Public Accounts Committee on May 2nd, 2013

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

I have a question on your findings in paragraphs 3.79 and 3.80.

You indicate that you are somewhat embarrassed by the growth in this debt. Despite the complimentary comments you make, you indicate that you have some reservation: you find this growth in the service of the tax debt somewhat embarrassing. Then, just below that, with regard to the implementation of the recommendations based on this research, you state that, in your view, the agency should have defined performance indicators long ago.

Should that not have been done already? With respect to performance levels, this is a bit slow. The tax debt has experienced relatively significant growth since 2006.

[Michael Ferguson]

Mr. Chair, we note that the tax debt has increased significantly between 2006 and 2012. We do illustrate that there have been some changes in the tax base—for example, in the collection of HST and some of that type of thing—which accounts for some of that. But fundamentally, there really isn't enough information in the public domain to know whether the $29 billion in tax debt is an appropriate level at this point. We did point out that there were still some weaknesses in the performance information the agency produces. We think there's room for improvement in that area.

[The Chair, NDP, David Christopherson]

Your time has expired, monsieur. Sorry.

We have one spot left, and it will be just under five minutes.

Mr. Dreeshen, you have the floor. Good luck.

[Earl Dreeshen, Conservative, Red Deer, AB]

Thank you. Certainly, as you can tell by the crowd, you've presented a great report.

I have just a couple of questions with regard to the focus of the audit on federal search and rescue services. I wonder if you could go over that and describe the recommendations of this audit for the coast guard.

[Michael Ferguson]

In general, Mr. Chair, we noted that for the coast guard, the equipment was at an appropriate level. We noted that there were, however, some concerns on the personnel side. For example, ship captains and so on weren't always getting all of the upgrade training they needed and that type of thing. So we made some recommendations around the personnel side for the coast guard. The information system is a shared system. I think for the most part our recommendations regarding the coast guard were on the personnel side.

[Earl Dreeshen, Conservative, Red Deer, AB]

In your discussions, what evidence did you have that they were going to be...? I know they've suggested that they have accepted the recommendations. I'm just wondering if, in your discussions with them, you had any more details that you could present to us.

[Michael Ferguson]

I think, Mr. Chair, again, the only thing I can say is that all of the recommendations we made in this chapter, whether to National Defence or to the coast guard, were agreed to and accepted.

[Earl Dreeshen, Conservative, Red Deer, AB]

Thank you.

I'd like to go back to chapter 9 to talk about the employment insurance overpayments. I wonder if you could briefly comment on the importance of the measures, such as the EI stewardship review that was conducted as an audit for the EI program, in order to help get some better data on the number of ineligible claims.

[Michael Ferguson]

I'm sorry, Mr. Chair. I'm not recalling right now where we would have referred to that in the chapter. If there's a specific paragraph reference, that would help me.

[Earl Dreeshen, Conservative, Red Deer, AB]

Normally I'd have that with me, but I don't at this point in time.

I guess, really, when you are looking at the data, that is important if you're going to try to determine which claims are ineligible or try to get a handle on overpayments. Is managing that something you also looked at?

[The Chair, NDP, David Christopherson]

This will have to be the last question, Mr. Dreeshen.

[Earl Dreeshen, Conservative, Red Deer, AB]

Okay. Thank you.

[The Chair, NDP, David Christopherson]

Mr. Ferguson, please.

[Michael Ferguson]

Thank you.

The main item that we looked at here was in terms of the process. One of things we identified was that after an inquiry or an investigation starts, it has to go through a certain process. At the end of that process, it has to get a final approval. We identified, for example, that 200,000 of these investigations were under way, but the department estimates that 18,000 of them will not be completed, with a value of about $10 million.

In terms of looking at the data, we looked at it from the point of view of the whole process. We think that it's one part of the process that they need to focus on to improve.

[The Chair, NDP, David Christopherson]

Very good.

Thank you, Mr. Dreeshen and Mr. Ferguson.

With that, colleagues, we conclude our hearing.

On behalf of the committee and, quite frankly on behalf of all Canadians, Mr. Ferguson, we thank you, your office, and your staff for the work that you do on this report and in all your work. It's very much appreciated. Well done.

[Michael Ferguson]

Thank you.

[The Chair, NDP, David Christopherson]

With that, colleagues, this committee now stands adjourned.