A Profile of the Public Service of Canada

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5.0 Policy-making Process

5.1 Institutional Arrangements for Policy Development

The Cabinet Decision-Making System

While the executive functions of Canada's parliamentary system of responsible government are vested in the Crown by the Canadian Constitution, in practice these functions are carried out by the Prime Minister and the Cabinet, as long as they enjoy the confidence of Parliament. The Prime Minister and the Cabinet, two fundamental institutions of parliamentary government, are not defined in either the formal constitution or in law.

The formation of the Ministry and the structure of Cabinet decision-making are among the Prime Minister's most important prerogatives. However, not all members of the Ministry are members of the Cabinet; as of May 2003 there are 28 Cabinet ministers (including the Prime Minister) and ten Secretaries of State. The position of Secretary of State was created in November 1993, to provide additional support to Cabinet ministers and the government in meeting the objectives set out by the Prime Minister.

Cabinet decision-making is led by certain key statements on government policy and priorities; the Speech from the Throne provides the government with a policy framework, and the budget exercise, culminating in the tabling of the Estimates, establishes the fiscal framework. These frameworks provide for the overall direction of the government and shape the work of Cabinet committees.

In the long-standing tradition of Cabinet government, only ministers attend meetings of the Cabinet and its committees. Secretaries of State are sworn as Privy Councillors, as are ministers, and may be invited to accompany their portfolio minister to a Cabinet or Cabinet committee meeting. Parliamentary Secretaries may not do so as they are not members of the Ministry and are not sworn to the Privy Council. The Prime Minister decides whether exceptions are to be made to these conventions. The Secretary to the Cabinet attends Cabinet meetings and other officials attend as required.

Generally, Cabinet business consists of proposed actions aimed at implementing the government's agenda, items of special urgency, parliamentary business, political issues, the review of senior appointments and any other matter of general concern to Canadians or the government.

Issues are normally introduced by a Memorandum to Cabinet prepared by a minister, which is tendered to the appropriate Cabinet committee after it has been circulated to all ministers. The Prime Minister expects issues to be dealt with at the committee stage. Cabinet is not used to air introductory or preliminary factors relating to the issue at hand. It is the deputy minister's responsibility to ensure that affected departments are adequately informed in advance of the issues before Cabinet. In other words, the bulk of collective ministerial deliberations take place in committee; Cabinet committee recommendations are subject to confirmation by Cabinet. This allows Cabinet to concentrate on priority issues, as well as on broad policy and political concerns. Ministers are not asked to vote on the various items; once discussion has taken place and ministers have expressed their views, the Prime Minister calls the consensus. Once a decision has been reached, it is recorded and communicated throughout the government.

Cabinet Committee Structure

Cabinet committees are an extension of the Cabinet itself. As First Minister, it is the Prime Minister's prerogative to organise Cabinet and the Cabinet committee decision-making system, establish the agenda for Cabinet meetings and designate committee chairpersons to act on his on her behalf. Currently, most collective ministerial deliberations take place in Cabinet committees. Committee chairpersons act for the Prime Minister with his or her authority, including setting committee agenda. For the most part, decisions are taken by the appropriate committee, subject to confirmation by the Cabinet. Currently, there are five Cabinet committees:

• The Cabinet Committee for the Economic Union (20 members);
• The Cabinet Committee for the Social Union (18 members);
• The Special Committee of Council (9 members);
• The Treasury Board (six members and six alternates);
• The Cabinet Committee on Government Communications (16 members).

The first two committees deal with economic and social policy issues, respectively. The Special Committee of Council (SCC) exercises legislative authority that is conferred on the Governor in Council. In practice the SCC, acting on behalf of Cabinet, is responsible for reviewing and making recommendations to the Governor General. The Treasury Board is the only Cabinet committee established by law and many of its decisions have force of law. The Treasury Board is the employer of the public service, and establishes policies and common standards for administrative, personnel, financial and organisational functions across government. It also controls the allocation of financial resources to departments and programmes. Finally, the Cabinet Committee on Government Communications has a mandate to review the government's communications strategy and approve key communications activities.

The Prime Minister may also choose to constitute ad hoc Cabinet committees whenever it is necessary. For instance, the Ad Hoc Cabinet Committee on Public Safety and Anti-Terrorism was established after the events of 11 September 2001. The committee is comprised of the ministers involved in Canada's response to terrorism threats and in the protection of Canada and Canadians; it is chaired by the Deputy Prime Minister.

