Canada News Wire Group
February 17, 2005

In a move that will see more Crown corporations fall under the public
eye, Treasury Board President Reg Alcock has announced reforms to
expand the Access to Information Act.

Ottawa: Reg Alcock, President of the Treasury Board, today tabled in the House of Commons a report entitled “Meeting the Expectations of Canadians ‚Äì Review of the Governance Framework for Canada’s Crown Corporations.

“This report reflects extensive consultations within government,
with CEOs and Chairs of Crown corporations, federal deputy ministers,
their provincial counterparts and private sector leaders,” said
Minister Alcock. “It identifies more than 30 measures to strengthen
oversight, management and accountability and to increase transparency
in Crown corporations, while at the same time respecting the autonomy
and arms-length relationship of Crown corporations with Government.”

The measures detailed in the review are aimed at:

• Clarifying the relationship between Ministers and Crown corporations;
• Clarifying the accountability regimes of Crowns corporations;
• Making the appointment process more transparent;
• Bringing the governance of Crown corporations in line with reforms in the private sector;
• Strengthening the audit regimes in Crown corporations, and
• Making the activities and operations of Crown corporations more transparent.”The review is the most comprehensive review of Canadian Crown
  corporation governance in 20 years,” said Minister Alcock. “It goes
  well beyond questions that had been raised by the Auditor General in
  her recent examinations of the management of Crown corporations and
  positions Crown corporations to excel as models of good governance.”As public institutions, Crown corporations strengthen the economic,
  social and cultural fabric of Canada. They are integral to the
  government’s delivery of programs and services to Canadians.

  The President of the Treasury Board launched the review of Crown
  corporation governance on February 10, 2004, as one of a series of
  initiatives to strengthen transparency, accountability and management
  across the federal public sector.

  The Review of the Governance Framework for Canada’s Crown
  Corporations is available on the Treasury Board Secretariat Internet
  site at www.tbs-sct.gc.ca.

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  Backgrounder

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  The President of the Treasury Board launched the review of Crown
  corporation governance in February 2004, as one of a series of
  initiatives to strengthen transparency, accountability and management
  across the federal public sector.

  The review is the most comprehensive examination of Crown
  corporation governance in over 20 years. It goes well beyond questions
  raised by the Auditor General in her recent examinations of the
  management of these institutions.

  The objective at the heart of the review was to improve the
  effectiveness of the current governance framework, in order to ensure
  that the programs and services delivered by Crown corporations respond
  to Canadians’ interests and needs, as well as meet Canadians’ standards
  and expectations for ethical conduct and operations for all public
  institutions.

  The government also wished the review an action plan focusing on practical measure that could be implemented quickly.

  Six broad conclusions were reached during the course of the review:

• There is a need to reassert the role of Crown corporations as instruments of public policy.
• The accountability regime for Crown corporations requires clarification and strengthening
• The
  appointment process for chairs, chief executive officers (CEOs) and
  directors can be made more professional, more transparent and faster,
  building on the interim process established by the government in March
  2004.
• Boards of directors need to be better equipped to fulfill their stewardship responsibilities.
• The
  internal governance regime for Crown corporations should keep pace with
  best practices, including those from the private sector where
  applicable.
• A greater degree of transparency should be brought to the activities and operations of Crown corporations.In response to review findings, thirty-one measures have been
  formulated to strengthen governance, accountability, transparency, and
  management. Key measures include the following points:
• To improve the communication of public
  policy objectives to Crown corporations, the responsible minister will
  periodically issue a statement of priorities and accountabilities to
  Crown corporations within his or her portfolio. The statement will be
  discussed beforehand with corporate management and the Board and will
  form the basis for a periodic review of the corporation’s performance.
• The government will enact the legislative changes required to ensure a split in the positions of CEO and chair of the Board.
• The government will require that boards of directors for all Crown corporations establish an audit committee.
• The
  committee will have the required expertise, and will assume key
  responsibilities for oversight of financial statements, internal
  controls, internal and external audit, and risk management.
• With
  respect to the appointments process, selection criteria, Board profiles
  and calls for nominations will be made public, including through the
  Web sites of the government (for chairs and directors), and Crown
  corporations (for CEOs).
• The
  selection process for the CEO will be determined by the Board of
  Directors and will include, at minimum, advertising in either or both
  the Canada Gazette and the corporation’s Web site.
• The
  government will obtain references on all candidates for appointment as
  director or chair. In the case of CEOs, the Board’s nominating
  committee will be required to do the same for any candidate it submits
  to the government for appointment. In addition, the government will
  continue to conduct background checks and ensure that candidates are
  not in a conflict of interest, prior to making any appointment.
• The
  Treasury Board of Canada Secretariat will examine, in consultation with
  Crown corporations, the development of a certification regime for
  financial statements that would be adapted to the reality of Crown
  corporations.
• The Access to
  Information Act will be extended to 10 of the 18 Crown corporations
  currently outside the provisions of the Act.
• With
  respect to seven other corporations, the government is developing
  mechanisms to protect commercially sensitive information before they
  come under the Act. The inclusion of the remaining Crown corporation –
  the Canada Pension Plan Investment Board – will require provincial
  consent. Amendments to the Act will also be developed to protect
  journalistic sources.
• The
  government will amend the relevant legislation in order to allow for
  the appointment of the Auditor General of Canada as the external
  auditor or joint auditor for all Crown corporations. In recognition of
  the specific needs of commercial Crown corporations, and in line with
  current practice with regard to several organizations, the government
  will encourage the Auditor General of Canada to work in partnership
  with private sector auditing firms.
• The
  government will establish a more flexible system for the timing of
  special examinations by the Auditor General, based on assessments by
  the Auditor General of the level of risk related to each corporation.
  At a minimum, all corporations will undergo a special examination every
  eight years.
• The government
  will require that each special examination report prepared by the
  Auditor General be submitted to the Board of Directors, the responsible
  minister, the Treasury Board, and Parliament, to maximize the value of
  these reports to Canadians. The government will work with the Office of
  the Auditor General of Canada to develop a protocol relating to the
  release of the special examination.These measures represent a significant step forward to strengthen
  the governance of Crown corporations. The government will act in a
  timely manner to implement the measures outlined in this report,
  through a combination of legislative changes, regulations, policies and
  guidelines.

  For further information:

  Lise Jolicoeur, Press Secretary
  Office of the President of the Treasury Board
  and Minister responsible for the Canadian Wheat Board
  Tel. 613-957-2666

  Robert Makichuk, Media Relations
  Treasury Board of Canada Secretariat
  Tel. 613-957-2391

  TTY (Telecommunications device for the hearing impaired)
  Tel. 613-957-9090

  The report, “Meeting the Expectations of Canadians ‚Äì Review of the
  Governance Framework for Canada’s Crown Corporations,” is available
  online at:
  www.tbs-sct.gc.ca/report/rev-exa/gfcc-cgse01_e.asp [PDFver here]

  This news release is available online at:
  www.tbs-sct.gc.ca