January 4, 2010

“BUDGET DESPERATION”

Since the NDP became Government here in Manitoba, it has systematically dismantled the finances of our Province, and it has used their majority in the Legislature to pass laws whenever it needed in a desperate attempt to appear to post a balanced budget when in fact it was running a deficit.

In 2003, the NDP took $203 Million out of Manitoba Hydro just to try to balance the books. Manitoba Hydro did not have the cash to pay the Province, so it borrowed the money to give to the Province. As a result, we have seen hydro rates progressively increase, and you are paying for this mismanagement with increased hydro bills.

In 2004, the Auditor General of Manitoba told Manitobans that the Government was not being honest when it said it had a $13 Million surplus. The Auditor General stated that the Province ought to adopt “Generally Acceptable Accounting Principles” for its Budget, and had those accounting principles been in place for 2004, the Province had actually posted a $604 Million deficit. Because of all the bad publicity that the Government had over that deficit, it took the correct action by adopting those principles in 2007. However, what the Government also did was to add the profits of Manitoba Hydro and Manitoba Lotteries into the equation. Because of this move, the Government’s core operations could run a deficit, but hydro and lottery profits would be used to cover this deficit. If this wasn’t enough, the NDP took the very unusual step by passing Legislation so that it would be now legal to post 3 deficits out of 4 fiscal years. As long as 1 surplus is posted every 4 years it was acceptable, according to the NDP. All of this Legislation was smoke and mirrors. It was designed to take money away from our Crown Corporations and designed so that the NDP could legally spend every nickel and then some. It was also designed to allow the NDP to spend more than it came in without any reprisals from the public. As a result, our debt in this Province increased by the Billions. All of this Legislation was opposed to by the Opposition, but because the NDP have the Majority, it passed.

Just last week we heard from the Minister of Finance who said that the Province is projected to post a $592 Million deficit for the 2009/2010 Fiscal year. When asked on CJOB if the NDP would raise taxes or cut programming, the Minister of Finance replied “everything is on the table.” Mismanagement by this Government will now result in cuts to services, increased taxes and lay-offs.

If the Government wants to save money, start by reversing the NDP’s decision to build the next hydro transmission line down the West side of the Province. That move alone would save more than $640 Million.

If you have any questions regarding this article, or any other issues or concerns in the Constituency, please feel free to contact me Toll Free at 1-866-989-6633 or 832-6633,write to me at 5423A Portage Avenue,Headingley,MB,R4H 1E5 or email me at Mavis.Taillieu@leg.gov.mb.ca.