Privy Council Office

The primary responsibility of the Privy Council Office is to provide public service support to the Prime Minister, ministers within the Prime Minister's portfolio and the Cabinet in order to facilitate the smooth and effective operation of the Government of Canada.

The PCO is the public service department of the Prime Minister. Under the leadership of the Clerk of the Privy Council and Secretary to the Cabinet, the PCO provides direct support to the Prime Minister across the range of functions and responsibilities of the head of government.

The key responsibility of the Clerk of the Privy Council and Secretary to the Cabinet is to provide direct support to the Prime Minister from the perspective of the values, traditions and expertise of the Public Service of Canada. In that context, the Clerk plays three interrelated roles:

• He serves as the Prime Minister's Deputy Minister;
• He is the Secretary to the Cabinet;
• He is the Head of the Public Service of Canada.

As the Prime Minister's Deputy Minister, the Clerk provides advice and support to the Prime Minister in areas that are of special concern to his role as head of government. The Prime Minister looks to the Clerk of the Privy Council for advice in operating the Cabinet decision-making system, in setting overall policy direction, in enhancing intergovernmental relations, in appointing senior office holders and organising the government, and in managing specific issues.

As Secretary to the Cabinet, the Clerk of the Privy Council assists the Prime Minister to maintain the cohesion of the Ministry and give direction to it. In this role, the incumbent provides support and advice to the Ministry as a whole to ensure that the Cabinet decision-making system operates effectively and efficiently according to the design of the Prime Minister.

As Head of the Public Service, the Clerk serves as the main link between the Prime Minister and the federal public service, and is responsible to the Prime Minister for the institution's overall performance and its effective management.

The Privy Council Office provides advice and support to the Prime Minister in carrying out his or her functions in the following areas:

• Appointments;
• Mandates and government organisation;
• Government's relations with Parliament and the Crown;
• Cabinet and Cabinet committees organisation and operations;
• Government policy directions;
• Leadership and direction to the government;
• Constitutional responsibilities, including those relating to the Governor General;
• Foreign affairs and national security;
• Intergovernmental affairs.

In addition, the Privy Council Office supports the Clerk of the Privy Council and Secretary to the Cabinet as Head of the Public Service. In this capacity, the Clerk has the combined responsibility both for the overall effectiveness of the Public Service and for its competent and efficient management and administration.

Prime Minister's Office

The Prime Minister is supported directly by two organisations within his portfolio. The Prime Minister's Office is comprised of the Prime Minister's personal and political staff. The PCO serves as the Prime Minister's public service department and as secretariat to the Cabinet and its committees. While these two organisations differ greatly in their respective roles and mandates, they are sensitive to the need for consultation and co-ordination in their efforts to serve the Prime Minister and the Cabinet.

The precise role of the Prime Minister's Office varies according to the personal style and preferences of the Prime Minister in office, and its organisation is left entirely to his or her discretion. The present Prime Minister's Office, under the direction of the Chief of Staff, is composed of politically-oriented staff members; they are not public servants.

The Prime Minister's Office provides advice and support to the Prime Minister, as leader of the political party forming the government, on priorities, political strategy and tactics, and the political dimensions of policy initiatives. It is organised to ensure national political liaison with ministers, caucus and the party in general. The Prime Minister's Office supports the Prime Minister in his role as a Member of Parliament and handles all constituency matters. A team of advisers is also responsible for briefing the Prime Minister on the main affairs concerning the development of Canadian society and the international community.

The support functions of the Prime Minister's Office include co-ordinating the Prime Minister's agenda and travel, managing his or her communications, including speeches, and preparing correspondence.

Supporting Material

• Privy Council Office website
• Selected Privy Council Office documents available on the Privy Council Office website under 'Publications':

  Cabinet Directive on Law-Making (2003)
  Guide to Making Federal Acts and Regulations (2003)

• Decision-Making Processes and Central Agencies in Canada; Federal, Provincial and Territorial Practices (1998)
• A Guide for Ministers and Secretaries of State (2002)
• Memoranda to Cabinet: a Drafter's Guide (2000)
• PCO's Regulatory Affairs and Order in Council Secretariat's website  

5.2 Roles and Responsibilities in Policy Management

The Prime Minister is the authoritative spokesperson on the policy of the government. The Prime Minister is responsible to Parliament for the overall spending programme of the government, which ultimately reflects how the priorities, policies and programmes of the Ministry are defined and implemented, and leads the process of setting the general direction of government policy.

