Government Operations Committee on May 5th, 2026

[The Chair, Conservative, Kelly McCauley]

Good afternoon, everyone.

Welcome to meeting number 39 of the House of Commons Standing Committee on Government Operations and Estimates, known everywhere as the mighty OGGO and truly the only committee that matters.

Before we start, we have to elect our new vice-chair, and I'm going to turn things over to our clerk very briefly.

Go ahead, sir.

[The Clerk of the Committee, Marc-Olivier Girard]

Thank you very much, Mr. Chair.

Pursuant to the Standing Orders, the first vice-chair must be a member of the governing party.

I'm now prepared to receive motions for the first vice-chair.

Go ahead, Mr. Gasparro.

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

Thank you.

I nominate Jean-Paul Danko to be the first vice-chair.

[The Clerk]

It has been moved by Mr. Gasparro that Mr. Danko be elected as first vice-chair of the committee.

Are there any further motions?

Seeing none, I will put this motion to the committee.

Is it the pleasure of the committee to adopt the motion?

(Motion agreed to)

[The Clerk]

I declare the motion carried and Paul Danko officially elected first vice-chair of the committee.

Thank you, Mr. Chair.

[The Chair, Conservative, Kelly McCauley]

Thank you, Mr. Clerk.

Mr. Danko, congratulations.

We're going to get right to our meeting. We have the minister only until 4:35, so we're going to get right to the opening statement.

Colleagues, I have a couple of things.

As we're aware, I normally let our speaking engagements go a bit long if we're getting a good response, but because we're tight on time, I'm going to cut everyone off. Please watch your own clocks to avoid being cut off.

Very quickly, there is something about points of order. We're getting into an area of a lot of debate about points of order. So that we're not tying up our committee time, I'll ask everyone to please stick to procedural points of order. If you have a debate issue in which you disagree with the other side, save your speaking time to address that so we don't tap into our committee time.

We'll go right to Minister Lightbound.

Welcome back, sir. The floor is yours for five minutes, and speak quickly so we can get you out on time.

[Joël Lightbound, Liberal, Minister of Government Transformation]

Mr. Chair and committee members, thanks for having me again at OGGO. It's a pleasure to be here.

Thank you for having me here today to discuss the Main Estimates 2026‑2027 for both Public Services and Procurement Canada, or PSPC, and Shared Services Canada.

We often talk about programs, policies or decisions, but behind all of that, there's something more basic: the very operation of the government. Let's talk about what concerns us.

In the case of PSPC, I'm referring to payroll for public servants, the management of buildings and, obviously, the awarding of contracts. For Shared Services Canada, I'm referring to operating IT systems.

That's exactly what we do every day, at both PSPC and Shared Services. These are not just services; they are essential services that are necessary for the proper functioning of government.

For 2026-2027, PSPC is forecasting a budget of $5.9 billion, a decrease of $1.3 billion. As to Shared Services Canada, we are forecasting a budget of $2.36 billion, a decrease of $128.6 million. These numbers could change, but they show one thing: We are making choices.

The context is demanding, expectations are high, costs are rising and the risks are very real. In the face of that, our responsibility is simple and clear: to continue providing services to Canadians and to do so diligently.

At PSPC, the biggest change as I said is a decrease of $1.2 billion, which is essentially related to infrastructure projects. A number of the major projects under our responsibility have in fact been completed. They are now up and running and delivering results.

Still at PSPC, we are also reducing operating expenses by $97.5 million. That means less red tape, simpler processes and a refocusing on my department's essential mission.

There are some things that we cannot slow down, though. One example is payroll. Behind every transaction, there is a person, a public servant who serves Canadians at our airports, at our ports, on our bases, in our offices across the country. PSPC is responsible for payroll for more than 430,000 employees, in more than 100 organizations. It's a huge and essential responsibility. It's also a matter of respect for the people who run the government every day to ensure that they are paid correctly and on time.

Those expenditures include a decrease of $57.3 million for the current system, but at the same time, we're investing $67.6 million to create the new system. Our priority is for public servants to be paid correctly and on time, and for us to finally give them a reliable system that reflects the considerable work they do for all of us.

As to Shared Services Canada, its role is just as essential. As you know, it's the digital infrastructure of government: the systems and networks. Nowadays, I would even say it's mainly cybersecurity. Despite a decrease of $128.6 million, the department is still investing where it counts: $63.9 million for basic computer services, and $37.5 million to better detect and counter cyber-threats.

We can certainly come back to that in the question and answer period, but the cybersecurity environment has changed a lot and continues to evolve. That requires us to adapt to counter the ever-increasing threats to our networks and systems.

Basically, the exercise is easy to summarize. We're finding efficiencies where we can, protecting what's essential, and investing where the risks are growing to make sure we're ready for any eventuality. While these systems are invisible to many of us, they make government operations run smoothly. As a result, many Canadians depend on them.

I won't take any more time. I know that some questions have already been prepared. Thank you very much for your attention. I look forward to your questions.

That said, I would like to take a few seconds to mention the presence, from Public Services and Procurement Canada, of my deputy minister, Arianne Reza, accompanied by Michael Hammond, chief financial officer, from Public Services and Procurement Canada. Similarly, Scott Jones and Scott Davis from Shared Services Canada will be here to support me during my time with you.

