Paul Wells on the amazing profit margins McKinsey and Company must be making thanks to their booming business with the Canadian federal government under Justin Trudeau:
From Radio-Canada, and not yet translated into English at this hour, comes news that the Trudeau Liberals have paid 30 times as much to the global consulting firm McKinsey and Company as the Harper Conservatives did, even though the Liberals have so far spent less time in office than the Conservatives did.
That’s $2.2 million in nine years under Harper, against $66 million in seven years under Trudeau.
And this chart, which I’ve taken from the Rad-Can report, shows the recourse to McKinsey is accelerating: the company’s take from the feds last year was almost as much as its combined take from all previous years.
Rad-Can reporters Romain Schué and Thomas Gerbet write: “What was the firm’s precise role? It’s impossible to know for sure. [McKinsey] refused to answer our questions … And despite our requests, Ottawa didn’t want to share the reports the firm produced.”
This is only the latest evidence of a massive trend in government in Canada’s federal government, in many provinces, and abroad: the contracting-out of complex problems to private firms that charge a premium; are never around when problems arise later; often produce work of questionable quality; and are too often exempt from even the minimal transparency and accountability that’s expected of work done in-house by the regular public service.
We’re seeing that latter point play out in a Commons committee’s attempts to find out how the ArriveCan app came to cost so much. The app was developed by outside contractors (not McKinsey — today’s Rad-Can story is about McKinsey but the use of contractors benefits many firms), and MPs seeking details have so far received only shrug emojis from the Trudeau government.
This increasing resort to secretive external consultancies impoverishes public discussion about ideas for the future. It is brutally demoralizing to the professional public service, which means it pays nasty dividends by making public-service worse ever less attractive to talented people. It allows timid elected officials to buy a backbone, in the form of a commissioned study supporting their preferred option, and the only cost is the burden on public finances, which elected officials plainly soon learn not to worry about.
