August 15, 2016
Manitoba Government to Introduce Proposed Legislation that would Strengthen Oversight, Increase Efficiencies of Crown Corporations
The Manitoba government is preparing to propose new legislation that would increase the efficiencies and accountability of Crown corporations and strengthen oversight of the organizations, Crown Services Minister Ron Schuler announced today.
“This new legislation is aimed at furthering our government’s commitment of eliminating overlap and duplication within government, while finding efficiencies and savings,” said Schuler. “The bill would support improved transparency and clearly define the respective roles of government and the boards of directors of Manitoba’s major Crown corporations.”
The proposed Crown corporations governance and accountability act will be introduced to replace the current Crown Corporations Public Review and Accountability Act. Under the proposed legislation, the Crown Corporation Council would be dissolved and replaced with a secretariat to provide both policy and oversight support. The proposed new model would be more efficient and cost effective, the minister said.
A policy unit would help prepare documents, manage legislative and regulatory needs, provide analysis of major capital proposals and liaise with Crowns to address concerns of Manitobans, the minister said. He added a regulatory unit would ensure compliance with reporting requirements of the act, as well as provide analysis and advice with respect to business plans, capital plans and other major decisions that boards may make.
Schuler said the new legislation would also better address issues around appropriate roles,
decision-making processes, relationships, responsibility and liability by:
- establishing a clear governance model to ensure boards are accountable for governing and overseeing the management of the corporation within the parameters provided by government;
- establishing board accountability requirements including the provision of accountability reporting documents, such as annual reports, budgets and long-term plans; and
- clarifying the accountability relationship/understanding of the respective roles of government, boards, executive offices and officials.
The proposed legislation would affect four Manitoba Crown corporations:
- Manitoba Hydro;
- Manitoba Liquor and Lotteries;
- Manitoba Public Insurance; and
- the Manitoba Centennial Centre Corporation.
“Maintaining the status quo would leave Crown corporations vulnerable to interference, which can unduly influence the work of a board,” said Schuler. “I’m confident the new legislation would help us strengthen the oversight of these organizations while respecting the responsibility of their boards and management to govern their work on behalf of all Manitobans.”
The proposed legislation will be introduced later this year, the minister said.
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