Mr. Speaker, it is my pleasure to participate in the debate on the concurrence motion before us today and to respond formally to the first report of the Standing Committee on Public Accounts which addresses the report on the audit of the Office of the Privacy Commissioner of Canada.
Two years ago the government relied on the early investigation work of the government operations and estimates committee and the Office of the Auditor General to address weaknesses in the management of the Office of the Privacy Commissioner. Their work was crucial to quickly identify the issues at hand and the extent and nature of the situation. Both bodies have been key in enabling the government to take appropriate action.
I want to reassure the House that the government reacted quickly to recommendations that came out of the auditor general's report in September 2003. We accepted the recommendations and acted upon them.
The government's response to the committee's first report regarding the matter of the Office of the Privacy Commissioner has been very positive. We tabled our response on March 23, 2005 responding to each of the committee's 20 recommendations. The recommendations are aimed directly at the departments and agencies that provide oversight to government departments and agencies, including Treasury Board Secretariat, the Privy Council Office, the Public Service Commission and the Public Service Human Resources Management Agency of Canada.
I will speak to recommendations Nos. 7 through 16, which affect Treasury Board Secretariat specifically and the actions that the secretariat is taking.
In recommendation No. 7, the committee recommended that the secretariat improve monitoring of compliance, which we committed to doing in budget 2004, in the “Strengthening Public Sector Management” booklet, by re-establishing the office of the comptroller general of Canada within Treasury Board Secretariat and finally, by issuing the management accountability framework, MAF.
Through these vehicles Treasury Board Secretariat has implemented broad measures to strengthen accountability and compliance across the public sector. The management accountability framework, for example, was issued in June 2003. The MAF is designed to translate the vision of modern public service management as established in “Results for Canadians” into a set of management expectations.
Treasury Board Secretariat is developing mechanisms to annually assess and monitor progress in the achievement of MAF expectations by departments and agencies. The secretariat is working with departments and agencies to establish a base line for management and agreeing on common indicators of effective management performance. It is conducting regular bilateral meetings between the secretary of the Treasury Board, deputy ministers and heads of agencies to discuss the performance of their organizations against MAF expectations. It is conducting annual assessments of departments and agencies. It is producing an annual report to Parliament on the public service and its management.
The committee recommended that the secretariat intervene in a timely manner when instances of non-compliance arise. That was recommendation No. 9.
The secretariat is working to enhance its existing oversight and monitoring role to become aware as early as possible of control deficiencies or compliance issues, while respecting the accountability regime of the public service, which confers responsibility and accountability with deputy heads.
The committee requested that the secretariat develop a detailed action plan to focus more attention on compliance with Treasury Board policies in smaller departments and agencies. That was recommendation No. 11.
Since the Office of the Auditor General published its report on the Office of the Privacy Commissioner in September 2003, Treasury Board Secretariat, in partnership with departments, has continued to strengthen a system of monitoring smaller departments and agencies.
For example, Treasury Board Secretariat maintains an ongoing dialogue with departments, including the smaller departments and agencies, through the management accountability framework. The secretariat has also created a dedicated group to increase communications, support and oversight of smaller departments and agencies.
This approach reflects the balance between departmental accountability for ensuring that an adequate management control framework is in place within smaller departments and agencies to manage the risks associated with their activities and the secretariat's role of selective oversight based on risk and capacity.
With respect to oversight relating to the secretariat's contracting policy, the committee has recommended that the secretariat “fulfill all of its responsibilities in the area of contracting, as set forth under section 5.1 of the contracting policy”, which is recommendation No. 14, and that it, “include measures to improve the monitoring of contracting activities”.
In 2003 the secretariat amended and expanded the oversight activities described in the contracting policy. Most notably, the government now publicly discloses on the Internet procurement contracts worth more than $10,000. In addition, senior government officials and political staff are required to publicly disclose their travel and hospitality expenses on the Internet on a quarterly basis.
The committee has stressed the importance of improving the internal audit services for small departments and agencies, and the government agrees.
In the past two years the government re-established the Comptroller General of Canada within Treasury Board Secretariat. It has also put in place stronger financial controls to ensure the rigorous stewardship of public funds.
On November 18, 2004 the President of the Treasury Board announced a multi-year initiative to strengthen the internal audit function across the federal government. The multi-year initiative will enhance the internal audit capacity across the public sector and introduce standardized, proven audit processes.
A key component of the announcement was that the comptroller general's office focus on internal audit services for small departments and agencies that have limited or no internal audit resources. This was the case within the Office of the Privacy Commissioner. These include: plans to appoint professionally accredited comptrollers to sign off on all new spending initiatives; bolstering the internal audit function on a government-wide basis; the development of enterprise-wide systems to track all spending and other tools for effective scrutiny and decision making; and the commitment to audit all annual financial statements of departments and agencies within five years.
That is a broad approach across all of government to ensure that the moneys are used for the purposes for which they were voted. The committee has done a lot of good work, and the government is responding.
I will now turn to two recommendations, Nos. 8 and 10, where the secretariat is unable to accept fully the recommendations put forth by the committee due to cabinet confidence and accountability considerations, respectively.
In recommendation No. 8, the committee suggests “Parliament be informed of any exemption from Treasury Board policies extended to entities listed in schedule I.1, sections 2 and 3, of the Financial Administration Act, and the reasons for such exemption”.
Treasury Board Secretariat will, upon Parliament's request, report on exemptions to the extent that it can without revealing information that constitutes a cabinet confidence. I believe this fully meets the spirit of the recommendation and gives Parliament what it really needs.
In the case of recommendation No. 10 where the committee suggests that the secretariat report all instances where “it has had to intervene to ensure compliance with TB policies”, the government cannot fully implement the recommendation. The recommendation includes the requirement for the secretariat to reveal in its departmental performance report the name of the institution involved, the nature of the breach and the corrective measures taken.
