News Release
Office of the Official Opposition

 

 

Grimes disappointed with budget

Government plays with numbers to create a false deficit

March 21, 2005

Opposition Leader Roger Grimes says he is disappointed with the provincial budget brought down this afternoon by Finance Minister Loyola Sullivan. Grimes says a number of necessary investments were not made and he is shocked that government decided to put their $103 million surplus on two long-term debt initiatives to create a cash deficit.

"This budget is a huge letdown," said Mr. Grimes. "Today’s actions by this government is nothing more than a blatant attempt to lower the expectations of the people of the province. Since taking office, this government has continuously overstated the size of the debt and the deficit. They have continued this trend today by intentionally misleading the public into thinking that the province has a cash deficit this fiscal year.

"This government actually had a cash surplus of $103 million this fiscal year and decided to spend this money repaying the long-term debt of the Newfoundland and Labrador Education Investment Corporation and the Newfoundland and Labrador Heritage Corporation, a payment scheme totaling $117 million. These payments were not included in last year’s budget and no advance indication was given that this amount of money would be spent during this fiscal year to pay these long-term debts.

"Instead of making key investments in a number of initiatives, this government missed an opportunity to better the lives of many Newfoundlanders and Labradorians. I ask the minister why he feels the Cancer Clinic in Grand-Falls Windsor is not a worthy initiative? Why is the Mealy Mountain auditorium in Happy Valley-Goose Bay not a worthwhile investment? Why was this surplus not used to expand Leary’s Brook Junior High in St. John’s? What justification can the minister provide to Alzheimer’s patients who have been waiting for necessary and compassionate treatment drugs? Why is government still going eliminate at least 145 teaching positions?

"While there is some good news in today’s budget, there was much more opportunity to fund necessary initiatives for Newfoundlanders and Labradorians. Very little of this funding actually comes directly from provincial sources. Most of today’s announcements are funding through the federal government, including the federal-provincial health care agreement and the new equalization funding. Without this funding, there would have been very few positive announcements.

"Government has also once again recycled many of their announcements and have tried to convince people that their cutbacks are actually investments. In education, they announced that the Kids Eat Smart Foundation was going to receive a $250,000 investment, this is actually a 50 per cent reduction from last year’s funding. The minister is trying to suggest that 75 new teaching positions are being added to the classroom, when there are actually at least 145 teaching positions being eliminated. Ten million dollars is being set aside for new school expansion for three schools ,when one of the schools, Herdman Collegiate, needs this full amount to complete their necessary expansion. They have also given the impression that they are committed to Labrador, when they have once again failed to provide funding for the Mealy Mountain Auditorium.

"There is certainly a large amount of fluff in this budget, but very little in the way of long-term concrete announcements for the people of Newfoundland and Labrador. If the people of the province take the time to review these documents, I am certain they will realize there are many examples that demonstrate that this is a budget falls well-short of the mark."
 

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