Minister Addresses Cape Breton Board of Trade

Finance Minister Neil LeBlanc brought his balanced budget message to Sydney today, March 13. The minister told the Cape Breton Board of Trade that Nova Scotians can expect fee increases and reductions in selected services as the province moves to balance the bottom line.

Mr. LeBlanc stressed that balancing the budget is not an option, it is a necessity.

"A balanced budget isn't an option for Nova Scotia, it is a critical turning point," said the minister. "For the first time since 1962, Nova Scotians will have a budget in which current spending commitments are covered by the current year's revenues. This will boost our standing with investors, increase our credibility as a stable business environment, encourage economic growth and make Nova Scotia a more attractive place to live, raise families and build a future."

Mr. LeBlanc said that the options to achieve a balanced budget are limited to reducing services and increasing fees and recoveries for services. He said Nova Scotians could expect both.

Mr. LeBlanc cited transportation ferries as an example of a costly service that might require a fee increase.

"If you want to ride the ferry at Englishtown or Little Narrows you will pay 75 cents. It's been that way for years, but it is only a fraction of the cost to the province of running the service," he said.

Years of deficit financing has caused the provincial debt to balloon to $11.6 billion. The government owes about $900 million in interest payments on the debt for this year alone. Mr. LeBlanc said interest payments on the debt are the second highest cost to government after health, and more than we spend on the primary to grade 12 school system.

"That just doesn't make sense," said Mr. LeBlanc. "It doesn't make sense to send off hundreds of millions of dollars to foreign banks for interest payments when you consider what we could do with that money. By living within our means we create an environment where our children have choices."

The minister concluded his remarks to the board of trade by emphasizing that balancing the budget is the best thing government can do to secure a promising future for Nova Scotia.

"It's a matter of good common sense, and Nova Scotia values."

The minister did not release a date for the budget. The legislature resumes on April 2.