Provincial debt grows by over $1 million a week DOUG GALLANT The Guardian
Every second of every day Prince Edward Island’s debt rises by $2.
If you think that’s alarming do the math for a week.
Figures provided by the Canadian Federation of Independent Business (CFIB) indicate the provincial government’s weekly debt totals $1,158,773.
Erin McGrath-Gaudet, CFIB’s policy analyst for P.E.I., says the provincial debt is a ticking time bomb.
“It’s growing every second of every day and with every tick it’s taking away opportunities for the future,’’ McGrath-Gaudet told a press conference Tuesday in Charlottetown.
The CFIB called the press conference to unveil the P.E.I. Debt Clock, a digital counter on the federation’s website, www.cfib.ca/P.E.I. that illustrates just how quickly the provincial debt is growing.
In unveiling the debt clock, the federation’s 1,100 P.E.I. members once again called on the provincial government to balance its books.
McGrath-Gaudet said P.E.I. is the only province which still runs a deficit. With the exception of Newfoundland and Labrador, every other province in Canada requires a balanced budget by law.
Newfoundland and Labrador, however, is not in the same financial position P.E.I. is, McGrath-Gaudet said.
She told reporters there’s a good reason every other province has rejected deficit spending.”
“It simply isn’t sustainable. The (debt) clock serves as a reminder of this.’’
McGrath-Gaudet pointed out the shortfall in government finances is not from a lack of revenue.
Government revenues have consistently been growing much faster than inflation. The problem is that government spending outpaces any growth, she notes.
Government expenditures, the federation says, grew by 12.5 per cent in 2007-08 and 8.8 per cent in 2008-09.
If government expenditures continue to grow even at the lower rate of 8.8 per cent annually and revenues continue to increase at the five-year average rate of 5.7 per cent, federation officials say the deficit will grow to $330 million in five years.
They say for a province the size of P.E.I. that’s a significant debt load.
The debt load currently equates to $10,000 for every man, woman and child in P.E.I.
If the current trend continues government will never be in a position to balance its books, McGrath-Gaudet warned.
The CFIB is calling on government to balance its books now and put in place balanced budget legislation to ensure the province puts an end to deficit spending.
It’s the federation’s hope the debt clock will serve as a reminder to all Islanders that deficits are not just a budget-day issue.
“Our debt grows by more than $1 million every week. It’s time we stopped the clock.”
McGrath-Gaudet said the solution to all of this is both relatively simple and painless — limit future spending increases to inflation.
The Guardian is committed to encouraging intelligent discourse among our readers and to creating a forum where diverse views and opinions on a wide range of topics can be aired. The forum you are in now is a result of our continuing efforts to facilitate a dynamic online conversation among our readers.
This is a moderated conversation. Once a reader follows the steps to register and submit his or her comment it goes to a moderator for the website. Once it has been approved, your comment will be displayed on the website. A comment may be edited or deleted for reasons of content or language.
All readers wishing to join a conversation must first sign in and agree to the Terms of Usage, which explain the rules of acceptable content.
James McGoo from Lakesdie, PEI writes: This is an important issue that requires government officials to develop strategies and approaches to solve a difficult problem. It may requires days and months of hard work and research. Not much immediate visibility and a payoff several years down the road - possibly after current politicians have left office.
It is unfortunate that many of the resources who could assist in this crisis appear to be jockeying for the limelight in another important existing probe - the PNP Investor Program.
Would the members of our esteemed government please let the Auditor General do the job he was elected to perform - without their assistance. I would be appreciative if they focussed their talents and resources on this issue.
Lets use our best minds for getting the province out of debt.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
j c from prince edward island writes: proper url is :
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
JL from PEI writes: And that $1 million/week operating deficit doesn't include the deficits of the 75 municipalities scattered across our Island.
Face it, we are inefficiently governed. We must change the fundamental structure of the way PEI is administered.
#1 Dissolve all municipal corporations.
We only have 5,500 sq. km. That's the size of the Halifax Regional Municipality. We only need a single government for this island. We don't need 76 governments (1 provincial, 75 municipal). We certainly don't need 500+ politicians to run our lives. About a dozen would do.
#2 Merge school boards.
We could have a single school board for both English and French schools (1 administration, French and English parent representatives)
#3 Close rural hospitals and convert them to community health centres.
Tertiary care facilities should only be in Charlottetown and Summerside, where we have relatively modern buildings and equipment. Focus the tax resources. Now that we have Island EHS, the ambulance service can get people to either of these 2 hospitals more efficiently than we can bring the hospitals to the rural areas.
#4 Reduce the number of MLAs from 27 to 13.
It's silly that we currently have 1 MLA for every 5,000 residents. Typical over-governance and inefficiency. Other provinces have ten times that many residents per MLA. We could have 1 MLA for 10,000 residents - it's not really THAT different and we save on legislature salaries.
#5 Get RID of provincial electoral boundaries.
