Evidence of meeting #37 for Government Operations and Estimates in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fintrac.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

Blanchette  Acting Deputy Director, Corporate Services, Financial Transactions and Reports Analysis Centre of Canada
Moor  Chief Financial Officer, Department of National Defence
Kendall  Senior Advisor, Financial Crimes and Security Division, Department of Finance
Reade  Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Davis  Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada
Hammond  Chief Financial Officer, Department of Public Works and Government Services
Hanspal  Assistant Deputy Minister, Human Resources Branch, Department of Public Works and Government Services

12:35 p.m.

Chief Financial Officer, Department of Public Works and Government Services

Michael Hammond

As part of the comprehensive expenditure review exercise, we looked very carefully at the areas where we needed to deliver services to Canadians. There are areas where we did not look to reduce, such as in our pay processing area, which is critical and is already experiencing delays. We recognize that, and we didn't look to reduce in those areas. We focused on the areas where there were lower-value tasks that we would be able to adjust to achieve efficiencies through new processes.

12:35 p.m.

Conservative

The Chair Conservative Kelly McCauley

Thanks, Mr. Hammond. That's her time.

Go ahead, Ms. Rochefort.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Thank you, Mr. Chair.

I want to reconcile the answers that you provided to Mr. Gasparro and now to Madam Jansen. Give a statement, maybe, on your answers to my colleagues.

I'd like to be able to tell my constituents the following. I'd like to know if this is correct. I'd like to say to them that the PSPC targeted spending cuts will improve efficiency and service delivery for Canadians—for them, in my riding of Nipissing—Timiskaming.

Would that be correct?

12:35 p.m.

Chief Financial Officer, Department of Public Works and Government Services

Michael Hammond

Yes, absolutely.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Absolutely. Okay.

12:35 p.m.

Chief Financial Officer, Department of Public Works and Government Services

Michael Hammond

PSPC is focused on achieving efficiencies through changes to business processes and implementing new technology to become more efficient and deliver our services for less money.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Okay.

In that same line, I'd like to make sure I understood correctly and that I can confirm that the actions PSPC is taking to support public servants—I heard you speak to that a moment ago—and industry partners will keep the disruptions during the transition to a minimum overall.

12:40 p.m.

Chief Financial Officer, Department of Public Works and Government Services

Michael Hammond

Absolutely. As we go to implement our CER reductions, we are taking a very cautious and methodical approach to ensure that there is a continuance of services and not a deterioration in the services that we provide to both our client departments and Canadians.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Okay. Thank you for that.

Mr. Davis, because I missed some of your answer, I hope you don't mind if I come back. I want to make sure that there was clarity on the issue of external consultants. Could you explain what you described to Madame Gaudreau in terms of what the practice will be going forward with IT consultants? If there is a diminished role for IT consultants in the work you do, how does that impact the overall reliability of IT services for the government and for Canadians?

12:40 p.m.

Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada

Scott Davis

When you look back through the refocus in government spending, in the first tranche, as I said in my opening statement, we reduce by $81 million in professional services. A good part of the professional services that were onboarded during the years of the pandemic escalated our use of professional services for surgical reasons, to deploy telework, remote work and all those other capabilities. We've now modernized some of those services that I mentioned to the other member. We've completed those transactions, and now we're on a downward slope of returning to fewer legacy systems and moving towards more modern systems that we implemented throughout the pandemic, when we were asked to go fast and enable things like remote working.

I'll go to one point to help my colleague. We at Shared Services Canada also do some procurement activities and, from a generative AI perspective, we've put in place recently for all government departments a generative AI tool that includes three Canadian vendors. That enables all departments to leverage generative AI tools like the one my colleague mentioned, the Microsoft one, but there is a series of Canadian vendors as well in that mix.

As well, we've developed internally a tool called CANChat, which we've deployed now on a Canadian hyperscaler to enable AI capabilities inside the Government of Canada for all public servants. Collectively, we work together, and collectively we're enabling public servants to be more efficient using AI tools.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

On that note, as we move forward, how will you be able to measure the impact of AI tools on improved services and efficiency, compared to what we have now?

12:40 p.m.

Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada

Scott Davis

In some cases, for my department, we're an enabler to other departments, so we manage the infrastructure for ESDC, PSPC and several other departments. These tools will be really at the QOL phase, to enable better service to Canadians ultimately. We will utilize the tools internally for ourselves as a department to be more productive in primarily project management and a series of other transactional tools to enable better service internally that will in turn enable our departments and our partners to render better services to Canadians.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Through procurement, you provide advice to other departments on tools that they will be using, AI tools and other types of tools from an automation perspective, on whether those are the right tools and on whether they're doing their job, in other words.

12:40 p.m.

Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada

Scott Davis

In the example of a generative AI tool, where there are five different vendors in that space, we've started to make use of use cases, and we're providing departments advice on the best type of tool for each use case. It will be done through a competitive process, but we're building a pool of capabilities that will enable departments to be informed as a buyer of the tools that can enable them to offer better services.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Thank you.

12:40 p.m.

Conservative

The Chair Conservative Kelly McCauley

You're right on time, thanks.

Madame Gaudreau, you have the floor.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

Thank you, Mr. Chair.

It is important to have reliable partners and shared values.

Will Canada work with the European Union, which is, in fact, shifting toward digital sovereignty?

Are we doing that?

April 23rd, 2026 / 12:40 p.m.

Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada

Scott Davis

Thank you for the question.

Yes, absolutely.

We have worked on several occasions with other countries that have made some progress in this area, with the aim of reducing our dependence on certain suppliers or countries and achieving self-sufficiency.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

All right.

Mr. Chair, in my opinion, there have been discussions and we are in agreement.

Last Monday, I tabled a motion to have the president and CEO of Canada Post come and meet with us for two hours.

I am getting more and more calls from people in my riding who are sharing their concerns with me. We received the communication, which I would describe as terse, and which our people weren't happy with. You will see that we're all in agreement on holding this meeting with the president and CEO of Canada Post.

12:45 p.m.

Conservative

The Chair Conservative Kelly McCauley

I think we've all agreed that—

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Yes.

12:45 p.m.

Conservative

The Chair Conservative Kelly McCauley

We'll pass it on UC.

(Motion agreed to [See Minutes of Proceedings])

I think our amazing clerk has seen into the future and has already taken such steps. We'll advise on an available date.

Continue. You have about one minute.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

Excellent.

When can I expect answers to the questions I asked during my first round?

You were asked to provide more information on a few of them.

Can you commit to providing the committee with the answers by next week at the latest?

12:45 p.m.

Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada

Scott Davis

We'll work hard on it, but I think so.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

I know you are going to work hard, but will you provide them by next week?