[EXCERPT] Richard Saillant , director general of the Canadian Institute for Research on Public Policy at the Université de Moncton, said terms like “rationalization,” “optimization” and “asset management” are techno-speak for big changes including closures and the re-purposing of public buildings and services. ** He said the province also must look at ways to grow the economy, and he believes shale gas development should be part of the equation. ** - Saillant, whose 2014 book Over the Cliff ? focused attention on New Brunswick’s fiscal crisis. DG JAN 24 Tough conversation to follow fiscal warning: Gallant says government determined to fix finances CHRIS MORRIS LEGISLATURE BUREAU Premier Brian Gallant says the latest warning about the province’s dire fiscal situation strengthens the government’s resolve to have a“very tough conversation” with New Brunswickers about what needs to be done. Gallant reacted Friday to the report this week from auditor general Kim MacPherson who warned that the soaring debt, a structural deficit and deteriorating infrastructure are not sustainable and may put the province in the position of being unable to meet its financial obligations. Gallant said his Liberal government’s priority is to “fix the finances.” The government has launched a strategic program review to figure out how it can find an additional $500 million to $600 million. Public consultations that are part of the review begin on Monday. The first of 14 hearings will be on the Acadian Peninsula. “We want to do a lot of this by creating jobs and growing the economy – that will help us get the revenues we need as a province to not only fix the finances but also to ensure the fiscal capacity to invest in social programs,”he said. “We are very cognizant of the fact we will have to look at government expenditures as well. That is why the program review – while it will be a very tough conversation to have with New Brunswickers – is necessary. We believe that if we do it properly … we will be able to tackle these problems together.” Gallant said the fiscal situation also is weighing on the government’s decision about when to release its budget for the coming year. The federal government, shaken by the effects of plummeting oil prices, has delayed its budget at least until April. Gallant said the provincial government has to balance its need to start dealing with the fiscal situation as soon as possible with its need to know about Ottawa’s spending plans. “It could be delayed,”the premier said of the New Brunswick budget, which usually is brought down in late February or early March. MacPherson said in her 2014 report on New Brunswick’s financial performance that the province is caught in a fiscal crunch between rising debt and a stagnant economy. The auditor general said the fast-growing debt, now approaching the $12-billion mark, has mushroomed by close to 70 per cent since 2006 and may affect the province’s ability to borrow money in the future. She also cautioned that pouring money into infrastructure will not solve the problems associated with aging highways, schools and hospitals. Mac-Pherson said the province needs a comprehensive, long-term plan that would include“rationalization of assets”and a 20-year planning horizon. Richard Saillant , director general of the Canadian Institute for Research on Public Policy at the Université de Moncton, said terms like “rationalization,” “optimization” and “asset management” are techno-speak for big changes including closures and the re-purposing of public buildings and services. “I think it is technocratic-speak for transforming the way we deliver service to make them more efficient and less expensive,”Saillant said in an interview on Friday. “It is inevitable. The issue to me is that as a result of the coming pressures on health care related to the aging population, we will have to invest in health services but we will need to free up resources elsewhere. That will probably involve painful decisions that affect communities.” He said the new government sounds “firm” on the fiscal situation and he believes it understands the precariousness of the economy. Saillant said the public consultation process and the program review are clearly attempts by the government to get public buy-in for the tough decisions that are coming. “It is important for people to weigh in and for the government to find some sort of a buy in,”he said. For his part, Saillant said one of the things the government must consider is increasing the harmonized sales tax – preferably taking it back to the 2006 level of 15 per cent. The HST currently is 13 per cent in New Brunswick and 15 per cent in Nova Scotia. “I know it is not a popular thing to say, but we need to pay for the stuff that we want in this province,” said Saillant, whose 2014 book Over the Cliff ? focused attention on New Brunswick’s fiscal crisis. “We don’t have a lot of wiggle room on taxes here that is why I am arguing we should just bring back the HST to where it was nine years ago. It may sound unaffordable to some but we can find ways to mitigate the impact for those with low incomes. Unless we want less in public services, we have to come to the realization we have to pay a little more in taxes.” ** He said the province also must look at ways to grow the economy, and he believes shale gas development should be part of the equation. **
Posted on: Sun, 25 Jan 2015 22:27:17 +0000
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