BY WADE MACLAUCHLAN
GUEST OPINION
Earlier this week, it was announced that our province closed the 2017-18 fiscal year with a surplus of $75.2 million. This is an historic achievement for all Prince Edward Islanders. It is the most significant paying-down of debt in our province’s history. It means a brighter and more sustainable future, starting today and for generations to come.
Paying down debt has not been a habit for Prince Edward Island governments. During the past 40 years, prior to 2017-18, there have been seven surpluses totaling $97.3 million. Over the same period, there have been 33 deficits totaling $962.5 million contributing to the $2.1 billion increase in the net debt.
Governments on Prince Edward Island and elsewhere have tended to throw caution to the wind and run bigger deficits as they get further into their mandates, notably with the prospect of an election on the horizon. The Progressive Conservative government led by Pat Binns started from a modest surplus position in 1995-1996 and by 2002-2003 ran up a deficit of $125 million, the largest in our Island’s history.
People have commented that it looks like our government is doing things differently. We are. For starters, our 2017-18 fiscal position was not achieved by making cuts to programs or services. We have consistently made new investments in programs and services for Islanders, notably in health, education and family services, at the same time as we have exercised strong financial stewardship.
The main way in which we are doing things differently – and in which Islanders are doing better – is that we believe in our potential – and in the potential of all Islanders. Over the past two years there have been 6,600 new full-time jobs created on P.E.I. This year, we are leading all Canadian provinces for economic growth and growth in new full-time employment. Three-quarters of the 2017-18 surplus is drawn from this growth through business and consumption taxes. This has been achieved at a time when government has provided tax relief for all Islanders.
This approach, believing in Islanders, is reflected in the choices we have made in public policy, services and spending. For example, since 2014, there are 5,200 additional lower-income Islanders who pay no provincial income tax, because of expanded tax credits and raised taxation thresholds, and all Island income taxpayers have benefited from tax relief.
Shortly after forming government, we introduced the Generic Drug program; 21,000 Islanders have signed up. Through the “Be Aware, Get Your Share” campaign, more Islanders are accessing benefits to which they are entitled through tax filing. More than 1,000 students now qualify for free tuition. We have reduced the small business tax so small businesses save up to $2,500 a year. Islanders are saving $10 million on their electricity through a new provincial rebate. There is an additional $40 million in combined provincial and federal investments to help island families each year.
We believe that Islanders will respond to good public policy, and they are entirely capable of making good decisions for themselves and their families.
This investment approach - a “carrots are better than sticks” philosophy - explains our government’s approach to carbon pricing. While the Green party believes that higher taxes are required to force Islanders to “change their behavior” and the PCs believe we have already done enough, our Climate Change plan is based on incentives in clean energy and efficiency, and Islanders are responding.
are “doing government differently” by believing in Islanders. This is not about government. It’s about Islanders – making choices, doing well, looking after their homes and families. It is about Islanders and our government helping each other and responding to needs, growing businesses and communities and economic opportunity in our provincey. That’s what we mean by The Mighty Island.
- Wade MacLauchlan is premier of Prince Edward Island