The development of government policy is a complex and continuing process. Ministers identify and propose priorities and initiatives on the basis of their portfolio and other responsibilities. Certain individual ministers exercise special co-ordinating functions on behalf of the Ministry as a whole. Under the direction of the Prime Minister, policy proposals are evaluated and combined to form an overall agenda which has the support of the entire Ministry.

The Privy Council Office provides advice to the Prime Minister on the overall conduct of government business, including the strategic handling of major issues and subjects that are of particular interest to the Prime Minister. The objective is to ensure that all the affected interests have been consulted, and that a full range of alternatives has been considered prior to decisions - in sum, that the Prime Minister and the Cabinet possess the information required to make decisions.

In this context, a key function of the Privy Council Office is the co-ordination of policy to ensure complementarity among new proposals, existing policies and the government's overall priorities and objectives. The PCO works closely with the Prime Minister's Office, the Department of Finance, the TBS and other agencies and departments to provide ministers with comprehensive briefings on the issues before them for decisions and, after decisions are made, to disseminate the information and arrange for the follow-up measures required for effective implementation. The participation of the PCO in policy development and implementation is an integral part of its central role in supporting the Prime Minister to ensure the effective operation of the government. 

5.3 Reform of the Policy Development Process

The Prime Minister has not undertaken major changes to the Cabinet decision-making process since Canada's last country profile was published in 1995. However, the Prime Minister has made some adjustments that are worth mentioning.

In 1997, as part of changes to the Cabinet decision-making system, he authorised changes to the mandate of the Special Committee of Council (SCC). The SCC was tasked with new responsibilities to oversee legislative issues and planning, in addition to considering and approving submissions to the Governor in Council and regulations made pursuant to statutory authority. The Prime Minister also decided to give SCC the mandate to serve as policy committee to review issues of legislative policy and process, and for issues concerning electoral reform. PCO provides all necessary support to the work of the Special Committee of Council.

In January 2001, the Cabinet Committee on Government Communications was established as the fifth standing committee and was given the mandate to co-ordinate the overall government communications strategy and implementation, and to ensure the consistency and effectiveness of the communications function.

In 1999, a Cabinet Directive was issued which sets out the objectives and expectations of the Cabinet in relation to the government's law-making activities. Departmental officials involved in these activities are expected to follow the instructions it contains. The main objectives of the Directive are to:

• Ensure that the Cabinet has the information and other support it needs to make sound decisions about proposed laws;
• Outline the relationship between Acts and regulations and ensure that they are viewed as products of a continuous process of law-making;
• Ensure that proposed laws are properly drafted in both official languages and that they respect both the common and civil law legal systems;
• Make it clear that law-making initiatives can be very complex and must be properly planned and managed;
• Ensure that government officials who are involved in law-making activities understand their roles and have the knowledge and skills needed to perform their duties effectively.

In addition to the Cabinet Directive on Law-Making, a second edition of the Guide to Making Federal Acts and Regulations was released in February 2003. The guide provides detailed information on various aspects of the legislative process.

In 2000, the Prime Minister approved the creation of the first 'refer=ence group' of ministers. Reference groups of ministers are created in order to conduct in-depth analysis of a policy issue and for ministers to arrive at a common understanding of that issue. Meetings of the reference groups are not formal Cabinet meetings and have no decision-making authority. 

5.4 New Initiatives Intended at Strengthening Policy-Making

The Policy Research Initiative

The Policy Research Initiative (PRI) was established in 1996 to strengthen the government's ability to identify, understand and address medium and longer-term cross-cutting policy research issues.

The PRI's mandate is articulated around three main goals:

• To enhance, collect and integrate research work on emerging horizontal issues and better integrate it into the medium-term policy agenda of the federal government;
• To contribute to the strengthening of the federal government's capacity to develop and maintain a vibrant policy research community;
• To create an infrastructure to support horizontal policy research collaboration.

The PRI staff are responsible for the development and execution of research projects in partnerships with government departments. Small research teams are set up for each project, acting as hubs for larger teams of experts and analysts from participating departments. The work plans and timelines for the projects are organised in such a way as to be responsive to the cycle of policy and planning activities of the government.

The capacity-building objective is mainly dealt with through the Policy Research Development Program (PRDP). The aim of the PRDP is to bring into government highly qualified graduate students who have specialised in policy research. The programme, which is managed by the PRI, makes available ten policy research development positions in departments across government.

Improving the policy research potential in lower-capacity departments is also a basic requirement of the capacity-building objective. Thus, departments with limited policy research capacity, or which are trying to create such capacity, should be among the beneficiaries of the PRDP programme.

