Mr. Speaker, it is a privilege and honour to rise in the House this evening to contribute to this debate on the estimates and supply.
As a member of the government operations committee, I can say we have definitely had a very rigorous and fulsome debate on this issue. I just want to give a brief recap of where the government has come from and where it is going, moving forward in an open and transparent manner.
The supply process of which the estimates are a part is one of the cornerstones of Canada's democratic government. It dates back to the British feudal system and the development of Parliament as a check on the spending authority of the monarch.
Although the system has evolved since then, its overall principle has remained the same. No payments can be made out of the consolidated revenue fund without the authority of Parliament. The legislative process, including supply, is the mechanism through which this authority is given. The supply process is rooted in both law and parliamentary tradition.
Estimates present information in support of supply bills, and while there have been changes to the presentation of estimates over time, there have been only a few changes to their fundamental form and content. These were largely as a result of recommendations from parliamentary committees.
I am pleased this evening to recognize the significance of the committee's work, as well as the significance for parliamentarians of today and the future, who will be better able to serve Canadians as a result of the committee's efforts.
I was especially encouraged by the scope of the study and the range of views and perspectives presented to the committee. As I mentioned, we had a variety of witnesses from across Canada and around the world giving their input and sharing their wisdom and experience.
I believe this shows the complexity of the issues being studied and the approaches to improving them. In short, the committee has taken considerable time and effort to review the evidence, and its effort is a good start to reforming the estimate process.
I would now like to summarize the government's overall response to this report. First of all, we agree with almost all of the recommendations directed to government. As members know, some of the other recommendations were directed to parliamentary committees and the House of Commons, as has been alluded to this evening.
We have taken note of these other recommendations and offered observations or comments where appropriate. Let me elaborate briefly on the recommendations directed to the government.
Recommendation 1 is that the Treasury Board of Canada Secretariat complete its study of accrual-based budgeting and appropriations and report back to Parliament by March 31, 2013. We agree. This is consistent with our response to the House of Commons Standing Committee on Public Accounts report tabled in August 2012.
Recommendation 2 is that the Treasury Board Secretariat transition the estimates and related appropriation acts from the current model to a program activity model—that is, taking the current model and moving to a program activity model. We are going to assist the federal departments with this process and prepare a timeline for this transition by March 31, 2013, and transmit this timeline to our committee.
We consider this to be a very significant recommendation to come from a report, a change in the vote structure, so that estimates align with specific strategic outcomes and program activity spending, providing a clear, traceable line between authorities, strategic outcomes and related program activities. The government is committed to developing and consulting on a cost-effective means of implementing this recommendation.
Recommendation 7 is that the government identify separately, in the main estimates and the supplementary estimates, all new funding that is included in the votes and that it be cross-referenced to the appropriate budget source.
Once again the government agrees. We will identify new programs that are receiving first-time funding in the main estimates and the supplementary estimates with the appropriate source of funds from the fiscal framework.
Recommendation 12 is that the departments and agencies include tax expenditures in the reports on plans and priorities, as determined by the Secretariat, to best fit their mandate.
Currently, the expenditures are included in the Department of Finance's tax expenditures and evaluations report. We agree in principle with this recommendation. We are offering a little different approach in the sense that tax expenditures are the responsibility of the Minister of Finance. The allocation of tax expenditures to other departments could be subject to interpretation. Tax expenditures are estimated on the basis of the calendar year, not the fiscal year. We have to make sure there is an understanding that one is based on the calendar year and the other on the fiscal year.
The government believes that information on tax expenditures should not be included in the reports on plans and priorities of other departments and agencies.
Having said that, to give parliamentarians a broader perspective on government expenses, the government will coordinate the release of the tax expenditures and evaluations publication with that of the main estimates on or around March 1 of each year. We will also add a reference with a hyperlink to the tax expenditures and evaluations publication in departments' RPPs. This will include a note indicating that the tax measures in the publication are the sole responsibility of the Minister of Finance and directing Department of Finance officials to provide briefings on the publication at the committee's request. As the committee recommends, Department of Finance officials will update the committee.
Recommendations 4, 5 and 16 are linked. Recommendation 4 is that departments' reports on plans and priorities, otherwise known as RPPs, should contain financial information by program activity for three previous fiscal years and three future years. We are looking at three past and three forward, giving the committee a good perspective and parliamentarians an understanding of the six-year time span. The government agrees with this recommendation. This information should be made more readily available. The secretariat will also look at the electronic presentation of the reports on plans and priorities.
Recommendation 5 is that the reports on plans and priorities include an explanation of any changes in planned spending over time and any of the variances between planned and actual results by fiscal year, as available. Once again, we agree. The secretariat will provide guidance to departments to enhance the appropriate sections of the reports on plans and priorities and the departmental performance reports.
Recommendation 16 is that the government develop a searchable online database that contains information on departmental spending by type of expense and program. We agree.
Recommendations 4, 5 and 16 are also linked to our open government initiative. Open government is about sharing government information with Canadians. Therefore, the recommendations are timely. There are widespread possibilities for the use of open data to support the desire among stakeholders for better information on estimates and supply.
Once again, it only makes sense that we should take advantage of technology and recent initiatives to do that. I must say that the President of the Treasury Board has been a strong advocate already in many ways of implementing technology to help put this information online and make it more accessible, not only for parliamentarians but for all Canadians.
