Evidence of the Standing Committee on Government Operations

43rd PARLIAMENT, 2nd SESSION Standing Committee on Government Operations and Estimates EVIDENCE NUMBER 031 Wednesday, May 12, 2021 Chair: Mr. Robert Kitchen 1 Standing Committee on Government Operations and Estimates Wednesday, May 12, 2021 ● (1640) I would first like to thank the committee for inviting me to dis‐ [English] cuss the Main Estimates 2021‑2022 and the Treasury Board Secre‐ tariat's Departmental Plan 2021‑2022. The Chair (Mr. Robert Kitchen (Souris—Moose Mountain, CPC)): I call this meeting to order. I am accompanied today by some senior officials in my depart‐ Welcome to meeting number 31 of the House of Commons ment, whom I will briefly introduce. They are: Glenn Purves, As‐ Standing Committee on Government Operations and Estimates. sistant Secretary, Expenditure Management Sector, Roger Ermuth, Assistant Comptroller General, Financial Management Sector, Of‐ The committee is meeting today at 4:42 p.m. Ottawa time to hear fice of the Comptroller General, Karen Cahill, Assistant Secretary from the President of the Treasury Board and officials on the main and Chief Financial Officer, Sonya Read, Acting Assistant Secre‐ estimates and departmental plans for 2021-22. tary, Digital and Services Policy, and Tolga Yalkin, Assistant Deputy Minister, Workplace Policies and Services. I'd like to take this opportunity to remind all participants in this meeting that taking screenshots or photos of your screen is not per‐ mitted. [English] To ensure an orderly meeting, I would like to outline a few rules to follow. The 2021-22 main estimates seek funding for the continuation of previously approved programs and services, as well as investments Interpretation in this video conference will work very much as it to support Canadians through the COVID-19 pandemic and to es‐ does in a regular committee meeting. You have the choice at the tablish essential conditions for a successful economic recovery. bottom of your screen of choosing “floor”, “English” or “French”. These investments include economic support to Canadian citizens and businesses, vaccine funding, expanded support for pandemic- Before speaking, please wait until I recognize you by name. related mental health tools, virtual care and many others. When you are ready to speak, you may click on your microphone icon to activate your mike. When you are not speaking, your mike should be on mute. The main estimates provide information on $342.2 billion in pro‐ posed spending for 123 organizations. This can be further broken To raise a point of order during the meeting, committee members down into $141.9 billion in voted expenditures and $200.3 billion should ensure their microphone is unmuted and say “point of order” in statutory expenditures already authorized through existing legis‐ to get the chair's attention. lation. Some $22.7 billion is related to the COVID-19 pandemic re‐ sponse. This includes just over $10 billion for the Canada recovery The clerk and the analysts are participating in the meeting virtu‐ benefit, the Canada recovery sickness benefit and the Canada re‐ ally today. If you need to speak with them during the meeting, covery caregiving benefit. please email them through the committee email address. The clerk may also be reached by using his cellphone number. I would like to point out some significant changes in statutory For those people who are participating in the committee room, spending from last year's main estimates. These include payments please note that masks are required unless you are seated and when to individuals under the Canada Recovery Benefits Act, which I physical distancing is not possible. just mentioned. Other changes of those are updates to major trans‐ fer payments, notably benefits for the elderly and the Canada health With that said, I will now invite the President of the Treasury transfer, and increased climate action incentive payments published Board to make his opening statement. in the 2020 fall economic statement. Mr. Duclos, please go ahead. The main estimates exclude certain items listed in the 2020 fall [Translation] economic statement which do not require annual parliamentary ap‐ Hon. Jean-Yves Duclos (President of the Treasury Board): proval, such as the Canada emergency wage subsidy and employ‐ Thank you, Mr. Chair. ment insurance. 