The Canada Revenue Agency as separate employer: Anomaly or model for the future?

In 1999, Revenue Canada became the Canada Customs and Revenue Agency (CCRA), with a governance model that combines traditional ministerial responsibility in program areas and Crown corporation governance in internal management. The greatest changes were in human resources management, where the agency became a separate employer, providing a rare opportunity to design from first principles. This article discusses the factors that led to the single most ambitious federal government “alternative service delivery” project. It then looks at the agency's governance model and the development and implementation of its human resources management regime, which sought to meet agency business requirements while responding to criticisms of the mainstream public-service model. The agency's workforce is on the scale of the larger provincial governments, and it provides extensive support to the provinces and territories, compounding the need for innovative governance and human resources management. The circumstances of moving to agency status and later reinforcements have contributed to its success and make it unlikely that the decision will be reversed, notwithstanding the later return of the Customs function to the mainstream public service. Tensions with broader public-service management objectives make it equally unlikely that the move will be replicated on a large scale. [ABSTRACT FROM AUTHOR]