Budget 2017: Staying the course is not "Real Change"

The release of Budget 2017 has generated a variety of lukewarm reactions: “Stay the course,” “wait and see,” “lots of words, few dollars.” All of these phrases describe a situation where an ambitious Budget 2016, coupled with an uncertain economic climate, has led to an uninspiring final product for the current year. And while there are certainly external circumstances that justify a quieter budget, for the Federal Public Service the silence on some big issues, like Phoenix, was deafening.

Burned by Phoenix

The Phoenix fiasco remains an ongoing ordeal for thousands of government employees. PIPSC, in partnership with other unions, requested the creation of a $75-million contingency fund to ensure that public service workers are paid correctly and on time. There was absolutely no mention of the troubles related to the Phoenix Pay system in the 300-page document, and silence on this critical issue sends the wrong message to everyone. The government needs to take the necessary steps to fix this problem NOW!

Innovation without scientists

This budget was advertised as one that would focus on innovation. The government missed an opportunity to reinvest in public science at the federal level after ten years of cut-backs. There were targeted investments in Environment and Climate Change, the National Research Council, Natural Resources, Transport, Fisheries and Oceans, Agriculture, the Canadian Food Inspection Agency, and the Canadian Space Agency. This money is going to worthwhile initiatives that will protect our air and water, and keep our country prosperous and safe. However, the Departmental Plans released in early March show this new investment was required just to maintain departmental spending and head counts at their current levels. Just because we have a new government, it doesn’t mean that we’ve forgotten what’s happened in the recent past. The government component of research and development remains below the OECD average and it is unlikely that this new spending will reinstate the 1,500 science positions that have been lost since 2012.

Budget 2017 also formally created a secretariat for the Chief Science Advisor. The scope of work for this position is good. The office will “provide advice on how to ensure that government science is open to the public, that federal scientists are able to speak freely about their work, and that science is effectively communicated across government.”The wording used in the budget to describe the office did raise some concerns about the independence of the position. Specifically, it was described as having only an “advisory” role. We hope for the best but if this position is simply a political advisor, he or she may not have the independence to speak truth to power if it means disagreeing with the prime minister. In addition, the $2-million budget provided to the office is relatively small to carry out such an important mandate.

Immobile on outsourcing

The budget also stalled in addressing our concerns related to wasteful outsourcing practices. Last year they announced a small reduction and this year they haven’t made any new commitments. In fact, according to the 2017-18 Main Estimates, spending on professional services is expected to rise once again. And while the budget did not take tangible steps to curb outsourcing practices, it did announce that they would target at least three departments for further spending reviews. They did not provide details or book any expected savings, but we feel that targeting departmental spending without scaling back on expensive private-sector consultants is bad policy and a missed opportunity.

Uncertainties and vague details

In addition to the uncertainty raised regarding new departmental reviews, there were other announcements that were vague on details but could have implications for PIPSC members in the future. There is confusion about the implications of adjusting the timelines for equipment purchases at National Defence; this was booked as savings. Similarly, the government announced a review of all fixed assets, including some engineering and science facilities. Details are lacking but we will continue to monitor the progress of these initiatives, determine if there are any negative impacts on PIPSC members and, of course, encourage transparency and consultation throughout the process.

Investments in tax fairness

The one bright spot in our opinion was tax fairness. Budget 2017 committed an additional $530 million to crack down on tax evasion and avoidance and address the gaps created by the underground economy. This is, without a doubt, a wise investment for Canadians; these initiatives are expected to return $5 into the public coffers for every $1 spent. This is also a testament to the phenomenal work done by professionals at the Canada Revenue Agency. They go above and beyond to ensure that wealthy individuals and big corporations pay their fair share, just like the rest of us.

A more detailed accounting of new investments by department will be posted for members’ information in the next few days.

Better Together.

Debi Daviau
President