My canadian business

From Canadian Business Online Blog, Jul 06, 2009

 By: Larry MacDonald

The Toronto garbage strike drags on, inconveniencing citizens there. Bus drivers in Ottawa went on strike earlier this year and after it ended, drivers were churlish with customers, buses ran behind schedule, and fares got hiked. Then in late June came news that $15 million in gold was apparently stolen from the Royal Canadian Mint.

We might ask: are taxpayers getting value for their money? A resounding NO has to be the answer. It has been such for a long, long time. These latest boondoggles are just more of the same, most of which never sees the light of day thanks to the culture of covering up and obfuscation that prevails in the civil service. It’s really about time taxpayers demanded and received more value in the provision of public services.

Why are unions allowed to go on strike in sectors where government is the only legal provider? Unions + monopoly supply = gouging the user. There are no market forces to restrain the whims of public sector unions. Disputes in these sectors should be resolved through arbitration and follow private sector benchmarks.

We can’t count on managers in the public service to hold the line.  They are administering “other people’s money” and don’t have quite the same interest in judiciously handling the funds the same way the original owners would. They cave into the unions or don’t take enough security precautions to guard against embezzlement, fraud, and pilfering.

A 2007 study, Public Sector Efficiency: An International Comparison (or see this summary), measured the efficiency of the public sectors in Canada and 23 countries. It found that Canada’s public sector was relatively inefficient and could achieve the same outcomes using only 75% of current resources. In other words, approximately 25% of the spending in the Canadian public sector represents waste.

If some of that waste could be trimmed, it could be passed on as lower taxes to taxpayers. And as mentioned in my latest column, lower taxes can have a salutary effect on a nation’s economic growth, productivity and standard of living.

But it’s not just a matter of waste. It’s also a matter of government programs not having an effect, or net benefit to society. For example, according to one study, Canadians are funding the developed world’s second most expensive universal access health system but are not getting anywhere near commensurate results.

In 2008, the median wait time from general practitioner referral to treatment by a specialist was 17.3 weeks. This wait time was 45% longer than in 1997, and 86% longer than in 1993 – despite substantial increases in government spending on health over the years.

The report also notes:

  • Canada ranked 14th of 25 nations in MRI machines per million population and 19th of 26 nations for CT scanners per million population
  • Canada ranked 26th out of 28 developed countries in the age-adjusted number of physicians per thousand population
  • there are seven developed nations—Austria, Belgium, France, Germany, Japan, Luxembourg, and Switzerland—that maintain universal access health insurance programs without queues for treatment
  • a 2007 survey published in the Health Affairs journal compared the experience of patients in Canada and six other industrialized countries with universal healthcare systems and found that
    - Canadians were more likely to wait over an hour, and most likely to wait two hours or more for access to an emergency room
    - Canadians were most likely to wait six days or longer to see a doctor when ill and were least likely to receive an appointment the same day
    - Canadians were least likely to wait less than one month for elective surgery

Tags:   · · ·

  1. 11 Responses to “ A taxpayer’s rant ”

  2. I for one, am really tired of working very hard – only to see half my annual income going to taxes. I know it’s true that if your tax bill is high, you are earning a good living, but I am tired of supporting people who “choose” not to work and support themselves on whatever social program they can.

    By Cathy Perry on Jul 7, 2009

  3. Right on!! About time the media woke up and started ranting – the people have been recognizing this for a long time. But the media have been strangely silent – or supportive of union and bureaucratic waste. The private sector has its faults – therefor basic laws, regulations are necessary. But for solutions and efficiency you can’t beat the profit motive.

    By Cathy Leonard on Jul 7, 2009

  4. Right on!! Our “health care” system is often cited as the defining feature of Canada, but is really only a hospital-medical system with no public coverage for many important health services. Yet any adverse comments are often viewed as unpatriotic, even though many needs for improvement have been identified for years but not acted upon. You could certainly add Ontario’s e-health fiasco to your list of taxpayer rip-offs! Waiting 2 or 3 hours past appointment time for the privilege of seeing a doctor is not unusual since many (not all) have little regard for their patients. We do need to wake up.

    By charles black on Jul 7, 2009

  5. I used to work in the B C Provincial Public Sector for 3 years and I can say that I have never seen so much waste and so low productivity. As an employee it was a very good job with excellent benefits, but as a taxpayer I was appalled at the waste, and the increase cost of upper management, which I believe is present in all Public Sector sevices. I believe that the private sector has a place in all government systems, and the government should be there as a regulatory body only. I think this would give us way more bang for our buck.

    Len Bellhouse

    By Len Bellhouse on Jul 8, 2009

  6. Cathy L.
    One obstacle the media faces is that people tend to clam up when it comes to divulging waste and corrpution. I once had a person from the local welfare office ready to expose what was going on where he worked, but as the day of the interview drew near, he backed out.

    By Larry MacDonald on Jul 8, 2009

  7. Len B
    I spent a few years working in government too. And presently know some civil servants. I can vouch for what you are saying.

    By Larry MacDonald on Jul 8, 2009

  8. Since I progressed through the 4 month process to see a surgeon in Langley, BC, I have been waiting 7.5 months for the Hospital to book a surgery time for a routine lower abdomen (muscle tear) Hernia operation, during which time I have fashioned a piece of plywood under my belt to pressure-hold my intestines in. I’m holding my breath for the mid August operating date which they inform me they may cancel to treat someone more needy.
    Great system. May have to go to Mexico to get treated?

    By Roland Seguin on Jul 9, 2009

  9. Roland
    What a system. And all the boomers are headed into a phase in their life when the need for medical attention is at its greatest. I personally dread getting old in Canada. Would like to hear from more readers with a story like Roland’s to tell.

    By Larry MacDonald on Jul 9, 2009

  10. Roland
    By the way, your story reminds me of when I was looking to buy a house. I visited one house for sale near a hospital and the owner, a friendly talkative chap, told me that when he needed an operation, his next door neighbour (the head nurse at the hospital) got him in within 2 weeks. Instead of going to Mexico, move to a neighbourhood near a hospital??

    By Larry MacDonald on Jul 9, 2009

  11. When I was young, thirty-five years ago, if you shoplifted, you paid a fine. If you pilfered, you did time. What ever happened to putting officials in jail for stealing. What is so hard?

    By Brian Pomeroy on Oct 8, 2009

  12. Get the cops off the dope and onto the real criminals.

    By Brian Pomeroy on Oct 8, 2009

Post a Comment

By posting your comment you agree to Canadian Business Online's Terms of Use.