Second Canadian Statistics Advisory Council (CSAC) Meeting

Date: September 27 2019, 8:30-4:30pm

Location: The Ivan P. Fellegi Conference Room, 26th floor, R.H. Coats Building, 100 Tunney's Pasture Driveway, Ottawa

• Meeting agenda
• Meeting summary

CSAC members

Dr. Teresa Scassa (Chairperson), Gurmeet Ahluwalia, Anil Arora, David Chaundy, Annette Hester, Jan Kestle, Dr. Céline Le Bourdais, Gail Mc Donald, Dr. Howard Ramos, Dr. Michael Wolfson

External guests

• Patricia Kosseim, Counsel, Privacy and Data Management, at Osler, Hoskin, and Harcourt LLP
• Ted Tunis, Facilitator, E.S. Tunis & Associates
• Simon Kennedy, Deputy Minister of Innovation, Science and Economic Development
• Pierre Therrien, Senior Director, Economic Analysis and Research, Innovation, Science and Economic Development

Statistics Canada guests/support

Melanie Forsberg, Monia Lahaie, Jacques Fauteux, Lynn Barr-Telford, Martin St-Yves, Stephane Dufour, Steven McRoberts, Etienne Saint Pierre, Eric Rancourt, Kathleen Mitchell, Gabrielle Beaudoin, Linda Howatson-Leo

Meeting agenda

Meeting summary

1. Recap of first CSAC Meeting and Roundtable

Dr. Teresa Scassa opened the meeting by welcoming members and guests to the second Canadian Statistics Advisory Council meeting. She provided an overview of the first meeting and reiterated that the Council will produce an annual report by Fall 2020. The Council described the importance of transparency in their work and their intention to publish agendas and minutes online.

2. Communications Protocol

Jacques Fauteux, Assistant Chief Statistician of Strategic Engagement and Communications, Statistics Canada

Jacques Fauteux outlined to Council members communication protocols within the Canadian federal government. He made reference to a number of policies (Policy on Communication and Federal Identity) and the Official Languages Act. As an independent council, the Council or members may be called upon to comment on issues related to matters related to Statistics Canada. Mr. Fauteux referenced the Council's Terms of Reference and explained how it could be a tool to guide members.

3. Update on administrative data projects and implementation of proportionality framework

Eric Rancourt, Director General of Methodology, Statistics Canada

Eric Rancourt provided Council members with an update on the banking financial transaction pilot, the credit data project and the application of a proportionality framework for privacy. CSAC members provided feedback and advice on the implementation of this new framework.

4. Privacy Briefing

Patricia Kosseim, Counsel, Privacy and Data Management, at Osler, Hoskin, and Harcourt LLP

Ms. Kosseim reviewed the statutory framework related to privacy in the public sector (Statistics Act, Privacy Act, PIPEDA). She shared some observations about the privacy landscape within the private and public sector, drew international comparisons and observations and discussed the potential implications for Statistics Canada.

5. Update on health data access

Lynn Barr-Telford, Assistant Chief Statistician of Social, Health and Labour Statistics, Statistics Canada

Lynn Barr-Telford provided a summary and update about access to health data as it relates to the Canadian Community Health Survey (CCHS) and a recent New Brunswick court decision, and asked CSAC members for advice on engagement with partners.

6. Overview of Statistics Canada's Governance and Accountabilities

Monia Lahaie, Assistant Chief Statistician of Corporate Services, Statistics Canada

Monia Lahaie presented Statistics Canada's accountability framework, including enabling governance which supports strategic decision making and the international and subject matter advisory committees that help the agency ensure high quality data.

7. Discussion on Way Forward for the Council

Ted Tunis, Facilitator, E.S. Tunis & Associates

Council members had the opportunity to develop a strategic framework, identify priority issues and plan for their annual report. Members discussed the council's mandate, mission statement and values. The group identified potential topics of focus for the annual report. In addition, two subcommittees were created. One will focus on privacy (Jan Kestle, Teresa Scassa) and the other on access to microdata and engagement (Michael Wolfson, Celine Le Bourdais and Howard Ramos).

