Latest news with #public service
ABC News
a day ago
- Business
- ABC News
As federal parliament returns, here's what was promised to ACT residents in the election
Much of the federal election campaign in the ACT was focused on the Coalition's plan for cuts to the public service. Now that Labor has been re-elected, what exactly is the party promising for Canberra over the next three years? Parliament will resume next week, but the government's commitments will not require much in the way of legislation. For the most part, it is money on the table, from new civic infrastructure to improved health services. This is not necessarily an exhaustive list, but covers the main items announced in the lead-up to the election in May. The big ticket promise — unveiled at Labor's campaign launch — was the money to build a new aquatic centre in Commonwealth Park, making way for a new national convention centre on the current Civic pool site. Federal Labor has put up $100 million, about two thirds of which will go to the pool, with the remainder set aside for feasibility and design works on the convention centre. That commitment has been matched by the territory government, after ACT Labor made it the centrepiece of its own campaign launch in September last year. At the time, Chief Minister Andrew Barr said he hoped the design work on the pool would be done by the end of 2026, with construction to commence shortly after. Since the new pool has to be finished before the existing site can be freed up, a new convention centre could still be a while away. The ACT's low bulk billing rate for GP visits was a key campaign issue, particularly when the Interchange Health Co-op went into administration. Labor pledged $3.8 million to keep it afloat, alongside $10.5 million to attract new GPs to three new bulk billing practices. The money for the ACT is on top of Labor's national commitments on Medicare, which it hopes will triple the number of fully bulk billing practices in Canberra. But while the government's national target is for 90 per cent of GP visits to be bulk billed by 2030, the ACT is unlikely to hit that figure. The party also responded to the potential closure of the Burrangiri Aged Care Respite Centre, by promising $10 million for more respite beds. Yet that commitment has become slightly less urgent since the election, with confirmation Burrangiri will stay open for another two years. Labor had also promised one of its 50 new Medicare urgent care clinics would be in Woden. Before the campaign proper kicked off, the government announced it would "finish the NBN." It pledged fibre-to-the-node connections for more than 600,000 premises by 2030, including about 97,000 in Canberra. Labor also put $3.5 million on the table for seven new crisis accommodation dwellings in the ACT, for people fleeing domestic and family violence. Later on, it offered localised commitments either side of the city: $1.5 million to upgrade Margaret Timpson Park at Belconnen; and just shy of $1 million to revitalise the Chisholm Cricket Oval.
Yahoo
4 days ago
- Business
- Yahoo
Carney's plan to cut tens of billions in spending is tough but doable, experts say
The federal government has started its comprehensive review of government spending, but what will it mean for Canada's public service, what balance will it have to strike and can the Liberals really cut so much? These are the questions facing Prime Minister Mark Carney as he embarks on one of the most ambitious public spending reviews since former prime minister Jean Chrétien and his finance minister Paul Martin balanced the budget in the 1990s. Finance Minister François-Philippe Champagne kicked off Carney's review on Monday by sending letters to fellow cabinet members, asking for "ambitious savings proposals" that will lead to spending less on the day-to-day running of government. Champagne wants to cut operational spending by 7.5 per cent for the 2026-27 fiscal year, 10 per cent the following year and 15 per cent in 2028-29. Mel Cappe, who served as clerk of the Privy Council from 1999 to 2002, a position that includes heading up the public service, said meeting those targets will be tough but doable. "There's somebody in the public who's going to be outraged by the cuts," he said. "This is going to require all ministers holding hands, saying prayers together." Carney has said that there will be no cuts to transfers to the provinces for things like health and social programs, nor would he cut individual benefits such as pensions and Old Age Security payments. Key programs rolled out by prime minister Justin Trudeau's government such as child care, pharmacare and dental care are also spared. Sahir Khan, executive vice-president at the Institute of Fiscal Studies and Democracy at the University of Ottawa, estimates that when those areas are carved out, the government is targeting a pot of money that is about $180 to $200 billion of the $570 billion it will spend this year. Watch | How much will Carney cut?: Sharon DeSousa, the national president of the Public Service Alliance of Canada (PSAC), the union representing about 240,000 government workers, said she's concerned about job losses. On CBC's Power & Politics this week, she said the cuts don't "have to be on the backs of public sector workers … there are solutions that we can actually propose." To allay those fears, the Liberal government said it plans to meet its goals by eliminating vacant positions and reallocating staff rather than laying off workers. But previous clerks of the Privy Council say it will be difficult for the government to avoid cutting staff because wages, benefits and pensions are such a large part of the operating budget. In 2023-24, excluding one-time payments like back pay made after a new collective agreement was signed, the federal government spent $65.3 billion on salaries, pensions and benefits. That was a 10 per cent