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Parliament and Government Restoring Accountability Recommendations © Her Majesty the Queen in Right of Canada, represented by the Minister of Public Works and Government Services, 2006 Cat. No: CP32-86/3-2006E ISBN: 0-660-19534-8 Available through your local bookseller or through Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario KIA OS5 Telephone: (613) 941-5995 Orders only: 1 800 635-7943 Fax: (613) 954-5779 or 1 800 565-7757 Internet: http://publications.gc.ca Ce document est également publié en français sous le titre Rétablir l'imputabilité Recommandations Commission of Inquiry into the Commission d'enquête sur le Sponsorship Program and programme de commandites et Advertising Activities les activités publicitaires Justice John H. Gomery Juge John H. Gomery Commissioner Commissaire February 1, 2006 To Her Excellency The Governor General in Council May it please Your Excellency: As Commissioner appointed by Order in Council P.C. 2004-110 which was promulgated on February 19, 2004 pursuant to Part I of the Inquiries Act, and in accordance with the Terms of Reference assigned therein, I have completed my investigation and analysis of the sponsorship program and advertising activities of the Government of Canada and respectfully submit this report entitled “Restoring Accountability.” This report contains recommendations based on the findings presented in my Fact Finding report released on November 1, 2005, entitled “Who Is Responsible?” John H. Gomery Commissioner Guy-Favreau Complex Complexe Guy-Favreau 200 René-Lévesque Blvd. West 200, boul. René-Lévesque ouest P.O. Box 608, Montreal, Quebec C.P. 608, Montréal (Québec) H2Z 1X4 H2Z 1X4 (514) 283-8093 télécopieur / fax (514) 283-8138 CONTENTS PART ONE: BACKGROUND 1 INTRODUCTION 3 The Commission’s Second Mandate 4 Seeking the Views of Canadians 5 The Need for Greater Accountability 5 Improving Accountability to Parliament 7 Defining Accountability 8 Changing the Culture 10 Outline of the Report 12 2 WHAT HAS BEEN DONE 15 Government Initiatives 16 Changes to Crown Corporations 16 Proposed Reforms to the Financial Administration Act 18 Clarifying Responsibilities and Accountability 19 New Management Reforms 23 Assessing the Reforms 26 3 WHAT CANADIANS SAID 33 The Sponsorship Program: A Unique or a Systemic Problem? 34 Accountability 35 Taking Responsibility 38 Revitalizing the Public Service 39 The Application of Sanctions 40 Advertising, Sponsorships and Politics 42 The Need for Transparency and Access to Information 42 Whistleblowing Legislation 44 Other Integrity Mechanisms 45 The Need for a Culture Change 46 PART TWO: ACCOUNTABILITY 4 PARLIAMENT AND GOVERNMENT 51 The Estimates 54 The Identity and Role of the Public Service 62 Accountability of the Public Service 67 Partisanship and Accountability to Parliament 70 The Role of the Public Accounts Committee 75 5 THE RESPONSIBILITIES AND ACCOUNTABILITIES OF DEPUTY MINISTERS 83 The Statutory Responsibilities of Deputy Ministers 84 Who Are “Senior Public Servants”? 85 The Powers of Deputy Ministers 87 Disagreement about the Accountability of Deputy Ministers before the Public Accounts Committee 91 Deputy Ministerial Responsibility and Accountability 96 Ground Rules for Appearances of Deputy Ministers before Parliamentary Committees 100 Disagreements between Ministers and Deputy Ministers 101 Renewed Emphasis on Administrative Responsibilities 106 Tenure in Office 107 6 STRENGTHENING THE CHAIN OF ACCOUNTABILITY 113 Deputy Ministers 115 The Public Accounts Committee 117 The Treasury Board 119 The Office of the Auditor General 122 A Collaborative Effort 122 7 THE PRIME MINISTER, MINISTERS AND THEIR EXEMPT STAFF 127 The Prime Minister 128 Separating the Political from the Administrative 130 Special Reserve Funds 131 Ministers 132 Exempt Staff 135 8 THE PRIVY COUNCIL OFFICE AND THE CLERK 141 The Privy Council Office 142 The Clerk:The Early Years 146 The Clerk Today 147 The Need for Reform 148 PART THREE: TRANSPARENCY 9 ADVERTISING, SPONSORSHIP INITIATIVES AND LOBBYING 157 Objectives of the Government’s Advertising Policy 158 Changes to Advertising Procedures 159 Defining “Advertising” 160 Advertising Oversight 161 What Is the Appropriate Centre for the Oversight of Government Advertising Activity? 