Newfoundland鈥檚 economic recovery team has released a shattering report that should be read by every government in sa国际传媒, federal and provincial.
Called 鈥渢he Big Reset,鈥� the report calls for six years of deep cuts in government 颅spending, along with tax increases, 颅necessitated by the province鈥檚 鈥減erilous鈥� debt and deficit 颅position.
Per capita, Newfoundland has the highest public debt total in the country, though not by much. The other Atlantic provinces are close behind, as are, to some extent, Ontario, Quebec and the federal government.
Here are the recommended spending cuts: A 25 per cent reduction in grants to health authorities; a 30 per cent cut in funding to Memorial University and the College of the North Atlantic; unspecified rollbacks in public-service salaries; and 颅overall a cut of five per cent in total government spending.
And after that? Far-reaching privatization of non-essential services.
This program involves, 颅self-evidently, a complete 颅reconception of the role and scope of government.
Some of it is down to years of fiscal profligacy. For instance, on a per capita basis, 颅Newfoundland spends more on health services than any province in sa国际传媒, yet gets some of the worst patient outcomes.
But some of it is also the cost of providing for a small 颅population dispersed over wide areas. It used to be a joke in healthcare circles that 颅鈥淪askatchewan鈥� is the Cree word for 鈥渢oo many small hospitals.鈥� Newfoundland has that problem in spades.
Let鈥檚 look more closely at the debt and deficit 颅numbers. And here I have to say 颅Newfoundland鈥檚 budget documents bear no relation to any established accounting system I鈥檝e ever met. A drunken parrot could come up with something more intelligible.
Nevertheless, as best I 颅understand it, the province spends about $8 billion per year and is looking at a deficit in the region of perhaps $1.8 billion. Total taxpayer-supported debt stands at $15 billion.
Yet bad as that is, it鈥檚 not so much worse than Ottawa鈥檚 颅performance, where the federal government ran up a $360-billion deficit last year, with red ink all the way to the horizon.
For that matter, sa国际传媒鈥檚 颅performance isn鈥檛 vastly better. Our deficit this year is 14 per cent of the spending total. 颅Newfoundland鈥檚 is 22 per cent 鈥� not a huge difference.
Our taxpayer-supported debt is projected to reach 134 per cent of spending by 2023. 颅Newfoundland鈥檚 is currently 190 per cent 鈥� definitely more 颅challenging, but not from a 颅different planet.
True, our economy is more robust, meaning we can sustain debt and deficit levels more comfortably.
I doubt a Big Reset of the size and scope facing 颅Newfoundland will be needed in sa国际传媒 颅Nevertheless, if our government continues to live far beyond its means, again with no end of deficits in sight, some kind of reset will be required.
Could Vancouver Island Health Authority take a 25 per cent cut in spending? I ran a health authority once upon a time. The answer is no.
Could it take even a 10 per cent cut? Same answer. No.
But somewhere down the road, and likely sooner than later, those are the kind of 颅consequences we鈥檒l have to deal with if our politicians remain in La La Land.