Government Operations Committee on May 7th, 2026

[The Chair, Conservative, Kelly McCauley]

Good morning, everyone. We are in session. Welcome to meeting number 40 of the House of Commons Standing Committee on Government Operations and Estimates.

We're continuing with our study of the main estimates. We welcome back PSPC and Shared Services, as well as some new guests from the Office of the Governor General's Secretary.

I understand there's an opening statement from PSPC. Is that from you, Mr. Hammond?

[Michael Hammond, Chief Financial Officer, Department of Public Works and Government Services]

Yes, it is.

[The Chair, Conservative, Kelly McCauley]

Please go ahead. The floor is yours for no longer than five minutes, please.

[Michael Hammond]

Good morning, Mr. Chair.

Following the minister's appearance earlier this week, thank you for inviting me to provide further details on the main estimates for Public Services and Procurement Canada for fiscal year 2026 to 2027.

Let me begin by acknowledging that we are gathered on the unceded territory of the Algonquin Anishinabe peoples.

Joining me today are my colleagues Lorenzo Ieraci, assistant deputy minister, policy, planning and communications branch; Dominic Laporte, senior assistant deputy minister, procurement branch; Mark Quinlan, senior assistant deputy minister, real property services branch; and Kim Steele, senior assistant deputy minister, human capital management solutions branch.

Mr. Chair, PSPC is tabling a total opening net budget of approximately $5.9 billion in the 2026 to 2027 main estimates, which represents a net decrease of $1.3 billion from the previous fiscal year.

For clarity, Mr. Chair, this request does not include funding announced in the spring economic update on April 28. In addition, should these approvals be granted, funding for PSPC may be adjusted later during the year through the supplementary estimates process, in accordance with standard practice.

PSPC remains committed to the responsible management of resources in support of the government's priorities. The department takes its role of sound fiscal stewardship seriously and recognizes its importance in Canadians' confidence in the government. Therefore, our focus is on reducing spending in order to enable greater strategic investment.

Mr. Chair, as you're aware, the department continues to work on a number of important projects, including supporting the establishment of the new Defence Investment Agency, applying buy Canadian policies, working hard to decrease the pay backlog and advancing the new integrated human resources and pay system. At the same time, PSPC continues to provide central procurement, translation, real property management and other common services to the Government of Canada. While carrying out this work, PSPC has reduced its overall request for funding in these main estimates. I will now explain the more significant year-over-year variances.

The largest decrease in PSPC's main estimates is for the long-term capital investment plan and preplanning for capital, with a total decrease of $1.2 billion. This decrease is largely due to the completion of contractual milestone payments related to major infrastructure initiatives, such as the energy services modernization project.

PSPC can attribute a decrease of $97.5 million in operating funding specifically to the government's comprehensive expenditure review. As part of the expenditure review, PSPC will streamline internal processes to reduce administrative burden while ensuring the workforce has the appropriate mix of skills and roles. The department also anticipates lower actual expenditures on discretionary areas, such as management consulting, from 2024-25 to 2025-26.

In its role as pay administrator for the Government of Canada, PSPC delivers pay to over 430,000 current or former public servants from over 100 departments and agencies. The main estimates contain a year-over-year decrease of $57.3 million related to the current pay administration program. Related to this reduction, PSPC is seeking an increase of $67.6 million to support continued rigorous testing and building of the next generation pay and HR system.

Additional variances in PSPC's main estimates include, for example, a decrease of $27.7 million, following Canada's hosting of the G7 summit in 2025, for which funding is no longer required.

Finally, the department's main estimates also include an increase of $20.7 million funding for non-discretionary expenses associated with Crown-owned buildings and leased spaces. This increase provides protection for accommodation costs beyond PSPC's control, with unspent funds at year-end being returned to the fiscal framework.

Mr. Chair, thank you again for the invitation to appear today. I'm happy to take your questions.

[The Chair, Conservative, Kelly McCauley]

Thanks, Mr. Hammond.

Mr. Davis, please go ahead, sir.

