Media Room
Speeches
Speaking notes for the
Honourable Scott Brison
Minister of Public Works and
Government Services Canada
On the occasion of an address to the
Oakville Chamber of Commerce
January 12, 2005
Oakville, Ontario
Check against delivery
Good evening, ladies and gentlemen.
I am very happy to have this chance to address members of the Oakville
Chamber of Commerce. This is my first speaking engagement of the
New Year.
And I'm delighted that this initial talk of 2005 is with a business
group. After all, I have a private sector background in investment
banking, and in helping run a paint company in Canada and the United
States. I actually started my first business when I was in my teens,
renting compact fridges to fellow students.
Let me tell you, that I embark upon 2005 with complete confidence
that the government of Paul Martin is on the right track.
We have reacted forcefully to the horrendous crisis facing South
Asia after the tsunami. The government is providing $425 million
in aid over five years including matching private donations; we've
put a moratorium on debt repayments from the countries impacted;
we've sent the DART team to Sri Lanka and we're fast-tracking some
applications for immigration.
And the Martin government intends to be there in the long term
as well to help in the reconstruction of the devastated areas. As
the Prime Minister has said, rolling up our sleeves to help out
is the "Canadian way".
Canada also sent 500 observers to help oversee the recent Ukrainian
election. It's another example where we are playing a pivotal role
in international affairs, and punching above our weight.
We've also been acting decisively at home. Soon after the election,
we delivered a $41-billion-dollar health accord. We reached a ten-year
$33 billion equalization deal with the provinces. Municipalities
are benefiting from $7 billion in GST rebates over the next
ten years and we will be delivering a portion of the gas tax as
well. We are now working on a $5 billion child care initiative.
Our ability to defend Canadian values within our own borders and
around the world is possible because the country is in good economic
shape.
So that's what I want to talk about tonight…where we are as
a government and more importantly, where we're going.
Canada is unique in the industrialized world for having chalked
up seven consecutive balanced budgets with the latest surplus at
$9.1 billion.
Our interest rates are low; so is inflation. And we have a historically
low unemployment rate as well. Our dollar has strengthened. And
we're paying down the national debt.
It's easy to become complacent and rest on our financial laurels
with this kind of international success under our belt. That would
be the wrong thing to do.
And that's why, right now, the Martin government is undertaking
"Expenditure Review," an exercise to find $12 billion
in savings over the next five years. That's $12 billion that
can be reallocated from lower priorities to higher priorities, including
foreign aid.
Some have asked why the government is engaged in such a thorough
expenditure review process when the country is in a surplus position.
The real question is, why wouldn't all governments review their
spending on an ongoing basis to eliminate waste, to improve efficiency
and to maximize government spending power?
Shouldn't there be a continuous review of expenditures as a normal
way of doing business? Isn't it just common sense?
I'm proud to be part of the Expenditure Review Committee. Our goal
is clear: to transform the way we do business … to provide
a smarter government…one that will deliver better services
for Canadians and better value for taxpayers dollars.
I know we can't always operate government exactly like a business.
However, I think there's absolutely no reason why private sector
discipline and business practice can't be used to improve the efficiencies
of government.
So our goal is to do nothing less than to change the way we do
business as a government.
Our vision of change is based on one underlying principle: respect
for the taxpayer and their hard-earned tax dollars … in essence,
giving Canadians the best bang for their buck.
I'm confident we can save hundreds of millions of dollars each
year, in fact billions of dollars over time, and yet, still improve
services for the 21st century.
As part of expenditure review, the department of Public Works and
Government Services Canada is expected to deliver more than $3 billion
over the next five years.
These savings will come principally from increased efficiencies
in four key areas of our operations at Public Works and Government
Services Canada:
1) procurement,
2) office properties,
3) information technology, and
4) the greening of government operations.
Let's look at each of those four areas.
First, smarter buying can make a huge contribution to better efficiency.
Each year the government buys about $13 billion worth of goods and
services. That's more than a billion dollars a month spent on everything
from flu vaccines, to helicopters, to paper clips.
Our goal at Public Works and Government Services Canada is to realize
at least a ten percent savings in the cost of the goods and services
acquired each year. That would mean freeing up more than a billion
dollars per year…a billion dollars that can be invested in
the priorities of Canadians such as health care, child care and
the needs of communities, both here and abroad.
And we've already identified ways to do this. Our procurement is
too slow and too complex. Too many of our purchases have been one-offs.
We have not taken enough advantage of economies of scale or co-ordination
between departments.
My parliamentary secretary, Walt Lastewka, has just completed the
most comprehensive review of government procurement since 1963.
Walt knows something about the issue…he spent his life before
politics helping to reform the procurement system at General Motors
Canada.
And he's brought in a number of concrete recommendations including:
- having better relations with suppliers,
- enforcing a mandatory use of standing offers,
- providing better training and
- more efficient procurement tools.
