Public Works and Government Services Canada is continuously looking at ways of improving service delivery and reducing the costs of cheque production and distribution, from the consolidation of cheque processing sites from 11 to 4, which will save $4.8 million annually after implementation, to increased use of direct deposit.
Public Works and Government Services Canada, PWGSC, issues payments on behalf of other program departments in the amounts and according to the schedules determined by those departments. Program departments determine individual entitlement to benefits in accordance with the policy and legislation governing specific programs. This process precludes PWGSC from adding up the benefits under various programs and issuing a single payment to an individual.
Should the department decide to consolidate various benefits paid monthly into a single payment, individual program departments would require legislative and policy changes for their specific programs. Major changes would also be required to the computer systems of program departments and PWGSC.
Public Works and Government Services Canada issues approximately 193 million payments annually. Approximately 34 per cent are currently delivered electronically in the form of direct deposit.
The average cost to issue a cheque, including production costs, banking fees and postage, is approximately one dollar. With the use of direct deposit significant savings are realized through reduced postage and banking fees as well as reduced cheque production costs. Direct deposit costs the government only one cent in banking fees compared with 10 cents for each paper transaction.
As another important step to streamline operations and reduce costs, the Minister of Public Works and Government Services recently announced that direct deposit will become the government's standard method of payment. This expansion of the use of direct deposit is expected to save the government $18 million to $20 million annually by 1998-1999.
Program departments accord benefits in accordance with their legislation. In cases where individuals are entitled to payments based on individual characteristics separate payments must be issued as there is no authority to treat a married couple as a single beneficiary.