increase over the previous year. "In 1995, the wage bill was so high that it was necessary to invest some money to facilitate people to leave by giving them cashouts," Cappe said. "If you are going to do that on a massive scale, you have to be prepared to see those costs up front. Because it will save you a lot of money in the long run." Michael Wernick — the clerk of the Privy Council from 2016 to 2019 — told CBC News that relying on attrition "doesn't make any sense as a management strategy." "What happens if your absolute key cybersecurity expert retires next week? You're not going to replace her?" he said. "If your aspiration is a serious compression of the numbers, then you have to be more mindful about it and you have to do layoffs and buyouts." One of the ways the prime minister has said his government will cut operating expenses is by looking for ways to employ artificial intelligence and automation. Wernick says that approach will require investment in training and technology and that, like buyouts for public servants, comes with an upfront cost. But both former clerks say the Liberal government can hit its targets and they have a suggestion for how it can be done. "Stop doing some things, rather than an across-the-board cut," Cappe said. By going this route, staff no longer carrying out a given function can be moved to work on other government priorities. Wernick says cutting entire lines of business also prevents spending from creeping back up. "If you don't kill the program entirely, the pressure to restore it will come in almost immediately from the clients, from the mayors, from the caucus," Wernick said. Donald Savoie, an expert in public administration and governance at the Université de Moncton, said the government can be downsized without hurting service delivery. "Let's look at programs that we don't need anymore, let's look at organizations that we don't need anymore," Savoie said. He said there is also room to cut the use of consultants and outside contractors, but Wernick warned doing so would cut off access to expertise. That can be mitigated, he said, by training public servants — but that comes with an upfront cost. Savoie said Carney has two things in common with Chrétien that bode well for his cost-cutting ambitions. The first is that unlike Brian Mulroney, Stephen Harper and Trudeau, both Carney and Chrétien had experience working in government well before securing the country's highest office. Savoie said that means Carney, like Chrétien before him, knows which levers to pull. The other thing both men share is a mandate to respond to a national crisis. In the 1990s, Canada's federal debt was so large compared to the economy that a third of every dollar collected in tax went just to service its interest payments. "I think what helped Chrétien immensely in 1994-95 is Canadians were seized with a real crisis," Savoie said. "So Canadians said: 'we got a problem' and so [Chrétien] could draw on public support. And in the same vein, Carney can draw on public support because Canadians see that dealing with Trump, dealing with tariffs, is very tough and some tough decisions have to be taken." For that reason, Savoie said, Canadians will be much more open to suffering through cuts then they were five to 10 years ago, which may be just enough political licence for the expenditure review to bear fruit.
CBC
4 days ago
- Business
- CBC
Carney's plan to cut tens of billions in spending is tough but doable, experts say
The federal government has started its comprehensive review of government spending, but what will it mean for Canada's public service, what balance will it have to strike and can the Liberals really cut so much? These are the questions facing Prime Minister Mark Carney as he embarks on one of the most ambitious public spending reviews since former prime minister Jean Chrétien and his finance minister Paul Martin balanced the budget in the 1990s. Finance Minister François-Philippe Champagne kicked off Carney's review on Monday by sending letters to fellow cabinet members, asking for "ambitious savings proposals" that will lead to spending less on the day-to-day running of government. Champagne wants to cut operational spending by 7.5 per cent for the 2026-27 fiscal year, 10 per cent the following year and 15 per cent in 2028-29. Mel Cappe, who served as clerk of the Privy Council from 1999 to 2002, a position that includes heading up the public service, said meeting those targets will be tough but doable. "There's somebody in the public who's going to be outraged by the cuts," he said. "This is going to require all ministers holding hands, saying prayers together." Carney has said that there will be no cuts to transfers to the provinces for things like health and social programs, nor would he cut individual benefits such as pensions and Old Age Security payments. Key programs rolled out by prime minister Justin Trudeau's government such as child care, pharmacare and dental care are also spared. Sahir Khan, executive vice-president at the Institute of Fiscal Studies and Democracy at the University of Ottawa, estimates that when those areas are carved out, the government is targeting a pot of money that is about $180 to $200 billion of the $570 billion it will spend this year. Watch | How much will Carney cut?: How much federal spending is Carney looking to cut? 2 days ago Duration 12:36 Prime Minister Mark Carney's cabinet has been tasked with finding 'ambitious savings,' aiming for a 7.5 per cent cut in federal spending next year and further cuts in the following years. Power & Politics asks Sahir Khan, executive vice-president at the Institute of Fiscal Studies and Democracy and former assistant parliamentary budget officer, where those cuts could come from. Sharon DeSousa, the national president of the Public Service Alliance of Canada (PSAC), the union representing about 240,000 government