Trudeau balloons bureaucracy by 42 per cent, adds 108,000 employees

From the Canadian Taxpayers Federation

The Trudeau government’s addiction to hiring bureaucrats continues unabated.

The government added another 10,525 bureaucrats to its payroll last year, bringing the size of the federal bureaucracy up to 367,772, according to data from the Treasury Board of Canada Secretariat released July 11.

“Was there a bureaucrat shortage in Ottawa before Trudeau took over?” said Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation. “Canadians need a more efficient government, not a bloated government full of highly paid bureaucrats.”

Since Prime Minister Justin Trudeau came to power in 2015, the feds have added 108,793 new bureaucrats to the government dole – an increase of 42 per cent.

Canada’s population grew by just 14 per cent during the same time period. Had the bureaucracy only increased with population growth, there would be 72,491 fewer federal employees today.

Table: Size of federal bureaucracy, per TBS data

Year (As of March 31)	Number of federal bureaucrats
2016	258,979
2017	262,696
2018	273,571
2019	287,983
2020	300,450
2021	319,601
2022	335,957
2023	357,247
2024	367,772

It isn’t just the size of the federal bureaucracy that’s ballooning – the cost is too.

The cost of the federal payroll hit $67.4 billion in 2023, a record high, according to a report from the Parliamentary Budget Officer, Ottawa’s independent, non-partisan budget watchdog.

That’s a 68 per cent increase over 2016, when the federal payroll sat at 40.2 billion.

The Trudeau government also handed out more than one million pay raises to bureaucrats over the past four years alone, according to government records obtained by the CTF.

The government has consistently declined to reveal how much those raises cost taxpayers.

The federal government also rubberstamped more than $1.5 billion in bonuses for bureaucrats since 2015.

Meanwhile, despite the bureaucratic hiring spree, spending on consultants has also skyrocketed under the Trudeau government. Consultant spending now sits at $21.6 billion annually.

Given the rash of bonuses and pay raises, on top of spate of new hires, Canadians might wonder: how well are things running in Ottawa?

Well, the reviews are in and the results aren’t good.

Less than 50 per cent of the government’s own performance targets are consistently met by federal departments within each year, according to a March 2023 report from the PBO.

“We’ve seen an increase in the number of public servants and in public expenditures, but year after year, despite the fact that departments choose their performance indicators and the targets, they don’t seem to be getting significantly better at reaching them,” Budget Officer Yves Giroux testified to a parliamentary committee in March 2024.

The average annual compensation for full-time federal bureaucrats is $125,300, when pay, pension, and other perks are accounted for, according to the PBO.

Meanwhile, data from Statistics Canada suggests the average annual salary among all full-time workers in Canada was less than $70,000 in 2023.

“The feds have hired tens of thousands of extra bureaucrats, handed out more than one million raises and rubber stamped hundreds of million in bonuses in recent years and still can’t deliver good services,” Terrazzano said. “Any government that cares about balancing the budget must take air out of the ballooning bureaucracy.”

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Trudeau Government Capping the Canadian Economy (and Energy Industry) Just to Impress International Agencies

Published on November 7, 2024

Todayville

From EnergyNow.ca

By Kasha Piquette

The incoming Trump Presidency has promised to “unleash American energy” with plans to “free up the vast stores of liquid gold on America’s public land for energy development.” This week, the Trudeau government unveiled the draft details of its plans for a cap on greenhouse gas emissions from the Canadian oil and gas sector. These proposed regulations would cap all greenhouse gas emissions equivalent to 35 percent below levels in 2019 with the lofty goal of achieving a 40-45 percent reduction by 2030.

It is a plan that the province of Alberta and others contend would be a cap on production and cause elevated prices for consumer goods across Canada, cost up to 150,000 jobs and reduce national GDP by up to C$1 trillion ($720 billion).

These proposals would make Canada the only oil and natural gas-producing country to attempt an emissions cap on such a scale. The regulations propose to force upstream oil and gas operations to reduce emissions to 35 percent less than they were in 2019 by 2030 to 2032. Notably, while hydrocarbon production increased from 2019 to 2022, Canadian emissions from the sector declined by seven percent.

Perhaps significantly, and much to the apparent annoyance of Alberta’s Premier, the Federal announcement was made slightly ahead of the UN COP29 Climate Summit in Azerbaijan. Per the Paris Agreement, each country submits its climate ambitions to UN as National Determined Contributions (NDCs). However, the federal government has also passed the Net Zero Accountability Act, which, by December 1st, 2024, could require even more aggressive reduction targets for 2035. Does this mean that the federal government may be positioning itself to announce even more ambitious emission targets – all to be announced at that conference?

It is unclear whether, how and in what form, the emissions cap will come into effect. With the next federal election slated for late October 2025 and polls that show the current Liberal-NDP coalition government to be far behind the opposition Conservatives, the federal carbon tax and the proposed emission cap have an uncertain future.