8. Future Business

Dr. Teresa Scassa, Chairperson of CSAC

Dr. Teresa Scassa completed the meeting with closing remarks. She thanked members and Statistics Canada staff for their continuous support in CSAC matters. Member availability is being compiled to establish upcoming meeting dates aligned with the proposed timelines discussed in the afternoon.

1. Introduction

On December 12, 2017, the Act to amend the Statistics Act received Royal Assent, providing the authority for the Government of Canada (GOC) to establish the Canadian Statistics Advisory Council (hereinafter referred to as the "CSAC" or the "Council"). The Council is being created to reinforce the independence and relevance of the national statistical system, and will focus on the overall quality of Canada's statistical system.

2. Mandate

The Council’s mandate is to advise the Minister of Innovation, Science and Economic Development (the “Minister”) and the Chief Statistician of Canada in a transparent manner on any question that either of them has referred to the Council on the overall quality of the national statistical system, including the relevance, accuracy, accessibility and timeliness of its data. Its mandate also includes the public release of an annual report on the state of the national statistical system.  In doing so, the Council will assist Statistics Canada with achieving its primary goal of ensuring Canadians and governments continue to have access to a trusted source of statistics and data to meet their information needs while preserving privacy and confidentiality of the data.

3. Responsibility

The Council will provide impartial and independent advice regarding the overall quality, relevance and impartiality of the national statistical system. It will balance the interests of multiple stakeholders with divergent views and synthesize diverse viewpoints and opinions into strategic, non-binding advice.

The Council is expected to focus on a variety of topics such as, but not limited to:

• Providing advice on how to ensure Statistics Canada, through the Statistic Act, can efficiently respond to data needs of the 21st century;
• Providing advice on how to ensure the continuing confidence and trust of Canadians in the national statistical system, its products and collection processes;
• Anticipating emerging issues and trends regarding national statistics agencies, such as the challenges and opportunities that advances in digital technology present for Statistics Canada in collecting and producing relevant and timely statistical information while preserving privacy and data confidentiality.

To increase transparency, the Council will publish an annual report to inform Canadians on the state of the national statistical system.

4. Council membership

The Council shall be composed of up to 10 Members appointed by the Governor in Council (GIC) to hold office during pleasure, including one Chairperson. The Chief Statistician will be an ex-officio Member of the Council.

The Chairperson and Members will serve in their own right, not as representatives of any particular organization, area or special interest, and were recommended by the Minister to the GIC based on their individual accomplishments and expertise in the various fields relevant to ensuring the high quality of the national statistical system.

Members will serve for a term of three years and may be reappointed for an additional term of three years. The Chairperson will serve for a term of not more than five years and may be reappointed for an additional term of three years.

An Acting-Chairperson may serve only for the duration of the meeting and activities directly related to the meeting for which they have been selected to fulfill the role and responsibilities of the Chairperson.  

5. Responsibilities of the chairperson and members

The Council will be led by the Chairperson, who will provide leadership and guidance on the Council’s ongoing work. The Chairperson will preside over all Council meetings, serve as the primary spokesperson with media, stakeholders, and government officials, liaise with and communicate advice to the Chief Statistician and the Minister on behalf of the Council, and lead the development of the annual report on the state of the Canada’s national statistical system. He or she will ensure the Council activities and work are done in a transparent and impartial manner. 

In the event that the Chairperson is unavailable or unable to preside over Council meetings and/or fulfill the responsibilities of the position, the Chairperson may select from among the council members, an Acting-Chairperson to serve during their absence. If the Chairperson is unavailable or unable to select their replacement, the Council shall select the Acting-Chair by majority consensus. Such consensus may be confirmed through electronic means. Hereafter, all references to the ‘Chairperson’ shall by extension and when applicable, apply to the Acting-Chair.  

