Government Operations Committee on May 10th, 2010

[Marilyn MacPherson]

Yes, I do believe so.

[Ed Holder, Conservative, London West, ON]

So would that mean--as I look at this logically--that when we come back to look at the supplementary estimates, notwithstanding things that might come up, be they one-time events or unforeseen events, from your standpoint that should show us a better result, in terms of a lower expectation, in the supplementary estimates? Would that logically follow?

[Marilyn MacPherson]

It would. I would say the only exception to that logic would be for the Cohen commission, which was just launched. So we will be coming forward for funding for it, but no funding for the department itself.

[Ed Holder, Conservative, London West, ON]

Can we then talk about commissions, since you've brought that up?

I note that on page four of your comments, you talk about $0.1 million for the Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182, which from my standpoint is the never-ending commission and never-ending investigation. I would sure like to know that we're done with this. And I say this as much for the victims, and families of victims, that....

I mean, there may be all sorts of reasons why this has taken as long as it has taken. Can you see an end to this?

[Marilyn MacPherson]

I think the counsel can probably respond more completely to that.

[Yvan Roy]

It is expected that Justice Major will report before the summer recess. Indeed, speaking of commissions of inquiry, we also expect the Oliphant commission of inquiry into the business dealings between Mr. Schreiber and the Right Honourable Brian Mulroney to also report before the summer recess.

[Ed Holder, Conservative, London West, ON]

The reason I asked is that it would seem to me that 25 years is a fairly long time to try to find justice, and I'm not sure that we ever will there, honestly.

I'm more curious about the issue of the one-time events that we've also talked about. Certainly the inquiry relating to Air India was one. You mentioned the Schreiber affair. Earlier you mentioned Afghanistan and the costs associated with the G8 and Olympics coordinators.

Are there any other commissions of inquiry, expenses ongoing, that you're anticipating...are included in this budget?

[Marilyn MacPherson]

Not in this budget. The only ongoing funding that we will be seeking will be for the Cohen commission.

[Ed Holder, Conservative, London West, ON]

I have one final question, if I can, and it relates to the funding of the five ministers' offices, the ones that Ms. Coady and I like to reference as the “newbies on the block” here.

We're providing funding to five ministers' offices, including the Minister of State for Democratic Reform. Is that intended to be an ongoing process, or would it be that ultimately they're going to stand alone in terms of being provided in other formats? Or will it also be provided through this budget, in terms of those extra expenses?

[Yvan Roy]

The way the government is organized, so to speak, is the prerogative of the Prime Minister. He has chosen to have these ministers as part of his portfolio. It is certainly possible that the Prime Minister might choose to organize things otherwise, but I don't foresee that as being a possibility in the near future.

[Ed Holder, Conservative, London West, ON]

Thank you to both of you.

[The Chair, Liberal, Yasmin Ratansi]

Thank you.

I'd like to thank you for being here and for trying to at least help us through some of the issues. There was one request from Ms. Coady about a difference of about $1 million between what is shown in the report on plans and priorities and what is shown in the estimates. You will be providing information on that.

I think there is confusion about the $7.6 million for covering the chronic funding pressure—which we don't seem to understand—versus the $6 million in savings that are supposed to be found. So if there's any way you can find that, and perhaps help us through the gap, that would be really appreciated.

Thank you very much.

Yes, Mr. Holder.

[Ed Holder, Conservative, London West, ON]

On that basis, since Ms. Hall Findlay brought that up, she could bring it to the committee so that we could all see it, and then you might present that to these nice folks.

[The Chair, Liberal, Yasmin Ratansi]

But because it should be with the PCO, if they have it.... All I'm asking is that if they have it, they should help us with the gap. As the Standing Committee on Government Operations and Estimates, it's our job to at least understand where these savings are coming from, because we are going through a strategic review. Everyone is supposed to find 5% in savings. The president of the Treasury Board did say that PCO was under that strategic review.

So if it helps us understand--if you don't want to understand, that's fine--then we--

[Ed Holder, Conservative, London West, ON]

Madam Chair, it's not a question of not understanding. Again, on your point, Ms. Hall Findlay indicated that there was a study put in by a prior government. I'd love to see it—

[The Chair, Liberal, Yasmin Ratansi]

Sure.

[Ed Holder, Conservative, London West, ON]

—and our guests have already indicated that they weren't aware of it.

[The Chair, Liberal, Yasmin Ratansi]

They haven't seen it.

[Ed Holder, Conservative, London West, ON]

So I think the onus would be, if I might say, on the members opposite to bring it forward. Let's take a look at it. I'd like to see it and see what aspects of it might be valid, and if they want to comment, I'll leave that to you, Chair.

[The Chair, Liberal, Yasmin Ratansi]

Sure.

Ms. Hall Findlay.

[Martha Hall Findlay, Liberal, Willowdale, ON]

If I may, it took a great deal of time and was launched with a significant amount of information. It is on the public record. It is available on the finance ministry's website, I believe. It's pretty easy to search for: “McCallum, expenditure review report”. It's all on the public record.

[The Chair, Liberal, Yasmin Ratansi]

Thank you.

So if you can provide that information, we would appreciate it.

Again, thank you very much for being here.

I'll suspend for 30 seconds while we wait for the next witnesses to take their places.

[The Chair, Liberal, Yasmin Ratansi]

We can start with the next round of witnesses.