Public Works and Government Services Canada needs to be THE procurement
arm of the government. It needs to stop treating the other 98 departments
and agencies of government as clients, saying, 'whatever you want
we'll buy.' Instead we need to work WITH them as colleagues, to
deliver the best value for the ultimate client…the taxpayer
and citizen of Canada.
Let me tell you about some of the progress we have already made.
We're now working with IBM to implement the Government of Canada
Marketplace - an innovative e-portal that will help us do purchasing
as much as 50% faster while reducing the cost.
This year we will have a pilot project involving Public Works,
the RCMP, Transport Canada and the Transportation Safety Board.
Eventually we hope to save about $130 million a year in administrative
costs.
In furniture, volume discounts have resulted in a 16 percent saving
from previous prices. And our recent negotiations on other commodities
are also showing savings well north of 15 percent.
So, we're already showing dramatic savings through smart buying.
And we've only just begun.
The second part of our strategy focuses on our role as a landlord.
Our department provides office space for 210,000 public servants
across Canada. And in doing so, Public Works and Government Services
Canada spends about $3 billion each year.
We know we can do better. Our studies show that the federal government
spends 20 percent more per square foot to operate our office buildings.
And we also use more space per employee than the industry average.
At the same time, we have some significant issues around deferred
maintenance. We have a maintenance deficit of about $1 billion
that's growing by about $100 million a year. So, we are an
expensive landlord, and not always a very good one.
Already, we're taking steps to enforce stricter standards on the
use of office space and to be more aggressive in our approach to
leasing. Our goal is to save 15 percent of the costs.
And again, we're making progress. Our building maintenance contract
has just been renegotiated with the winning bidder being SNC-Lavalin
Profac. This contract will save over $50 million per year over our
estimated budget. These are very significant savings.
So the short-term strategy is to achieve greater efficiencies in
the management of our office buildings. But we don't intend to stop
there.
In the medium term, we are exploring a number of options, including
whether it makes sense to divest ourselves of some of our office
properties and lease back the space needed.
I will soon be announcing a request for proposals to engage experts
in the private sector to help us get more granular information on
how to achieve better economic value from our real estate portfolio.
We want the outside experts to look at the value of owning versus
leasing, whether it makes sense to outsource management, whether
we should use REITs or real estate income trusts, or some combination
of approaches.
I want to stress that we have not made any decisions yet. And I
also pledge to you that nothing will be done to reduce the visibility
of the Government of Canada in the communities or regions of this
country.
The third element of our vision is to improve the business of government
by continuing to modernize our information technology.
We need to make it easier for Canadian citizens and businesses
to interact with the Government of Canada from the convenience of
their homes. The financial sector has done it. The retail sector
has done it. Now we must do it as well.
I've already mentioned the Government of Canada Marketplace. There's
also the development of the Secure Channel. It will provide a world-class
secure network to ensure Canadians can use their home computer to
confidently, and conveniently do business with their government
on-line 24/7.
For example, Human Resources and Skills Development Canada now
uses the Secure Channel to process the records of employment to
administer the Employment Insurance Fund. And the savings to employers
are expected to reach $1.5 billion over a five-year period.
And lastly, I'd also like to turn my attention to a fourth area
where Public Works and Government Services Canada has a lot of experience
and expertise, and that's in sustainable development. "Greening"
government is not only the right thing to do: it can save money
as well.
Public Works and Government Services Canada is in the forefront
of using low-emission vehicles. Our aim is to move as many vehicles
in the government fleet as possible to alternative or hybrid fuel
vehicles as leases run out.
Even if we save just 10 percent in fuel consumption, that would
mean a savings of roughly $5 million a year.
We've made our own operations 33 percent more energy efficient
since 1990 and reduced greenhouse gases by 24 percent. The
result is an annual savings of $16 million a year in operating
costs.
Even by expanding electronic direct deposits, we will not only
save $86 million this fiscal year but also spare about 45 thousand
trees.
Public Works and Government Services Canada is also committed to
the purchase of "green" environmentally friendly products.
And we're in the forefront of environmental remediation including
the clean-up of the Sydney tar ponds and gold mines in the north.
I'd also like to see environmental experts at Public Works and
Government Services Canada partner with CIDA. We could include in
our tool box an offer of helping developing countries not just with
institution-building but with environmental remediation as well.
What I have talked to you about tonight shows that we can save
taxpayers dollars…in essence Public Works and Government Services
can provide Canadians with an economic dividend. At the same time
there can be an environmental dividend, and also a social dividend
if this process helps improve services and builds public faith in
government as a careful steward of their hard-earned cash.
All the changes I have mentioned are ambitious and will require
difficult decisions. Some of those decisions will be made in the
next few weeks leading to the budget.
Yet those choices are actually not as tough as the decisions faced
by a Canadian family with several children making 20 or 30 thousand
dollars a year. If we can make our decisions well, we can make their
decisions a bit easier.
In closing, I want to repeat how determined I am to see this plan
for smarter and greener government succeed. I can tell you that
Prime Minister Paul Martin expects nothing less. And Canadians deserve
nothing less.
Thank you.
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