You could almost hear Islanders choke on their spoonful of mashed potato as Premier Robert Ghiz outlined his case for fiscal restraint during his annual State of the Island Speech.
The speech is the premier’s opportunity to lay the groundwork for the spring budget. It is traditionally a good news event. But this time around even Robert Ghiz couldn’t ignore the financial pickle our province finds itself in.
Our collective provincial debt is $2 billion. Our deficit has soared to $73 million (it is likely to hit $100 million by the time the budget rolls around) and after years of squandering record federal transfers the gravy train is coming to a sudden halt.
In response the premier is doing what premiers always do. He is blaming others, namely the federal government. It’s a weak argument. Federal transfers rose from $517 million in 2007-2008 to $553 million in 08-09 and $624 in 2010-2011.
It includes massive increases aimed at helping the province manage its way through the economic downturn of several years ago. In many cases the provincial government was simply irresponsible. A seven year $175 million infrastructure renewal program is wiped out completely. Spent in just 4.5 years. Many of the projects the Ghiz government identified as priorities – like dirt mounds in Borden - were ordinary maintenance and highway construction. Somehow government failed to figure out spewing sewage into Charlottetown harbor should be a priority. Because a new infrastructure program will not be formalized until 2014, important projects, like Charlottetown sewage, will remain uncompleted.
In response to our precarious financial position the premier is proposing an across the board three per cent reduction in programming. Some programs may be cut more, some less. Health care – and its massive waste on items such as electronic health records – will not be impacted.
The premier says government will “act with purpose and discipline” on all spending matters. Well maybe the discipline will be forced upon ordinary Islanders but the premier has shown no inclination to force restraint on his elected officials, on defeated Liberal MLAs, or on friends of government.
Liberals are lining up at the trough as usual.
Is it discipline to squander $60,000 so an ex-Liberal MLA can land an unadvertised job that will do nothing to promote Island tourism?
No it’s patronage.
Is it discipline for the premier to hire the assistant to defeated Liberal MLA Allan Campbell as a special advisor?
No it’s patronage.
Is it discipline for each cabinet minister – including the Speaker of the House for crying out loud – to hire an executive assistant at a likely salary each of $50,000?
We simply can’t afford this level of excess. There is no reason for these positions to exist. Save one.
Patronage.
Take a look at the growing reliance on consultants. We spend tens of millions annually on their services. The waste is extreme and the benefit to Island taxpayers is often of questionable or little value. Too often the consultants are friends of government.
So before Premier Robert Ghiz imposes fiscal discipline on the rest of us, he needs to impose it on himself.
Robert Ghiz was not elected to run one level of government for most Islanders and a patronage speed trough for defeated MLAs, friends of MLAs and friends of the Liberal Party.
Paul MacNeill is Publisher of Island Press Limited. He can be contacted at paul@peicanada.com