In a bid to revitalize an aged approach, the Canadian government is resurrecting the concept of special operating agencies (SOAs) to address economic challenges. Initially introduced in 1989 under the Mulroney administration, SOAs were intended to enhance efficiency and innovation in service delivery.
While the government had slowed down on creating new SOAs over the past three decades, Prime Minister Mark Carney’s administration is now embracing this model to bolster Canada’s economy amidst the trade tensions initiated by U.S. President Donald Trump. Three new SOAs – Build Canada Homes, the Defence Investment Agency, and the Major Projects Office – have been established to oversee the allocation of significant funds and drive project advancements.
Advocates of SOAs argue that these agencies offer greater flexibility and agility in decision-making processes. Despite the existence of only a few SOAs until recently, the new agencies introduced by Carney’s government operate with a level of secrecy regarding their operational frameworks.
The accountability of SOAs is primarily outlined in their framework agreements, as emphasized in a Treasury Board website from the late 1990s. These documents define the agency’s mission, relationships, and performance targets. While the framework documents are traditionally considered public, recent attempts to obtain them for Carney’s agencies have proven unsuccessful.
Although the SOA website contains outdated information, the departments housing each agency hold the framework agreements. These agreements may be confidential, as in the case of the Defence Investment Agency. The Building Canada Act provides insights into the governance rules for the Major Projects Office but does not exempt projects from key legislations.
According to former Privy Council clerk Michael Wernick, SOAs follow government regulations but enjoy extended authorities in areas like procurement and personnel management. These agencies offer expedited setup processes compared to establishing new entities through Parliament legislation.
While some SOAs have thrived, others have faced challenges or ceased to exist. Kevin Page, from the University of Ottawa’s Institute of Fiscal Studies and Democracy, stresses the importance of transparency for the new SOAs, especially regarding their framework agreements and business plans. This transparency is deemed critical given the substantial financial implications and collaborative efforts with the private sector in crucial sectors like defense and housing.
Moving forward, maintaining transparency and accessibility to critical documents will be pivotal in ensuring effective governance and public accountability within these specialized agencies.
