Government Operations Committee on March 26th, 2026

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Thank you for a very important question. Our new government was elected on the commitment to build Canada strong, to secure our borders and to secure our communities. Given how quickly the global environment is changing, Treasury Board has introduced vote 50.

I'll come back to vote 50. The most important part is that the Prime Minister announced today that we have met the 2% spending to meet our NATO commitment. In 2025-26, the estimates include over $47.8 billion in investments for the Department of National Defence. The 2026-27 main estimates also propose over $48 billion for defence to support modern equipment, training and co-operation with international partners. The estimates introduce new central vote 50 to provide flexibility for unforeseen national defence or security needs. Funding would require TB approval, and all allocations would be reported in the next estimates. That is so there is a strong control in place for transparency. Any access to these funds will require Treasury Board approval.

Again, I can just mention that it follows the same process as other funding decisions. Transparency is key. The use of these funds will be reported through supplementary estimates or year-end reporting so that parliamentarians can clearly see if and when the funding is used.

[Vince Gasparro, Liberal, Eglinton—Lawrence, ON]

Thank you for that answer.

I'll move on to another topic. Over the past couple of meetings, we've had Treasury Board officials here. They've discussed how our new government's red tape review is unfolding. You briefly touched on it in your opening remarks. It's important to find a balance between necessary regulations that protect the health and safety of Canadians and regulations that make it harder for Canadian businesses to operate and, more specifically, generate revenue.

According to the Canadian Federation of Independent Business, the combined cost of regulation to businesses from all three levels of government was estimated at $51.5 billion in 2024, with approximately $17.9 billion attributed to red tape. Additionally, the CFIB found—this is fairly obvious—that regulations hurt small businesses with five employees or less much more than they hurt large corporations.

Can you talk to me about the red tape review our new government has introduced and how it will help with productivity and support small businesses across Canada?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Thank you for that question.

As part of the Prime Minister's mandate letter, I launched the red tape review last summer, asking ministers with regulatory responsibilities to identify ways to cut unnecessary red tape, streamline services, reduce duplication and lower costs for Canadians and businesses. Since then, the departments have identified approximately 500 initiatives, many of which are already under way, and we will be publishing a progress report this spring to show what has been delivered so far.

Building on that work, we launched a horizontal review in December to look across government and identify further opportunities to streamline regulations and improve efficiency. This includes working with regulators, industry and provinces and territories to find practical solutions.

Our focus is clear: reduce unnecessary red tape, keep Canada competitive, lower costs for Canadians and ensure the regulatory system keeps pace with today's economy so we can build the strongest economy in the G7.

[Vince Gasparro, Liberal, Eglinton—Lawrence, ON]

I'll wait for the subsequent round.

Thank you, Mr. Chair.

[The Chair, Conservative, Kelly McCauley]

Thanks.

Madame Gaudreau, go ahead.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Thank you very much, Mr. Chair.

President of the Treasury Board, given that you are the comptroller and that you are responsible for overseeing public expenditures, I would like to ask you a few questions seeing as how we have not yet received any answers.

I would like to know how much money you have allocated to Cúram and Phoenix to date.

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

This is a technical question.

I'm going to ask my deputy to respond to this question, please.

[Bill Matthews, Secretary of the Treasury Board of Canada, Treasury Board Secretariat]

We can provide a detailed response to the committee, Mr. Chair.

However, I would like to clarify that there are in fact two systems. First, there is the Phoenix pay system and, every year, we allocate funding to Public Services and Procurement Canada so that it can manage that program. Second, we are in the process of developing a new software to replace Phoenix in the coming years and there is also a budget for that project.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

I don't have much time, so I would like to get the details.

[Bill Matthews]

You want the details for both systems? We can do that.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Yes, I definitely want the details on both systems.

I'd like to ask another question. Why is the Department of Veterans Affairs not being protected like the RCMP and the Department of National Defence?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

I'm sorry. Can I ask my colleague to repeat the question, please?

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Okay. I'll start again.

The RCMP and the Department of National Defence have been protected in the budget, but the Department of Veterans Affairs has not. It has not been protected. Why is that?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

As I mentioned in my opening remarks, we owe veterans for their sacrifice and their contribution. They have made many sacrifices for the freedom that we enjoy today. They are protected. We are doing our level best to support them, and we'll continue to do that.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Yesterday, we heard from the minister, Mrs. McKnight. She told us that her department was doing the best it could with what it had, but that hundreds, if not thousands, of cases had to be dealt with directly through cabinet. That is a clear indication that budget cuts cannot be made. On the contrary, if we care about our veterans and are truly aware of their contributions, then we clearly cannot make budget cuts.

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Thank you for the question.

In those comprehensive expenditure reviews, every department was asked to find savings of 15% where the programs are not productive, not meeting their objectives or underperforming. Some organizations were reduced to 2%. Some were organizations supporting indigenous Canadians, indigenous people, or defence, RCMP and CBSA, including veterans. Where there are duplications, where there's underperformance of any department or where they're not meeting objectives, that's where we're reassigning and then reinvesting into the priorities that matter most. This is one of those priorities we have.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Does Treasury Board have to approve the use of external firms to make up for a certain lack of expertise in the public service? Does that fall within your purview?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Thank you for the question.

Mostly, departments have their authorities to move forward on the contracts. There are many services. There's a management consultant, or there are services, for example, in certain areas, that help—

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Do they consult you? Are you the one who approves that?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Not everything will come to the Treasury Board, because ministers have authorities to get into those contracts. If their authority falls under the minister's authorities, they can move forward on their own.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Here is my last question: Do the departments have to have their staff reduction plans approved?

[Shafqat Ali, Liberal, Brampton—Chinguacousy Park, ON]

Thank you.

For that department, they put forward their plans, and their deputy heads are responsible for the reduction. Since it's technical, I'm going to ask my deputy to respond to that question.

[Bill Matthews]

Thank you.

I will keep my answer brief. Every department approved the proposals to cut spending by 15% in most departments. The government has already made a lot of decisions, but now it is up to the deputy ministers and other managers. It is their responsibility to implement the government's decisions.

Every department gave its approval.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Thank you very much.

[The Chair, Conservative, Kelly McCauley]

Thank you.

Next, we have Mrs. Jansen, please.