News Release
Office of the Official Opposition
 

Why is the Premier presenting a false financial picture?
March 10th, 2004

Opposition Leader Roger Grimes is asking Premier Williams to justify his comments regarding the amount of interest government pays to service the debt each year. In his state of the Province address the Premier stated, "Out of our annual $4.2 billion budget, we now spend more than a billion dollars a year to pay for the interest on our debt." Information recently received under the Freedom of Information (FOI) Act clearly shows that this statement was false and misleading.

"The information we have received from the Department of Finance confirms that the money government will spend to pay interest on the debt for fiscal year 2003-04 is $551.5 million," said Mr. Grimes. "This is almost half of the figure the premier used during his state of the province address. We do not spend $1 billion a year on interest payments to service our debt. How can he justify such comments?

"We have also received a breakdown of the financial institutions and lending agencies to whom this money will be paid. These are factual figures and show a detailed breakdown. It raises the question as to why the premier deliberately told the people that the amount was almost double the actual figure.

"I am disappointed that the premier has used this tactic in an effort to mislead the people of the province. It makes it that much more difficult to work with his government in an effort to solve our financial problems when he is not being honest with the people.

"I am calling upon the premier to acknowledge the real interest payment circumstance in the province and return to a more reasoned, practical approach to working towards a balanced budget. Inflating numbers to justify taking away $5 a month from our pensioners is not an acceptable approach."

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477