The process leading to the creation of the Office of the Parliamentary Budget Officer and appointment to this position is set out in the Federal Accountability Act. Is a very specific process. The Parliamentary Librarian must launch an open selection process. If necessary, the Parliamentary Librarian can recommend three names to the leader of the government in the House. It is up to the leader of the government in the House to make a recommendation. This is a governor-in-council appointment, as it the case for other high level appointments of the Senate and House, such as the appointment of the Parliamentary Librarian himself.
On May 13th, 2008. See this statement in context.