Evidence of meeting #9 for Government Operations and Estimates in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was service.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Clerk of the Committee  Mr. Marc-Olivier Girard
John Gordon  National President, Executive Office, Public Service Alliance of Canada
Gary Corbett  President, Professional Institute of the Public Service of Canada
Claude Poirier  President, Canadian Association of Professional Employees
Milt Isaacs  President, Association of Canadian Financial Officers

4:30 p.m.

Liberal

Siobhan Coady Liberal St. John's South—Mount Pearl, NL

In your analysis of the budget you talked about this natural attrition that's occurring. Obviously we have demographics working in certain ways, pushing a lot more people towards retirement. I have two questions around that.

First of all, the public service increased over the last four years by about 40,000, if you use Statistics Canada figures. Are you concerned that will dwindle down now, and as you're seeing, we won't be able to replace the workers?

And second, because of the talk around pensions that has occurred, are you seeing people taking early retirement?

4:35 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

A brief response.

4:35 p.m.

President, Canadian Association of Professional Employees

Claude Poirier

I've received calls every week for a couple of months. People are asking me, “Listen, I'm turning 55. I might be eligible for early retirement. Even if I receive a lesser amount, should I leave now?” This shows you what kinds of concerns people have.

4:35 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Thank you.

We'll now go to Madame Bourgeois pour huit minutes, s'il vous plaît.

4:35 p.m.

Bloc

Diane Bourgeois Bloc Terrebonne—Blainville, QC

Thank you, Madam Chair.

Welcome, gentlemen. I am pleased that you are able to be with us today.

You have painted a rather dark picture of the impact of the spending freeze. In my opinion, the list that you provided is far from complete. We could add a lot of other points, such as health problems, stress for employees, the possibility of harassment, and so on. There are many more things that could be added.

I have been a member of this Committee and been involved in its work for several years now. Cutbacks and reorganizations within the public service in general, or among specific professional groups, are not new. Can someone tell me how many times you have been put in this kind of position as a result of budget cuts?

4:35 p.m.

President, Canadian Association of Professional Employees

Claude Poirier

I can give you a few examples. I will refer to the Translation Bureau, since that is the agency I am from. There was a wave of massive terminations or lay-offs in the middle of the 1980s. Then there was a second wave in the spring of 1991. Following that, there was a total freeze on hiring, with the result that people my age—in their late fifties, say—represent the majority. There is a total vacuum between the ages of 56 or 57 and 40; there is no one in that age group. After that, there are only very young employees. So, you can see the effect this will have on services in future.

4:35 p.m.

Bloc

Diane Bourgeois Bloc Terrebonne—Blainville, QC

Exactly, and that is the important point to be emphasized. In fact, for several years, our Committee has been told that employees are not being replaced and that new employees are not being trained, because there are staff shortages. In some departments, it often seems that change is completely random. The issue raised by the financial officers is very important in that sense.

Mr. Isaacs, your job is to provide oversight. I noticed in your presentation that you referred to the sponsorship scandal. If Chuck Guité had had a financial officer overseeing his work, do you think he would have spent as much money and done what he did?

4:35 p.m.

President, Association of Canadian Financial Officers

4:35 p.m.

Bloc

Diane Bourgeois Bloc Terrebonne—Blainville, QC

So, that means that a deputy minister who is responsible for managing his budget can make whatever choices he deems appropriate. He can decide how to use his departmental budget, if you are not around. He can do exactly what Chuck Guité did. Right?

4:35 p.m.

President, Association of Canadian Financial Officers

Milt Isaacs

Yes, I would say that management can. Anybody who has authority can, if you don't have folks there to provide oversight. It does happen. Human nature being what it is, it's interesting that when you don't have oversight this sense of entitlement starts to creep in. You start to rationalize it.

It's not just in those situations. It's important that the rules are very clear. My home province of Nova Scotia is suffering from a lack of clarity in terms of what folks are entitled to, so rules really need to be clear. But that's only part of the equation.

You also need to have folks there to ensure that those rules are followed. But one of the value propositions that a financial officer gives managers is: what are your options within the constraints of those rules? If you have financial officers who really have the experience and educational background, they can usually find the answers in an environment that's somewhat reasonable. My concern today is that we're moving to a fiscal environment that may not lend itself to financial officers finding options. You eventually run out of room.

