"Our concerns regarding the true independence of the audit were confirmed this morning when we became aware of the results of this report," said Ms. Thistle. "We have stated all along that the initial audit report confirmed that our deficit projections for this fiscal year were correct. After budget projections were confirmed to be accurate, two figures were added to the final report to inflate the deficit numbers.

"In order to raise the deficit figure, government unnecessarily added a $220 million liability from the student loan program to this year’s deficit for a program that will not be administered by the province until April 2004. It seems that the political manipulation used by this government is the only reason that the deficit figure has changed at all, and this is their method of moving away from their blue book promises.

"Mr. Sullivan wants to blame the Liberal government for the deficit and claims that we were hiding things. I say to Mr. Sullivan that our government, as has been confirmed by senior civil servants and PriceWaterhouseCooper, hid nothing. The only thing that is being hidden is the initial audit report and its conclusion that the accrued deficit of $666 million is accurate.

"It is plain to see that this government has played with the numbers and manipulated them in a manner that served their needs. The fact of the matter is that this province has always faced a challenging financial situation. The Liberal approach was focused on balancing the social needs of the people of Newfoundland and Labrador with our fiscal responsibilities and evoking confidence in our economy. We would not create a social deficit.

"The Tory approach seems much different. We are once again approaching a Mulroney like era in which cutting services is the preferred method of balancing the budget. This province doesn’t need a reduction in services, we need economic growth and changes to the federal equalization system and Atlantic Accord. By suggesting that our economy is in a terrible state, investor confidence will diminish. I suggest government concentrate on this economic development to grow the economy, rather than closing schools, cutting jobs, and increasing waiting lists at our hospitals."