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May 7, 1999
The Government shares the Standing Committee's aim to improve the business of supply in
the House. The Committee's Report represents a significant milestone in the continuing
improvement of Parliament's work on this matter. We believe that the Report's conclusions
are consistent with this Government's efforts to support the work of Parliament and its
committees in the supply process.
In formulating its response, the Government was guided by principles enunciated in the
Committee's Report. The Government must have assurance that its requests for funds will be
answered by certain fixed dates. By the same token, Parliament must have a reasonable
opportunity to examine these requests. These principles recognize the need for an
efficient, smoothly functioning government and the importance of accountability to our
parliamentary democracy. The Government also recognizes that it must continue to work
closely together with Parliament to improve the business of supply.
In view of the close connection between many of the Report's recommendations, the
Government's response is offered in four parts, as follows.
Proposed Estimates Committee (Recommendations 1-13)
The Government welcomes the Committee's conclusion that there is a need to strengthen
Parliament's oversight and review of the Estimates and the supply process. The Government
also agrees that its work with Parliament, particularly in the area of committee study,
can be improved.
The proposal to create a new Estimates Committee would be one possible way to address
these concerns, and the Committee Report cited previous studies and expert testimony in
this regard. At the same time, the current situation where standing committees review
departmental Estimates makes it easier to reconcile policy and budgetary objectives. This
is an important strength of the current committee approach which could be lost if
budgetary review were transferred to an Estimates Committee.
In addition, as Members of Parliament are all too well aware, Members' time is already
stretched with the workload of the current committee system. Given these commitments, a
single Estimates Committee might not have sufficient time and capacity to focus on the
overall Estimates process.
We would therefore propose to build on the Committee Report's recommendation of the
need for stronger House oversight and would suggest that House Leaders be asked to discuss
whether it would be useful to have an existing House committee, such as the Liaison
Committee, be given an ongoing responsibility for ensuring the effectiveness of the supply
process, possibly including an ongoing supervisory role in respect of the supply process,
and focus on other ways to improve the Estimates process. In this regard, within 45 days
of the tabling of the Main Estimates, the Liaison Committee could be asked to table a
report assessing work by standing committees and recommending the reassignment of work
from committees with particularly heavy workloads to other committees with more manageable
schedules in order to ensure effective review of the Estimates.
In addition, since the standing committees must complete their work on the Main
Estimates by May 31, committees could be encouraged to examine longer-term departmental
spending issues in the fall, when time pressures may be less acute - such study could be
done in the context of further review of the Reports on Plans and Priorities and
Departmental Performance.
Resource Reallocation (Recommendations 14-18)
The Government's Improved Reporting to Parliament Project which was launched in 1995
led to two important changes to improve committee study of resource allocation. First,
spring departmental Reports on Plans and Priorities were revised to include spending plans
for the upcoming fiscal year as well as for the subsequent two years. Second, updated
information was provided on performance in the fall with the tabling of Departmental
Performance Reports. Together, these changes have increased the ability of parliamentary
committees to examine planned spending and results and to make recommendations on them.
These features have been incorporated into the mandate of committees through changes to
Standing Order 81, adopted by the House on February 7, 1994.
With respect to the Estimates, standing committees are able to defeat or reduce votes
but are not able to increase or reallocate. This follows from the Constitution Act,
1867, which is reflected in Standing Order 79(1), whereby there must be a Royal
Recommendation for any vote, bill, or resolution containing financial provisions.
Therefore, the Committee's reallocation proposal could raise fundamental constitutional
challenges, since it could be seen as overturning the provision whereby only the
Government may introduce or recommend the appropriation of money out of public revenues.
For these reasons, the Government would propose that Members and standing committees
consider taking greater advantage of the changes noted above with respect to the Improved
Reporting to Parliament Project, particularly with respect to developing recommendations
for the Government on resource allocations for the period of the Estimates, that is, for
the years beyond the immediate fiscal year, which are detailed in the Reports on Plans and
Priorities.
Given the pressures standing committees face with the review for the Estimates in the
spring, we would propose that committees could undertake this review of allocations for
future fiscal years in the fall and winter. This would make better use of Members' time
and, we suggest, could also fulfill the Committee Report's overall objective of making the
business of supply an ongoing function of Parliament.
Reporting to Parliament, Review and Accountability (Recommendations 19-51)
Many of the Report's recommendations are aimed at obtaining better information for
Parliament on the Government's expenditures, improving program and legislative review, and
strengthening the Government's accountability to Parliament on Estimates matters.
The Government agrees with these objectives, and shares the Committee's view that a
sustained, cooperative effort on supply matters is required on the part of parliamentary
committees and the Government. The Government therefore proposes launching a new
initiative building on the successes of the previous Improved Reporting to Parliament
Project. The aim of this initiative would be to engage parliamentarians and parliamentary
committees as partners in a collaborative process to:
- provide Estimates information to parliamentary committees which is better tailored to
their needs;
- streamline reporting to Parliament to ease the information burden facing Parliamentary
committees and reduce unnecessary reporting by Government, while increasing convenient
access for parliamentarians to the information they need; and
- renew and strengthen current processes and practices involving Ministers and senior
officials with parliamentary committees in positive and productive discussions of public
policy and the wise use of taxpayer's money.
The Use of Confidence on Supply Matters (Recommendation 52)
As the Committee Report recognizes, the Constitution requires the Government to
maintain the confidence of the House or give way to another Government. Failure to grant
supply by not approving the Estimates is an established means for demonstrating
non-confidence. Thus, maintaining the confidence of the House and supply are intimately
related.
While the convention of confidence has been used less frequently on supply matters
since the changes to the Standing Orders in 1985 (for example, with respect to allotted
day motions), supply has been a matter of confidence in the Canadian parliamentary
tradition and, in the Government's view, the proposal to use confidence sparingly on
supply matters would not be in keeping with our tradition and would be extremely difficult
to implement.
In conclusion, we would like to express the Government's deep appreciation for the
Committee's excellent work in this important and complex area, and undertake to commit
ourselves to this program of renewal and strengthening of the Estimates and supply process
in partnership with parliamentarians in order to help us together to serve Canadians
better.
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