Overview of the Machinery of Government Don Booth Director, Policy Machinery of Government Secretariat Privy Council Office

Institutions of the Government of Canada 2

Current Federal Machinery Federal Institutions under FAA Partnerships & Other Funding Arrangements FAA “Departments” Statutory and Other Agencies Sch. I.1 Agents of Parliament 8 ~50 Departmental Corporations Sch. II 18 Parent Crown Corporations Sch. III ~35 Joint Enterprises (Provinces) Ministerial Departments Sch. I International Orgs. ~15 Shared Governance Corporations 2 ~85 20 Service Agencies 3 Foundations ~ 15 Not on a Schedule: Staffs of Senate, House of Commons, Library of Parliament Centralized Independent Degree of Government Control

Five Basic Organizational Forms Type Role of responsible minister Role of TB/GiC Internal governance structure Departments (e.g. Department of Health) Minister holds legal authorities, has full executive control of entity TB-led, rules-based financial and administrative regime Departmental (single deputy head) Department-like bodies (e.g. Canadian Space Agency; Library and Archives of Canada) Entity holds legal authorities, subject to direction and control of Minister Adjudicative, regulatory and oversight bodies (e.g. CRTC) Entity holds legal authorities; Minister has limited, specific roles prescribed by statute Departmental corporations (e.g. Canadian Institutes of Health Research) Entity holds legal authorities; Minister may have general direction and control or limited, specific roles prescribed by statute Corporate (chief executive and governing board) Crown corporations (e.g. Canada Post) Managerial autonomy from TB; subject to high-level, strategic control by GiC/TB 4

Machinery Considerations The basic tenet of good machinery is: “Form follows function” Before moving to a specific model there are basic policy question that should be addressed: What is the specific problem that the new entity is designed to resolve that cannot be resolved through an existing entity/process? What powers, duties and functions would an entity or individual need to exercise to fulfil their mandate? Are the PDFs already exercised by someone else? Could the PDFs have a significant impact on individual or collective rights? (e.g., enforcement powers) Do PDFs need a specific legislative basis? What is the envisioned role of the Government of Canada in the function? Core responsibility? Arms-length guidance? Simply a funder? 5

Decision-Making 6

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Instruments to Create New Entities Legislation Legislation normally sets out the organization’s mandate, authorities and organizational structures Public Service Rearrangement and Transfer of Duties Act Enables the Governor in Council, on the recommendation of the Prime Minister, to reorganize the public service through Orders in Council Used for transferring already existing powers, duties or functions. Order in Council (prerogative) Use Order in Council under the prerogative to establish a mandate and appoint the necessary head or a new board, etc. 8

Portfolio Management 9 5 Minister of Finance Office of the Department Department-like entities Adjudicative/Regulatory/Oversight entities Adj./Reg./Oversight entities not scheduled under the Financial Administration Act Departmental Corporation Crown Corporations or similar Agents of Parliament Ombudsman Special Operating Agencies Minister of Finance Office of the Auditor General of Canada Department of Finance Canada Bank of Canada Financial Transactions and Reports Analysis Centre Of Canada Canada Deposit Insurance Corporation Financial Consumer Agency of Canada Canada Development Investment Corporation Office of the Superintendent of Financial Institutions Canada Canada Pension Plan Investment Board Canadian International Trade Tribunal* Royal Canadian Mint * Supported by Administrative Tribunals Support Service of Canada. 9 5

Lessons / Observations Institutional form should match policy function Poor decision in machinery design can permanently hamper ability of organization to fulfill mandate Just because government has traditionally delivered a service doesn’t mean it necessarily remains the best delivery option or that it needs to be a “core” function (i.e., there is a need to periodically reassess assumptions) Need to question proliferation of small, single purpose organizations (administrative capacity issues, waste) Ministerial portfolio choice is important 10