Premier Robert Ghiz has spent much of 2009 defending his government's handling of the Provincial Nominee Program and it appears the Island premier is growing tired of the barrage of questions.
In his annual year-end interview with The Guardian, Ghiz criticized the Opposition Conservatives and the media for their persistent questioning on the immigrant investor program - particularly the involvement of MLAs.
"It's unfortunate that you raise the issue of MLAs," Ghiz said.
"They have followed the conflict commissioner to a 'T'.
The conflict commissioner has come out with really a scathing report against the media and against the opposition for really attacking these people for following the proper channel. I think you're not really reporting what the facts are."
Everybody, said Ghiz, has accessed funds from the program, including Liberals, Progressive Conservatives and New Democrats.
"You like to focus on people that perhaps are connected to our political party," the Island premier said.
The Provincial Nominee Program or PNP is just one of the many questions Ghiz discussed with The Guardian during his hour-long interview, which will be broadcast on EastLink TV Dec. 29 and again Dec. 31 at 7 p.m.
Ghiz also discussed the proposed blockbuster deal to sell NB Power to Quebec and its implications in P.E.I., the overhaul in education, including the closure of eight small schools and the prospects of a cabinet shuffle in January.
Ghiz also defended Brooke MacMillan, the point man on the PNP file, a man he has refused to fire despite repeated calls to do just that from the Opposition Conservatives.
Ghiz said MacMillan was simply following the precedent set by the former administration, adding: "There was no conflict whatsoever" and he "…did nothing improper."
He said he ordered MacMillan to pay back some of the money to take away the perception of conflict.
"You indicated yourself that there was a perception there," said Ghiz. "We acted accordingly. It's unfortunate the leader of the Opposition can't get her own party to act accordingly as well."
Q&A ....
A LOOK BACK
Q: Taking a look back at 2009, what is the initiative you are most proud of?
A: It has to do with the global recession. As a government, we wanted to make sure we were going to be there to really combat or perhaps mitigate this global recession. We were able to introduce a five-year capital budget last year, $500-million over a five-year period.
If you look at the overall Canadian economy versus Prince Edward Island, Prince Edward Island has faired well compared to a lot of other jurisdictions in our country.
Q: I think at one point or another there is always a moment we would like to go back and change. Again looking back to 2009, if there was something you could change, what would it be?
A: We always wish the finances were in better shape and that we were able to put more into social programs but because of the economic downturn we weren't able to do that.
Q: Political pundits are usually asked this question every year. This year, I want to put the question to you. What do you believe was the best political play of 2009?
A: That would be the New Brunswick-Quebec deal that was announced with Hydro-Quebec buying up the assets of NB Power.
BLOCKBUSTER DEAL
In October, the New Brunswick and Quebec governments announced a blockbuster $4.7-Billion deal to sell NB Power to Quebec.
Q: What does this deal mean to Prince Edward Island?
A: Off the top, it really doesn't change anything. Coincidently, I had already started negotiations with Quebec to find ways for us to buy some of their cheap renewable energy. I view this as perhaps an opportunity for Prince Edward Island to purchase cheaper renewable energy from the province of Quebec.
Q: Will you commit to cheaper power rates?
A: No. I can't. Governments of the past have done that. But I can commit that I'm going to work on it. For too long here in the province we've had politicians that have said that our electricity rates are going to go down. We saw that with Meteor Creek. We saw that with Deep Panuke. We saw that when we got rid of New Brunswick-plus-10. They continuously went up.
Q: The deal came as a surprise to many, did you know about the negotiations to sell NB Power before the deal was announced?
A: I did not. That was a deal that they put together. I think it was a good deal for New Brunswickers, from everything I can see. They are out doing the same thing that we are out doing, trying to find ways to reduce down our carbon footprint and to be able to find more affordable electricity for our residents.
Q: I don't have to tell you there is strong opposition to this deal in New Brunswick. P.E.I.'s only federal cabinet minister, Gail Shea, also raised concerns about what impact it may have on a proposed 'Atlantic Energy Gateway.' What do Islanders have to fear about this deal?
