Thank you, Mr. Chair.
We thank you for this opportunity to present the results of our audit on allocating funds to regulatory programs at Health Canada. As you mentioned, I'm accompanied today by Ronnie Campbell, assistant auditor general, and Louise Dubé, principal responsible for audits of Health Canada.
This audit focuses on one of Health Canada's core roles, that of regulator. Regulatory programs for which Health Canada has primary responsibility play an important part in furthering public health and safety. The audit examined three programs that regulate the safety and use of products commonly used by Canadians, that is, consumer products such as cribs, medical devices such as pacemakers, and drug products such as prescription drugs. The audit found that Health Canada does not know if it is fully meeting its regulatory responsibilities as the regulator of product safety, medical devices, and drug products.
Health Canada needs to determine the activities that must be carried out in the three programs audited in order to meet the department's regulatory responsibilities. Program managers have indicated to management that some core compliance and enforcement activities are insufficient to protect the health and safety of Canadians. At the present time the department does not know whether they are above or below the minimum level of activity required in the three programs.
Health Canada also needs to determine the performance targets for these activities. The audit found that performance indicators have been developed for the three programs, but few have measurable targets. Without targets, it is difficult to determine what a program has achieved compared with what it was intended to achieve.
Health Canada needs to determine the level of resources required to carry out the activities necessary to meet its regulatory responsibilities. We found that Health Canada's system of allocating its resources among various branches and programs is based on the previous year's funding rather than on plans and sound financial and performance information.
The audit found that the budget for core funding for the three programs audited has significantly decreased over three years--10% for the product safety program, 32% for the drugs program, and 50% for the medical devices program. Furthermore, the total funding allocated to two of these three programs has remained constant, but the demands on the programs are increasing. This makes it difficult for program managers to fully meet the department's regulatory responsibilities of protecting the health and safety of Canadians.
These three elements together--the required activities, the defined performance targets for these activities, and the necessary resources to do this work--would provide the department with the information needed to demonstrate whether it is meeting its regulatory responsibilities and whether adequate financial resources are being allocated to regulatory programs.
We are pleased that Health Canada has agreed with our recommendations and that it has already taken steps to improve its process for allocating resources. The department has redesigned the operational planning process, which, at the time of the audit, was scheduled to be implemented in 2006-07.
Because this area is so critically important to Canadians, your committee may wish to ask Health Canada to provide you with a detailed action plan and a timetable for its implementation, and to provide the committee with regular progress reports.
Mr. Chairman, that concludes my opening statement. My colleagues and I would be pleased to answer your committee's questions.
Thank you.