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Federal Accountability Act Becomes Law

Backgrounder: Federal Accountability Act and Action Plan - Commitments and Actions
Backgrounder: Progress on Federal Accountability Action Plan

Ottawa, Ontario

Canada’s New Government followed through on a key promise today by delivering on its top priority – passing the Federal Accountability Act – as Her Excellency, the Right Honourable Michaëlle Jean, Governor General of Canada, granted Royal Assent to the Act in the Senate today.

“We promised to stand up for accountability and to change the way government works,” said Prime Minister Stephen Harper. “Canadians elected this government to deliver on that commitment and today the Federal Accountability Act has received Royal Assent. From this day on, accountability in government is the law and we can all be proud of that fact.”

The Federal Accountability Act was one of the Government’s top five priorities on taking office. The Act, which makes substantive changes to 45 statutes and amends over 100 others, delivers on the Government’s promise to put in place a five year lobbying ban, to eliminate corporate and union donations, and to protect whistleblowers, among other reforms. (See attached backgrounder entitled “Federal Accountability Act and Action Plan, Commitments and Actions” for more information).

“Getting this Act passed took nine long months of almost constant battle to ensure we came out of this process with an Act that has teeth,” said Treasury Board President John Baird. “The Federal Accountability Act is a significant and substantive step by Canada’s New Government to help restore Canadians’ trust in government and the democratic process.”

As promised, Canada’s New Government has also moved forward on the commitments included in the companion Federal Accountability Action Plan. (These initiatives are outlined in the attached backgrounder, “Progress on Federal Accountability Action Plan”).

Minister Baird also thanked parliamentarians and public servants for their dedication and persistence in getting this landmark piece of legislation passed into law.

Federal Accountability Act and Action Plan - Commitments and Actions

On April 11, 2006, the Honourable John Baird, President of the Treasury Board tabled in the House of Commons the Federal Accountability Act and released the Federal Accountability Action Plan as a companion piece to the Act, which received Royal Assent on December 12, 2006. The table below summarizes the actions contained in the Federal Accountability Act as well as the measures included in its companion Action Plan. It should be read in parallel with the backgrounder highlighting the progress made on the Federal Accountability Action Plan.

As is common for complex legislation, different sections of the Act will come into force at different times. Some came into force at Royal Assent, some will come into force on specific dates and others will come into force at dates to be set out by Order-in-Council.

