Thank you, Mr. Chair.
Thank you, committee members, for having us here today.
I am pleased to be here to speak about the modernization of the benefits delivery program and specifically address program costs. As you know, many questions have been asked in the House. There have been briefings for MPs, but we wanted to have an opportunity to share with you how the new system is working and the timelines and accuracy of payments.
In order to understand where we are now, we have to go back 14 years. Independent oversight bodies, over the past 14 years, have raised serious concerns about the risks associated with aging IT systems. In 2010, the Auditor General warned that failing to modernize the old system placed the benefits of millions of Canadians at risk, including old age security, pensions and employment insurance. Quite frankly, that's an unacceptable risk to the many millions of people who rely on on-time delivery of benefits for their livelihoods.
The government chose to act in 2017. The benefits delivery modernization program is a responsible response to these long-standing warnings and is designed to safeguard benefit delivery and ensure systems are functional, reliable and fit for the future.
This committee's study of that report said, “it is essential that departments properly prepare for and manage the maintenance or upgrading of their aging IT systems.”
When our government began this work in 2017, OAS benefits were still delivered on a 60-year-old legacy system that was practically the age of the clients being served. The systems delivering Canada's major benefit programs are outdated and increasingly difficult to maintain. Over the last 10 years, it has cost more than $1 billion to keep them running, and with every passing year, maintenance becomes more expensive and more risky. This is simply not sustainable.
The benefits delivery modernization program is a massive undertaking of crucial importance. Any interruption could significantly affect recipients' ability to meet their daily needs, such as buying food—