Finance Committee on May 8th, 2018

[John Moffet]

They will follow.

[The Chair, Liberal, Wayne Easter]

Thank you very much.

Welcome, folks. We are to division 1 of part 6 the Financial Administration Act. From the Treasury Board, we have Ms. Sonya Read, senior director, digital policy; and from the financial sector policy branch of the Department of Finance, we have Marie-Josée Lambert, director, crown corporation and currency. Welcome, and I believe you have a quick opening statement. Go ahead.

[Sonya Read, Senior Director, Digital Policy, Treasury Board Secretariat]

The proposal seeks to amend the Financial Administration Act to formalize the role of the Chief Information Officer of Canada.

Recognizing the fundamental importance of information management and information technology to government operations and to ongoing service delivery improvement, the proposal supports strengthened government-wide governance of those areas, much as the establishment of the role of the comptroller general has done for financial management, and the role of the chief human resources officer has done for human resources management.

The amendments establish the role of the chief information officer of Canada as a deputy head within the Treasury Board Secretariat, and provide authority for the Treasury Board to delegate powers and functions to that office. It is expected that these amendments will support improvements to the general management of information technology across the Government of Canada, as well as support the improved delivery of projects that are reliant on information technology for their success.

[The Chair, Liberal, Wayne Easter]

Thank you very much.

Do you have anything to add, Ms. Lambert?

[Marie-Josée Lambert, Director, Crown Corporations and Currency, Financial Sector Policy Branch, Department of Finance]

I have a separate item.

[The Chair, Liberal, Wayne Easter]

You're still on division 1, right?

[Marie-Josée Lambert]

Yes I am.

The proposed legislative amendments are technical in nature and will have no impact on the government's debt or deficit. Only crown corporations will be affected, particularly those that are subject to part X of the Financial Administration Act and that prepare financial statements in compliance with the International Financial Reporting Standards (IFRS).

The proposed legislative amendments will ensure that crowns with no borrowing authority are able to enter into lease agreements to run their day-to-day operations. They will require the Minister of Finance's approval before entering into leases over a certain threshold. Statutory borrowing limits exclude these lease transactions.

Thank you.

[The Chair, Liberal, Wayne Easter]

Okay, we're open to questions.

Mr. Albas?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Thank you.

In regard to the last item, Ms. Lambert, could you just let us know what is the minimum proposed term before there has to be disclosure on that?

[Marie-Josée Lambert]

There is no minimum term. The threshold is expressed in a percentage of assets, or a dollar threshold, which has yet to be established under Governor in Council.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

So it's going to be by regulations, through a schedule?

[Marie-Josée Lambert]

Yes that's right.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Obviously this represents quite a considerable way of doing business, because someone could, theoretically, take a large asset, be bound to that asset over a period of time—perhaps a 20-year lease or longer—without having to attribute it to some sort of payment schedule, like a debt instrument. What is the rationale for this? Is this going to allow the government to make it? To me, there's always a transparency issue and we do know, even from our experience here on Parliament Hill, that there is a difference between government deciding to lease buildings versus owning them. If you could just give me a little more information, I'd appreciate that.

[Marie-Josée Lambert]

There are two parts to my answer. The first is that it's very much a technical amendment to respond to new IFRS rules. The IFRS 16 rule that will apply comes into effect in January 2019. We're not changing anything other than allowing crown corporations to continue to enter into capital leases as they were before.

The second part of my answer is that you're absolutely correct. By amending the legislation and implementing IFRS 16, there will be increased transparency to the centre on capital leases entered into by crown corporations that exceed a certain threshold.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

At least I take some comfort because the international financial reporting standards are well elaborated and thought out.

Again, I just question about that. However, I don't have anything further, Mr. Chair.

[The Chair, Liberal, Wayne Easter]

Are there any further questions on division 1?

Mr. Dusseault.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

In terms of the position being created, division 1 of part 6 provides that the duration of the appointment is at the discretion of the minister.

Why is the duration not assigned? Why wasn't a limit set for the person appointed as Chief Information Officer?

[Sonya Read]

That would align with the appointment process for deputy heads within departments. Effectively, the chief information officer would be appointed as the deputy head within the Treasury Board Secretariat. I don't believe there's usually a timeline associated with those types of appointments into the civil service.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Okay.

What need does this position fill?

[Sonya Read]

The legislation is formalizing the position in order to provide strong senior leadership within the Government of Canada for the management of information technology and information management. There were a number of reports over the past year that identified having centralized, stronger, central leadership in governance as an important factor in improving information technology management within the Government of Canada. This proposal responds to some of those initiatives and suggestions.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Is it related to Canada's action plan on open government or is it not really the same thing?

[Sonya Read]

They are two different things. The open government, the policy area within open government, is within the chief information officer branch within the Treasury Board Secretariat, but they are separate things.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

I presume that it provides leadership in information gathering or more efficient information systems and technologies that can then feed Canada's action plan on open government.

[Sonya Read]

Yes, it primarily responds to governance around information technology. However, information management is also within the functions of that. It would support that over the longer term.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Thank you.