After a bumpy ride, federal budget watchdog steps down with some praise

During his unawares term of office as Canada's meanwhile parliamentary budget ship's officer, Jason Jacques endured accusations of partisanship, unfavorable judgment over his message delivery and, in the end, praise for representing an institution now ranked first among its international equals.

Appointed in September by Prime Minister Mark Carney to sit in the chair until a permanent parliamentary budget officer (PBO) could be appointed, Jacques decided early that he wanted his six months to have an impact.

On his first day he asked the Organization for Economic Co-operation and Development (OECD) to undertake its very first review of Canada's Office of the Parliamentary Budget Officer to see how it measures up to similar institutions in other countries. The review looked at the office itself — which provides independent financial analysis to Parliament — rather than individual officers.

"After almost 20 years I thought that an external evaluation of the office was long overdue," he told a parliamentary committee last week. "I specifically requested that they provide a road map to sustain our institution as one one of the best among OECD countries."

That review, delivered last week, ranked the PBO first out of the 35 countries the OECD evaluated. Second on the list is the U.S. Congressional Budget Office, third is the Bureau for Economic Analysis in the Netherlands.

That verdict did not go unnoticed during Jacques's 24th and final appearance as interim PBO before a parliamentary committee.

"Before we start, I want to congratulate you and your predecessor Mr. [Yves] Giroux, and the rest of your team, for being identified by the OECD as the top in class for the entire OECD," Conservative MP and committee chair Kelly McCauley said. 

While the OECD report ranked Canada top of its class, it also delivered Jacques's requested "road map," identifying five key areas for improvement — including how it appoints leaders, gets its raw data and ensures the quality of its analysis.

The OECD also said the PBO should improve how it prioritizes its work and communicates the substance of its analysis and reports to parliamentarians and the public.

Two examples were given for the criticism of the PBO's communications. The first was an announcement in 2024, under Giroux, that it had erroneously included the industrial carbon price in calculations for the consumer price.

While the error was eventually corrected, the OECD report said the manner in which it was done drew criticism for a lack of transparency.

The second example was Jacques's controversial appearance before a parliamentary committee in September when he described the health of Canada's federal finances as "stupefying," "shocking" and "unsustainable."

The OECD report noted that Jacques faced criticism for using language that some considered to be "inflammatory" which led to him adopting "more neutral phrases to minimize the risk of misinterpretation" going forward. 

Budget watchdog calls federal spending 'stupefying, shocking'

"Taken together, these episodes point to the potential value of clearer internal guidance on communication as the PBO continues to mature," the report said.

The OECD pointed out that the PBO only has one staff member focused on communications, even as it fields more work requests.

"Strengthening protocols … would help ensure that the PBO’s communications remain clear and resilient in a fast‑moving parliamentary and media environment," it said.

Jacques said when the OECD shared that recommendation in a draft before Christmas, his first reaction was: "holy cow, why haven't we done this before?"

He said that realization was followed by a slightly sickening feeling that by failing to have a communications plan or formalized way of correcting errors, the PBO had left its institution vulnerable.

Last month the PBO began to tackle that problem by delivering its first communications and corrections policies. Errors will now be published on the same web page as the initial report.

"Internally, evolving staff roles and reliance on informal practices have occasionally blurred responsibilities, creating risks of both excessive review and gaps in scrutiny," the OECD warned. 

To eliminate that risk, it suggested establishing a panel to review reports and then including a note in the final report describing the extent and nature of the peer review. 

The OECD report suggested legislative changes that would allow the PBO to access tax data directly from the Canada Revenue Agency rather than going through Statistics Canada.

"It saves time, it saves money," Jacques said of the recommendation. 

The report also asked for the PBO to come up with a stricter way to prioritize the increasing number of requests it gets from parliamentarians to review policies and decisions. 

Permanent PBOs are appointed for a seven-year term that can be renewed, for a maximum total of 14 years in office. No permanent PBO has served more than one term.

The candidate is chosen by cabinet and then has to be confirmed by a vote in both the House of Commons and the Senate.

An interim PBO can be appointed directly by cabinet through a governor-in-council appointment for an unlimited number of six-month terms without any parliamentary approval. 

The OECD says that could open "the door to partisanship" and the appearance of bias. 

"The method of my appointment created a perception of partisanship very quickly out of the gate," Jacques told the committee.

"I was asked by many parliamentarians and staffers how well I knew the prime minister, how many times I met the prime minister, if I was a member of the Liberal Party of Canada, if I had donated to the Liberal Party of Canada and no one should have to deal with that."

Jacques said having a hiring process that leads to accusations of partisanship undermines the PBO's independence and should be rethought. 

Since he first took on the interim role, Jacques says he has tried to put his responsibilities to parliamentarians before appearances in the media and committee testimony. 

Both Jacques and the OECD agree that when the PBO is the face of all the work the office does, it can lead some to believe the officer is voicing opinions, rather than disseminating reports.

Jacques says he wants to move away from the notion of a parliamentary budget officer and toward a focus on the office itself, similar to the way the U.S. Congressional Budget Office is viewed.

Whether the institution ever gets there, Jacques said, will be something the new PBO will have to take on — if they end up sharing his opinion. 

Jacques's term ends on Monday with no permanent replacement yet announced.

Senior writer

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