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Federal government’s bloated bureaucracy needs an immediate overhaul

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From the Frontier Centre for Public Policy

By David Leis

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.

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.

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Cutting Red Tape Could Help Solve Canada’s Doctor Crisis

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From the Frontier Centre for Public Policy

By Ian Madsen

Doctors waste millions of hours on useless admin. It’s enough to end Canada’s doctor shortage. Ian Madsen says slashing red tape, not just recruiting, is the fastest fix for the clogged system.

Doctors spend more time on paperwork than on patients and that’s fueling Canada’s health care wait lists

Canada doesn’t just lack doctors—it squanders the ones it has. Mountains of paperwork and pointless admin chew up tens of millions of physician hours every year, time that could erase the so-called shortage and slash wait lists if freed for patient care.

Recruiting more doctors helps, but the fastest cure for our sick system is cutting the bureaucracy that strangles the ones already here.

The Canadian Medical Association found that unnecessary non-patient work consumes millions of hours annually. That’s the equivalent of 50.5 million patient visits, enough to give every Canadian at least one appointment and likely erase the physician shortage. Meanwhile, the Canadian Institute for Health Information estimates more than six million Canadians don’t even have a family doctor. That’s roughly one in six of us.

And it’s not just patients who feel the shortage—doctors themselves are paying the price. Endless forms don’t just waste time; they drive doctors out of the profession. Burned out and frustrated, many cut their hours or leave entirely. And the foreign doctors that health authorities are trying to recruit? They might think twice once they discover how much time Canadian physicians spend on paperwork that adds nothing to patient care.

But freeing doctors from forms isn’t as simple as shredding them. Someone has to build systems that reduce, rather than add to, the workload. And that’s where things get tricky. Trimming red tape usually means more Information Technology (IT), and big software projects have a well-earned reputation for spiralling in cost.

Bent Flyvbjerg, the global guru of project disasters, and his colleagues examined more than 5,000 IT projects in a 2022 study. They found outcomes didn’t follow a neat bell curve but a “power-law” distribution, meaning costs don’t just rise steadily, they explode in a fat tail of nasty surprises as variables multiply.

Oxford University and McKinsey offered equally bleak news. Their joint study concluded: “On average, large IT projects run 45 per cent over budget and seven per cent over time while delivering 56 per cent less value than predicted.” If that sounds familiar, it should. Canada’s Phoenix federal payroll fiasco—the payroll software introduced by Ottawa that left tens of thousands of federal workers underpaid or unpaid—is a cautionary tale etched into the national memory.

The lesson isn’t to avoid technology, but to get it right. Canada can’t sidestep the digital route. The question is whether we adapt what others have built or design our own. One option is borrowing from the U.S. or U.K., where electronic health record (EHR) systems (the digital patient files used by doctors and hospitals) are already in place. Both countries have had headaches with their systems, thanks to legal and regulatory differences. But there are signs of progress.

The U.K. is experimenting with artificial intelligence to lighten the administrative load, and a joint U.K.-U.S. study gives a glimpse of what’s possible:

“… AI technologies such as Robotic Process Automation (RPA), predictive analytics, and Natural Language Processing (NLP) are transforming health care administration. RPA and AI-driven software applications are revolutionizing health care administration by automating routine tasks such as appointment scheduling, billing, and documentation. By handling repetitive, rule-based tasks with speed and accuracy, these technologies minimize errors, reduce administrative burden, and enhance overall operational efficiency.”

For patients, that could mean fewer missed referrals, faster follow-up calls and less time waiting for paperwork to clear before treatment. Still, even the best tools come with limits. Systems differ, and customization will drive up costs. But medicine is medicine, and AI tools can bridge more gaps than you might think.

Run the math. If each “freed” patient visit is worth just $20—a conservative figure for the value of a basic appointment—the payoff could hit $1 billion in a single year.

Updating costs would continue, but that’s still cheap compared to the human and financial toll of endless wait lists. Cost-sharing between provinces, Ottawa, municipalities and even doctors themselves could spread the risk. Competitive bidding, with honest budgets and realistic timelines, is non-negotiable if we want to dodge another Phoenix-sized fiasco.

The alternative—clinging to our current dysfunctional patchwork of physician information systems—isn’t really an option. It means more frustrated doctors walking away, fewer new ones coming in, and Canadians left to languish on wait lists that grow ever longer.

And that’s not health care—it’s managed decline.