Thank you.

[The Chair, Conservative, Kelly McCauley]

Thank you, Minister.

We'll start with Mrs. Block, for six minutes, please.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much, Chair.

Welcome, Minister and departmental staff. It's good to have you back. I look forward to hearing what you have to share with us, based on the questions.

Minister, you appeared before this committee last year. You said your department was preparing for a comprehensive review of all current and planned federal contracts, to identify cost reductions. How much have you identified in savings from that exercise?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Thank you very much, Mrs. Block.

I'm not sure if this is exactly what you're referring to, but there has been a comprehensive review of spending across all departments. For our part at Public Services and Procurement Canada, we found potential savings of $642 million over four years and $190 million in the coming years, so that remains to be seen.

That is what was identified in the expenditure review. The idea was to see where we could find efficiencies and in some cases centralize certain functions within the department.

I think this shows the government's willingness to spend less and invest more, as said, and thus to ensure sound management of public finances.

To summarize, in terms of the comprehensive spending review, in my department, there are $642 million in savings over four years and $190 million in the works.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

It's less spending, yet the deficit remains the same or has even grown.

Minister, we heard from Canada Post that, given the government's direction, they are moving forward on the transformation plan that they submitted to you quite a number of months ago. You are the minister responsible for Canada Post. Were you the individual who approved the first phase of Canada Post's plan? If so, why was your name not associated with the decision? It's my understanding that you put out several press releases. In fact, I recall many of them in which you outlined that the situation was dire, but we have not heard anything from your office on this.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

There are a number of points to address.

It is true that Canada Post Corporation is part of my portfolio. Nonetheless, I am not responsible for the day-to-day operations of Canada Post or its operational decisions. I set the broad directions and in September I issued a change in direction for Canada Post by saying that, from now on, the corporation would no longer be subject to the moratoriums that have been in place for decades and that prevent it from making the necessary changes to avoid losses. Those losses have been in the order of $6 billion since 2018. We also want to avoid the need for repeated cash injections from the federal government just to keep the lights on at Canada Post.

What I told the corporation was, first, that the moratorium on the closure of rural post offices was being lifted and, second, that the moratorium on the installation of community mailboxes was being lifted, among other things. That's what Canada Post has started doing.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I want to interrupt you there, Minister, because it was reported on—the expectations that you outlined for Canada Post last fall. We're very aware of what you called on it to do. I recognize that it is an arm's-length corporation. However, you told it what it needed to do in order to become solvent, and you required a strategic plan, or a transformational plan, that you would then approve so that it could move forward. While it is an arm's-length corporation, you've held it somewhat hostage with regard to being able to move forward by first not approving a strategic plan for years and now PSPC.... Over five years, a strategic plan was not approved. Now we've been waiting to hear if its transformational plan has been approved, and we have not heard that yet.

I'm going to ask you another question. How many postal workers will be laid off as a result of the transformational plan?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

I want to go back—

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I just need a number.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

I can't give you one, because, as I said, I'm not responsible for Canada Post's operations. I can say one thing, though: Yes, it is true that I have been very involved in Canada Post's affairs, because, in my opinion, it is unacceptable for a corporation to lose more than $10 million a day and for us to be forced to inject money into Canada Post's operations every year because the business model is no longer working. That is true in Canada, in the United States, and just about everywhere in the western world. The volume is not what it was 20 or 30 years ago.

Now, as to the number of employees, my understanding is that—

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I think we would all agree with you that it is unacceptable to have Canada Post—

[Joël Lightbound, Liberal, Louis-Hébert, QC]

We find agreement.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

—losing that much money. However, I would say that some of the blame should be laid at the feet of PSPC, as well as the ministers who have served in that role over the last number of years, for not being willing to approve a strategic plan and make some of the hard decisions that need to be made.

Can you tell me how many postal workers will be laid off as a result of the transformational plan?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

To answer, I'm very proud to be part of a new government that is ready, willing and able—

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I just need a number. I need to know that you know the number.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

—to make these tough decisions—on which I think we agree—on the future of Canada Post. As far as the number is concerned, I'm not in charge of the operations of Canada Post on a day-to-day basis. However, my understanding is that, as the organization rightsizes itself, most of it will be through attrition.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I'm going to provide the number for you because it has been reported: 30,000 postal workers will be losing their jobs.

Thank you.

[The Chair, Conservative, Kelly McCauley]

Thank you very much, Mrs. Block.

We'll go to Mr. Danko for six minutes, please.

[John-Paul Danko, Liberal, Hamilton West—Ancaster—Dundas, ON]

Thank you, Mr. Chair.

It's good to see you, Minister.

A year ago, Canadians elected a serious and pragmatic government. One of the most important things that we can deliver is trust and confidence in the federal government, and we can ensure that we are strategically using those public tax dollars that are entrusted to us.

In your opening statement, you talked about the importance of the civil service, the value of and respect for the jobs that they do, and the importance to Canadians of the jobs that they do. What steps are you taking to ensure the strategic use of those tax dollars to reduce costs, to improve services and to have the trust and confidence that residents have provided us with?