III

The Public Sector of the
Government of Canada

In order to understand the reforms that are under way in the public sector, we need to have a good understanding of the public sector of the Government of Canada as it is today.

Diversity of the public sector

There is great diversity in the public sector. Today the public sector of the Government of Canada is composed of 24 departments; 37 Crown corporations; 26 tribunals and quasi-judicial bodies; and at least 48 service agencies of different types. Each organization exists for a purpose, and has its own role and its own culture.

Each type of organization is best suited to perform certain types of work. They differ from one another by their management regimes, the degree of flexibility granted to managers, and the nature of the accountability framework for ministers and employees.

The public sector of the Government of Canada today provides the equivalent of 370,000 full-time jobs of which less than half, about 170,000, are in departments. Each organization reports to a minister and through the minister to Parliament. A minister, therefore, oversees a family, or portfolio, of independent but related organizations. Generally a minister oversees

• A department -- to serve the needs of its minister and the government; to shape laws and policies; and to provide those services that require regular ministerial oversight and direction.
  
  Departmental acts give a minister general authority for management and direction of the department. They also designate the deputy minister as the deputy head of the department and responsible for its financial and human resources management. The deputy is answerable to the minister for the quality of management and advice provided by the department and for any actions taken by departmental officials.

• Service agencies -- to provide services within an agreed-upon policy and legislative framework. These agencies are usually managed on the basis of greater accountability for results and require only general ministerial monitoring. Many are created by statute, which further defines their accountability.
  
  Usually, the minister is responsible (and must answer) for agencies. While the power and accountability relationships between heads of agencies, Parliament and the minister for each agency vary, the head of the agency usually has responsibility for its management, under the direction of the minister.

• Crown corporations -- to provide businesslike services within an agreed-upon policy and legislative framework. Ministers oversee these corporations by approving their multi-year business plans and tabling their annual reports to Parliament.
  
  Crown corporations have their own statutes that spell out the responsibilities of the minister, board of directors, and head of the corporation. These corporations are responsible to Parliament through ministers, whose role includes recommending to the Governor in Council the names of prospective members for the board of directors, approving business plans before submitting them to Treasury Board, and tabling annual reports. The president of a Crown corporation is the chief executive officer who, on behalf of the board of directors, directs and controls the business of the corporation.

• Tribunals -- to make decisions or hear appeals to give effect to government policies at arm's length from the government and on an independent basis. Their independence is key to their effectiveness.
  
  The minister is answerable in general to Parliament for the activities of tribunals in his or her portfolio, but maintains an arm's-length relationship. The minister's role is generally limited to making recommendations to the Governor in Council on appointment of members to the tribunals, and tabling annual reports. The chairperson is usually the chief executive officer of a tribunal, and supervises and directs the work and staff of the tribunal.

These models are part of the current reality of the public sector of the Government of Canada. Each one has its advantages and disadvantages, and each is undergoing change. In the past, as in the future, one model did not and will not fit all.

Over the coming years, it is a fair assumption that more diversity (not less) is likely to emerge as the government experiments with

• Partnership arrangements

• Integrated service delivery among departments and among governments

• New information technologies

The challenge is to encourage experimentation, but to guide it in a manner that is respectful of the basic values and principles of the public sector, that maintains the necessary accountability of ministers, and that ensures appropriate parliamentary oversight.

Core functions of the public sector

Last year's report discussed the core functions of the public sector at some length. These are

• To support the government and ministers by helping to shape policies and laws for the future

• To serve citizens by delivering services under existing laws and policies

Now that the fundamental role of the Government of Canada has been largely redefined, it is time to look at how the public sector can best carry out its dual role of delivering services to citizens in today's society and providing policy support to government and ministers. Chapter IV will report progress made since last year on improving service delivery. Chapter V discusses strengthening policy capacity.

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