The House of Commons Standing Committee on Government Operations and Estimates met to study the 2026-27 main estimates and the spring economic update. Appearing were Matthew Shea, Chief Financial Officer of the Privy Council Office (PCO), and Louise Baird, Vice President of the Major Projects Office (MPO); Professor Louis Côté, as an individual; and Annette Ryan, Parliamentary Budget Officer, accompanied by Jason Jacques.
Matthew Shea presented the PCO’s main estimates request of $252.3 million, a decrease of $25.9 million from the previous year due to sunsetting initiatives and expenditure reductions, partially offset by funding for the Major Projects Office. He faced questions about external spending on marketing and communications, including a $4.8 million contract with EssenceMediacom for advice on free trade agreements, and committed to providing further details to the committee. Shea also addressed workforce adjustment, stating the PCO is supporting affected employees through retraining and placement efforts.
Louise Baird explained that the Major Projects Office coordinates with regulators and project proponents to streamline approvals for major nation-building projects, without acting as a regulator itself. She noted that projects are referred by the government based on five criteria in the Building Canada Act, including economic benefits and Indigenous interests, and that the office currently has about 99 employees. Baird disagreed with the suggestion that projects already approved were simply relisted, stating the office helps get partially approved projects over the finish line.
Louis Côté argued that neoliberal reforms over the past 50 years have led to a loss of public sector expertise and dependence on private consultants, citing examples from Quebec’s health and transportation sectors. He recommended that governments invest strategically in public services and in-house capacity rather than making cuts that undermine sovereignty and service quality, and warned against populist tax cuts that deprive the state of means to act. Côté disagreed with the view that government intervention is inherently problematic, pointing to successful models in Nordic countries and Quebec’s Hydro-Québec.
Annette Ryan stated that the PBO will focus on fiscal sustainability, tracking government spending from budget promises to results, and noted that federal debt per Canadian is projected to rise from $33,592 to $38,295 over five years. She raised concerns about the lack of detail in the spring economic update, particularly on the comprehensive expenditure reduction plan and the Canada Strong fund, which she said raised more questions than answers about governance and transparency. Ryan committed to publishing a series of assessments next week and to working with parliamentarians to improve accountability.
Jason Jacques, supporting Ryan, noted that the spring economic update presented downside risk scenarios due to high uncertainty, and that the PBO is preparing an inquiry into the Cúram software costs for old age security benefits. He did not provide specific recommendations but reinforced the need for clearer metrics on government priorities.
The committee also debated a point of order regarding the use of the phrase “Canada Strong” in government communications, with some members arguing it was partisan. No motions or votes were recorded during the meeting.
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