Canada's New Government is delivering on its commitment to Implement the Federal Accountability Act
February 28, 2007
Ottawa - The Honourable Vic Toews, President of the Treasury Board, today announced that the Canadian Dairy Commission Act, the Enterprise Cape Breton Corporation Act and the National Capital Act are being amended to separate the positions of Chair
and Chief Executive Officer (CEO) of these Crown corporations.
"This government is determined to implement the Federal Accountability Act (FedAA), one of the most comprehensive and complex pieces of legislation ever passed," said Minister Toews. "Bringing these three Crown corporations in line with best practices in corporate governance demonstrates
that this Government is yet again delivering on another commitment of the FedAA."
Having different individuals carry out the duties of chairperson of the board of directors and chief executive officer will ensure independent decision-making by the board and clarify accountabilities: the board of directors will be accountable to the responsible minister for the stewardship of
the corporation, and the chief executive officer will be accountable to the board of directors for the management and performance of the corporation.
"The separation of the positions of Chair and CEO of these Crown corporations is essential to good governance and provides Canadians with better management practices and more accountable organizations," added Minister Toews.
The Enterprise Cape Breton Corporation Act and the National Capital Act have also been amended to enable the Government to appoint members of Crown corporation boards of directors for up to four years, up from the current three-year maximum. This measure will help ensure the
continuity of expertise on boards of directors.
The amendments to the Canadian Dairy Commission Act, the Enterprise Cape Breton Corporation Act and the National Capital Act are in line with current best practices of other federal Crown corporations.
The measures will come into force on April 1, 2007 for Enterprise Cape Breton Corporation and the National Capital Commission. In the case of the Canadian Dairy Commission, the coming into force date will be April 27, to coincide with the expiration of current terms of office.
This announcement is part of the implementation of the Federal Accountability Act, which received Royal Assent on December 12, 2006. Through the Federal Accountability Act and its accompanying Action Plan, Canada's New Government has brought forward specific measures to
strengthen accountability in government. More information on the Federal Accountability Act and Action Plan is available at
www.accountability.gc.ca.
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For more information, contact:
Mike Storeshaw
Director of Communications
Office of the President of the Treasury Board
(613) 957-2666
Robert Makichuk
Chief, Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391
If there is a discrepancy between any printed version and the
electronic version of this news release, the electronic version will prevail.
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