Ian Madsen is a senior policy analyst at the Frontier Centre for Public Policy.

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Major Projects Office Another Case Of Liberal Political Theatre

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From the Frontier Centre for Public Policy

By Lee Harding

Ottawa’s Major Projects Office is a fix for a mess the Liberals created—where approval now hinges on politics, not merit.

They are repeating their same old tricks, dressing up political favouritism as progress instead of cutting barriers for everyone

On Sept. 11, the Prime Minister’s Office announced five projects being examined by its Major Projects Office, all with the potential to be fast-tracked for approval and to get financial help. However, no one should get too excited. This is only a bad effort at fixing what government wrecked.

During the Trudeau years, and since, the Liberals have created a regulatory environment so daunting that companies need a trump card to get anything done. That’s why the Major Projects Office (MPO) exists.

“The MPO will work to fast-track nation-building projects by streamlining regulatory assessment and approvals and helping to structure financing, in close partnership with provinces, territories, Indigenous Peoples and private investors,” explains a government press release.

Canadians must not be fooled. A better solution would be to create a regulatory and tax environment where these projects can meet market demand through private investment. We don’t have that in Canada, which is why money has fled the country and our GDP growth per capita is near zero.

Instead of this less politicized and more even-handed approach, the Liberals have found a way to make their cabinet the only gatekeepers able to usher someone past the impossible process they created. Then, having done so, they can brag about what “they” got done.

The Fraser Institute has called out this system for its potential to incentivize bribes and kickbacks. The Liberals have such a track record of handing out projects and even judicial positions to their friends that such scenarios become easier to believe. Innumerable business groups will be kissing up to the Liberals just to get anything major done.

The government has created the need for more of itself, and it is following up in every way it can. Already, the federal government has set up offices across Canada for people to apply for such projects. Really? Anyone with enough dollars to pursue a major project can fly to Ottawa to make their pitch.

No, this is as much about the show as it is about results—and probably much more. It is all too reminiscent of another big-sounding, mostly ineffective program the Liberal government rolled out in 2017. They announced a $950-million Innovation Superclusters Initiative “designed to help strengthen Canada’s most promising clusters … while positioning Canadian firms for global leadership.”

That program allowed any company in the world to participate, with winners getting matching dollars from taxpayers for their proposals. (But all for the good of Canada, we were told.) More than 50 applications were made for these sweepstakes, which included more than 1,000 businesses and 350 other participants. In Trudeau Liberal fashion, every applicant had to articulate how their proposal would increase female jobs and leadership and encourage diversity in the long term.

The entire process was like one big Dragon’s Den series. The Liberals trotted out a list of contestants full of nice-sounding possibilities, with maximum hype and minimal reality. Late in the process, Minister of Innovation, Science and Industry Navdeep Bains picked the nine finalists himself (all based in cities with a Liberal MP), from which five would be chosen.

The alleged premise was to leverage local and regional commercial clusters, but that soon proved ridiculous. The “Clean, Low-energy, Effective and Remediated Supercluster” purported to power clean growth in mining in Ontario, Quebec and Vancouver. Not to be outdone, the “Mobility Systems and Technologies for the 21st Century Supercluster” included all three of these locations, plus Atlantic Canada. They were only clustered by their tendency to vote Liberal.

Today, the MPO repeats this virtue-signalling, politicking, drawn-out, tax-dollar-spending drama. The Red Chris Mine expansion in northwest British Columbia is one of the proposals under consideration. It would be done in conjunction with the Indigenous Tahltan Nation and is supposed to reduce greenhouse gas emissions by 70 per cent. That’s right up the Liberal alley.

Meanwhile, the project is somehow part of a proposed Northwest Critical Conservation Corridor that would cordon off an area the size of Greece from development. Is this economic growth or economic prohibition? This approach is more like the United Nations’ Agenda 2030 than it is nation-building. And it is more like the World Economic Forum’s “stakeholder capitalism” approach than it is free enterprise.

At least there are two gems among the five proposals. One is to expand capacity at the Port of Montreal, and another is to expand the Canada LNG facility in Kitimat, B.C. Both have a market case and clear economic benefits.

Even here, Canadians must ask themselves, why must the government use a bulldozer to get past the red tape it created? Why not cut the tape for everyone? The Liberals deserve little credit for knocking down a door they barred themselves.

Lee Harding is a research fellow for the Frontier Centre for Public Policy.

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