Frontier Centre for Public Policy
Federal government’s bloated bureaucracy needs an immediate overhaul

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.
Carbon Tax
Canada’s Carbon Tax Is A Disaster For Our Economy And Oil Industry

From the Frontier Centre for Public Policy
By Lee Harding
Lee Harding exposes the truth behind Canada’s sky-high carbon tax—one that’s hurting our oil industry and driving businesses away. With foreign oil paying next to nothing, Harding argues this policy is putting Canada at a major economic disadvantage. It’s time to rethink this costly approach.
Our sky-high carbon tax places Canadian businesses at a huge disadvantage and is pushing investment overseas
No carbon tax will ever satisfy global-warming advocates, but by most measures, Canada’s carbon tax is already too high.
This unfortunate reality was brought to light by Resource Works, a B.C.-based non-profit research and advocacy organization. In March, one of their papers outlined the disproportionate and damaging effects of Canada’s carbon taxes.
The study found that the average carbon tax among the top 20 oil-exporting nations, excluding Canada, was $0.70 per tonne of carbon emissions in fiscal 2023. With Canada included, that average jumps to $6.77 per tonne.
At least Canada demands the same standards for foreign producers as it does for domestic ones, right? Wrong.
Most of Canada’s oil imports come from the U.S., Saudi Arabia, and Nigeria, none of which impose a carbon tax. Only 2.8 per cent of Canada’s oil imports come from the modestly carbon-taxing countries of the U.K. and Colombia.
Canada’s federal consumer carbon tax was $80 per tonne, set to reach $170 by 2030, until Prime Minister Mark Carney reduced it to zero on March 14. However, parallel carbon taxes on industry remain in place and continue to rise.
Resource Works estimates Canada’s effective carbon tax at $58.94 per tonne for fiscal 2023, while foreign oil entering Canada had an effective tax of just $0.30 per tonne.
“This results in a 196-fold disparity, effectively functioning as a domestic tariff against Canadian oil production,” the research memo notes. Forget Donald Trump—Ottawa undermines our country more effectively than anyone else.
Canada is responsible for 1.5 per cent of global CO2 emissions, but the study estimates that Canada paid one-third of all carbon taxes in 2023. Mexico, with nearly the same emissions, paid just $3 billion in carbon taxes for 2023-24, far less than Canada’s $44 billion.
Resource Works also calculated that Canada alone raised the global per-tonne carbon tax average from $1.63 to $2.44. To be Canadian is to be heavily taxed.
Historically, the Canadian dollar and oil and gas investment in Canada tracked the global price of oil, but not anymore. A disconnect began in 2016 when the Trudeau government cancelled the Northern Gateway pipeline and banned tanker traffic on B.C.’s north coast.
The carbon tax was introduced in 2019 at $15 per tonne, a rate that increased annually until this year. The study argues this “economic burden,” not shared by the rest of the world, has placed Canada at “a competitive disadvantage by accelerating capital flight and reinforcing economic headwinds.”
This “erosion of energy-sector investment” has broader economic consequences, including trade balance pressures and increased exchange rate volatility.
According to NASA, Canadian forest fires released 640 million metric tonnes of carbon in 2023, four times the amount from fossil fuel emissions. We should focus on fighting fires, not penalizing our fossil fuel industry.
Carney praised Canada’s carbon tax approach in his 2021 book Value(s), raising questions about how long his reprieve will last. He has suggested raising carbon taxes on industry, which would worsen Canada’s competitive disadvantage.
In contrast, Conservative leader Pierre Poilievre argued that extracting and exporting Canadian oil and gas could displace higher-carbon-emitting energy sources elsewhere, helping to reduce global emissions.
This approach makes more sense than imposing disproportionately high tax burdens on Canadians. Taxes won’t save the world.
Lee Harding is a research fellow for the Frontier Centre for Public Policy.
armed forces
Canada’s Military Can’t Be Fixed With Cash Alone