The biggest problem we face is that our provincial political system is not responding to the demographic shifts of people moving to urban areas. We saw Pat Binns and Cletus Dunn (supported by Robert Ghiz) gerrymander the electoral boundaries in favour of rural PEI at the expense of the majority of voters (who happen to live in urban areas).
If we just BLEW AWAY the boundaries completely and elected everyone at large, then all MLAs would be responsible to ALL Islanders, rural and urban.
#6 Start looking at ways to share in administering provincial departments with our neighbouring jurisdictions. PEI has the same population as Greater Moncton.
Maybe the NB Government could run our health department (it would only be 2 more hospitals and 200 doctors and a few hundred nurses).
Maybe the NS Government could run our education department (it would only be a dozen high schools and few dozen elementary and junior highs and a few hundred teachers).
Maybe the NB Government could run our transportation department (it would only be a few dozen snow plows and a few thousand kms of roads).
To the provincial government: Start being innovative and stop wasting OUR tax dollars. You have too much overhead with too many middle-level managers, too many ineffective employees (of both political stripes) being coddled to keep their jobs going when it isn't necessary.
Stop the deficit financing and fundamentally restructure the way we are governed. ONE (reduced) government for all of PEI.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
S Morrison from Charlotetown, PE writes: I've got some quick tips for you...Get rid of the Gov't owned golf courses. Stop bailing out farmers. Close all but the two main hospitals.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
bring back Aerosmith from PEI writes: we can afford it!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
More like ... from PEI writes: http://www.cfib.ca/legis/pei/default.asp
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Less MLAs from PE writes: In these uncertain economic times, I too believe we need to cut back on MLAs and there budgets. We can't afford to have 27 MLAs in such a tiny province.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Shocked from PE writes: This is a disgrace. How much of the FOUR HUNDRED MILLION received firm the Immigrants was put into the Provincial coffers? Where is it being spent? It could at least be out into a program to help with the oil bills this winter. Can you imagine what would happen if Dion's carbon tax ever got put in place? This is terrifying and very serious.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
tp from Charlottetown, PEI writes: Government, at all levels, needs an overhaul. Sadly, Government has evolved into an entity that is more about spin, PR, and securing another term for themselves. Opposition parties spend more time saying 'black' when the government says 'white' and trying to dig up and exploit silly issues that they think will make those in power look bad.
Unfortunately, long term planning, effciency, and good management all too often takes a back seat to these political games.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Formerly from PEI from Nova Scotia writes: That's what you get for voting for the Liberals under Ghiz.......and now I see that you are leaning towards the Liberals federally AGAIN......people never learn!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Mel from PE writes: I guess this is why the government comes up with programs like the immigration program where it gets thousands of dollars from willing immigrants that want to come to PEI, and then gives them a hard time when they want their good faith deposit back!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
marg watts from sudbury, on writes: From Ontario.One Atlantic province.!!!!! We have one federal member to represent the same number as all PEI. The number of provincian members really seems like a lot.As well our city has a larger population than PEI.
Every where is in trouble this morning.Guess we will have to relive the 30,s.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Chester Field from pei writes: Well, JL, pretty well sums up everything I had to say. Until such time as us taxpayers make the people we voted in to actually do our wishes, we may as well be pi$$ing in the wind. Unfortunately, or fortunately, whichever way you wish to look at it, until, we the taxpayer, Yes Us the middles class, which is the gas that propels the engine of this country, say enough is enough, nothing will be done. We, the middle class have to hold these people that were voted in accountable, and when they err, they must be gone, gone then and not wait for an election, if nothing else it will make the rest sit up and take notice that if they are not doing the best for the majority and not the miniority than they will be gone. Its time the real taxpayers (middle class) of this Country grow a backbone, this is our Country, not the upper class(who have all the tax loopholes) we the middle class pay for all the health and education that is offerred in this country, we do not have the loop holes that the upper class have. We have alot of power, we just don't know that we do. Its time that maybe we started demanding what we want for a change.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
C. Little from PE writes: Such a huge debt for so few people, and yet I cannot remember a single year when PEI taxpayers didn’t give millions to Island millionaires for some excuse or other. The few get rich off the many here and it has to stop. And, powers that be, there is no more wiggle-room for further tax hike--or for the irrationally escalating power costs either for that matter.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
desilverwolf deep thinking from charlottetown, pei writes: We want the deficits gone, then we have to stop agreeing with everything the government does. Last night I posted the suggestion that those big ugly buildings being built must emit a lot of carbon. I asked if smaller buildings would be more efficient regarding heat and electricity. Next thing I heard on the televised debate was that a big new convention center was being looked at for the downtown area. If the six unit building I live in burns so much oil that we are looking at a possible carbon tax, think what those big white elephants burn. If our landlord had to increase the rents to the full amount allowed this year because of heating costs, think what the oil for those big government buildings are costing us. We have deficits because all levels of government have gotten too big for their boots. Just like all household budgets, it's all the unnessary items that empties pockets and leaves us behind the eight ball. Get rid of useless committes where the job is to just sit and discuss or ponder or gossip. Build smaller government structures to house our little Island's government workforce. Get back to basics with tourism, back to giving the tourists what they come here for, not what they come here to get away from. This Federal election is going to bring out a lot of scared and angry Island voters. Larry MacQuire told the truth and lost his previous political run because of it. I have to say he impressed me quite a bit last night during the Eastlink discussion. He may have had some politically wrong ideas last time around but I think he is an honest man. Too bad he's not running here in Ch'town. That's not to imply the others aren't honest, just that they totally toe their party line even if they have some large shivers down their spines because of it. There are many ways to cut the spending and not all of them include a new tax. Mostly they involve getting rid of the deadwood.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Head Shaker from PE writes: 5 Get RID of provincial electoral boundaries.
