Whatever Kevin (Krueger) thinks, many are INDEED concerned with the downgrade ... and much has been written about it by mainstream media

Kamloops South Thompson BC Liberal MLA Kevin Krueger

For some reason, my friend Kevin Krueger (and Kamloops South Thompson BC Liberal MLA) keeps insisting that all is well with the provinces finances, that they have a handle on the annual and ongoing budget deficits ... and that we should have no concerns about the doubling of debt.

I ... and many others ... would beg to differ.

Kevin on the other hand has gone so far as to say, and I quote:
The BC Conservatives have never done a positive thing for B.C. I have yet to see an apology from John Cummins for the lie he published about BC's Triple A credit rating; we still have it; it is the highest rating in the world, and our interest rates are COMPLETELY UNAFFECTED by Moody's debt warning. All the BCC's have ever accomplished is to elect NDP MLA's.

For starters I MUST remind Kevin that the BC Conservative Party has really only come back to the forefront of BC politics in the past 2 years -- so we have actually played NO role in NDP MLA's being elected.

Those reading Kevin's comments may or may not agree with him -- its up to you. That said, BC Conservative Party leader John Cummins was quite clear in his thoughts on the downgrade of BC's credit rating by Moody's:

“Shocking” was the response last evening from John Cummins, leader of the BC Conservatives, as Moody’s Investor Service downgraded British Columbia’s credit rating to Aaa negative.  “BC’s debt is rapidly rising, even as our economic growth is dramatically slowing.  Meanwhile, the BC Liberals are spending tens of millions of taxpayer dollars on feel-good, pre-election advertising in the hope they can mask British Columbia’s deteriorating fiscal problems.”

The Moody’s down-grade of B.C.’s debt was accompanied by a sober assessment of the province’s economic and fiscal position.

1) The province’s net debt has grown from “roughly” 65 per cent of revenues in 2008, to 82 per cent in the current fiscal year. That number is expected to grow to approximately” 94 per cent by 2014 / 2015.

2) The fiscal deficit for 2012/13 is forecast to grow by at least 50 per cent (from less than $1.0 billion, to nearly $1.5 billion) – or 3.5 per cent of revenues

3) BC’s economic growth is slowing (according to B.C.’s Economic Forecast Council), to an expected 2.1 per cent in 2012, and 2.2 per cent in 2013.

“B.C.’s total debt will double in just over a decade under the BC Liberals from $33.8 billion, to $66.4 billion,” said Cummins.  “Now, as a result of the credit down-grade, our borrowing costs will rise ever higher. Even though the BC Liberals claim to be superb economic and fiscal managers, the evidence clearly proves otherwise.”

Well of course my Liberal friend Kevin wasn't going to see eye-to-eye on that assessment.  His retort was that:



The first sentence of the last paragraph is a flat lie. There was no credit downgrade. There was a debt warning, and Moody's affirmed that our interest charges), i.e. "Borrowing costs," will NOT rise.

Whatever Kevin thinks, many are INDEED concerned with the downgrade of our credit rating by Moody's ... and much has been written about it.  The strongest of course from media that many would consider to have a left leaning slant like the Tyee --- but what about mainstream media?  What did they have to say?  Here's a sampling:

CBC:  "BC's debt rating downgraded by Moody's"
The prominent credit rating agency Moody's Investors Service has downgraded B.C.'s financial outlook, lowering the province's debt rating from stable to negative.  Moody's says the downgrade reflects B.C.'s worsening financial situation.

Business in Vancouver:  Moody's downgrades B.C.'s outlook to'negative'
"The negative outlook reflects Moody's assessment of the risks to the province's ability to reverse the recent accumulation in debt with the softened economic outlook, weaker commodity prices and continued expense pressures," said Jennifer Wong, Moody's assistant vice-president and lead analyst for BC.

Vancouver Sun:  "BC debt outlook downgraded byMoody's"

Moody's Investors Service has downgraded the outlook on BC's debt to "negative" from "stable", it announced Wednesday.  The agency said B.C. continues to maintain its Aaa rating, but said the reduced outlook reflects the impact of weak natural gas prices, a slowing provincial economy, and a growing projection for the B.C. deficit.

Presenting the province's second quarterly results last month, Finance Minister Mike de Jong said falling revenues meant the projected deficit had grown by 50 per cent in just six months. De Jong said at the time that this year's deficit is expected to reach $1.47 billion. In February, his government projected a deficit for 2012-13 of $968 million.

The Province:  "Moody’s changes outlook on BC’s AAA creditrating from stable to negative"

... the company has changed its outlook on BC’s debt credit rating because of the risks the province faces in trying to check the rise in debt in the face of a softening economy and weaker commodity prices.

The bottom line is that no matter what the BC Liberal Party has to say, our economic well-being is at risk after numerous consecutive deficit budgets ...  and NO LESS THAN A DOUBLING of the province debt.

The BC Liberals, in my opinion, are no better stewards of the financial resources of our province, than the NDP government they took over from.

We need government to spend smarter -- NOT spend MORE.  That's what the BC Conservatives are committed to doing, as part of the common sense change they hope to bring to Victoria following next May's general election!

I'm Alan Forseth in Kamloops, with the thoughts of one conservative.  The floor is now open for you to share your thoughts.