Members will support the Chairperson by providing a broad viewpoint and expertise to the issues being discussed by the Council and provide thoughtful advice that is based on the assessment of multiple viewpoints, interests, and issues from a national perspective. Members will additionally support the Chairperson in the development of the annual report on the state of the national statistical system.

The Council will be supported by a Secretariat (as described in section 12 below). As part of the Council's ongoing work, the Secretariat and the Chief Statistician will assist the Council with providing information on Statistics Canada's various subject matters and advisory committees, in addition to other types of administrative support.

The approximate time commitment for the Chairperson and Members is expected to be 10-15 days of remunerated work per year, and will vary depending on the planned activities of the Council.

6. Meetings

The Council will meet in person at least once a year. The Chairperson in consultation with the Secretariat will determine the time and place at which the Board will meet, and the scheduling of any additional meetings, including teleconferences.

Meeting agendas will be determined by the Chairperson in consultation with the Secretariat

The Council will establish rules and procedures under which meetings will be conducted. To the extent possible, the Council shall operate on a consensus basis.

A quorum of 50 percent of members is required for a Council meeting to proceed and the Chairperson (or Acting-Chairperson, when applicable) will preside at all meetings.  

Outside experts, stakeholders, and government officials may be invited by the Chairperson, in consultation with Members of the Council and the Secretariat, to attend Council meetings to share information and ideas.

7. Conflict of interest

The Chairperson and Members of the Council have been appointed because of their expertise and experience. While recognizing the importance of appointees' experience and knowledge, the Chairperson and Members are required to organize their affairs and their participation in the Council's work to avoid any real or perceived conflict of interest (COI) as they are subject to the Conflict of Interest Act. The Chairperson and Members of the Council should refer to the Conflict of Interest Act for guidance on any real or perceived COI that may potentially arise from their work on the Council.

8. Political activity

As GIC appointees, the Chairperson and Members of the Council must comply with the Ethical and Political Activity Guidelines for Public Office Holders throughout their appointment as a term and condition of employment.

9. Values and ethics

As GIC appointees, the Chairperson and Members of the Council must uphold the highest standards of probity and are expected to demonstrate behaviours in the workplace that afford respect, equality and dignity, to everyone they interact with at work at all times. The Values and Ethics Code for the Public Sector outlines the values and expected behaviours for public servants, including valuing diversity and creating workplaces free from harassment and discrimination. As GIC appointees, the Chairperson and Members of the Council are expected to uphold and respect these values and principles in a positive and active manner.

10. Confidentiality

Any information divulged or obtained during meetings or provided in support of such meetings that is categorized as 'confidential' shall be protected and maintained as confidential and, without limiting the generality of the foregoing, shall not be discussed in public unless expressly authorized to do so by the Minister of Innovation, Science and Economic Development. Information or documentation demonstrably in the public domain is excluded from the confidentiality rule.

The Chairperson and Members of the Council may be required to obtain a security clearance

11. Fees and expenses

As per Order in Council PC Number: 2018-0965 dated June 28, 2018, the GIC has fixed the remuneration ranges for the Chairperson and Members of Council. The per diem rate for the Chairperson has been fixed in the range $550.00 - $650.00; and for Members in the range $375.00 - $450.00

The Chairperson and Members of the Council shall be reimbursed, consistent with guidelines set forth by the Treasury Board Directive on Travel, Hospitality, Conference and Event Expenditures for reasonable travel and living expenses incurred while performing Council duties while absent from his or her ordinary place of residence.

To reduce travel costs, the use of teleconference, WebEx, Skype for Business, and videoconferencing facilities is encouraged whenever feasible.

