The time for big government is now gone. Government needs to be re-size to ensure maximum value is being achieved for tax dollars that are collected by all levels of government.

1. 2019 Election- Public
Sector Efficiency –
Canada – July 2019
PAUL YOUNG CPA CGA
JULY 30, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Introduction
 The time for big government is now gone. Government needs to be re-size
to ensure maximum value is being achieved for tax dollars that are
collected by all levels of government.

4. Agenda
 Emerging Markets
 Public Sector Effectiveness
 Blog – Auditor General
 Public Sector vs Private Sector
 Sunshine List
 Government Financial Statistics – January 2018
 Blog – Public Sector
 Blog – Public Sector Compensation
 Blog – Lapsing Funds
 Blog - Automation
 Solutions

5. Emerging
Markets
Source -
https://www.mckinsey.com/
featured-
insights/innovation-and-
growth/outperformers-
high-growth-emerging-
economies-and-the-
companies-that-propel-
them

6. Most Efficient Government
Source - https://www.theglobaleconomy.com/rankings/wb_government_effectiveness/
• From 2006 until 2011 there was a minority government
• 2015 to present the ruling party are the Liberals

7. Blog – Auditor - General
@joycemurray
Your comments on the auditor-general are not completely accurate and/or your government being more open and
transparent are also incorrect!
 Here my comments on liberals when it comes to open and transparent govt.
 In 2014-2015 there was $39M spent on Performance Audits. You are now spending $32M
https://www.slideshare.net/paulyoungcga/2019-election-open-and-transparent-government-canada-
148976592 (see slide 12)
 Your government changed the reporting on the fiscal monitor. You eliminated reporting of depts, why?
https://www.slideshare.net/paulyoungcga/2019-election-open-and-transparent-government-canada-
148976592 (see slide#8)
@joycemurray - Do you honestly think people do not check your comments out on the Auditor-General
@JohnBrassardCPC

8. Public Sector vs Private Sector
Blog – Public Sector vs Private Sector
https://www.canadianmanufacturing.com/financing/d
oug-ford-orders-public-sector-hiring-freeze-excludes-
essential-frontline-staff-214804/
@OPSEUSmokey How about you asked your workers to
take a pay cut?
@ontarioisproud We have 14%+ higher
wages/pension/etc and Thomas refuses to address the
compensation issues!
Blog – Public Sector vs Private Sector
https://twitter.com/CBCQueensPark/status/9772611909748
65410
Liberals also have grown their public coffers allot larger.
Liberals are great at summary data, but not at the details!
CFIB - https://www.canadianmanufacturing.com/human-
resources/wages-higher-in-public-sector-than-private-in-
ontario-says-fraser-institute-183470/ or
http://thechronicleherald.ca/business/1276204-public-
workers-out-earn-private-sector-%E2%80%94-cfib
https://www.slideshare.net/paulyoungcga/election-2018-
ontario-liberals-vs-ontario-progressive-conservatives-
economic-trends-and-fiscal-management
Where are the Liberals on the broken arbitration process?
https://www.thestar.com/news/canada/2016/04/01/comm
unities-struggle-to-rein-in-budgets-as-policing-costs-rise-
while-crime-rates-fall.html

9. Sunshine List / Ontario
Both London and Hamilton have low unemployment rates, but high social assistance rates. The new Ontario government will need to focus
on policies that will encourage economic development for cities like Hamilton and London
https://www.slideshare.net/paulyoungcga/london-ontario-issues-and-solutions-may-2018 or
https://www.slideshare.net/paulyoungcga/city-of-hamilton-issues-and-solutions-may-2018
Is it anyone surprised that two cities that elect socialist government have high welfare rates?
https://www.ontario.ca/page/public-sector-salary-disclosure#section-0
In 2003 there were about 20K government workers on Sunshine List as compare to over 123K in 2017.
The cost of the sunshine payroll went from $2B in 2003 to 16B in 2017. When did you hear
@AndreaHorwath call these numbers out?
@fordnation @ontarioisproud

10. Public Sector vs Private Sector
 Government needs to re-think how it operates as part ensuring its
programs are sustainable.

 The problem is too many people think government needs to hold their
hand from cradle to grave.
 https://www.slideshare.net/paulyoungcga/understanding-the-cost-of-
government-payroll-canada
 Private sector and consumer spending drive taxation into the govt.

11. Government Compensation
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/180622/dq180622c-eng.htm or
https://www.fraserinstitute.org/sites/default/files/canadian-consumer-tax-index-2018.pdf
• Approximately 12K of your taxes goes
to paying govt salaries
• Govt workers are paid 14% higher on
average than the private sector

12. Ontario Public Sector Compensation
Source - https://www.canadianmanufacturing.com/human-resources/ont-provincial-agencies-will-
require-government-approval-for-wage-settlements-223065/
• Approximately 50% of the government spending is tied to wages
• I estimate the govt could save $2B to $3B if they introduced wage and benefit reform
• Public Sector have been baby too much by various govt. Many leaders counted on the
public sector vote as such bent over backwards towards all public sector union