A: In my opinion, absolutely nothing. In 1988, whoever owned the power corridors really controlled what the price was and who sent electricity through there. Today, it's totally different. There is a national regulatory body that controls open access to power lines.
Q: Much has been made about this proposed deal … that it has divided Atlantic premiers … with Newfoundland and Nova Scotia against the sale and New Brunswick and P.E.I. supporting it. Has this issue divided Atlantic premiers?
A: No. There is always going to be issues, regardless of what they are, that premiers are going to have differences of opinion on. I respect (Newfoundland Premier) Danny Williams and (Nova Scotia Premier) Darrell Dexter. I think part of the problem goes back to the Churchhill Falls deal that was done 30-40 years ago. There is a distrust there, so to speak, but today is different circumstances. I'm worried about the present and the future.
DEFICIT FINANCING
Q: This fiscal year, which comes to an end in March, the province is forecasting a deficit of $85.4 million. We've received warnings
from Ottawa that our transfer payments may not stay at the current level. Still, the province is committed to $500-million in capital spending over the next five years, including $155 million this year alone. Is this a prudent use of taxpayer's money?
A: Absolutely. These are infrastructure projects around the province that have really been neglected for a long period of time. A lot of these have to be done. Right now is a good time. Responsible governments are there to spend money and stimulate the economy during difficult economic times. For me, it's a very prudent move.
Q: There are some that would say we are leaving a heavy financial burden on our children, including your new daughter Julia Elizabeth. What do you say to people who are concerned about the long-term debt of the province?
A: It's very manageable. If you look at our interest bite today, compared to where it was five years ago, we're actually paying less on our debt today than we were five years ago in relation to our total budget. A lot of debt is being retired at higher interest rates.
Q: What is the plan to balance the province's books?
A: This year, I'm saying there are no new programs. Let's maintain what we have. From there, if our economy grows at 1.8 per cent that will help offset it. Also last year, we had to deal with a large pension liability that was there because of the crash of the stock markets. Today we have markets that are rebounding.
We were looking last year at a structural deficit of around $35 million, maybe $40 million. The rest had to do with the pension liability.
With a $1.55 billion budget, we should be able to grow out of (the deficit). We should. That's what are plan is going to be.
Q: This fall, you announced that you were freezing the salaries of MLAs and senior staff for two years. You said this would set an "…example of some of the contracts that are in place" for the Island's unions. Are you expecting the unions to also accept a wage freeze?
A: We're not going to force the unions to do anything. We'll go into negotiations the same as we do every other time. I totally understand that the unions are going to come out and are going to bash Robert Ghiz for this or that, and say that we're wasting money. That's their job. They should do that. Our job is to look at the big picture.
Q: Your party - the Liberal party - is remembered as the party of 7.5 per cent. I don't have to tell you that some public servants believe that decision … even though it was made by another leader … tarnished the Liberal brand with the public service. Does that mean you have to tread lightly as the leader of the Liberal party when it comes to negotiations with public sector unions?
A: We're not planning and we're definitely not going to do any legislation in this regard. There will be no rollbacks. This will all be through negotiations. We're in a new day and age.
Q: P.E.I. has been lucky to dodge the worst of the global recession. However, now we're seeing rolling shutdowns at Cavendish Farms, the Island's largest private sector employer. Those are expected to continue into 2010. Now McCain's is also talking about shutdowns. Are you bracing for another difficult financial year in 2010?
A: All the economic indicators that we have point that we're not going to be doing that. The Conference Board of Canada is predicting growth of 1.7-1.9 per cent. We're hoping for the best of possibilities. But at the end of the day, you can't predict the future.
EDUCATION
Q: Turning our attention to education. It's been a year of dramatic change in P.E.I.'s education system. In some parts of the province schools are being shut down. In other parts if the province, new schools are being built. Beginning with the school closures, why did you decide to close these rural schools?
