BC’s public sector the smallest in Canada

Reduced services increase inequality — CCPA.

by SGNews Staff

A report released April 9 by the Canadian Centre for Policy Alternatives states that spending cuts and staff reductions have seriously weakened BC's public sector, which is the smallest in Canada, measured as a share of the population.

"The message to the public has been that public sector employment can be cut–usually in the name of reducing the deficit–without any noticeable impact on programs or services," said Iglika Ivanova, economist and author of "Reality Check on the Size of BC's Public Sector."

"But, in fact, the latest Statistics Canada numbers on public sector employment in BC tell a very different story."

According to the report, BC has the smallest public sector in Canada.  In 2011, there were 90 public sector employees per 1,000 people in BC, compared to 92 in Alberta and 100 in Ontario (which have the 2nd and 3rd smallest public sectors). While other provinces reinvested in public services since the early 2000s, BC made cuts in 2001-2004 and again after the 2008 recession.

As a result, states the report, services aren't able to meet the needs of a growing population.

The report finds no evidence of an overspending problem in BC.  Provincial government spending as a share of the economy (or GDP) has dropped significantly over the past two decades.

"The current provincial deficit is the result of a revenue shortfall due to a decade of tax cuts followed by a slow economy, not overspending," said Ivanova.  "For example, in 2011/12 BC spent 2.3 per cent of GDP (or $5 billion) per year less than in 2000/01."

Consequences of public sector cuts, the report states, include:

• Reduced monitoring and protection of forests and water, allowing for more illegal logging and pollution;
• Larger class sizes in public and post-secondary institutions, reducing the quality of education;
• Less homecare and other services for seniors, leading to hardships for seniors and overcrowding in hospitals; and
• Less protection for vulnerable children in care, increasing the likelihood of abuse and neglect.

A reinvestment in a strong public sector would not only improve quality of life, but reduce the economic and social costs associated with the high levels of poverty and inequality in BC, the report concludes.

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