[Scott Davis, Assistant Deputy Minister, Chief Financial Officer, Shared Services Canada]

Thank you, Mr. Chair, for this opportunity to continue our discussion of the main estimates for Shared Services Canada, SSC, for 2026-2027.

I also wish to acknowledge that we are gathered on the unceded and traditional territory of the Algonquin Anishinabe nation.

SSC runs and modernizes the Government of Canada's core information technology and is driving digital transformation while protecting Canada's digital sovereignty.

We are working closely with departments to apply emerging technologies to help transform government operations, reduce costs and improve service delivery through technological innovation.

A key example is CANChat, SSC's in-house generative AI tool. CANChat is a safe and secure platform for public servants that helps ensure Government of Canada data remains in Canada, is hosted on government-accredited infrastructure and is not accessible by foreign service providers. We are working to begin deployment across government this spring.

These and other initiatives require sustained investment but are essential to building a more resilient, secure and innovative digital government while maintaining uninterrupted delivery of existing services.

Over the years, SSC has absorbed inflationary pressures and rising demand by leveraging efficiencies and economies of scale. However, the growing volume and complexity of IT requirements, particularly related to cybersecurity and AI, mean that additional resources are needed to manage operational risk and sustain effective service delivery.

As a refresher, in these main estimates, SSC is seeking a decrease in funding that reflects savings from the comprehensive expenditure review and changes to the funding profiles of multi-year initiatives.

The estimates include targeted new funding to support continued delivery of core IT services across departments and to strengthen cybersecurity by modernizing security monitoring so SSC can better predict, detect and respond to cyber-threats.

Finally, SSC is maximizing value for taxpayers through a whole-of-government approach to IT procurement: consolidating purchases, leveraging economies of scale and strengthening domestic digital capacity, including through the buy Canada policy.

In conclusion, SSC will continue to develop and strengthen essential digital services that Canadians depend on every day, while advancing secure, efficient and innovative government operations.

Thank you, Mr. Chair.

I welcome your questions.

[The Chair, Conservative, Kelly McCauley]

Thanks, Mr. Davis.

Mr. MacKillop, are you doing the opening?

[Ken MacKillop, Secretary to the Governor General, Office of the Governor General's Secretary]

Yes, please, sir.

[The Chair, Conservative, Kelly McCauley]

Please go ahead, sir, and welcome to OGGO.

[Ken MacKillop]

Thank you very much.

Mr. Chair and members of the committee, I appreciate the opportunity to meet with you today as we review the main estimates for the office of the secretary to the Governor General.

I am the secretary to the Governor General. As Mr. Chair mentioned, this is my first visit to this committee in my current position.

I am accompanied today by Philippe Roy-Bélisle, director, finance and material management and procurement, and chief financial officer.

Before we discuss main estimates, please allow me to take a minute to acknowledge the important role of the Governor General.

I've had the privilege of supporting Governor General Mary Simon for the past two and half years and look forward to welcoming our next Governor General, the Honourable Louise Arbour. I've seen first-hand how we balance the constitutional responsibilities of the Crown and service to Canadians from coast to coast to coast, while staying firmly committed to doing so with fiscal responsibility and transparency as well.

As the representative of the head of state and commander-in-chief of Canada, the Governor General ensures the continuity of our parliamentary democracy through her constitutional duties, from the swearing-in of governments to granting royal assent. Beyond these duties, the Governor General is a non-partisan pillar of our national identity. She has a unique ability to convene people and encourage conversations on issues of national importance. She helps bring Canadians together, especially on difficult issues, such as the ongoing work of reconciliation between indigenous and non-indigenous peoples.

In other words, the role is about creating space for respectful dialogue and building understanding. It is about strengthening our connection with Canadians by championing themes that matter to all of us.

The Governor General also has a duty to recognize Canadian excellence. This is done through a range of honours programs, from the Order of Canada to decorations for bravery and military honours. This past year, our office oversaw the award of approximately 45,000 honours. These awards are presented at Rideau Hall, the Citadelle in Quebec City and in communities across the country. It is a way for the Governor General to meet people where they live and shine a light on the diversity of their achievements in shaping Canada.

