Tuesday, March 17, 2009

Here We Go... a look at the future...

Ontario, British Columbia and now New Brunswick and if we think we're insulated here on PEI then I think we're all in for a big surprise. We're very lucky PEI had the PNP program around last year which helped put a lot of money in our economy… but it's my guess that the Government revenue numbers for the first few months of this years are down considerably while the number of funding requests are growing each day…. Mr. Sheridan is going to have a major job on his hands trying to develop a budget... I know I wouldn't want it and I'm pretty damn sure he won't be able to dig out the old 7 1/2% wage cut that was the death of Catherine Callbeck's Government.... we’re sure to see a budget with a deficit number and although my guess is we won't see job cuts this year… something’s got to give so guess is it will be in service fees but don't be surprised to hear job cuts could be coming in the future... and that should get the letters to the editor flowing...
New Brunswick government cutting 700 jobs and increasing debt in budget
The Canadian Press
FREDERICTON — The New Brunswick government is axing jobs and programs, but deepening the debt, with a budget it claims will guide the province through the economic storm. The $7.8-billion package for 2009-10, released Tuesday, adds close to a billion dollars to the province’s net debt, reaching $8.3 billion by 2010. That’s more than $11,000 for every man, woman and child in the province. “The province will face significant deficits and increases in net debt as it confronts the challenges of one of the most significant global economic and financial crises in decades,” Finance Minister Victor Boudreau told the legislature. “We are not alone.” He said Ontario and British Columbia have already projected deficits in the year ahead. But Boudreau said he is confident his province can return to balanced budgets by 2012. When extra pension payments of $300 million per year are included, Boudreau is projecting deficits of about $740 million over each of the next two years, and $510 million in 2011-12. The minister said the province could have a $27-million surplus in 2012-13, but he isn’t counting the pension payment. “While this expense affects the province’s bottom line results, pension plans are designed for the long term and we expect volatility in the short term,” he said. “The government is not prepared to let this extraordinary downturn in the market affect decisions that it makes on the levels of taxation and services . . . and as a result, we have excluded it for purposes of our four-year plan.” The government is reducing taxes, but cutting jobs and programs. Boudreau confirms 700 jobs will be cut from the civil service in the year ahead, and says additional jobs will be eliminated as more programs are reduced. Civil service wages are also being frozen for two years. The minister said over the past few days the province and the New Brunswick Union and New Brunswick Nurses Union have signed four collective agreements that include the wage freeze. The government is increasing fees for a variety of services, generating an extra $18 million. The government is spending $2.3 billion on health care, but is reintroducing ambulance fees that were eliminated by the previous Conservative government. The ambulance fee is $130.60 — the same as the fee charged by neighbouring Nova Scotia. Personal and corporate income taxes will be cut by $144 million in 2009-10, and the number of tax brackets will be reduced from four to two by 2012.

1 comment:

Anonymous said...

Just maybe this time they will take a lead from NB and do layoffs.

Sensible people would think that having a even at 7.5% wage cut is better than being laid off.

But as Callbeck found out when dealing with Government employees the word sensible or thankful do not apply.

These people believe they are protected by divinity from lay offs or wage cuts and they work so hard that they are totally entitled to this and their fat pensions.

Lets hope if Sheridan needs to take tough measures he will do lay offs and NOTHING else.

I can't see why the taxpayer has to be constantly the one who is raped for extra cash every time there are shortfalls.

The pension fund is shorted..who do we call? The Taxpayers.

The employees want a wage hike. Who do we call? the Taxpayers.

There is shortage instead of pay cuts or jobs loses. Who do we call?
The Taxpayers.

Lets for once put the blame where the blame belongs. The biggest expenditure in PEI Government is in employee wages.