The Department of Employment spent nearly $1 billion on consultants last year, a 10% increase over its six-year average despite Prime Minister Mark Carney's pledge to slash federal spending on management consultants.Records show the department spent $998.5 million on consultants, compared with an average of $910 million over the previous six years.An April 21 Briefing Binder said consultants were required to provide specialized expertise and support departmental operations.“Consultants provide a flexible and rapid deployment of resources with specialized skills and expertise to support the department’s operational requirements and internal systems,” said the document.Officials said consultants were specifically used to provide guidance on departmental transformation and help deliver programs and services “efficiently, effectively and prudently.”The spending comes despite Carney's pledge last November to cut the government's reliance on consultants.“We are reducing the size of the public service by 10% and cutting management consultants by 20%,” Carney said Nov. 14.“A series of tough, responsible choices will save Canadian taxpayers a total of $60 billion by restructuring operations, consolidating internal services and right-sizing programs.”Blacklock's Reporter said Carney had previously promoted a fiscal policy of reducing operating expenses while increasing spending intended to generate long-term returns.“I have a simple rule: spend less, spend more,” Carney said in 2024.Carney compared government finances to buying a house, describing a downpayment and mortgage as spending that builds value while household expenses such as heating and electricity represent operating costs.“I will balance our operational budget in three years,” he said. “We will spend what we need to with the money we already have.”.The Department of Employment defended its use of consultants in its latest Briefing Binder, saying additional safeguards were introduced to ensure taxpayers receive value for money.“To strengthen oversight and ensure value for money in professional services procurement, new measures have been introduced for contracts based on hourly or daily rates,” said the document.Officials said the measures include improved comparisons with market rates and clearer expectations for cost effectiveness.The department previously said consultants were hired because existing public servants were either unavailable or lacked necessary expertise.“Does hiring consultants amount to using replacement workers instead of public servants?” asked a Dec. 9, 2024 departmental memo.“The department retained the services of consultants where it was determined that no employee was available or that specified skill sets or specialized knowledge were lacking.”The department employed 34,410 people at the time.Federal spending on consultants across government totals about $25 billion annually, according to the Procurement Ombudsman.Consulting costs have increased alongside growth in the federal payroll, which Treasury Board estimates at $84.9 billion.The Board last year counted 611,874 federal employees, including personnel in the Canadian Armed Forces and RCMP and employees of Crown corporations including Canada Post and VIA Rail. The payroll estimate included salaries, benefits and pensions.
