Thank you, Mr. Chairman.
I am pleased to be here today to represent Human Resources and Skills Development Canada and to discuss and provide additional insights with respect to the recommendations laid out in chapter 1 of the Spring 2010 Report of the Auditor General of Canada.
First, let me say that HRSDC agrees with the recommendations put forth in the Auditor General's report concerning aging IT. I want to assure you that meeting the Government of Canada's commitments to Canadians is the department's first priority. Ensuring timely and accurate payments to Canadians, as well as the protection and security of the information entrusted to us by Canadians, is a priority for HRSDC.
We take our responsibilities very seriously. The EI, CPP, and OAS programs represent $80 billion annually in social benefits to Canadians, representing 85% of all Government of Canada payments to citizens. These payments all rely on technology. So a modern IT infrastructure is critical to the sustainability of the delivery of programs and services to Canadians.
While there are definitely areas that require some attention, let me reassure the committee that Canadians are not at risk. There have been no IT failures as a result of aging IT infrastructure that have impacted payments to Canadians.
When we speak about our IT infrastructure, it is important to understand that this is an ongoing process, similar to regular maintenance on a vehicle. Have we ensured the right level of maintenance on our IT infrastructure over the years? Perhaps not. However, I want to assure you that our IT systems are not in danger of collapsing. Our applications are stable. The department is proud to cite a 98% availability for its systems. No systems, government or otherwise, have an uptime of 100%.
I should also point out that the volume increases experienced over the last two years have been unprecedented. During this period, the EI system consistently delivered benefits to Canadians in need.
It is important to mention that over the last few years, we have been working towards refreshing our IT assets, and we continue to do so. For example, over the past three fiscal years the department has invested some $120 million to modernize its technology.
In the fall of 2007, existing mainframe computers were replaced with the next generation of mainframes. This replacement provided a newer technological platform and business continuity for ensuring continued delivery of essential services and benefits to Canadians.
Last year a multi-year project resulted in a fully modernized system to support Canada Pension Plan benefit delivery, eliminating two legacy applications. Implemented in May 2009, the new system has processed over 600,000 new CPP benefits and issued over 45 million CPP benefit payments for seniors, the disabled, and survivors.
In 2009-10, in response to the economic action plan, components that posed imminent risk to the continuity of business operations were replaced.
However, there is still much work to be done. As I said earlier, HRSDC agrees with all the recommendations in the Auditor General's report. HRSDC knows that it needs to make a concerted effort to address issues that are looming on the horizon with respect to our aging IT. We are developing a comprehensive plan to address the recommendations in the Auditor General's report. We need to position these efforts in the broader context of the department, and we need to plan for better ongoing maintenance going forward.
We are adopting a portfolio-wide approach for the management of IT, integrated into our five-year IM/IT strategic plan. Fully integrated into our strategic plan will be risk identification, mitigation strategies, and controls to ensure that we effectively manage any risks.
Linked to that, we are working on a multi-year investment plan. Specific attention will be paid to the full economic life cycle of IT assets and to establishing indicators that will support us in assessing the risks associated with our technology assets. This investment plan will also include a prioritization of what elements need to be addressed first in modernizing the department's IT infrastructure.
The level of financial investment required will be determined as part of our strategic plan, linked to the broader business plan for the department. In developing the funding strategy to support our investment plan, we need to be particularly cognizant of the fiscal realities facing the country and HRSDC.
In conclusion, it is important that I express HRSDC's commitment to Canadians and the programs and services that we deliver. Because of that, the issues identified in the audit are taken very seriously. What we have done to date, coupled with our future plans, are important steps in addressing what was identified by the Auditor General.
I'm happy to answer any questions you may have.
Thank you.