Carney's bill will change the public service. It's happening.
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By Kathryn May. Reach out: functionary@irpp.org. 

 

Hi everyone,

Mark Carney has a big economic agenda — making Canada an energy superpower and the strongest economy in the G7. He’s finally started talking about how he’ll deliver it.


Focus is the new normal. He expects it from ministers, deputies, staffers, and bureaucrats. His clear priorities could bring back discipline and rigour. But it doesn’t fix the government’s Achilles’ heel: things still move slowly. 


Carney isn’t talking about public-service reform in the traditional sense. No white paper, no task force, no big-bang strategy. But make no mistake: it’s happening. He wants to change how government works. And public servants are going to be tested every which way.


Let’s dig in.


Did you catch that?: Execution will be non-negotiable.
A deputy-minister shakeup?: Watch the key portfolios.
The briefest of briefings: Carney is stopping some briefings cold. 

Power point: Marc-André Blanchard’s turn as chief of staff.

Continuity, control and the clerk: What happens now?
The Charette chatter: The heated debate over a path not chosen.

Mark Carney in front of a row of Canadian flags.

CAUTION VS. ACTION

The signal in the Carney Act

Let’s start with the bill to create One Canadian Economy. It’s about breaking down interprovincial trade barriers and how a shortlist of nation-building projects will be picked and fast-tracked. Think: highways, railways, ports, airports, oil pipelines, critical minerals, mines, nuclear facilities or power grids.

In the chamber

But it’s also a blueprint for doing government differently.

 

Carney hasn’t said “public-service reform” out loud, but the bill’s demands make it unavoidable. He’s not just focused on what gets done — but on how the machinery needs to work to get there. It makes execution non-negotiable.

 

Carney said Canada used to build big — the St. Lawrence Seaway, Expo 67. It used to build fast. Now, he said, we’re bogged down by “arduous approvals” and sequential reviews.

 

“For too long, when federal agencies have examined a new project, their immediate question has been ‘why?’ With this bill, we will instead ask ourselves ‘how?’” he said.

 

That’s a signal.

 

He expects the public service to change how it works: less process, more results. Less caution, more action. Fewer barriers, more execution.

The bill also creates a Major Projects Office — a single federal point of contact to help priority projects through assessment and permitting.

 

It’s a tall order: a major cultural shift from administration to execution. From gatekeepers to doers. Public servants managed to do it during the pandemic, when rules loosened and they were galvanized by the mission to protect the health of Canadians.

 

But this time around it won’t be easy. As one long-time deputy minister put it, this is about a “client-focused approach to delivery” for a system built on managing risk and compliance.

 

“This legislation is a test for us to prove we can deliver. People are excited, but we’ll have to work really hard to do it,” said a senior bureaucrat not authorized to speak publicly.

 

“How do we streamline our processes to be more efficient? How do we actually think about the national interests of the country while recognizing environmental and Indigenous rights? That culture shift is a different way of thinking and focuses on execution.”

 

Here’s how the bill rewires execution:

 

Internal-trade reform. It’s more than a policy fix. Departments will have to work across mandates and jurisdictions and get out of their silos.

 

Faster project reviews. Decision timelines will be cut from five years to two, which demands faster decisions, less red tape, and more urgency.

 

One project, one review. Select projects will undergo a single assessment for federal approval, headed by one minister. It will eliminate duplication between federal and provincial processes and shift focus from compliance to outcomes.

 

Priority override. Projects deemed in the national interest will be fast-tracked. It’s a shift from compliance and box-ticking to enabling growth – and fast.

 

This won’t remake the culture of 360,000-strong public service, but it adds a layer of pressure. Projects not fast-tracked will slog through the usual approvals.

 

And don’t forget: none of this works without real provincial and Indigenous buy-in and collaboration. Public servants can only execute if the path is clear — and no federal bill can guarantee that.

 

SHAKEUP?
The PS, Carney-style

Behind the scenes, there’s no shortage of chatter about how Carney will put his stamp on the public service – and who he’ll trust to help do it.

 

Many expect a shakeup in the deputy minister ranks. They’ll be watching key portfolios tied to Carney’s core priorities: finance, infrastructure, NRCan and any others “where he’ll want to make sure the right people are in those jobs,” says one senior bureaucrat.

 

Insiders say he could be just as unsparing in shaping the public service as he was in selecting his cabinet, replacing ministers he had named just weeks earlier.

 

Right now, continuity matters. With a new cabinet settling in and a packed calendar that includes the June G7 summit and NATO meetings, most expect no big moves until summer.

 

The Committee of Senior Officials (COSO) typically has its annual appraisals of deputy ministers’ performance in June. That appraisal goes to Carney for signoff on bonuses and performance pay.

