Good morning and thank you, Mr. Chair, and members of the committee.
My name is Alex Lakroni and I am the chief financial officer of Public Works and Government Services Canada, PWGSC. I am pleased to join the committee today to speak about the department's 2012-13 supplementary estimates (C).
I am accompanied by my colleagues, John McBain, the assistant deputy minister of real property branch, and Brigitte Fortin, the acting assistant deputy minister of accounting, banking and compensation branch of PWGSC.
Let me start by restating for the committee members that PWGSC is the government's principal common service organization providing government departments and agencies with services in support of their programs. These include: procurement; office accommodation and facilities; architectural and engineering services; construction, maintenance, and repair of Public Works and federal real property; translation and related services; and pay and pension services.
The Minister of Public Works and Government Services serves as the Receiver General for Canada and has authority for the administration of pay services for federal employees. The minister is also responsible for maintaining the Public Accounts of Canada.
PWGSC's vision is to excel in government operations, by delivering high-quality services and programs that meet the needs of federal organizations while ensuring sound stewardship on behalf of Canadians.
PWGSC plays an important role in the daily operations of the Government of Canada. As its principal banker, accountant, central purchasing agent, linguistic authority and real property manager, the department manages a diverse real estate portfolio that accommodates 269,000 federal employees in 1,819 locations across Canada, including the Parliament buildings. It injects more than $14 billion annually into the Canadian economy through government procurement. It prepares the annual Public Accounts of Canada and manages a cash flow of more than $2 trillion a year. It translates more than one million pages of text on behalf of other federal organizations, and provides translation and interpretation services for Parliament and its committees.
In supplementary estimates (A) this year, PWGSC requested $237 million primarily for the rehabilitation of the Parliament Buildings. In supplementary estimates (B) this year, PWGSC did not request any additional funding. At that time the department explained that existing appropriations were sufficient to cover any additional program requirements and deferred its request for funding until the final annual estimates exercise. This deferral is a reflection of the department's emphasis on responsible budget management practices.
The supplementary estimates (C) request $198 million for PWGSC. However, this request was reduced by $50 million as a result of funds available within PWGSC and transfers between departments, bringing down the total net request to $148 million.
The first notable item in these estimates is $85 million for real property. These funds are required to cover non-discretionary costs in utility, rent, and fit-up incurred during renovations of crown-owned and leased office buildings.
Another $33 million is requested for office accommodation for various departments and agencies that have received approval from governments, mainly for renewed priority programs such as those related to aboriginals, agriculture, security, and national defence.
PWGSC is also seeking access to $32.5 million to deliver a series of projects on various engineering assets such as dams, bridges, and crossings. Examples of projects delivered by PWGSC include work on the Esquimalt Graving Dock and the Alaska Highway.
Access to $23.2 million in funding is being sought for modernization of pay services. The funds will be used to complete the project definition phase and to commence the implementation phase of replacing the 40-year-old government pay system.
The last of the notable items is $15.3 million needed to consolidate all pay administration services into one centre of expertise in Miramichi, New Brunswick, ensuring the sustainability of pay administration and contributing to a more effective and efficient public service that offers better value for money for Canadian taxpayers. As announced in budget 2012, these estimates also return funds as part of PWGSC's contribution to the deficit reduction efforts.
Let me now provide an overview of the impact of these estimates on PWGSC's budget. Taking into account these supplementary estimates (C) for 2012-13, PWGSC's total gross budget would become $6.3 billion. As the department receives $3.5 billion in revenues from other government departments, once these revenues are taken into account, PWGSC's net appropriation is reduced to $2.8 billion.
I'll draw your attention next to the department's operating vote, which has two basic components, totalling $3.6 billion: $1 billion is needed to deliver on our core programs, such as central purchasing and banking, public accounts and payroll and pension services, and internal services; and, $2.6 billion is required to pay for rent, fit-up and utilities for government-wide accommodation, Receiver General functions like payments, and translation services to Parliament. PWGSC also has a capital vote of $578 million, primarily to invest in Government of Canada buildings and infrastructure.
I am pleased to report that PWGSC has shown leadership in the area of sound financial management and has instilled a culture of budget management excellence throughout its various programs. The department's forecasting accuracy between December 31 and year-end for the last two years exceeded 99%. PWGSC has also strengthened its oversight role over financial matters, and rigorous practices have yielded economies, such as in travel and hospitality.
I am pleased to say that these economies were realized while providing comprehensive support to our employees as the department reduced the size of its workforce. Overall, 96% of employees affected by the first and second years of strategic review have secured alternative employment or have left the public service. In addition, of the employees affected in April 2012 by the implementation of the deficit reduction action plan, 92% have already been placed or have left the public service.
In June 2012, our department implemented additional adjustments further to changes in business volumes that affected 86 employees. Of those, 90% have already been placed or have left the public service. PWGSC has accomplished this transformation largely through the efforts of our departmental priority placement process.
Finally, Mr. Chair, I want to say that our departmental efforts to support our most important asset—our employees—have been recognized for a second year in a row. PWGSC has once again been chosen as one of the top employers in the National Capital Region for 2013. The National Capital Region's Top Employers is an annual competition to recognize the Ottawa-area employers that lead their industries in offering exceptional places to work. We are proud of this award, and we are committed to maintaining our standing as an employer of choice.
Members of the committee, thank you for your attention. My colleagues and I would be pleased to take your questions.
Thank you.
