The Department of Veterans Affairs is planning to cut over $222 million from its budget over the next two years, a move that some believe will have a huge impact on employees in Charlottetown.
The cuts are outlined in the department's plans and priorities report, which details spending and programming plans up to 2014.
The biggest budget reductions will be in compensation and financial support for ex-soldiers.
The report discusses "significant demographic shifts in the Veteran population," with many Second World War and Korean War veterans passing away while new, younger vets are emerging from current conflicts with challenges much different than the department has traditionally tackled.
"This document forecasts a reduction of spending," Veterans Affairs spokesperson Janice Summerby wrote in an email to The Guardian.
"The sad reality is that the number of Second World War and Korean War veterans and survivors of "traditional" veterans is declining and we anticipate a corresponding decrease in the number of this group who will be accessing benefits from Veterans Affairs Canada."
While no staffing reductions are mentioned in the report, some believe this will be the inevitable next step.
The current cuts don't include those that will come from the Harper government's current Strategic Operating Review that is looking to slash five to 10 per cent of spending in all departments and agencies.
The VAC's budget is roughly $3.5 billion a year.
Charlottetown MP Sean Casey said Monday he believes the current cuts will have a negative impact for employees of the Veterans Affairs headquarters in Charlottetown.
"This is really bad news," Casey said in an interview. "Charlottetown will be impacted. No question about it."
He said the buzzword "transformation agenda" has been circulating within the department, referring to a decentralization of services from the Charlottetown offices into individual military bases.
"They deny to me that ‘transformation agenda' is code for cuts... but what that means is, we're going to be seeing less in Charlottetown and more on the military bases across this country, so big changes are afoot for Veterans Affairs Canada under this government," Casey said.
"I'm extremely concerned that we're going to see a significant downsizing in the short to medium term at Veterans Affairs headquarters."
No one from the federal department was made available to The Guardian for an interview, but an email response did mention a commitment to the Charlottetown headquarters.
"The department will continue to ensure it has the right people with the right skills in the right places to meet the needs of veterans of all ages. That includes maintaining its important presence in Charlottetown," Summerby wrote.
Liberal P.E.I. Senator Percy Downe echoed Casey's concerns.
Downe pointed out that at least one VAC job was already moved out of P.E.I. when the director of communications position was recently transferred to Ottawa.
He believes this is just the beginning of other jobs that will be either cut or moved out of P.E.I.
The VAC employs over 1,300 people, mainly at the headquarters in Charlottetown, with a payroll of over $100 million.
"You take that $100 million payroll and you reduce it significantly on P.E.I. and you're affecting everything from tickets for the Rocket hockey game to restaurants to car and housing sales," Downe said.
"This would have a tremendous impact on the P.E.I. economy."
The department said none of its planned spending reductions would negatively impact veterans or their families.
I am a former federal government employee who has also worked in the private sector. I worked harder for the feds than I ever did for any private company and I had to account for every single moment of every single day I worked. I had to request a day off weeks in advance, so I didn't just come and go as I pleased. I paid into a pension for 34 years and when I reached an age where I could get the Old Age Pension, the federal goverment clawed back what citizens who work for private industry are permitted to keep. I had to study hard constantly, and also had to deal with a multitude of politicians who changed everything everytime there was an election or cabinet shuffle. I had to take a lot of 'garbage' from people who thought I was personally responsible for making the laws instead of just administering what the government decided to bring into law. I paid for my benefits. In fact I received less than 50% if the gross income I was supposedly paid. I was not paid what I was worth because I am unilingual English and do not have a degree. I don't feel sorry for the people who complain that they have to compete with government for decent employees. In fact, I like to ask them why they think they should. If they are treating their employees with respect, as I was when I worked for private companies, then I would have decent employees who worked because they found joy in working for an employer who treated them more like humans than cattle. As for as cheering for the cut in budget for VAC, it is the veterans who will suffer most with longer waits, etc. Maybe some of the cuts are to benefits for vets. Maybe they will move VAC out of PEI and who will buy the houses built by their staff? Who will buy luxury cars, support theatre, restaurants, retail stores, etc.? Might be a handful, but certainly not as many because the salaries in a head office are substantial compared to what people on PEI make. Don't forget, a lot of the people working there are mobile and they will leave with their salaries. Politics? Possibly, but not likely. Just a fact of life. You have NO idea just how hard it is to be a government employee. You have no idea what joy it is to work for a local business owner who treats you with respect for $11 an hour with free coffee for a benefit..