NLIS 3
December 2, 2004
(Executive Council)
(Government Services)
 

Government moves forward with accountability and transparency agenda

Two major pieces of legislation related to the accountability and transparency agenda have been introduced in the House of Assembly. The Accountability and Transparency Act will provide for greater openness and accountability of all government departments and public bodies. The Government Purchasing Agency Act will make the agency independent of a government department and ensure greater transparency and accountability in government procurement. 

"In our Blueprint, we committed to set the bar on transparency and accountability much higher, so that government is truly open and transparent in decision-making and accountable to the people of Newfoundland and Labrador. With the introduction of this legislation, we are fulfilling yet another Blueprint commitment. The result will be more responsible governance, and we are proud today to introduce these important pieces of legislation," said Premier Danny Williams. 

The Accountability and Transparency Act covers strategic planning and annual reports, financial forecasts, public entity borrowing, and performance-based contracts for executives. It also makes requirements for the public release of a wide variety of information so that the people of the province can have access to it. This legislation will apply to all government departments and public entities. Given the independent nature of the provincial courts, they are being excluded. 

"The features outlined in the legislation are merely steps prudent and responsible governments should be doing to be accountable. This government is going one step further � we are putting these measures into law. We want to ensure the people of the province that this government, and all future governments, must and will be accountable and transparent," said Loyola Sullivan, Minister of Finance and President of Treasury Board. 

Under the Government Purchasing Agency (GPA) Act, the agency will be independent of a government department and have increased autonomy. In addition, the agency will now have a Chief Operating Officer (COO) who will have immediate authority over the day-to-day management and control of the GPA. The COO will report directly to the Speaker of the House of Assembly for all Public Tender Act exemptions, and will have an enhanced monitoring and audit function. For all other matters, the COO will report to the Minister of Government Services, who has responsibility for the act. 

"We are giving the Government Purchasing Agency the autonomy it needs to ensure departments and publicly-funded bodies comply with the Public Tender Act," said Government Services Minister Dianne Whalen. "We are living up to our Blueprint commitment to strengthen the Public Tender Act and make government more open and accountable." 

Minister Whalen announced that the current director of the GPA, Larry Cahill, will continue on as its COO. Mr. Cahill has been with the GPA since 1984 and is a certified purchasing agent.

"Our government believes in being open and accountable to the people of Newfoundland and Labrador. It is a commitment we made, and a commitment we are implementing. These new acts are sound legislation which will give effect to structural reforms to ensure the system works more openly, transparently and accountably on a regular basis," concluded the Premier. 

Media contact:
     Elizabeth Matthews, Office of the Premier, (709) 729-3690 or (709) 690-5500
     Diane Keough, Treasury Board Secretariat, (709) 729-6830 or (709) 685-4401
     Tracy Barron, Government Services, (709) 729-4860 or (709) 690-6157

BACKGROUNDER
Accountability and Transparency Act 

The Accountability and Transparency Act puts into law the ways and means the provincial government will be open and accountable to the people of the province about its operations. 

The legislation will apply to all government departments and public entities, except provincial courts. (Given the independent nature of the provincial courts, they have been excluded.) 

• All departments and public bodies must develop and table multi-year performance-based plans and annual performance-based reports. These plans are to be approved by the responsible minister, and must be tabled within prescribed time-frames.
  
  
• If a plan or report is not made public within the required time-frame, if it does not include the required information, or if it does not present the information in the required manner, the responsible minister will be expected to make public a written statement outlining the reasons for non-compliance.
  
  
• In order for departments and public entities to have the necessary time to fully transition and implement all the required measures, the act stipulates that entities must table three-year performance-based plans by the spring of 2008.

• The new legislation will require government to follow consolidated accrual accounting for preparing and reporting the provincial budget and related documents. At budget time government will also be required to fully disclose the impact of government�s fiscal decisions over a three-year forecasting period and to provide semi-annual economic and fiscal updates.

• Under the legislation, a public body cannot borrow, or otherwise incur debt for capital requirements without the prior approval of the both the responsible minister and the Minister of Finance. (The exception to this would be those entities which currently require Cabinet approval, that process will remain the same.)
  
  
• When approval for the capital borrowings is granted, the Minister of Finance must give notice to the House of Assembly within 12 sitting days of the approval granted.

• The new act will require prior approval by Cabinet to establish a new corporation under the Corporations Act. Collectively, Cabinet will determine the corporation�s purpose, powers, governance structure, and authority to borrow and incur debt. The responsible minister will be required to provide a public statement, no later than four weeks after the date of incorporation, outlining the purpose and role of the new entity.

• Ministers will now enter into performance contract s with deputy ministers. For all other public entities, the chair of the governing body will be required to enter into such a contract with the chief executive officer or equivalent.

BACKGROUNDER
Government Purchasing Agency 

The Government Purchasing Agency (GPA) will be independent of a government department. 

The GPA Act gives the agency greater autonomy by:

• The Chief Operating Officer (COO) reporting directly to a minister as opposed to an ADM;
  
  
• All Public Tender Act (PTA) exemptions being filed with the GPA, as opposed to a minister, and the COO reporting all exemptions directly to the Speaker of the House of Assembly;
  
  
• The COO having the authority to challenge all public tendering decisions of departments and government-funded bodies through an enhanced monitoring and audit function;
  
  
• The COO having direct authority and responsibility for decisions relating to joint purchasing, as opposed to the minister; and
  
  
• Requiring all invitations to tender and acceptance of tenders by government-funded bodies be filed with GPA within set timeframes, which was not done before.

The Department of Transportation and Works will retain responsibility for the tendering of public works and leasing, with an enhanced monitoring function in that the authority of the COO to challenge the awarding of those contracts. The tendering of leasing and public works requires a level of engineering expertise and project direction that resides, and makes sense to remain, with the Department of Transportation and Works.

The Public Tender Act is also being amended to include Newfoundland and Labrador Hydro, which is currently exempt.

Government is also moving forward with a number of strategies outside the legislation to promote and support local supplier development, including:

• An interdepartmental committee will review tender specifications to ensure fair and equal access to local companies;
  
  
• GPA will provide training on the PTA to ensure local suppliers are aware of government procurement opportunities; and
  
  
• GPA will monitor the success of local companies in bidding on government procurement contracts for a 12-18 month period to determine what additional strategies, if any, need to be developed.

The Department of Innovation Trade and Rural Development will take the lead on ways to maximize supplier development opportunities for local companies. 

Larry Cahill
Mr. Cahill brings over 20 years experience with the Government Purchasing Agency (GPA) to the position of Chief Operating Officer. He was appointed director of the GPA in 1989 after five years as director of purchasing. 

Mr. Cahill has capably carried out his responsibility for government�s $140-million procurement program as it relates to purchasing, administration and the supply of goods and services to government departments and agencies. He has had a lead role in the interpretation of the Public Tender Act and Regulations on behalf of government-funded bodies and has actively participated in the resolution of tendering and contract award issues. He is also involved in discussions and negotiations involving the regional and national trade agreements on procurement. 

Mr. Cahill graduated from Memorial University of Newfoundland with a bachelor of commerce and is a certified purchasing agent by the Purchasing Management Association of Canada. He also holds a certificate of business administration and diplomas in business administration and certified management and administration from Memorial University. 

2004 12 02                                          12:05 p.m.