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Tuesday, April 29, 2014

Dire Warning About Future Of Provincial Economy

A new book entitled "Over the Cliff" warns New Brunswick is heading for financial ruin unless tough decisions are made, sooner rather than later.

That dire warning is right on, according to Kevin Lacey of the Canadian Taxpayers Federation. The book was written by the director-general of the Canadian Institute for Research on Public Policy and Public Administration. 

Lacey tells CHSJ News the longer it takes to balance the budget, the worse it will be for the province's bottom line and the less money there will be for things like health and education. He points out paying the interest on the provincial debt is the third or fourth biggest government expense.

The book cites a stagnant economy, bloated government bureaucracy and aging population as reasons for concern.

Lacey also agrees with Finance Minister Blaine Higgs that to even consider getting rid of the shared risk pension plan for provincial government retirees is financial lunacy and irresponsible. The Pension Coaltion has launched a lawsuit against the government in response.