“Show me the money”
the old man in the hat
The government of New Brunswick has recently announced an ambitious new social program, the “New Brunswick Drug Program”, aimed at those individuals who do not have a private drug plan. Originally envisioned as a “Catastrophic Drug” coverage for those with high drug cost conditions, the plan is now meant to cover all uninsured persons in the province. The scheme involves a graduated premium structure with a top rate of $2000.00 per person per year and mandatory participation.
This drug plan is undoubtedly needed. There is only one fly in the ointment. The Province has no money to pay for it. Even with participant premiums, the income collected will fall far short of program expenditures.
I know that this was an election “promise” and that this year is an election “year”, the unpleasant fact remains, we cannot pay our current bills. We cannot take care of our roads and health care is rapidly devolving into pre 1960’s availability. Money is only available for showpiece infrastructure in the glittering cities (200 million for the DECH- 200 million!!!). We are running a current account deficit (ie the money that pays the weekly groceries) that currently exceeds 360 million dollars. We have to borrow the money to buy the groceries! This is not good. It is also not sustainable.
We are currently living in a peculiar time when, since the economic crisis of 2008, interest rates have been at an artificially created low. This situation has saved the Province gobs of money in interest payments on the debt. Even so, the daily spending goes deeper into the red. Not good.
What to do? Ideally, spend less. This is tricky. I do not think that we have ever had a government equivalent way of a personal household budget accountability. You can look at your monthly expenses and cut: round steak vs t-bone, baloney vs ham, rabbit ears vs 500 satellite channels. Have we ever figured out what is essential in government?
Government is spending less or at least spending less in Victoria County. Just look at our winter roads. Just look at our heath care. Look where ever you want, and there is less evidence of government, but are these the right cuts?
I guess my point is, did we cut the t-bone or the baloney? Maybe, just maybe, we need to look at the revenue side. I know that no one wants to pay more taxes, but like the spending side, is the level of taxation appropriate for our province? Where is that intellectual discussion about the proper balance?
It is indeed election time. What party has the presence of mind to say the buck stops here. We are going to cut 400 million from spending and raise taxes 300 million. This is where we cut. This is where we spend. Judge us.
Buying our votes with borrowed money is not just stupid it is scandalous!
