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

2. Institutions of the Government of Canada2

3. 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

4. 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

5. 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

6. Decision-Making 6

7. 7

8. 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

9. 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

10. 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