News release

Preliminary Report Released

The Nova Scotia government is being told across-the-board cuts to the public service will not solve the province's fiscal problems.

That's one of the recommendations in a preliminary report released today by Voluntary Planning's Fiscal Management Task Force.

"Our report defines the core government functions and provides a process to properly review each program," said chairman Allan Shaw. "We have to completely rethink the role of government; what it does and what it does not do; if we want to bring the province's finances under control."

Premier John Hamm asked Voluntary Planning to review the province's fiscal situation and to recommend how to achieve a balanced budget. In response to this request Voluntary Planning established the seven member task force in October.

Since then, the Task Force has received almost 700 written submissions from Nova Scotians and heard from dozens of experts on ways the government can best control spending.

"The province will be more than $11 billion in debt by March and paying $1 billion a year to service that debt," said Mr. Shaw. "This has to stop and we think we have provided the government with a guide to do just that."

The Fiscal Task Force proposes the legislation of a Planning and Accountability Framework that calls for improved fiscal reporting, pre-budget consultations, and multi-year business plans with closely monitored outcome measures. This framework is key to the long term success of the Province.

"Legislating such a framework ensures that future governments will continue to be held accountable," said Mr. Shaw.

Some other recommendations of the task force include developing an economic strategy, adopting a ministry concept, full hedging of foreign debt, reduction in the number of agencies, boards and commissions, and reducing the public service using normal attrition.

"We have to strategically reduce while at the same time strategically invest for savings and growth," said Mr. Shaw. "There is no better example of this than Life Long Learning."

Life Long Learning is an initiative proposed by the Task Force that makes education and learning the focal point of our society and the centerpiece of our strategic plan for growth and savings. "Not only will Life Long Learning guarantee our place in the world economy, it will leverage critical reductions in social program spending," said Mr. Shaw.

The Fiscal Task Force will take its preliminary report around the province in a series of public meetings. The meetings will take place from 7 p.m. to 9 p.m. on Jan. 5, in Kentville, Halifax and Truro; Jan. 6 in Port Hawksbury and New Glasgow; Jan. 10 in Sydney and Amherst; and Jan. 11 in Bridgewater and Yarmouth.

The preliminary report and other information is available at http://www.gov.ns.ca/ecor/vp/prtf.