Departments and agencies must be accountable for reporting on the performance of these organizations, including the results they achieve as well as the actions they take to address identified deficiencies. These are to be reported in their departmental performance reports as required by the Treasury Board Secretariat.
The secretariat's decisions to take further oversight action or to intervene are based on judgment, taking into consideration the issues associated with a particular situation, the nature of the risks and the actions of the department in taking early and effective remedial action.
Independent of the reports we have received from the Auditor General and the Standing Committee on Public Accounts, the government has made great strides in improving its internal audit and oversight functions. It has done this with the goal of improving public sector management for the benefit of all government departments and agencies, no matter how big, no matter how small.
Before closing, I must thank the members of the government operations and estimates committee and the Office of the Auditor General for their contributions regarding this matter. The work that was done by the government operations and estimates committee, the Auditor General and now the Standing Committee on Public Accounts has proven that the parliamentary process is alive and well. Parliament continues to have a strong role in holding the government to account.
I would also like to commend the work of the Privacy Commissioner and her team. We have spent countless hours working with the commissioner, Jennifer Stoddart, and her team of professionals over the past two years. They have been extremely cooperative and helpful in finding solutions.
By sharing the responsibility for both the positive and the negative aspects of the machinery of government, the Government of Canada, Parliament and the Office of the Privacy Commissioner have proven their commitment to greater accountability and transparency.
The Government of Canada will continue its work. It will continue to move forward in a constructive way for the benefit of all Canadians.
We know that sometimes parliamentarians are frustrated by the amount of time it takes to get action on a program, a project or an initiative of government. We know that approvals are slow to come. We blame the bureaucracy. Citizens might even blame parliamentarians.
However, it is important when we are dealing with taxpayers' money that there be transparencies and checks and balances. We know when those fail how catastrophic or how difficult it can be for the public to understand. We can find through the ages many examples of systems that were not completely in place or completely followed.
As for the initiative of establishing the comptroller general function to ensure, particularly in new spending programs, that the systems are consistent with the Financial Administration Act, with Treasury Board guidelines, and that they achieve for the people what the money was set out to do, I think that is very, very important.
It is important also that organizations and officers of Parliament like the Auditor General be fully independent and well financed and that there be a method to work with Parliament to ensure that the resources are there for those organizations so they can do their jobs. At the same time, we as Canadians do not want the machinery of government to grow so big and so cumbersome that it does not do what it is supposed to do for a reasonable amount. There is always a bit of give and take.
If we look at the committee's recommendations and the way they have been implemented by the government, I think we will see that we are meeting this for Canadians. We are making sure that we have the systems in place.
Again let me say that sometimes it is cumbersome and sometimes it is slow. Many times I am frustrated in my work as a parliamentarian when I am waiting for the Treasury Board Secretariat to go through its due diligence, to do its work prior to a minister being able to advance on a budget area or a new program of government so that we can assist in the communities and do the work of government, but we have to understand that. We have to make sure.
Yes, it is expensive. It adds cost to governance, but it also includes transparency.
It might be difficult for Canadians to recognize what it is to administer programs and services across this vast land in an area in the amount of $200 billion. They assume sometimes that the finance minister sits at the table, writes the cheques and follows the programs.
That is impossible in our system. It is too big. There are many departments and agencies. There is work in cooperation with the provincial governments, with municipalities and with independent agencies, so it is important that the bureaucracy be able to manage the finances in accordance with the orders given by Parliament in the budget and in all other programs.
What we have to see happen is that any time we have a failing, any time where we see that it is not done right, we have to implement new systems or change our systems so that we never have those kinds of occurrences again.
I think we all know of one example, which we are studying in depth now. The commissioner is looking at all the elements and will be making recommendations. We know there have been no problems in the last four years. This was a program that had problems. The problems were fixed. Eventually the program was cancelled and a lot of action was taken in light of what we have learned already.
However, it is going to be important that we review completely the recommendations that will be coming forward to see if there are additional things we must do.
The comptroller function is very important as administered by the departmental comptrollers through the Treasury Board Secretariat and the Comptroller General, but also in working with smaller agencies that might not have those capabilities. We take care of that. We make sure that the office works and helps to do internal audits.
Quite often we can find the problems early with internal audits. As well, with a good control function we can make sure that we do not multiply the mistakes and that we have a transparent system in place so that Canadians can understand how their money is used, how Parliament decides what the priorities are for Canadians, and what systems are in place for putting action to those recommendations and controlling the costs in a reasonable manner. Canadians should be able to know.
When we look at contracting above $10,000, we see that Canadian small businesses across the country have a chance to participate in government programs. Sometimes this can be a very good boost to small businesses and bring them to the medium level and perhaps to a larger one. They have access to the amount of money I mentioned, the $200 billion a year total that government expends within the country, a lot of it in the military, a lot of it in health, a lot of it in the various parts in education and transfers to various regions, but a lot of it in public works.
In Atlantic Canada, one of the elements of public works that is very important to us is wharf construction: harbours. We all know of examples where things have not gone as they should. In my community, there is the port of Digby. It is very important to me that this port be returned to the community. Now, if we had had all the measures in place and a proper comptroller function at the time, perhaps that would not ever have happened.
Perhaps an internal audit would have suggested that it was not the best way to allocate resources, both financial and infrastructure, such as the board managed by a group that had no interest in that community and did not intend or has not shown any desire to meet the commitments that government intended with that facility.
That cost a lot of money. That cost a lot of pain. In an instance like this we are in a position now where we must find a way to bring that facility back into the hands and control of the community. Certainly I believe it will mean that the federal government will have to make an investment with the community in bringing that port back to a facility that can meet its original intention, which the federal government wanted.