On each visit, the Governor General highlights local people and organizations that are making a difference, advances priorities for communities or regions and supports national interests. The Governor General represents Canada abroad, as well as helping advance key foreign policy objectives such as strengthening co-operation and supporting sovereignty. We saw this, for example, when Her Excellency marked the opening of the Canadian consulate in Nuuk, Greenland, this past February.

Although much of our work focuses on supporting the Governor General directly, that's not our only role. We also ensure that both Rideau Hall and the Citadelle remain open and accessible to visitors. Providing Canadians and international guests with opportunities to learn about the Governor General’s role and continued relevance is especially important at a time when trust in public institutions is fragile. We are enabling visitors to engage with Canada’s heritage within the very special spaces in which Canadian history continues to unfold.

To deliver on the core functions of the office, we have 162 employees and a number of student guides. Our staff represents a wide range of occupations and functions expected of an organization that hosts 8,000 Canadians per year, from cleaners to accountants to heralds and student guides.

Out of our $22.2 million budget, $16.4 million is allocated to employee salaries. One-third of the remaining amount is for the delivery of the national honours awarded to deserving Canadians.

Although our department's budget has been stable for many years, we, like other departments, experienced the comprehensive expenditure review this year. As a result, by 2028–29, on an ongoing basis, the office will be required to achieve $1.3 million in savings from vote 1. The voted budget reduction for 2026–27 is approximately $743,000. However, that reduction is not in the main estimates, because of the timing of the government’s decision. It will, nevertheless, be implemented through a frozen allotment this year and impact the office's available spending authorities this year.

Thank you, Mr. Chair.

[The Chair, Conservative, Kelly McCauley]

Thanks very much.

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

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Thank you.

Since we have the announcement of the new Governor General, I think it's great to speak to Mr. MacKillop, as he's the secretary to the GG.

Right now, Canadians are lining up at food banks. They're cutting groceries; they're struggling to keep a roof over their heads, and they're watching every dollar just to get through the month. When they hear about hundreds of millions of dollars having been spent on the Governor General of Canada over the last decade—tied to travel costs, former GG expenses, clothing purchases and speech writing, and now the reports of a Rideau Hall skating rink project—they're rightly asking about who's watching the taxpayers' money.

I don't think Canadians are even aware that former governors general can continue claiming expenses after leaving office. On top of their pension, they can claim up to $200,000 a year in expenses for life. Of course, with Mrs. Simon's retiring, we'll have five GGs able to pull on that.

Last year alone, more than $550,000 was billed through it by past GGs. Is that correct?

[Ken MacKillop]

That is correct.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Who claimed that money and what was it spent on?

[Ken MacKillop]

Mr. Chair, let me give a bit of context to the program, called the former governors general program. It's been in place since the Treasury Board decision of 1979. The program remains to assist former governors general in their administrative support, their office support, their travel—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

I'm sorry. I tried to give as much context beforehand as I possibly could. I was asking who claimed that $550,000 for last year.

[Ken MacKillop]

In fact, there were five former governors general on that list, including Mr. Schreyer, Madame Clarkson, Madame Jean and Madame Payette.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Did they all collect on that? Did they all put in expenses last year?

[Ken MacKillop]

There were expenses for five former governors general, yes.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Do we know what it was spent on? Do we have some place in which we can see what it was spent on?

[Ken MacKillop]

When the program was put in place, it was put in place with guidelines that we have and can make available to the committee. Those guidelines are followed with strict attestations on what they spend—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

I'm sorry. We're wondering whether we can see what it was spent on. Even with my expenses, I have to declare them.

[Ken MacKillop]

We disclosed, obviously, the total amount. We haven't disclosed it either by person or—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

You don't know what it was spent on. Okay.

If these are legitimate public expenses, why not proactively disclose them in the same detail that we have to? Right now, we have to take a photo of everything we buy and upload it, so why wouldn't the former GGs have to do that?

[Ken MacKillop]

We do have protocols in place for them to report to the office, through the chief financial officer, what they spend and attest to it—