Other business interests have voiced concerns about Canada’s increasingly discordant, incoherent climate policies and regulations, which have caused the Canadian oil and gas sector to be at a competitive disadvantage in the global energy market. Clearly, Alberta considers that the Federal government has, once again, overstepped its constitutional bounds with the proposed emissions cap and, along with its victorious Supreme Court challenge against the Impact Assessment Act, has vowed to launch more court challenges. Alberta and other Provinces have contended that, with regional exemptions, the federal carbon tax is being applied unfairly as a patchwork of standards with Alberta, New Brunswick, Saskatchewan, Ontario and Nova Scotia, and the opposition Conservative party, mounting a growing chorus against the Liberal government’s broader price on carbon. By contrast, the proposed regulations for an emissions cap have been aimed specifically at one industry sector – one that is largely concentrated in western Canada.

Meanwhile, Canadian oil production, aided by the new export capacity of the TransMountain Pipeline completed this year, has grown to a record 5.1 million barrels per day making Canada the prime (60%) source of US crude oil imports in 2023. Meanwhile, the industry has been engaged in considerations for the potential development of carbon capture and storage (CCS) to trap greenhouse gasses underground. However, this untested technology would cost billions, needs to be proven on a larger scale and requires industry cooperation combined with all levels of government support.

The Federal announcement, and the hostile reaction from Alberta and possibly other oil-producing provinces, mean that once again, Canadian investment in the oil and gas sector will be confronted with ever more uncertainty as they encounter time-consuming court challenges. These competing political agendas ensure that major Canadian investment decisions will, once again, be deferred while other international jurisdictions race to develop their hydrocarbon export capabilities, investments that are unencumbered by any emissions caps.

Canadians need to consider carefully how these policies and debates are affecting our energy security and standard of living as Canada. In addition to carbon pricing, Canada has already promulgated regulations for EV mandates in the transportation sector, policies that have required tens of billions in subsidies. It has also introduced the complex clean fuel standard and the proposed national clean electrical standards. These policies are affecting not just Canada’s productivity, GDP and exports. By attacking the Western provinces, Ottawa is unnecessarily creating regional tensions and a less politically stable federation. We need to think about how co-operative federalism can be re-established in ways that account for the basic needs of all Canadians – and not just accommodate arbitrary targets for emissions designed to impress international agencies.

Kasha Piquette is an Alberta-based strategic energy advisor and a former Deputy Minister of Alberta Environment and Protected Areas.

Economy

Ottawa’s new ‘climate disclosures’ another investment killer

Published on November 3, 2024

Todayville

From the Fraser Institute

By Matthew Lau

The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power.

According to the Trudeau government’s emissions reduction plan, “putting a price on pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions.” Fair enough, but a reasonable person might wonder why the same politicians who insist a price mechanism (i.e. carbon tax) is the most efficient policy recently announced relatively inefficient measures such “sustainable investment guidelines” and “mandatory climate disclosures” for large private companies.

The government claims that imposing mandatory climate disclosures will “attract more private capital into Canada’s largest corporations and ensure Canadian businesses can continue to effectively compete as the world races towards net-zero.” That is nonsense. How would politicians Ottawa know better than business owners about how their businesses should attract capital? If making climate disclosures were a good way to help businesses attract capital, the businesses that want to attract capital would make such disclosures voluntarily. There would be no need for a government mandate.

The government has not yet launched the regulatory process for the climate disclosures, so we don’t know exactly how onerous it will be, but one thing is for sure—the disclosures will be expensive and unnecessary, imposing useless costs onto businesses and investors without any measurable benefit, further discouraging investment in Canada. Again, if the disclosures were useful and worthwhile to investors, businesses seeking to attract investment would make them voluntarily.

Even the government’s own announcement casts doubt that increasing business investment is the likely outcome of mandatory climate disclosures. While the government says it’s “sending a clear signal to corporate boards and shareholders, at home and around the world, that Canada is their trusted partner for putting private capital to work in the race to net-zero,” most investors are not looking to put private capital to work to combat climate change. Most investors want to put their capital to work to earn a good financial return, after adjusting for the risk of the investment.

This latest announcement should come as no surprise. The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power. Capital per worker in Canada is declining due to weak business investment since 2015, and new capital per-Canadian worker in 2024 is barely half of what it is in the United States.

It’s also fair to ask, in the face of these onerous polices—where are the environmental benefits? The government says its climate disclosures are needed for Canada to progress to net-zero emissions and “uphold the Paris climate target of limiting global warming to 1.5°C above pre-industrial levels,” but its net-zero targets are neither feasible nor realistic and the economics literature does not support the 1.5 degrees target.

Finally, when announcing the new climate disclosures, Trudeau Environment Minister Steven Guilbeault said they are an important stepping stone to a cleaner economy, which is a “major economic opportunity.” Yet even the Canada Energy Regulator (a federal agency) projects net-zero policies would reduce real GDP per capita, increase inflation of consumer prices and reduce residential space (in other words, reduce living standards).

A major economic opportunity that will increase business investment? Surely not—mandatory climate disclosures will only further reduce our standard of living and impose useless costs onto business and investors, with the sure effect of reducing investment.