PACC Committee Report

Pursuant to Standing order 108(3)(e), the Standing Committee on Public Accounts has the honour to present its

TWELFTH REPORT

The Standing Committee on Public Accounts has considered Chapter 9 of the April 2000 Report of the Auditor General of Canada (Streamlining the Human Resource Management Regime: A Study of Changing Roles and Responsibilities)and the Committee has agreed to report the following:

INTRODUCTION

The federal public service provides essential services to fellow Canadians and advises ministers of the day on issues and policy options on a wide range of matters. Public servants are expected to be non-partisan and to provide government services and programs honestly, fairly, impartially, and cost-effectively.

Given the reputation and performance that federal public servants are expected to uphold, it is essential that the federal government possess the capacity to deliver results, through its ability to attract, develop, and retain qualified people. In order to achieve this, particularly in a time of major pressures within the public service, changing labour markets, and increasing demand on public servants, there must be an effective human resource management regime.

The basic framework for managing people in the 20 departments and some 60 agencies that constitutes the “core” of the federal public service dates back to 1967 and comprises three pieces of legislation: the Public Service Staff Relations Act, the Financial Administration Act, and the Public Service Employment Act. A fourth Act, the Public Service Superannuation Act, provides for pensions for the public service of Canada. Since 1967, additional pieces of legislation have been added to the governing framework, such as the Official Languages Act, the Canadian Human Rights Act, the Canadian Charter of Rights and Freedoms, the Access to Information Act, the Privacy Act, and the Employment Equity Act.

The Treasury Board and its Secretariat, the Privy Council Office, the Public Service Commission and line departments all play key roles in the management of human resources in the core public service. Along with the key players, there is a host of smaller participants such as bargaining agents, various federal organizations, and professional associations that influence the human resource management regime. Those federal public sector entities outside this “core” have greater autonomy in managing their affairs, especially their human resources.

The Standing Committee on Public Accounts is very concerned about how well the federal government manages its human resources. As a result, it decided to examine the observations and consider the recommendations contained in Chapter 9 of the April 2000 Report of the Auditor General of Canada. The Committee first heard testimony on this matter on 5 October 2000. However, before the Committee had the opportunity to review and adopt a report on Chapter 9 and table it in the House of Commons, Parliament was dissolved and a federal election was called.

In the 30 January 2001 Speech from the Throne, the government indicated that it was committed to reforming the public service of Canada to ensure that the Service is innovative, dynamic and reflective of the country’s diversity.

In February 2001, Mr. L. Denis Desautels tabled the December 2000 Report of the Office of the Auditor General of Canada and a “Capstone” report reflecting on the evolution of the federal administration during his tenure as the Auditor General of Canada. Both documents contained important comments and observations on the current state of the public service in Canada and the pressing need for reform.

In March 2001, the President of the Treasury Board, Mrs. Lucienne Robillard, announced a comprehensive overhaul of the federal public service which sought to modernize the entire framework of policy and legislation regulating the human resource management regime of the federal government. The overhaul proposed an 18-month timetable to develop an action plan, including amendments to reform the legislative framework.

In April 2001, the Prime Minister announced the formation of the Task Force on Modernizing Human Resources Management in the Public Service. Its mandate is to recommend a modern legislative and institutional framework for the management of human resources, to enable the public service to attract, retain and develop the talent needed to serve Canadians. The Prime Minister appointed Mr. Ranald A. Quail as Senior Advisor to the Privy Council Office to head the Task Force, which will report to Mr. Mel Cappe, Clerk of the Privy Council, Secretary to Cabinet and Head of the Public Service. The Task Force will support the President of the Treasury Board as Minister responsible for human resources management reform.

In light of all these recent developments, the Committee decided to hold more hearings on the human resource management regime of the federal government and invited all major participants involved in the public service reform initiative. On 3 May 2001, the Committee heard testimony from witnesses of the Public Service Commission. The next meeting was held on May 15, with senior officials from the Secretariat of the Treasury Board of Canada. The Committee reconvened two days later, on May 17, to consider evidence from the Privy Council Office.

Representing the Office of the Auditor General of Canada were Mr. L. Denis Desautels (Auditor General of Canada prior to his retirement on 31 March 2001), Mrs. Sheila Fraser (Interim Auditor General of Canada subsequent to 31 March 2001), Mrs. Maria Barrados (Assistant Auditor General), Mr. John Holmes (Principal, Audit Operations Branch) and Mrs. Kathryn Elliot (Principal, Audit Operations Branch). Those representing the Public Service Commission were Mr. Scott Serson (President), Ms. Amelita A. Armit (Vice-President, Staffing and Recruitment Programs Branch), Mr. Douglas Rimmer (Vice-President, Policy, Research and Communications Branch) and Mr. Michael Nelson (Vice-President, Corporate Services). The witnesses for the Secretariat of the Treasury Board of Canada were Mr. Frank Claydon (Secretary of the Treasury Board and Comptroller General of Canada), Ms. Carole Swan (Associate Secretary of the Treasury Board) and Mr. Marcel Nouvet (Chief, Human Resource Officer of the Treasury Board). The Privy Council Office was represented by Mr. Mel Cappe (Clerk of the Privy Council and Secretary to the Cabinet) and Mr. Ranald A. Quail (Deputy Minister and Head of Human Resources Modernization Task Force).