Good morning, Mr. Chair and members of the committee. Thank you very much for inviting us to speak to you today.

The chair has introduced Karen and me. It's our pleasure to appear before you today to answer your questions on the 2015-16 main estimates for the Privy Council Office as well as its report on plans and priorities for the same fiscal year.

The PCO is seeking $118.8 million in the 2015-16 main estimates. This is an overall increase of $26,000 from the amount the PCO sought in last year's main estimates.

The PCO's main estimates increase for this year is mainly related to the following.

First is an increase of $2.1 million in funding for the operations of the Canadian Secretariat to the Canada-U.S. Regulatory Cooperation Council. The goal of the Canada-U.S. Regulatory Cooperation Council, or the RCC as we call it, is to better align both regulatory systems to benefit industry, regulators, and the public, and boost North American trade and competitiveness. As part of the initial RCC action plan announced in December 2011, tangible results were achieved in such areas as product approvals, joint standards development, product reviews, and compliance and enforcement efforts. That action plan represented a significant first step in deepening regulatory alignment between Canada and the United States.

Budget 2014 reiterated Canada's commitment to the RCC for an additional three fiscal years: 2014-15, 2015-16, and 2016-17. The strategic direction for the next phase of Canada-U.S. regulatory cooperation is outlined in the RCC joint forward plan, which was released by both governments in August 2014. That plan responds directly to stakeholders' priorities and includes commitments by counterpart Canadian and U.S. departments to develop cooperative work plans across 24 broad areas of regulatory work. The additional funding will allow the Canadian RCC secretariat to continue its efforts to work with U.S. and Canadian partners to advance regulatory cooperation.

Second is an increase of $1.2 million for the creation and operation of the central innovation hub at PCO. To explain this investment, it's important to understand that the context in which policy-makers operate has shifted dramatically in recent years, and because of that, the public service must leverage opportunities to increase the speed and effectiveness of the advice and options it delivers.

Last year, in May 2014, the Clerk of the Privy Council's Destination 2020 report announced several initiatives intended to respond to this challenge, including the establishment of a central innovation hub at PCO. The hub will provide departments with expertise and advice on applying new approaches to complex policy and program challenges. The hub will also help test, document, accelerate, replicate, and scale up successful innovation across the public service. Locating the hub at the Privy Council Office will amplify and align successful initiatives across departmental lines.

Third is an increase of $0.3 million represents the portion of wage and salary increases to be paid to employees during fiscal year 2015-16, in accordance with specific collective agreements that were ratified in 2013-14.

At the time of the tabling of these estimates and PCO's report on plans and priorities, we projected a decrease of $3.4 million related to three sunsetter initiatives, namely, the coordination of government-wide information for Canada's economic action plan; the Office of the Special Advisor on Human Smuggling and Illegal Migration, headed by Mr. Ward Elcock, the special advisor to the Prime Minister on this matter; and the Beyond the Border action plan, which gives effect to the 2011 declaration signed by Prime Minister Harper and President Obama, establishing a new long-term partnership accelerating the legitimate flow of people and goods between both countries while strengthening security and economic competitiveness.

Sunsetter initiatives are those initiatives that have time-limited authorities and/or funding because they are developed for a specific purpose and timeframe. They are periodically reviewed and often renewed to ensure that the intended goal is accomplished.

Subsequent to the tabling of these estimates and PCO's report on plans and priorities, Budget 2015 has confirmed the availability of funds for all three of these sunsetter initiatives, and in due course PCO will seek approval of all required authorities to access these funds.

Fourth, there is a decrease of $0.3 million in funding for the implementation of various government-wide initiatives, including the continued consolidation of pay services, the implementation of the Canada School of Public Service's new business model, the elimination of wasteful spending on late fees and interest charges to suppliers, and the web renewal initiative.

Fifth is a $1.3 million decrease to PCO's planned voted expenditures and a corresponding $1.3 million increase in statutory expenditures due to an internal budget transfer from the operating fund, which falls under the voted expenditures, to the employee benefit plans, which fall under the statutory expenditures, to better align PCO's reference levels with its actual spending profile. The transfer has no impact on PCO's total authorities.

In addition, PCO's statutory spending is being reduced by $80,300. Following the July 2013 cabinet shuffle, there was a machinery of government change where the Hon. Denis Lebel was appointed Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec. The salary and motor car allowance were moved to the office of Infrastructure Canada and therefore no longer appear under PCO's statutory forecasts.

This completes the explanation of PCO's 2015-16 main estimates.

I will turn now to PCO's report on plans and priorities for fiscal year 2015-16 to give you a brief overview of PCO's planning highlights.

To begin, it is important to note that PCO's sole strategic outcome is to ensure that the government 's agenda and decision making are supported and implemented and the institutions of government are supported and maintained. In this regard, PCO will continue to play a central coordination and advisory role to support the government in furthering its objectives pursuant to its mandate to provide professional, non-partisan advice and support to the Prime Minister and cabinet. PCO plans to meet this strategic outcome by focusing on four key organizational priorities during the year.

PCO's first priority is to support the Prime Minister and portfolio ministers in exercising their overall leadership responsibilities. PCO does this by providing professional, non-partisan advice and support on the entire spectrum of the government's policy, legislative and government administration priorities. This includes, among other things, advice on social and economic affairs; regional development; foreign affairs; national security; defence; governor-in-council appointments; intergovernmental relations; and, the environment.

The second of PCO's priorities will be to support the deliberations of cabinet and its committees on key policy initiatives and coordinate medium-term policy planning. In order to meet this priority, throughout the year, PCO will provide advice to cabinet and its committees on the overall communications strategies necessary to support the govemment's priorities. It will also provide guidance to and perform a rigorous challenge function for departments to advance policy, legislative and government administration proposals that are high quality, prepared in a timely manner, and focused on addressing priority areas identified by the government.

PCO's third priority is to enable the management and accountability of government. PCO provides strategic advice on whole-of-government transformation initiatives, public service renewal and other major management reforms, which will ultimately contribute to sound government administration, enhanced productivity in the public service, and improved services to Canadians.

To this end, the PCO will support the Clerk of the Privy Council and the Deputy Minister Board of Management and Renewal in the identification of whole of government proposals to advance the government's priority for improved efficiency and effectiveness. In addition, PCO will actively engage and collaborate with implicated departments and other central agencies in the implementation of these proposals.

In line with the major transformational initiatives taking place across the Public Service, PCO's fourth and final priority is to strengthen the department's own internal management practices. During the year, PCO will continue to implement and support the Employee Performance Management Program at PCO to meet the requirements of the Treasury Board of Canada's new Directive Performance Management, in order to promote a commitment, shared by managers and employees, to sustaining a culture of high performance in support of government priorities.

With respect to information management, PCO will enhance digital record keeping and information use and sharing practices across the department, and support ongoing compliance with the Government of Canada policy framework.

PCO will also complete the transfer of the department's pay services to the Public Service Pay Centre in Miramichi, New Brunswick, in support of the government-wide Consolidation of Pay Services Project and the Pay Modernisation Initiative.

Finally, PCO will address security and emergency management priorities by strengthening the governance structures and organizational culture related to security and emergency management and business continuity management; and strengthening the expertise of Security Operations personnel.

I would like to thank you for the opportunity to explain the initiatives related to PCO's 2015-16 main estimates and report on plans and priorities.

We would be pleased to address your questions.

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