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Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
Carney budget cuts could hit Indigenous communities, veterans, report warns
OTTAWA — The Carney government's plan to cut around $25 billion from the federal budget in three years could bring deep cuts to money set aside for provinces and municipalities for public services, as well as funding for Indigenous communities, veterans, newcomers, research and foreign aid, a new report warns. The analysis released Thursday from the progressive Canadian Centre for Policy Alternatives suggests such cuts could be unavoidable under the Liberal government's plans , which are nearly double what they promised during the spring election campaign, raising questions about why Prime Minister Mark Carney did not make the extent of those plans clear then. So far, no final decisions on cuts have been made yet, and the federal government has asserted that it would target programs that are 'underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities,' despite warnings that the proposal could lead to job losses and service cuts. 'Half of these 'savings' are just cuts to somebody else, right? So it's not like you are cutting your own staff or your own professional services utilization,' economist David Macdonald, the author of the report, said in an interview. 'You're just pushing the problem onto somebody else's lap, whether that's veterans for disability supports, whether that's province or municipalities, whether it's First Nations governments, and then it's their problem to make cuts to their social services or health-care programs or whatever to make up for what you cut to them.' Many government departments would have no choice but to make such cuts because the vast majority of their spending goes toward transfer payments to other levels of government or organizations, says the report, which examined the roughly $190 billion pool of funding the federal government said is under review. The findings came as Carney, who met Thursday with First Nations leaders from around the country in Gatineau for a summit on the contentious major projects law the government fast-tracked through Parliament, faces significant pushback from Indigenous groups already frustrated over the lack of consultation by the government. Cindy Woodhouse Nepinak, the national chief of the Assembly of First Nations, called on Carney to exempt transfers to First Nations from the coming federal cuts. While the government has said statutory transfers to provinces and individuals, like the Canada Health Transfer and the Canada Child Benefit, are exempt, funding for First Nations is not. In Ottawa, First Nations chiefs who gathered to protest the summit also slammed the government's proposed cuts. 'We manage poverty as leaders of our nations,' Chief Gary Lameman of Beaver Lake Cree Nation said. 'To hear that we're going to be getting more cuts to our programs is devastating.' Under the federal government's plan, which comes amid a pledge to 'spend less' and 'invest more' while committing tens of billions of dollars more to the military and cutting income taxes, nearly all government departments and federally funded organizations and Crown corporations are expected to propose 'savings' of up to 15 per cent of their spending in the next three years. Thursday's report suggests that more than half of the cuts will come from transfer payments to other levels of governments, non-profits and businesses, with one in five of the dollars cut being from money that now goes to First Nations governments for education, health care, policing and community infrastructure. Indigenous Services Canada has already warned staff that meeting its targets will impact jobs and programs, CBC has reported. Nearly $1 billion could come from income, disability and other health-care supports for veterans. Another $800 million could come from international aid, while around $500 million could come from both newcomer supports and research and science funding. Indigenous Services Minister Mandy Gull-Masty attempted to downplay those concerns on Thursday, saying it's her duty to offer the 'greatest level of service and program delivery' possible. 'For me, that means efficiency and refining that service delivery,' Gull-Masty told reporters. 'To me, that doesn't mean what I think the story is in the media right now.'
Toronto Star
6 days ago
- Business
- Toronto Star
Carney budget cuts could hit Indigenous communities, veterans, report warns
OTTAWA — The Carney government's plan to cut around $25 billion from the federal budget in three years could bring deep cuts to money set aside for provinces and municipalities for public services, as well as funding for Indigenous communities, veterans, newcomers, research and foreign aid, a new report warns. The analysis released Thursday from the progressive Canadian Centre for Policy Alternatives suggests such cuts could be unavoidable under the Liberal government's plans, which are nearly double what they promised during the spring election campaign, raising questions about why Prime Minister Mark Carney did not make the extent of those plans clear then.
7 days ago
- Business
Income inequality hit record high at start of 2025, Statistics Canada says
The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. It's not a surprise, said Katherine Scott, a senior researcher focused on gender equality and public policy at the Canadian Centre for Policy Alternatives. Scott said the current economic uncertainty is contributing to a lot of economic distress, in particular for young people seeking employment. Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it said the increase came as the highest-income households gained from investments, while the lowest-income households saw wages decline. Scott said many individuals at the higher end of the income scale didn't see their incomes decline during the pandemic, with many staying in their jobs. But more importantly, they were in a position to take advantage of the huge run-up of the investment markets that happened at that time and have continued to increase ever since, Scott said. Disposable income gap widens Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago, as their average wages edged down 0.7 per cent. The lowest-income households also saw the largest drop in net investment income as their earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group as they benefited from a 7.7 per cent increase compared with a year earlier. The highest-income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income. Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canadians' total net worth in the first quarter, averaging $3.3 million per household. The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household. Scott highlighted that following the 2008-09 recession, there was a real discussion regarding rising income inequality, which doesn't appear to be taking place currently. This kind of information, the largest gap ever, it's a wake-up call. We can't sustain it, we have to pay attention to the structure of our economy and the distribution of that, she said. We have to grow the pie, but we have to talk about the distribution of the pie. It matters that people are able to live a decent quality of life with dignity. I think that's a really important public policy goal, which seems to be lost in the current conversation.
