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OGGO Committee Report

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DISSENTING OPINION

The following report is the dissenting opinion of the Conservative Members of the Standing Committee on Government Operations and Estimates on the committee’s study of the freeze on departmental budget envelopes and government operations.

It is important to note that, in the view of the Conservative Members of the Standing Committee on Government Operations and Estimates, the report contains arguments, opinions and conclusions that do not give a balanced view of this study, nor does the study correctly reflect the numerous testimonies heard.

The President of the Treasury Board, Stockwell Day, stated during his testimony before the Government and Estimates Committee on February 8, 2011, that the Government has a clear plan to balance the budget by 2015.

“First of all, we do have a plan. It's very clear. It's laid out in a number of budget documents. The plan, which is here, is one, which I think you are familiar with. We show a very clear deficit reduction. We show the deficit of $45.4 billion in 2010-2011, and then the next year, you'll see a reduction, where it will drop to $29.88 billion. Of course, you have all these documents I'm sure in both official languages. That will be a result largely of the end of our Economic Action Plan, $19 billion which will no longer flow forward, and $1.28 billion in restraint measures, including operating budget freezes.”

The Treasury Board President indicates furthermore that Canada is on track on to balance the budget and this statement is backed up by numerous national and international economic forecasters which he also refers to during his appearance before committee. For example, the International Monetary Fund has said that Canada is an economic miracle and that our overall fiscal outlook in light of the global recession stands out as one of the best among the G20. The OECD stated that Canada’s economy shines. The World Economic Forum says that Canada has had the strongest financial platform for the last three years of any other country in the world. Statistics Canada reports that there has been a job creation of over 400.000 since June 2009.

Notably, the approach taken to balance the budget is not being made by slashing programs to people, slashing health care or by slashing provincial transfers as the Liberal Government did in the 1990s. Transfers will not only be maintained, but increased by 6%. This is possible through freezing the federal government’s own operations, by cutting corporate taxes and by improving efficiencies of departments.

Every department, and on their behalf the responsible Deputy Minister, will adapt independently to the budget freeze and find ways to increase their efficiencies, as they are best equipped to manage their portfolio. As such, every department had the responsibility to develop an individual plan on how to best handle the freeze on departmental budget envelopes and government operations. From the numerous testimonies heard, it was clear that every department was confident in achieving budget and operational objectives through finding efficiencies while maintaining service levels.

The following are representative examples of testimonies made by government officials before the Standing Committee on Government Operations and Estimates.

Mr. Andrew Treusch on June 14, 2011 (Associate Deputy Minister, Department of Public Works and Government Services):

“PWGSC has undergone many changes in recent years and we believe we are well positioned to absorb the impact of the freeze. A few years ago we embarked on an ambitious program of renewal and transformation seeking efficiencies and adopting common business practices, particularly in the areas of acquisitions, real property and information technology.”

Mr. Ian Shugart on February 11, 2011 (Deputy Minister, Department of Human Resources and Skills Development):

“Our 2010-2013 plan identified judicious technology upgrades and streamlining of processes as key elements that would help the department maintain its service standards in a context of fiscal constraint.”

Mr. Don Head on February 10, 2011 (Commissioner, Correctional Services Canada):

“This approach reduces redundancies and overlap between some of the programs we offer to offenders, and ensures a more timely delivery of programs to offenders while maintaining the quality of content and staff training.”

“Having said that, are there areas where we can still find some efficiencies without affecting negatively the public safety results? I believe there are”

In conclusion, departmental officials are confident to achieve the balance between the mandated budget freeze while maintaining the commitment to service levels. This is ultimately the key point in all testimonies heard.