The Liberals' 2021 election platform did not include a timeline for eliminating the deficit, nor did Finance Minister Chrystia Freelands December fiscal update.GEOFF ROBINS/AFP/Getty Images
Federal government spending on outsourcing contracts has increased by more than 40 per cent since the Liberals took power, a trend at odds with the partys 2015 campaign promise to cut back on the use of consultants.
A Globe and Mail analysis of federal records shows Ottawa spent $11.8-billion in the 2020-21 fiscal year on contracts. That represents a 41.8-per-cent increase from the $8.4-billion spent in the 2015-16 fiscal year, when Prime Minister Justin Trudeaus Liberal government was first elected.
Ottawa turns to consulting firm McKinsey to fix Phoenix pay system, doubling spending
The Globes analysis examined the latest available data in the governments public accounts related to spending on outside contracts in the category of professional and special services.
This category includes things such as management consulting services, legal services, IT services, temporary help and security guards.
The growth in outsourcing has not coincided with a smaller public service. The number of federal government workers increased from 257,034 to 319,601 between 2015 and 2021, a 24 per cent rise.
Queens University economist Don Drummond, who has held senior federal government roles and who once led a spending review for the Ontario government, said outsourcing can be effective and efficient when it involves bringing in specialized expertise that isnt available in the civil service.
However, it is concerning that both contract and bureaucracy costs have risen sharply, he said. To a degree, this might be related to the extraordinary increase in federal government activities flowing from COVID. But the situation calls for careful analysis that more and more inputs are not being thrown into producing about the same service. That would indicate a deterioration in effectiveness and efficiency.
The 2015 Liberal platform pledged to free up $3-billion a year through a spending review, which it said would include reducing the use of external consultants.
The increased spending on contracts continues a trend identified in a January, 2020, report by the Professional Institute of the Public Service of Canada (PIPSC), a union that primarily represents scientists and professionals in the federal public service. That report focused more narrowly on service contracts in the areas of management consulting, temporary help and IT consultants.
The report notes that spending on IT consultants and management consultants more than doubled between 2011 and 2018.
Rather than Public Accounts data, the PIPSC analysis was based on the governments disclosure of federal contracts, which is subject to frequent revisions as the terms of contracts are posted and adjusted. The union told The Globe its approach allowed for a more targeted look at the outsourcing of personnel spending, given that the Public Accounts data can include other costs, such as fees for software.
The unions report points to the problem-plagued Phoenix pay system as an example of outsourcing gone wrong.
Phoenix was designed under the previous Conservative government through an outsourcing arrangement with IBM. The Liberal government launched the system in 2016. Phoenix has since caused frequent errors that have left workers unpaid, underpaid or overpaid, resulting in widespread disruptions and distress throughout the public service.
The Globe reported in December that the government has paid $560-million in damages so far to public servants as a result of the Phoenix problems. The cost of compensation is approaching twice the $309-million spent by the federal government between 2009 and 2016 to develop the system, which was supposed to generate long-term savings.
The PIPSC analysis highlighted a common practice in which the government initially awards a contract to a company at a relatively low cost following a public competition. Then the value of the contract is increased substantially through amendments. The PIPSC analysis found that IT contracts generally end up costing more than twice what the government originally expected.
In an interview, PIPSC president Jennifer Carr said the growth in outsourcing is creating a shadow public service that works alongside public servants, but is not subject to the same rules in areas like language requirements, employment equity and diversity.
Ms. Carr said outsourcing should focus on short-term needs and allow for the long-term work to be handled by the public service, but she said that often does not happen.
Its not in the best interests of the contractor to give any of that information up to the public service, because basically they would be consulting themselves out of their own job, she said.
Because these contracts are reopened multiple times They wind up ballooning from small amounts to almost triple or quadruple the cost, and its really hard to track the final value of the real cost of the contract because of the reopening.
Isabella Brisson, a spokesperson for Treasury Board president Mona Fortier, defended Ottawas outsourcing approach.
The procurement of professional services is needed to acquire special expertise, and to meet unexpected fluctuations in workload, she said in a statement. Shortages in certain employment groups and specific geographic locations make the use of external professional services necessary to maintain operations. For example, nurses are hired through this mechanism to deliver temporary health care in Northern Canada.
The statement also noted that departments are required to exercise due diligence and effective stewardship of public funds and that all contracts must be issued in accordance with Treasury Board rules.
