Suggest your own spending cuts, Carney government tells CBC, Via Rail and other Crown corporations
That means very little appears to be off the table under Prime Minister
Mark Carney's
plan, and it's not just the civil service facing
potential service cuts and job losses
as a result of the spending review.
Under that plan, nearly all government departments and federally-funded organizations are expected to propose 'savings' of up to 15 per cent of their spending in the next three years, nearly double what the Carney Liberals promised during the recent election campaign.
The directive comes as the federal government promises to find 'ambitious' ways to 'spend less' and 'invest more,' and as it shifts its spending priorities towards the military, after Carney recently committed to an additional $9 billion in defence spending this year and signed on to a new NATO pledge to crank up military spending by tens of billions of dollars more in the coming years.
The Treasury Board of Canada Secretariat, which reviews spending proposals of government departments, confirmed to the Star Wednesday that only few exceptions have been made for this spending review, and that Crown corporations and other federally funded institutions also have to propose their own 'savings' of up to 15 per cent.
Aside from statutory transfer payments to provinces, territories and individuals — including health-care transfers and the Canada Child Benefit — the federal government is also exempting the House of Commons and Senate, government watchdogs, the independent Courts Administration Service and the Office of the Registrar of the Supreme Court of Canada, as well as cost-recovered organizations. Treasury Board did not specify which, or how many, 'cost-recovered organizations' are exempt.
It's also given a lower savings target of two per cent to the Department of National Defence, the Canada Border Services Agency and the Royal Canadian Mounted Police.
Cabinet ministers will be responsible for reviewing the savings proposals of organizations under their portfolios.
Marie-Philippe Bouchard, the CEO of CBC/Radio-Canada, said in an email to employees Tuesday that the government has asked the public broadcaster and other Crown corporations to propose spending reductions as well, meaning CBC will have to find up to $198 million in annual savings in three years.
Reductions of this size, if implemented, would have an impact on some jobs,' Bouchard said in the internal memo, which was obtained by the Star. 'However, it is important to remember that at this point we have been asked to develop proposals only. All of the proposals will be assessed by the government and final decisions reflected in the Main Estimates for 2026-2027, made public early next year. Any necessary action would be taken only after that time.'
Bouchard's memo said the savings will be separate from the federal government's commitment during the spring election campaign to invest an additional $150 million in CBC/Radio-Canada.
The Canadian Museum of Human Rights, the National Gallery of Canada, the National Capital Commission, Statistics Canada, the Parole Board of Canada, the National Research Council of Canada and the CBC each confirmed to the Star they were tasked with proposing their own cuts to the government, although most suggested it was still too early to predict what effect that will have on their work. Via Rail, in a statement, said it has been working to identify and implement efficiencies for the past two years, and referred questions about the new proposed savings to the government.
Unions, economists and other advocates have warned that jobs and services could be slashed, while some government departments have also informed employees of potential layoffs and asked for ideas on what can be cut.
'Liberal government cuts to the public service while (U.S. President Donald) Trump threatens our workers and economy, and people face a cost-of-living crisis, are damaging and wrong,' Don Davies, the NDP's interim leader, said in a statement, urging Carney to reverse the decision and cut outside government contractors instead.
'This move is a stark reminder of Stephen Harper's Deficit Reduction Action Plan, which resulted in the elimination of tens of thousands of positions over four years, and left lasting damage to Canadians across our country.'
The government has said savings proposals are expected to target programs that are 'underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities.'
Carney has 'asked all departments to look at ways that we can save money in operations and in spending that is not directly linked to demonstrable outcomes,' said Patty Hajdu, the minister of jobs and families. 'His point is that we have to spend sort of less on the business of government and more on the outcomes that Canadians expect and the things that Canadians need.
'Obviously there's lots of speculation about what that means but it is entirely speculation,' she added.
With files from Josh Rubin
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