Ottawa Citizen
14-07-2025
- Business
- Ottawa Citizen
Cap or cuts? Public servants have 40,000 reasons to worry
Public Service Confidential is a workplace advice column for federal public servants. The following question has been edited for clarity and length. Article content Article content The prime minister said he will only cap the size of the public service. The Parliamentary Budget Officer says significant cuts will be needed to achieve the Liberals' spending promises. Article content Article content So which one is it? What should we expect? Article content Inquiring and concerned minds want to know. Article content That is probably the most stressful question on the minds of public servants this summer, particularly those who are early to mid-career. Article content Let me start by saying that no one knows for sure how deep the new prime minister and his government will go with cuts to the public service in their efforts to reconcile their election promises and new spending commitments with the current tax and revenue base. Article content While they will undoubtedly have a rough idea, even the prime minister and his closest advisors likely do not have final numbers yet as the details are probably still being sorted as part of preparations for the fall budget. Article content Article content Given this, the best I can do is provide a sense of what to expect, recognizing that I, like the PBO, the Canadian Centre for Policy Alternatives, and a host of political pundits, will have to make some planning assumptions and speculate a little to answer your question. Article content Article content Here is what we know so far. Article content In their election platform, the Liberals stated that, 'A Mark Carney led government will launch a comprehensive review of government spending … [and] are committed to capping, not cutting, public service employment'. Article content It isn't clear what level the government will set its 'cap.' But what is clear is that the government's intent is to reallocate a significant amount of spending towards new priorities. Article content For those employees whose jobs will be impacted by savings measures, it will feel like a cut, regardless of how the government spins its overall 'reallocation' plan, even within the idea of a 'cap.' Article content We also know that the government's savings target is at least $28 billion. This is a cumulative number over several years. The number that matters most in the government's election platform is the $13-billion target in ongoing savings starting fiscal year 2028-29. Article content 'Ongoing' in this context means a permanent reduction in spending in current programs. This was an electoral commitment made before more recent additional spending announcements, including in defence. Article content The report from the Canadian Centre for Policy Alternatives stated that hitting these savings targets will require a 24 per cent cut to the public service. I believe this number is overstated because it is derived from a spending base of $89 billion and relies heavily on salary savings only. Article content A more accurate spending base is likely annual direct program spending, which is roughly $230-$240 billion, and includes both personnel expenditures (think salary dollars) and operating expenditures (think consultant dollars). Given this, the starting point base target of $13 billion more likely represents a 6 to 7 per cent cut in spending on current programs. Article content Article content There are currently roughly 360,000 to 370,000 federal public servants. So, a cut in program spending in the realm of 6 to 7 per cent would translate into a reduction of approximately 22,000 to 26,000 FTEs (full-time equivalents). Given new spending commitments, this is likely the minimum. Recent news reports suggest the target is 7.5 per cent to 10 per cent and higher in 2028-2029. A 10 per cent target translates closer to 40,000 FTEs or significantly more, depending on the portion of savings derived from salary. Article content I also say FTEs (not jobs) on purpose. An FTE does not represent a job cut one for one. A funded FTE can be a vacancy, where the salary budget for the FTE gets reduced, with no direct job impact on an employee. Article content Figuring out the size of the reductions, however, is only the first and easiest step. More challenging and important to the people and employees impacted by savings measures will be how the cuts get managed, and the speed with which savings must be realized. Article content Article content Once final decisions are made, public service executives and managers will have the daunting task of realizing identified savings. The rolling three-year average attrition rate in the federal government is roughly 4 per cent or 10,000-12,000 employees per year. So, even at 40,000 FTEs, a significant portion of the desired FTE savings can likely come from not staffing current vacancies and using attrition. Article content Reductions that can't be absorbed will likely result in the use of workforce adjustment to help employees find another job within growing sectors of the government or make the transition out of the public service altogether. Article content I was the lead director general for implementing the Deficit Reduction Action Plan targets at the CBSA from 2012 to 2014, under the government of then-prime minister Stephen Harper. We had to cut more than 1,000 FTEs. Article content We harvested salary savings from funded vacancies, used voluntary departures through early retirement, internally deployed staff from cut positions to vacancies, found offsets from new spending to deploy cut personnel to new jobs (where skill sets fit), and employed targeted use of workforce adjustment. In the end, the CBSA managed to realize its savings from 2012 to 2014 with fewer than 100 employees who lost their jobs involuntarily. Article content I think it's reasonable for you and many public servants to be concerned about the next federal budget and coming FTE cuts. Few people know for certain how deep the cut side of the ledger will be (as opposed to the reinvestment side of new spending under a new 'cap'). In any scenario, I would be doing you an injustice to say 'don't worry' because the net impact will be hard on people. Article content I will, however, leave you with the following advice. The real issues that will come into play are not about the numbers – the cuts will be about real people with real lives. Try to be kind, take care of yourself and colleagues to the extent you can, and have empathy with the people impacted, particularly the employees who may have to live through workforce adjustment and job loss, but also the managers and executives who must implement the savings measures. Article content I can honestly say from personal experience that it will be hard on everyone. But, as the public service has proven in the past, it will find a way to rise to the challenge. Article content
Global News
09-07-2025
- Business
- Global News
Halifax has among highest child care costs across Canadian cities: new study
See more sharing options Send this page to someone via email Share this item on Twitter Share this item via WhatsApp Share this item on Facebook A new report by a think tank says Halifax has some of the highest child care costs among major Canadian cities. The Canadian Centre for Policy Alternatives says the median fee for daycare in Halifax was $24 a day per child as of April. That puts Halifax as the sixth most expensive city for child care out of 35 major cities in the country. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Halifax's median daycare fees were more expensive than those in Toronto, Oakville, Ottawa and all other Atlantic cities studied. The think tank examined the progress provinces and territories are making on hitting the federal government's target of having child care cost an average of $10 a day. Kenya Thompson, with Child Care Now Nova Scotia, says families in the province continue to struggle to find daycare they can afford. Story continues below advertisement She says the provincial government needs to significantly invest in the child care sector to subsidize fees and ensure parents with young children remain in the workforce. This report by The Canadian Press was first published July 9, 2025.