12. Secretariat support

A Secretariat housed within Statistics Canada will be responsible for providing overall leadership on administrative support to enable the effective functioning of the Council, such as planning and coordinating the logistics for Council meetings and teleconferences, the completion and review of travel forms to facilitate the processing of travel expense claims, confirming travel arrangements and supporting the development of the Council's annual report, including on questions raised by either the Chief Statistician or the Minister.

The Secretariat will be led by Statistics Canada but will also include a representative from Innovation Science and Economic Development Canada.

13. Media and communications

Media requests related to Council statements or activities to be directed to CSAC Secretariat. Media Relations at both Statistics Canada and Innovation, Science and Economic Development will be available to provide support as needed. The Chairperson is the primary spokesperson for the CSAC.

Status

The variant of the North American Product Classification System (NAPCS) Canada 2017 for the Raw Materials Price Index (RMPI) was approved as a departmental standard on October 16, 2017. The new RMPI variant is based on NAPCS Canada 2017 Version 2.0, and replaces the previous RMPI variant based on NAPCS Canada 2012 Version 1.1.

Changes

The Raw Materials Price Index measures price changes for raw materials purchased by manufacturers in Canada for further processing. As our economy evolves, changes in our products must be reflected in the product classification used. Subsequent to the release of the updated NAPCS Canada 2017 Version 2.0, the variant for RMPI has been updated.

Changes to any variant may originate from modifications applied to the standard classification it is based on, as well as from revisions to the structure of the variant itself.

Changes to the standard classification are described in the introduction of each new version of NAPCS Canada. NAPCS Canada 2017 Version 2.0 mainly reflects the response to the legalization of cannabis for non-medical use. Additional to those major changes, some categories were merged, such as fuel wood and solid fuel products, and others were split, such as pulse crops and fresh vegetables. New categories were incorporated and more details were added to some categories, such as for maple syrup and other maple products. These changes improve relevancy to statistical programs and users. The structure of the RMPI variant was not affected by most of these changes, other than the addition of a new group under 213M created for cannabis seeds, vegetative plants and fresh flowering tops (including leaves), in bulk.

Background

In order to create a price index, price data is aggregated into distinct product classes. From the 1980s until 2013, the product classification system used by the RMPI was the Principal Commodity Groups. However, changes in the economy required periodic updates in the classification systems. Following the approval of NAPCS Canada 2012 as a departmental standard, the RMPI and the Industrial Product Price Index (IPPI) variants were approved as departmental standards on May 2013.

NAPCS is a product classification developed and updated jointly by Canada, Mexico and the United States. NAPCS Canada is the Canadian version and has a different structure than the trilateral NAPCS (for more details, see the introduction of NAPCS Canada 2017 V2.0). NAPCS Canada has been implemented by most Statistics Canada programs that have a “product” (goods and services) dimension. As new updated versions of NAPCS Canada are created, the RMPI is also updated.

The RMPI is produced and published together with the Industrial Product Price Index (IPPI). Both indexes are of value in analytical studies of price formation and historical comparisons. Both the RMPI and the IPPI are used to calculate the real Gross Domestic Product (GDP) by industry.

The RMPI is a regrouping variant, it introduces alternative aggregate levels by regrouping categories of NAPCS Canada, the base statistical classification. In the RMPI variant, NAPCS Canada is generally aggregated at the three-digit group level and, to a lesser extent, at the five-digit class level. The coding is alphanumeric and each variant has its own codes at the section and/or group levels. For example, in the RMPI, a letter and two digits are used for the 6 section codes (i.e., M11 to M61).

One of the purposes of the six-digit subclass level in NAPCS Canada 2017 is to support the RMPI and the IPPI programs. There are 1,470 subclasses at the six-digit level of NAPCS Canada version 2.0, of which 103 are included in the RMPI and 671 in the IPPI.

