Study says N.B. should view economic cost of poverty

An author of a poverty study says government should look at the business case for fighting poverty because costs to government are added to broader costs to the economy.

A new study by the Canadian Centre for Policy Alternatives concludes that poverty is costing New Brunswick taxpayers half a billion dollars a year — about 6.5 per cent of the 2009/10 New Brunswick government budget.

Co-author Christine Saulnier said that figure includes the costs of health care, crime, and lost tax revenue from people who aren't in the workforce.

However, she said it doesn't include social assistance payments.

"Obviously that's a cost in terms of poverty, but it is a cost that's keeping people living in poverty," said Saulnier.

"So what we really wanted to underline is that what is it costing us to keep people living there? What are the consequences for us as a society when we look at government budget and we think about the resources that are being used that could be reallocated if we actually address the root causes and lifted people out of it?"

For society as a whole, the study says poverty costs as much as $2,700 per person, per year.

Saulnier said while shelters are important, they are expensive to run. She said the government needs to focus on building permanent housing.

Saulnier hopes the study makes a strong business case to the Alward government to continue with the poverty reduction strategy developed under the former Liberal government.