From a government-wide perspective, the Liberals had been falling behind their own deficit-reduction projections prior to the COVID-19 pandemic. The deficit then grew dramatically as the pandemic led to reduced tax revenue, and to increased emergency spending to support Canadian workers and businesses.
The 2015 Liberal platform promised that the party would run three years of deficits of no more than $10-billion before balancing the governments books in 2019-20.
Instead, the Liberal government posted deficits of $19-billion in 2016-17, $19-billion in 2017-18, $14-billion in 2018-19, $39.3-billion in 2019-20 and $327.7-billion in 2020-21.
The Liberal Partys 2021 election platform did not include a timeline for eliminating the deficit, nor did Finance Minister Chrystia Freelands December fiscal update. That update did estimate the size of the deficit would decline to $13.1-billion by 2026-27, though those bottom-line projections do not take into account the billions in new spending promised in the 2021 platform. Updates on that spending are expected in Ms. Freelands 2022 budget.
For subscribers: Get exclusive political news and analysis by signing up for the Politics Briefing.
Read more from the original source:
Liberals spend billions more on outsourced contracts since taking power - The Globe and Mail
- Fox News Anchor Comes Unglued, Berates 'Dumb' Liberal Colleague - The Daily Beast - April 27th, 2024 [April 27th, 2024]
- Mathew Chandy '24, College of Liberal Arts and Sciences - UConn Today - University of Connecticut - April 27th, 2024 [April 27th, 2024]
- Will No One Rid Me Of These Meddlesome -Isms: Thinking and Rethinking Liberalism - Front Porch Republic - April 27th, 2024 [April 27th, 2024]
- Why market demand doesn't capture the value of the liberal arts | Letters - Tampa Bay Times - April 27th, 2024 [April 27th, 2024]
- See what the students were wearing for the School of Liberal Studies at Savannah High prom - Savannah Morning News - April 27th, 2024 [April 27th, 2024]
- Is a $330000 liberal arts education still 'worth it?' - Los Angeles Loyolan - April 27th, 2024 [April 27th, 2024]
- Judge installed by liberal Democrats over centrist Hochul pick responsible for Harvey Weinstein ruling - New York Post - April 27th, 2024 [April 27th, 2024]
- Liberal Cities, Conservative Towns Seek Supreme Court's Help on Homelessness - The Wall Street Journal - April 27th, 2024 [April 27th, 2024]
- Luke Grimes on Yellowstones liberal critics: A lot of people see a cowboy hat and think, thats not for me - The Independent - April 27th, 2024 [April 27th, 2024]
- Liberal pundits really do have weekly meetings to 'shape' message on Trump - Washington Times - April 27th, 2024 [April 27th, 2024]
- Trump slams 'Bidenomics' ahead of court, claims to have a 'good chance' of winning liberal state - Fox News - April 27th, 2024 [April 27th, 2024]
- Ones a Conservative, Ones a Liberal. Heres Their Secret to Friendship. - InsideHook - April 27th, 2024 [April 27th, 2024]
- Bill Cotterell: What? NPR is liberal? Say it ain't so - Tallahassee Democrat - April 27th, 2024 [April 27th, 2024]
- Orban: Hungary is island in the European progressive liberal ocean - bne IntelliNews - April 27th, 2024 [April 27th, 2024]
- NY Times keeps spotlight on NPR crisis on heels of Uri Berliner blowing whistle on liberal bias - Fox News - April 27th, 2024 [April 27th, 2024]
- CPAC Hungary: ex Polish PM Morawiecki warns of "destructive ideas of liberal elites" - Notes From Poland - April 27th, 2024 [April 27th, 2024]
- The biggest threat to freedom in the West is liberalism itself - The New Statesman - April 27th, 2024 [April 27th, 2024]
- Letter: NPR Editor Berliner reveals liberal bias of network - Arizona Daily Star - April 27th, 2024 [April 27th, 2024]
- Chicago native says residents livid over liberal mayor's new migrant funding, ready to vote for Trump - Fox News - April 27th, 2024 [April 27th, 2024]
- Ontario Liberal leader says Dresden landfill project could be nixed with 'stroke of a pen' - The Chatham Daily News - April 27th, 2024 [April 27th, 2024]
