Everyone will need to make sacrifices during fiscal crisis, throne speech says
'Taking politics out of our appointments,' first bill to look at independent appointments commission
The speech from the throne delivered at the House of Assembly in St. John's Tuesday afternoon highlighted Newfoundland and Labrador's difficult fiscal situation, and creating a more open government.
"Addressing the serious fiscal reality is my government's top priority," Lt.-Gov. Frank Fagan stated, as he read the speech Tuesday afternoon.
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Fagan also indicated the decisions coming in the spring budget will have far-reaching effects as the province grapples with shrinking revenues due primarily to plummeting oil prices.
"Everyone will have to accept some level of sacrifice in the months and years ahead," Fagan said.
Speaking later with reporters, Premier Dwight Ball described the province's fiscal situation as "terrible," and said no other jurisdiction in the country "comes even close."
He refused to say how the new Liberal government will increase revenues and rein in spending as it grapples with record deficits, but tax increases are all but a certainty.
In fact, Ball is no longer adamantly opposed to an increase in the HST, saying "we will look at all options in front of us."
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That's a major shift for the Liberal government, which quickly rescinded a pending two per cent increase in the HST when they took office last fall.
Ball said the province's situation is "quite different" than it was prior to November's election.
"I'll do what's right for the people of this province," he said, when asked if he regretted rescinding the tax increase, which would have brought in nearly $200 million in revenues.
Ball said an ongoing tax review is intended to ensure the province is competitive with other regions of the country.
As for possible public sector cuts, Ball said any specifics will be detailed in the 2016-17 budget.
He refused to give a date for when the budget might be delivered, saying only "we're getting there."
Uncertainty in commodities market
The fiscal update released in December outlined Newfoundland and Labrador's $2.4-billion deficit, with the premier calling on all departments, agencies and boards to identify 30 per cent in savings.
"If left unchecked, our province was on the road to sustained deficits in the $2-billion range and a net debt reaching upwards of $23 billion in just five years," said Fagan.
It would also require borrowing more than $15 billion over the next five years.
The speech highlighted the uncertainty in oil commodity prices and the importance of keeping those changing prices in mind when looking at the province's finances.
Government will also be looking at opening the books on the cost of Muskrat Falls, according to the throne speech.
In addition, the province will work toward establishing a generic fixed royalty regime program for the offshore.
The House of Assembly officially opened March 8 for the Liberal government's first sitting in power.
1st bill will be for independent appointments
The Liberal government outlined a need to restore openness, transparency and accountability in government; build a stronger and smarter economy; improve healthcare; support safe and sustainable communities; and invest in the province's future through education.
"My government is committed to openness and transparency," said Fagan.
"It is fitting then to announce that the first bill my government will introduce in the House of Assembly will be an act to establish an independent appointments commission and to require a merit-based process for various appointments."
The speech added the move would be about "taking politics out of our appointments."
"We believe that appointments to our agencies, board and commissions should be merit-based, not politically motivated as in the past."
Partner in Ottawa 'more important than ever'
The speech also highlighted an opportunity for a renewed relationship with the federal Liberal government, following last year's election.
"A strong relationship based on open dialogue will serve our province well," said Fagan.
"As we find ourselves in a difficult fiscal situation, having a partner in Ottawa is more important than ever. We will advocate for our fair share of federal presence and spending."
He added the province will push Prime Minister Justin Trudeau to fulfil federal promises made to Newfoundland and Labrador.
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