CCA Bulletin 28/06

Ottawa, Thursday June 28, 2006

The Federal Accountability Act Passes the House and Heads to the Senate

Just the Facts

Bill C-2, known commonly as the "Federal Accountability Act" (or "FAA" for short), has cleared a major hurdle on its way to becoming law with its passage through the House of Commons on June 21 2006. At first sight, it almost looked at first as if it may get the same speedy passage in the Upper Chamber as it did in the House: less than a week later, it has already reached second reading in the Senate and been sent to committee for further study! But the CCA has had confirmation that the Chamber of Sober Second Thought will take the time required to examine this piece of legislation with all the care it requires and will offer the opportunity of a hearing for those who, like the Canadian Conference of the Arts (CCA), are concerned about such an important piece of legislation to be rushed through.

Whatever the actual scenario unfolding, the CCA has written to each of Canada's Senators in a June 28 letter, asking them to exercise due diligence in their review of the legislation to ensure that no provision within C-2 impair the free flow of ideas necessary for solid public policy development. The CCA has worked with successive governments over the past 60 years to formulate measured and effective policies and programs, and it is our hope that the review by the Senate will allow this democratic working relationship to continue once the legislation is passed into law.

The CCA has also asked that the Senate ensure that the drafting of the regulations flowing from the legislation be done through an open and transparent process to ensure that the necessary and worthwhile objective of accountability does not impede the work of not-for-profit organizations engaged in public policy development. This position is consistent with the endorsement the CCA gave to Imagine Canada's detailed May 25 brief to the Parliamentary Committee that studied Bill C-2 in the House.

Imagine Canada 's Teri Kirk appeared on behalf of 14 organizations that signed on to the brief, including the CCA. Together, this was the only sector group presenting to the Committee on the issues of grants, contributions, contract and funding issues generally, and its Members seemed to appreciate hearing from the sector, as many MPs clearly had read the brief and came prepared with detailed and thoughtful questions.

Tell me More.

The "FAA" was the first piece of legislation tabled by the new government following the winter election. Bill C-2 contains a host of measures intended to strengthen accountability in government, including greater transparency and tighter rules around lobbying, strengthened financial management procedures and controls, enhanced protection for whistleblowers, clearer accountability of Ministers and Deputy Ministers, and greater openness and transparency in government appointments.

One of the key pieces of the Action Plan related to the "FAA" is a review of grants and contributions. An Independent Blue Ribbon Panel on grants and contributions was recently established and its members are: Frances Lankin, President and Chief Executive Officer, United Way of Greater Toronto; Ian Clark, President and Chief Executive Officer, Council of Ontario Universities; and Marc Tellier, President and Chief Executive Officer of the Yellow Pages Group. The Panel is reviewing grants and contributions administration with a view to eliminating unproductive rules and procedures, identifying barriers to access for applicants and recipients, and developing a balanced approach to oversight. The Panel is to report to the President of the Treasury Board in December 2006. This review is welcome news for the cultural sector, given the range of federal grants and contributions in the arts, heritage and cultural industries sub-sectors and the growing financial burden recipient organizations face in reporting to government on the funds they receive.

As previously reported, in early May the CCA attended a briefing session with Treasury Board officials convened by the Hon. Perrin Beatty, President and CEO of the Canadian Manufacturers and Exporters Association.

Treasury Board officials told those present that it would be difficult to understand the full impact of the "FAA" until the regulations were drawn up after it was passed into law. The officials could not answer specific questions about situations where one meets a public official at a social function and has a discussion about an element of the work of the government. Would the legislation require the representative of a not-for-profit organization to write a report on the conversation and submit it to the appropriate government office where it would be posted on their website for all to see? How would the private sector be ensured that strategic business information is kept confidential? How would this legislation affect the ability or willingness of public officials to consult with individuals or organizations with expertise or insight into a particular dimension of public policy? Again - no clear answers were to be had.

The CCA fully supports the objectives of accountability and transparency in dealing with public funds. This is a priority for the Prime Minister and his government and for obvious reasons, they are determined to see it passed into law at the earliest possible moment.

However, the Senate now must, outside of any partisan considerations, play a critical role in delving into the details of the bill to ensure that it unwittingly does no harm to the democratic process or the public policy discourse.

What Can I Do?

One can support the principles of accountability and transparency without necessarily encumbering the democratic process. This is what Canadians must expect of the Senate as they review this important and complex legislation. You or your organization could write a letter similar to that of the CCA to all Senators or selected members of the Upper House (postage is free). You could also join a group asking to make a presentation or co-sign a presentation which dovetails with your particular preoccupations. One thing is for sure: we will keep you informed of your options over the coming weeks and tell you what your CCA intends to do on this front.