As expected, the budget debate was a major focus of Question Period and dominated activity in the legislature this past week.
As was the case a week earlier, things got heated.
NDP Finance critic Trent Wotherspoon put Premier Brad Wall on the hot seat over the rainy day fund during Question Period Monday. The following are some highlights from that debate as recorded in Hansard.
Wotherspoon: —Thank you, Mr. Speaker. A simple question for the government: could the minister of finance or the premier tell the people of Saskatchewan how much money was in the Growth and Financial Security Fund, the rainy day fund in 2009?
Instead of a direct answer, Premier Wall pointed to the province’s AAA credit rating and an announcement made by Moody’s Investor Services about the budget.
Wall: — … Here’s what they have to say about the budget: “Despite a significant shortfall in oil royalty revenues Saskatchewan’s sound fiscal practices [and that would include how we manage funds like the Fiscal Stabilization Fund] combined with increasing potash royalty revenues support the province’s balanced budget 2015-16 . . . Saskatchewan and British Columbia stand out from the other Canadian provinces that will likely post deficits in 2015-16.
And we achieved this without any tax increases. Compare that to what members opposite did when they were in government and ran into some challenges in the budget. They increased people’s taxes. They shut down infrastructure spending. And we certainly never had a credit rating of AAA from anyone in the world, Mr. Speaker.
Wotherspoon was not impressed.
Wotherspoon: — Mr. Speaker, pretty simple question there to the premier, and it’s more than disappointing and passing strange that the premier wouldn’t know the answer to a question like that, Mr. Speaker.
The answer? There was more than $1.4 billion in that account in 2009. And despite a booming economy and record revenues through that period of time, this government just kept drawing down those revenues, those savings, Mr. Speaker, during good times . . . [inaudible interjection] . . . May be saved by the finance minister here today, Mr. Speaker.
So another simple question to the premier, maybe the finance minister is ready for this one: could he tell the people of Saskatchewan how much will be left in the rainy day fund, that had $1.4 billion in it in 2009, by the end of this year?
The Speaker: — I recognize the premier.
Wall: — Mr. Speaker, the deputy leader and I would guess his seatmate, the leader of the party, are again asking the question in general terms, where did the money go?
He’s referencing about the Fiscal Stabilization Fund. He’s referencing about prosperity in the province. So let’s review again . . . [inaudible interjection] . . . Oh, they don’t want the answer. They don’t want the answer, Mr. Speaker.
The answer is $3 billion in debt repayment. The answer is hundreds of millions of dollars in tax relief. The money went back into families’ pockets. The answer, Mr. Speaker, is taking the last seven long years of the NDP’s government infrastructure investment of three billion and doubling it to $6 billion. The answer, Mr. Speaker, is a new hospital in Moose Jaw. The answer will be a brand new hospital, the Sask Hospital, in North Battleford. Bypasses and bridges, Mr. Speaker. The answer is investments that have created one of the, if not the, leading economy in the country, Mr. Speaker. The answer is a set of books and a budget so good that three days after the budget, Moody’s in New York has more to say than the NDP. They call it a balanced budget and sound fiscal planning. That’s what they . . . [inaudible].
Once again, Wotherspoon was not impressed.
Wotherspoon: — Mr. Speaker, two questions, no answers, but certainly an agitated premier here today, Mr. Speaker. And you know, judging by his record I guess we can understand why.
…This government should have saved some money through times of prosperity, but it didn’t save a penny. It’s drained the rainy day fund, and it’s racking up more and more debt. To the premier: with years and years of record prosperity, how can he simply justify that?
It was at this point that the Finance Minister Ken Krawetz stood up to respond, as the exchange took a turn for the worse.
Krawetz: — Thank you very much, Mr. Speaker. Mr. Speaker, I understand that the member opposite wants to know what was contained in the then referred to as the Fiscal Stabilization Fund under the NDP . . . [inaudible interjection] . . . I note, Mr. Speaker, the member from Athabasca doesn’t want to really hear this number because he’s provided numbers in this assembly that he just makes up, Mr. Speaker. He just makes them up. Whatever comes out of his mouth is just something that he wants to talk about, Mr. Speaker.
Well the reality, Mr. Speaker, the reality is in 2006-07, Mr. Speaker, the last year of the NDP, the balance in the fund is $887.5 million. That’s reality.
Wotherspoon’s response was also testy.
Wotherspoon: — Speaking of Moody’s, Mr. Speaker: agitated, bellowing, hollering, very few answers from that government, Mr. Speaker. And there’s no doubt, I know we heard a laundry list from the premier, there’s no doubt this Sask. Party spent a lot of money. After all, it’s had record revenues in and they’ve spent every last dollar and more as they’ve arrived. It’s also somehow managed to drain the rainy day fund and rack up more and more debt.
It was shortly after this that NDP House leader Warren McCall rose on a point of order over Krawetz’s comment of “he just makes them up,” a statement reminiscent of the heated debate the previous Thursday when Premier Wall accused Opposition leader Cam Broten of “mak(ing) stuff up,” a comment the premier later withdrew and apologized for.
As the Premier had done the week before, Krawetz also withdrew his comments and apologized.
In the legislature Tuesday, Battlefords MLA and government whip Herb Cox had brief remarks on the budget concerning a particular aspect of it — the maintaining of revenue sharing to municipalities. These are Cox’s remarks, as recorded in Hansard.
Mr. Speaker, although the members opposite haven’t taken time out of their days to understand the provincial budget that the finance minister announced last Wednesday, that doesn’t mean the citizens of Saskatchewan haven’t noticed.
The 2015-16 provincial budget is helping to keep Saskatchewan municipalities strong by providing a record $265.3 million in revenue sharing. That’s up $8.3 million or 3.2 per cent from the 2014-15 budget, Mr. Speaker, and up $138 million or 108 per cent from ’07-08 budget.
Mr. Speaker, Ian Hamilton, the mayor of North Battleford, was pleased and pleasantly surprised. He told reporters, and I quote, “My initial thoughts are very positive.” He went on to say, “I am pleased to recognize that the provincial government has maintained the revenue sharing of the municipal operating grant at one per cent of provincial sales taxes.”
Mr. Speaker, maintaining revenue sharing of the municipal operating grant allows communities like North Battleford to invest in their citizens to meet the demands of growth. Previous NDP [New Democratic Party] governments never offered this opportunity to our communities. By maintaining municipal revenue sharing, communities across the province can use the unconditional funding for services or infrastructure projects to meet the demands of a growing community.
Mr. Speaker, our government is responding to the needs of a strong and growing Saskatchewan, and leaders across the province, like Mayor Ian Hamilton, recognize this.
