Veterans Affairs Committee on Nov. 29th, 2011

[The Chair, Conservative, Greg Kerr]

Good morning, folks. Before we get into the witnesses and the discussion today, I will just point out that we've got business for about half an hour at the end, so we have about an hour and a half with these particular witnesses.

I'd like to start by welcoming back Bernard Butler and Charlotte Stewart from Veterans Affairs. As everybody is aware, we have determined that we will proceed with our next study, and as part of that study we've agreed that it's only appropriate that we hear witnesses from the department to discuss some of the issues that are forthcoming.

As you know, Mr. Butler, the standard is that we allow about 10 minutes for opening comments and then we get into questions and answers. I think you're quite familiar with that routine by now.

So thank you for coming this morning.

[Bernard Butler, Director General, Policy and Research Division, Department of Veterans Affairs]

Thank you very much, Mr. Chairman.

Good morning everyone. It’s a pleasure to be here today.

I'm delighted to be here again. As you may recall, my colleague, Charlotte Stewart, and I were last before the committee on September 29, at which time we provided a bit of a departmental overview. As director general of policy and research, I am going to lead off today on the policy framework for the new Veterans Charter, including recent enhancements that have been implemented. Following that, Charlotte Stewart, the director general of service delivery and program management, will speak to program implementation and service delivery issues.

As you are mostly aware, the new Veterans Charter includes a suite of programs and services that work together to support the successful transition of veterans and their families to civilian life. This suite of services is supported by case management, mental health services, and other Veterans Affairs Canada programs, such as treatment benefits and the veterans independence program. The focus of the new Veterans Charter is to support the veterans' transition from military to civilian life, to support his or her wellness and his or her independence throughout the move into civilian life. The new Veterans Charter programming is based on principles of modern disability management, and includes comprehensive medical, psychosocial, and vocational rehabilitation services targeted to address the recovery and re-establishment needs of veterans and their families.

While participating in rehabilitation, veterans are eligible for income support in the form of our earnings loss benefit program, which is one of a number of financial benefits available to provide an income stream up to age 65 if necessary, and to guarantee a basic standard of living. The charter also includes a lump-sum disability award that recognizes and compensates for the non-economic effects of a service-related disability. It provides for access to the public service health care plan for those not currently covered, and it provides services to help with career transition.

In place since 2006, the new Veterans Charter aims to care for the men and women it serves in a more comprehensive manner than existed prior to 2006. Ladies and gentlemen, the new Veterans Charter is not perfect, but it's a strong foundation on which to build, as was done recently with the enhancements that were approved by this committee some months back, which came into force on October 3. These new Veterans Charter enhancements represent an investment of $189 million over five years and will benefit approximately 4,000 veterans over that period.

These enhancements include the following. One is an increase in the monthly financial allowance under the earnings loss benefit, bringing the minimal annual pre-tax income to $40,000 for those participating in rehabilitation or who are unable to be gainfully employed. The second improvement, increased access to monthly allowances, including the permanent impairment allowance, is essentially a taxable allowance worth up to $1,632 per month, based on current rates. It is payable for life to seriously impaired veterans. There's a new monthly supplement of $1,000 to the permanent impairment allowance, and it's intended for the most seriously disabled veterans who are unable to be gainfully employed. Finally, the enhancements provide flexible payment options for veterans who receive a disability award.

Ladies and gentlemen, these changes address the priority gaps that had been identified through consultations with a number of stakeholders, including this committee and its reports, and other groups. These changes are predicated on a defining principle, that those in greatest need receive the most support. With these improvements, our most seriously disabled veterans will be guaranteed a minimum annual income of $58,000 per year. We have also taken other advice to heart. We are improving our outreach to CF members, veterans, and their families regarding programming that Veterans Affairs provides. In collaboration with our colleagues at National Defence, we have made 19 joint presentations now to more than 6,000 CF members, veterans, and their families on major CF bases across the country, so that they are fully informed about what the new Veterans Charter actually provides them.

In light of our commitment to ensure this is a living charter, evolving to meet the needs of CF veterans and their families, we will continue our efforts to understand the distinct needs of the younger CF population. The departmental programs and services, as such, must be evidenced-based, and we are using our research work, jointly undertaken with National Defence and the Canadian Forces, to help guide program and policy design.

