The View from the West

Winnipeg Free Press - PRINT EDITION

NDP claim about cutting deficit is bogus

By: Shannon Martin

Posted: 03/5/2010 1:00 AM | Comments: 0 (including replies)

With the release of the third-quarter financial report, Manitoba finds itself facing a $600-million deficit. Believe it or not, it could have been worse. The government has recently implemented a series of 'belt-tightening' measures such as restricting out-of-province travel, minimizing overtime and refraining from refurbishing office space.

But it also could have been a lot better. The government has been urged to reduce spending or at least restrain spending over the last decade; instead they increased it by over 70 per cent. They were told that those levels were unsustainable, but in response they would pull the what-hospital-are-you-going-to-close card. Now we can see what bunk that argument truly has been. The government is telling us that they have reduced spending in 14 sectors and departments without impacting front-line services.

It's funny how something that seemed impossible suddenly becomes possible. If they had simply reduced annual spending by one half of one per cent, we would effectively have no deficit today.

Imagine if the government can post a $600 million deficit when it's actually trying to "manage spending during these difficult economic times," how completely off the rails we would be if they had remained in 'let the good times roll' mode.

Manitobans should take Finance Minister Rosann Wowchuk's claims that they have reduced the anticipated deficit with a healthy pinch of salt. When we focus on the core government, the real shortfall remains unchanged at just over $600 million and yet somehow despite this massive deficit they still have the nerve to call it balanced. This of course has more to do with changing balanced budget legislation then balancing budgets.

It's also worth noting they continue their use of legislative loopholes to convince us that things aren't that bad. This time, they are excluding $90 million in expenditures related to the H1N1 flu when determining compliance with balanced budget legislation. It's not enough that they gutted the legislation to begin with, eliminating the need for annual balancing and replacing it with a four-year rolling average, but they have to pick at the carcass to see what else they can shake out in order to portray themselves as fiscal conservatives.

At the end of the day, a read of the report will show you one undeniable truth; overspending remains at the heart of this government's problems.

Now we are supposed to sympathize with the government because of the challenges ahead for them as the federal government attempts to balance its own books. Of course the minister of finance in her official press release says nothing about her government's complete failure to reduce our dependence on transfers from Ottawa.

At the end of the day, one should feel about as much compassion for this government complaining about federal cuts as you would for the alcoholic complaining that the bar is closed.

Shannon Martin is the Manitoba director of provincial affairs for the Canadian Federation of Independent Business.

Republished from the Winnipeg Free Press print edition March 5, 2010 A12

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