Mr. Chairman, thank you for the invitation to appear before your Committee on Bill C-2. I have with me Mr. Gaston Arseneault, General Counsel at the Public Service Commission (PSC).

The Public Service Commission

The PSC is a unique organization. Independent of Ministerial direction, we report to Parliament.

We safeguard the integrity of the public service staffing system and the political neutrality of the public service through monitoring, and conducting audits and investigations. We also provide staffing and assessment services to government departments. More detail is available in the information kit you have before you.

The new Public Service Employment Act (PSEA) which came into force on December 31st re-confirms the PSC’s independence, stating in its preamble that merit and non-partisanship are values to be “independently safeguarded.” It also further enhances the PSC’s unique status by:

emphasizing the PSC’s audit authorities on behalf of Parliament;
bestowing upon the PSC the power to make special reports to Parliament; and
providing for the President’s appointment by the Governor in Council (GiC) only after approval by resolutions of both the Senate and the House of Commons.

Topics for Discussion

Our work – holding government to account for staffing and non-partisanship – supports the proposals in Bill C-2 to enhance accountability in government. Today I would like to propose, for your consideration, amendments to Bill C-2 which would make improvements in two areas:

how we do our work and relate to Parliament; and
the scope of our responsibilities.

Ministerial Exempt Staff

Clause 103 removes the priority entitlement for Ministerial exempt staff to enter into the public service but Clause 101 provides access to more Ministerial staff to internal staffing processes for one year. We support this change since the appointments would be made on merit.

Appointment of the President

Bill C-2 proposes to standardize the method of appointment for positions supporting Parliament. To make the President’s appointment process the same as that of other positions supporting Parliament, I recommend that Bill C-2 amend the PSEA to add the elements of consultation and secret ballot.

Protection for Auditors and Investigators

Individuals working for organizations that carry out audits and investigations which are reported to Parliament are already designated, or will be designated through Clauses 2 and 308, as not competent nor compellable witnesses and as immune from criminal and civil proceedings for actions taken in good faith while performing their duties. The PSC also conducts investigations and audits, the results of which we table in Parliament. We will table two audit reports on Thursday. Such reports involve personal and often contentious issues which could give rise to subsequent legal action. In order for us to do our work and protect our auditors and investigators, I recommend that Bill C-2 amend the PSEA to provide the same protection for PSC auditors and investigators.

Protection of Working Papers

On a similar issue, the heads of a number of organizations supporting Parliament and conducting investigations and audits will be required under Clause 146 to refuse to disclose, under the Access to Information Act, records obtained or created in the course of investigations, examinations or audits. While final audit and investigative reports should be publicly accessible, records obtained or created by auditors and investigators in the course of carrying out their work may contain misleading and unsubstantiated comments and observations. The PSC and those being audited or investigated need to be assured that only substantiated findings appropriately explained are released. As the Auditor General said when she appeared before you, auditors need protection of their working papers to do their work. Since the PSC is mandated by the PSEA to conduct investigations and audits, I recommend that Clause 146 of Bill C-2 be amended to provide the same protection to our audit and investigations records.

Reporting

I have also noticed that Bill C-2 does not contain a mechanism for the Commissioner of Lobbying to transmit his or her special reports to Parliament. The PSC has a similar problem. Amendments to the PSEA which added a clause enabling the PSC to make special reports to Parliament were assumed at the time to mean that we could transmit these reports directly to the Speakers of both Houses; however, in the absence of specific wording in the Act, we were advised that this was not possible. Modelling the tabling mechanism on that in place for the Information Commissioner, I am recommending that Bill C-2 amend the PSEA to provide the PSC with the ability to transmit its special reports directly to the Speakers of both Houses for tabling. Your committee may also want to provide the Commissioner of Lobbying with this same provision in Clause 78.

The Scope of the PSC’s Responsibilities

The next proposed amendment relates to Clause 106 regarding some GiC appointments, for example, of deputy ministers. Currently, most appointments to these positions are provided for by specific legislation. A small number are not, for example, where there is a government restructuring and legislation is not yet in place. The mechanism traditionally used when the GiC wishes to make an appointment for which no legislative provision exists has been to exclude the person from the application of the PSEA with the exception of the political activities provisions. The approval of both the GiC and the PSC is required for this mechanism. The uses of this exclusion order are reported in the PSC’s Annual Report. With the new merit regime in force under the recently-enacted PSEA, I am uncomfortable with the PSC excluding these appointments from merit and am supportive of an alternative proposal.

Clause 106 formalizes the current process; however, it includes a greater range of positions than is the traditional practice. The exclusion of appointments to these additional positions from the application of the PSEA could pose a threat to a meritorious public service. I recommend that this clause be amended first, to narrow the positions in question by removing “associate deputy head and positions of equivalent ranks” and “special adviser to a deputy” as in the French version and second, to ensure that Part 7 of the PSEA on political activities applies, thus, protecting the political impartiality of these appointments.

Finally, Clause 119 establishes the position of Parliamentary Budget Officer within the Library of Parliament. Currently, staff of the Library, the Senate and the House of Commons are able to apply to internal appointment processes in the public service only due to an instrument still in place under the old PSEA. With the new PSEA in place, we have been advised that we cannot do this without a legislative change. After consultations with the heads of these organizations, I am proposing that Bill C-2 amend the PSEA to allow these employees, who have much to offer the public service, to participate in these meritorious processes.

Conclusion

Mr. Chairman, the PSC is an important part of the accountability framework that underlies our system of responsible government. Our work to hold the government to account for staffing and non-partisanship is consistent with the spirit of this Bill. Our recommendations seek to improve it by enhancing our ability to conduct audits and investigations, and strengthening our links with Parliament. I would like to table with the committee these proposed amendments along with those related to a small number of GiC appointments and the mobility of parliamentary staff.

Thank you for your attention. I would be pleased to answer any questions you may have.

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	Updated: 2006-05-17	Important Notices

Legislative Committee on Bill C-2, Federal Accountability Act

Introduction