Canada's privatised shadow civil service
PJ O’Rourke once quipped that “The Republicans are the party that says government doesn’t work and then they get elected and prove it.” But conservative parties have unlikely allies in the project to discredit public service: neoliberal “centrist” parties, like Canada’s Liberal Party.
If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/01/31/mckinsey-and-canada/#comment-dit-beltway-bandits-en-canadien
The Liberals have become embroiled in a series of scandals over the explosion of lucrative, secretive private contracts awarded to high-flying consultancy firms who charge hundreds of times more than public sector employees to do laughably bad work.
Front and centre in the scandal, is, of course, McKinsey, consligieri to opioid barons, murdering Saudi princes, and other unsavoury types. McKinsey was brought in to “consult” on strategy for the Business Development Bank of Canada (BDC), a Crown corporation that gives loans to Canadian businesses.
https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914
While there, McKinsey performed as per usual, veering from the farcical to the grotesquely wasteful. Most visible was the decision to spend $320,000 on a livecast fireside chat between BDC president Isabelle Hudon and a former Muchmusic VJ that was transmitted to all BDC employees, which featured Hudon and the host discussing a shopping trip they’d taken together in Paris.
Meanwhile, BDC has been hemorrhaging top people, which leaving the organisation with many holes in its leadership — the kind of thing that would pose an impediment to its lofty goals of substantially increasing the support it gives to businesses run by women, First Nations people and people of color.
Hudon — a Trudeau appointee — vowed to “start from scratch” when she took over the organisation, but then went ahead and did what her predecessors had done: hired outside consultants who billed outrageous sums to repurpose anodyne slide-decks full of useless, generic advice, or unrealistic advice that no one could turn into actual policy. They also sucked up BDC employees’ time with endless interviews.
The BDC has (reluctantly) disclosed $4.9m in contracts to McKinsey. The CBC also learned that Hudon parachuted several cronies from her previous job at Sun Life into top roles in the organisation, and that BDC had reneged on promised promotions for many long-term staffers. Hudon also repeatedly flew a chauffeur across the country from Montreal to BC to drive her around.
In Quebec, premier François Legault hired an army of McKinsey consultants at $35,000 per day to advise him on covid strategy, for a total bill of $8.6m. McKinsey’s contract with the province stipulated that they wouldn’t have to disclose their other clients, even in the event that they had conflicts of interest:
https://www.cbc.ca/news/canada/montreal/caq-legault-mckinsey-pandemic-consulting-1.6602374
The contract was kept secret, as was the long-running, $38m contract between McKinsey and the Hydro Quebec power authority:
https://ici.radio-canada.ca/nouvelle/1927738/mckinsey-hydro-quebec-consultants-barrages-affaires
Most of the bad press McKinsey gets revolves around the evil advice it gives — like when it advised opioid companies to pay cash bonuses to pharma distributors for every death-by-overdose in their territory (no, I’m not making this up):
https://pluralistic.net/2022/06/30/mckinsey-mafia/#everybody-must-get-stoned
But these rare moments of competence should be understood in the broader context in which McKinsey isn’t evil, they are merely utterly, totally fucking useless. The 2022 French Senate report on McKinsey really digs into this:
http://www.senat.fr/commission/enquete/2021_influence_des_cabinets_de_conseil_prives.html
They find that a quarter of the work McKinsey turned in was “unacceptable or barely acceptable in quality.” This is in line with the overall tenor of work performed by consultants. For example, when it came to giant Capgemini, the French Senate found that the work it provided was “of near-zero added value, indeed sometimes counterproductive.”
And yet, despite the expense and “near-zero added value,” hiring outside consultants is a reflex for neoliberal centrist leaders. Trudeau has presided over a massive expansion of the Canadian government’s reliance on outside consultants:
https://www.theglobeandmail.com/politics/article-liberals-spend-billions-more-on-outsourced-contracts-since-taking/
After campaigning on a promise to reduce outside consultancy, the Trudeau administration increased consultant spending by 40%, to $11.8 billion. This shadow civil service is not just more expensive and less competent that the real civil service — it is also far more opaque, able to fend off open records requests with vague gestures towards “trade secrecy.”
