Reflecting on the budget speech, with its grim tidings of increased taxes, deficits and service reductions, it is evident that we have a provincial government at war with itself.
In Opposition, David Alward’s Progressive Conservatives spent four years railing against government spending and promised a more prudent, stringent management of public funds. Now, in their third budget as government, the same party is showing itself unable to combat growing deficits, stimulate a stagnant economy or maintain essential services. In a speech that could not rally enthusiasm from the government benches, Finance Minister Higgs admitted that the Progressive Conservatives had no intention, or political will, to seize control of New Brunswick’s faltering fiscal situation.
“It’s not our fault,” he repeated as he went through the litany of tax increases, budget cuts and half-hearted measures listed in the Budget Speech. “Maybe next year,” he speculated as he described the declining revenues and flat economic projections.
When he was first sworn into office, there was hope that Blaine Higgs, who had earned a strong reputation as an effective fiscal manager in the private sector, would bring a new sense of direction and purpose as Finance Minister. He was considered an astute choice as CFO for an organization with 45,000 employees and an $8 billion budget.
However, it has became more and more evident that Mr. Higgs is the only cabinet minister concerned about New Brunswick’s fiscal situation. In other jurisdictions facing similar situations, such as Saskatchewan in the early 1990s or the federal government in the mid-1990s, being the lone deficit fighter in cabinet did not prevent those governments from succeeding where the New Brunswick Government is currently failing.
The difference is that the Finance Minister in those jurisdictions had the unequivocal support of their First Ministers. Without the leadership of Prime Minister Jean Chretien and Premier Roy Romanow, Finance Ministers Paul Martin and Janice MacKinnon would not have been able to balance their respective budgets and set a positive course for economic growth. Both ministers relied on their leaders to give focus to the budget deliberations and to restrain the spending tendencies of their colleagues.
Unfortunately for New Brunswick, it seems our finance minister cannot count on the support of his premier in the unenviable task of bringing provincial finances under control. Further, it is apparent that Premier Alward will not – or cannot – secure the support of cabinet for the measures that need to be taken.
Rather than the unity needed to set clear goals and take decisive action, we have a cabinet that is divided against itself. This leaves Mr.Higgs in the unfortunate position of tinkering around the edges of government spending, trying to squeeze out marginal savings from process design, while the rest of cabinet sits on its hands. Since they refuse to lead, the cabinet is looking for others to take responsibility for their own inaction, such as the poor example set by Health Minister Ted Flemming with regard to the province’s doctors. Divisions within cabinet are leading to divisions within our society.
New Brunswickers, like Canadians in general, elect governments to govern. Without confidence in their own decisions, governments lose the ability to give confidence to citizens that they are on the right path or have the ability to deliver on the decisions they make.
Whether you are an entrepreneur, a union leader or someone who delivers (or relies on) provincial government services as part of your daily life, this lack of confidence is contagious.
Given the precarious state of our finances, it is also dangerous. It is like careening down a highway without anyone willing to steer the car. There is no good ending to that story.
Premier Louis J. Robichaud was known for saying, “Half-measures plus half-measures equals nothing.” In my opinion, this recent budget shows that we have a half-hearted government of half-measures in New Brunswick today.
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Chris Baker is president of Continuum Research, a Fredericton-based public opinion and market research firm specializing in public policy, public affairs and strategic planning. He was deputy minister for, policy and priorities in the Liberal government of New Brunswick from 2006 to 2008.
This article was originally published in the April 3, 2013 Edition of the Telegraph-Journal
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