Government Operations committee  Madam Chair, I would say that issues related to petitions and labour relations are handled by the deputy minister and by the staff of Correctional Services. The rules governing their labour relations are sufficient to address these matters. They are doing so in accordance with the standards and mechanisms set out in collective agreements and with established procedures.

Government Operations committee  That's correct.

Government Operations committee  Well, they are reflected in the main estimates, Madam Chair, and they are reflected in the public accounts, so it is—

Government Operations committee  Which headings?

Government Operations committee  The costs are identified in the standard objects because those are pretty well fixed by...for example, rental is one. In terms of the cost of living, those are in fact calculated by Statistics Canada and those are provided to us. When we look at the budget impacts for operating expenditures on departments on a normal basis, we do not factor those in.

Government Operations committee  Madam Chair, your colleague asked several questions. Indeed, deputy ministers all have the same means at their disposal. Standards, policies and degree of flexibility are the same for everyone. Deputy ministers are used to managing increases and decreases, to maintaining critical services and key services and to increasing efficiency.

Government Operations committee  That's correct.

Government Operations committee  Yes, that's correct.

Government Operations committee  I'm sorry, what do you mean by the 1.5%? Do you mean the wage bill that is not--

Government Operations committee  I will perhaps turn to my colleague to expand on that. I think if we look at the main estimates and the standard objects, the areas that will likely provide flexibility, as I indicated, are on professional services, areas of transportation and communications. Those are where there is some flexibility, and that is by each department.

Government Operations committee  I will ask my colleague to give you a partial response to that, but in effect we would also have to go through each one of the elements per department to see what are in fact the areas that are not fixed. If I may, I will ask Mr. Smith to add to that.

Government Operations committee  They have not been identified because it is left with each organization. The votes in the parliamentary appropriations are done with each organization. Again, this was part of the approach, and it remains part of the approach. Really, it is up to each organization to make those determinations, because the votes and the amounts that are voted by Parliament are actually voted by minister and by department.

Government Operations committee  These costs are not estimated by Treasury Board because we do not estimate them on a normal basis.

Government Operations committee  We have a general understanding of what are the fixed operating costs of government because we look at each organization, as you will do, in the main estimates and the public accounts. We also have a fair assessment, like everybody, of what the cost of increases is likely to be, but we also—

Government Operations committee  In terms of the flexibilities, there are some fixed costs. For example, there are some fixed costs with regard to either rentals or utilities, depending on the size of the occupation. There is, however, quite a bit of flexibility when you look at professional services, when we look at transportation and communication costs.