Thank you.
The program's long-term estimate of $6.6 billion now covers the completion of four main projects by 2031: the full transformation of benefits delivery for all of old age security, employment insurance, and the Canada pension plan, and modernizing all of Employment and Social Development Canada's 14 call centres.
The full scope of costs could not possibly have been known at the outset. Other jurisdictions that went through modernization programs, such as the United Kingdom and Australia, experienced higher costs than what was initially estimated at the outset—in some cases to the tune of 600% more.
This demonstrates the difficulty of modernizing legacy systems that are critical to the vulnerable people who rely on them. Of course, this point was reinforced in the 2023 Auditor General's report, which noted that early estimates were “well below” industry average and which recognized that estimates would be updated as the full scope of work became clearer.
Current estimates have been refined over time due to three main factors. One, we have a better understanding of the complexity of unravelling 60-year-old systems and the work required. Two, cybersecurity threats have significantly evolved since 2017, and we need to ensure that the solutions we're building today can address them. Three, the scope of the program has expanded. For example, in 2017, the migration of the 14 different call centres was not part of the original scope.
Regarding the new platform, Cúram is one of the most widely used systems for delivering social benefit programs globally.
The system we're implementing is designed specifically for complex benefits delivery and supports 970 social programs in 12 countries. Our procurement strategy is competitive and follows both Treasury Board and PSPC guidelines. Expertise in cybersecurity and data architecture is scarce, and no organization, public or private, can complete a program like this alone. It must be a partnership.
Every contract includes clear deliverables, financial caps and phased work. All contracts are competitively awarded and proactively disclosed in accordance with the rules in place.
We are fully transparent. We follow standard practices, and the BDM program is subject to rigorous oversight by central agencies and the Office of the Auditor General of Canada.
Finally, let me address the concerns that some people have noted about payment delays. I know that for seniors this is challenging, and it's not acceptable.
As of last month, the new system had issued 89.6 million payments to more than 7.7 million clients, with a value of $84.7 billion in benefits. Some seniors who are applying for the first time to OAS have waited longer than they should, but these delays were not related to a system-wide issue. The new system is in fact reducing backlogs and new applications more efficiently than the legacy system. It's also improving our ability to prevent fraud and detect errors.
The new platform is working. This transformation has been undertaken in a responsible and transparent manner in a series of well-planned and prudent phases within the appropriated budget.
Thank you.