Fiscal Prudence Outlined in Newfoundland and Labrador Throne Speech

[Newfoundlander]

Every program under review, throne speech reveals

Tories say new formula will be developed for municipal spending

Newfoundland and Labrador announced Monday it will put every program and service it operates under scrutiny, as it deals with a tightening fiscal situation.

In a speech from the throne read by Lt.-Gov. John Crosbie, the Progressive Conservative government embraced a program of cautious spending and "sharpening the focus of the public service." [MORE: Read the full text of the speech from the throne here.]

The review, which will involve every department as well as the regional health authorities, is one of three priorities identified in the speech.

The second priority involves helping people, especially apprentices in the skilled trades, get work in their chosen fields.

"The third is to improve the conditions that give businesses and communities the power to grow," the speech said. The speech said it would help create "a healthy climate" for private investment, but did not divulge many details.

The legislature is opening after a lengthy break. Going into the session, what do you most desire?

A full debate on the Muskrat Falls hydroelectric project

A budget that has common sense ... and no tax increases

I'm a public servant, and I want to know if my job is safe

Debate? Policy? Blah, give me some entertaining mudslinging in question period

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The spending review follows recent comments from Premier Kathy Dunderdale that have signalled a tighter control on spending in the years ahead.

The speech noted that revenues are expected to drop in the next two years because of the end of federal payments under the Atlantic Accord and maintenance-related downtime at two offshore oil fields.

However, the Tories said that drastic cuts are not in the wings.

"To achieve balanced budgets in those two years, the province would need to reduce expenditures so precipitously that critical services could be compromised," the speech said.

Dunderdale instead emphasized a longer-term fiscal plan, which will see all government programs come under review to see if they are needed, and are being delivered appropriately.

Meanwhile, the government indicated that appeals from St. John's Mayor Dennis O'Keefe and others for a new tax regime may be heard, although the speech did not outline many details of what government has in mind.

"My government is developing a new formula for municipal support which recognizes the contemporary nature of municipal governance and is equitable and transparent," Crosbie told the house of assembly.

The throne speech emphasized various government priorities such as the Muskrat Falls hydroelectric megaproject and Dunderdale's aspirations to tackle overcapacity in the fishery.

"The fishery has been studied for decades," the speech said. "To effect change, we need the collective will to come together for a common purpose, to set aside old agendas and work together to address the core problems. My government is there."

http://www.cbc.ca/news/canada/newfoundland-labrador/story/2012/03/05/nl-throne-speech-program-review-305.html

Like most provinces Newfoundland and Labrador's government is planning to reign in spending over the next few years. They've also vowed to start cutting debt at a faster pace.

[TheNewTeddy]

And yet they are in a general surplus (though they might have dipped down below in one or two years due to the recession)

Other governments can take a lesson from this.

[Newfoundlander]

Dunderdale announced 3% cuts across the board on the news tonight.

We've had surpluses for the last two years and deficits for the next two.

[punked]

Newfoundland has the highest debt per capita in Canada, NB will over take them soon but the years of Liberal and Conservative governments have taken their toll. Now that times are good they need to address the debt to gain money in the long run.

[Newfoundlander]

Net debt per capita in Newfoundland and Labrador is lower than Quebec and Ontario. Our's will likely be below Nova Scotia this year, or at least in the next couple of years.

[TheNewTeddy]

Newfoundland has the highest debt per capita in Canada, NB will over take them soon but the years of Liberal and Conservative governments have taken their toll. Now that times are good they need to address the debt to gain money in the long run.

NB?

I thought NS and MB were firmly in second and third? Are things in NB that bad?

edit

Net debt per capita in Newfoundland and Labrador is lower than Quebec and Ontario. Our's will likely be below Nova Scotia this year, or at least in the next couple of years.

Same reaction. QC and ON?

I will do some digging and get back to both of you on the actual numbers, as the three of us seem to disagree. I'll provide a link once I find the results.

Edited March 7, 2012 by TheNewTeddy

[Smallc]

http://blog.scott.tylers.info/index.php?/archives/49-Provincial-Debt-Table.html

[Newfoundlander]

http://blog.scott.tylers.info/index.php?/archives/49-Provincial-Debt-Table.html

That's 5 years old.

Here's RBCs numbers from a few weeks ago.

http://www.rbc.com/economics/market/pdf/prov_fiscal.pdf

[Smallc]

That's 5 years old.

Yes, it is, but it provides a pre recession snapshot, showing how the debt situation was when the economies of the provinces were working normally.

