Mr. Speaker, I am pleased to have an opportunity to speak to Bill C-277, proposed by the hon. member for Repentigny.
In principle, the government supports the intent of the member's bill regarding improved oversight of federal government entities, such as crown corporations, as well as not for profit organizations, such as foundations that have received significant federal assistance.
As we have already mentioned, the Government of Canada has made a commitment to improving accountability and has taken practical steps toward more transparency for the Canadian public.
That is the context in which the President of the Treasury Board tabled the report on crown corporation governance in the House of Commons on February 17.
In that report, the Government of Canada promised to amend the relevant legislation, including the Financial Administration Act and the statutes governing crown corporations, to ensure that, first, the Auditor General is designated the sole or joint external auditor for all crown corporations; second, that the Office of the Auditor General has the power to conduct special audits, focusing on value for money in all crown corporations; third, special audits are governed by an audit strategy based on the risk associated with each crown corporation, taking into account each corporation's complexity, field of activity and changes in its operational and strategic environment; and finally, that a protocol should be concluded with the Auditor General to ensure that commercially sensitive information is protected when special audit reports are presented to Parliament.
These amendments would include and go even further than the private member's bill.
In addition we are also concerned, as the hon. member has said, about the need for increased oversight over federal government institutions.
The Office of the Auditor General vigorously supports the measures outlined in the report on governance of crown corporations. It considers this the most complete review done in 20 years on this issue.
The government believes that these proposals are clearly a more efficient solution than that suggested by the hon. member for Repentigny to improving the transparency and accountability of crown corporations.
With respect to not for profit organizations, such as foundations, I would like to draw to the attention of hon. members the commitments made in budget 2003 to improve accountability and transparency. At that time the government undertook to amend funding agreements to incorporate, among many other measures, provisions for compliance audits and evaluations, and the recovery of funds in the event of default or wind-up.
It also undertook to strengthen the reporting of plans and results to Parliament. The Auditor General has recognized the improvements that have taken place in this area. She has recognized that the government has amended these funding arrangements to deliver on its commitments of improved accountability and transparency.
The government recognizes that the Auditor General would like to see the government go further in the areas of audit, evaluation and ministerial oversight. In the government's response to her recommendations, we indicated that we would continue to work with the Auditor General to resolve these issues. The government is following through on this commitment and discussions are progressing well with the Auditor General. As we gain a better understanding of each other's views on these issues, we are hopeful that any issues will be successfully resolved to the satisfaction of all concerned.
As an example, the office of the Auditor General recently indicated to the Standing Committee on Public Accounts, the Standing Committee on Government Operations and Estimates and to the Senate national finance committee that the office's thinking has evolved with respect to the audit of foundations. Previously, the office had taken the position that it should be the auditor of these organizations. This has now changed based on discussions with the government and the fact that the office of the Auditor General has no concerns with the financial audits that are being done by private sector auditors on the foundation.
I think this is important. It must not be thought that foundations and non profit corporations are not audited or reviewed.
Its real priority is to conduct performance or value for money audits in these organizations. The government also recognizes the motion from the member for Medicine Hat that was passed by the House on February 22. The government has expressed its desire to work with parliamentarians to address the concerns related to these arrangements.
The President of the Treasury Board has indicated that he would welcome a debate to find a solution to the problem. He has indicated that he does not support the motion in principle as it calls for automatically appointing the Auditor General as auditor. Similar to the Auditor General, he does not see this as the solution or the real priority.
I too do not see the bill's proposals as the best solution. I believe there are more effective solutions possible and support the government working with the Auditor General to find these solutions. One specific concern I have is that the bill would extend the Auditor General's powers into entities created or controlled by other levels of government.
In conclusion, I want to emphasize that I support the idea of broadening the Auditor General's role to include auditing or joint auditing of crown corporations, if the mechanisms for implementing this concept are examined more closely.
This government is committed to enhancing accountability and welcomes constructive input from all members of the House. The time we are devoting today to the motion in question highlights our eagerness to listen and consult on all matters before Parliament.
If the bill goes forward I would encourage the public accounts committee to carefully examine it and I expect that the committee will take into account the views of both the Auditor General and the government on the appropriate role of the Auditor General in the audits of independent organizations.