February 10, 2004
Ottawa, Ontario

BACKGROUNDER

The Government of Canada has made a clear commitment to restoring trust and accountability in government. It has adopted a series of measures to further strengthen transparency, oversight, accountability and management across the public sector.

February 10, 2004

Today, in response to concerns raised by the Auditor General, the government will take immediate action to:

• Introduce legislation by March 31, 2004 to strengthen the regime governing disclosure of wrongdoing (whistleblowing) within the public sector;
  
  
• Strengthen audit committees for Crown Corporations that fall under Part 10 of the Financial Administration Act (FAA) - those for which the government has the legislative mandate to dictate immediate regulatory changes – to ensure greater transparency and oversight of financial management;
  
  
• Appoint a Special Counsel for financial recovery;
  
  
• Report by September 30, 2004 on proposed changes to the FAA;
  
  
• Report by September 30, 2004 on proposed changes to the governance regime for all Crown Corporations, including reviewing the possible extension of the Access to Information Act (ATI); and
  
  
• Report by September 30, 2004 on ways to improve clarity and understanding of the respective responsibilities and accountabilities, and the “interface” between Ministers and public servants as recommended by the Auditor General.
  

• Refocused the mandate of the Treasury Board to provide more rigorous oversight of government expenditures;
  
  
• Created the Expenditure Review Committee, chaired by the President of the Treasury Board, to conduct an extensive and rigorous review of all government spending;
  
  
• Established the Comptroller General as a distinct office in the Treasury Board Secretariat to ensure that expenditure plans are sound, and directed that the Comptroller General be given functional authority over, and be involved in, the staffing of the comptroller positions in departments and agencies;
  
  
• Directed that departmental comptrollers must sign off on all departmental spending proposals before they are submitted to Cabinet for approval;
  
  
• Committed to reinstate legislation to establish the office of an independent Ethics Commissioner, as well as a Senate Ethics Officer;
  
  
• Introduced a new “proactive disclosure” policy that requires the mandatory quarterly publication of travel and hospitality expenses of ministers, ministers of state, ministers’ offices, and parliamentary secretaries. This policy also applies to deputy ministers, associate deputy ministers and assistant deputy ministers; and
  
  
• Announced measures to strengthen the Conflict of Interest and Post Employment Code for Public Office Holders including:
  
  
  
  • A ban on ministers, ministers of state and parliamentary secretaries accepting travel on private aircraft for any purpose except in exceptional circumstances and only with the prior approval of the Ethics Counsellor, and public reporting on such travel within 30 days;
    
    
  • Stricter provisions on accepting gifts,
    hospitality and other benefits;
    
  • A requirement to place gifts valued over $1000 into the government inventory; and
    
    
  • Public disclosure of financial liabilities when requested by the Ethics Counsellor; and a recusal process which requires a public office holder to withdraw from participating in a matter that could create a conflict with their private interests as determined by the Ethics Counsellor.