Thank you very much, Mr. Chair.
I will in fact make a presentation, and after I have concluded, my officials and I will be pleased to answer the committee's questions.
Let me begin by saying that I am pleased to be with you today to discuss the priorities of the Treasury Board portfolio in the context of the current economic climate and our role as the management board of the Government of Canada.
As we are all aware, we are facing tough economic times. Just over a month ago, our government brought forward Budget 2009, Canada's economic action plan. This multi-year plan outlines many measures we will be taking to stimulate the economy, protect Canadians hit hardest, and secure Canada's long-term prosperity. For these measures to have a real impact, they must be implemented as quickly as possible.
Today I will give you an overview of how the Treasury Board portfolio supports the government in implementing its agenda. I will also speak about the ongoing priorities of the Treasury Board Secretariat.
The stimulus in our economic action plan represents 1.9% of our economy for the next fiscal year and approximately 1.4% for the year after. We need to get this money out the door quickly to help Canadians in the short term. Even my honourable colleagues in the opposition have acknowledged that for these measures to have a real impact, they must be implemented as soon as possible. At the same time, we need to ensure proper due diligence. As the management board of the government, we at the Treasury Board Secretariat make sure that this process is handled properly and that we not only get the funds flowing, but we do so responsibly.
We are putting in place a number of measures to ensure that funding flows to those who need it most. One of these measures is a special central vote in main estimates of $3 billion, assigned to the Treasury Board Secretariat, for budget implementation. It will allow our government to provide initial funding for ready-to-go initiatives announced in Budget 2009 in advance of the normal parliamentary supply schedule. Reporting on allocations on the vote will be done in supplementary estimates and in quarterly reports to Parliament on the economic action plan. All the funds distributed will be thoroughly accounted for.
In keeping with the need to be responsive and responsible, we have established clear conditions for the use of this vote to ensure that the appropriate checks and balances are in place. For example, this fund can only be used for economic action plan initiatives announced in Budget 2009. Every initiative funded from this vote will require the approval of Treasury Board. Existing policy requirements on accountability and reporting will have to be met. In this context, it should be noted that grants and contributions payments will be subject to the transfer payment policy. Also, the use of this vote is time limited. Funds can only be allocated between April and June 30, 2009.
Contrary to what has been reported, we chose to create a special vote to provide bridge funding for departments to ensure due diligence in approvals, transparency in reporting, and accountability with respect to its use. In addition, we will streamline the review and approval of policies and programs while ensuring that appropriate controls and respect for parliamentary authority are in place. For example, we will use simplified or omnibus Treasury Board submissions for straightforward program extensions or top-ups. Existing programs will be dealt with in an omnibus way, because these have received prior approval from Treasury Board.
In addition, we have better aligned the timing of the budget and estimates. Thanks to new measures put in place by the Treasury Board Secretariat, the public service is better equipped to handle this process than in previous years. For example, over the past three years, financial management standards across government have been improved. Departments now have independent audit committees that include members from outside government, and departments now have qualified chief financial officers.
Departments have also improved the management of their operations. Under the management accountability framework assessments, large departments and agencies, representing over 90% of government spending, have improved in the area of financial management and control. Recent results show that financial management indicators rated acceptable or strong have risen to 90% from 59%.
We have also increased departmental oversight with a committee of deputy ministers, who will be tracking progress and overseeing the implementation of these measures. The Auditor General will also be auditing spending. For the second year now, the government plans to use early spring supplementary estimates as a vehicle for budget measures.
We all appreciate that we have a big job ahead of us. We will be balancing appropriate due diligence and transparency while rapidly delivering funds to Canadians, but we're up to the task, and we intend to help Canadians through these difficult times.
I'd like to now take a few minutes to talk about some of the ongoing priorities for us at Treasury Board. The first is to make government more effective. What do I mean by this? Our focus will be to continue to reduce the web of rules that stymie innovation and creativity in the public service and lessen our ability to deliver results. This initiative lines up with the recent recommendations of the third report of the Prime Minister's advisory committee on the public service, and it is part of our ongoing commitment to the public service renewal action plan.
Our second overall priority is to ensure that program spending is focused on results, provides value for taxpayers' money, and is aligned with the government's priorities and responsibilities. In this area the expenditure management system that our government put in place in 2007 will continue to serve us well in controlling the growth of government spending while producing results that provide value for money for Canadians. An important part of the system is the strategic review process. Through this exercise, every department and agency is required to assess all their direct program spending and performance on a four-year cycle to ensure they are achieving their intended results, are efficiently managed, and are responding to the priorities of Canadians.
Finally, our third overall priority is to create a dynamic public service that is well equipped to address the challenges of today and tomorrow. That means making changes to the organizational structure of government to ensure that we are as efficient and responsive as possible. One such organizational change was the recent restructuring within my portfolio. On March 2 of this year, the Canada Public Service Agency was combined with two sectors in the Treasury Board Secretaria that are responsible for central human resource management functions, to create the new Office of the Chief Human Resources Officer. This change focuses and streamlines the organizational structure for human resource management. With this new structure and other changes resulting from the review of human resources and governance, deputy ministers will be better supported to manage the people in their own departments and agencies. This restructuring was a result of our horizontal review of central human resource functions, and it responds to the recommendations made by the Prime Minister's advisory committee on the public service in its February 2008 report.
Mr. Chairman, as I mentioned, our government is pressing ahead to help Canadian families, communities, and businesses weather the current economic storm. To stand still is no solution at all, and that's why we're putting in place the measures I spoke about today. As the management board for the Government of Canada, our job is to support the government in its efforts to get money flowing to Canadians by ensuring that it is done right. We are determined to deliver on this commitment. The main estimates reflect this central goal and our commitment to providing this leadership to Canadians.
Thank you.
