Mr. Speaker, I thank the member for Hamilton Centre for that brief lecture. It would have been preferable if he had just answered my question. I am sure that on a number of occasions he has voted in favour, including on Hamilton budgets that would have included spending money on employing outside firms, despite the fact that he will grandstand in the House and suggest that no such thing should ever happen. In any event, I will move on.
I would just like to take a moment before I get into my speech to recognize somebody from my community, Marie Louise Benson, who just turned 100 years old yesterday. Marie Louise was actually born in the Netherlands and was 17 years old when the Germans invaded Holland. She later moved to Canada after she married the former member of Parliament for Kingston and the Islands, Edgar Benson, who also served in the government of Pierre Elliott Trudeau as the finance minister for four years.
I congratulate Mrs. Benson on 100 years. Yesterday she said, “I'm 100 on the dot, and starting a new year tomorrow”. If we all could have such a great outlook on life, I think this would be such a tremendous place to live in.
It is an honour for me to stand in this place today and speak to the fifth report of the Standing Committee on Government Operations and Estimates, entitled “Federal Government Consulting Contracts Awarded to McKinsey & Company”. At the outset, I would like to thank the committee for undertaking this very important issue.
Contracting for goods and services is a regular part of how the government operates to deliver programs and services to Canadians. The use of professional services complements the work of Canada's public professional service. For example, professional services might be needed to acquire special expertise or to meet the unexpected fluctuations in the workload. Time-limited projects, shortages in certain employment groups and shortages in certain geographic locations may also require the use of professional services. Consultants can also provide independent verification of decisions, offer another viewpoint or establish a set of options for consideration.
I will share some examples of why professional services are needed. We can take, for instance, the firefighters who were brought to help quell the forest fires in British Columbia. Another example is the services needed to operate and maintain our assets and facilities, like cleaning our buildings or repairing our vehicles. The reality is that sometimes the use of external services is necessary. Fortunately, we have robust systems and mechanisms in place to ensure that contracts are awarded in a manner that is fair, open and transparent.
With that in mind, I would like to outline the policies and processes in place for government contracting. As my hon. colleagues will know, the Treasury Board sets the administrative policy for federal procurement, guided by the principles of fairness, openness, transparency, competition and integrity, all while ensuring the best value. The directive of management of procurement sets the expectations and requirements that departments and agencies must follow so that their procurements are managed in a way that supports the delivery of programs and services to Canadians, demonstrates best value and is consistent with the government's and Canada's socio-economic and environmental objectives.
This directive was updated in the last two years, and there is now an explicit requirement that every department have an appointed senior official responsible for procurement. This official is responsible for establishing, implementing and maintaining a departmental procurement framework that consists of processes, systems and controls for procurement. The framework supports the management of procurement so that it is fair, open and transparent.
There are also clearly defined responsibilities for government departments when conducting procurements, including those for services.
First and foremost, government departments and agencies are expected to maintain the integrity of the procurement process and protect government spending from fraud and unethical business practices. This is done through internal processes and controls, such as the standard contract clauses, and by effective mechanisms for disclosure of any wrongdoing.
Second, government departments and agencies are responsible for clearly defining the intended outcomes of a procurement, including operational requirements, expected benefits and how those outcomes align with the government's strategic direction and total costs over the life cycle.
Third, departments are responsible for ensuring that government gets the best value. In that regard, it should be noted that the lowest price is not always the best value. Best value can be defined in policy as a balance between pricing and outcomes, so it includes concepts like socio-economic and environmental considerations.
In addition to these controls, the Treasury Board also sets contracting limits, dollar thresholds that determine which contracts will require Treasury Board authority to allow entry into the contract and which ones are fully delegated to a minister. Under these thresholds, individual departments may enter into contracts by themselves. Public servants at Procurement Canada and Shared Services Canada, as common service providers, can be the contracting authority for other departments and can provide additional due diligence to the department. These departments have higher contracting limits than other departments, so they will typically handle large-scale procurements.
Transparency and accountability are core throughout all of these processes. For instance, government opportunities are posted publicly online at CanadaBuys. Perhaps more importantly, departments are accountable to Parliament and to Canadians through the disclosure of contracting activity, which is reported quarterly. This is in addition to the annual departmental results report, which provides detailed accounts of departments' activities to parliamentarians and to Canadians.
The fact is that every government has an obligation to be transparent and responsible with taxpayer money, and it is an obligation we take extremely seriously. Unethical business behaviour by suppliers has numerous consequences. It undermines fair competition. It threatens the integrity of markets. It is a barrier to economic growth. It increases the cost and risk of doing business. It undermines public confidence in government institutions.
Departments have a responsibility for protecting government spending from fraud, corruption, unethical business practices and collusive behaviour. That is exactly what Public Services and Procurement Canada's integrity regime aims to address. The integrity regime sets out guidelines that help Canada avoid entering into contracts with suppliers that have been convicted of certain offences, like fraud, bribery and bid rigging.