Finally, the infrastructure-building objective is being met by a number of vehicles. The PRI delivers a variety of regional and national, multidisciplinary, policy research conferences and seminars. The PRI also chairs the Policy Research Data Group (PRDG), an interdepartmental committee that manages a fund for the development of data products and services in support of emerging horizontal policy issues.

Two deputy ministers oversee the overall strategic direction of the PRI and work in close collaboration with the PRI's Executive Director, who is responsible for the general direction of research projects and activities. The PRI occasionally reports to the Co-ordinating Committee of Deputy Ministers, and many of its projects and programmes are guided by advisory committees made up of government senior officials.

Communications and Consultations

Consultation and citizen engagement processes invite greater citizen involvement in the development of government policies, programmes and services. The involvement of citizens in dialogue on public policy issues is an integral part of the Canadian democratic system. Like other democratic governments around the world, the Government of Canada has recently begun to explore on-line participatory approaches.

Traditionally, citizens' views have been reflected in the policy-making process through three avenues:

• Members of Parliament, who represent the views of their constituents in the House of Commons and House committees, and liaise with citizens through newsletters, websites and informal meetings in their constituencies;
• Voluntary organisations and stakeholder groups, which provide a focal point for civic discourse, representing the views of their members and, in some cases, of a broader range of citizens on public policy issues; and
• overnment consultation and citizen engagement processes, which are undertaken by departments and agencies at the request of ministers, and are designed to complement - not replace - the previous two avenues of public involvement.

While these channels remain effective vehicles for reflecting the views of Canadian citizens, new information technologies, such as the internet, are providing further opportunities to enhance public involvement and are changing the relationship between governments and citizens.

On-line participation in the Government of Canada is grounded in a governance context, with technology viewed as an enabler. In this context, the emphasis is on the application of sound public participation principles and practices, rather than on the technology. In most cases, both on-line and off-line approaches are integrated in a complementary manner.

On-line participatory approaches have obvious advantages for reaching citizens in rural or isolated areas and for engaging specific target populations, such as youth, who may not participate in more traditional consultative approaches. They also offer flexibility. Those who may not have time to attend a town hall meeting or participate in a public dialogue session can access the internet, review a discussion paper and provide comments at their convenience.

In spite of the obvious advantages of on-line participation, there are also limitations and challenges. Public awareness of on-line consultations and access to the internet are major issues, as are security and privacy concerns. In addition, not all public engagement processes lend themselves to an on-line environment. For example, deliberative dialogue techniques are often more effective conducted in a face-to-face context.

Like many advanced economies, Canada is addressing the digital divide, specifically through its 'Connecting Canadians' initiative, as well as through measures to bring broadband access to the Canadian public over the next few years. The government is also working to establish a secure infrastructure for government-citizen interactions on-line through its Government On-Line Initiative.

The Canadian Government is still in the early stages of developing on-line participation tools and techniques. All departments now have an internet presence and many are currently exploring on-line approaches as a complement to more traditional forms of consultation and engagement.

The Privy Council Office, in collaboration with others, provides support to both on-line and off-line consultation and citizen engagement processes. An overarching e-participation strategy is currently being developed, involving policy, research, infrastructure and capacity-building elements.

The PCO has already started to document early experiences with on-line consultation, both within the Canadian Government and internationally, so that lessons can be shared and appropriate support provided.

In an effort to build capacity for on-line consultation and engagement within the government, the PCO and the TBS have prepared draft 'Guidelines for On-line Consultation and Citizen Engagement'. The PCO also organises monthly e-learning seminars and has established an on-line consultation website which contains reference material and examples of best practice. It is currently liaising with the Canadian Centre for Management Development to develop a range of e-consultation learning opportunities for government officials with responsibilities or an interest in this area.

In addition to these internal activities, the Government of Canada collaborates with Canadian academic, not-for-profit and private sector organisations and internationally with the OECD, the European Commission, the UK and other leading governments, fostering an exchange of ideas and experiences both at home and abroad.

Supporting Material

• Policy Research Initiative  

5.5 Recent Developments in the Management of Key Policy Issues

Aboriginals Policy

The resolution of claims and the move towards self-government agreements with First Nations has continued to be a priority in the last decade. In addition, there have been significant efforts to better understand the complex challenges facing Aboriginal people and to develop policy approaches to meet those challenges.

