Media Room

Speeches

Speaking notes
for the Honourable Scott Brison,
Minister of Public Works and Government Services Canada

To the standing committee on
government operations and estimates

November 2, 2004

Mr. Chair, members of the Committee, good afternoon. I am pleased to be here today to help your review of my department's Estimates for 2004-2005. In fact, I volunteered to come to your committee and be its first witness to show my commitment to openness and transparency.

The appropriations requested for my department represent $2.7B. And that's a lot of money Mr. Chair.

As you can see, there has been an increase in my budget, mainly because of the December 2003 restructuring of the Government of Canada.

As a result, my department became responsible for the Government On-Line initiative, the Shared Travel Service Initiative and we were transferred responsibility for many of the programs and services delivered by the now disbanded Communication Canada.

Mr. Chair, let me begin by saying that I was delighted when the Prime Minister asked me to take on the Public Works and Government Services portfolio this past July. This department is the heart and muscles and blood of what makes government work. It's had its share of problems over the past couple of years, but I've learned in my short time in the department that there are many, many things we do well – in fact, very well.

I've also held six separate townhall meetings with Public Works employees and I've learned that they are proud of this department and the role it has played, and continues to play, in keeping the machinery of government running.

Rather than being demoralized by some mistakes of the past, I've found them to be a forward-looking group that has inspired me with their dedication and hard work.

Our Throne Speech of October the 5th set out a number of important new initiatives for Canada and Canadians.

One way or another, my department is involved in most of them – either as a landlord, as a procurement agency, as the Government of Canada's banker, as a leader in greening government operations, or as the lead agency for the federal information technology network – one of the largest in the country.

Allow me to take a minute to tell you about my department's commitment to the environment. Public Works is in the lead when it comes to making buildings more energy efficient; in reducing greenhouse gases by our strict standards; in buying alternative fuel vehicles that reduce air pollution; And in cleaning up contaminated sites such as the Sydney Tar Ponds.

My predecessors, the Honourable Ralph Goodale and the Honourable Stephen Owen, deserve a lot of credit for the changes and improvements that are putting this department back on track and restoring public confidence and faith in our operations.

They were instrumental in launching the transformation of the department last year. Thanks to them, we have a rigorous new management structure at Public Works.

Our advertising programs are better managed, our financial management and controls have been strengthened and we are implementing an Integrity Plan and ethics program that the conference Board of Canada has judged a "best practice in Canada."

Every contract we sign worth more than $10,000 is now posted on the Web, as are the expense accounts of senior departmental officials. We are also making a concerted effort to reduce expenditures this fiscal year. For example, the hiring of staff is being carefully monitored and the advertising budget has been cut by 15%.

I intend to build on these and other positive initiatives by making fundamental reforms that will transform the way my department does business – the type of changes that show consistent respect for taxpayers dollars.

I have travelled across Canada since becoming minister to share my strategic vision. And I would like to take the time today to tell you about my exciting plans for the department.

Let me make it clear that first and foremost, my goal is to find cost efficiencies without reducing services to Canadians – in fact we should be able to deliver those services smarter and faster. I'm confident that can improve service, reduce costs and save hundreds of millions of dollars, perhaps even billions of dollars over time, by melding best practice models from both the private and public sectors.

I have an important three point strategy for doing that.

First, I believe smarter buying should make a huge contribution to the efficiency of government. My department is responsible for purchasing about $10 billion worth of goods and services for the federal government each year. Our initial research has indicated we can do better. If we can realize even a 10 per cent savings through economies of scale and other Smart Buying strategies, that would represent a savings of $1 billion a year.

That's a significant sum of money which could then be invested in the priorities of Canadians such as health care.

We're well on the road to improving federal procurement. For example, we're working with IBM to implement the Government of Canada marketplace, an innovative e-procurement portal that will ensure better and faster buying.

Even more exciting are some of the ideas that have been brought forth by my Parliamentary Secretary, the Honourable Walter Lastewka.

I can't say enough about the great work Walt has done in heading the most comprehensive and extensive review of government procurement policies since 1963.