Another critical tool is the Conflict of Interest Act. As hon. colleagues know, the act establishes conflict of interest and postemployment roles for public office holders, which include ministers, ministerial staff and Governor in Council appointees, such as deputy heads. It plays an important role in maintaining public confidence in the integrity of public office holders in government decision-making.
The Conflict of Interest Act has strict guidelines to minimize the possibility of conflicts between private interests and the duties of public officer holders, including when it comes to external contracts. The act also provides a stringent vetting process, with critical safeguards in place to address potential or actual conflicts of interest. They are standard contract clauses, a requirement for proposals to be reviewed through a conflict of interest lens, and the need for evaluators to recuse themselves in the event of real or possible conflicts. In addition, all contracts can be subject to review by internal audits and the Auditor General of Canada.
I would like to also mention the “Open and Accountable Government” document, which sets out core principles regarding the roles and responsibilities of ministers and ministerial exempt staff. For example, exempt staff may ask departmental officials for information, relay instructions from the minister or be informed of decisions in order to address communications and strategic issues.
Let me be very clear on this issue. Exempt staff do not have a role in departmental operations. In fact, they are prohibited by law from exercising the delegated authority of a minister. Furthermore, they are prohibited from giving direction to departmental officials on the discharge of their responsibilities or on issues relating to the management of departmental resources or operational matters.
As public office holders, exempt staff members are exempt and are expected to act with honesty and uphold the highest ethical standards. That means complying with the ethical guidelines outlined in the “Open and Accountable Government” document, as well as conflict of interest and postemployment obligations under the Conflict of Interest Act and the Lobbying Act.
They may also “not knowingly or intentionally encourage or induce other governmental officials, including parliamentarians, Ministers, public servants and other exempt staff members, to act in manner contrary to the law”.
Exempt staff are required to “make themselves aware of ethical standards, expectations, and obligations of public servants set out in the Values and Ethics Code for the Public Sector and departmental codes of conduct”.
This means that they must not “engage public servants in any activity that is inconsistent with their ethical and legal obligations”.
For public servants, the Values and Ethics Code for the Public Sector outlines the values and expected behaviours that guide them in the activities related to their professional duties. The code is wide ranging but, importantly, it provides a platform for employees to report any wrongdoing that they witness. Taken together, these measures play a critical role in ensuring accountability. They are part of a larger system in place to ensure that the government is open and transparent to both parliamentarians and Canadians.
In our parliamentary system, the government provides Parliament with detailed financial information throughout the year. The estimates document, the departmental plans, the public accounts and departmental results report play a critical role by presenting parliamentarians and Canadians with details on the government's activities and spending.
All of the latest financial information, including planned spending authorities and estimated expenditures, is publicly available on the Government of Canada InfoBase and Open Government. This wide range of financial reports supports Parliament's scrutiny of public funds. That said, there is always room for improvement, which is why the government committed to taking steps to strengthen our procurement policy by integrating human rights, environment, social and corporate governance, and supply chain transparency principles into government procurements.
There is no denying that we have a world-class public service. Whether from a formal work site or a home office, public servants across the country continue to provide Canadians with the services they rely on. Like all of us in this place, they are dedicated to serving Canadians. Providing the services Canadians rely on sometimes requires additional support. That said, we know a strong federal public service is the best way to deliver for Canadians. The government is developing a long-term government-wide public service skills strategy, including increasing the number of public servants with modern, digital skills and improving external recruitment.
As we modernize legacy systems and further digitize operations and services, increased investment in IT is essential. Where it makes sense we use internal resources, and where we need to we supplement those with external resources. The Treasury Board of Canada Secretariat is developing government-wide digital talent and digital skills strategies designed to identify and fill critical digital skills gaps while advancing learning and recruitment.
The TBS is also developing new guidance for departments on digital talent sourcing to help plan for its digital talent needs, increase the volume of ready-to-hire talent in pools and ensure recruitment is aligned to priority areas. It is intended to reduce dependency on contracting and to fill digital talent gaps. These efforts are expected to result in improved business intelligence, interdepartmental collaboration and access to digital talent.
Clearly, Canada has robust policies and tools in place to ensure that contracting is done in a professional and non-partisan manner. As an extra level of assurance, the Prime Minister has asked the Minister of Public Services and Procurement and the President of the Treasury Board to undertake a review of all procurements by government departments with McKinsey & Company. The intent of the review will be to verify if these procurements were conducted in accordance with Treasury Board policies and directives.
The government takes its responsibility as the steward of public funds very seriously, and it is committed to ensuring that government spending stands up to the highest levels of scrutiny. To that end, the government welcomes a performance and value-for-money audit, by the Auditor General, of the contracts awarded to McKinsey & Company since January 1, 2011, by any department, agency or Crown corporation.
It will, therefore, be my pleasure to vote in support of this motion.