An independent public policy think tank is urging the Carney government to rein in both federal spending and the size of the bureaucracy, which were significantly expanded by former prime minister Justin Trudeau.
The Montreal Economic Institute published a paper recommending that the newly elected Liberal government return to operating in a manner more akin to the Chrétien era.
“Over the course of Justin Trudeau’s tenure as prime minister, Ottawa underwent an unprecedented hiring spree,” said Renaud Brossard, vice president of communications at the MEI.
“If Prime Minister Mark Carney is serious about changing course from his predecessor, his government would be wise to draw lessons from what worked in the past.”
Carney campaigned on a promise to implement a cap on the size of Canada’s federal workforce, which increased to over 110,00o public employees under the Trudeau government, a 43 per cent increase.
The current number of bureaucrats stands at 367,772, or nine federal employees for every 1,000 citizens.
For comparison, that figure is only 7.4 in the United Kingdom and 6.2 in Germany.
“When we compare Canada’s federal bureaucracy with its international peers, we can see just how inefficiently our money is being allocated,” said Brossard.
“This represents billions of extra dollars that we wouldn’t have to spend if it weren’t for the lax governance of previous years.”
The Chrétien government dealt with ballooning deficits by launching the Program Review in 1993, which was designed to evaluate federal programs based on public need and fiscal capacity.
Following their evaluation, the program would then ultimately decide whether to retain, restructure or scrap certain bureaucratic positions.
Under Chrétien’s program, the size of the federal workforce dropped by 17.4 per cent by eliminating 42,ooo employees that were not serving the public’s best interest.
If that amount were shaved off today, it would mean a reduction of 64,000 federal employees, bringing the government back to a pre-Trudeau size on a per capita basis.
If accomplished, the MEI estimates savings of nearly $10 billion by 2029.
Federal personnel costs are currently on track to surpass last year’s $70 billion, which nearly doubles the $40 billion that bureaucrats cost Canadians in 2016-17.
According to the MEI, the bulk of this expense is financed via large deficits, with the federal government racking up a $61.9 billion deficit last year.
A figure that absolutely shattered the Liberals’ promise of not exceeding $40.1 billion.
“Chrétien’s reforms worked because they were targeted and pragmatic. His government proved that it is possible to provide essential services while tackling overspending,” said Brossard.
“All it took was a sense of urgency and a little political courage.”