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New Brunswick election shows need to shake up costly status quo

Author: Paige MacPherson 2018/10/01

Fed up taxpayers have demanded a big task of New Brunswick’s new minority government: deal with the province’s economic challenges at the eleventh hour, or be thrown to face the voters again at any moment.

After nearly 100 years of rotating Liberal and Progressive Conservative majority governments, both of whom for years have ignored the mounting debt and repelling tax burden, the province has elected its first minority government since the 1920s.

But here’s the kicker: both the Liberals and the PCs are claiming they have a mandate to govern.

As of now, the PCs have technically won by the narrowest of margins: 22 seats compared to the Liberals’ 21. Two smaller parties – the New Brunswick Green Party and the right-leaning, fiscal-focused People’s Alliance – each won three seats, each potentially holding the balance of power.

We won’t know which party will form government until Liberal Premier Brian Gallant recalls the legislature sometime “before Christmas.” As premier, Gallant has first crack at seeking the confidence of the legislature.

In the meantime, votes in at least two close ridings will be recounted and backroom talks may attempt to pull some MLAs across the floor.

So what are the tasks New Brunswickers are telling their politicians to tackle?

With the lowest employment rate in Canada, it’s a lack of jobs at home.

The debt is overwhelming, projected to hit $14.4 billion by March 2019. That comes with enormous debt interest costs, totalling $700 million last year, flagged by the Auditor General as costing more than the entire Department of Transportation and Infrastructure.

Credit rating agency DBRS downgraded the province’s outlook from stable to negative earlier this year. With no plan to reduce the debt, the Auditor General compared getting a handle on the problem to “turning the Titanic.”

Add to that 10 years of consecutive deficits, prior to a small election year surplus.

The status quo of reckless spending with no money in the bank continued during the election.

The Liberals made 118 spending commitments, planning for higher deficits. Though the PCs campaigned on reducing the size of government through attrition, most of their promises weren’t costed.

Piles of corporate welfare are squeezing job creators out with higher taxes so a taxpayer-funded agency called Opportunities New Brunswick can pick winners and losers.

New Brunswickers pay among the highest personal, business and sales taxes in the country. A family in Saint John earning $75,000 per year pays $2,831 more provincial taxes per year than a family in Toronto, and $1,536 more than a family in Montreal.

Yet services as basic as accessing a family doctor are difficult. A grey tsunami is rolling in, increasing demands on the already-stressed healthcare system.

No wonder taxpayers are fed up.

Election night was a loss for the carbon tax. The PC plan rejected the carbon tax outright and joined the chorus of provinces committed to fighting Ottawa in court. The Liberal plan took a portion of the existing gas tax and renamed it the carbon tax; confident they can persuade Ottawa to accept that.

Both parties should sharpen their defences, knowing they could soon be back to face the voters, who did not endorse the carbon tax.

In some ways, the parties talked the right talk.

Both the PCs and the People’s Alliance took aim at corporate welfare and high taxes. The latter created a wedge out of the French and English duplication in government services such as school bussing.

The Greens called for more responsible budgeting and the Liberals noted the need for economic growth.

The bottom line is that New Brunswick can’t afford the status quo.

Bold policy action is needed. Whichever party forms government needs to fish or cut bait.

 


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