Consultancy Firms and Trudeau: A Marriage of Convenience or a Costly Affair?

On what basis do the Federal liberal party of Canada sign a contract with a consulting firm? Probably, if the firm’s CEO has served as an ambassador to any foreign nation or if its principal manager’s son attends the same private school as that of Justin Trudeau’s kids. Sounds hilarious right! But these might be the parameters while getting a consulting contract signed with the Trudeau government in Canada. First McKinsey & Company and now Thompkins Freeman & Company. While the former was headed by Dominic Barton who was Canada’s ambassador to its lovey-dovey nation China, the latter is headed by Canada’s former ambassador to Albania.

It’s no secret how the Canadian government vested their whole heart and soul while working tirelessly in collaboration with McKinsey & Company, and how the firm had a stronghold in the nation from making policies to altering the government’s mindset. The Canadian government relied on the colourful presentations of these shadowy firms and formulated its policies according to their whims and fancies. But, alas the marriage of convenience couldn’t last for long as it was brought to light in recent months.

Now, in a much bizarre and stupid act the Canadian government has hired another consulting firm to examine its own over-reliance on consulting firms. The Federal Liberal Party has been accused of giving out too many contracts to consulting firms, including McKinsey & Company. Prime Minister Justin Trudeau has promised to investigate the claims with the aid of a newly hired consulting firm.

Critics argue that this reliance not only costs taxpayers a significant amount of money but also creates a conflict of interest, as these firms may be providing biased advice to government officials. To address this issue, the Trudeau government has hired a consultancy firm to examine the government’s over-reliance on consulting firms.

The cost of consultancy in Canada is significant. In 2017, the federal government spent over $800 million on consultancy services. Critics argue that this money could be better spent elsewhere, such as on public services or reducing the federal deficit.

Furthermore, there is a growing concern that consultancy firms may be providing biased advice to government officials. These firms are hired to provide expert advice on various issues, such as policy development and program implementation. However, because they are often paid on a project-by-project basis, there is a risk that they may be incentivized to provide advice that is not in the best interest of the government or the public.

This is not to say that consultancy firms do not provide valuable services. They can bring expertise and experience that may not be available within the government. However, there needs to be a balance between the use of consultancy firms and the development of in-house expertise. The government needs to ensure that it has the necessary capacity to make informed decisions and implement policies without relying too heavily on external consultants.

Trudeau also expressed his views on hiring the new consultancy firm.

“I remain confident that the excellent consultants at Thompkins Freeman & Company will work tirelessly, no matter the amount of billable hours, to help us get to the bottom of this conundrum,” explained Trudeau.

“I’m especially confident in this firm since their CEO formerly served as my Ambassador to Albania, so I’m sure he’ll have many insights into ways that government can be run inefficiently,” added Trudeau. “Also their Principal Manager’s son and my own children attend the same private school, but that’s just a fun coincidence.”

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Trudeau has also retained the services of Berkmann Consulting LLP to investigate the phenomenon of government’s inability to perform simple functions due to every capable bureaucrat quitting to make five times more money working in consulting.

The study is expected to take six months and will include a review of the government’s procurement processes, as well as an analysis of the costs and benefits of using consultants. The study will also examine the potential conflict of interest that arises when consulting firms are hired to provide advice on government policies and programs.

The study can be considered as a step in the right direction, as it demonstrates the government’s commitment to addressing the issue of over-reliance on consultancy firms. However, some critics have argued that the study itself is a waste of taxpayer money. They argue that the government should already know the answer to the question of whether it is relying too heavily on consultants and that it does not need to spend money on a consultancy firm to tell it what it already knows.

Like major allegations shaping around the McKinsey firm and Canadian government’s ties. Since Prime Minister Justin Trudeau assumed office, the consulting firm McKinsey & Company has seen an increase in the amount of money it earns from federal contracts to the point where some believe it may have a significant influence on Canada’s immigration policies. McKinsey received $2.2 million in federal contracts during the Harper administration. Compared to that McKinsey has received $66 million in federal contracts during Trudeau’s seven years in office.

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Moreover, the firm was then headed by Canada’s ambassador to China, Dominic Barton, which makes foreign intervention more of a possibility in the country. McKinsey’s potential influence over Canada’s policies is still criticised. From meddling into immigration policies to advising numerous governments on economic reforms and covid pandemic response, the firm had a significant say. When the costly love affair of the Trudeau government and consultant firms got exposed, the regime is hiring another such firm to check the over-reliance. One can only expect such bizarre acts to take place under Trudeau’s watch.

The cost of consultancy is a significant issue for the Canadian government. While consultancy firms can provide valuable services, there needs to be a balance between their use and the development of in-house expertise. The government needs to ensure that it has the necessary capacity to make informed decisions and implement policies without relying too heavily on external consultants.

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