Frontier Centre for Public Policy
Next government MUST reduce the size of bureaucracy: Preston Manning

From the Frontier Centre for Public Policy
By David Leis
Preston Manning: “Competence and ability, not ideology, should be the core criteria for hiring civil servants”
Federal Government’s Bloated Bureaucracy Needs an Immediate Overhaul
I recently had the pleasure of speaking with the Honourable Preston Manning about the ever-growing size of Canada’s federal bureaucracy. Manning, a seasoned politician with an impressive legacy of public service, recently wrote a compelling column urging the next government to rein in the federal bureaucracy.
Our conversation highlighted the need for a strategic approach to managing the state’s size and ensuring efficient and effective government operations and democratic accountability. This issue is relevant to Canadians as the size of government in Canada continues to increase at historic levels and acts as a major impediment to our nation’s productivity, standard of living and quality of life.
The size of the state has also led to a change in our culture. Some assume that the government will do everything, which, of course, has never worked.
During our conversation, Manning highlighted the dramatic growth of the federal civil service, which has nearly doubled during the Trudeau years. This expansion, he said, poses a significant challenge for any new government trying to control this vast machinery by elected representatives. His central argument was clear: a new government must be prepared with a solid plan to manage and, where necessary, reduce the federal bureaucracy’s size to ensure its effectiveness and that it serves the needs of Canadians.
One of his primary suggestions was a return to merit-based hiring. The current emphasis on diversity, equity, and inclusion, he pointed out, sometimes comes at the expense of efficiency and effectiveness. While acknowledging the importance of a diverse workforce, Manning stressed that competence and capability, not ideology, should be the core criteria for hiring civil servants. This approach, he said, would ensure that the government is staffed by professionals who can deliver high-quality public services.
Privatization also came up as a key theme in our conversation. Manning pointed out that certain government functions could be better managed by the private sector. He said that by contracting out services that the private sector can deliver more cost-effectively, the government can reduce its size and focus on its core responsibilities. This shift would not only decrease public expenditure but also enhance the efficiency of service delivery to the public.
We also discussed the issue of federal encroachment into provincial jurisdictions and the need for it to focus on its own responsibilities, many of which are underperforming. The Trudeau government has been overstepping its constitutional boundaries in areas like healthcare, natural resources, and municipal governance. By respecting provincial jurisdictions, the federal government could reduce its role and the size of its bureaucracy while empowering those levels of government closer to the people. This decentralization would enable the provincial governments to manage their affairs more effectively, leading to a more balanced and efficient federation.
Building public support for reducing the size of the government was another crucial point in our conversation as Canadians struggle with high taxation and affordability. Survey after survey suggests a low level of trust in government as they witness high levels of deficits and debt as their standard of living continues to fall. Manning pointed out that, during the formation of the Reform Party, there was initially little public support for balancing the budget. However, through persistent efforts, public awareness and support for fiscal responsibility significantly increased. Similar efforts are needed today, he said, to educate the public about the importance of controlling government size and spending to serve Canadians better.
Our conversation also delved into the rule of law and the need for greater transparency to the public to ensure stronger accountability. Canada has one of the most secretive approaches to handling government documents in the Western world. Many documents are held indefinitely when they should be released publicly. Ironically, this secrecy has created a challenge for historians who seek to research past government decisions and can find few original documents because they are not public.
Manning also recommended periodically reviewing programs and either renewing or discontinuing them based on their effectiveness. This approach, he said, would enhance accountability and prevent the perpetuation of ineffective programs that no longer serve any purpose.
A particularly striking part of our discussion was the concept of a vertical political culture, where an elite class wields significant power, often at the expense of ordinary citizens. Manning argued that this description of elites and power is more relevant today than the traditional left-right political spectrum. The public must elect representatives committed to empowering citizens rather than perpetuating elite control, particularly within a massive, complex state bureaucracy.
Manning urged voters to ask candidates specific questions about how they plan to reduce the size of the federal civil service and manage public spending. By holding elected officials accountable, citizens can ensure that their concerns are addressed and that the government remains responsive to their needs, he said.