Ladies and gentlemen, that gives you a little bit of context for the New Veterans Charter and for the enhancements to the charter. I'm now going to turn it over to Charlotte Stewart, who is going to speak to some of the service delivery and implementation issues.

[Charlotte Stewart, Director General, Service Delivery and Program Management, Department of Veterans Affairs]

Thank you, Mr. Butler.

Good day. I am very happy to be appearing before you today.

I'm very pleased to have the opportunity today to speak to you, particularly about our transition process. Bernard has spoken about the new Veterans Charter in general terms. We have also had an opportunity in the past to speak to you about the enhancements and improvements that we've made to the new Veterans Charter.

Today, we'll build on that discussion, and speak in more detail about the new Veterans Charter, particularly the programs and services that are key to the successful transition and re-establishment of CF members, a transition process that is key. This is where members who are serving in the military begin a release process, and begin to take the steps needed for them and their families to make a successful transition to civilian life. Of course, in that process, they leave the Department of National Defence. They move and become clients of Veterans Affairs Canada.

We know that leaving the military and returning to civilian life is an incredible transition. It's very difficult for many members, and for almost all members it will have some level of challenge. Not only are they leaving behind their chosen lifetime career, but they're also leaving a lifestyle and a culture that is unique to the Canadian Forces. It's very different from what is experienced by most Canadians. They feel separation at times, and isolation. That's one of those issues that we are working to address, as well.

The new Veterans Charter was designed to provide the full suite of programs and services individually offered to releasing members to help them make that transition. It affords us the opportunity to provide a very individual approach, so that all members, as they take those steps, are given an individual case plan and can work with us in Veterans Affairs Canada to the greatest extent possible to achieve the most success possible.

Bernard gave you a quick summary of the new Veterans Charter. When I speak about it being a suite of benefits and services, it includes such things as career transition services. This is a program that allows all releasing members to get advice and guidance to assist them in making career choices, in understanding how their skills obtained in the military are applicable to civilian life, and then give them practical advice on how to get into the workforce, find a job, and be successful.

Bernard mentioned that the new Veterans Charter is based on modern principles of disability management, which is key. Based on research, and using great examples from other countries, for instance, we've developed programs that are specifically designed to support the needs of the individual. They include, for example, our cornerstone program, the rehabilitation program.

The rehabilitation program has three elements. The first element is to ensure that individuals receive the support they need to be stabilized in a medical sense. That's medical rehabilitation. Also, it can address, on a very individual level, any psychological or social issues. Then, as the individual moves and develops those strengths, the third pillar of the program is rehabilitation, where it's specifically designed to assist those in the transition process who need to successfully re-establish themselves in a career in civilian life.

What's key to us today—and you've heard this from other witnesses recently—is that the department is transforming itself, and that our best programs need to be delivered in the best possible service delivery model. I'll be able to speak a little bit about that today, too.

The department has almost 2,000 front-line staff across the country who are engaged with clients day-to-day. Right now, our transformation program, which is active under way and will continue until 2015, will see us improve our service delivery structure, reduce complexities, streamline our processes, and introduce more technology, so that our veterans can be served in the way they want, when they want.

These changes are not at all about cutting jobs or eliminating positions. These changes are about making ourselves more productive, more efficient, and getting the best answer as quickly as possible for the veterans, wherever they are and whenever they want the information. It's driven by the goal of ensuring that we have the right people and the right places to get the job done.

The shift has started, and one of the key launching points was in 2009 when the Minister of Veterans Affairs Canada and the Minister of National Defence announced the opening of integrated personnel support centres. This is a joint partnership with DND. Veterans Affairs Canada now has over 100 employees working on 24 bases and wings across the country, co-located with DND, so that we assist the transition.

We've already made other commitments to change. Our disability benefits are now delivered one-third faster. The time it takes for decisions to be made in our rehabilitation program has been cut in half, and we're providing more self-serve options on our technology platform.

We are constantly striving to improve our services so that our employees have the required tools and skills to give the best possible service to veterans and their families.

We've given case managers on the ground more authority to make decisions faster. We reduced the complexity of our programs. It's no longer hard to understand them, either for employees who are delivering the service, or for veterans who want to read about what they're entitled to on our website. We've introduced direct deposit. We shortened the turnaround time for many of our programs and will continue to do so.

