Premier Dexter Responds To Economic Advisory Panel Report

Premier Darrell Dexter, today, Nov. 16, responded to the Economic Advisory Panel report that indicated government will have to make tough choices to restore the province to a solid, balanced fiscal standing.

"Government will restore the sound fiscal foundation needed to deliver important government services like health and education, but it will not happen overnight and will require us to make some very tough decisions over the next three to four years," said Premier Dexter.

The Economic Panel laid out three methods to address the financial situation in Nova Scotia: raising taxes; cutting spending; and spurring economic growth.

Premier Dexter said the approach to address the financial situation in Nova Scotia must be fair, balanced and careful not to rely on any one method.

Government will initiate these panel recommendations:

• Create a Premier's Council on the Economy by asking business, labour and voluntary sector leaders to participate. Specific terms of reference for the council will be developed and recruitment will take place shortly thereafter.
• Develop a multi-year fiscal plan that will balance the budget at the earliest possible time, because government is committed to living within its means.
• Spur economic growth, particularly through training and education. Government will promote investment that increases secure jobs, a skilled and dedicated work force and a strong business climate.
• Engage Nova Scotians through a comprehensive consultation process to help people understand the nature and scope of the financial problem. In the next few weeks, government will travel the province asking Nova Scotians questions that will help inform policy and guide government decisions on spending.

The panel also recommends that government not balance the budget until 2012-13. According to the panel, balancing the budget too soon would slow economic recovery in Nova Scotia and destabilize public services.

"I believe the advice from the panel on balancing the budget too soon is sound," said Premier Dexter. "We have information now that no one had six months ago, and I recognize that we cannot balance the budget next year. However what matters now is that we make the right choices based on this information. Promoting recovery and ensuring the stability of public services must serve as guidelines for the speed at which the budget is balanced."

Premier Dexter noted that he remains optimistic about Nova Scotia's future.

"I am optimistic that our province will overcome this difficult challenge and seize this moment as an opportunity to re-shape our future," the premier said. "Government will get Nova Scotia back on a sustainable path and create a province where people can live, work and raise their families."