The blogger speaks about New Brunswick's fiscal disaster

It is safe to say that by now, New Brunswickers are well aware of the seemingly unlimited issues our province is facing.

The provincial government's spending deficit is approximately $545 million, and the net debt is nearing $10 billion. New Brunswick is also facing serious demographic issues due to an aging population (New Brunswick has one of the oldest populations in Canada). A large number of the province's youth are also heading for Canada's west in search of better employment opportunities.

On top of all that, the province is facing just as many issues as it would be if the books were in perfect shape. But there is no doubt that New Brunswick is in a state of crisis. The province has never been in a state such as this before, so this should serve as a wake-up call for the government. It is also a turning point in the province's history.

When the fiscal disaster comes up in conversation, many try to point the finger at one former premier and their mistakes. Many blame the Liberal administration of Shawn Graham, who served as premier from 2006 to 2010.

No doubt about it, Shawn Graham and his comrades dug a huge hole for the province, which they only passed on to Conservative leader David Alward upon being ousted from office in September 2010.

Upon being elected in 2006, Shawn Graham set out with good intentions--to make New Brunswick self-sufficient within two to three decades. However, he did the exact opposite. When he left office, 40 per cent of New Brunswick's budget consisted of transfers from the federal government.

The sole premier in New Brunswick's history to last only one term in office will long be remembered for changing his mind on nearly every major decision he was faced with. Those include, but are not limited to, changes in early French immersion, education cutbacks which would lead to layoffs of all school library staff, educational assistants and intervention workers, and a failed attempt to sell NB Power to Quebec.

This should be enough basis to prove that Shawn Graham played a large role in weakening the province's financial outlook. However, this mess has been many years in the making. Former premiers Richard Hatfield (in office from 1970 to 1987), Frank McKenna (1987 to 1997) and Bernard Lord (1999 to 2006) are largely to blame for getting the province on the road to bankruptcy before Shawn Graham gave his two cents worth.

David Alward has taken office at the worst possible time to be Premier of New Brunswick. He has inherited this mess and, as premier, is responsible to clean it up. The Alward government has come to terms with the stark reality, and they realize that the government must live within reason. Without a doubt, budget cuts must be made, but there needs to be a balance between spending reductions and increased revenues. Only cutting spending will not be enough to put a dent in the large fiscal shortcomings the province is facing.

Finance Minister Blaine Higgs is seen here speaking at a pre-budget consultation held at NBCC Woodstock on Monday, January 23rd. Higgs has been touring the province in search of suggestions from the public regarding how to get the province back in the black. (Photo taken by Aaron Bouma)

The population of New Brunswick is approximately 751,273 inhabitants (2010 census). A debt and operating deficit of this size for such a small province is unacceptable and unsustainable. It has been allowed to reach current levels due to negligence on the part of previous administrations. I question if they had any idea that their mistakes helped to push the province closer to bankruptcy than we've ever been before.

As a matter of fact, New Brunswick's auditor general, Kim MacPherson, issued a report which couldn't emphasize enough that the government needs to get the fiscal house in order. She warned that New Brunswick could reach "a point where the province will not be able to meet their financial commitments, to put on programs like education and health to the same way that we enjoy them today."

On a personal note, Premier David Alward is a good man and a close friend of mine. I trust that in the face of a huge crisis, he will fight for the province and steer the ship in the right direction.