Brown, D.M., “No Sense of Direction: Public/Private Compensation Differentials,” in R.G. Harris, J. Richards, D.M. Brown, and J. McCallum (eds.) Paying Our Way: The Welfare State in Hard Times (Toronto: C.D. Howe Institute, 1994).
Ministry of Supply and Services Canada, Public Service 2000, Second Annual Report to the Prime Minister on the Public Service of Canada, Clerk of the Privy Council and Secretary to the Cabinet, (1994).
Richards, J. (1994) “Living Within Our Means: What Will It Take,” in R.G. Harris, J. Richards, D.M. Brown, and J. McCallum (eds.) Paying Our Way: The Welfare State in Hard Times (Toronto: C.D. Howe Institute, 1994).
Prepared by Leonardo Bartolini.
Sources: Government of Canada, Public Accounts of Canada, various issues; 1994/95 Main Estimates; Statistics Canada, Public Sector Employment and Remuneration, various issues; and staff estimates.
Program spending excludes debt service.
With the closing of Canada’s two bases in Germany, Canada completed the withdrawal of its forces in Europe in 1993/94.
This plan excluded the effects of the salary and hiring freezes. In the event, employment fell by almost 4,000 units (including military and civilians) from 1993/94 to 1994/95.
General government personnel costs were roughly one third of total noninterest spending in 1990, the highest among the G-7 countries.
Important changes have been recently implemented in the administration of departments’ and agencies’ operations, making historical comparisons difficult. Effective April 1, 1993, all department and agencies are held to overall operating budgets, with no Treasury Board central control on employment. These changes have also led departments and agencies to alter their procedures for measurement of employment. Civil service employment is now measured in full-time equivalent units, defined as the number of full-time employees that would be required to perform the number of hours actually worked, without reference to the type of employee used (i.e., full versus part-time, permanent versus contract).
Several observers have noted that public-sector remunerations still exceeds that in the private sector, especially when account is taken of job security. Richards (1994), for instance, reviews evidence suggesting an “excess” remuneration of about 10 percent in favor of civil servants, while Brown (1994) reviews similar evidence pointing to an “excess” remuneration in the public sector of about 7 percent for men and 9 percent for women.
Recommended measures included greater managers’ accountability, decentralizing personnel management, transforming many mandatory services into optional services, increasing mobility and the use of casual employment, and easing procedures for separation.
Many observers (e.g., Trebilcock (1994)), have pointed to the need for an ambitious plan of contracting out or privatizing a wider array of public services, including education, prisons, and waste collection. This was expected to result not only in immediate budgetary savings but also, over time, in greater exposure to market forces and hence greater efficiency in the provision of these services.