Government Operations and Estimates

The House of Commons Standing Committee on Government Operations and Estimates met to study the comprehensive expenditure review. Appearing were Nick Leswick, Deputy Minister of Finance, and Thomas Larouche, Director General, Budget and Government Operations, from the Department of Finance, as well as Sharon DeSousa, National President of the Public Service Alliance of Canada (PSAC), and Frédérick Lebeau and Daniel MacKinnon, National President and Second National Vice-President respectively of the Union of Canadian Correctional Officers (UCCO).

Nick Leswick, who is new to his role, said the spending review was not designed to reduce the deficit but to reallocate funds from low-performing programs to higher priorities, and that no specific direction was given on regional proportions or a rural lens for cuts. He confirmed that public debt charges are projected to be $60 billion in 2026-27, exceeding the $57.4 billion Canada health transfer, and acknowledged that while nominal debt charges are rising, they are trending lower as a share of GDP. Leswick agreed that the review was not about austerity but about strategic reinvestment, and he noted that the process demonstrated government can reallocate spending, though he said no future review is currently being planned.

Thomas Larouche explained that the review used gender-based analysis plus (GBA+) as a lens, not a specific rural lens, and that departments themselves conducted the analysis. He said the review is proceeding as planned, with savings coming from back-office efficiencies, program recalibration and streamlined delivery, and that targets varied by department to protect priorities like national security and Indigenous services. Larouche added that a continuous improvement process has been announced for future, more targeted reviews, and he noted that the review aims to bring public service growth back to a more sustainable level after a 40% increase from 2015 to 2024.

Sharon DeSousa said PSAC views the review as a cutting exercise, not a reallocation, and that over 14,000 of her members have received workforce adjustment notices, including at Public Safety Canada, Health Canada and the Canadian Food Inspection Agency. She argued that cuts will weaken services, slow responses to emergencies and food-borne illness outbreaks, and delay pay equity and employment equity obligations, while the government continues high spending on contracting out. DeSousa urged the committee to hear from a broader range of voices and said investing in public services is essential, disagreeing with government assurances that frontline services will not be affected.

Frédérick Lebeau said the government’s unilateral decision to reduce correctional officers’ retirement benefits ignores the psychological toll of their work, and that Correctional Service Canada’s plan to cut $132.2 million will eliminate over 100 correctional officer positions. He detailed cuts to mobile patrols, drug detector dog teams, integrity program posts and structured intervention unit staffing, warning these will increase violence, contraband and risk to officers and the public. Lebeau said technology is quickly circumvented by organized crime and that aging infrastructure, such as the decades-old temporary unit at Bath Institution, requires massive investment, not cuts.

Daniel MacKinnon said inmates are catching up to new technology faster than it can be implemented, making boots on the ground essential, and that reducing dog teams and mobile patrols will allow contraband to enter institutions more easily. He said morale is very low because officers feel unsupported by management, and that policies like reintroducing large inmate meal lines increase risk to staff. MacKinnon agreed that cuts to searches and patrols will make it harder to stop drugs and weapons from fueling violence inside prisons.

The committee heard from members of Parliament who questioned officials and witnesses, but no procedural debate, motions or votes occurred during this meeting.