Prime Minister Stephen Harper announces New Government Pay Centre in Miramichi, New Brunswick

August 19, 2010

MIRAMICHI, NEW BRUNSWICK – Prime Minister Stephen Harper today announced that the Government of Canada is modernizing its 40-year-old pay system for public servants and consolidating pay services in a new Centre of Expertise in Miramichi, New Brunswick.  He was joined by Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women; Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway; and Tilly O’Neill-Gordon, Member of Parliament for Miramichi
 
“The modernization of the Government’s pay system and services will save taxpayers millions of dollars and create hundreds of jobs in Miramichi,” said Prime Minister Harper.  “This is part of our Government’s ongoing commitment to increase the effectiveness of Public Service operations and eliminate unnecessary costs.”
 
This new plan will apply up-to-date technology to replace outdated and labour-intensive information technology systems, saving Canadians money over the long run and ensuring more efficient service.
 
The transformation of the Government’s antiquated pay administration system and services will address concerns raised in the Auditor General’s Spring 2010 report and is expected to generate significant benefits. These include overall savings starting in 2016-2016 when the system is fully implemented, a full complement of 550 Public Works and Government Services Canada staff at the centre by 2015-2016 and information technology jobs in the National Capital Region over a six-year period.
 
The new pay system and Centre of Expertise will also ensure a sustainable and effective compensation service for public servants consistent with modern industry standards.


 
Backgrounder
The Government of Canada is committed to increasing the effectiveness of Public Service operations and eliminating unnecessary costs.  On August 19, 2010, Prime Minister Stephen Harper announced that the Government of Canada is modernizing its 40-year-old pay system for public servants and consolidating pay services in a new Centre of Expertise in Miramichi, New Brunswick.  This will result in:

• The creation of 550 Department of Public Works and Government Services jobs in the city.
• Savings of up to $79M per year starting in 2016-17 thanks to increased automation, self-service and economies of scale.
• The creation of information technology (IT) jobs over a six-year period in the private and public sectors in the National Capital Area to modernize the pay system and processes.

 
Funding of $298 million over a six-year period will be made available for this initiative, which supports long-term sustainability and enhanced service delivery.  It is anticipated that the Government will recoup its initial investment by 2020.
 
BACKGROUND

In 2008, Public Works and Government Services Canada (PWGSC) identified outdated information technology (IT) systems such as its Pay and Pension systems as a risk to the Department achieving its overall objectives. 
 
The existing pay IT system is increasingly difficult to maintain and relies on outdated technology and expertise that puts the sustainability of pay administration at risk.
 
In the Auditor General’s Spring 2010 Report, Sheila Fraser recommended that PWGSC undertake the following measures to address its aging IT systems:
 
Use a department-wide portfolio management approach to ensure it focuses on current and planned IT investments that best contribute to meeting its business objectives, with an acceptable degree of risk and at a reasonable cost.
Develop a multi-year IT investment plan that presents a balanced mix of mandatory, sustaining and discretionary investments required to both maintain existing systems and to improve service delivery.
Develop an action plan for each significant aging IT risk.  The plans should include specific strategies, key activities, deliverables and timelines to manage these risks.  PWGSC should report progress regularly to senior management.
 
Similarly, in February 2009, the Prime Minister’s Advisory Committee on the Public Service — an external advisory group — considered the modernization of the federal pay system “a top priority.”