Liberals spend billions more on outsourced contracts since taking power

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Ottawa spent $11.8-billion on outsourcing tasks from management consulting to IT in 2020-21, compared to $8.4-billion in the 2015-16 fiscal year

Federal government spending on outsourcing contracts has increased by more than 40 per cent since the Liberals took power, a trend at odds with the party’s 2015 campaign promise to cut back on the use of consultants.

The growth in outsourcing has not coincided with a smaller public service. The number of federal government workers increased from 257,034 to 319,601 between 2015 and 2021, a 24 per cent rise. The increased spending on contracts continues a trend identified in a January, 2020, report by the Professional Institute of the Public Service of Canada , a union that primarily represents scientists and professionals in the federal public service. That report focused more narrowly on service contracts in the areas of management consulting, temporary help and IT consultants.

Phoenix was designed under the previous Conservative government through an outsourcing arrangement with IBM. The Liberal government launched the system in 2016. Phoenix has since caused frequent errors that have left workers unpaid, underpaid or overpaid, resulting in widespread disruptions and distress throughout the public service.so far to public servants as a result of the Phoenix problems.

“It’s not in the best interests of the contractor to give any of that information up to the public service, because basically they would be consulting themselves out of their own job,” she said.

 

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