- Opinion: The Liberals' immigration policies have accomplished the opposite of what was intended - The Globe and Mail - April 27th, 2024 [April 27th, 2024]
- At Issue | Was the Liberal budget a bust with Canadians? - CBC.ca - April 27th, 2024 [April 27th, 2024]
- Have the Liberal Arts Gone Conservative? - The New Yorker - March 12th, 2024 [March 12th, 2024]
- Letters to the Editor: 'I see myself in Katie Britt' what liberal critics missed in the senator's response - Los Angeles Times - March 12th, 2024 [March 12th, 2024]
- Even when it criticizes Israel, the liberal world is not against us - opinion - The Jerusalem Post - March 12th, 2024 [March 12th, 2024]
- Former Trump Aide Alyssa Farah Griffin Becomes a Liberal Favorite - The New York Times - March 12th, 2024 [March 12th, 2024]
- Renowned author, liberal arts proponent to deliver annual Lester Lectures - Mercer University - March 12th, 2024 [March 12th, 2024]
- NYU to Host Zaheer Ali at the Annual Liberal Studies Student Research ColloquiumApril 5 - NYU - March 12th, 2024 [March 12th, 2024]
- Power to the Neighborhoods!: New York City Growth Politics, Neighborhood Liberalism, and the Origins of the ... - Joint Center for Housing Studies - March 12th, 2024 [March 12th, 2024]
- Canada's Conservatives back NDP-Liberal anti-scab legislation that undermines the right to strike - WSWS - March 12th, 2024 [March 12th, 2024]
- The Surprising Left-Right Alliance That Wants More Apartments in Suburbs - The New York Times - March 12th, 2024 [March 12th, 2024]
- PARKER: Clarence Thomas, liberal racism and the ongoing denigration of Black conservatives - Kankakee Daily Journal - March 12th, 2024 [March 12th, 2024]
- Liberal Media Scream: Hollywoods freaks over Trump - Washington Examiner - March 12th, 2024 [March 12th, 2024]
- Why liberals failed in the fight against antisemitism - JNS.org - March 12th, 2024 [March 12th, 2024]
- Liberal Renew manifesto sneak peek and bits from Bucharest congress - EURACTIV - March 12th, 2024 [March 12th, 2024]
- Katie Britt calls on liberal media 'to pay attention' to border - 1819 News - March 12th, 2024 [March 12th, 2024]
- Liberal truck wash cited $171k for OSHA violations - KSN-TV - March 12th, 2024 [March 12th, 2024]
- Over 30,000 Killed in Gaza, but Even Israel's 'Liberal Left' Says: That's War - Opinion - Haaretz - March 12th, 2024 [March 12th, 2024]
- Liberal Man Injured in Beaver County Accident - KSCB News.net - March 12th, 2024 [March 12th, 2024]
- What is the Market's View on China Liberal Education Holdings Ltd (CLEU) Stock's Price and Volume Trends Monday? - InvestorsObserver - March 12th, 2024 [March 12th, 2024]
- German liberals send defence expert into tripartite EU election leadership team - EURACTIV - March 12th, 2024 [March 12th, 2024]
- Ramaswamy warns liberal justices 'buying political latitude' with 9-0 ruling as more Trump cases lie ahead - Fox News - March 12th, 2024 [March 12th, 2024]
- How much of this is propelled by white liberal guilt from executives?: Gutfeld - Fox News - March 12th, 2024 [March 12th, 2024]
- Liberals and the Libel of Christian Nationalism - The Imaginative Conservative - March 12th, 2024 [March 12th, 2024]
- Liberal Arts & Science Academy - Austin extends home winning streak to seven - MaxPreps - March 12th, 2024 [March 12th, 2024]
- Liberal Racism and the Denigration of Black Conservatives - Daily Signal - March 12th, 2024 [March 12th, 2024]
- Watchdog group exposes radical, liberal ideology of school-based health centers - The Lion - March 12th, 2024 [March 12th, 2024]
- What happens when a liberal learns her family owned slaves? - Leader & Times - February 11th, 2024 [February 11th, 2024]
- Is it Liberal Arts, Without the Arts? - Xavier Newswire - February 11th, 2024 [February 11th, 2024]
- Quebec Liberal Party would be more popular with Denis Coderre at the helm: poll - Montreal Gazette - February 11th, 2024 [February 11th, 2024]
- Maine's Liberal Members of Congress Stand by Biden After Disastrous, Confused Press Conference - The Maine Wire - February 11th, 2024 [February 11th, 2024]
