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McGuinty government announces further restraint measures

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McGuinty government announces further restraint measures

Leading By Example in Uncertain Economic Times

Ministry of Finance

The McGuinty government announced today further measures to restrain spending on public salaries and to freeze the current size of the Ontario Public Service.  The following restraint measures will be put into place immediately and will affect elected officials as well as non-elected government employees.

  • Member of Provincial Parliament (MPP) salary increases will be limited to 1.5 per cent
  • Senior management within the Ontario Public Service (OPS) will also have salary increases limited to 1.5 per cent
  • The government strongly encourages its partners in the Broader Public Service (BPS) to limit pay increases of employees earning more than $150,000 to 1.5 per cent
  • The full-time equivalent employees of the OPS will immediately be frozen at its current size of 68,645.

Quick Facts

  • In the October 2008 Fall Economic Statement, the government announced restraints on internal government expenditures for travel for government staff, print advertising for government jobs, and management and IT consulting services.
  • In addition, our government is taking action and providing fiscal flexibility by delaying the implementation of and slowing down some new initiatives and requiring ministries to focus on highest priority programs for the 2009-10 budget. Together, these restraint measures including our internal savings will result in $108 million in savings in the four months remaining in the 2007-08 fiscal year.
  • We have also achieved efficiencies across the Ontario Public Service, exceeding our target of $750 million with reportable savings of $806 million identified over the 2004-05 to the 2007-08 period. The province’s commitment to finding efficiencies has already reduced the overall cost of government administration from 15 per cent in 2003-04 to 12 per cent in 2007-08, the second best efficiency rate in the country.

Quotes

“The world is experiencing economic uncertainties which are causing enormous challenges. It is important for government to continue to take action, lead by example and demonstrate that we are being prudent fiscal managers of taxpayer dollars.”

Dwight Duncan

Minister of Finance

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