Business
Trudeau reversed Chrétien’s legacy and rapidly expanded federal bureaucracy
From the Fraser Institute
Over the next weeks and months, there will be much discussion about Justin Trudeau’s legacy as prime minister. To provide some context, it’s worth comparing Trudeau’s fiscal record with that of another long-serving Liberal prime minister—Jean Chrétien.
In the early 1990s Canada’s federal finances were in shambles. Thanks to years of large budget deficits (and high interest rates), debt interest payments were consuming one-third of all federal revenue and the country stood at the brink of a full-blown fiscal crisis. Paul Martin, Chrétien’s finance minister, recognized the gravity of the threat and famously promised to eliminate the deficit “come hell or high water.” And that’s exactly what the Chrétien government did, thanks primarily to reductions in federal spending.
How’d they do it?
The government launched a program review, which examined all dimensions of spending in search of savings. The review led to a substantial reduction in federal government employment, which shrunk by nearly 15 per cent. While there were many components to the federal reforms of the 1990s, this reduction in the size of the federal bureaucracy clearly helped Chrétien and Martin eliminate the federal deficit.
Fast-forward to the present day and Justin Trudeau, who does not share his Liberal predecessors’ commitment to balanced budgets. Federal government employment has increased rapidly in recent years, with the Trudeau government adding more bureaucrats (in absolute and percentage terms) than were reduced during the Chrétien/Martin reform era.
Specifically, from 2015/16 to 2022/23, federal government employment (as measured in fulltime equivalents) increased by 26.1 per cent. By comparison, the Canadian population increased by 9.1 per cent over the same period.
Just as the reduction in federal employment contributed to the deficit reduction in the 1990s, the growth in federal employment has helped fuel the Trudeau government’s unending string of budget deficits since 2015/16. Incidentally, if during its nine years in power the Trudeau government had simply held the rate of growth in federal employment to the rate of population growth, federal spending would be $7.5 billion lower than it is today.
According to the Trudeau government’s latest projections, the federal deficit will reach an eye-popping $48.3 billion this fiscal year. And thanks to years of record-high spending under Trudeau, total federal debt will eclipse $2.15 trillion. Consequently, the federal government will spend $53.7 billion this year on debt interest payments—or $1,301 per Canadian.
Canadian history is clear—it’s difficult to predict the policy orientation of any premier or prime minister based on their political stripe. Prime Ministers Chrétien and Trudeau prove this point. Chrétien reduced federal employment with an eye on eliminating the federal deficit. Trudeau reversed this legacy by rapidly growing the federal bureaucracy. This is one important reason for the divergent fiscal outcomes between the two governments.
Under Prime Minister Chrétien, Canadians saw a string of balanced budgets. Under Prime Minister Trudeau, an unending series of deficits and massive debt accumulation, which Canadians must pay for today and for many years to come.
Business
Canada Revenue Agency found a way to hit “Worse Than Rock Bottom”
From Conservative Part Communications
Last month, Carney’s Minister responsible for the Canada Revenue Agency (CRA) debuted their new slogan: “It can’t get much worse than it is now.” Today, the Auditor General reported that under the Liberals, it has.
Over the 2024/25 period, only 18 per cent of callers were able to reach a CRA agent within 15 minutes, a far cry from the target of 65 per cent of callers. In June, the numbers plunged to just 5 per cent of callers able to get through within the service standard of 15 minutes.
The average wait time took over half an hour, double what it was the year prior. And that was if you were even given the option of getting help. Nearly nine million calls were “deflected” by an automated voice telling Canadians to figure it out themselves, with no option to speak with an agent.
Wait times are so bad that over 7.6 million calls were disconnected before callers were able to reach an agent or be provided automated service. As wait times continue to get worse and worse, Canadians have just given up, evidenced by 2.4 million more abandoned calls over the previous year.
Even when Canadians manage to get hold of an agent, employees regularly fail to provide correct information about personal and business taxes. Auditors found the call centre gave incorrect information 83 per cent of the time when asked general individual tax questions.
Non-specific questions about benefits, including about eligibility, were wrong 44 per cent of the time. Meanwhile, the CRA’s automated chatbot “Charlie”, meant to relieve the call centre, answered only two of six tax-related questions correctly.
“How is it that an organization so important to the smooth functioning of the country is failing to serve Canadians and, as the Auditor General notes, places greater importance on adhering to shift schedules and breaks than on the accuracy and completeness of the information provided?” asked Gérard Deltell, Conservative Shadow Minister for Revenue.
