Evidence of meeting #2 for Public Accounts in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was recommendations.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Michael Ferguson  Auditor General of Canada, Office of the Auditor General of Canada
Nancy Cheng  Assistant Auditor General, Office of the Auditor General of Canada

10:15 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Michael Ferguson

No, the number that we do in any given year—it's not just two; it could be anywhere up to five—probably varies between one and five, depending on our availability of resources and where those organizations are in terms of what they need to have done.

In fact, the requirement used to be once every five years, and it was changed to once every 10 years. Again, these types of examinations are quite intensive to complete. If we were having to do them every two years, for example, we would not have very many other audits to bring to you, because all of our resources would be dedicated to doing special examinations.

This gives us an opportunity to go into every crown corporation once in a 10-year cycle and to report on whether they have adequate systems and practices.

10:15 a.m.

Conservative

The Chair Conservative Kevin Sorenson

Thank you very much, Mr. Harvey.

We'll move back to the government side and Mr. Godin.

10:15 a.m.

Conservative

Joël Godin Conservative Portneuf—Jacques-Cartier, QC

Thank you, Mr. Chair.

Mr. Ferguson, I'd like to talk about your findings regarding border control. You said that the Canada Border Services Agency had much more stringent requirements in place for controlling imports than for controlling exports. Could the agency use the import control process as a model in implementing certain export control measures?

10:15 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Michael Ferguson

Canada Border Services Agency explained to us that their priority is on import and controlling what's coming into the country. Therefore, they had to identify specific priorities about what to try to look for on exports. That included the exports of things like stolen cars, because those are things that are essentially coming from the proceeds of crime, and this is one way to reduce the proceeds of crime.

Also, they put a priority on the export of technologies that could be used to develop weapons. Again, we have laws that prohibit that. We also have international commitments to make sure we are controlling the export of technologies that could go into weapons.

It is not necessarily that they would need to duplicate the import process on the export side, because you're dealing with a different set of rules. I think what it comes down to is having a system that operates based on risk and in a way that is not predictable. For example, we found that if something is being exported by air from a certain airport, the company making the export can declare that export at any CBSA office across the country. They only have to declare it two hours before it's loaded on the plane, and they can declare it on paper. When you look at that, if you're somebody who is trying to get around the export control system, it's pretty easy to see the weaknesses in that system.

Again, we've identified that they had some constraints on resources, but fundamentally, they need to design a system that if somebody is trying to export something that they shouldn't be exporting, the system isn't predictable. They are identifying the risks and ways of making the system less predictable as to how to get around it so that it's a coherent, functioning system.

10:20 a.m.

Conservative

The Chair Conservative Kevin Sorenson

Thank you, Mr. Godin.

I think we'll end this meeting with Mr. Christopherson.

You have three minutes.

10:20 a.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Thank you very much, Chair.

Again, I would just mention to please let me know when the meetings are over if I'm giving way too much corporate history. Nobody cares. They just want to do it the way they want to do it. I'm trying to be helpful—

10:20 a.m.

Conservative

The Chair Conservative Kevin Sorenson

I look forward to the opportunity to be able to cut you off like that, Mr. Christopherson.

10:20 a.m.

Some hon. members

Oh, oh!

10:20 a.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Yes, I've seen you. You're good at it.

That segue was to mention that in the past—and we're all masters of our own destiny at the committee level—what we normally would do is go through the first round of rotation and questions, then do the second round, and that would complete what is considered a normal round, with two rounds of a normal hearing.

Now, usually we're lucky to get time. In this case, we only had one witness present, so we had the time. Many times, I won't get my three minutes, and we all knew that going in. But when we do find ourselves like this, normally in the past what we would do is stop, and then, as the chair, I would ask the committee, “Do we want to continue?” and “What's your pleasure?”

Sometimes there is one caucus in particular that's on one particular issue and the other two have asked the questions they want. Remember, not every report is headline generating. Some of them are actually good. They do come along and basically the government gets a “yes, not bad, pretty good, way to go”. That's the one the government calls, of course, and at the end of the day you can only run so far with that. You actually run out of questions.

