Public Services Sustainability Act, Op-ed
NOTE: The following is an op-ed from Finance and Treasury Board Minister Randy Delorey.
Earlier this week, I introduced Bill 148 -- An Act Respecting the Sustainability of Public Services, the Public Services Sustainability (2015) Act. I did this after significant thought and consideration. I knew some would question our timing; others would question our intent; and others would even question the necessity for the legislation.
The intent of this legislation is simple but important -- to ensure we can continue to invest in the things that truly matter to Nova Scotians. This will give government flexibility to partner with the federal government on essential new infrastructure, the ability to build roads and a new hospital, and the capacity to continue to invest in our classrooms. Most importantly, it will position Nova Scotia for long-term economic growth.
From a timing perspective, we needed to move forward with this legislation to protect the province's fiscal plan. The threat of arbitration is real and it is significant. Unelected, unaccountable arbitrators do not have to consider taxpayers' ability to pay. In recent years, arbitration decisions have cost taxpayers millions of dollars.
Ultimately, our backs are against the wall when it comes to our financial situation. This is not unique to Nova Scotia. Across the country, governments are grappling with economic difficulties. As clearly laid out in our most recent financial update, our province is vulnerable to shifts in revenue. In areas where we have control, we are seeing some success. Our expenses are largely on budget, but our revenues are weak. We need certainty on all of our expenses -- of which labour accounts for 52 per cent.
There are many, many competing needs and limited funds available, and we will not ask Nova Scotians to pay any more through higher taxes.
The Public Service Sustainability Act, which passed in the House of Assembly today, Dec. 18, is one step on a difficult path to fiscal sustainability.
It provides public sector employees with the same fair, affordable wage packages some unions agreed to in the collective bargaining process. The compensation framework provides public service employees with $150 million in wage increases. This is on top of the annual increases -- called steps or increments -- that newer, lower paid employees will continue to receive. We believe the wage framework is fair for employees and affordable for taxpayers.
Other matters like working conditions remain negotiable in collective bargaining, and I sincerely encourage union leaders and employers to return to the bargaining table.
Government would prefer to settle all our labour contracts without proclaiming this legislation. But we will proclaim it should it become evident that negotiations or arbitration are putting the fiscal plan at risk.
We need to make tough decisions to prepare Nova Scotia for long-term progress. I am grateful to the many Nova Scotians who have played their part.