Commitment	Actions
Reform the financing of federal political parties	New limits on individual donations to parties and candidates. A ban on contributions from corporations, unions and organizations to parties and candidates. A longer period to prosecute violations under the Canada Elections Act.
Ban secret donations to political candidates	A ban on candidates accepting gifts that might be seen as influencing them. A ban on transferring trust-fund money to candidates or political parties. Powers for the new Conflict of Interest and Ethics Commissioner to order that trusts not be used for political purposes or be wound up.
Strengthen the role of the Ethics Commissioner	A new Conflict of Interest Act. A new Conflict of Interest and Ethics Commissioner, an individual with a judicial or quasi-judicial background, with powers to fine violators and consider public complaints. A ban on voting by ministers on matters connected to their business interests. An end to the use of “venetian blind” trusts.
Toughen the Lobbyist Registration Act	A five-year ban on lobbying for ministers, ministerial staffers and senior public servants. A ban on the payment and receipt of success or contingency fees. Requirements that contacts with designated public-office holders be recorded. A new, independent Commissioner of Lobbying with a strong mandate to investigate violations under the new Lobbying Act and Lobbyists’ Code of Conduct.
Ensure truth in budgeting with a Parliamentary Budget Authority	A new Parliamentary Budget Officer to support Members of Parliament and parliamentary committees with independent analysis of economic and fiscal issues and the estimates of the government. Quarterly updates of government fiscal forecasts from the Department of Finance.
Make qualified government appointments	A consistent appointment process for Agents of Parliament with a meaningful role for Parliament. A new Public Appointments Commission to oversee appointments to agencies, boards, and commissions. An end to priority treatment for ministerial aides when they apply for public-service positions.
Clean up the procurement of government contracts	A legislated commitment to fairness, openness, and transparency in the procurement process. Inclusion of integrity provisions in all government contracts. A Procurement Ombudsman to review procurement practices on an ongoing basis. A Code of Conduct for Procurement.
Clean up government polling and advertising	A requirement to publicly release, in writing, poll findings within six months. A ban on verbal-only reports. A legislated commitment to fairness, openness, and transparency in the procurement process for advertising and public opinion research.
Provide real protection for whistleblowers	A Public Sector Integrity Commissioner with the power to enforce the Public Servants Disclosure Protection Act. A new, independent tribunal with the power to order remedies and discipline. Expanded whistleblower protection for all Canadians who report government wrongdoing. More public information on wrongdoing.
Strengthen access to information legislation	Expansion of Access to Information Act coverage to include: Seven Agents of Parliament: the Offices of the Information Commissioner, the Privacy Commissioner, the Commissioner of Official Languages, the Chief Electoral Officer, the Auditor General, the Public Sector Integrity Commissioner, and the Commissioner of Lobbying; The remaining parent Crown corporations including: Canada Post, Via Rail, the Canadian Broadcasting Corporation, Atomic Energy of Canada, Export Development Canada, the National Arts Centre, Canada Pension Plan Investment Board, and the Public Sector Pension Investment Board, as well as wholly-owned subsidiaries of all Crown corporations; The Canadian Wheat Board; and Five foundations: Asia-Pacific Foundation of Canada, Canada Foundation for Innovation, Canada Foundation for Sustainable Development Technology, Canada Millennium Scholarship Foundation and the Pierre Elliott Trudeau Foundation. A draft bill that reflects the Information Commissioner’s recommendations and a discussion paper tabled for consideration and debate.
Strengthen the power of the Auditor General	New powers for the Auditor General to audit individuals and organizations that receive federal money. Ongoing departmental reviews of granting programs enshrined in law. An independent blue-ribbon panel to identify barriers to access for recipients of government grants and contributions programs.
Strengthen auditing and accountability within departments	Designation of deputy ministers as accounting officers, within the framework of ministerial responsibility. A clear process to resolve disputes between ministers and deputy ministers. Strengthened internal audit functions within departments. Strengthened governance structures in Crown corporations. Tougher penalties for fraudulent misuse of public funds. A consistent approach to promote legal and policy compliance and enforce disciplinary measures.
Create a Director of Public Prosecutions	A new, independent Director of Public Prosecutions has been created to prosecute criminal offences under federal jurisdiction.

Progress on Federal Accountability Action Plan

On April 11, 2006, the Honourable John Baird, President of the Treasury Board released a Federal Accountability Action Plan as a companion piece to the Federal Accountability Act. The Act received Royal Assent on December 12, 2006. The Action Plan outlined the initiatives the Government would undertake immediately, in addition to those components outlined in the Act, to improve accountability in Government. The table below outlines the progress made on these action items. It should be read in parallel with the backgrounder on Commitments and Actions.