His discussion paper was posted on our departmental Web site on September 30th and it contains a number of innovative proposals aimed at developing a simpler, more consolidated procurement system while increasing transparency, accountability and fiscal responsibility. We are now engaging Canadians in a public discussion of these proposals for improving the procurement system, and I encourage the Committee to become involved in this process.

Walt Lastewka's work is also linked with the Expenditure Review exercise being led by the Honourable John McCallum, Minister of National Revenue. I am pleased to be a member of the Expenditure Review Committee.

As you know, it is reviewing all government programs and service delivery to enhance their effectiveness and save taxpayers a cumulative $12 billion over the next five years – money that is being reallocated to key government priorities such as health care, child care and communities. I'm confident my department can play a major role in finding those savings.

The second element of my three-point strategy is to look for cost-savings and better ways of doing things in relation to our real estate operations.

There is a real opportunity here for savings. The federal government is the largest administrator of office space in the country, with some 6.7 million square metres of space. My department is currently spending $3 billion a year on real estate, and I see no reason why we shouldn't be aiming for a 10 per cent annual savings in this area as well.

As you've no doubt heard, one of the things we will be looking at more closely is the economics of owning versus leasing our own office buildings. This is not about the public versus the private sector. It comes down to the question of whether being a landlord is a core business of government. There are now studies showing the federal government spends 20% more to operate our properties and has more space per employee than the industry average.

Now, despite some media reports, this doesn't mean you are going to see a fire sale of federal properties starting next week. We'll consult widely before decisions are made. As part of this process, in the near future I intend to engage private sector consultants to look at the pros and cons of divesting government property, as well as other options such as outsourcing the management of buildings or using REIT's, real estate income trusts.

One overriding principle is that we will do nothing that lessens the federal government's visibility in communities across Canada.

The third element of my strategic vision is to improve the business of government by modernizing our information technology systems. My department recently inherited responsibility for the Government On-Line initiative. Its goal is to fundamentally change the way the federal government provides services to Canadians.

We are now working to expand the "Secure Channel," one of the most sophisticated networks in the world. Already the channel can accommodate a wide range of secure, on-line services for Canadians, ranging from the filing of Employment Insurance claims to determining the status of personal tax accounts.

Businesses are using the Secure Channel to electronically file Record of Employment information – an approach that could save employers millions in labour and related costs.

We are also helping companies using the Government Electronic Tendering Service or (GETS) with a commitment to eliminate the monthly subscription fee for using the system by the end of the fiscal year.

But we've only scratched the surface. We hope that by 2005, about 100 government services will be available on-line. We're moving toward 24/7 services for Canadians.

I said at the outset that my strategic vision was simple. But as you can see, it's also ambitious. I know it won't be easy. The ideas, understanding, energy and commitment of my department staff will be crucial to the success of our plans. I can assure you that we will deal with employees with openness, transparency and fairness. And every effort will be made to rely on attrition and redeployment to protect our staff.

We're going to need the help, advice and support of other stakeholders as well, including suppliers and property managers. I have already met with my provincial counterparts to explore possible collaborations in the delivery of government services.

I will also be reaching out to my cabinet colleagues for support and buy-in, since the changes I am proposing will also affect their departments. And of course, no changes will be made without further consultations with Members of Parliament. We have actually set up a special MP web site to keep all of you up to date on our progress.

There is a tremendous amount of work to do in the days ahead. However Canadians deserve our very best efforts to ensure the utmost respect for Canadian taxpayers. I hope I can count on the Committee's support. You are key stakeholders and I want an ongoing dialogue with the committee. And I want individual members to be partners with me as the department moves ahead.

I should, however, caution the members of this committee that the impressive potential savings that we have identified will take some time to come to fruition.

This year's estimates reflect the current costs of providing other departments and agencies with the accommodation, supplies and services that they need in order to provide good service to Canadians. We are also committed to existing construction obligations, long-term leases and many long-term acquisition arrangements.

I would welcome any questions the Committee has at this time. My officials are also available to respond to your more technical questions.

Thank you.