Prudent fiscal management? ...... "Horse Manure!"

Yesterday the Finance Minister, Colin Hansen brought down the provinces budget --- and in doing so he said:

“We’ve come through a seismic shift in the global economy and we are emerging much stronger than other places around the world.  Business and consumer confidence are growing.  We have a solid foundation for job creation, business development and improvements in health care, education and social services.  B.C.’s future looks bright.”

BC’s future looks bright???  If our future is looking so bright, then I for one would like to know why the provincial debt is headed for $60 BILLION dollars.  The “Honorable” Finance Minister, Colin Hansen, also stated that: 

“Budget 2011 stays the course, keeping the focus of protecting health care, education and social services as British Columbia moves towards balanced budgets beginning again in 2013.

Protecting health care, education, and social services???  Mr. Hansen, would you care to tell us what the interest payments alone are on a debt of $60 BILLION dollars??  Perhaps some of you are saying $60 BILLION dollars – come on Alan, you're making that up. 

Okay, I am not a Chartered Accountant, or any kind of official manager of money, so with that in mind let’s take a look at what the Canadian Taxpayers Federation had to say just 12 months ago. 

“B.C.’s Liberal government was elected on a platform of fiscal responsibility and started off well. Between 2001 and 2004, government spending hovered around $30 billion per year.

The government commendably reduced the debt from almost $38 billion in 2003 to $33.4 billion in 2006. However in 2005, spending restraint started to fly out the window – a result of that dreaded second-term spending disease that seems to infect governments at re-election time.

Spending rose steadily to $40 billion in 2009 and is expected to hit $42 billion in 2011. This could send the debt to almost $60 billion by 2013, practically double its 2006 level.”

We are spending 8 MILLION dollars a day just to pay the service costs on the debt.  You do the math … $8 million per day x’s 365 days = $2,920,000,000. 

YES THAT IS CORRECT --- Two billion, nine hundred and twenty million dollars a year. 

And where does this money come from?  Well the BC Ministry of Finance website states the following, which you can read by clicking HERE.

Where does all this money come from?

The province’s borrowing requirements are expected to come from the domestic capital market, with a smaller portion of funds sourced from international markets.

The province raises funds from various international capital market sources depending on market conditions and the ability to secure the lowest cost of funds.

By diversifying its borrowing sources away from the traditional domestic market, British Columbia is able to tap international demand for its debt securities. Typical investors include pension funds and insurance companies.

Sorry I’m confused … first they say mostly domestic markets --- but then they go on to say they are diversifying and taping international markets.  Would that be China perhaps??

So let me see if I have this straight; the NDP were kicked out in 2001 because they were driving the province into financial ruin by increasing the debt to 30 billion dollars.  Okay so then in 2001 we elected the Liberals who in 10 years, if I have it right, are about to double that 30 billion in debt to 60 BILLION dollars – according to NOT ME but the Canadian Taxpayers Federation.

Let’s take a look at the governments own “Debt Summary – Budget and Fiscal Plan – 2011/12 to 2013/14”.

The provincial Debt Summary shows Total Provincial Debt in 2010 / 11 at $47 billion 281 million dollars … in 2011 / 12 it rises to $53 billion 500 million dollars … increasing again to over $57 billion dollars for 2012 /13 … and then UPWARDS AND ONWARDS to $60 billion 355 million dollars.

AGAIN … remember these figures are from the BC governments own Ministry of Finance!

$60 BILLION DOLLARS is money that could and should be going to the top concerns of British Columbian's … concerns which include Health Care, Education, and Social Services.  And where will it be going instead??  It will go to those domestic and foreign bondholders to pay the interest on the debt.

It’s time to wrap this up, but as I do, I will close with a bit more from the Budget Speech delivered yesterday (February 15^th) by Finance Minister Colin Hansen.

“This budget sets no new directions, but provides a strong foundation for future leadership to build on. As the world finds its way out of a significant economic downturn, the Province is well prepared to make the most of new opportunities for job creation and business expansion. Temporary deficits in tougher times allowed the Province to maintain services while creating tens of thousands of jobs without reducing spending on priority programs. But as the world economy starts to improve, the provincial government is on course to eliminate the deficit and protect its strong credit rating.”

The government has said that keeping public debt under control will position BC to return to balanced budgets more quickly than other provinces … through prudent fiscal management. Well I for one say, "Horse Manure!"

I don’t know about you, but if increasing debt to $60 billion dollars in just ten years is prudent fiscal management, maybe we weren’t so bad off with the NDP after all.  That said however, what we now need is a government committed to being accountable and responsive to the citizens of BC ... a government in Victoria led by the BC Conservative Party.

I’m Alan Forseth in Kamloops, and those are the thoughts of one conservative.