In short, the government agrees or agrees in principle with all but one of the recommendations directed to it. We disagree with the recommendation regarding the establishment of a fixed tabling date of February 1 for the budget. As a member of the committee, there was a lot of debate on this particular issue and, in the opinion of the government, this would restrict the government's flexibility to respond to global and domestic economic conditions. I understand flexibility is needed especially during these uncertain times globally, with the fiscal crisis that we have come through and uncertain times in the future.
In many cases, these global and domestic imperatives play a determining role in decisions related to budget timing and the government should not be bound by arbitrary dates that constrain its ability to respond to a dynamic economic environment. This is not a partisan issue. It is in the best interests of whichever party is governing our country at the time to make it sure has the flexibility required to make the best decisions for the specific economic situation at the time, at home and around the world.
The report also contains many recommendations directed to other organizations, including standing committees, the Standing Committee on Procedure and House Affairs and the House of Commons, where we are this evening, which is not within our purview to comment on. This speaks to the thoroughness of this work and the wide perspective with which the committee carried out its review.
Overall, our agreement with most of the recommendations directed to the government is a positive result. It is a testament, I believe, to the committee working very co-operatively, as alluded to by previous speakers, with the desire to improve the system and to the government's commitment to advancing accountability and transparency in our public institutions. It also speaks to the ability of parliamentarians to work together across party lines for the good of Canada.
Strengthening accountability and transparency was part of the government's promise to Canadians when we were first elected in 2006. January 23, 2006, as a matter of fact, was when I was first elected. The platform was accountability and transparency and we brought in Bill C-2 in that year, the toughest legislation on accountability. We continue to move forward as an open and transparent government. We have not wavered from that commitment and have been hard at work since then. I will provide a few examples.
One of the first things we did after coming into power was bring in the Federal Accountability Act, Bill C-2, and its accompanying action plan. When the legislation received royal assent in December 2006, we immediately acted to reduce the influence of money in elections. As a result, a law prohibiting contributions to political parties by corporations, unions and organizations and lowering the limit on individuals' political contributions came into force on June 12 of that year.
We also gave the government watchdog, the Auditor General, additional powers. Only individuals could contribute. Unions and corporations were prohibited.
If we look at our friends to the south, it is just a mess down there the way the money has taken over. It was such a prudent decision by the government that we brought this in and brought some reasonableness to the debate that happens during our elections across Canada.
We made deputy ministers the accounting officers who must appear before parliamentary committees as accounting officers accountable for the management of their departments.
We put in place measures to provide Canadians with broader and better access to more information from public organizations than ever before.
We extended the Access to Information Act to cover the Canadian Wheat Board, five foundations, five agents of Parliament, and most crown corporations and their wholly owned subsidiaries.
We also introduced measures to strengthen ethical conduct in the public service.
We conducted open and extensive consultations with lobbyists and Canadians related to regulations on the Lobbying Act to ensure that lobbying and government advocacy is done fairly and openly.
We brought into force the Conflict of Interest Act and named a Conflict of Interest and Ethics Commissioner so that Canadians had the opportunity to voice their concerns about unethical behaviour in government and to hold violators accountable.
To give these accountability measures teeth, we introduced new criminal penalties and sanctions for anyone who commits fraud against the Crown, as consequences for their actions, which is only appropriate.
All these reforms helped restore Canadians' trust in our public institutions. However, we did not stop there. We also committed to ensuring that parliamentarians have the information they need to consider estimates and supply bills. We have already taken steps to improve financial reporting and to support parliamentary scrutiny of estimates and supplies.
We have amended the Financial Administration Act to include quarterly financing reporting. This ensures that parliamentarians and Canadians have access to information on government spending on a timely basis.
Financial data sets are now being posted on the Treasury Board Secretariat website and the Open Data portal. The President of the Treasury Board is very aggressive in this matter and wants to use technology to ensure that the information is available to all parliamentarians and Canadians.
In addition, the form and content of reports on plans and priorities and departmental performance reports have been continually improved. Departments and agencies now post their reports of total annual expenditures for travel, hospitality and conferences on their websites. This is on top of other transparency measures already in place, such as proactive disclosure of travel and hospitality expenditures for ministers, ministerial staff and senior government officials detailed in the Public Accounts of Canada.
Let me add that the government has strengthened these internal audit policies and standards and has worked with the audit community to support professional development and capacity. As a result, we have a professional, independent appraisal function in place.
Heads of departments and agencies have to ensure that completed internal audit reports are issued in a timely manner, made accessible to the public and posted on the departmental websites for the public to see. I know it is hard to believe that this was not required in the past. We are holding department heads accountable. In fact, we have been recognized by the Office of the Auditor General for the significant progress made in improving the quality of internal audit across the public service.
Our record on advancing accountability and transparency in Canada's public institutions speaks for itself. We have bolstered parliamentary oversight of organizations, strengthened the rules and tightened scrutiny of government expenditures.
The agreed to recommendations from this committee will do even more to strengthen the understanding of government expenditures.
To fulfill the estimates' time-honoured purpose, such changes are necessary and welcome.
In closing, I once again congratulate the committee for working so hard to improve a process that is at the very heart of Canada's parliamentary democracy. It has been an honour and a privilege to be part of the committee, working together very collegially and in a non-partisan way. I thank the members for their efforts. I look forward to implementing many of the recommendations and to continuing to advance accountability and transparency in the government as these recommendations work through our government operations committee and other committees throughout the House of Commons.