164 Obtaining Value for Money 166 Building Professional Capacity 167 Sponsorships 168 Final Thoughts on Advertising and Sponsorships 171 Overseeing Lobbying 171 10 TRANSPARENCY AND BETTER MANAGEMENT 177 Access to Information 179 Mandatory Record-Keeping 180 Support for Amendments to the Access to Information Act 181 Whistleblower Legislation 185 Sanctions under the Financial Administration Act 187 Appointments to Crown Corporations 188 Internal Audit 190 PART FOUR: CONCLUSIONS AND RECOMMENDATIONS 11 REBALANCING THE RELATIONSHIP BETWEEN PARLIAMENT AND GOVERNMENT 197 Consolidated Recommendations 199 APPENDICES Appendix A TERMS OF REFERENCE 207 Appendix B ADVISORY COMMITTEE MEMBERS 211 Appendix C RESEARCH PROGRAM PARTICIPANTS AND STUDIES 221 Appendix D WRITTEN SUBMISSIONS 225 Appendix E ROUNDTABLE PARTICIPANTS 231 Appendix F CONSULTATION QUESTIONS 237 Appendix G STAFF OF THE COMMISSION 241 PREFACE Preface and Acknowledgements When I undertook to act as Commissioner of this Inquiry,I was conscious of my limitations, one of which was my lack of qualifications and specialized knowledge in the fields of Canadian political institutions, government, and public administration. As the public hearings progressed, I underwent an intensive educational experience in these areas,as witnesses testified about the structure of the federal government in Canada, and the rules, written and unwritten, that govern it. Nonetheless,I was aware that I needed much more expertise than what was being communicated to me in the hearings. In civil or criminal cases, when a Judge is called upon to make a ruling on a matter requiring specialized knowledge,the Judge will expect that the parties involved in the litigation will call to testify expert witnesses able to advise the Court on the technical aspects of the case,and to express informed opinions.Invariably,the experts also produce detailed reports explaining the background of their conclusions. In this way, the Judge ix RESTORING ACCOUNTABILITY:RECOMMENDATIONS becomes sufficiently educated in an area until then unknown to him or her, and is able to come to a rational conclusion. It was on the basis of my experience as a trial judge that I realized that it would be necessary to recruit a team of experts possessing the experience and expertise that I lacked, which could assist and advise the Commission in the preparation of the present Report and the formulation of the recommendations that it contains. The theme that resonated in my mind throughout our hearings and as I began to assess the evidence before me was the necessary link between responsibility and accountability. Last November, I presented my conclusions, based on the evidence, on who was responsible for many of the actions that led to this Inquiry. In this final Report, I offer my views on who should be held accountable for administering our system of government and how to make that system stronger and more transparent. The recommendations in this Report seek to restore accountability to our federal system of government. The Report itself, in the first Chapter, describes in a general way the many sources that were consulted,and in several Appendices the reader will find the names and the qualifications of the persons who provided the Commission with the fruit of their knowledge, experience and wisdom.These are persons who deserve to be called great Canadians, and the Commission is deeply indebted to them all. On behalf of the Commission and on behalf of all Canadians, we thank them sincerely for their time and efforts. Special thanks are due to Mr. Raymond Garneau, who accepted to act as the Chair of the Advisory Committee, and the members of his Committee, which conducted consultations of distinguished experts in public life in five Canadian cities.The Advisory Committee, on the basis of the consultations conducted across Canada and on the basis of x the accumulated experience of its own members, provided the Commission with invaluable insight and counsel.Mr.Garneau took time from a very busy schedule to devote himself whole-heartedly to the task of guiding the work of the Advisory Committee,which he directed with skill and tact. The Advisory Committee was put together at my request by Dr. Donald Savoie, a professor at the University of Moncton, an acknowledged authority on Canadian governmental institutions and practices, and the author of many books and articles on these subjects. I owe him particular thanks for all his efforts in directing the research program, a task that he discharged with remarkable energy and good humour.Dr.Savoie commissioned on our behalf the 17 research studies that form part of this Report, and that have contributed greatly to the Commission’s understanding of the complex issues dealt with in the Report. He also assisted in the drafting of the Report. It is only fair to say that the Commission would not have been able to accomplish its mandate and objectives without his participation. Many others, employees of the Commission and persons engaged by contract to render services to it, worked diligently and under intense pressure to produce the Report on time. I cannot begin to thank each one of them by name for fear of overlooking one or two, but assure them of my gratitude for their expert assistance. Finally,
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