|
There is a great diversity of organizations in the public sector; each exists for a
specific purpose and has its own role to play. Organizations differ from one another
according to the accountability framework for Ministers and officials, the organizational
structure, and the management and administrative regimes. This section provides a brief
overview of organizational models in the public sector.1. Departments
A department supports its Minister and the government by providing advice on policies
and legislation, and by implementing ministerial decisions and programs. Headed by a
Deputy Minister, a department carries out activities that require regular ministerial
oversight and direction.
The Minister’s general authority for the management and direction of the
department flows from statutes. In addition, statutes designate the Deputy Minister as the
deputy head of the department, responsible for the management of its financial and human
resources. The Deputy Minister is answerable to the Minister and, ultimately, to the Prime
Minister for the quality of management and advice provided by the department and for any
actions taken by departmental officials.
2. Agencies, Boards and Commissions
This broad grouping encompasses entities whose structures and functions are varied.
Federal agencies, boards and commissions have been established to carry out
administrative, quasi-judicial, regulatory and advisory functions within an established
policy and legislative framework. These functions are by no means mutually exclusive, and
many agencies carry out multiple roles. The institutions pursue a range of activities such
as protecting human rights, regulating particular economic sectors, providing grants,
undertaking research, and giving advice.
In general, such organizations are created by legislation, which sets out the
organization’s mandate, authorities and organizational structures. The legislation
normally also contains considerable details on the composition of the organization and the
roles and responsibilities of key actors (e.g., chair, the board of directors, chief
executive officer). In contrast to departments which are under the control and direction
of a Minister, agencies are frequently structured on a corporate model in which
decision-making powers are vested in a board or commission. That board or commission is
accountable to Parliament and the public for the exercise of these powers.
Each organization falls within the portfolio of a Minister, who answers for it in
Parliament. In accordance with the enabling legislation, Ministers exercise varying
degrees of control and responsibility for the agencies which are part of their portfolio.
The degree of independence from government varies with the type of organization in
question, and it is important that Ministers and the officers of each organization
understand and respect the relationship defined by the relevant legislation. Maintaining
an arm’s length relationship to Ministers is particularly important for those
organizations whose mandate is to make decisions that determine or regulate the
privileges, rights or benefits of Canadians. Governments delegate decision-making powers
to these bodies, in part, to preserve public confidence in the fairness of the
decision-making process. In turn, the exercise of these powers requires careful attention
to ensure that the appropriate degree of independence is maintained.
The nature of the relationship between a Minister and an agency is a particularly
sensitive issue for administrative tribunals or other independent decision-making
organizations carrying out quasi-judicial functions. These are statutory bodies
responsible for administering, determining, establishing, controlling or regulating an
economic or business activity, or adjudicating cases that affect individual rights and
benefits.
Such organizations must exercise their statutory authority in accordance with
government policies and in the public interest. However, because they are called upon to
arbitrate among conflicting interests or to settle claims for various benefits, their
independence is key to their effectiveness.
Normally, Ministers are responsible for the policies governing such organizations, but
cannot intervene in specific decisions. Thus, the Minister is answerable in general to
Parliament for the activities of the organization, but maintains an arm’s length
relationship with it . The Minister’s role is frequently limited to making
recommendations to the Governor in Council on the appointment of members, and tabling
annual reports. Provision may in some cases be made for policy direction or appeals of
certain decisions to Ministers. Consistent with their quasi-judicial role, the
organizations themselves are responsible for developing specific rules and procedures and
for following them in their decision-making. The purpose of such structures is to balance
Ministers’ accountability for overall policy development and utilization of public
resources with the independence needed for these bodies to make specific decisions in a
transparent, fair and non-partisan manner.
3. Crown Corporations
Crown corporations are wholly owned by the government but operate at arm’s length
in a commercial environment. They are not subject to the government’s human resource
and administrative policies that apply to departments. In most cases, they have their own
statutes that outline their policy and operational framework, including the
responsibilities of the appropriate Minister, the board of directors, and the chief
executive officer (CEO). In addition, the majority of Crown corporations are subject to
Part X of the Financial Administration Act which provides a control and accountability
framework respecting, for example, the approval of each corporation’s corporate plan
and budgets, and the appointment of its directors, chairperson, chief executive officer
and auditor.
The role of the appropriate Minister is to oversee the Crown corporation by
recommending to the Governor in Council the names of prospective members of the board of
directors, recommending the approval of the corporation’s corporate plans and
budgets, and tabling their annual reports and the summaries of their approved plans and
budgets in Parliament.
The board of directors is responsible for the overall management of the businesses,
activities and other affairs of the corporation. The CEO is responsible for the day-to-day
management of the corporation on behalf of the board of directors. Each Crown corporation
is ultimately accountable, through its appropriate Minister, to Parliament for the conduct
of its affairs.
For further information on the responsibilities of Crown corporation directors, consult
Directors of Crown Corporations: An Introductory Guide to their Roles and Responsibilities
and Corporate Governance in Crown Corporations and Other Public Enterprises –
Guidelines. Information on these publications may be obtained from the Treasury Board
Secretariat, Service and Innovation Sector, (613) 957-0138.
|