A: At the end of the day, does anyone want to come in and close a school and have communities, or parents, or kids angry at you? No we don't. But we also have to look at the big picture. There are declining enrolments in this province. What our government did is we allowed the school districts to be able to go out and do their work. Sometimes as a government you have to make decision that not everyone is going to be happy with.
Q: The report called for 11 schools to close but only eight did close. None of the schools in the City of Charlottetown slated for closure actually closed. Why did that happen?
A: That's a question for the Eastern School District. I did not have any involvement in it whatsoever. We allowed the school districts to do their work. They voted in the way they did and as a government we respected their decisions.
Q: The province also announced that finally kindergarten would be brought into the school system. The last in Canada to make the move. What impact will this have on Island students?
A: It's about creating a level playing field for our students. Our early childhood educators have done a tremendous job but at the end of the day we want to be competitive in the world.
What we went to do here in Prince Edward Island is create the best possible education system, create the population that has all the tools necessary to compete in a global economy.
Q: What impact will this have on child-care centres, which say the move to bring kindergarten into the classroom may spell the end to some childcare centres?
A: Our early childhood educators play an extremely important role and we're going to be there as a province to help them out.
HEALTH
Q: This year, the province was faced with a daunting task… preparing for a global pandemic … H1N1. Over half of Islanders are now vaccinated. How would you describe the roll out of the H1N1 vaccine?
A: It's gone extremely well. There's going to be some areas where we're going to have trouble competing with Ontario or Quebec. But in others areas, having a small population is very beneficial. Are there bumps along the road? Absolutely. But this has been the largest vaccination program undertaken in a generation.
Q: P.E.I. remains the only province in Canada that has not reported a death from H1N1. Is this good luck or good planning?
A: Good luck. People are always going to get the flu. There are people in Canada who die every year from the regular flu.
Q: The people that manage the Island's health care system are changing again. Your government created Health P.E.I., an arm's length agency, to run the Island's health care system. But the province created just that, a health agency in 2003. It was scrapped two years later in 2005.
Four years later it's now back. How can Islanders trust that this time the government is going to get it right?
A: You have to have confidence in the decision-makers. There's no perfect system out there. The system that we had in place with the department itself running the health care system was not the best model. It's a made-in-P.E.I. solution. That's why this is going to work better. The recommendation has come from Islanders.
Q: The emergency rooms have now been closed in O'Leary, Tyne Valley and Souris. Montague's ER no longer operates at night. Meanwhile, Corpus Sanchez, a consultant hired to study the Island's health care system, recommended only two ERs in the province in Charlottetown and Summerside. The province says it will implement the recommendations in the report. But it also says it will not close the remaining two rural ERs in Alberton and Montague. Can you explain this apparent contradiction?
A: We're not going to do everything that Corpus Sanchez is recommending. Our healthcare budget is growing by nine per cent a year, which is unsustainable. There's new technologies coming out on a daily basis. There are new drugs becoming available on a daily basis. We need to be able to find a way within our system to be able to adapt to the changes that are taking place.
Where we see things going - as does Corpus Sanchez - has to do with preventative measures. Let's get people healthy. It's a fundamental shift.
PNP CONTROVERSARY
Q: This time last year, we spent a lot of time talking about the Provincial Nominee Program or PNP. A year later and we're still talking about it. As premier, what have you learned as a result of the developments regarding the PNP file?
A: Probably that it was a much better program than even I imagined. I personally believe that this has been a program that has been extremely beneficial to Islanders. It's allowed us to have access to capital. It's increased our population. It's added to our cultural diversity.
Q: It does appear that prominent Liberals - friends of the government, people like Brooke MacMillan - had access to this program that ordinary Islanders did not. In fact, the auditor general found MacMillan in a conflict of interest and you ordered him to pay back the money? Some would say this doesn't pass the smell test. Do you believe PNP has tarnished your government reputation?
