EDITORIAL: Time to talk turkey on civil service cuts

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Asking federally funded institutions and Crown corporations to come up with their own budget cuts is like asking turkeys to plan for Thanksgiving. It won’t happen.  

Yet that’s how Prime Minister Mark Carney seeks to find $25 billion in savings across the federal budget over the next five years.  

The idea that those who manage hidebound entities, such as CBC and Canada Post, will make the changes needed to bring their organizations into the 21st century is laughable. They’ve had decades to do what needs to be done, yet they’ve persistently failed to do so.  

What chance is there that the complacent bosses at our federal agencies will cut their own bloated bonuses?  

As the Canadian Taxpayers’ Federation (CTF) reported, Canada Mortgage and Housing Corporation gave its executives $30.8 million in bonuses in 2024. According to figures obtained by CTF, that makes the total in bonuses paid to CMHC $132 million since the beginning of 2020.   

What did we get by way of results from an organization that claims on its website that its goal is “contributing to the well-being of Canada’s housing system”? We have an unprecedented housing crisis. So why are we paying bonuses?  

According to 2023/24 numbers obtained by Conservative MP Andrew Scheer, the Business Development Bank of Canada paid $59,105,600 in bonuses; Export Development Canada paid $35,632,112; Canada Mortgage and Housing Corp paid $27,328,821; CBC paid $14,902,755; and VIA Rail paid $11,391,998.  

All government departments and agencies will be required to cut 15% of their spending over the next three years as part of Carney’s plan to “spend less and invest more.”  

After the fact, Carney is admitting what Conservative Leader Pierre Poilievre said during the election — that we need to cut the civil service. Carney actually promised to add another $150 million to the CBC budget.   

His plan to have departments, agencies and Crown corporations identify their own savings is unrealistic and flawed. Fat cats who’ve larded their generous salaries with big bonuses year after year will protect their own rear ends. Instead, those delivering frontline services will bear the brunt of the cuts.  

It’s time for Carney to talk turkey and have his ministers make the decisions on where to cut the fat.