Monday, March 23, 2009

Letter from a New Brunswick Ex-Pat

On behalf of the thousands of New Brunswick ex-pats who would someday like to return home, I would like to thank Shawn Graham for making that a fantasy.

I left New Brunswick just as the Graham Government came to power and raised taxes back in 06/07. I am only viewing this government from afar.

Thankfully.

Looking at the latest budget it looks like he is actually just giving back some of what he took a few years ago and he had to go borrow money to do it. Awesome. You should all feel really good about that one.

As it stands right now, New Brunswick has a debt of approx $8 billion dollars. That will rise to $10 billion before the liberals finish this term. That means the debt is more than what the government takes in on an annual basis annual revenue is approx $8 billion).

Add to this that a very large chunk of what the province pulls in for revenue comes from Ottawa in the form of transfer payments, and that equals a province that will be teetering on the brink of bankruptcy around 2009. Great place to live. Your great grand kids will be paying interest on this decision.

I am not an economist but when you spend more than you make that normally spells trouble.

I seem to recall that the New Brunswick debt was going down, albeit slowly, throughout the late 90's and into 2006. Well goodbye to ten years of fiscal stability - IN A BIG WAY. In one budget Shawn is borrowing 10% of what the province spends on an annual basis. He has completely erased years of prudent financial management.

Thanks man.

The self sufficiency vision sure is taking a licking in this budget. How can anyone stand in front of a mirror and say New Brunswick is on a path to self sufficiency? This is a joke of the highest magnitude. A province that will have a debt that exceeds its annual budget cannot ever dream of self sufficiency.

It is now official – New Brunswick has now become the new Newfoundland. There are little to no job opportunities, small business is taxed to pieces, the province is almost crushed under the weight of a ballooning debt and there is no vision or leadership that would entice anyone to come home or for any young person to stay. Just check the stats of out migration from New Brunswick, they will only accelerate in the coming years thanks to this budget.

The only part of Shawn’s self sufficiency agenda that will become a reality is that thousands of young New Brunswickers will become self sufficient when they leave. The province has already established a great reputation for its great young people that go live somewhere else.

On the plus side - years from now there will be a fantastic retirement business to be had when we all come back from a successful life somewhere else.

I really love New Brunswick. It is my home and I would like nothing more than to move my family back. This will not happen with buffoons like Shawn Graham ruining a once great province.

Folks - do yourself a favour and chuck this bartender/substitute teacher who calls himself a premier out

Thursday, March 19, 2009

Ducks Are People Too

Did anyone else notice that last week, the same day he announced he was freezing the wages of 45,000 workers in New Brunswick and that we have an $800 million deficit - Shawn Graham also created a brand new $1.5 million program for ducks. That's right, the very same day he announced the province is broke he also signed an agreement with Ducks Unlimited to give them $1.5 million - that apparently we don't even have in our bank account - so that they can make better homes for ducks.

What the hell?! I can understand where Shawn used to be the Chairman of Ducks Unlimited NB he feels like he wants to give them something - but does this guy have a single clue about making decisions? Has he looked up the word "timing" in the dictionary?

Not angry yet? Try this on for size - this week we found out that the new program the Liberal Government created to help people afford to heat their homes in the winter HAS RUN OUT OF MONEY. They had to turn away almost 4,000 people who had applied. But guess what - Shawn only put 0.5 million dollars into that program. Yes you can do the math - ducks get 3 times as much money for their homes as people do under the Shawn Graham Liberals. What a bunch of bananas!

Tuesday, March 17, 2009

St. Paddy’s Day Massacre - Brought to you by the Church of Self Sufficiency

The New Brunswick government delivered the budget today.

Massacre may be an understatement.

Here is the rundown:
Runaway Deficits
Hundreds of Civil Servants Fired
Higher Unemployment
Higher Debt

The 3/4 of a billion dollars in overspending is nothing more than Deferred Taxation. We are presently unsure to whom we are deferring it, but some possibilities include our kids, our grandkids, the rich, the poor, the middle class, our neighbours and friends. Pick who you think it will be.

This budget will go down in history as the worst budget this province has ever seen.

Sunday, March 8, 2009

Worst Government Ever? – Part Three

Taxation

This is the third in a three part series, examining whether the government of Shawn Graham can pull off an historic feat, becoming the worst government in New Brunswick history.

Finally, the biggest power of the provincial government is controlling our taxes. As already mentioned, the Graham Gang sent quite a clear signal to the national and international business community in their first budget when they raised business taxes by 500% - many of them just packed up and left. Now the Graham Liberals feel bad however, and they want to give some of that back, as the Premier has suggested that now they believe in lower taxes and as much as $100 million could be returned to us. That's great, except that the original tax hike was more than $135 million, and when you add in the new fee increases worth more than $15 million for driver licenses and marriage certificates, we still seem to be paying more than we were before.

