Finance Minister Addresses Yarmouth and Area Chamber

Organizations that spend Nova Scotia taxpayers' money are going to have to be more accountable, according to Finance Minister Neil LeBlanc.

Mr. LeBlanc told the Yarmouth and Area Chamber of Commerce today that third-party entities, such as school boards and district health authorities, may be arms' length from government, but they are funded by the taxpayer and are accountable to government.

"Of the $4.3 billion government spends on programs and services, $2.8 billion goes to municipalities, universities, schools and hospitals," said Mr. LeBlanc. "That means 65 per cent of our programming budget -- and $2.8 billion of your tax dollars -- is handed over to third parties to spend on your behalf."

He said that government, in co-operation with health authorities, has made some progress in that regard, but greater scrutiny is required.

"District health authorities now submit annual business plans to the Department of Health," said Mr. LeBlanc. "They are accountable to us -- and we are accountable to you. But recent events mean that even more accountability is necessary. When you're dealing with hundreds of millions of dollars, one thing is clear -- we need to know what's happening and we expect to find out when we ask."

Mr. LeBlanc also said a combination of reduced spending and increased revenue will be necessary to balance the upcoming budget.

"Nova Scotians can expect the spring budget will mean higher fees for some services and reductions and elimination of selected programs and services."

He said it is important for Nova Scotians to understand the significance of balancing the budget and why it should not be postponed yet again.

"Forty years of deficit financing doesn't come cheap," said the minister. "We're paying close to $900 million a year in interest payments on a debt that tops $11.6 billion. Another deficit just means more debt, more interest and ultimately less money for hospitals, schools, roads, or anything else."

The 2002-03 budget will be introduced in the legislature this spring.