It’s no surprise that complaints about the CRA’s contact centre increased 145 per cent from 2021/22 to 2024/25. Despite this, the Liberals announced they will begin auto-filing taxes for 5.5 million Canadians, automatically enrolling people in benefits the CRA is regularly unable to provide accurate information about.
Worse of all, the cost of the CRA’s call centre has ballooned from $50 million over 10 years in 2015 to $190 million. The total cost is projected to continue rising to $214 million over the next two years, a more than 320 per cent increase from the original contracted amount.
Meanwhile, Auditors found “there was no process documented or followed to ensure that amounts invoiced … were accurate and reflected the services received,” and that there was “little evidence that invoice details were appropriately reviewed and approved by … the Canada Revenue Agency prior to issuing payment.”
The Liberals have delivered higher taxes and higher costs with worse service for Canadians. We deserve better than continued Liberal failures. Conservatives will continue holding Carney accountable and fight to cut taxes and waste so Canadians keep more of what they earn.
Alberta
Petition threatens independent school funding in Alberta
From the Fraser Institute
Recently, amid the backdrop of a teacher strike, an Alberta high school teacher began collecting signatures for a petition to end government funding of independent schools in the province. If she gets enough people to sign—10 per cent of the number of Albertans who voted in the last provincial election—Elections Alberta will consider launching a referendum about the issue.
In other words, the critical funding many Alberta families rely on for their children’s educational needs may be in jeopardy.
In Alberta, the provincial government partially funds independent schools and charter schools. The Alberta Teachers’ Association (ATA), whose members are currently on strike, opposes government funding of independent and charter schools.
But kids are not one-size-fits-all, and schools should reflect that reality, particularly in light of today’s increasing classroom complexity where different kids have different needs. Unlike government-run public schools, independent schools and charter schools have the flexibility to innovate and find creative ways to help students thrive.
And things aren’t going very well for all kids or teachers in government-run pubic school classrooms. According to the ATA, 93 per cent of teachers report encountering some form of aggression or violence at school, most often from students. Additionally, 85 per cent of unionized teachers face an increase in cognitive, social/emotional and behavioural issues in their classrooms. In 2020, one-quarter of students in Edmonton’s government-run public schools were just learning English, and immigration to Canada—and Alberta especially—has exploded since then. It’s not easy to teach a classroom of kids where a significant proportion do not speak English, many have learning disabilities or exceptional needs, and a few have severe behavioural problems.
Not surprisingly, demand for independent schools in Alberta is growing because many of these schools are designed for students with special needs, Autism, severe learning disabilities and ADHD. Some independent schools cater to students just learning English while others offer cultural focuses, expanded outdoor time, gifted learning and much more.
Which takes us back to the new petition—yet the latest attempt to defund independent schools in Alberta.
Wealthy families will always have school choice. But if the Alberta government wants low-income and middle-class kids to have the ability to access schools that fit them, too, it’s crucial to maintain—or better yet, increase—its support for independent and charter schools.
Consider a fictional Alberta family: the Millers. Their daughter, Lucy, is struggling at her local government-run public school. Her reading is below grade level and she’s being bullied. It’s affecting her self-esteem, her sleep and her overall wellbeing. The Millers pay their taxes. They don’t take vacations, they rent, and they haven’t upgraded their cars in many years. They can’t afford to pay full tuition for Lucy to attend an independent school that offers the approach to education she needs to succeed. However, because the Alberta government partially funds independent schools—which essentially means a portion of the Miller family’s tax dollars follow Lucy to the school of their choice—they’re able to afford the tuition.
The familiar refrain from opponents is that taxpayers shouldn’t pay for independent school tuition. But in fact, if you’re concerned about taxpayers, you should encourage school choice. If Lucy attends a government-run public school, taxpayers pay 100 per cent of her education costs. But if she attends an independent or charter school, taxpayers only pay a portion of the costs while her parents pay the rest. That’s why research shows that school choice saves tax dollars.
If you’re a parent with a child in a government-run public school in Alberta, you now must deal with another teacher strike. If you have a child in an independent or charter school, however, it’s business as usual. If Albertans are ever asked to vote on whether or not to end government funding for independent schools, they should remember that students are the most important stakeholder in education. And providing parents more choices in education is the solution, not the problem.
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