From the Frontier Centre for Public Policy
By Lt. Gen. (Ret.) Michel Maisonneuve
Canada’s military is broken, and unless Ottawa backs its spending with real reform, we’re just playing politics with national security
Prime Minister Mark Carney’s surprise pledge to meet NATO’s defence spending target is long overdue, but without real reform, leadership and a shift away from bureaucracy and social experimentation, it risks falling short of what the moment demands.
Canada committed in 2014 to spend two per cent of its gross national product on defence—a NATO target meant to ensure collective security and more equitable burden-sharing. We never made it past 1.37 per cent, drawing criticism from allies and, in my view, breaching our obligation. Now, the prime minister says we’ll hit the target by the end of fiscal year 2025-26. That’s welcome news, but it comes with serious challenges.
Reaching the two per cent was always possible. It just required political courage. The announced $9 billion in new defence spending shows intent, and Carney’s remarks about protecting Canadians are encouraging. But the reality is our military readiness is at a breaking point. With global instability rising—including conflicts in Ukraine and the Middle East—Canada’s ability to defend its territory or contribute meaningfully to NATO is under scrutiny. Less than half of our army vehicles, ships and aircraft are currently operational.
I’m told the Treasury Board has already approved the new funds, making this more than just political spin. Much of the money appears to be going where it’s most needed: personnel. Pay and benefit increases for serving members should help with retention, and bonuses for re-enlistment are reportedly being considered. Recruiting and civilian staffing will also get a boost, though I question adding more to an already bloated public service. Reserves and cadet programs weren’t mentioned but they also need attention.
Equipment upgrades are just as urgent. A new procurement agency is planned, overseen by a secretary of state—hopefully with members in uniform involved. In the meantime, accelerating existing projects is a good way to ensure the money flows quickly. Restocking ammunition is a priority. Buying Canadian and diversifying suppliers makes sense. The Business Council of Canada has signalled its support for a national defence industrial strategy. That’s encouraging, but none of it will matter without follow-through.
Infrastructure is also in dire shape. Bases, housing, training facilities and armouries are in disrepair. Rebuilding these will not only help operations but also improve recruitment and retention. So will improved training, including more sea days, flying hours and field operations.
All of this looks promising on paper, but if the Department of National Defence can’t spend funds effectively, it won’t matter. Around $1 billion a year typically lapses due to missing project staff and excessive bureaucracy. As one colleague warned, “implementation [of the program] … must occur as a whole-of-government activity, with trust-based partnerships across industry and academe, or else it will fail.”
The defence budget also remains discretionary. Unlike health transfers or old age security, which are legally entrenched, defence funding can be cut at will. That creates instability for military suppliers and risks turning long-term procurement into a political football. The new funds must be protected from short-term fiscal pressure and partisan meddling.
One more concern: culture. If Canada is serious about rebuilding its military, we must move past performative diversity policies and return to a warrior ethos. That means recruiting the best men and women based on merit, instilling discipline and honour, and giving them the tools to fight and, if necessary, make the ultimate sacrifice. The military must reflect Canadian values, but it is not a place for social experimentation or reduced standards.
Finally, the announcement came without a federal budget or fiscal roadmap. Canada’s deficits continue to grow. Taxpayers deserve transparency. What trade-offs will be required to fund this? If this plan is just a last-minute attempt to appease U.S. President Donald Trump ahead of the G7 or our NATO allies at next month’s summit, it won’t stand the test of time.
Canada has the resources, talent and standing to be a serious middle power. But only action—not announcements—will prove whether we truly intend to be one.
The NATO summit is over, and Canada was barely at the table. With global threats rising, Lt. Gen. (Ret.) Michel Maisonneuve joins David Leis to ask: How do we rebuild our national defence—and why does it matter to every Canadian? Because this isn’t just about security. It’s about our economy, our identity, and whether Canada remains sovereign—or becomes the 51st state.
Michel Maisonneuve is a retired lieutenant-general who served 45 years in uniform. He is a senior fellow at the Frontier Centre for Public Policy and author of In Defence of Canada: Reflections of a Patriot (2024).
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