In the last year, you've heard that Canadian Forces members comprise the largest single group, surpassing our traditional veterans. We know as well that our newer veterans have different needs and want to be served differently.

Our guiding vision is that by 2015 veterans and their families will be able to connect with VAC through multiple communication channels, and to trust VAC to correctly identify their needs upon release and ensure a smooth transition from the Canadian Forces to the care of Veterans Affairs Canada.

Merci.

[The Chair, Conservative, Greg Kerr]

Thank you both very much. That was very straightforward, very comprehensive.

We'll go to Mr. Stoffer.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Thank you, Mr. Chairman, and thank you both very much for coming.

Mr. Butler, when you were with us before, we talked about the unfortunate release within the department of the personal information of Sean Bruyea. You said at that time that there were now procedures and policies in place to keep this from happening again. Well, unfortunately, it has happened in two other cases that we're aware of. We simply don't know how many other cases we might have. We have a fair number of veterans and their families now filing freedom of information requests to assure themselves that that their personal information wasn't somehow made available.

So first, I'd like you to comment on the cases of Dennis Manuge and Sylvain Chartrand, regarding their personal information being released.

Second, the Veterans'Ombudsman issued a report, and I'm wondering if you have had a chance to see it. The ombudsman made some solid recommendations to assist the department, and I was wondering if you could do a quick survey of what your department will be doing to respond to what he has recommended.

Thank you for coming.

[Bernard Butler]

Thank you, Mr. Stoffer.

With respect to the privacy issue, it would be inappropriate for me to comment on any individual case. As I advised the committee the last time I was here, the department has implemented a 10-point action plan. It's a comprehensive plan to ensure the protection of privacy of information. It includes training as well as refined protocols and business processes. It limits access to information to those who have a need to know. So it's comprehensive.

Privacy cases may come forward that relate to circumstances predating the implementation of our privacy action plan, and we are sensitive to this possibility. I can't comment on the individual cases you're referring to. What I can tell you is that the issue of privacy within Veterans Affairs Canada is taken exceedingly seriously. It is something that all staff have been trained on now. They have been repeatedly reminded of their duties and obligations, and their control of information has been rigorously monitored.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Sorry to interrupt, but may we get a copy of the 10-point plan? Is it possible to get that copy of what the department has been initiating?

[Bernard Butler]

Absolutely. I think it should be available. We'll do that for you, sir.

The other question you raised was with respect to the report of the ombudsman. What I can tell you, Mr. Stoffer, without having it in front of me to go through the many recommendations here, is that the report has been shared with Veterans Affairs Canada. We have, in fact, gone through all of the recommendations and all of the concerns. We have responded by way of developing action plans, as required, or responses to the various recommendations.

We are aware of it. We are working with it. I can assure you that the department has a very strong working relationship with the ombudsman's office. We are very concerned, obviously, with any issues the office brings to us and are taking very serious steps in terms of addressing them.

Without the particular recommendations in front me, Mr. Stoffer, it's very difficult to speak to individual ones. But I can tell you that we have the report. We have responded to the recommendations, and we will be addressing the concerns he has identified.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Thank you.

[The Chair, Conservative, Greg Kerr]

Ms. Mathyssen, if you have some questions, there's a little time left.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Thank you for being here.

Your brief indicates that the minimum annual income for disabled veterans is $58,000 per year. I assume that is before tax.

[Bernard Butler]

That would be pre-tax income.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

It says here the “most seriously disabled Veterans”. Is there a threshold? How seriously injured does an individual have to be to receive this annual income of $58,000?

[Bernard Butler]

Thanks very much for that query.

Perhaps it might be appropriate for us to look at the components of the $58,000 reference point I made mention of.

With the recent enhancements to the new Veterans Charter, the first component of consequence is a minimum pre-tax income of $40,000. It is for those whom we're releasing at low ranks. With respect to those who may have been out of the military for a period of years, what we realized through various consultations was that the earnings loss benefit was not meeting their basic needs. With the enhancements to the new Veterans Charter, they will receive a minimum $40,000 through the earnings loss benefit program when they're in rehabilitation.

