Newfoundland and Labrador throne speech sets course through fiscal mess

“We are determined to embrace what some may deem a crisis as an opportunity to do better with less,” Fagan read.

“As a province, we have had to come to terms with the unprecedented fiscal situation before us, and it has not been easy. We faced the very real risk of losing the ability to borrow to pay for the programs and services government provides.”

The speech also takes aim at the almost $12-billion Muskrat Falls hydroelectric project that was estimated at half that cost when the previous Tory government approved it in 2012.

“We are in too deep,” the throne speech said of the over-cost and delayed hydro development in Labrador.

“Cancelling the project is not feasible and it would put more financial burden on the people of the province.”

Premier Dwight Ball would not tip his hand outside the legislature when asked if more spending and job cuts are coming in the next provincial budget, slated for April 6. He stressed the government has shown it’s serious about streamlining after announcing it would eliminate 287 management jobs.

“I’ll say the province is in much better shape this year than it was last year,” he told reporters. “We’ve been able to secure the footing of our province.

“We want to get back to surplus in seven years and we’re still on target to do that.”

Back in the legislature, Ball railed against the former Tory government, accusing it of “shameful” mismanagement before losing power in November 2015.

“They did not plan for the future,” he said of what he called the Tories’ delusional assumptions that oil prices would stay indefinitely high.

NDP opposition member Lorraine Michael said low-income people in the province have borne the brunt of last year’s budget, with its broad tax and fee hikes on everything from gasoline to books.

“Ask seniors if they’re doing better with less,” she said of cuts to dental care and other supports.

The 2016 budget also imposed an income-geared “deficit-reduction levy” on anyone earning $50,000 or more, which will stay in place until the end of the 2019 taxation year.

Auditor general Terry Paddon reported last November that most economic indicators in the province are deteriorating as major projects, such as the Hebron offshore oil development, wind down.

Long-term forecasts suggest a 13-per-cent drop in employment by 2020 affecting more than 31,000 earners, he said.

“Measures to reduce the significant deficits expected over the next seven years will impact services throughout the province and will affect every resident,” Paddon said.

NDP Leader Earle McCurdy said cutting public spending at a time of recession will make a bad situation worse.

“We’re in a tough spot but that’s not the solution.”

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Follow @suebailey on Twitter.

Sue Bailey, The Canadian Press

by Canadian Press

Newfoundland and Labrador throne speech sets course through fiscal mess

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