Government Relations Committee Budget Consultation

The CPA Newfoundland and Labrador Government Relations Committee recently met with the Honorable Siobhan Coady, Deputy Premier and Minister of Finance, Government of Newfoundland and Labrador.  A summary of the information outlined during the session is provided below.


KEY HIGHLIGHTS PRESENTED BY THE MINISTER OF FINANCE

  • Improvements in the province's deficit and expenses as a percentage of GDP
  • Reduction in net debt as a percentage of GDP while acknowledging that net debt is rising
  • Emphasized the need to return to a budget surplus while addressing community needs in healthcare and education
  • The proposed MOU with Hydro Quebec will provide a significant increase in the price to Hydro Quebec
  • Future hydro development will have positive implications for businesses in Newfoundland and Labrador
  • Recent implementation of a new government accountability framework will enhance transparency and success measurement

 

SIGNIFICANT MATTERS PRESENTED BY THE CPANL MEMBERSHIP


 Enhance Transparency in Financial Reporting and Decision Making

  • Share government’s established financial performance metrics, including compliance tracking thereto, linked to intended outcomes and targets
  • Ensure clear demonstration of economic value created from significant decisions related to spending, subsidies, and business model changes for public entities

 


 Focus on Expense and Deficit Reduction

  • Maintain a clear focus on returning to surplus
  • Concentrated emphasis on decreasing debt and related servicing costs to ensure the province's revenues can be focused on the needs of citizens of the province rather than debt maintenance


 Explore Revenue Opportunities

  • Continue to focus on economic diversification
  • Retain skilled workers and encourage population development
  • Consider the implementation of an energy tax related to any extraordinary profit in the sector


 Implement Competitive Tax Measures

  • Increase competitiveness in provincial tax programs 
  • Address high personal tax rates
  • Ensure that intended integration related to dividend income aligns with other provinces



 

 

 OTHER FUNDAMENTAL ISSUES PRESENTED

  1. Healthcare – significant and growing needs in the community related to health care
  2. Housing – acknowledgement of larger policy issues and significant challenges
  3. Affordable Power – recognition of the importance of affordable power for community well being
  4. Aging Population – consideration of the impact of aging demographics on health and social services

WRAP-UP AND NEXT STEPS
We sincerely thank Minister Coady and her team for their time and valuable discussion and look forward to increased collaboration as we move through this budget process and the upcoming fiscal year.  We noted that a mid-year check-in, and a walkthrough of the government’s new accountability model would be helpful, and beneficial to our membership.