|Monday Sept 20, 2004 |
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Chop!
Chop! Hear the sounds of cuts in Ottawa
For
all political watchers out there, if you believe that the summer
went by and the Paul Martin Government took holidays, think again.
While most Canadians were relaxing in the sun, or, whatever it was
they did in a not-so-sunny summer, a group of federal Cabinet
ministers and top bureaucrats were in Ottawa working on a clear
mandate: to chop, chop, chop.
Itıs called Cabinetıs Expenditure Review Subcomittee, headed by
Revenue Minister John McCallum who held several meetings over the
summer to find where and how Cabinet can cut government program
spending. Intergovernmental Affairs Minister Lucienne Robillard is
the vice-chair, Foreign Affairs Minister Pierre Pettigrew,
Agriculture Minister Andy Mitchell, Human Resources Minister Joe
Volpe, Public Works Minister Scott Brison and Industry Minister are
also on the Cabinet committee.
However, Iım also being told that thereıs another Cabinet committee,
headed by Deputy Prime Minister Anne McLellan. Minister of Finance
Ralph Goodale, Government House Leader Tony Valeri, Transport
Minister Jean Lapierre and Liberal Senator Jack Austin, are on this
committee which is also finding ways to cut.
But who knows how many sub-sub-committees are out there. Officially
this second Cabinet committeeıs job is to eliminate waste and
re-prioritize the nationıs spending. The crass purpose of the entire
exercise is to find $12billions in four years to develop a plan "to
save money without cutting services." All ministerial departments
have been ordered to submit to this subcommittee a plan present
their suggestions to proceed with cuts.
Most of the presentations must be made in the next few weeks.
They have to eliminate waste and make sure that the possibility that
events like the sponsorship programs wonıt be repeated.
Under scrutiny, are programs with long-term commitments, but, Iım
told by one top insider, that even "contracts to buy pencils if
theyıve been awarded without the tendering process" are being
scrutinized.
There are already hundreds of cancelled projects, internal audits of
foundations and departments underway and everything is under
scrutiny.
Everything must be done by the book. Theyıre putting out tenders for
pencil sharpeners, said one source close to the exercise.
It appears that the Martin government and all its senior officials
and departments are under siege.
Working by the book seems to be the right way to approach the job.
In reality, working by the book, means to slow down everything and,
in some cases, stopping activities altogether.
Unions know that: in fact, they resort to the work-to-rule practice
as the last resort effort before a full strike. Of course, once the
whole exercise is finished, Prime Minister Martin has to explain how
it is that in a time when the surplus is higher than predicted, he
needs to implement some deep cuts. Meanwhile, repercussions are
already being felt in one sector already and thatıs the lucrative
government relations and consulting sector.
Independent consultants, who rely on government departments and
agencies for work, are dropping like flies out there, apparently.
Spending on all outside projects and anything that has a whiff or
similarity to the now much-despised "sponsorship scandal" is being
stopped in its tracks.
In the business, complaints are widespread: "It's little wonder the
government is going to have a bigger than expected surplus ‹ it
isn't spending," said one consultant.
Well, how deep those cuts are, is going to be much clearer in a of
couple weeks. Some are saying that the changes are so radical that a
new budged is needed. The usual October outlook might not be enough. |