Liberal leadership candidates divided on question of cuts to public service

OTTAWA — Liberal leadership candidates have contrasting plans for Canada’s federal public service — with presumed front-runner Mark Carney taking the most aggressive stance so far.

Carney recently vowed to cap the size of the public service and rein in government spending.

While he hasn’t said where this cap would be set or how much he would reduce spending, Carney told a press conference on Wednesday he would review program budgets and use new technology like artificial intelligence to improve efficiency.

“As a result, we will balance the operational budget within three years,” Carney said.

Rival candidate Karina Gould isn’t planning to trim the public service, her campaign said.

“At a time when our country is under threat, on the brink of a major trade war and Canadians’ jobs are on the line, now is not the time to make major cuts to the public service,” said Emily Jackson, a spokesperson for Gould. “We need public servants to do the big things Canadians rely on them for.”

During his first month in office, U.S. President Donald Trump has threatened to impose steep tariffs on Canada, including 25 per cent levies on steel and aluminum imports starting March 12. His threat of 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, is currently on pause.

Jackson said that if Canada should need a major new program to provide income supports to keep people and businesses afloat in a trade war, sending the public service into turmoil would be the “wrong approach.”

“For someone to say they will balance the budget in three years means they will be making massive cuts to the programs and policies Canadians rely on,” she said.

Jackson said Gould has committed to increasing the salaries of Canadian Armed Forces members and that she supports remote work that ensures “productivity, fairness and the effective delivery of government services.”

As part of a spending review, the Liberal government announced in its 2024 budget a plan to find savings through attrition in the federal public service.

While cutting permanent employees wasn’t part of the initial plan, federal departments and agencies have since started to announce layoffs and reductions in hiring. Immigration, Refugees and Citizenship Canada announced in January a plan to cut roughly 3,300 jobs over the next three years, including about 660 permanent employees.

Conservative Leader Pierre Poilievre said this month the public service is bloated, and a government led by him would not replace all federal workers when they retire.

While Canada’s largest federal unions, including the Canadian Association of Professional Employees and the Public Service Alliance of Canada, have not endorsed any Liberal leadership candidates, they have called for the country’s next leader to invest in a strong federal public service.

Leadership contender Chrystia Freeland has been vague about her plans for the public service. She has not answered questions from The Canadian Press about whether she would trim through layoffs or hiring freezes.

“My government will use tax dollars responsibly,” her website says. “I will pay for these measures by reducing the cost of running government — without cutting the benefits and services Canadians count on. This means cutting red tape, streamlining how government does business, and leveraging new digital and AI tools to deliver benefits and services to Canadians, faster and better.”

When asked about his plans for the public service and whether he would like to see it shrink, Liberal leadership candidate Frank Baylis said the bureaucracy has been growing at a faster pace than the population and “we need to look at what’s happened and why.”

It would be “simplistic” to implement across-the-board layoffs, said Baylis. He said he would go “department by department,” working with ministers to do a full program review before making any decisions.

Baylis said remote work “doesn’t work” and he would implement a minimum rule of four days in the office per week, with some flexibility for those who need to work from home.

This report by The Canadian Press was first published Feb. 22, 2025.

Catherine Morrison, The Canadian Press