HUMA Committee Report

Introduction

The Progressive Conservative Party of Canada wishes to present a dissenting report on the study of Human Resources Development Canada grants and contributions programs by the Standing Committee of Human Resources Development and the Status of Persons With Disabilities.

The Progressive Conservative Party of Canada supports in principle the existence of grants and contributions programs such as the ones offered by Human Resources Development Canada. These programs are designed to help Canadians who need assistance from the government. However, the PC Party of Canada cannot support such programs if Canadians are not 100% sure that the monies involved are invested wisely.

Evidence

This Party agrees wholeheartedly with the Information Commissioner, Mr. John Reid, who said when appearing before the Standing Committee of Human Resources Development on March 28, 2000; "…governments have no money of their own, they are trustees for our money and trustees for the various programs and activities they undertake on our behalf and for us." Mr. Reid also said when testifying for the Committee that the "question of record-keeping shortcomings throughout the government is not a new problem." The PC Party finds this comment from the Information Commissioner very disturbing.

The PC Party of Canada is also greatly concerned with the comments made by Mr. Denis Desautels. The Auditor General said when he testified for the Committee on March 23, 2000: "In 1998-99, discretionary programs accounted for an expenditure of approximately $17 billion across government and 17% of that by HRDC. I cannot help but express frustration with the way the government manages grants and contributions in general." It means that other departments and governmental agencies may also be in disarray when it comes to manage grants and contributions programs.

HRDC’s own employees, according to their union representatives, who appeared before the Committee on April 6, are very concerned by the audit’s findings. They believe the root of the problem is the 5,000 jobs cut within the Department itself which overloaded the remaining workers. According to the Association of Public Service Financial Administrators, they also believe that "these administrative problems are the result of antiquated financial practices and significant cuts resulting from progam review." They added that the presence of unqualified individuals in financial positions was diluting the quality of financial expertise.

From what the Committee has been told by the Auditor General and the Information Commissioner, Canadians cannot rely on the government’s ability to administer their money. Record-keeping is in a state of disarray. We have heard contradictory evidence from witnesses at Committee. There is a huge difference of opinion regarding the causes of the management fiasco at HRDC. While the higher hierarchy denies any political interference in the approval process of grants and contributions, the men and women in the front line of services are saying the opposite. Union representatives blame the 5,000 jobs cut at HRDC for the management problems. Mr. Cres Pascucci, National President of the Canada Employment and Immigration Union, who represents public servants working at HRDC Department, when questioned by the PC sitting member, advised the Committee that he was told by employees that they received verbal orders to do illegal things, such as tampering with government documents.

When we know that the audit entitled Program Integrity: Grants and Contributions was completed well before the Minister made it public, Parlementarians and Canadians alike are concerned. The fact that the Department had prepared for its publication as early as August 1999 is no less disturbing.

The PC Party of Canada states that Canadians need to be reassured of their government’s willingness to find solutions to the management problems found at HRDC with the internal audit conducted in 1999. The Committee has heard many witnesses, but unfortunately, we as a party, feel that the present government is not ready to get to the bottom of this huge mismanagement fiasco.

The PC Party of Canada is not reassured by the government six-point plan in order to fix the problem at HRDC Department. Employees from this Department have stated before Committee that this so called "six-point plan" would not bring a complete remedy to the huge management fiasco deterred by the internal audit completed by the Human Resources Development Canada in 1999.

Recommendation

The Progressive Conservative Party of Canada therefore believes that a full, independent and public inquiry is in order. We believe it’s the best way to restore Canadian’s confidence in their government’s ability to manage their tax dollars.

A complete study of this nature is needed in view of the present crisis at HRDC. Canadians deserve answers to their numerous unanswered questions.