Phoenix payroll fix may cost billions

OTTAWA— The problemplagued Phoenix payroll system has already cost the federal government more than $1 billion and could require an additional $500 million a year until it is fixed, based on the government’s latest estimate made public Friday.

The majority of future spending is being described as “unplanned” costs and doesn’t include more than $120 million in expected, one-time expenses to stabilize the system that has left countless public servants overpaid, underpaid or not paid at all.

The government’s best estimate is that it could take five years to stabilize the system.

Public Services Minister Carla Qualtrough said she expects the actual costs to be lower given some improvements and pilot projects the government is implementing.

She said the figures in the report are a snapshot from March 2018 and much has changed since then.

“There are so many moving parts on this (that) I’m hesitant to say, yes, that’s what it’s going to cost and that’s how long it’s going to take, because I think we’re going to do it sooner,” Qualtrough said.

The previous Conservative government estimated replacing the previous pay systems with Phoenix would save taxpayers roughly $70 million annually by requiring fewer people to work on pay files.

But the total cost as of the end of March was almost $1.1billion, according to the report.