'Grow a spine,' Canadian taxpayers group counsels Yukon premier
The Canadian Taxpayers Federation says cutting government better than a new sales tax
The Canadian Taxpayers Federation says Yukon Premier and Finance Minister Sandy Silver should find a way to trim civil service spending to save money.
Colin Craig, interim director of the CTF in Alberta, said the size of the Yukon government's workforce and associated costs make up about half of its annual operations and maintenance budget.
"There's lots of different ways that government can be more cost-effective," he said. "You just need elected officials to roll up their sleeves and be willing to put in some hard work and make some tough decisions."
The Yukon government is looking for help to plot the financial future of the territory, which faces deficits for the next several years.
On Tuesday, the independent financial panel appointed by the government to provide options for raising revenues and reducing costs released its draft report. One of those options, it says, is paring down the cost of the civil service.
Craig applauds that suggestion, saying the civil service should be subject to the same fiscal restraint as business.
"Looking at compensation that employees receive, it tends to be higher than what people working in the business sector make for doing similar work, so that's one area where those costs can start to be scaled back," he said.
Fewer new hires
Craig recommends cutting back on new hires, rather than disrupting current employees.
"It's much more politically doable for politicians because they don't have to impose tough belt-tightening measures on the current employees," he said. "You deal with it through attrition."
Reduced work hours and a wage freeze are other options, Craig said, pointing out that various governments have tackled cuts in the past with the support of local unions.
"It's been done in many jurisdictions, like Ralph Klein negotiated a five per cent wage reduction in Alberta in the 1990s — there weren't any strikes; they agreed to do it — they knew the province's finances were in a tough position."
Craig also points to a reduced working week introduced in the 1990s in both Manitoba and Ontario, by different political parties, as well as pension reform in Saskatchewan.
"You see these examples across partisan lines," he says.
'Accountable to all taxpayers'
In Yukon, only one administration has cut the government workforce since the territory adopted party politics in 1978.
John Ostashek's Yukon Party government initiated a wage and hiring freeze on the public service in 1993. His party lost the 1996 election to the Yukon NDP led by Piers McDonald.
Today, leaders of all three parties appear reluctant to touch any aspect of government spending on the civil service.
Although a "sunshine list" — that is, the public disclosure of salaries public sector employees — is common in most Canada jurisdictions, the Yukon government refused to release names or specific salaries of top-paid bureaucrats, saying it would contravene the Access to Information and Protection of Privacy Act.
Craig says elected officials need to be accountable to all taxpayers, not just to its public service.
He urges politicians to stand up for the taxpayer.
"Grow a spine," he said. "There are certainly examples in Canadian history where politicians have had the backbone to stare down civil servant costs, but you need someone who's got that fortitude that's willing to stand up for the taxpayer and make those tough decisions."