In 1991, a Royal Commission on Aboriginal People (RCAP) was struck, and its final report, tabled in 1996, provided an important body of research to inform policy development. The federal government response to RCAP, Gathering Strength, was an action plan intended to begin to address the needs of Aboriginal people, and subsequent policy initiatives have built on this framework.

Since 1993, a cornerstone of Canada's Aboriginal policy has been the recognition of their inherent right of self-government under section 35 of the Canadian Constitution. Following consultations on this proposed approach, the federal policy framework to implement this inherent right was launched in 1995.

The federal approach to Aboriginal self-government, based on negotiation, will result in new arrangements to give Aboriginal communities the tools they need to exercise greater control over their lives. Self-government arrangements will recognise the right of Aboriginal peoples to make decisions about matters internal to their communities, integral to their unique cultures, traditions and languages, and connected with their relationship to the land and resources.

Under federal policy, Aboriginal groups may negotiate self-government arrangements in a variety of areas, including government structure, land management, health care, child welfare, education, housing and economic development. Negotiations will be between Aboriginal groups, the federal government and, in areas affecting its jurisdiction and interests, the relevant provincial or territorial government.

The federal government has recently introduced the proposed First Nations Government Act. When it becomes law, the Act will provide governance tools to bands operating under the Indian Act in matters of leadership selection, administration of government, financial management and accountability, legal capacity and law making.

Canada is also taking steps to ensure that the institutional framework is in place to provide First Nations with the economic levers ordinarily available to governments. Legislation currently before the House of Commons will lead to the creation of the First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority and First Nations Statistical Institute.

These legislative initiatives serve to provide First Nations with more tools to assist them in moving towards self-government.

Intergovernmental Affairs Policy

Federalism is a structure of government that offers the benefits of political and economic union combined with local autonomy. Canada has such a system, with legislative powers distributed between a national government and the provinces.

The division of powers between the federal government and provincial governments was set out in the Constitution Act, 1867, particularly in sections 91 and 92. The federal Parliament was given jurisdiction over matters considered national in scope, such as protecting the federation from military threats and 'trade and commerce', promoting economic growth and development. The provinces were given responsibility for areas considered to be of more local concern, such as hospitals and education, which are important in maintaining their specific identities, cultures and special institutions. The residual power refers to all powers not specifically assigned to either jurisdiction; it was assigned to the federal government. Several formal changes have been made to the original division of jurisdiction.

Fiscal federalism
The capacity of the federal, provincial and territorial governments _to assume their responsibilities centres on the balance between decentralisation of revenues and decentralisation of government spending, the scale of transfers between orders of government, the conditions attached to those transfers, the differences in the respective capacity of the provinces and territories to provide comparable public services at comparable levels of taxation, and tax collection arrangements within the country.

One of the most important aspects of Canadian federalism is determined by the need to transfer money to provincial governments to fund the programmes for which they are constitutionally responsible. The Government of Canada does this in two ways:

• The first method consists of making equalisation payments, which are provided to the poorer provinces in order to compensate for their smaller revenue base;
• The second method is via programme payments paid by the federal government to all provinces to fund programmes it considers important.

Provincial economies vary greatly in their respective economic strengths and taxation capacity. Consequently, the federal government makes equalisation payments to the poorer provinces to enable them to provide reasonable comparable levels of public services at reasonable comparable levels of taxation (a provision set out in section 36.2 of the 1982 Constitution Act).

The Canada Health and Social Transfer (CHST) is the main vehicle by which the federal government assists all provincial governments to finance provincial health, education and welfare programmes. Federal spending power allows the federal government to make expenditures in policy areas that are normally under provincial jurisdiction.

The Landscape
In recent years, the focus of intergovernmental affairs has shifted away from large-scale constitutional reform to clarifying the roles of the federal and provincial governments within the current constitutional framework.

There has been considerable co-ordination of policy advances, brought about through intergovernmental negotiations among first ministers and ministers responsible for particular policy areas, as well as among federal and provincial officials.

The Government of Canada has taken certain measures to respond to the requests and changing priorities, including:

• Withdrawal of the federal government from the areas of labour market training, mining and forest development, recreation, tourism and the administration of social housing;
• Major joint federal-provincial initiatives such as the National Child Benefit, homelessness, and the 2000 Accords on health and early childhood development;
• Adoption of the Social Union Framework agreement, intended to guide governments in developing and reviewing social policies and programmes and in managing their interdependence more effectively.

Supporting Material 

• Aboriginals Policy
• Intergovernmental Affairs Policy

 

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