Hierarchical structure

The structure of the NAPCS Canada 2017 Version 2.0 variant for RMPI is hierarchical. It is composed of five levels:

• level 1: section (three-character alphanumeric codes)
• level 2: group (three-digit standard codes and four-character alphanumeric codes)
• level 3: class (five-digit standard codes and six-character alphanumeric codes)
• level 4: subclass (six-digit standard codes)
• level 5: detail (seven-digit standard codes)

Status

The variant of the North American Product Classification System (NAPCS) Canada 2017 for the Industrial Product Price Index (IPPI) was approved as a departmental standard on October 16, 2017. The new IPPI variant is based on NAPCS Canada 2017 Version 2.0, and replaces the previous IPPI variant based on NAPCS Canada 2012 Version 1.1.

Changes

The Industrial Product Price Index measures price changes for major commodities sold by manufacturers in Canada. As our economy evolves, changes in our products must be reflected in the product classification used. Subsequent to the release of the updated NAPCS Canada 2017 Version 2.0, the variant for IPPI has been updated.

Changes to any variant may originate from modifications applied to the standard classification it is based on, as well as from revisions to the structure of the variant itself.

Changes to the standard classification are described in the introduction of each new version of NAPCS Canada. NAPCS Canada 2017 Version 2.0 mainly reflects the response to the legalization of cannabis for non-medical use. Additional to those major changes, some categories were split, such as cigarettes and e-cigarettes, and others were merged, such as men’s and women’s athletic footwear. New categories were incorporated and some were deleted or transferred, such as peanut butter. More details were added to some categories, such as maple syrup products, beers, wines and ciders and battery chargers for electric automobiles, improving relevancy to statistical programs and users. The structure of the IPPI variant was not affected by most of these changes, other than the addition of a new section under P15 created for “Cannabis products (except seeds, plants, plant parts and fresh cannabis)”.

Background

In order to create a price index, price data is aggregated into distinct product classes. From the 1980s until 2013, the product classification system used by the IPPI was the Principal Commodity Groups. However, changes in the economy required periodic updates in the classification systems. Following the approval of NAPCS Canada 2012 as a departmental standard, the IPPI and the Raw Materials Price Index (RMPI) variants were approved as departmental standards on May 2013.

NAPCS is a product classification developed and updated jointly by Canada, Mexico and the United States. NAPCS Canada is the Canadian version, and has a different structure than the trilateral NAPCS (for more details, see the introduction of NAPCS Canada 2017 V2.0). NAPCS Canada has been implemented by most Statistics Canada programs that have a “product” (goods and services) dimension. As new updated versions of NAPCS Canada are created, the IPPI is also updated.

The IPPI reflects the prices that manufacturers in Canada receive as goods leave the plant gate. It excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including transportation, wholesale and retail costs.

The IPPI is produced and published together with the Raw Materials Price Index (RMPI). Both indexes are of value in analytical studies of price formation and historical comparisons. Both the IPPI and RMPI are used to calculate the real Gross Domestic Product (GDP) by industry.

The IPPI employs a regrouping variant, it introduces alternative aggregate levels by regrouping categories of NAPCS Canada, the base statistical classification. In the IPPI variant, NAPCS Canada is generally aggregated at the three-digit group level and, to a lesser extent, at the five-digit class level. The coding is alphanumeric and each variant has its own codes at the section and/or group levels. For example, in the IPPI, a letter and two digits are used for the 21 section codes (i.e., P11 to P92).

One of the purposes of the six-digit subclass level in NAPCS Canada 2017 is to support the IPPI and RMPI programs. There are 1,470 subclasses at the six-digit level of NAPCS Canada Version 2.0, of which 671 are included in the IPPI and 103 in the RMPI.

Hierarchical structure

The structure of the NAPCS Canada 2017 Version 2.0 variant for IPPI is hierarchical. It is composed of five levels.

• level 1: section (three-character alphanumeric codes)
• level 2: group (three-digit standard codes and four-character alphanumeric codes
• level 3: class (five-digit standard codes and six-character alphanumeric codes)
• level 4: subclass (six-digit standard codes)
• level 5: detail (seven-digit standard codes)