Public Accounts

The House of Commons Standing Committee on Public Accounts met to begin consideration of reports 1 to 4 of the Auditor General of Canada and reports 1 to 4 of the Commissioner of the Environment and Sustainable Development, published earlier in 2025. Appearing were Auditor General Karen Hogan, Commissioner Jerry V. DeMarco, and Deputy Auditor General Andrew Hayes.

Karen Hogan testified that Indigenous Services Canada poorly managed registration under the Indian Act, averaging nearly 16 months for complex applications, far exceeding its six-month service standard, and that funding for community-based registration administrators had not changed since 1994. She also reported that the estimated cost of replacing Canada’s CF-18s with CF-35A fighter jets had increased from $19 billion to $27.7 billion, with additional essential elements adding at least $5.5 billion, and that the project faced risks including pilot shortages and infrastructure delays. On office space, she stated that Public Services and Procurement Canada achieved less than a 2% reduction from 2019 to 2024 against a 50% target, mainly due to a lack of funding, and that only 49% of planned affordable housing units from surplus properties would be ready by 2027-28. Regarding contracts with GC Strategies, Hogan found that federal organizations frequently disregarded procurement rules, including failing to document security clearances in 21% of contracts and lacking evidence of work performed in many cases; she issued no new recommendations, arguing the rules are clear and the focus should be on compliance and streamlining.

Jerry V. DeMarco testified that Canada’s national adaptation strategy had weaknesses in design and implementation, with key elements missing and two major components still under development, nearly 20 years after his office first recommended such a strategy. He reported that while three federal organizations used the best available information to identify critical habitat for species at risk, monitoring on federal land was limited, hindering assessment of conservation actions. On ocean management, he found that Fisheries and Oceans Canada’s integrated plans were high-level and did not lead to concrete actions, with marine spatial planning progress limited nearly 30 years after integrated ocean planning became law. DeMarco also noted that Canada had made the least improvement among G7 nations in meeting UN sustainable development goals, and called for a more integrated approach to sustainable development with stronger national leadership and deeper collaboration with Indigenous governments.

Andrew Hayes added that simplifying procurement rules, particularly around standing offers, could help public servants better understand and follow them. He noted that the Financial Administration Act requires delegated officials to certify that goods or services were received before releasing payment, and that without a paper trail, the government is in a difficult position to pursue contractors for recovery of funds.

During the meeting, the committee adopted routine motions regarding the deadline for providing written responses to undertakings and the distribution of committee documents. Members also approved a budget for up to five members, one analyst, and the clerk to attend the Canadian Council of Public Accounts Committees meeting in September. A motion from Sébastien Lemire requesting that the Auditor General conduct a performance audit of the federal Additions to Reserve process was discussed but deferred to a future subcommittee meeting for further consideration.