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Fed executive pay rises $571 million since 2015

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From the Canadian Taxpayers Federation

Author: Ryan Thorpe

Executive compensation in the federal government spiked by more than half-a-billion dollars since 2015, according to access-to-information records obtained by the Canadian Taxpayers Federation.

From 2015 to 2022, executive compensation across federal departments and agencies rose from $1.38 billion to $1.95 billion – an increase of 41 per cent. Meanwhile, the number of federal executives grew from 7,138 to 9,371 – an increase of 31 per cent.

Inflation increased by 19.4 per cent between 2015 and 2022, according to Statistics Canada data.

The average annual compensation among federal executives also rose from $193,600 to $208,480 during that period.

“Taxpayers need help with the rising cost of living, not higher taxes to pay for more highly paid paper-pushers,” said Franco Terrazzano, CTF Federal Director. “It’s a safe bet that most Canadians struggling with grocery bills, heating bills and mortgage payments aren’t losing sleep worrying that government executives aren’t paid enough, so why is the government ballooning its c-suite?”

Table: Federal executive compensation, 2015 to 2022

Year (as of March)

Number of executives

Executive compensation

2015

7,138

$1,381,987,936

2016

7,181

$1,406,613,900

2017

7,209

$1,410,973,156

2018

7,438

$1,460,468,760

2019

7,863

$1,555,972,489

2020

8,202

$1,692,682,269

2021

8,837

$1,836,893,134

2022

9,371

$1,953,667,640

The spike in federal c-suite pay follows years of underwhelming performance results across departments and agencies.

In 2022-23, federal departments hit just 50 per cent of their performance targets, according to data from the Treasury Board of Canada Secretariat. Each year from 2018 through 2021, federal departments met less than half of their performance targets.

“Less than 50 per cent of performance targets are consistently met within the same year,” according to a 2023 report from the Parliamentary Budget Officer, the government’s independent budget watchdog.

About 90 per cent of federal executives get a bonus each year, according to records obtained by the CTF. The feds handed out $202 million in bonuses in 2022, with the average bonus among executives being $18,252.

The feds handed out $1.3 billion in bonuses since 2015. The annual cost to taxpayers for federal bonuses has risen by 46 per cent during that time.

The number of employees receiving a six-figure annual salary has more than doubled under Prime Minister Justin Trudeau.

A total of 102,761 federal bureaucrats received a six-figure salary in 2022, according to access-to-information records obtained by the CTF. When Trudeau came to power in 2015, 43,424 federal bureaucrats were collecting a six-figure salary.

The feds also handed out more than 800,000 raises between 2020 and 2022. With the feds employing about 400,000 bureaucrats, that means multiple employees received more than one raise in recent years.

Under the Trudeau government, the size of the federal bureaucracy has spiked by about 40 per cent, with more than 98,000 new hires.

“In the last couple years, taxpayers have paid for tens of thousands of new bureaucrats, hundreds of thousands of pay raises and hundreds of millions in bonuses, and we’re still getting poor performance from the bureaucracy,” Terrazzano said. “Trudeau needs to take air out of the ballooning bureaucracy, and he should start by reining in the c-suite.”

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Business

Worst kept secret—red tape strangling Canada’s economy

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From the Fraser Institute

By Matthew Lau

In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.

According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.

Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.

While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.

The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industrychild caresupermarkets and many other sectors.

Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.

Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.

Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.

Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.

Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.

Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.

With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.

Matthew Lau

Adjunct Scholar, Fraser Institute
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‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`

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From LifeSiteNews

By Calvin Freiburger

The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.

The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.

Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”

The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.

The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”

PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.

“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.

“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”

Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”

Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.

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