Mayor Mark Sutcliffe says he has spoken with Prime Minister Mark Carney to try to blunt the impact of potential
federal public service cuts
could have on Ottawa.
Sutcliffe told the Ottawa Citizen that he’s very worried about the prospect of job cuts within the public service, and that he’s had discussions with Carney and other federal officials to try to ensure they won’t be “devastating” on the local economy.
“The federal government is our largest employer in our city and it’s the largest landowner in our city,” he said. “We need to work closely together on a plan to support the local economy, support any workers who lose their jobs and help them transition to other employment.”
In early July,
Finance Minister François-Philippe Champagne
sent letters to cabinet ministers asking them to find 15 per cent in savings over three years. Cabinet ministers have until the end of the summer to propose savings in their departments.
Some government organizations, such as the Department of National Defence, the RCMP and Canada Border Services Agency, have a lower target of 2 per cent over three years. And other organizations, such as the office of the auditor general and the Supreme Court of Canada, won’t be impacted by the spending review.
In his election platform, Carney pledged to “cap, but not cut” the size of the public service,
but some public sector unions
have accused the prime minister of breaking that promise.
A recent report
by the Canadian Centre for Policy Alternatives, a left-leaning think tank, found that the National Capital Region will likely “bear the brunt” of any cuts to the public service. The report found that around 45 per cent, or the equivalent of 24,421 full-time jobs, could be lost from the cities of Ottawa and Gatineau.
The mayor was a vocal supporter of getting federal public servants working back in downtown offices after the COVID-19 pandemic required them to work from home. At the time, he argued that businesses downtown would continue to struggle without the foot traffic that public servants bring.
And now he has similar fears, as the federal
government looks to tighten its budget
.
Sutcliffe said he’s heard concerns from both federal government employees, who fear losing their job, as well as small business owners downtown, who worry about the impact cuts could have on their bottom lines.
“The impact on Ottawa is significant,” Sutcliffe said. “We need to work together to make sure that we are continuing to support Ottawa’s economy and support any people who are affected by this.”
— With files from Sadeen Mohsen
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