workers, said she's concerned about job losses. On CBC's Power & Politics this week, she said the cuts don't "have to be on the backs of public sector workers … there are solutions that we can actually propose." To allay those fears, the Liberal government said it plans to meet its goals by eliminating vacant positions and reallocating staff rather than laying off workers. But previous clerks of the Privy Council say it will be difficult for the government to avoid cutting staff because wages, benefits and pensions are such a large part of the operating budget. Leaning on attrition In 2023-24, excluding one-time payments like back pay made after a new collective agreement was signed, the federal government spent $65.3 billion on salaries, pensions and benefits. That was a 10 per cent increase over the previous year. "In 1995, the wage bill was so high that it was necessary to invest some money to facilitate people to leave by giving them cashouts," Cappe said. "If you are going to do that on a massive scale, you have to be prepared to see those costs up front. Because it will save you a lot of money in the long run." Michael Wernick — the clerk of the Privy Council from 2016 to 2019 — told CBC News that relying on attrition "doesn't make any sense as a management strategy." "What happens if your absolute key cybersecurity expert retires next week? You're not going to replace her?" he said. "If your aspiration is a serious compression of the numbers, then you have to be more mindful about it and you have to do layoffs and buyouts." Where you cut — rather than how much One of the ways the prime minister has said his government will cut operating expenses is by looking for ways to employ artificial intelligence and automation. Wernick says that approach will require investment in training and technology and that, like buyouts for public servants, comes with an upfront cost. But both former clerks say the Liberal government can hit its targets and they have a suggestion for how it can be done. "Stop doing some things, rather than an across-the-board cut," Cappe said. By going this route, staff no longer carrying out a given function can be moved to work on other government priorities. Wernick says cutting entire lines of business also prevents spending from creeping back up. "If you don't kill the program entirely, the pressure to restore it will come in almost immediately from the clients, from the mayors, from the caucus," Wernick said. Donald Savoie, an expert in public administration and governance at the Université de Moncton, said the government can be downsized without hurting service delivery. "Let's look at programs that we don't need anymore, let's look at organizations that we don't need anymore," Savoie said. He said there is also room to cut the use of consultants and outside contractors, but Wernick warned doing so would cut off access to expertise. That can be mitigated, he said, by training public servants — but that comes with an upfront cost. Trying to emulate Chrétien and Martin's fiscal success Savoie said Carney has two things in common with Chrétien that bode well for his cost-cutting ambitions. The first is that unlike Brian Mulroney, Stephen Harper and Trudeau, both Carney and Chrétien had experience working in government well before securing the country's highest office. Savoie said that means Carney, like Chrétien before him, knows which levers to pull. The other thing both men share is a mandate to respond to a national crisis. In the 1990s, Canada's federal debt was so large compared to the economy that a third of every dollar collected in tax went just to service its interest payments. "I think what helped Chrétien immensely in 1994-95 is Canadians were seized with a real crisis," Savoie said. "So Canadians said: 'we got a problem' and so [Chrétien] could draw on public support. And in the same vein, Carney can draw on public support because Canadians see that dealing with Trump, dealing with tariffs, is very tough and some tough decisions have to be taken." For that reason, Savoie said, Canadians will be much more open to suffering through cuts then they were five to 10 years ago, which may be just enough political licence for the expenditure review to bear fruit.
CBC
6 days ago
- Business
- CBC
Halifax's top bureaucrat says she is retiring
Halifax's chief administrative officer has told council she intends to retire, a move that comes after a tenure of less than three years as the municipality's top bureaucrat. In an interview, Cathie O'Toole said the job of CAO is a rewarding but demanding one. While she has enjoyed the work, she said she has "paid my dues" in municipal public service. She said she will likely leave in October, about mid-way into her five-year contract. Her impending departure comes as Mayor Andy Fillmore publicly stated this week he is concerned about how much power within the municipal operation is "concentrated with an unelected CAO." The mayor said he believes changes to Halifax's governance system are needed and he has had informal discussions with the provincial government about greater mayoral powers. O'Toole said the "strong mayors" discussion was not a reason for her retirement decision. She said she has a good working relationship with the mayor and has been considering retirement since April. She started in her role as CAO in January 2023, after a four-year stint as the general manager of the municipally owned utility Halifax Water. She has also served as the director of finance for the municipality. In a letter to municipal employees sent Wednesday night, she said: "What stands out for me most are the instances of extraordinary pressure and teamwork where Halifax and Halifax Water employees have risen to the challenge, and also some of the innovative changes that have been made to service delivery over the years to the benefit of the residents we serve."
