News Release Archive
FINANCE--MAJORITY SUPPORTS SPENDING CONTROL ----------------------------------------------------------------- An overwhelming majority of Nova Scotians see the province's $8.7 billion debt as a threat to their economic future, and support the government's efforts to balance the books and keep spending under control. The results of the government's consultation on the future direction of the province's finances are in, and it's clear most Nova Scotians want the government to keep a firm hold on the public purse. In February Finance Minister Bernie Boudreau released a white paper called Shaping the Future, which laid out a plan to ensure the province's long term fiscal security. The paper advocated principles and proposed actions the minister said would achieve three essential goals. "First, we proposed legislation that goes as far as the law can to ensure no government ever takes Nova Scotia to the brink of financial ruin again. Second, now that we have achieved a measure of fiscal stability, we believe public programs and services can be expanded, but it must be done responsibly, without borrowing to pay for them. And third, we said the government must strive to begin paying down the debt, so we can start to recover some of the $1 billion a year it costs to service the debt." Mr. Boudreau said the consultation results show Nova Scotians support those goals and the government's efforts to achieve them. The consultation itself took several forms. The minister travelled the province to speak to Nova Scotians and get direct feedback. The white paper included a survey that was completed and returned by more than 5,000 people. And, the government commissioned public opinion research in which Nova Scotians were polled on the issues raised in the white paper. Among the findings: - More than 90 per cent of Nova Scotians view the provincial debt as a serious problem and a threat to Nova Scotia's economic future. - Fifty-three per cent believe social programs are most threatened when governments fail to balance the books, while 36 per cent believe spending cuts pose the more serious threat. - About 70 per cent of Nova Scotians favor a law to limit government borrowing and to require balanced budgets. Almost half want surplus funds used to pay down the debt, with the remainder split between favoring tax reductions or more spending on programs. - A majority believes government can tighten its belt some more, before programs and services are negatively impacted, although most say only moderate or minor cuts are possible. - Most Nova Scotians would support more private sector involvement in many of the services traditionally provided by government, but the level of support varies widely depending on the service. Mr. Boudreau said the public opinion research, conducted by Corporate Research Associates using scientific polling methods and representative sampling, confirmed the results of the government's less controlled approach. Among the government survey results, Department of Finance analysts identified 1,700 responses as clearly part of an organized effort. Another 266 came from the Metropolitan Chamber of Commerce, leaving 3,300 that came from the "general" population. The government fully expected some form of organized response to its survey, the minister said. The fact that 1,700 responses to the government survey were part of an organized response "in no way diminishes the validity of the opinions those people expressed." "The organized response tells us there is a significant interest group that is very anxious about any move by government to involve the private sector in public services. The same group universally opposes the sale of any public assets in order to pay down debt. Obviously, before we take any concrete action in that direction, we need to talk to Nova Scotians some more and particularly, we need to talk to government employees and their unions," he said. -30- NOTE TO EDITORS: The report on the consultation process associated with Shaping the Future is available to the media today at Communications Nova Scotia, Media Services, 1700 Granville Street, One Government Place, 902-424-5200 or 1-800-670-4357. The report will be publicly available at the Nova Scotia Government Bookstore, 1700 Granville Street, One Government Place, beginning tomorrow (Tuesday), 902-424-7580 or 1-800-526-6575. Contact: Jim Vibert 902-424-4886 trp Apr. 22, 1996 - 2:00 p.m.