Mr. Speaker, I will be sharing my time with the member for Waterloo—Wellington.
The establishment of the new Canada customs and revenue agency is a major undertaking. Questions have been raised during consultations with the provinces, territories, clients and the public. The question of accountability is one that came up frequently during these consultations. It is an important issue and I will address it in my speech.
Basically, everyone wants the proposed new agency to be responsible for its actions and for the manner in which it operates. I wish to assure members that ministerial accountability for program legislation will be maintained, as will overall control of the agency by the government.
As is now the case, members will be able to ask the Minister of National Revenue to look into the handling of a file.
Bill C-43 establishes a number of accountability mechanisms that will ensure the agency, despite its new structure and potential increased services on behalf of the provinces and territories, will remain accountable to parliament, to its clients and to the public for its actions.
For instance, the minister will remain accountable as provided in clause 6 of the bill. The auditor general continues as the agency's auditor as stipulated in clause 87 of the bill. There is a five year legislative review as specified in clause 89 of the bill.
A corporate business plan is to be submitted to the minister for recommendation to Treasury Board for approval. The minister then tables the summary of the approved plan in parliament as provided for in clause 49 of the bill. An annual report on operations will be tabled by the minister in parliament as stipulated in clause 88 of the bill.
The Public Service Commission can periodically review the compatibility of the principles governing the agency staffing program and those governing staffing under the Public Service Employment Act. It may report its findings in its annual report as outlined in subclause 56(2). There is a mandatory review of recourse mechanisms by a third party after three years as provided for in clause 59 of the bill, and a summary of the results will be included in the agency's annual report to parliament.
The Minister of National Revenue will remain responsible for the administration and enforcement of program legislation such as the Income Tax Act, the Excise Act, and the Customs Act. He will also be able to direct officials in the exercise of authorities under this legislation.
The minister is currently named 1,470 times in various pieces of program legislation as the person with the authority to exercise specific actions, such as assessing tax returns.
The minister will continue to be the person named to exercise those authorities. This means that the minister will retain personal accountability for the way tax and customs programs are run. This direct accountability ensures that the minister has the authority to inquire into any matter of program administration. This is important, because the minister can ensure that clients of the agency have been treated fairly and equitably.
The minister will continue to respond to questions in the House and from the public on program and policy matters. He will continue to be able to respond to members of parliament when their constituents seek their help in dealing with tax or customs matters. However, while the minister is accountable for how the programs are carried out, the agency has a considerable amount of autonomy in matters of internal management.
The agency will be directed by a board of management which will be accountable to parliament through the minister responsible for management policies of the agency such as human resource activities like staffing and compensation, mandates for negotiating with its bargaining agents in collective bargaining agreements, services and performance standards, and the appropriate allocation of internal resources.
Some people have expressed concern that the board of management consisting of private sector individuals might ignore the public interest and act in a way that is motivated only by revenue generation. There are sufficient checks and balances in the bill to ensure that the agency will remain within the overall government policy framework.
I quote Mr. Robert Spindler of the Canadian Institute of Chartered Accountants when he appeared before the House of Commons Standing Committee on Finance on November 24:
We recommended that the existing ministerial oversight of the revenue system exercised by the minister of revenue be maintained.... It is clear that the comments provided on this issue during the consultations were heard and taken into account. We're pleased that under Bill C-43, the minister of revenue will retain responsibility for the agency and it will be structured to allow for close ministerial oversight and, in particular, that the minister's power of inquiry into any activity of the agency will be maintained.
In addition, the commissioner, who is a member of the board of management, would act as a full time chief executive officer of the agency and be responsible for the day to day operations of the organization.
He will be accountable to the minister for the administration and enforcement of program legislation. He will also be accountable to the board of management for the day to day management of the agency.
With regards to accountability for the administration of provincial programs, the commissioner will offer to meet with provincial and territorial finance ministers and to report on such matters as service and revenue levels and to receive feedback from them.
The important and necessary relationship now in place between the Departments of Finance and National Revenue will continue between the Department of Finance and the agency.
In summary, ministerial accountability, overall control by government, and parliamentary oversight will be maintained for the new agency.
And those being served by the agency, especially the provinces and territories, will have new means at their disposal to ensure that the agency is accountable to them for its performance.