But if there's somebody who wants to continue it, we may say, “Well, if everybody's in agreement, then, we'll give caucus five more minutes and then we'll call it.” Or we'll say, “Tell you what. We'll all do one more round for each person.” Or maybe everybody has a lot of input and we're going to run it right to the end. Other times, we'll say, “Let's adjourn, because we have a little bit of committee business.” Maybe we have a blackline report, a draft report, and five minutes on that report lets us finish our business. Or maybe we have committee business that we need to talk about, and it's in all our interests to do that. This buys us that time.

So as much as it's usually in the opposition's interest to keep committees going for every nanosecond we can, for obvious reasons of accountability, it is sometimes in the interest of the whole committee for us to end our rotation of questions and proceed to other business or to end the time in a different way than we would in the normal rotation.

If I have any question time left at all, I would ask a question on the Canada pension plan disability program. They made the change with the tribunal and then the backlog started. It went on for a number of years, for three years, as I think was mentioned here. Were there no alarm bells?

Prior to it becoming a crisis, was there no trigger mechanism to say that the tribunal, which was there supposedly to make things better than the system in the past, was actually creating a bigger backlog? Would there not be some kind of internal mechanism trigger, especially with a new tribunal, a new process, a trigger that would say, “Hey, we have a problem here”? Rather than just letting it run to the point where it became a crisis, should there not have been something that was triggered along the way to say, “Whoa, we have problems here,” and the early warning flags are going up?

10:20 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Michael Ferguson

Well, I think there were a couple of warning signs that they reacted to, but they reacted to them very late.

For example, the department realized what was happening with the backlog and decided that they had better go in and review some cases to see whether they really had to go to appeal. I think that one-third of them, if I remember correctly, that the department looked at.... Remember, these had been turned down. They'd been turned down at reconsideration and they'd gone to appeal, but then the department went in and looked at them, and for one-third of what they looked at, they said they should pay it, right?

Really, they never should have gotten to appeal in the first place, but the trigger was the fact that the backlog got so bad they said that they needed to go in and look at them, and for one-third of them, they were actually able to say they could accept them.

The other thing that happened was that the tribunal themselves identified that their backlog was just getting worse, so they made some changes to their administrative processes. I've forgotten exactly what they were, but they made some changes to try to book the hearings more in advance, but even that was done after the backlog had reached 10,000 cases.

Fundamentally, the tribunal believes that a normal steady state is a backlog of 17 months' worth of work. Again, think of that from the point of view of the person who has an appeal waiting. You can say that a steady state is going to be 17 months, and maybe you can understand it from a tribunal point of view, but that would still cause me to ask some questions if I'm looking at it from the point of view of the person who's trying to get an answer to their appeal.

10:25 a.m.

Conservative

The Chair Conservative Kevin Sorenson

Thank you very much. I think that pretty well takes the meeting to a close.

Let me just say, first, thank you for your time, Mr. Ferguson. We very much appreciate it.

In regard to some of the things Mr. Christopherson said, we are a new committee in a new Parliament and many of us here are first-time parliamentarians. I've been here for almost 16 years, and some of you have been here for a long time as well,. When we look at all sides, we want to take this committee seriously. I'm thrilled with the way the questioning went to find out what your perspective is of what this committee should be doing. I think, as Mr. Christopherson said, and you said, we have an important role to play. You've been very open and clear this morning in giving us direction on how we should proceed, how we can hold the government to account, how we can look at your report in a better way.

I want to thank you for coming. I've been at these meetings for many years, and we will get a witness or a minister typically for an hour, and you've been here almost two hours. We may feel like we've run out of questions, but I've enjoyed all the questions here today, and your responses as well.

Thank you very much to all, and to all parties. I will remind you that Tuesday morning we will do a steering committee, and we'll follow up on some of what we've heard today.

We are now adjourned.