Mr. David Christopherson, M.P.
Chair of the Standing Committee on Public Accounts
House of Commons
Ottawa, Ontario K1A 0A6
On behalf of the Government of Canada, I am
pleased to respond to the Sixteenth Report of the Standing Committee on
Public Accounts, entitled Chapter 6, Transfer Payments to the Aerospace
Sector—Industry Canada, of the Fall 2012 Report of the Auditor General of
I would like to thank the Committee for its work in reviewing this Chapter.
As you point out, the Auditor General (AG) found that my department has a
reasonable management control framework in place. I am pleased that the
AG concluded that my department manages its aerospace programs in a sound
manner. As noted by your committee, a number of administrative improvements
were proposed and accepted by the Department, as we are committed to continual
aerospace sector is crucial to Canada’s economic development, sovereignty,
national security, and public safety. Our government is committed to ensuring
the continued success of this important industry.
the time of the Committee’s February 2013 meeting, Industry Canada officials were pleased to report that the Department had already implemented five of
the AG’s seven recommendations. For example, we have developed a new
claim service standard; we continue to include in contribution agreements
project-specific objectives and anticipated project outcomes and benefits; we
have documented our approach to risk management; and we have published a
Strategic Aerospace and Defence Initiative (SADI) program highlights report
that will be updated annually. In addition, we have a plan in place to
ensure that the Department’s policies and procedures meet the requirements of
the Policy on Transfer Payments.
evaluation is an essential tool for assessing whether government programs are
meeting their objectives. In keeping with the Committee’s recommendation, I am
particularly pleased to report that we have advanced the Bombardier
CSeries evaluation by two years and will now complete it by November 2013.
is an important principle underlying how we manage our transfer
payment programs. SADI illustrates our commitment to
transparency. We report publically on new recipients, including
the nature of their projects, anticipated benefits, and maximized authorized
assistance. Twice each year we report on our website amounts
disbursed and amounts repaid to the Crown. We also publish annual reports on the status of
the program in achieving its results and update on the progress of individual
projects within the portfolio. Sometimes data is reported at an aggregate
level to protect commercially confidential information of individual
companies. We will continue to strike the proper balance between reporting
publicly on program results and protecting the commercial
confidentiality of Canadian-based companies.
would like to thank you and the other members of the Committee for
your interest in Canada’s aerospace sector and for reinforcing
the important findings of the AG. In closing, I would like to assure you
that the Department has accepted the AG findings and will have fully
implemented them once our evaluations are completed. At the request of
your committee, I would be pleased to report again on our progress by March 31,
James Moore, P.C., M.P.