first two recommendations, the association feels that Bill C-2 misses an opportunity to take a proactive approach to accountability. While this legislation provides for strengthening the Office of the Auditor General, the hiring of more auditors, and other reactive measures, we are concerned that there are not enough preventative measures.
Financial officers play just such a preventative role. As an association, we believe that had a financial officer been embedded in the sponsorship program, it would have been less likely that such a scandal would have happened in the first place.
This legislation should provide for strengthening of proactive roles of financial officers within the Government of Canada. Financial officers carry professional and legal responsibilities under the Financial Administration Act. They are also bound by a professional code of conduct and ethics, as many of our members have professional accounting designations.
It has been said the sponsorship scandal was caused not by a lack of rules but by the fact that they were not followed. In fact, the Auditor General told this very committee that perhaps we should come back to the principle of sound management instead of creating more rules. Furthermore, she pointed to a lack of understanding of existing rules as a major problem. This is something our association has also identified in previous reports. By the virtue of their training and experience, financial officers can bring about a better understanding of rules in place. Therefore, our third and final recommendation is to ensure that financial officers are embedded in programs where there is an expectation for being accountable for the management of public funds.
It would be hard to find many Canadians opposed to the Federal Accountability Act. This legislation is extremely important, and for that reason due process must be observed. Canadians would rather have a delay in the acceptance of this legislation if such a delay will ensure the rules stand the test of time. We ask all members in all parties to carefully weigh this in their decisions in the next few weeks.
As public servants, we are concerned by the number of new rules and regulations drafted, announced, and, on occasion, implemented every time a new scandal makes it onto the front page of newspapers. It is important to remember that when the political pendulum swings again and the eye of the public turns to another area, it is the public servants who are left to implement and work those rules and regulations. This government and this Parliament have the ability to change the system and forge a document that will redefine our government, provide better accountability, and at the same time ensure that government is effective and efficient in delivering its agenda.
There are many programs competing for funding, and Canadians want to see value for their tax dollars. At the same time, they want access to government services. Implementing any legislation that focuses on accountability needs to ensure that it does not run the risk of becoming an impediment that discourages Canadians from accessing government services. Financial officers have the skills, experience, and qualifications that will add value to the development and implementation of this legislation, and we are eager to be part of that process.
Thank you.