[Newfoundlander]

Yes, it is, but it provides a pre recession snapshot, showing how the debt situation was when the economies of the provinces were working normally.

Some are working normally now.

[Smallc]

Some are working normally now.

Some are yes, but some aren't.

[TheNewTeddy]

These figures

http://www.cfib-fcei.ca/english/article/3216-federal-and-provincial-net-debt-to-pass-1-1-trillion-mark.html

And these figures

http://blog.scott.tylers.info/index.php?/archives/49-Provincial-Debt-Table.html

do not come close to matching, I'm still digging.

I'll look at this

http://www.rbc.com/economics/market/pdf/prov_fiscal.pdf

in a moment

but am looking at this

http://www.stat.gouv.qc.ca/donstat/econm_finnc/conjn_econm/TSC/index_an.htm

right now

[TheNewTeddy]

Yes

http://www.rbc.com/economics/market/pdf/prov_fiscal.pdf

the 2006 figures from here match my recollection. Current figures are...

(in thousands per capita, dollars)

QC 20.1

ON 16.2

CA 16.1

NL 15.9

NS 13.6

NB 12.6

PE 11.9

MB 10.4

BC 6.7

SK 3.5

AB -4.9

[Newfoundlander]

As I said.

[TheNewTeddy]

I made this

http://s1218.photobucket.com/albums/dd408/TheNewTeddy/?action=view&current=debtyears.png

Showing Recessions, Governments, etc.

X is for a bad year, O is for a good year.

[punked]

Yes, it is, but it provides a pre recession snapshot, showing how the debt situation was when the economies of the provinces were working normally.

But the highest debited provinces did the best in the Recession, NS and Manitoba didn't lose much GDP and were able to keep costs down so incured much less debt then the lowest debited ones. Heck NS was able to pay off some of debts for the first time in 30 years last year. The table is useless now.

[punked]

NB?

I thought NS and MB were firmly in second and third? Are things in NB that bad?

Yes things are that bad in Conservative NB. They have been raking up close to Billion deficits the last few years and aren't cutting costs fast enough or making up revenue (Due to corporate tax cuts by Liberals) to the stop bleeding in the near future. NS is on track for a balance budget in a year or so.

[TheNewTeddy]

I made this

http://s1218.photobucket.com/albums/dd408/TheNewTeddy/?action=view&current=debtyears.png

Showing Recessions, Governments, etc.

X is for a bad year, O is for a good year.

Bump for page 2

I wish that they tallied deficits based on revenue, as this is the ability to pay it back.

Example:

http://en.wikipedia.org/wiki/2011_Canadian_federal_budget

Deficit of 12.6%

Debt of 248.7%

[Newfoundlander]

Budget deficit, job cuts to be lower than first forecast

The Newfoundland and Labrador government’s anticipated deficit for the coming fiscal year will be much better than initial estimates, and potential job losses will be lower than first forecast, CBC News has learned.

For months, Premier Kathy Dunderdale has been warning people to brace for a big deficit and a hard-line approach to government spending.

Dunderdale said in March that as many as 800 government contract workers in core departments could be the target of cuts.

And as recently as January, Finance Minister Tom Marshall was talking publicly about a “major deficit this year, potentially of half a billion dollars."

But now sources tell CBC News that the anticipated shortfall has been cut in half. The projected deficit for 2012-13 will be closer to $275 million.

And sources say the job cuts will number in the dozens, instead of the hundreds.

The premier has previously said that all details will be made public on budget day, Tuesday, April 24.

Dunderdale has talked tough on possible job losses, noting that the public service has grown by nearly 2,100 positions in the past eight years of Tory government.

“We need to manage that, because that’s not sustainable in the long run,” the premier said last month.

“Our primary function is not as an employment agency. Our primary function is to provide service to the people of the province.”

The provincial government’s revenue stream will take a couple of hits this year.

Two of the province’s main oil fields will shut down for maintenance. The drop in production will squeeze royalty revenues.

And Atlantic Accord payments — which have swelled the province’s coffers by billions over the past eight years — have now run out.

Last year alone, Accord transfers poured $536 million into the provincial treasury.

http://www.cbc.ca/news/canada/newfoundland-labrador/story/2012/04/20/nl-deficit-jobs-budget-420.html

Edited April 23, 2012 by Newfoundlander

[Newfoundlander]

$776 million surplus for this past year $258 decifit this year. Debt to grow to $8.4 billion.

[Newfoundlander]

http://www.cbc.ca/news/canada/newfoundland-labrador/story/2012/04/24/nl-budget-main-425.html?cmp=rss