Question Period Note: Conflict of interest

Following a recent data request from the Standing Committee on Public Accounts for a “list of government employees that also work as contractors,” consolidated data was provided to Standing Committee on Public Accounts through Treasury Board Secretariat’s Office of the Chief Human Resources Officer, with departments each providing information for their respective employees.

• Ensuring ethical behaviour in the public service is of critical importance, and Public Services and Procurement take this matter very seriously
• In March, an email was sent to all Public Services and Procurement Canada employees reminding them of their responsibilities and asking them to confirm that they had reviewed the procedures and completed all required steps
• This initiative was intended to ensure that all employees had completed conflict of interest forms, where applicable, and made the necessary updates
• This approach was complementary to the existing Conflict of Interest Program, which aims to identify and mitigate potential conflicts of interest
• A large portion of the external activities reported by public servants to Public Services and Procurement Canada are in the area of not-for-profit, voluntary and community organizations, the hospitality and service sector, as well as reservists with the Armed Forces and people involved with cadets
• Shared Services Canada employees must adhere to the Values and Ethics Code for the Public Sector and to Shared Service Canada's Organizational Code as a condition of employment. Employees are required to act in a manner that prevents, manages and resolves conflicts of interest, and to carefully manage public funds
• Shared Service Canada employees are to report all outside employment, activities, assets and interests that might give rise to conflicts of interest in relation to their official duties and responsibilities
• Shared Service Canada produces a yearly comprehensive communication plan covering values and ethics, which reminds employees to declare any situation that may give rise to a conflict of interest
• In 2023-2024, 44% of the 329 declarations received by Shared Service Canada reported outside activities
• Shared Service Canada also offers in-house values and ethics training to employees at all levels in addition to mandatory training offered by the Canada School of Public Service

If pressed on the code:

• The Code of Conduct applies to all Public Services and Procurement Canada employees, regardless of group or level, including students, secondments, interchange employees, casual employees
• Employees are required to file a conflict of interest declaration for any paid employment outside Public Services and Procurement Canada and for any business they own, or if they believe or are unsure that their activities outside the public service may place them in a real, apparent or potential conflict of interest situation
• Conflict of interest declarations are assessed individually in light of the Public Service and Procurement Canada’sCode of Conduct and the Treasury Board Secretariat’s Conflict of Interest Directive
• Employees are informed in writing of the decision and the steps required to determine whether or not a real, potential or apparent conflict of interest exists
• The response sets out employees' obligations to ensure compliance with the Values and Ethics Code for the Public Sector, Public Services and Procurement Canada’s Code of Conduct and the Treasury Board Secretariat's Conflict of Interest Directive
• Given the current context, Public Services and Procurement Canada is in the process of updating its conflict of interest processes and related assessment tools, such as its benchmark criteria
• Public Services and Procurement Canada’s conflict of interest management program meets all policy requirements. We are updating the program to ensure that conflict of interest obligations remain at the forefront of employees' and managers' minds

In March 2024, departments were asked to provide the Office of the Chief Human Resources Officer with data on declarations of conflict of interest in 2022-2023 and 2023-2024 where government employees also worked as contractors. This is a very narrow subset of declarations of outside employment by government employees. Public Services and Procurement Canada reported 5 such declarations in 2022-2023 and 10 in 2023-2024. Shared Services Canada reported no such declarations in 2022-2023 and 6 in 2023-2024.

Employees may engage in employment or activities outside the public service, provided that such employment or activities do not give rise to a real, apparent or potential conflict of interest, or compromise the impartiality of the public service or their own objectivity.

Employees are required to file a conflict of interest declaration for any paid employment outside Public Services and Procurement Canada and Shared Service Canada and for any company they own. In addition, for all of their outside activities, assets, liabilities and interests, employees must submit a conflict of interest declaration if they believe, or are uncertain, that they may be in a real, apparent or potential conflict of interest or may compromise the impartiality of the public service or their own objectivity. Public Services and Procurement Canada and Shared Service Canada then determines whether the situation presents a real, apparent or potential conflict of interest, and may require the modification or abandonment of the interest, asset, liability, employment or outside activity. Based on current context, Public Services and Procurement Canada is updating its conflict of interest processes and assessment tools, such as benchmarks.

The Office of the Chief Human Resources Officer is reviewing the Directive on Conflict of Interest to ensure that the requirements are clear and effective, particularly as they relate to employees who engage in outside employment, including contracts with the Government of Canada. The Office of the Chief Human Resources Officer is also examining guidance on conflict of interest provided to deputy heads to support the effective exercise of their authorities and responsibilities under this Directive, and as required, under the Policy on People Management. These activities could yield changes at the enterprise or organizational level that would impact future results. For example, departments could revise their lists of what constitutes a conflict of interest for individuals working in certain roles or business lines, which could increase the numbers of conflict of interest declarations. This targeted review is well underway and is expected to be completed by end of fiscal year 2024-2025. The approach will rely heavily on consultation with partners and stakeholders to identify gaps and potential areas for improvement, underpinned by research on current approaches in other jurisdictions. 

• Public Services and Procurement Canada and Shared Service Canada’s processes with respect to Conflict of Interest declarations comply with requirements contained in the various Treasury Board policy instruments, such as the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest
• Employees are informed in their letters of offer on initial appointment, as well as all subsequent appointments, of their obligation to report any real, potential or apparent conflict of interest
• Employees also receive training and regular communications related to conflict of interest