My discussion with Preston Manning highlighted the urgent need for strategic planning and public engagement in managing the size of Canada’s federal bureaucracy to ensure democratic control. His call for a return to merit-based hiring, increased privatization, respect for provincial jurisdictions, and greater transparency offers a roadmap for a more efficient and effective government.
As Canada faces increasing fiscal challenges and public dissatisfaction, his insights provide a timely reminder of the importance of prudent governance and active citizenship.
First published by Troy Media here. , July 3, 2024.
David Leis is the Frontier Centre for Public Policy’s vice president for development and engagement and host of the Leaders on the Frontier podcast.
Business
Canada Urgently Needs A Watchdog For Government Waste

From the Frontier Centre for Public Policy
By Ian Madsen
From overstaffed departments to subsidy giveaways, Canadians are paying a high price for government excess
Not all the Trump administration’s policies are dubious. One is very good, in theory at least: the Department of Government Efficiency. While that term could be an oxymoron, like ‘political wisdom,’ if DOGE is useful, so may be a Canadian version.
DOGE aims to identify wasteful, duplicative, unnecessary or destructive government programs and replace outdated data systems. It also seeks to lower overall costs and ensure mechanisms are in place to evaluate proposed programs for effectiveness and value for money. This can, and usually does, involve eliminating some departments and, eventually, thousands of jobs. Some new roles within DOGE may need to become permanent.
The goal in the U.S. is to lower annual operating costs and ensure that the growth in government spending is lower than in revenues. Washington’s spending has exploded in recent years. The U.S. federal deficit exceeds six per cent of gross domestic product. According to the U.S. Treasury Department, annual debt service cost is escalating unsustainably.
Canada’s latest budget deficit of $61.9 billion in fiscal 2023–24 is about two per cent of GDP, which seems minor compared to our neighbour. However, it adds to the federal debt of $1.236 trillion, about 41 per cent of our approximate $3 trillion GDP. Ottawa’s public accounts show that expenses are 17.8 per cent of GDP, up from about 14 per cent just eight years ago. Interest on the escalating debt were 10.2 per cent of revenues in the most recent fiscal year, up from just five per cent a mere two years ago.
The Canadian Taxpayers Federation (CTF) continually identifies dubious or frivolous spending and outright waste or extravagance: “$30 billion in subsidies to multinational corporations like Honda, Volkswagen, Stellantis and Northvolt. Federal corporate subsidies totalled $11.2 billion in 2022 alone. Shutting down the federal government’s seven regional development agencies would save taxpayers an estimated $1.5 billion annually.”
The CTF also noted that Ottawa hired 108,000 more staff in the past eight years at an average annual cost of over $125,000. Hiring in line with population growth would have added only 35,500, saving about $9 billion annually. The scale of waste is staggering. Canada Post, the CBC and Via Rail lose, in total, over $5 billion a year. For reference, $1 billion would buy Toyota RAV4s for over 25,600 families.
Ottawa also duplicates provincial government functions, intruding on their constitutional authority. Shifting those programs to the provinces, in health, education, environment and welfare, could save many more billions of dollars per year. Bad infrastructure decisions lead to failures such as the $33.4 billion squandered on what should have been a relatively inexpensive expansion of the Trans Mountain pipeline—a case where hiring better staff could have saved money. Terrible federal IT systems, exemplified by the $4 billion Phoenix payroll horror, are another failure. The Green Slush Fund misallocated nearly $900 million.
Ominously, the fast-growing Old Age Supplement and Guaranteed Income Security programs are unfunded, unlike the Canada Pension Plan. Their costs are already roughly equal to the deficit and could become unsustainable.
Canada is sleepwalking toward financial perdition. A Canadian version of DOGE—Canada Accountability, Efficiency and Transparency Team, or CAETT—is vital. The Auditor General Office admirably identifies waste and bad performance, but is not proactive, nor does it have enforcement powers. There is currently no mechanism to evaluate or end unnecessary programs to ensure Canadians will have a prosperous and secure future. CAETT could fill that role.
Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.
Energy
Federal Clean Power Plan Risks Blackouts And Higher Bills

From the Frontier Centre for Public Policy
Ottawa’s Clean Electricity Regulations could derail Canada’s energy future. Here’s what we need to do
The federal government’s push to make Canada’s electricity system net-zero is running straight into reality—and it’s not pretty.
Through the Clean Electricity Regulations (CER), the government wants all provinces to eliminate greenhouse gas emissions from electricity generation by 2035. It is an ambitious goal, but one that ignores a basic fact: demand for electricity is exploding, and provinces are struggling to keep up.
New technologies like artificial intelligence are supercharging this demand. AI systems, including tools such as ChatGPT, rely on massive data centres—huge warehouses of computer servers that need constant cooling and enormous amounts of electricity to function. According to a recent Royal Bank of Canada report, if all proposed data centre projects in Canada move ahead, they would consume 14 per cent of the country’s entire electricity supply by 2030. That is roughly the same as projections in the United States, where data centres are expected to use up to 15 per cent of the national total.
This is a serious problem. Provinces such as Alberta and Saskatchewan have already raised the alarm, arguing that the federal regulations overstep Ottawa’s constitutional authority. Energy supply, like natural resources, has traditionally been under provincial control. Alberta and Ontario operate their own electricity markets to attract investment and ensure reliability. Federal regulations threaten to undermine these efforts, adding risk and driving up costs.
The situation is already tense. Alberta, for example, issued multiple grid alerts in 2024 due to shortages and market disruptions. The province is now looking at “behind-the-fence” power solutions, encouraging data centres to generate their own electricity to guarantee stability.
Canada was not always in this bind. For decades, we enjoyed an abundance of clean, affordable hydroelectric power. Provinces like Quebec, British Columbia, Manitoba and Newfoundland and Labrador built massive hydro projects starting in the 1960s, creating cheap power and even surpluses to export to U.S. markets. In 2022, for example, B.C. sent 74 per cent of its exported power to the U.S., while Quebec sent 63 per cent and Ontario an impressive 81 per cent, generating billions in revenue.
But that era is coming to an end. Most of the best sites for hydro dams have already been developed. New projects would require expensive, long-distance transmission lines to bring power from remote areas to the cities that need it. On top of that, growing environmental concerns make new dam construction an uphill battle.
The truth is, there is no quick fix. A 2025 study by the Fraser Institute paints a grim picture: to meet future electricity demand solely with solar power would require 1,680 years of construction. Wind power? About 1,150 years. Even hydro would take close to a millennium. Even if we combined these sources, we are still looking at more than 1,000 years to build enough capacity.
Meanwhile, federal projections estimate that Canada’s electricity demand will double by 2050.
Without significant policy changes, Canadians could soon face the worst of both worlds: soaring electricity bills and the threat of power shortages. Our economy could also suffer as companies and data centres look to other jurisdictions with more reliable power supplies.
So what should Canada do? Here are three practical steps:
- Scrap the Clean Electricity Regulations. Provinces like Alberta and Saskatchewan are already committed to reaching net-zero by 2050. Federal interference only creates unnecessary political battles and delays investments.
- Fast-track approvals for new interprovincial transmission lines. Today, building a new transmission line can take more than a decade. Speeding up this process would help provinces share power and avoid costly overbuilding of generation capacity.
- Launch a major low-interest loan program to build new power infrastructure. We need to dramatically expand our generation and transmission systems, including natural gas-fired plants, to meet future demand.
Canadians deserve a reliable, affordable and clean energy future. But we will not get there by ignoring the realities of rising demand and provincial responsibilities. It is time for the federal government to listen to the provinces, embrace practical solutions and avoid an avoidable crisis.
Otherwise, we are on track for blackouts, higher bills and missed economic opportunities.
Maureen McCall is an energy business analyst and Fellow at the Frontier Center for Public Policy. She writes on energy issues for EnergyNow and the BOE Report. She has 20 years of experience as a business analyst for national and international energy companies in Canada.
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