Government Operations Committee on June 7th, 2016

[The Chair, Conservative, Tom Lukiwski]

Ladies and gentlemen, I believe we have quorum.

Before I start with our guests from the Privy Council Office, for the benefit of committee members, I'll need about 15 minutes for committee business before we adjourn today to deal with a number of items.

This will be a truncated meeting, and because of votes, we'll probably only have about an hour and a half between the witnesses from the Privy Council and the Public Sector Pension Investment Board. Would you like the full hour with the Privy Council Office? That would only leave about half an hour for the Public Sector Pension Investment Board, or would you like 45 minutes each?

[Yasmin Ratansi, Liberal, Don Valley East, ON]

I'd like 45 minutes each.

[The Chair, Conservative, Tom Lukiwski]

Mr. Lucas, welcome, and please introduce your colleague. I understand you have a 10-minute opening statement. I'd like you to keep that as brief as possible and then we'll have about half an hour's worth of questions for you.

[Stephen Lucas, Deputy Secretary to the Cabinet, Plans and Consultations and Intergovernmental Affairs, Privy Council Office]

Thank you, Mr. Chair.

Good afternoon, members of the committee. Thank you for inviting us to speak today.

I'm accompanied by Karen Cahill, executive director, finance, planning and administration directorate, and deputy chief financial officer at the Privy Council Office.

It is a pleasure to be here today, and I look forward to answering your questions with regard to the PCO 2016-17 supplementary estimates (A).

In the supplementary estimates, PCO is seeking $23.9 million for the following items:

First, PCO is seeking $18.9 million to support our information technology modernization project. A substantial portion of the new funding is required to make much-needed investments in our information technology environment, including overdue life-cycle updates to PCO's IT systems. PCO has embarked on a transformation initiative to modernize and expand the organization's capacity with a view to improving the sharing of information with Canadians, as well as federal, provincial, and territorial government organizations.

PCO is increasing its investments in its IT infrastructure. Our current aging infrastructure has an impact on how we work and, in order to better serve Canadians, cabinet ministers and the Prime Minister, investments are needed. We need to be able to respond in a nimble and agile way with Canadians who want to use technology to connect with their government in an ever changing digital landscape.

The transformation initiative will touch on all areas of the department and can be summarized in the following activities:

First, there is the replacement of aging IT infrastructure that supports PCO business solutions and systems to better align with government technology and security standards. As an example, we are planning to replace existing desktop computer systems with mobile technology to enable PCO employees to work anywhere, any time, on our protected network. Flexible and dynamic workplaces are now the expectation, and as such, help to increase our impact, productivity, and efficiency.

Second, we propose to introduce new technologies such as business intelligence and collaboration and information management tools to improve PCO's ability to analyze business information and enable PCO employees to work collaboratively, and simultaneously share or exchange business information.

Third, we will modernize web tools that support new, open and transparent processes for government appointments, including for the appointment of senators.

Fourth, there is the implementation of e-cabinet which will introduce 21st century tools to facilitate automated management and communication of cabinet documents in a secure digital and controlled environment. An additional $0.5 million will be invested to support identification of business requirements and a new process and delivery model for the management of cabinet meetings using this technology.

Second, PCO is seeking additional funding of approximately $3.5 million to support Government of Canada communications priorities. This includes: support to conduct public opinion research to better inform our policies, programs and services to Canadians; support to first ministers' meetings and associated federal, provincial and territorial activities; and support for engagement activities, including a digital-by-default approach to how we communicate and interact with citizens.

Across government, we are transforming how we communicate with Canadians to remain relevant in the current environment in which we operate.

Increasingly, Canadians are connecting by using digital communications. We are investing resources in our digital presence to deliver increasingly complex methods of communication, including live streaming and rich digital content.

These investments will facilitate the coordination, production, and distribution of richer, more dynamic content for posting on our websites, including the official Prime Minister of Canada social media accounts. This will include videos, photo-shareable social media, graphics, and interactive story lines pertaining to events in Canada and events abroad.

Part of the budget 2016 investments will fund the staff required to create this rich interactive content. This funding includes specialists in videography, video editing, and production. Of course, it goes without saying that we will need the capacity to publish rapidly at any time, pertaining to issues occurring in Canada or globally, to support the Prime Minister both domestically and internationally.

It's important to note that building and maintaining a website in the federal government environment is more complex and resource intensive since there is a number of statutory and regulatory obligations that must be respected, including those pertaining to official languages, accessibility, and interoperability across a wide range of devices, browsers, and platforms. Additionally, the PM website is not simply a static website. It's a living database and repository of all official products and communications that must be updated and maintained daily.

In terms of research, the Communications and Consultations Secretariat will undertake an expanded research program to ensure the Government of Canada has a better understanding of the views and concerns of Canadians when making decisions on policy development, programs and services. This will involve ongoing public opinion research data collection to allow the Government of Canada to listen to Canadians on various issues and priorities that affect them.

We will also ensure that all public opinion research contracted by PCO will be made public in a timely matter.

The program will also provide an ability to work across departments, in particular on more urgent requests, and enable partnering and elimination of duplication in this area of research.

Finally, PCO is seeking $1.5 million to continue supporting the process for creating a non-partisan, merit-based Senate appointment process, announced by the Prime Minister on December 2015. Under the new process, an independent advisory board for Senate appointments was established on January 19, 2016 to provide advice to the Prime Minister on proposed candidates.

The second phase that PCO is supporting will implement a permanent process to fill the remaining and future vacancies, and will include an application process open to all Canadians. We are seeking funding to support the operations of the independent advisory board in its work to provide advice and recommendations for the Prime Minister's consideration.

