'Every program' under review given budget deficit, says Ross Wiseman
Newfoundland and Labrador's finance minister admitted Tuesday the government has some tough choices to make given the falling price of oil.
Ross Wiseman said he's been advised that the price of oil should stabilize soon, but that still means a deficit of almost a billion dollars for this year's budget.
The price of Brent Crude has dropped by more than half since last year, when the provincial budget was based on oil averaging $105 a barrel.
Five year plan
Wiseman said the government has to plan for the long term as it waits for oil prices to rise.
"Depending on who you talk to, people suggest that there's a correction taking place in the market," he said.
"It may take us, two, maybe three, maybe a little longer, years to rebound and level back out again. So, we need to position ourselves for a five year planning cycle."
Wiseman said that every government program is currently under review, leading up to the spring budget.
"There's some programs that we already deliver that we're examining," he told CBC's Zach Goudie.
"There's programs that we want to deliver, and have committed to deliver, and would see tremendous value in. But we need to examine all of in the context of our current fiscal reality."
Fiscal challenge
Wiseman said that falling oil prices is something that the province must accept as reality and deal with accordingly.
"These are some of the most challenging circumstances we have faced in the last 25 years, if not the last fifty," he said.
Tumbling oil prices is not only causing fiscal headaches for Newfoundland and Labrador. This week, Alberta announced that plans to begin full-day kindergarten for provincial schools would be shelved as a result of less money going into government coffers.
Now, there is some concern that the same thing may happen to plans for full-day kindergarten in this province.
Wiseman said the plan for all-day kindergarten is being reviewed, but so every other program as well.
"That's still in the planning hopper," he said.
"But it's still a part and will be subject to this year's budget review process, as with every other program and service."
Darrin Pike, CEO of the English School District of Newfoundland and Labrador, said Tuesday plans for full-day kindergarten are "full steam ahead," as far as the board is concerned.
Suncor spending cuts
As well, Suncor Energy announced Tuesday it was making significant spending cuts to its 2015 budget. While that will affect operations in Newfoundland and Labrador, the company said it was committed to the Hebron project.
With so much uncertainty and volatility, Wiseman said the government is planning for the long term.
"We'll deliver a budget for the next 12 months, which is our fiscal year," he said.
"But in so doing, we'll map out a five-year strategy to take us from today to take us five years out."
With files from Zach Goudie