The House of Commons Government Operations and Estimates Committee met to study Bill C-15, which proposes amendments to expand regulatory sandbox authorities across federal departments. Jenelle Power, Executive Director of the Red Tape Reduction Office, and Brennen Young, Senior Director, appeared as witnesses, followed by Sharon DeSousa, National President of the Public Service Alliance of Canada, and Liam McCarthy, Director of Negotiations and Research.
Jenelle Power explained that regulatory sandboxes allow ministers to temporarily exempt specific organizations from narrow regulatory provisions to test innovations in a controlled setting, with strict limits to protect health, safety, and the environment. She noted that similar authorities already exist for Transport and Health ministers, and Bill C-15 would extend this to all ministers with clear guardrails, including requirements that exemptions be in the public interest, time-limited to three years with a possible three-year extension, and subject to annual reporting to Parliament by the President of the Treasury Board. Power emphasized that the authority cannot be used to exempt anyone from the Conflict of Interest Act, cannot bypass provincial jurisdiction, and that all decisions must be published with rationale, though she acknowledged that "public interest" is not defined in the bill.
Brennen Young added that the bill creates consistent transparency requirements across all ministers, unlike existing authorities which vary by legislation, and that the annual reporting to Parliament is more transparent than comparable regimes in other countries like Japan. He noted that consultations in 2023 were generally positive, with concerns about transparency and oversight informing the guardrails in the bill and accompanying policy, which also requires regulators to consult stakeholders and Indigenous peoples when developing sandbox implementation plans.
Sharon DeSousa raised concerns about the government's plan to cut 30,000 public service jobs, noting that nearly 10,000 PSAC members have already received workforce adjustment notices with no consultation from departments or the Treasury Board. She argued that cuts are being made across the board without coordination, leading to longer wait times and backlogs, and that the government should instead embrace remote work, reduce contracting out, and restructure programs based on service delivery needs rather than arbitrary cuts. DeSousa welcomed the "25 and out" pension reform for public safety workers in Bill C-15 but asked that it be reviewed to include fisheries officers, park wardens, and others with clear public safety responsibilities who were excluded.
Liam McCarthy criticized the early retirement incentive (ERI) program, arguing that it overlaps with existing workforce adjustment provisions in collective agreements and risks implementing a weaker process than what was negotiated. He noted that 68,000 workers received vague letters about potential eligibility for ERI, creating confusion and fear, and that the government is using a $1.5 billion pension surplus to fund the program rather than contributing new money as was done under previous governments. McCarthy also expressed concern that experienced frontline personnel might leave early, reducing operational capacity, and that the government is not doing enough to retain talent by transferring workers from areas being cut to areas being expanded.
The committee briefly discussed scheduling, agreeing to hold a separate meeting on February 12 to study the ethical, accountability, and transparency implications of Division 5 of the Red Tape Reduction Act, with each party to propose one witness by February 5.
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