Premier Committed to Addressing Fiscal Instability, Op-ed

NOTE: The following is an op-ed piece by Premier Darrell Dexter.

When this government first took office, an independent review of the province's finances was ordered. This was done so that government, and all Nova Scotians, could see the true state of the province's books.

That review demonstrated for the first time that this province has a significant deficit. We do not have the revenue to pay for the services we deliver. This province is on an unsustainable path.

After that report, I asked a panel of economic advisors to examine how best to deal with this challenge. The economic panel has laid out three methods to address the situation: raise taxes, cut spending, and spur economic growth. The panel made it clear in its report that growth in spending is outpacing growth in revenue.

Every day the situation adds more to the provincial debt burden. The heavier that burden gets, the more insecure the support for vital public services like health care and education becomes.

Government has the responsibility to deal with this serious problem and it will. I have carefully read the report and am committed to addressing the problem of fiscal instability in Nova Scotia.

Government will:

• create a Premier's Council on the Economy asking business, labour and voluntary sector leaders to participate
• develop a multi-year fiscal plan that will allow for a balanced budget at the earliest possible time
• spur economic growth, particularly through training and education
• engage Nova Scotians through a comprehensive consultation process to help people understand the nature and scope of the financial problem.

The panel also points out that balancing the budget too soon would slow the economic recovery and destabilize public services. And I believe that advice is sound. We have information now that no one had six months ago. I recognize that we cannot balance the budget next year.

However, what matters today is that we make the right choices based on the information we have. Promoting recovery and ensuring the stability of public services must serve as guidelines for the speed at which the budget is balanced.

Even faced with such challenging advice, I remain optimistic about Nova Scotia's future. By working together, I know that Nova Scotians, from one end of the province to the other, will seize this unique opportunity and ensure that Nova Scotia delivers stable public services, lives within its means, and is a great place for people to live, work and raise a family.