2 OGGO-31 May 12, 2021 ● (1645) prove transparency, to reduce the administrative burden, and to har‐ [Translation] monize regulations. For my own department, the Treasury Board Secretariat, the ex‐ These reforms will be undertaken with the assurance that we will penditures listed in the Main Estimates 2021‑2022 include $3.7 bil‐ be protecting the environment and the health and safety of Canadi‐ lion for items such as government contingencies, government-wide ans. initiatives, paylist requirements, the operating budget carry for‐ ward, the capital budget carry forward, and expenditures related to ● (1650) compensation. [English] The remainder of the Treasury Board Secretariat's expenditures In conclusion, the priorities set out in the secretariat's departmen‐ are to continue to enhance the clarity and consistency of financial tal plan and the investments requested in the main estimates reflect and performance reporting and to support the government's re‐ the priorities of our government and of Canadians. sponse to the pandemic. We continue to prioritize the way these estimates are presented, The budget also contains a little more than $3 billion for our re‐ with extensive explanatory documentation which is readily accessi‐ sponsibilities as an employer. These are payments with respect to ble to parliamentarians and Canadians alike online. public service pensions, benefits and insurance, including the em‐ ployer's contributions to health insurance, salary insurance and life Thank you again for your kind invitation to speak with you to‐ insurance premiums. day. My officials and I would be delighted to answer any questions The department's expenditures will also be used to prepare the you may have. public service for the future, in matters such as diversity, inclusion The Chair: Thank you, Minister. I appreciate your comments. and accessibility, and to ensue compliance with the official lan‐ guages legislation. We'll now go into our first round of questioning. We will start with Mr. Paul-Hus for six minutes. The funds are also used for negotiations with public sector unions, and to lead the implementation of the Pay Equity Act. [Translation] These activities are described in more detail in the Treasury Board Secretariat's departmental plan 2021‑2022, which, as I understand Mr. Pierre Paul-Hus (Charlesbourg—Haute-Saint-Charles, it, has piqued the committee's interest. CPC): Thank you, Mr. Chair. [English] Good afternoon, Mr. Minister. Departmental plans play a fundamental role in the expenditure My regards also to the officials with you today. cycle by outlining and describing organizational priorities linked to the funding sought through the main estimates. The departmental Mr. Duclos, you are the President of the Treasury Board, as well plans set out the objectives and expected results for departments as an economist. In the document that I am about to show you, you and how they will achieve these results throughout the year. will see figure 1, dealing with the composition of expenditures in In the case of the Treasury Board Secretariat, I would like to the Main Estimates 2021‑2022. You will see a green circle, indicat‐ highlight a few of these commitments. For 2021-22, the secretariat ing the cost of servicing the debt. will support the government's COVID-19 pandemic response by This year's budget shows $21 billion for servicing the debt. providing additional guidance to departments for implementing policies, programs and initiatives related to the response. Does that concern you? In collaboration with Finance Canada, the secretariat will also Hon. Jean-Yves Duclos: Thank you, Mr. Paul-Hus, and all my track the impact of the government's fiscal response to inform and colleagues on the committee. support decision-making and investments going forward. I am indeed an economist by training and I am also President of Other important objectives include reducing greenhouse gas the Treasury Board. As such, my responsibility is to ensure that the emissions from federal operations and recruiting people to the pub‐ Government of Canada's funds and efforts are directed to where the lic service from communities across Canada. pandemic makes it important. [Translation] As an economist, I also understand, as do many others, that, if In addition, the secretariat actively works to support the creation we had not invested quickly and massively to support Canadians of healthy, safe and inclusive workplaces, and to speed up govern‐ and their companies, the result would have been terrible. We would ment efforts to achieve a public service that is representative of the have found ourselves not only in an extraordinary economic crisis, Canadian population it serves. but also in a social crisis… My department is also committed to efforts to reform regulations Mr. Pierre Paul-Hus: Mr. Duclos, you know that I do not have a in order to help Canadian companies be more competitive, to im‐ lot of time. May 12, 2021 OGGO-31 3 I want to know whether it concerns you. I especially want to Mr. Pierre Paul-Hus: My question was specifically about Cor‐ know whether you have assessed the impact that a 1% increase in rectional Service of Canada officers. Could they receive that danger the interest rate could have on Canada's finances. pay? Hon. Jean-Yves Duclos: We know two things about that. Hon. Jean-Yves Duclos: Very good. Thank you for making the First, the interest to GDP ratio in Canada is the lowest it has been distinction between a question about the $1.8 billion and a question for almost a century. about the Correctional Service of Canada officers.

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