In addition to that, the most seriously impaired qualify for the highest grade of the permanent impairment allowance, which is currently roughly $1,632 a month. Those who are receiving a permanent impairment allowance who are unable to be substantially and gainfully employed are the most seriously disabled veterans we have. They would then qualify for the additional $1,000 per month supplement, which was introduced and implemented with the new Veterans Charter enhancements in Bill C-55. When you add those components together, those individuals in that category would, in fact, be eligible to receive $58,000 in pre-tax income.

[The Chair, Conservative, Greg Kerr]

Thank you very much, Mr. Butler.

We'll go to Mr. Lobb, for five minutes.

[Ben Lobb, Conservative, Huron—Bruce, ON]

My first question to Mr. Butler picks up on what Mr. Stoffer was asking about with regard to the Veterans Ombudsman. Obviously, in his official capacity, part of his job is to produce reports and provide them to the department. Beyond that, though, how often would you or Ms. Stewart meet with Mr. Parent or any of his representatives of get ahead of the curve and ahead of the reports? How often would you meet with him?

[Bernard Butler]

I can tell you that the ombudsman has a regular series of meetings at our assistant deputy minister level. Those are with Mr. Gilbert and Mr. Hillier, both of whom were here a number of weeks ago. They meet quarterly. In addition to that, we certainly have contacts with the director general of operations, Mr. Walbourne, in the ombudsman's office, as issues arise. We deal with the ombudsman's office on a range of issues on a regular basis. A lot of them would be service delivery issues. That would be through Charlotte Stewart.

[Ben Lobb, Conservative, Huron—Bruce, ON]

What about with the Royal Canadian Legion? Obviously they're a great advocate on behalf of veterans as well. How often would you meet with them on issues relating to, say, service delivery?

[Charlotte Stewart]

We ensure that we have at least one annual meeting. We also have meetings during the year on an ad hoc basis as required. We have a good relationship and open communication with the Legion. Their service officers are working with our front-line staff across the country, so as issues arise they're elevated, often through Mr. Allard, into our organization as required.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Obviously, you made a great presentation. How often would you or Mr. Hillier go to individual bases and see firsthand that what you're saying is actually happening?

[Charlotte Stewart]

I can speak on behalf of Mr. Hillier, and I'm sure I could say that he's been in every district and every integrated personnel support centre. If he's missed one, I'd be surprised. He makes it a very active part of his business to be on the ground listening to people. I do as well, but Mr. Hillier is personally very engaged in that.

[Ben Lobb, Conservative, Huron—Bruce, ON]

In your comments, you talked about the vision for Veterans Affairs in 2015. To me that seems like a long time away—it's four years away. If you took the budget of Veterans Affairs, at a little over $3 billion, in corporate terms and aimed to deliver on a vision or major goals for a business of this size, I'm not sure if four years would cut it. I'm just wondering why it is 2015. Is there a good reason why it's 2015? Why isn't it 2012, or halfway through 2013?

[Charlotte Stewart]

The transformation plan I was speaking about has milestones within every year. We're going to see a full transformation by 2015. This is a very significant transformation that is going to affect all levels of the organization. It's taking the organization from a paper-based, non-technology department into being, I believe, one of the leaders in both those areas.

Each year, we will achieve certain goals. We've already made progress. We're reducing the complexity and reducing the turnaround of our programs, and we've already achieved that with our disability programs. While 2015 is the end state, it is by no means the point at which all our accomplishments will have been achieved.

[Ben Lobb, Conservative, Huron—Bruce, ON]

My last point is that in the next week or two, we're going to western Canada to tour a few sites. Before we head out there, would you like to guess what some of the issues might be that we might encounter or on which we might hear feedback?

[Charlotte Stewart]

Are you speaking of visiting the integrated personnel support centres?

Once again, the opportunity there is around building the strongest partnership possible on the ground with DND. You're going to go into integrated personnel support centres where back staff and DND staff are co-located and where they are working to assist the veterans as they make the transition.

In terms of potential issues, I would say that at this point we have resourced those centres appropriately, and we're working through program arrangements with DND, because the centres were set up in 2009 and we opened about 24 of them quite rapidly. We're working through some basic operational issues that would be normal in any organization—firming up procedures, making sure the right staff are doing the right work. But overall, I can say that what you're going to hear is that it's a successful model, that the model is correct, and that the 18,000 or so walk-in clients using them speak very highly of the service.