- Liberal Media Scream: Kristen Welker likes to lecture Republicans, too - Washington Examiner - February 11th, 2024 [February 11th, 2024]
- Australia's only Liberal government lives on - for now - Yahoo News Australia - February 11th, 2024 [February 11th, 2024]
- Liberal institutions are the threat to liberal institutions Claudine Gay is warning about - Washington Examiner - January 10th, 2024 [January 10th, 2024]
- Elon Musk, the "free speech absolutist" kicks liberal journalists off Twitter - Daily Kos - January 10th, 2024 [January 10th, 2024]
- Liberal Arts and studies in humanities under attack on college campuses - The Community Word - January 10th, 2024 [January 10th, 2024]
- Liberal candidate for federal byelection planned to run for Conservatives last year - National Post - January 10th, 2024 [January 10th, 2024]
- Bill Barton: 'The Liberal by the Bay' - Redheaded Blackbelt - December 7th, 2023 [December 7th, 2023]
- OPINION | Female-dominated liberal arts imperative in male-dominated tech world - Tulane Hullabaloo - December 7th, 2023 [December 7th, 2023]
- Dean of the College of Liberal and Fine Arts job with Tarleton State University | 37572379 - The Chronicle of Higher Education - December 7th, 2023 [December 7th, 2023]
- Laughing Stock: 'A liberal agenda' may not be what you think - Tucson Weekly - December 7th, 2023 [December 7th, 2023]
- Justin Trudeau plays the Trump card - POLITICO - POLITICO - December 7th, 2023 [December 7th, 2023]
- Norman Lear, Producer Of TV's 'All In The Family' And Influential Liberal Advocate, Dies At 101 - Newstalk 750 - 103.7 ... - KFQD - December 7th, 2023 [December 7th, 2023]
- Kremlin Taps Liberal Businessman to Oppose Putin in 2024 Election Report - The Moscow Times - December 7th, 2023 [December 7th, 2023]
- Norman Lear, producer of TV's 'All in the Family' and influential liberal advocate, has died at 101 - WV News - December 7th, 2023 [December 7th, 2023]
- MoveOn Carries Out Layoffs as Liberal Groups Struggle to Raise Money - The New York Times - December 7th, 2023 [December 7th, 2023]
- Norman Lear, producer of TV's 'All in the Family' and influential liberal advocate, has died at 101 - El Paso Inc. - December 7th, 2023 [December 7th, 2023]
- UW System President suggests universities with high numbers of low income students should shift away from liberal arts - Wisconsin Examiner - December 7th, 2023 [December 7th, 2023]
- Norman Lear, producer of TV's 'All in the Family' and influential liberal advocate, has died at 101 - The Caledonian-Record - December 7th, 2023 [December 7th, 2023]
- Israels representative in New York resigned to protest Netanyahu. Now hes got some tough words for liberal New York Jews. - Forward - December 7th, 2023 [December 7th, 2023]
- Neal Milner: Watch That Swinging Door, Liberals, Lest It Hit You On The Way Out - Honolulu Civil Beat - December 7th, 2023 [December 7th, 2023]
- The Liberal Answer to Cancel Culture - Manhattan Institute - November 8th, 2023 [November 8th, 2023]
- Study: Liberal US priests facing 'progressive' extinction - The Pillar - November 8th, 2023 [November 8th, 2023]
- Liberal Jewish U.S. Groups Are Walking an Oh-So-Thin Tightrope - The New Republic - November 8th, 2023 [November 8th, 2023]
- Why a liberal arts degree is often a ticket to career success - USC Dornsife College of Letters, Arts and Sciences - November 8th, 2023 [November 8th, 2023]
- Open Forum: In their time, founding fathers were liberal - The Winchester Star - November 8th, 2023 [November 8th, 2023]
- Liberals announce National Campaign Committee Co-Chairs - Liberal Party of Canada - November 8th, 2023 [November 8th, 2023]
- UT College of Liberal Arts hosts panel about Senate Bill 17 - The Daily Texan - November 8th, 2023 [November 8th, 2023]
- Liberal Arts student uses platform to educate others on the ... - Pennsylvania State University - November 8th, 2023 [November 8th, 2023]
- Stanford celebrates 50 years of Structured Liberal Education ... - Stanford University News - November 8th, 2023 [November 8th, 2023]