This is a great example of the Shawn Graham "re-back-tracking" on an issue. Because before the election he never talked about raising taxes. Then right after the election they paid someone to do a study that said we could have a major million dollar deficit and that they had to raise taxes to fix the deficit. Only, when the final results came in there was no deficit but a major surplus of more than $200 million. But then they said they were going to keep the taxes high so they can pay for more government services (and pay people more salaries and bonuses). Recently Shawn Graham announced that NB is actually (for real) running a $300 million deficit and worse news ... it's going to be even bigger next year. But now that the deficit is real he also feels it is the right time to lower taxes, and spend an extra billion dollars on capital projects that only provide temporary jobs, which will make the deficit bigger and leave more money for our kids to pay off.

So to summarize: If you have a fake deficit you have to raise taxes. If you have a real surplus - you keep the extra tax money anyway. But if you have a real deficit then that's the time to cut taxes and increase spending. John Maynard Keynes must be rolling in his grave.

To give the government some credit – even a stopped clock is right twice a day - they did decrease the tax on gasoline by a few cents per litre after they got elected. The fact that research done by the Moncton Times & Transcript shows we still seem to be paying the same prices as people in Nova Scotia, despite our lower taxes, probably only means that the oil companies are now using our tax breaks to collect extra profits. But hey, oil companies are people too.

Worst government ever? - You be the judge.

Wednesday, March 4, 2009

Worst Government Ever? – Part Two

The Economy

This is part two of three parts, outlining how the Graham government is in the running (the lead?) to become the worst government in New Brunswick history. A big feat, but definitely attainable if the current direction does not change.

How about supporting New Brunswick businesses and industries like forestry - maybe they are having more success in that department? Try this on for size: within six months of being elected they raised business taxes by 500% and chopped spending on silviculture. Probably it's not a coincidence that within six months after that first budget four major international forestry companies closed their operations in New Brunswick pretty much devastating small communities like Bathurst and Miramichi. And after years of operation our textile mills have recently closed up shop throwing hundreds more out of work.

However, not all is gloomy on the business front. Shortly after the election a prominent Liberal was given a grant to start up a houseboat business. And if you just happened to be the Liberal campaign manager, then your marketing and communications business has received lots of new government contracts. Suppose you're a former Liberal cabinet minister who's into lobbying: you probably spent two years raking in the cash and now you have a top government job in charge of "strategic priorities". Likewise if you own a failed golf course in Moncton with a board of directors stacked with card-carrying Liberals then don't worry, the government will bail you out. And, let's say you own a bar business in partnership with your son the Liberal MLA, and you take the government to court for charging you too much taxes and you win - that could be worth a cool million dollars too.

Of course, the economy is driven by energy and this may well be the saving grace for the Graham Liberals, as a number of private sector companies (who thankfully don't need this government's help) are poised to deliver on some mega-projects such as a new LNG plant and an oil refinery. On the other hand, the energy projects that the Premier and his ministers do have some say over, those being managed through NB Power, have not been as successful. So far the refurbishment at Point Lepreau nuclear is months late and only $100 million over budget. And as for "Lepreau II", well AECL doesn't even have the reactor design approved yet - so don't hold your breath on that one. Did we mention the one New Brunswick company that had a contract to work on the Lepreau refurbishment recently filed for bankruptcy? So much for local benefits.

Worst government ever? - You be the judge.

Thursday, February 26, 2009

Worst Government Ever? Part One

Part One, Liberal Policy

Speculation and serious talk is starting to grow across the province of New Brunswick - are the Shawn Graham Liberals the worst government - ever?

Now the term "worst government ever" is relative, since it's not easy for anyone except a hard core historian to judge whether the current gang has made more mistakes and bungles than any other government in the past 200 years. But even looking at the last 50 years it's hard to imagine a new government getting off to a worse start and back-tracking on more commitments. And even "re-back-tracking" on some of them.

They're not responsible for a global economic meltdown (as far as we know) but just look at all the different sectors and departments the provincial government is responsible for overseeing and there is already a clear pattern of total incompetence.

The biggest department in our provincial government is health. It accounts for more than 40% of the provincial budget. And it's a mess. The Liberal decision to amalgamate all the health boards into two - one English and one bilingual, was the equivalent of waving a big red flag in front of an angry bull. Louis J. Robichaud created equal opportunity, Hatfield perfected it, McKenna entrenched it in the Canadian Constitution, and Lord re-wrote the Official Languages Act without a single murmur of protest. In two years the Graham Liberals have provoked a constitutional challenge that will split English and French communities in this province for the next decade. Over what? The number of hospital boards - smooth move.