4:40 p.m.

Bloc

Diane Bourgeois Bloc Terrebonne—Blainville, QC

A few years ago, there was an incident involving the Correctional Service of Canada. You have been around for a number of years. You may recall that there was a revolt in Kingston because budgets had been diverted to other activities, rather than being allocated to the anticipated program.

Would you say we are dealing with a potentially explosive situation? Could a deputy minister decide to completely do away with a program and spend that money on furniture? Could a deputy minister simply decide to get rid of food safety rules and regulations in his department? Could something like that happen?

4:40 p.m.

President, Association of Canadian Financial Officers

Milt Isaacs

There are rules in terms of where money can be spent. You have an operating budget, capital budgets, and there are criteria around what type of expenditure can happen. But on the situation you describe as to whether managers can decide to move money from one particular area of the program to another, the answer is absolutely they can.

4:40 p.m.

Bloc

Diane Bourgeois Bloc Terrebonne—Blainville, QC

Yes. Excellent.

Thank you, Madam Chair.

4:40 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Merci.

We now go to Mr. Holder, for eight minutes.

4:40 p.m.

Conservative

Ed Holder Conservative London West, ON

Thank you, Madam Chair.

I'd like to thank our guests for attending.

This is interesting. I think this is the largest group of representatives from different areas that I've had, and you all bring a perspective. I think you're great, very articulate advocates for your perspectives. As I've listened intently to your perspectives, there are a couple of observations from my standpoint.

The government approach is that each department will make choices related to these budget freezes. It's on the department's total budget, not specifically employment, and that will factor in retirement issues and the like. It's going to be deputy ministers who make decisions as to how best to manage their budgets, because frankly we think they're the best experts to manage their portfolio.

I think this needs to be said, and I like to say this when I have an opportunity: I think we have a great public service. I say that with great sincerity. My sense is that we have a very good record of recruitment of visible minorities. My view is that our public servants serve us well and they are exceptionally high-skilled experts, so sincere kudos.

You wouldn't have been privy to these meetings, but in past meetings we've had a couple of comments that I'd like to share. One of them was from Patricia Hassard, who is the deputy secretary to the cabinet for senior personnel and public service renewal, in the Privy Council Office. She said:

When we embarked on the renewal initiative, the underlying objective was not cost saving, but to make sure that the services and policies and programs were as high quality as possible and that the government and Canada were well served.

I would also mention that Maria Barrados, who is the president of the Public Service Commission, said:

I'm happier with this approach because it allows each department to manage the reductions, to suit their business.

I share that with you, and I have a couple of points.

Our public service grew by 4.5% last year. Our own population, as a country, grew by 0.9%--ultimately, and probably primarily, due to Canada's immigration policies. As well, we've heard from witnesses that departmental budgets have risen to $54 billion in the past few years and they are at their highest levels in a decade.

I took a quote from you, Mr. Gordon—I've never been quoted in The Hill Times, but you were—and in talking of cuts and benefit reductions, it said you were concerned it might make it difficult to attract good candidates to the public service. Interestingly, in 2008-09, which is my last statistic on this, there were 10,332 positions posted on our PSC job site. There were one million applications for those positions, so basically 100 applications per vacancy. You'd be welcome to comment on that in a moment.

Because of the limited time, I have a question I'd like to make as a broader question to all of you. You provided hypothetical or potential scenarios. I respect your concerns based on your constituencies you represent, but I want to say “potential scenarios”, if I can.

It's rather interesting—and someone made a reference to the United States—that the State of California has now introduced furlough Fridays, which are essentially forced unpaid days off for state workers. Some of you might recall there was an experience that was not dissimilar, I think, in Ontario some years back. For the record, it's not a position we would at all advocate, but there are some members of other parties who have had better experience at introducing that kind of legislation than we would.

I'd like to get your impression on whether you think that is the appropriate approach, because I'd certainly be delighted to take your strong feelings, which I suspect they would be, back to the government. If any of you would like to respond, I would certainly be interested.

Thank you.

4:45 p.m.

National President, Executive Office, Public Service Alliance of Canada

John Gordon

I certainly would never advocate the furlough Fridays, or what is commonly known as Rae days. I don't know which party that member is with these days, but the whole thing is that this is not the way to go.

