Government Operations and Estimates

The House of Commons Standing Committee on Government Operations and Estimates (OGGO) met on February 12, 2026, to study Divisions 5 to 7 of Bill C-15, the budget implementation act. Appearing were Treasury Board President Shafqat Ali, along with officials Bill Matthews, Secretary of the Treasury Board, and Michael DeJong, Assistant Secretary for Regulatory Affairs.

Bill Matthews clarified that the $900 million surplus removed from the public service pension fund in December was brought into the Consolidated Revenue Fund, but no decisions have been made on how to spend it. He explained that the early retirement incentive, if approved, would be funded from the pension plan itself, not from the removed surplus. On the comprehensive expenditure review, Matthews stated that savings will be removed from departments' estimates and visible to the committee, but cautioned that simultaneous government investments in areas like National Defence mean overall spending projections for those departments may not decrease, as the exercise is about reallocation.

Michael DeJong defended regulatory sandboxes, providing examples such as Transport Canada's 2020 sandbox testing e-shipping documents for dangerous goods, which led to regulatory amendments aligned with international standards. He emphasized that sandboxes require narrow exemptions, a public interest determination involving cost-benefit analysis and risk mitigation, and strict transparency measures including publication in forward regulatory plans and annual reports to Parliament. He noted that conflict of interest rules still apply and that the independence of bodies like the Canadian Nuclear Safety Commission cannot be overridden by sandbox provisions.

President Ali stated that the government plans to reduce the public service by 16,000 full-time equivalent positions over three years, with a voluntary early retirement incentive and a permanent "25 and out" early retirement program for frontline officers such as firefighters and CBSA personnel. He argued that regulatory sandboxes, already used by Transport Canada and Health Canada since 2019, allow for safe testing of innovations before permanent rule changes, and that their expansion across government would follow a rigorous, transparent process with safeguards for health, safety and the environment. He disagreed with suggestions that the comprehensive expenditure review savings would not be realized, asserting confidence in the proposals received from 102 organizations.

Marie-Hélène Gaudreau expressed serious concerns about regulatory sandboxes, questioning the lack of clear criteria for "public interest," the potential for conflicts of interest and insufficient transparency, and stated she could not support the measure without more reassurance. Kelly Block argued that the sandbox provisions grant ministers the ability to pick winners and losers, and questioned why laws are not simply repealed if they hinder innovation. Tamara Jansen contended that sandboxes do not simplify forms, shorten approval times or reduce reporting requirements for small businesses, and are only beneficial for large corporations. Jeremy Patzer noted that only one sandbox had been used in six years, questioning the necessity of expanding the power.