Commitment	Progress
Reform the financing of federal political parties	Actions legislated in the Federal Accountability Act.
Ban secret donations to political candidates	Actions legislated in the Federal Accountability Act.
Strengthen the role of the Ethics Commissioners	Actions legislated in the Federal Accountability Act. The Government will articulate ethical guidelines for all public-office holders, including ministers, through a revised edition of Accountable Government: A Guide for Ministers.
Toughen the Lobbyist Registration Act	Actions legislated in the Federal Accountability Act.
Ensure truth in budgeting with a Parliamentary Budget Authority	Actions legislated in the Federal Accountability Act. Quarterly updates to fiscal forecasts are being issued through the Fiscal Monitor and the Budget in accordance with the International Monetary Fund’s Code of Good Practices on Fiscal Transparency.
Make qualified government appointments	Actions legislated in the Federal Accountability Act.
Clean up the procurement of government contracts	Actions legislated in the Federal Accountability Act. On April 18, 2006 the Minister for Public Works and Government Services Canada announced the establishment of six new Regional Offices of Small and Medium Enterprises, to be located in Halifax, Montreal, Ottawa, Toronto, Edmonton and Vancouver. [http://www.pwgsc.gc.ca/comm/min/text/speeches/2006/2006-04-18-e.html] A comprehensive accreditation and training program for procurement officers was launched on August 30, 2006. [http://www.tbs-sct.gc.ca/pd-pp/site/home-accueil.aspx?Language=EN] On July 20^th, 2006 the President of the Treasury Board announced the appointment of Robert W. Dye, President and Chief Operating Officer of the Purchasing Management Association of Canada, to review the draft policy on managing procurement. [http://www.tbs-sct.gc.ca/media/nr-cp/2006/0720_e.asp] Public Works and Government Services Canada will soon introduce a new Code of Conduct for Procurement.
Clean up government polling and advertising	Actions legislated in the Federal Accountability Act. On August 11, 2006 the President of the Treasury Board announced changes to the Communications Policy of the Government of Canada that: Reflects the statutory requirement for departments to provide written public opinion research reports to Library and Archives Canada within six months of the completion of the data collection; Require departments to post executive summaries of public opinion research as well as contract information on these projects; Require the bidding process for contracting of public opinion research and advertising activities to be open, fair and transparent; and Include a new definition of advertising to distinguish it from collateral services. These provisions took effect on August 1, 2006. [http://www.tbs-sct.gc.ca/media/nr-cp/2006/0811_e.asp] Departments were instructed to conduct risk-based audits of their advertising and public opinion research activities on August 24, 2006. [http://www.tbs-sct.gc.ca/pubs_pol/sipubs/comm/commpnap_e.asp] The Minister of Public Works and Government Services will appoint an Independent Advisor to conduct a review of public opinion research procurement practices across government.
Provide real protection for whistleblowers	Actions legislated in the Federal Accountability Act.
Strengthen access to information legislation	Actions legislated in the Federal Accountability Act. The Minister of Justice tabled a draft Bill in Parliament on April 11, 2006 and released a discussion paper on the same day. [http://canada.justice.gc.ca/en/dept/pub/atia/prop/prop.html and http://canada.justice.gc.ca/en/dept/pub/atia/]
Strengthen the power of the Auditor General	Actions legislated in the Federal Accountability Act. We are reviewing the funding and oversight for Agents of Parliament including the Auditor General. To strengthen the government’s responses to recommendations of the Auditor General, on November 28, 2006, the President of the Treasury Board announced that Departments would be expected to develop clear action plans and report on their progress in addressing the Auditor General's recommendations. [http://www.tbs-sct.gc.ca/media/nr-cp/2006/1128_e.asp] In May 2006, Treasury Board Ministers approved the Foundation Framework for Treasury Board Policies. This document sets out the management policy accountabilities of Ministers and Deputy Heads and the structure of the management policy suite. Within this framework, seven management policies have been renewed to clarify specific accountabilities of Deputy Heads and six policies that are no longer relevant have been rescinded. [http://www.tbs-sct.gc.ca/prp-pep/index_e.asp] An Independent Blue Ribbon Panel was established on June 6, 2006 to identify measures required to enhance the efficiency and accountability of the grants and contributions programs. The Panel is on track to report to the President in December 2006. [http://www.tbs-sct.gc.ca/media/nr-cp/2006/08-04_e.asp] The new Policy on Transfer Payments reflecting the recommendations of the Blue Ribbon Panel and the Auditor General’s May 2006 report is expected to be issued later in 2007 after consideration of the report of the Panel. On July 20, 2006, the President of the Treasury Board announced the creation of a committee of deputy ministers to review financial management policies. This committee is expected to submit its report to the President of the Treasury Board in January 2007. [http://www.tbs-sct.gc.ca/media/nr-cp/2006/0720_e.asp]
Strengthen auditing and accountability within departments	Actions legislated in the Federal Accountability Act. Budget 2006 confirmed funding for the implementation of the Policy on Internal Audit, which took effect on April 1, 2006. Work is underway to develop a compliance framework including training, certification and tools for employees to enhance compliance with the government’s management policies. Work is underway to establish the Deputy Ministers Advisory Committee on Discipline to enable deputies to share best practices and ensure consistency in discipline across the core public administration.
Create a Director of Public Prosecutions	Actions legislated in the Federal Accountability Act. Work on the review of lessons learned and best practices for prosecuting cases of fraud involving governments will be initiated after the new Director of Public Prosecutions is named.