Thursday, December 14, 2006

 

We are paying $1,000,000,000.00 BILLION interest on our debt

Ok according to the auditor generals report we pay $947,000,000.00 Million on debt expenses. Not quite 1 billion but close enough.

The government's net debt, which includes unfunded pension liabilities, is now $11.7 billion. On a per capita basis, that means each man, woman and child in the province is on the hook for about $23,000 — the highest in Canada.

As well, Noseworthy noted the government spent $947 million last year on debt expenses.

In a statement, he said debt servicing means the province "had fewer resources to allocate to programs and services as a result of the 'interest bite.' "

Noseworthy's report said that while the surplus — the first one reported in eight years — is good news, the provincial government would still need to produce an annual surplus of $300 million for 40 years to eliminate its debt.
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Noseworthy, who called for a debt reduction strategy, said the government should make tackling its $2.2-billion debt in unfunded pension liabilities its greatest priority.


http://www.cbc.ca/canada/newfoundland-labrador/story/2006/12/13/surplus-debt.html

Liam from http://responsiblegovernmentleague.blogspot.com does a good job of tearing past present and future NL governments a new one for not tackling this issue before and continuing to ignore it on the basis of getting re-elected.

He even makes a few suggestions where we could better improve our economy by welcoming private enterprise and deregulation.

The government of this province can and should start cutting. No, not hospital beds and teaching units first. Start by scrapping the dept of business. Move on to some pairing down in other departments at the centre. If the government wasn't so hell bent on a socialistic system of state ownership in industry and didn't suffer from such an allergy to free enterprise, I bet they might consider doing something smart like examining the Australian and New Zealand corrections systems. Some of the contracted-out correctional work is saving those governments more than 30%. Privatized Liquor Stores in Alberta and elsewhere have led to more variety & availability of product, more employment, and more revenue for that government. In fact, they had to lower taxes at one point just to stay revenue neutral.


I really like the privatizing Liquor stores. What with our small population spread out over such a vast expanse of land and sea this would only seem logical.

Oh to have a Ralph klein in NL, the status quo is no longer not only acceptable it is down right ignorant to even consider maintaining it.
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