13. Taxation / Flow - Ontario
https://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/10/Narrowing_the_Gap.pdf
Liberal Party, especially Wynne never think they do anything wrong and yet the facts continue to show how inept they are with various
portfolios. It is sad the electorate in many cases is now admitting they either never voted for Wynne or now are fighting back on Wynne's cuts.
1. Source - http://ottawacitizen.com/opinion/columnists/reevely-bob-chiarelli-stands-by-attack-on-auditor-general-regardless-the-cost
2. Source - http://news.nationalpost.com/2014/05/09/even-an-ex-liberal-finance-minister-warned-wynne-that-deep-spending-cuts-are-
needed-to-balance-ontarios-budget/ or
3. Source - http://www.fraserinstitute.org/research-news/display.aspx?id=22200
4. Source - http://www.cfib-fcei.ca/english/article/6406-ontario-budget-reissued.html or http://www.ceocouncil.ca/publication/letter-
honourable-kathleen-wynne-premier-ontario.
Trust there are many more, especially how wynne deflects the municipalities issues at Harper:
http://www.slideshare.net/paulyoungcga/municipalities-canada or Brad Wall's comments:
http://www.cbc.ca/news/canada/saskatchewan/saskatchewan-premier-brad-wall-concerned-about-ontario-quebec-position-on-energy-east-
1.2848930.
Welcome to Ontario home to Premier Mom!
https://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/10/Narrowing_the_Gap.pdf
Or http://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/ or
http://www.slideshare.net/paulyoungcga/corporation-taxation-canada-44675640
or

14. Blog – Public Sector / OFL
 https://www.cbc.ca/news/canada/toronto/labour-group-protests-ontario-education-system-teacher-cuts-
1.5101611?fbclid=IwAR2chdsZ9vKa8q3ccn2qGWYdaI_m2X_62Rn3iXPPE5gL5-lQ4mzyaMxQOTs
 Attention: OFL
 You do realize the government does not operate in a competitive environment, right? Public sector wages are a big
issue in Ontario - https://www.competeprosper.ca/work/working-papers/the-realities-of-ontarios-public-sector-
compensation
 I also do not see OFL making any suggestions on how to fixed either economy or the fiscal management cycle
Issues
 Auditor General -http://www.auditor.on.ca/en/content/specialreports/specialreports.html
 Drummond Report - https://business.financialpost.com/opinion/the-drummond-report-gave-ontario-a-good-plan-
then-kathleen-wynne-buried-it
 Moody’s downgrade - https://business.financialpost.com/news/economy/moodys-downgrades-ontarios-credit-
rating-from-aa3-to-aa2-citing-deficit
 Ontario has spending problem https://www.fraserinstitute.org/article/ontarios-financial-problems-are-ontario-made
 https://nationalpost.com/opinion/allan-richarz-ontarios-teachers-are-overpaid - Teachers
 https://www.slideshare.net/paulyoungcga/ontario-economic-and-fiscal-mess

15. Blog – Public Sector Compensation

 There has been huge gaps between private sector and public sector pay -
https://www.fraserinstitute.org/studies/comparing-government-and-private-sector-compensation-in-ontario-2018
 Wynne never dealt with a broken arbitration process that was not based on the ability to pay -
https://www.slideshare.net/paulyoungcga/2019-election-issues-municipal-and-local-government-issues-and-analysis-may-
2019 (see slide 32)
 People need to understand that government does not work in competitive environment as such there are no market
pricing rules. Yet people will argue that private sector should increase wages. Businesses against other businesses when it
comes to their goods and services - https://www.slideshare.net/paulyoungcga/is-canada-losing-its-business-
competitiveness-february-2019
 Ontario is fiscal mess as such has to reign in compensation as it is about 50% of every dollar the government spends when
it comes to program spending - https://www.slideshare.net/paulyoungcga/fiscal-management-cycle-ontario-issues-and-
analysis
 Wynne and McGuinty added over $200B through waste and nothing is said, why? https://www.thespec.com/opinion-
story/9343836-ontario-s-budget-based-on-math-not-
ideology/?utm_source=twitter&source=thespec&utm_medium=socialmedia&utm_campaign=500am&utm_campaign_id=
opinion&utm_content=ontario-s-budget-based-on-math-not-ideology. Wynne and McGuinty has zero respect for the AG
reports as such did nothing with the AG reports. https://www.thestar.com/news/queenspark/2017/12/06/auditor-general-
takes-aim-at-liberals-over-spending-and-waste.html. Wynne also ignored recommendations in the Drummond Report -
https://business.financialpost.com/opinion/the-drummond-report-gave-ontario-a-good-plan-then-kathleen-wynne-
buried-it. BTW – Horwath back many budgets!

16. Blog – Lapsing Funds
All governments used lapsing funding including @justintrudeau -
https://globalnews.ca/news/4447716/trudeau-liberals-leave-372m-meant-for-
veterans-unspent/
Yet Trudeau called out @andrewscheer about how Harper used lapsing funds!
https://www.slideshare.net/paulyoungcga/fiscal-management-role-of-
lapsing-funds

17. Government /
Automation
Source -
https://www.mckinsey.com/industrie
s/public-sector/our-insights/how-
governments-can-harness-the-
power-of-automation-at-
scale?cid=other-pso-twi-mps-mps-
oth-1908

18. Solutions
 All government program spending needs to go through value for money including
changes to the costing model
 Too many governments are not getting value for their government services.
 Government needs to become lean - https://fcpp.org/2018/10/12/employment-data-
shows-canadas-public-sector-getting-fatter/
 Canada needs to have competitive tax rates or risk a brain drain -
https://www.slideshare.net/paulyoungcga/technology-market-canada-and-the-world-
march-2019
 Canada needs have govts that support policies that encourage business investment -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-
2019
 All levels of government need to focus on lean business practices as part of streamlining
operations