Mr. Speaker, as members may recall, the government made a clear commitment to Canadians to be fiscally responsible and bring discipline to the federal budget.
We were also elected with the mandate to spend less on government operations so that we can invest more in workers, businesses, defence and nation-building infrastructure that will grow our economy and strengthen the country. As part of this effort, the government launched the comprehensive expenditure review to meet its commitment to responsible, cost-effective spending that delivers results for Canadians.
This review required federal organizations to bring forward savings proposals, to spend less on the day-to-day running of government by targeting programs and activities that are not core to their federal mandate, that are duplicative or that are not aligned with government priorities. Organizations also considered ways to work more efficiently, leveraging existing and emerging technologies, such as artificial intelligence, where it makes sense.
Budget 2025, tabled last November, presented the results of this review, which identified savings across government of $13 billion annually by 2028-29. This will include decreasing the size of the public service by approximately 16,000 full-time equivalents. It will also look to reduce 1,000 executive positions over the next two years. The reductions are being managed with fairness and compassion, relying on attrition and voluntary departures to the greatest extent possible. That is why we have the early retirement incentive.
Organizations are required to follow established workforce adjustment policies outlined in collective agreements or, in the case of executives, career transition measures. Both set out clear processes and supports for employees who may be affected.
In a workforce adjustment situation, there are specific provisions governing how this is done that are co-developed or negotiated with bargaining agents. Indeed, the government is leveraging all available tools to limit involuntary departures. This includes the proposed early retirement incentive, a program that would provide an opportunity for eligible employees to retire without a penalty for early departure.
These reductions are being carried out fairly and responsibly, in line with the government's obligations as an employer. They are part of a necessary and major “recalibration” in government spending that will redirect funds to investing in Canada. They are what this moment calls for and an investment in our future.