Since 2015, McKinsey has raked in $101.4m in federal contracts, even as the civil service has been starved of pay. Meanwhile, federal departments insist that they need to “protect Canada’s economic interests” by not disclosing outside contracts, and list their total spend at $0.00.
https://nationalpost.com/news/outsourcing-contracts-mckinsey-billions
The Professional Institute of the Public Service of Canada estimates that between 2011–21, the Canadian government squandered $18b on outside IT contracting that could have been performed by public servants. In 2022, the Government of Canada spent $2.3b on outsource IT contracts, while the wage bill for its own IT staff came in at $1.85b.
It’s not like these outside IT contractors are good at their jobs, either. The most notorious example is the ArriveCAN covid-tracking app for travellers, the contract for which was awarded to GCstrategies, a two-person shop in Ottawa, who promptly turned around and outsourced it to KPMG and other contractors, whom they billed to the government at $1,000–1,500/day, raking off 15–30% in commissions.
For months, the origins of the ArriveCAN app were a mystery, with the government insisting that the details of the contractors involved were “confidential.” But ArriveCAN was such a steaming pile of shit, and so many travellers (a population more likely to be well-off and politically connected than the median Canadian) had to deal with it, that eventually the truth came out.
The ArriveCAN scandal is ongoing — just last year, it cost the Canadian public $54m:
https://www.theglobeandmail.com/politics/article-arrivecan-subcontractors-multinationals/
Trudeau’s Liberals didn’t invent outsourcing high-stakes IT projects to incompetent grifters. Under Conservative PM Stephen Harper, Canada paid IBM to build Phoenix, an utterly defective payroll system for federal employees that stole millions from civil servants, bringing government to a virtual standstill. Thus far, the Government of Canada — which paid IBM $309m to develop Phoenix, as a “cost savings measure” — has paid $506m in damages to make good on Phoenix’s errors:
https://www.theglobeandmail.com/politics/article-ottawa-paid-out-400-million-in-phoenix-pay-compensation-to-federal/
The Liberals didn’t invent Phoenix — but they did deploy it, after campaigning on the wastefulness and incompetence of the Tories’ outsourcing bonanza. And after Phoenix crashed and burned, the Liberals increased outsourcing spending.
All of this is well-crystallized in last week’s Canadaland discussion between Jesse Brown and Nora Loreto:
https://www.canadaland.com/podcast/853-the-indulgent-consultant/
And on his Substack, Paul Wells proposes that the Senate — a largely ornamental institution in Canadian politics — is the unlikely check of last resort on the Liberals’ fetish for outsourcing:
There are former deputy ministers at the federal and provincial levels, secretaries to cabinet, a former Clerk of the Privy Council, a former chief of staff to a prime minister. A lot of them can remember the days when big decisions weren’t farmed out to firms that make their founders rich and are spared the rigours of accountability for their counsel. Surely some of them would like to shine a light?
https://paulwells.substack.com/p/shine-a-brighter-light-on-contract?
Image:
Sam (modified)
https://commons.wikimedia.org/wiki/File:The_Canadian_House_of_Commons.jpg
Presidencia de la República Mexicana (modified)
https://commons.wikimedia.org/wiki/File:Justin_Trudeau_June_2016.jpg
CC BY 2.0
https://creativecommons.org/licenses/by/2.0/deed.en
[Image ID: The legislative chamber of Canada's House of Commons; behind the speaker's chair, the back wall has been replaced by an enormous $100 bill. The portrait on the $100 bill has been replaced with an unflattering, braying picture of Justin Trudeau. The Bank of Canada legend across the top of the note has been replaced by the McKinsey and Company wordmark.]
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Okay so I’ve just taken an edible and I’m grumpy so it’s time for a rant about drug use and Canadian politics.