Mr. Chair and members of the committee, I'd like to thank you for the opportunity to explain the initiatives related to the Privy Council Office's 2016-17 supplementary estimates (A). We'll be pleased to answer your questions.

[The Chair, Conservative, Tom Lukiwski]

Thank you very much, Mr. Lucas.

We'll now go into seven-minute rounds. We'll start with Mr. Whalen.

[Nick Whalen, Liberal, St. John's East, NL]

Thank you, Mr. Chair, and thank you both for coming today. It's good to have this opportunity to work through these estimates questions with you.

With respect to the information technology modernization project, we're in the process of doing an investigation and a report into Shared Services Canada, and we're wondering what role, if any, Shared Services Canada is playing in this information technology modernization project within PCO.

[Stephen Lucas]

Thank you for the question.

Mr. Chair, Shared Services Canada is working with the Privy Council Office in several regards in this project. In the first instance, they are supporting us on the procurement and installation of networks and systems, and they also participate in a joint governance model that not only engages the Privy Council Office but also other key business clients, including Treasury Board Secretariat, Communications Security Establishment, and Public Services and Procurement Canada.

The infrastructure services they provide support overall project management and they jointly lead with us on the delivery of projects and share resources and procurement contracts as appropriate, so it's indeed a joined-up effort and we work very closely with them to ensure seamless delivery.

[Nick Whalen, Liberal, St. John's East, NL]

In this $18.9 million in additional funding, what's the overall budget for the IT modernization project? Does it include any existing allocations or existing appropriations from the main estimates?

[Stephen Lucas]

I can certainly speak to the overall funding over the course of five years that was allocated in budget 2016 that will support this. It will total, over that period, $57.7 million. We will be returning to seek approval through the supplementary estimates process again next year.

In terms of existing allocation, Karen will take the question.

[Karen Cahill, Deputy Chief Financial Officer, Corporate Services, Privy Council Office]

In terms of existing allocation, PCO will reinvest $1 million per year toward its IT modernization. We are contributing from our existing funding $1 million.

[Nick Whalen, Liberal, St. John's East, NL]

Are there any other transfers you routinely make to Shared Services Canada in respect of other aspects of IT services, or is that your total overall envelope of engagement with them?

[Karen Cahill]

With respect to the $18.1 million, the engagement with Shared Services Canada is for $9 million. That will include the provision of professional services, and that will include the purchase of equipment, hardware, software, etc.

[Nick Whalen, Liberal, St. John's East, NL]

Okay. For the other $9 million, are there organizational or operational changes within PCO, new groups or departments that are being formed with the balance of the money, and how has the internal structure of PCO changed as a result of this initiative?

[Stephen Lucas]

The other non-information technology investments include funding, which I noted in my opening remarks, to support us in the communications realm. We are undertaking a substantive overhaul of our work to integrate digital communication technology and approaches to better support the Prime Minister, the government, and Canadians in having access to information and to engaging in two-way dialogue, for example, through engagement and consultations, as well to support the work of the government in regard to strong collaboration and relations with provinces and territories, including first ministers meetings.

In addition, there is non-IT investment supporting work to develop the e-cabinet system, which married with the technology will allow a fundamental change in the way cabinet documents are created, and ministers can review them. And they are securely transmitted and utilized.

[Nick Whalen, Liberal, St. John's East, NL]

In relation to the joint governance model with Treasury Board, PCO, and Shared Services Canada, are you able to provide us any additional information on who chairs those committees or the dispute resolution mechanisms that might be involved in escalation of problems that might occur? Are those all identified in the organizational documents that have been prepared to describe that relationship?

[Karen Cahill]

Actually, as part of the governance, there are multiple committees. The governance, of course, is like merging with the PCO overall corporate governance. At the top, there is a committee of DMs and ADMs. The president of Shared Services Canada, the CIO of the Treasury Board Secretariat, as well as the deputy clerk of the Privy Council, and the ADM corporate services all are part of the governance that we have established.

Of course, below the governance, there are DG committees, ADM committees, as well as working-level committees. The oversight governance is done by the CIOB, the CIO branch at TBS, which plays a strong oversight role in the projects that we have undertaken.

[Stephen Lucas]

I would just note, if I could, Mr. Chair, that the joint project team established and supported by this governance is, again, joint between PCO and Shared Services Canada, and is under the overall direction of PCO's chief information officer.

The overall intent here, I think, is to ensure strong oversight to keep the projects on time and on budget.

[Nick Whalen, Liberal, St. John's East, NL]

Excellent. When was this governance model created? Would you be able to provide the committee with copies of the overall governance model and process? I think it would assist us in our Shared Services Canada report, as well.

[Karen Cahill]

Certainly.

[Nick Whalen, Liberal, St. John's East, NL]

When was the governance model developed?

[Karen Cahill]

The governance model was developed over the last six months and has been in effect since we established the project.

[The Chair, Conservative, Tom Lukiwski]

Thank you very much.

Mr. Blaney, for seven minutes.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Thank you very much, Mr. Chair.

Let me once again welcome the officials from the Privy Council Office appearing before the committee today.

We had the opportunity to welcome you on May 3. One month and a few days later, we are seeing you today regarding supplementary estimates (A). At the time, we talked about the main estimates and an amount of $118 million, including $1.4 million for creating a site, which you said was non-partisan, for the appointment of senators.

Today, are you asking for funding for additional spending on the Senate appointment process?

[Stephen Lucas]

The amount of $1.5 million earmarked for 2016-17 to support the Senate appointment process and the work of the independent advisory board is the same amount as the one I mentioned on May 3. The funds are also used for the website, as you said, but also for a small secretariat of five PCO employees to—

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

My understanding is that the amount of $1.4 million was supposed to be used for setting up the secretariat and now you're requesting additional funding to create the website. Is that correct?