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

1. Public Sector vs
Private Sector
PAUL YOUNG CPA, CGA
DECEMBER 1, 2018

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. Agenda
 Public Sector vs Private Sector
 Sunshine List
 Government Financial Statistics – January 2018
 Blog – Public Sector

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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