The biggest problem we face is that our provincial political system is not responding to the demographic shifts of people moving to urban areas. We saw Pat Binns and Cletus Dunn (supported by Robert Ghiz) gerrymander the electoral boundaries in favour of rural PEI at the expense of the majority of voters (who happen to live in urban areas).
If we just BLEW AWAY the boundaries completely and elected everyone at large, then all MLAs would be responsible to ALL Islanders, rural and urban.
Why not dispense with provincial governments all together. Give Harper direct control over all levels of government directly from the PMO?
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Andy from Ch'town, PEI writes: Does anyone know if the federal government can just step in and force a merger of provinces?
The British used to do it all the time when we were colonies. Cape Breton was once part of Nova Scotia, then became a colony, then was put back into NS again. New Brunswick was split off from NS... etc.
So can the feds do the same thing for the Atlantic provinces? Just step in and unilaterally reshape the region? Could the parliament just create a law to modify the constitution and then force a merger?
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Head Shaker from PE writes: Do you have any idea how much that would cost? It would be decades before we ever recovered the cost of union.
Unless you're under 30, you'll never see savings. It will all go on the debt and drive up the interest payments for years after the actual amalgamation costs have been paid.
You can start to save money by not buying systems that other provinces have discarded as more trouble than they are worth because you figure that after all their problems the bugs must be worked out now.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
cruxoftheissue from pei writes: JL, you said it all. Thank you.
So how do we get this done? I'm just about fed up enough to ready my pitch-fork!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
simple solution from PEI writes: You know what would solve all of these problems PDQ ?
If the feds just cut off making any equalization and transfer payments to provincial governments.
Then provinces would be responsible for raising their own revenue and you would see a radical reshaping occur in PEI, because if we want the social programs and still have affordable taxation, then something would have to give.
Until then, it's all window dressing (including the CFIB's debt calculator) but certainly makes for interesting discussion.
I doubt John and Jane Doe out in Coleman or James and Mary Smith in North Winsloe are losing sleep over the lack of fiscal discipline at the Provincial Treasury.
But, if they suddently find one year that they aren't able to have any roads paved, and that the nursing homes have all closed down and hospitals have downsized and doctors and nurses have moved away, while PEI's millionaires continue to drive their Porsches across the southern U.S., then maybe we would actually see the populace rise up and make some changes.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
bye the way from chtown., p.e.i. writes: Listen to Shocked folks!!! He is bang-on ! We have witnessed what the Big CF!B in the USA can do ....they Tanked the whole country... maybe the entire globe.Perhaps the CF!B should go to WALL STREET ..it should be relatively simple and painless ,as sayeth she!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
Typical Islander ... from Ont writes: There used to be a concept called civil responsibility. Each member of the community was expected to pull their own weight and contribute to the well being of the whole. That seems to be old fashioned to some and an extreme infringements of their personal rights to scr3w everybody else to others. In taking this attitude you have given your responsibility to the government to take care of these things for you.
And surprise surprise it takes people and money and time. Of course it does. That's why you don't do it yourself.
If you want the government to get out of these things, you have to grow up and get involved in your community in some way other than figuring out what's in it for you. If you find a way to purchase fuel oil in bulk and distribute it to the poor who can't afford the minimum delivery amount, do it. If you can think of a way to increase tourism in your area, do it. If you can think of a way stimulate the local economy, do it.
If you leave it to the government, taxes are the cost you have to pay. Saving money takes work, and I suspect that if I showed up at your door to get your help to do actual work to fix things, I'd get an excuse that you were too busy or you gave at the office. Life is choices. you made yours. Grownups know they have to live with the consequences of their choices. If you don't like the results, change your choice. Do something other than switching to another politician.
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
People's Party Of PEI a New Change from Charlottetown, PE writes: JL from PEI for Premier .
Go JL Go!
More and more people are seeing this as an option.
Look who is in power in Saskatchewan!
Please let us know if this reader's comment breaks the rules explained in the Terms of Usage and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don't break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
NOTE
The management of this site emphasizes that it is in no way liable for persons, physical or legal, who are hosted here. Moreover, the managers of this site may not be held liable for errors and omissions that may slip into the information displayed in these reader comments. Everyone who submits a comment should read, understand and agree to the Terms of Usage for this section.
1