The health reforms introduced by Mike Murphy and Shawn Graham have so far produced the following results (in addition to the language wars): a hospital was re-opened in Perth-Andover as a campaign promise and now doesn't have the staff to treat scrapes and scratches; a new crown corporation bureaucracy was created in Saint John in order to "create efficiencies" with no new efficiencies yet created; a consultation board was created in Moncton that so far has consulted nobody; and a hospital board was located in Miramichi where even the CEO they appointed refuses to work. And the new medical school in Saint John is already two years behind schedule. Guess what? The Graham Liberals have only been around for two years.

Education is the next biggest department that is run by the provincial government - how are things going there? Does anyone remember the French immersion fiasco of last summer when Minister Lamrock decided he knew a lot more than his own experts and decided to undo 40 years of programming because he wasn't satisfied with the results. The end of that disaster was that instead of starting French Immersion in Grade 1, now kids start in Grade 3 - wow what an improvement.

Bernard Lord started an ambitious program to give laptop computers to all students in grades 7 and 8 - a program modeled after a very successful program in Maine. It started with a pilot program in six schools and was going to spread across the province before the Liberals were elected. Last month Education Minister Lamrock announced an exciting partnership with Microsoft which is going to be piloted in just two schools - maybe they should call it the incredible shrinking pilot program. And is it just a coincidence that one of these pilot schools is in his Liberal riding and the other in the Liberal riding of the Minister of Post-secondary education?

Speaking of post-secondary education - the Premier was hell bent to reform how the province controls universities and colleges, and he proudly created a special commission to study the issue. And they did. Their recommendations had people around the province out in the streets in protest to the crazy convoluted new system they were proposing. Shortly after Premier Graham asked the university and college presidents to write their own report - which they gladly did. So far not a single recommendation has been implemented.

Social programming is another big responsibility of the provincial government - and this was an early commitment of the Graham Government to tackle the relationship with non-profit organizations. He even hired Claudette Bradshaw - a well known Liberal who travelled on the campaign bus as Shawn's French tutor, but also a person who is highly regarded across Canada as an expert in poverty and NPO issues. She was paid over $100,000 to produce a report that was so excellent that this year the Liberals have started a whole new consultation process. Again, no recommendations have been implemented.

No one will ever forget the fate of Paul Durelle from Kent County, who froze to death after being cut-off from NB Power electricity to heat his home. Before they got elected the Liberals said they were going to do a lot of things to make home heating more affordable and to force NB Power to not cut off their clients. Did Mr. Durelle ask the Premier for assistance - we apparently will never know because the Premier's Office does not seem to have any records of the calls that his family say he made there. Of course, 55,000 people did make use of the $100 in winter heating assistance the Liberals provided their first year in office - but that program must have been a victim of its own success because this year they cut it by 90% and asked the Salvation Army to do the work for them.

Worst government ever? - You be the judge.

Tuesday, February 24, 2009

Election Fever

There seems to be a growing mood in the capital that the Graham Liberals are considering an early election, to avoid going to the polls in the fall of 2010, when the economy could be feeling very recession-like. Some are predicting as early as this May.


Here are the reasons Graham should go to the people:

1. The feeling is Alward does not have his organization in place, and would be caught flat-footed. Probably correct, but could change quickly.
2. The Tories are effectively broke, the Liberals have cash.
3. Some members in the liberal caucus have evidently indicated they are not interested in re-election. Namely, Eugene McGinley, Roly McIntyre, Stuart Jamieson and TJ Burke. A series of by-election losses could cause the liberal advantage in the house to shrink.
4. The Liberals could very well win Madawaska-la-Vallee, providing some momentum.
5. The budget deficit is spiralling out of control. Once the electorate gets a feeling that there is something like a spending plan being designed but nothing like a repayment plan being considered, they will be furious.


Here are the reasons why Graham will not go early:

1. The public is election-weary, federal elections in 04 / 06 / 08 and provincially in 03 / 06. For the (wo)man on the street, this is seen as too many elections. Throw in the recent municipal elections, and people are downright sick of campaigns. At least those that vote.
2. The election is scheduled to happen in September 2010. Going early could look like opportunism, which it is. Almost worked for Harper, but does Graham want to be compared to Harper?
3. The Liberals raised taxes and the deficit (before the economy softened, I might add), and are too short of time to reverse those terrible decisions with typical Liberal here-is-some-of-your-money-back-aren’t-I-a-great-person crap.
4. The Auditor General has recently stated the obvious, we are going to run enormous deficits. Big numbers scare people, and half to three quarters of a billion dollars (the possible deficit in the next fiscal year) is a big number.
5. Power is better than no power, and he can hang on for another year at least and hope things get better.


Summary:

If Graham rolls the dice and Alward runs on the mantra of Tories lowered your taxes and reduced the debt, Graham could be in trouble. But Alward needs to move quickly and decisively.

And Mr. Premier, Happy Birthday