The Harper government will launch a campaign this week to freeze-and-squeeze the public service, but Treasury Board President Stockwell Day says he is looking to avoid a major battle with front-line federal workers who will be most affected.
Mr. Day is scheduled today to unveil a government initiative aimed at increasing the efficiency of the federal departments – which manage activities ranging from the war in Afghanistan and relief in Haiti, to income-tax collection, employment insurance and old-age security claims.
Critics say the Conservative government is misleading voters by suggesting it can essentially eliminate the deficit in five years without causing pain to its own employees or Canadians at large. And they predict the Conservatives will turn to more aggressive program cuts when the hoped-for efficiency gains prove illusory.
The bottom line is: If you don't have people doing the work, services and programs are going to suffer — PSAC president John Gordon
“They're trying to get through the next election whenever that may be,” said Pete DeVries, a former senior official at the Department of Finance.
“And then afterwards, if they win a majority, you'll see a lot of programs just go by the wayside – and that's the hidden agenda in this.”
Mr. Day says the government is determined to protect core programs but is confident it can wring additional savings from operational budgets and through a strategic review of programs.
But he insists he's not spoiling for a fight with public-sector workers who fear the Conservatives are looking to beat up on the civil service to score points with their political base. The Public Service Alliance of Canada – which represents 166,000 employees – is urging its members to “prepare to fight back.”
“It certainly doesn't have to be that way,” Mr. Day told CTV's Question Period when asked about a looming confrontation.
“I've met with the heads of most of the public service unions and said, ‘Look, we're going to have to stay in close communication and have good discussion here.'”
He said that 13,000 federal civil servants either retire or take jobs outside government each year, so there is opportunity for attrition and to manage the budget freeze without sacrificing essential services and priority programs.
PSAC president John Gordon said the government has told departments to freeze budgets, even though unions will still get their negotiated wage increases – PSAC members get a 1.5-per-cent increase in July – pension contributions and benefits will continue to grow, and savings from an ongoing strategic review of programs will not be counted.
Mr. Gordon said he expects the government to insist on zero wage increases when PSAC's contract expires in July of 2011, and he worries the departmental budget freeze will leave critical services understaffed.
“The bottom line is: If you don't have people doing the work, services and programs are going to suffer,” Mr. Gordon said.
“So the question I would like to see the minister stand up and answer is: In which areas is he not going to deliver services to the public? They're just saying: We want to reduce the size of the public service. Well, something's got to give if you do that.”
In his budget last week, Finance Minister Jim Flaherty forecast some $2.1-billion in annual savings within two years as a result of containing the administrative cost of government and eliminating some low-priority programs. The government projects program spending that year of $115-billion, not including transfers to other levels of government and to individuals.
But Mr. DeVries notes the budget also forecasts annual economic growth, plus inflation will average 5 per cent over the next five years, so a freeze will create significant cost pressures within departments.
Former top mandarin Alex Himelfarb said the Conservatives are quietly pursuing their agenda of reducing the role of government. Over time, the across-the-broad freeze – which amounts to a cut after inflation – will limit the government's ability to act on the economy, the environment and social welfare, he said.