We also have to remember the public service has to provide services to the public, and reductions are going to have an impact on their ability to do that. When we look at hitting the budgets of the departments, you're going to have an impact on the programs they deliver. If you have an impact on that, what comes out the other end is a service. That is going to be reduced.

These are the areas you have to look at. There are temporary help agencies throughout the government. There are millions and millions of dollars spent on those areas. You should take a look at that, and at the contracting out. There are literally hundreds of millions of dollars spent on contracting out. They should be taking a harsh look at those areas as well.

They should be looking at what the services are that we have to provide, what we are doing well, and what we are not doing well. They should be bolstering that.

Food inspection is a good example because what they did is self-regulate. They gave it to the company and said, “You look after the regulation. We'll only come by and see you every now and again.” Look what has happened there. They've really had to take a look at that and now they're picking up and trying to go back and bring inspectors into the plants. Hopefully they can cut down the troubled areas that we've seen over the past few years.

With recruitment into posts, you mentioned that a million people or more had applied for jobs. It's not only recruitment. It's recruitment and retention, which is a big part. So you may get some people to come in, but when you have a public service... And if you look at the survey results, 36% of the respondents say they rarely or never complete assigned workloads during their regular hours of work. What that tells us, and what our members tell us, is they have to put in unpaid overtime in order to complete the tasks they are doing. They are doing that because they want to get the job done.

Like you said, it's a quality public service. These workers very much respect the responsibilities they have and want to carry them out. So some of them are doing it at times when they are not being paid. They don't complain about it, but when the survey results came out they mentioned it. They say they should get some recognition for that.

4:50 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Mr. Holder, Mr. Poirier wants to respond, if you will allow him.

4:50 p.m.

Conservative

Ed Holder Conservative London West, ON

Actually I did offer that to all of the respondents. But I would say I wasn't going to use the term “Rae days” because I didn't want to attribute it to a political party. I didn't think it would be appropriate to talk about Rae days.

4:50 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

We have only 30 seconds left. Please keep your answers very brief.

Mr. Poirier, and then Mr. Corbett.

4:50 p.m.

President, Canadian Association of Professional Employees

Claude Poirier

I'd like to quickly come back to the 4.5% increase in the public service. In fact, you cannot expect to hire people on a 15-day notice and get them up to full speed right away. So what the public service has been doing in the last few years is hiring more people because guys like me will retire sooner or later--if there is still a pension then--and you need to train new economists, new analysts, new translators, and it takes time. It sometimes takes a few years to get someone up to full speed. You have to take proactive measures.

4:50 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Thank you.

Mr. Corbett, very briefly.

4:50 p.m.

President, Professional Institute of the Public Service of Canada

Gary Corbett

Yes, very briefly, the furlough Fridays and those types of approaches are regressive approaches. You need a proactive approach. For example, the National Research Council cut positions. These are supposed to be the innovators that are going to bring Canada into the global economy. If you cut positions that's not a proactive approach; that's a regressive approach, and it's bad for Canada.

4:50 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Thank you.

We will now go to Mr. Martin, for eight minutes.

4:50 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Thank you to all of you for being here.

The purpose of our study is to measure the impact of this wage freeze. It is very important that front-line people like you are here to tell us. My personal belief is you can't cut the budget without an impact on service to Canadians.

Also, just as a preface, I don't believe you can balance the budget by cutting and hacking and slashing at the public service, even though it seems to be like catnip to Conservative governments. They can't seem to stay away from this. It's a false economy of reducing the public service. A budget freeze is a budget cut, in my view.

I would like to ask you, from your expertise in your areas, to share with us, if you can, specifics of how this will in fact impact the services offered to Canadians.

April 14th, 2010 / 4:50 p.m.

National President, Executive Office, Public Service Alliance of Canada

John Gordon

There's a lot being said about taking $6.8 billion out of the budgets of departments, but add to that the fact that they have to pay for the 1.5% wage increase that was negotiated with Treasury Board out of their own budget because Treasury Board is not going to give them the money. Strategic reviews have also forced on them another 5%. If you add all those dollars up, they've got to find savings somewhere if they want to continue with the program. They either are going to cut the number of people...and even if they cut the number of people, they still have to deliver the program. So there are going to be reductions in some programs and services at the other end.

At the end of this year, when it's been in for a year, you'll probably have a better picture, but you can see it coming. If you can't see it coming now, I don't know what it will take for people to see that right now.