A: What our government has done is followed the processes that are in place - the auditor general, the conflict of interest. And really, it's unfortunate that you raise the issue of MLAs. They have followed the conflict commissioner to a 'T'.
The conflict commissioner has come out with really a scathing report against the media and against the opposition for really attacking these people for following the proper channel. I think you're not really reporting what the facts are.
You like to focus on people that perhaps are connected to our political party. It's very important to point out here, you talked about a deputy employed who was employed by myself. That deputy followed the precedent that was set by the previous government. There was no conflict whatsoever, of an actual nature. They did nothing improper.
What the auditor found was that there could be a perceived conflict.
Q: Which the act says is one in the same, right? A perceived conflict of interest is a conflict of interest?
A: Yes, but he was very clear no actual conflict so he didn't do anything improper whatsoever.
Q: I don't want to belabour the point but you keep saying Brooke MacMillan didn't do anything wrong but you asked him to pay the money back. If he didn't do anything wrong, why did you ask him to pay the money back?
A: To take away the perception. You indicated yourself that there was a perception there. They indicated the same for Pat Dorsey, who you know quite well, who's the vice-president of ACOA now, and (Pat Binns' chief of staff) Peter McQuaid. We acted accordingly. It's unfortunate the leader of the Opposition can't get her own party to act accordingly as well.
FIRST CHRISTMAS WITH JULIA
Q: Turning our attention to the holiday season. This will be a special season for you and your wife, Kate, because it will be your first Christmas with your new daughter, Julia Elizabeth. Julia was born in July. How has becoming a father changed you as a person and as a politician?
A: It makes my day better. I get up in the morning, I read The Guardian and then I go see my daughter and I'm in a good mood. We're very fortunate, my wife and I, that we have a healthy baby girl. She is at the stage - 5 ½ months old - where she's changing on a daily basis. It's something absolutely wonderful.
Q: Being the premier that must put a lot of pressure on you to buy good gifts over the holidays. Who gives better gifts, you or Kate?
A: I guess we'll have to wait and see how Julia feels about it. This year, I'm sure she'll be more concerned with the tissue the gifts are wrapped in. We want to make sure we try not to spoil her too much. It's difficult to do that; right now she's our only child.
Q: Will Julia get a brother and sister at some point in time? How big will the Ghiz family get?
A: I guess you'll have to talk to Kate on that one.
LOOKING TO 2010
Q: Looking ahead to 2010, what is your wish for the people of Prince Edward Island?
A: You obviously want good health for Islanders. That's the most important thing in someone's life. I want to continue down the path of creating a province where every child in our society has the same opportunities in life.
Q: The capital budget contains $15 million in funding, which is the province's share of the Atlantic Gateway funding. Does that mean you're close to announcing a deal and could we see that in 2010?
A: We're really in a similar situation to a year ago, if you want to know the truth. We have the money set aside but it's up to the federal government to step up to the plate now and anything you can do to help us out there, we'd much appreciate it.
Q: What would the priority be if we get approval?
A: There are three or four different projects that are talked about. Obviously, the Cornwall bypass, there's upgrades to our highway system. Gateway is about getting your products to market.
FINAL THOUGHTS
Q: There was wide speculation of a cabinet shuffle last fall. It didn't happen. Pundits are now putting their money on a cabinet shuffle in early January. You're more than half way through your mandate. Is it not time to put a fresh face on your government?
A: I'm always evaluating things and looking for the right opportunity. I guess Wayne my answer will be the same as it always is - you'll have to wait and see.
Q: I was reading the June 12, 2007 Guardian earlier today. At that time you were getting set to reveal your first cabinet. At that time, you assured those in your backbench that if they were not selected for cabinet then they'd get a chance "in a year or two." It's now two-and-a-half years later. What do you tell your backbenchers now?
A: I say that they are doing a great job and that we're on the right track. At the end of the day, it's the premier's prerogative whether or not cabinets are shuffled. I'd tell them to keep doing a good job and we'll wait and see.