 

BRIEFINGS
Ready or not, Carney demands answers

Word has spread fast that Carney doesn’t suffer weak briefings. He’s known to cut them short when officials can’t answer his questions — and to call people out when they’re unprepared.

 

The stories get retold, maybe reshaped — it is Ottawa, after all — but the message has landed: come ready or don’t come at all.

 

Everyone’s heard a version: Carney meets with a senior bureaucrat who can’t answer a question. He stops the briefing cold and in so many words tells them to come back when they know their file. Ouch.

 

The risk in that kind of exchange? Officials might start pulling their punches — and stop speaking truth to power.

 

Carney brings a “toughness,” as one senior bureaucrat told me. He expects the clerk and deputy ministers to know their files cold. No vague answers. No promises to follow up. He wants clear answers in the room. “He digs and digs,” said one official. “People will just have to adjust and be ready for that.”

Blanchard

MISSION CONTROL
Blanchard: the PM’s point man

One of the most powerful unelected jobs in government is the chief of staff. As such, Marc-André Blanchard is the PM’s top political adviser, gatekeeper to the centre, and key link between politics and the public service. Public servants, take note: the chief of staff often decides what gets attention, what moves forward and how fast. A key player in execution.

 

Blanchard’s career bridges the private and public sectors. He’s a lawyer, Canada’s former UN ambassador, and most recently an executive VP at the Caisse de dépôt et placement du Québec.

 

He and Carney appear aligned on getting Canada’s institutions delivering again — and restoring public trust. In an April acceptance speech as a Public Policy Forum honoree, Blanchard’s theme echoed the mission of the bill to create One Canadian Economy. He also outlined three “rules of engagement” to turn idealism into action. You can watch or read it.

 

“Every grand plan… to renew our economy or realign our world will demand deep collaboration and even deeper trust. Without that trust, we’re left with talk, the illusion of progress, and none of the results.”

 

End the gridlock. His arrival could also break the bottlenecks that bogged down the latter days of the Trudeau era under Katie Telford, said Michael Wernick, Jarislowsky Chair at the University of Ottawa.

 

“I’m guessing he’ll keep things moving and get things done. He’ll knock heads together — do whatever he needs to do,” said Wernick.

hannaford-1

                     John Hannaford speaks with Policy Options in October 2023. Credit: Fred Chartrand

MEANWHILE…
At the top of the bureaucracy

Canada’s top bureaucrat John Hannaford checks a lot of Carney’s boxes: trade lawyer, former diplomat, once a foreign and defence adviser to a PM, key figure in the CUSMA talks, and deputy minister at both International Trade and NRCan. All core files for a Carney agenda.

 

But he’s Trudeau’s pick. New prime ministers usually name their own clerk — COOs who wear three hats as the head of the public service, deputy minister to the PM and secretary to cabinet.

 

When Hannaford got the top job two years ago, public servants were bracing for a Poilievre win. Some joked he could be one of the shortest-serving clerks ever. But then came the surprise Liberal win – and Hannaford, now three months serving Carney, has already outlived some of his predecessors when governments changed hands. Kevin Lynch replaced Alex Himelfarb within a month of Harper taking office. Trudeau replaced Janice Charette about two months after his win. She was later appointed as Canada’s High Commissioner to the U.K. and in a rare move, she returned for another stint as clerk under Trudeau.

 

Clerks once stayed for years, often across governments. They were the neutral and steady hands running the machinery. Over the last 40 years, as power has centralized in the PMO, prime ministers have increasingly picked clerks aligned with their governing and management style or priorities. They often want people they have worked with before. Continuity has given way to control.

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Janice Charette-1

A BRIDGE TOO FAR?
The Charette chatter that wouldn’t die

Janice Charette came out of retirement to help lead Carney’s transition teams before and after the election. Many bureaucrats say the focused, disciplined rollout is evidence of her influence. Yet persistent chatter had her possibly stepping into a more permanent role — as an advisor or even chief of staff.

 

That sparked debate.

 

For some, a job that close to the prime minister would be a bridge too far for a former top bureaucrat. It risks blurring the line between politics and the public service — and would give fresh ammunition to Conservative claims of a Liberal-leaning bureaucracy. Others say: bring her in. No one knows the machinery better. She understands the levers, the players, what works and what doesn’t.

 

But Charette says she’s done.

 

“I was honoured to support the new prime minister through two transitions,” she said. “Other than tying up a few loose ends, I have no plans to stick around. Time for new people!”

 

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On a scale of zero to 10, how was today's edition? Past editions here. 

Kathryn May

A bit about me. I cover and analyze the federal public service for Policy Options as the Accenture Fellow on the Future of the Public Service. I've been reporting on the public service for 25 years. My work has appeared in the Ottawa Citizen and iPolitics, and has earned a National Newspaper Award. Full bio. X: @kathryn_may. 

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