So I’ve started seeing this terrible not-good very bad advertisement a lot lately, which means I’m likely not the only one:
I cropped part of his face out because I felt like it. Every time I see this stupid fucking ad I hate Pierre Poilievre and his stupid face even more. Unfortunately now it looks like he’s spying on me like a nosy neighbour from behind his fence (honestly, though, that feels kinda tonally appropriate.)
But wait! If you click on the ad, it gets worse!
It’s horrible, fear-mongering misinformation.
“woke policies” lmao fuck you, Pierre Poilievre.
Literally any political entity that uses “woke” in a derogatory manner is giving off Major Red Flags and should not be taken seriously.
Before we start, let’s get some things straight. People use drugs. It happens. Learn to be normal about it if you aren’t already. People are sometimes addicted to drugs. This can happen for a variety of reasons. Usually it’s some variety of “I am struggling with something in my life and have found that using this substance helps with that.” It can be related to mental health, like so many of my family members who turned to alcohol or cigarettes or cocaine and amphetamines to manage their depression, anxiety, adhd, ptsd, or sensory issues. A lot of the time it’s to deal with chronic pain. It can also be a way to cope with shitty life circumstances. Chronic issues like these don’t just go away, so expecting people to just magically become drug-free without addressing and solving the root causes is not feasible as a one-size-fits-all solution. And, realistically, some people will never be drug-free. Some people will always need prescription amphetamines and prescription opioids and there’s nothing wrong with that (I have ADHD! I take prescription amphetamines every day! In fact, I take multiple medications that are technically controlled substances for various chronic issues!) People who use drugs are still human and deserve compassion. People who are addicted to drugs are still human and deserve compassion. You are not superior to people who use drugs.
So in case you weren’t aware, British Columbia (like a lot of places) is having an overdose crisis. People are dying from toxic drugs; it’s now the leading cause of death in the province for people aged 10-59. That’s a McFucking problem that we’ve gotta do something about! And we’re trying, but Pierre Poilievre doesn’t like that.
So let’s get to this garbage fire of a political ad. Sigh.
Justin Trudeau did not personally decriminalize crack, heroin, and cocaine. Justin Trudeau allowed the provincial government of British Columbia to decriminalize the possession of small amounts (<2.5g) of drugs for personal use, so that addicts just trying to exist would not have their drugs seized or face criminal charges or jail time. Justin Trudeau allowed the provincial government of British Columbia to treat drug addiction and the toxic drug crisis as the public health problem that it very clearly is. This is an evidence-based policy currently only meant to be valid from January 31 2023 to January 31 2026 as a temporary harm reduction measure during a time of crisis. It remains illegal to possess or use in school zones, playgrounds, pools, skate parks, airports, certain private properties (like shopping malls) and in every other province in Canada. Selling drugs is still illegal. These “woke policies,” AKA “trying to save goddamn lives while treating addicts like people and not punishing people who are already struggling” is really not that fucking radical when it comes down to it. It’s merely a step in the right direction but more needs to be done. What we need even more is a safe supply of drugs. And universal basic income.
Anyway.
“blah blah blah crime” so like drug-related crimes rates actually aren’t going up? And when it comes to crimes associated with substance abuse, the one with the highest statistical rate of violent crime is actually alcohol.
These are all things easily fact checked in mere moments, but Conservatives don’t want you to do that. But “Common Sense Conservatives,” huh? The facts don’t actually matter as long as people feel afraid of drug crime, and people afraid of crime and wokeness will vote against their own best interests. Never take political ads at face value. Always fact check.
Also reminder that if you are going to use drugs, don’t use alone if you can, get your drugs tested for safety (the edible is hitting since I first wrote get them tested then get them tasted) and I highly suggest everyone consider getting a naloxone kit or learning how to use one because you might be able to help save someone’s life.
Treat addicts like people. Don’t vote Conservative. Like, for fuck’s sake just let the drugs win the war on drugs already. I’m joining the war on drugs on the side of the drugs.
I’m tired of being the voice of reason. It’s exhausting. I’m gonna take an angry nap.
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