We are studying the main estimates, votes 1 and 5, and we have before us, from the Department of Public Works and Government Services, Monsieur François Guimont, the deputy minister. We also have Mr. Andrew Treusch, the associate deputy minister; and Mr. Alex Lakroni, chief financial officer.

I understand that you have opening remarks, Mr. Guimont.

[François Guimont, Deputy Minister, Deputy Minister's office, Department of Public Works and Government Services]

Thank you, Madam Chair.

I am very pleased to have the opportunity to appear before this committee to discuss the Main Estimates of Public Works and Government Services Canada. I would first like to introduce the people who are with me today: my Associate Deputy Minister Andrew Treusch, and Alex Lakroni, who is Chief Financial Officer.

As Committee members are aware, PWGSC is a common service provider that is central to the functioning of the entire Government of Canada. PWGSC aims to excel in government operations by delivering high quality services and programs that meet the needs of federal organizations and ensure sound stewardship, on behalf of Canadians.

Among the department's 14,000 employees are, for instance, architects, designers, IT specialists and security experts—ail of whom help the department fulfill its multiple roles. PWGSC manages a diverse portfolio of real estate that accommodates 255,000 federal employees in more than 1,800 locations across Canada. On average the department facilitates 60,000 transactions a year for the procurement of goods and services worth about $14 billion.

The Office of Small and Medium Enterprises, or OSME, with regional offices across the country, strives to reduce barriers to federal procurement activities.

Over the past three years, OSME, the Office of Small and Medium Enterprises, has assisted over 70,000 individuals and businesses in doing business with the Government of Canada.

Public Works and Government Services manages payments of $27 billion a year through payroll services for 110 federal departments and other organizations, as well as the pension accounts of 340,000 former public servants, members of the Canadian Forces, judges, and MPs.

Through the operations of the federal treasury, the department also manages the preparation of the annual Public Accounts of Canada and a cashflow of more than $1.7 trillion per year. I'd like you to know that the government has received an unqualified audit opinion on the summary financial statements for 11 consecutive years.

The Translation Bureau translates more than 1.7 million pages a year for federal departments and agencies. It provides translation and interpretation services on more than 1,800 occasions for the House of Commons, the Senate, and parliamentary committees like this one.

Turning to the department's budget for 2010-11, Public Works will spend $6.3 billion this fiscal year to deliver on its mandate. The department is heavily revenue-dependent, with 56% of its expenditures, or $3.5 billion, covered by revenue primarily from client government departments for services rendered in support of their programs. As a result, Parliament is being asked to approve $2.8 billion in the main estimates, which represents our net appropriation requirements.

Public Works' financial structure is more complex than many other departments. Of the $6.3 billion total budget I referenced, $1 billion is needed to deliver on our core program of central purchasing and banking, public accounts, and payroll and pension services.

Another $2.4 billion is required to pay rent, fit-up, and utilities for government-wide accommodations; Receiver General treasury functions, such as banking fees paid to financial institutions and the purchase of cheques and envelopes; and translation services for Parliament.

The $451 million is capital needed to invest in Government of Canada buildings and infrastructure.

Lastly, $2.4 billion is related to providing other services, such as auditing, consulting, translation, and telecommunications and informatics services, to client departments.

In comparison to last year, the budget for 2010-11 represents an increase of $456 million, primarily related to three major initiatives. First, $224 million is to deliver on our commitments under the government's economic action plan. Second, $90 million is for price increases for expenditures such as rent and utilities. Lastly, $73 million is for parliamentary precinct projects.

Madam Chair, as the backbone of the government's everyday operations, PWGSC has also made key contributions to activities of national importance over the last year. First and foremost, PWGSC has played and continues to play a key role in the Economic Action Plan. Under Budget 2009, the department received direct investment funding of $431 million over two years, of which $332.4 million is for repairs and renovations to PWGSC-owned buildings across the country.

At the end of the two-year action plan, the department will have accelerated its infrastructure investments in many of its assets across the country while stimulating the economy. As well, Public Works and Government Services Canada is supporting other departments and agencies, such as Fisheries and Oceans, Natural Resources Canada, and Parks Canada in fulfilling their own obligations under the economic action plan.

Given the size and scope of what we do on behalf of the federal government, Public Works and Government Services Canada is, as should be expected, subject to rigorous scrutiny. We have a solid working relationship with the Office of the Auditor General. Our action plans, in response to recommendations, are usually put in place before the reports are even made public.

Indeed, reflecting our own culture of continuous improvement, the department rates highly on a number of other measures as well. For instance, on the Treasury Board Secretariat's measure of good management practices throughout the government, known as the “management accountability framework”, or MAF, Public Works and Government Services Canada ranks amongst the best.

Public Works' most recent rating by the Commissioner of Official Languages was 4.5 out of 5, or a B rating. Moreover, we scored a blue--which is the highest rating under the management accountability framework “people management” performance indicators--on employee engagement, employment equity, and performance management, .

Madam Chair, we are proud of our ever-strengthening management record, and we strive hard every day to keep getting better at doing what we do. Our goal is clear: it is to excel in our mission to deliver high-quality programs and services that meet the needs of federal organizations while ensuring good value for Canadians.

This concludes my opening remarks. I would be more than happy to take your questions.

[The Chair, Liberal, Yasmin Ratansi]

Thank you very much.

We'll start with the first round of questions.

Ms. Hall Findlay, I understand you're going to be sharing some time with Ms. Coady.