Opposition Leader Gerry Reid says today=s provincial budget signifies that an election is just months away, as goodies and expenditures were targeted at various groups and individuals throughout the province. 

AThis was certainly an election budget and it is obvious government is trying to buy votes with people=s money in preparation for October,@ said Mr. Reid. AThere were good initiatives in the budget that came about because of constant lobbying from groups such as those with Multiple Sclerosis who dragged government into these announcements kicking and screaming. 

AThe premier achieved many of the savings needed for these initiatives on the backs of the people of the province over the first few years of his term by gutting the public service and fee increases. As a matter of fact, he increased fees by $26 million in 2004 and has decreased them over two years by $5 million and tried to claim it as good news. There is still no reduction on driver license or ambulance fees. 

AThe premier is also living on Liberal initiatives such as Hibernia, Terra Nova, White Rose and Voisey=s Bay. There is nothing in this budget resulting from the premier=s own initiatives that are generating  income. There are very few concrete initiatives that will create new jobs, economic activity or address the issue of outmigration or the destruction of rural communities. In fact, our GDP growth is expected to slow significantly because this government has done nothing to create new economic opportunities. 

AIn government=s own projections, population figures are down; the value of fish landings is down; newsprint shipments are down; value of manufacturing shipments are down; housing starts are down; and vehicle sales are down. Today=s budget, while providing tax relief, does not generate opportunities that will keep people at home in Newfoundland and Labrador.@ 

Reid noted that some other high profile issues were not addressed. There was no tax relief on home heating fuel or electricity; highways depots remain closed; the 15 per cent insurance tax remains intact;  and there was no indexing for public service pensioners. 

AThere are good initiatives and investments in this budget, and many people will appreciate the income tax decreases. However, Premier Williams is going to have to generate some of his own economic activity if we are to sustain ourselves and create new opportunity in the coming years.@